1、Six Sigma Champion Training,1,Six Sigma Fundamentals,Champion Training,Six Sigma Champion Training,2,The Six Sigma Breakthrough Strategy has become a Competitive Tool,A little bit of history ,Six Sigma was developed by Bill Smith, QM at Motorola Its implementation began at Motorola in 1987 It allowe
2、d Motorola to win the first Baldrige Award in 1988 Several of the major companies in the world have adopted Six Sigma since then Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Moto
3、r,.,Six Sigma Champion Training,3,Frequently asked questions ,What is Six Sigma and how does it impact the bottom line? Where and how does Six Sigma fit into my business process? What kinds of gains can I expect to see if I adopt Six Sigma? How long does it take to see financial benefits from Six Si
4、gma? What resources are required to implement Six Sigma? What kind of infrastructure is required to support Six Sigma? What are my first few steps to get Six Sigma going?,Six Sigma Champion Training,4,What is Six Sigma,Vision - Develop and produce products & services to Six Sigma Levels Strategy - U
5、se a data driven structured process to drive out defects and improve the Sigma Level of products and services (Breakthrough Strategy),Six Sigma Champion Training,5,What does doing Six Sigma look like?,Project defined in Business Terms Cross Functional Team Involvement Measure/ Analyze/ Improve/ Cont
6、rolProblem Strategy used Qualitative Tools used Statistical Tools used Sustained Business Results Achieved,Six Sigma Champion Training,6,Know what is Important to the Customerand to the Business Reduce Defect Levels by:1. Reducing the Variation2. Centering around the Target,Six Sigma Improvement Str
7、ategy,Six Sigma Champion Training,7,Insufficient Process Capability- Scrap- Rework- Warranty- Excess Inventory,Unstable Parts & Materials- Shortages- Defectives- Excess Inventory,Inadequate Design Specifications- Manufacturing Processes- Supplier Processes- Assembly Processes,Principle Causes of Var
8、iation,Six Sigma Champion Training,8,You cannot refine a system unless the Defects are removed first,The Breakthrough Strategy is the Core of Six Sigma,Causes an organization to shift focus to: Eliminate Defects (Cost & Yield) Eliminate Opportunities/ Non Value Added Steps Reduce Complexity Breakthr
9、ough Thinking,Six Sigma Champion Training,9,Lower Spec Limit,Upper Spec Limit,Nominal Target,Defects,Process Mean,Process variation is represented by ,Origin of Sigma,Six Sigma Champion Training,10,The Classical View of Performance,Practical Meaning of “99% Good”,3 s Capability,Historical Standard,L
10、ong Term Yield 93.32%,4 s Capability,Current Standard,Long Term Yield 99.38%,6 s Capability,Long Term Yield 99.99966%,New Standard,20,000 lost articles of mail per hourUnsafe drinking water almost 15 minutes each day5,000 incorrect surgical operations per week2 short or long landings at major airpor
11、ts each day200,000 wrong drug prescriptions each yearNo electricity for almost 7 hours each month,Six Sigma Champion Training,11,Sigma is astatistical unit formeasuring quality. It is correlated to the defect rate andthe complexity ofthe process / product,Six Sigma is a Standard of Excellence. It me
12、ans no more than 3.4 Defects per Million Opportunities,Sigma as a Measure of Quality,Six Sigma Champion Training,12,The long-term distribution is larger than the short-term as a result of dynamic variations in the process mean over time,Process Centering and Capability,Six Sigma Champion Training,13
13、,3 Sigma Process No Mean ShiftCp=Pp= 1.0Cpk=Ppk= 1.0PPM= 2,750,3 Sigma Process Mean Shift of 1.5 SigmaCp=Pp= 1.0Cpk=Ppk= 0.5PPM= 66,365,Six Sigma Champion Training,14,Six Sigma Process No Mean ShiftCp=Pp= 2.0Cpk=Ppk= 2.0PPM= 0.0,Six Sigma Process Mean Shift of 1.5 SigmaCp=Pp= 2.0Cpk=Ppk= 1.5PPM= 4.0
14、,Six Sigma Champion Training,15,1.5 Sigma Shift,Deeper Insight Into Shifts and Drifts,Six Sigma Champion Training,16,13,Short Term,- 1.5,s,Long Term,Short Term,s,No Action,No Action,TO,FROM,+ 1.5,Long Term,Six Sigma Conversion Table,Six Sigma Champion Training,17,Benchmarking Chart,Six Sigma Champio
15、n Training,18,Past success has bred arroganceDependence on inspection and reworkReliance on trial and errorReward fire fighting behaviorLittle focus on quality measurementsFunctional departments inhibit cooperation,Most Companies,Why most Companies are 3-4 Sigma,Six Sigma Champion Training,19,Confid
16、ence in the opportunityBelief in the 6 Sigma methodologyAbility to challenge the Status QuoUse of new skills, tools and informationUse of new management behaviors,Most Companies,What is needed to reach 6 Sigma,Six Sigma Champion Training,20,B A S I CT O O L SW A L L,Design for Six SigmaEngineeringBl
17、ack Belts,Overcoming the Barriers,Six Sigma Champion Training,21,Higher Quality, On Time Delivery& Lower Cost Increases Customer Satisfaction,Reduce the Cycle Time per unitReduce WIP inventory carrying costsReduce Delivered DefectsReduce early Failure RatesReduce Repair Cost per unit,We need a Focus
18、 on Total Defects Per Unit,Six Sigma Champion Training,22,Is Final Yield Correlated to Profit Margin?,The Classical Perspective of Yield,Six Sigma Champion Training,23,Is the Final Test Failure Rate Correlated to Profit Margin?,Questioning the Basic Belief,Six Sigma Champion Training,24,Is the Final
19、 Test Failure Rate Correlated to Scrap Rate?,Questioning the Basic Belief,Six Sigma Champion Training,25,What Does this Imply?,Final Test Yield is Correlated to Process Capability,Six Sigma Champion Training,26,Verify,90 Units Passed Final Test YFT = 90%,Operation,Not OK,Rework,Scrap,DPU = 1.0,100 U
20、nits Start,37 Units d = 0,63 Units d 1,10 Units Scraped,53 Units Repaired,Defect Type CountA 25B 15C 5D 20E 35Total 100,YTP = 37% Throughput Yield Units with Zero Defects,Process Capability = 37% not 90%,Unlocking the Hidden Factory,Six Sigma Champion Training,27,The Idea of Rolled Throughput Yield
21、RTY or YRT,Input,Step 1 YTP1,Step 2 YTP2,Step 3 YTP3,Step K YTPK,Output,YRT = Probability of a Unit going through all Process Steps with zero defects,YRT = YTP1 x YTP2 x YTP3 x . YTPK,If TDPU = .25, then YRT = e-0.25 = 77.9%,Six Sigma Champion Training,28,This process has a 5% scrap rate at Inspecti
22、on BUT, the Process RTY is only 61.6%. Where did the other 38.4% of yield go? Rework, waste, setup, etc. are the HIDDEN FACTORY.,RTY Calculation,Six Sigma Champion Training,29,Rolled Throughput Yield is Correlated to Profit Margin,Six Sigma Champion Training,30,Industry average is 20% COPQ & 4 Sigma
23、 Company,Sigma is Correlated to Cost of Poor Quality,Six Sigma Champion Training,31,Internal CostsScrapRework/RepairDowntimeRedesignExcess InspectionExcess Inventory,External CostsWarrantyRetrofitsService CallsRecallsLost SalesLong Cycle Times,What is the Cost of Poor Quality,Six Sigma Champion Trai
24、ning,32,People(Indirect Labor)ReworkInspectionMaterial HandlingMaintenanceSetupExcess OvertimeLabor Variance off standard,InventoryRaw Material Holding CostWIP Holding CostFinished Goods Holding CostsObsolescenceInventory Shrinkage,MaintenanceMaintenanceRepairsRearrangement,DefectsScrap ReworkDefect
25、sWarranty & RecallsReturned Goods Handling,Premium FreightAir FreightExpedited Truck Freight,Components of Cost of Poor Quality,Six Sigma Champion Training,33,Six Sigma has shown that the Highest Quality Producer is also the Lowest Cost Producer,Cost of Poor Quality (COPQ) Correlation,Process Contro
26、l is pre-requisite for error free Quality COPQ is a result of a poorly controlled process Process Control can be measured in PPM/Yield PPM/Yield measurements are correlated to COPQ,Six Sigma Champion Training,34,COPQ Sigma PPM 30-40% of Sales 2.0 308,537 Non Competitive 20-30% of Sales 3.0 66,807 15
27、-20% of Sales 4.0 6,210 Industry Average 10-15% of Sales 5.0 233 10% of Sales 6.0 3.4 World Class,Cost of Poor Quality (COPQ) Relationship Industry Averages,Six Sigma Champion Training,35,COPQ Sigma Yield 30-40% of Sales 2.0 5% Non Competitive 20-30% of Sales 3.0 93% 15-20% of Sales 4.0 99.4% Indust
28、ry Average 10-15% of Sales 5.0 99.976% 10% of Sales 6.0 99.999655% World Class,COPQ & Sigma/Yield Relationship Industry Averages,Six Sigma Champion Training,36,What are your Business Metrics ?Do your Business Metrics link to your Customers Metrics?What improvement goals are establishedfor your Busin
29、ess Metrics?,PPM - Parts per MillionDPU - Defects per UnitRTY - Rolled Throughput YieldCycle TimeSigma LevelCOPQ - Cost of Poor QualityCapacityInventory Cost,Business Metrics,Six Sigma Champion Training,37,The Role of Leadership on Metrics,Six Sigma Champion Training,38,Strategic/Business,Technical/
30、Process,Six Sigma Activities,QOS,Level of Metrics,Six Sigma Champion Training,39,Strategic 1. Performance against CTQ standards2. Cost of Poor Quality Performance3. Overall Sigma Level,Process Quality 1.Process/ Part Sigma Levels2. PPM, DPU, DPMO, RTY, COPQ Monthly Improvement Rates3. Cycle Time & I
31、nventory Level,Six Sigma 1. Project Savings $s (Total & per BB)2. Number/ Status of Projects3. Number of MBBs, BBs & GBs Certif4. MBB & BB Turn Over Ratio5. Final Reports Completed,Ideas for Performance Measures,Six Sigma Champion Training,40,QUALITY SUMMARY (All Products),PROBLEM IDENTIFICATION / D
32、EFINITION,ROOT CAUSES / SOLUTIONS,IMPROVEMENT ACTIONS,Metric Scoreboard,Six Sigma Champion Training,41,Metric Goals Example - Results Tool,Six Sigma Champion Training,42,Metric Goals Example - Results Tool,Six Sigma Champion Training,43,Six Sigma as a Philosophy - PART I Customer/Supplier,We are in
33、business to make money We make money by satisfying needs We are able to satisfy needs by using our processes The aim of customer focus is to improve the need/do interactions of our processes Improvement of our business means improvement of our processes Customers need products/services on-time, with
34、 zero defects, at the lowest cost,Six Sigma Champion Training,44,Six Sigma as a Philosophy - PART I Customer/Supplier,The attributes of customer satisfaction must be measured if they are to be improved To improve means we must be able to predict and prevent, not detect and react Suppliers create pro
35、cesses to generate needed products As process capability improves, the product quality increases As quality increases, costs and cycle-time go down,Six Sigma Champion Training,45,Six Sigma as a Philosophy - PART 2 Statistics,Maximization of certainty is dependent upon the process capability and stab
36、ility Process capability is best understood and reported using statistics which is dependent on data Data must be collected in the process according to a plan Statistics are used to convert raw data into meaningful summary information Statistical information is used to report on, improve, and contro
37、l the process,Six Sigma Champion Training,46,Six Sigma as a Philosophy - PART 2 Statistics,The basis of statistics is the mean and standard deviation The mean reports on process centering The standard deviation reports the extent of variation or “scatter“ about the mean The “sigma“ of a process tell
38、s us how capable the process is The stability of a process allows us to make valid predictions,Six Sigma Champion Training,47,Six Sigma as a Philosophy - PART 3 Improvement,The process sigma can be used to compare similar or dissimilar processes Such comparison of processes is called benchmarking Be
39、nchmarking is a competitive tool used to uncover what we do well and not so well Once basic competencies and deficiencies are known, corrective action can be taken Corrective action leads to the reduction of defects, cycle-time, and cost,Six Sigma Champion Training,48,Six Sigma as a Philosophy - PAR
40、T 3 Improvement,The reduction of defects, cycle-time, and cost leads to improved customer satisfaction As customer satisfaction improves, the likelihood of doing business increases As business increases, we (as individuals) grow and prosper,Six Sigma Champion Training,49,Highly visible top-down mana
41、gement commitment to the initiatives. People must perceive active leadership versus management-ship during the course of implementation. A measurement system (metrics) to track the progress. This weaves accountability into the initiatives and provides a tangible picture of the organizations efforts.
42、,Question: How can a business unit, regardless of size, product, service, production volume, or product mix, leapfrog its way to the Six Sigma goal in a relatively short period of time? Answer: Experience has shown that successful implementation depends on an interaction between the following princi
43、ples:,The Implementation Principles,Six Sigma Champion Training,50,Internal and external benchmarking of the organizations products, services, and processes. This information inevitably leads to a “significant emotional event“ in that the organization can see and communicate its relative position. W
44、hen this happens, the organization begins to gravitate toward a break-through philosophy. Stretch goal setting (10x, 100x, etc.). Such goals focuses people on changing the process by which the work gets done rather than “tweaking“ the existing process. This leads to “leap-frog“ rates of improvement.
45、 Provision of education to all levels of the organization. Without the necessary mind-tools, people can not make break-through improvement happen.,The Implementation Principles (Cont.),Six Sigma Champion Training,51,Success stories which demonstrate how the tools of improvement can be applied and th
46、e results which can be achieved. Champions, Master Black Belts and Black-Belts to promote the initiatives and provide the necessary planning , teaching, coaching, and consulting at all levels of the organization.,The Implementation Principles (Cont.),Six Sigma Champion Training,52,6s,The Six Sigma S
47、uccess Factors,Visible Top-Down Leadership Business Metrics Common Process Metrics Benchmarking Stretch-Goals Breakthrough Strategy Six Sigma Champions, Master Black Belts & Black Belts Success Stories Empowered High Performance Work Teams Six Sigma Education & Training,Six Sigma Champion Training,5
48、3,Obstacles to Six Sigma Improvement,Working on too many improvements at the same time. No business owner for the problem. Habit of managing through a functional organization. Lack of trained and experienced people. Middle managers fearing uncertainty about future roles. Lack of metrics focused on customer value-adding processes. Lack of integrated information and financial systems. Fragmented, staff driven approaches - “alphabet stew“.,
