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1. Six Sigma Awareness Programme 2. Contents <ul><li>What is Quality </li></ul><ul><li>Why Six Sigma…
  • 1. Six Sigma Awareness Programme
  • 2. Contents <ul><li>What is Quality </li></ul><ul><li>Why Six Sigma </li></ul><ul><li>What is Six Sigma </li></ul><ul><li>Variation, and Six Sigma basics </li></ul><ul><li>The DMAIC cycle </li></ul>
  • 3. Completely satisfying agreed customer requirements at the lowest internal cost. What is quality ? Quality is
  • 4. Customer Focus Meeting customer requirements Achieve complete customer satisfaction Measure level of achievement Customer is the ultimate judge Customer Centric Quality
  • 5. <ul><li>View quality externally </li></ul><ul><ul><li>Customer Perspective </li></ul></ul><ul><li>Meet all customer commitments </li></ul><ul><li>Continuous improvement </li></ul><ul><ul><li>Systematic </li></ul></ul><ul><ul><li>Scientific </li></ul></ul><ul><ul><li>Fact based </li></ul></ul>Attitude & Discipline Quality Culture
  • 6. ISO 9000 Total Quality Management Robust Designs CMM Six Sigma Popular Quality Initiatives
  • 7. What does our customer want from us? On Time Delivery Quality Reliability Competitive Product Six sigma - the most effective tool to drive customer benefits
  • 8. Why Six Sigma ?
  • 9. Why Pursue Six Sigma? <ul><li>Proven </li></ul><ul><ul><li>Motorola (1987) </li></ul></ul><ul><ul><li>Texas Instruments (1988) </li></ul></ul><ul><ul><li>Asea Brown Boveri (1993) </li></ul></ul><ul><ul><li>Allied Signal (1993) </li></ul></ul><ul><ul><li>GE </li></ul></ul><ul><li>Comprehensive </li></ul><ul><ul><li>Philosophy </li></ul></ul><ul><ul><li>Tools </li></ul></ul><ul><ul><li>Business Metrics </li></ul></ul><ul><li>Flexible </li></ul><ul><ul><li>Finance / Information Management </li></ul></ul><ul><ul><li>Manufacturing / Design </li></ul></ul><ul><ul><li>Sales / Service </li></ul></ul><ul><li>Consistent </li></ul>Six Sigma Is A Journey ……. Not A Destination
  • 10. What is Six Sigma ?
  • 11. <ul><li>Sigma is a statistical unit of measure that reflects on the process capability. </li></ul><ul><li>The “sigma value” is a metric which indicates how well a process is performing -- it measures the capability of a process to perform defect-free work. </li></ul><ul><li>The higher the sigma capability, the better. </li></ul><ul><li>Six Sigma means having as less as 3.4 defects when provided with an opportunity to create one million defects. </li></ul><ul><li>Six Sigma is a rigorous, focused and highly effective implementation of proven quality principles and techniques </li></ul>What is 6  ?
  • 12. Six Sigma: Changing Focus from Output to Process Y = f (X) Y Effect Dependent Symptom Output Monitor X 1 …X N Cause Independent Problem Input-Process Control Identifying and fixing root causes will help us obtain the desired output
  • 13. <ul><li>Y </li></ul><ul><li>Dependent </li></ul><ul><li>Output </li></ul><ul><li>Effect </li></ul><ul><li>Symptom </li></ul><ul><li>Monitor </li></ul><ul><li>X 1 . . . X N </li></ul><ul><li>Independent </li></ul><ul><li>Input-Process </li></ul><ul><li>Cause </li></ul><ul><li>Problem </li></ul><ul><li>Control </li></ul>f(X) Y= To get results, should we focus our efforts on the Y or X ? The Focus of Six Sigma
  • 14. From Pockets of controls Spotty use of QI tools Ship & Fix Attitude Ignore cost of poor Qual. Function focused values mind set & practices Guess work in decisions Change the scene To Customer recognized quality at all levels Disciplined and consistent use of proven tools Do it right first time Calculate and communicate to all employees. Process focused values mind set & practices Measure and analyze objective data to help decision making.
  • 15. Eighty-Five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and processes … Rather than the Employee. The role of Management is to change the process rather than badgering individuals to do better. So says Deming To
  • 16. Target X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Every Human Activity Has Variability... Six Sigma Concept Understanding Variability & Customer Specification Is The Essence of Six Sigma Customer Specification defects
  • 17. 6  Key Terms Concept Critical to Quality characteristics (CTQs) Unit Defect Defect Opportunities Definition Customer Performance req. of a product or service. The Item Produced Or Processed Any event that does not meet the specification of CTQ Any event that can be measured that provides a chance of not meeting a customer requirement.
  • 18. DPMO - Defects Per Million Opportunities Order of Magnitude Sigma 3  Spelling 1.5 misspelled words per page in a book Money $2.7 million debt per $1 billion assets Time 3 1/2 months per century DPMO 66,807 4  1 misspelled word per 30 pages in a book $63000 debt per $1 billion assets 2 1/2 days per century 6,210 5  1 misspelled word in the set of encyclopedias $570 debt per $1 billion assets 30 minutes per century 233 6  1 misspelled word in all the books of a small library $2 debt per $1 billion assets 6 seconds per century 3.4
  • 19. 6  Metric BenchMark Vision Philosophy Tool Method Goal Value Symbol
  • 20. Leaders Team coaches Team leaders Team Members All Associates Champions Master Black Belt Black Belt Improvement Team Awareness Skills are differentiated for each audience Skill Levels
  • 21. Design Design for six sigma Improvement DMAIC Management Process management Two Ways About it
  • 22. Define Measure Analyze Improve Control The DMAIC Cycle
  • 23. Define Measure Analyze Improve Control <ul><li>Define The Customers, Their CTQs, The Team Charter </li></ul><ul><li>And The Core Business Process </li></ul><ul><ul><li>Team charter documented reviewed and reviewed with Sponsor </li></ul></ul><ul><ul><li>Customer CTQs derived and documented </li></ul></ul><ul><ul><li>Validate high level process map completed </li></ul></ul>
  • 24. Define Measure Analyze Improve Control <ul><li>Measure the core business process performance </li></ul><ul><ul><li>Identified key measures </li></ul></ul><ul><ul><li>Developed data collection plan </li></ul></ul><ul><ul><li>Executed plan and documented results </li></ul></ul><ul><ul><li>Process variation displayed with various charts </li></ul></ul><ul><ul><li>Calculated baseline sigma performance </li></ul></ul>
  • 25. Define Measure Analyze Improve Control <ul><li>Analyze the data to determine the root causes / opportunities </li></ul><ul><ul><li>Complete detailed process maps for sub-processes </li></ul></ul><ul><ul><li>Identify process streamlining opportunities </li></ul></ul><ul><ul><li>Identify, verify and quantify root causes </li></ul></ul><ul><ul><li>Establish improvement targets </li></ul></ul><ul><ul><li>Quantify opportunity </li></ul></ul>
  • 26. Define Measure Analyze Improve Control <ul><li>Generate, select, design and implement improvements </li></ul><ul><ul><li>solution design developed and documented </li></ul></ul><ul><ul><li>Solution validated and cost benefit proposal presented to management </li></ul></ul><ul><ul><li>Solution tested on a pilot program </li></ul></ul><ul><ul><li>Implementation plan developed and executed. </li></ul></ul>
  • 27. Define Measure Analyze Improve Control <ul><li>Institutionalize the improvement and implement ongoing monitoring </li></ul><ul><ul><li>Developed, documented and implemented ongoing/monitoring plan </li></ul></ul><ul><ul><li>Standardized process </li></ul></ul><ul><ul><li>Procedures documented </li></ul></ul><ul><ul><li>Response plan developed and displayed. </li></ul></ul>
  • 28. Define Measure Analyze Improve Control
  • 29. Define Measure Analyze Improve Control The Define Phase
  • 30. What is A Charter? A Charter is A Document That Provides Purpose And Goals For An Improvement Team
  • 31. Five Major Elements Of A Charter <ul><li>1. Business Case </li></ul><ul><ul><li>Explanation Of Why To Do This Project </li></ul></ul><ul><li>2. Problem And Goal Statements </li></ul><ul><ul><li>Description Of The Problem/Opportunity And Objective in Clear, Concise And Measurable Terms </li></ul></ul><ul><li>3. Project Scope </li></ul><ul><ul><li>Process Dimensions, Available Resources </li></ul></ul><ul><li>4. Milestones </li></ul><ul><ul><li>Key Steps and Dates To Achieve Goal </li></ul></ul><ul><li>5. Roles </li></ul><ul><ul><li>People, Expectations, Responsibilities </li></ul></ul>
  • 32. Problem And Goal Statements The Purpose Of The Problem Statement Is To Describe What Is Wrong The Goal Statement Then Defines The Team’s Improvement Objective
  • 33. <ul><li>What is wrong or not meeting </li></ul><ul><li>our customer needs? </li></ul><ul><li>When and where do </li></ul><ul><li>problems occur? </li></ul><ul><li>How big is the problem? </li></ul><ul><li>What is the impact? </li></ul>Problem Statement
  • 34. <ul><li>Definition of the improvement the team is </li></ul><ul><li>trying to accomplish. </li></ul><ul><li>Start with a verb (Reduce, Eliminate, </li></ul><ul><li>Control, Increase) </li></ul><ul><li>Tends to start broadly - eventually should </li></ul><ul><li>include measurable target and completion date. </li></ul><ul><li>Must not assign blame, Presume cause, or </li></ul><ul><li>prescribe solution. </li></ul>Goal Statement
  • 35. SMART Problem and Goal Statements S pecific M easurable A ttainable R elevant T ime Bound
  • 36. Poor Example Our customers are angry with us and late in paying their bill Better Example In the last 6 months 20% of our repeat customers are late (over 60 days) in paying our invoices. The current rate of late payments is up from 10% and represents 30% of our outstanding. This negatively affects our cash flow.
  • 37. Project Scope <ul><li>What Process Will the Team Focus On? </li></ul><ul><li>What Are The Boundaries Of the Process We Are To Improve? </li></ul><ul><li>Start Point? Stop Point? </li></ul><ul><li>What Resources Are Available To The Team? </li></ul><ul><li>What (If Anything) Is Out Of Bounds For The Team? </li></ul><ul><li>What (If Any) Constraints Must The Team Work Under? </li></ul><ul><li>What Is The Time Commitment Expected Of Team </li></ul><ul><li>Members? </li></ul><ul><li>What Will Happen To Our “Regular Jobs” While We are Doing </li></ul><ul><li>The Project? </li></ul>
  • 38. Roles <ul><li>How Do You Want The Champion To Work With The Team? </li></ul><ul><li>Is The Team’s Role To Implement Or Recommend? </li></ul><ul><li>When Must The Team Go To The Champion For Approval? </li></ul><ul><li>What Authority Does The Team Have To Act Independently? </li></ul><ul><li>What And How Do You Want To Inform The Champion About </li></ul><ul><li>The Team’s Progress? </li></ul><ul><li>What Is The Role Of The Team Leader(Black Belt) And The </li></ul><ul><li>Team Coach (Master Black Belt)? </li></ul><ul><li>Are The Right Members On The Team? Functionally? </li></ul><ul><li>Hierarchically? </li></ul>
  • 39. Milestones <ul><li>A Preliminary, High level Project Plan </li></ul><ul><li>With Dates </li></ul><ul><li>Tied To Phases Of DMAIC Process </li></ul><ul><li>Should Be Aggressive (Don’t Miss </li></ul><ul><li>“ Window Of Opportunity”) </li></ul><ul><li>Should Be Realistic (Don’t Force </li></ul><ul><li>Yourselves Into “Band-Aid” Solution) </li></ul>Los Angeles 50 Miles Long Beach 30 Miles
  • 40. Define Measure Analyze Improve Control
  • 41. Obtaining Information On Customer Needs <ul><li>Focus Groups </li></ul><ul><li>Interviews </li></ul><ul><li>Customer Observation </li></ul><ul><li>Market Research </li></ul><ul><li>Be A Customer </li></ul><ul><li>Customer Complaints </li></ul><ul><li>Surveys (e.g., Walker Surveys) </li></ul>
  • 42. Voice Of The Customer Sample Comments/Data “ I’m Tired Of Having To Write A Check For This Loan Every Two Weeks” “ The Survey Shows 47% Of Customers Rate Our Response Time As ‘ Fair’ Or ‘Poor’ “ Why Don’t You Guys Get Your Act Together?!” “ The Phone Must Have Rung Six Times Before I Got An Answer” “ I’m Not That Satisfied With Your Service” How Do We Take Action On VOC Input?
  • 43. Understanding Customer Needs Gather input on customer needs (Listen to the voice of the Customer) Analyze and translate VOC input into meaningful terms Define requirements for the processes, products or service Process for understanding needs
  • 44. Translating VOC to requirement
  • 45. Definition Of A Process A Process Is A Collection Of Activities That Takes One Or More Kinds Of Input And Creates Output That Is Of Value To The Customer
  • 46. Process Mapping <ul><li>Objectives </li></ul><ul><ul><li>Learn The Definition Of Process Mapping </li></ul></ul><ul><ul><li>Understand Business Processing Mapping And Its </li></ul></ul><ul><ul><li>Application To Completely Satisfying Customer </li></ul></ul><ul><ul><li>Requirements </li></ul></ul><ul><ul><li>Learn The Key Process Elements </li></ul></ul><ul><ul><li>Learn The Importance Of Process Boundaries And Process </li></ul></ul><ul><ul><li>Owners </li></ul></ul><ul><ul><li>Understand The Benefits Of Process Mapping </li></ul></ul><ul><ul><li>Understand The Steps Of Process Mapping </li></ul></ul>
  • 47. Business Process Mapping Requirements Requirements S I P O C Suppliers Inputs Process Outputs Customers Measures Measures Process Map
  • 48. Measurement <ul><li>Objectives </li></ul><ul><ul><li>To Understand That The Focus Of The Measure Step </li></ul></ul><ul><ul><li>Is To Establish The Current Process Defect Level </li></ul></ul><ul><ul><li>To Understand The Definition And Rationale For Measures </li></ul></ul><ul><ul><li>To Understand The Difference Between Input, Process, </li></ul></ul><ul><ul><li>And Output Measures And How Different Measures </li></ul></ul><ul><ul><li>Relate To Each Other </li></ul></ul><ul><ul><li>To Understand Effectiveness vs. Efficiency Measures </li></ul></ul>
  • 49. Input, Process And Output Measures Input Measures Process Measures Output Measures The Key Quality And Delivery Requirements Placed On Your Suppliers Measures That Are Intended To Your Process. They Include Quality and Delivery Measures Important To Your Internal Customers As Well AS Waste And Cycle Time Measures. They Are Correlated To The Pertinent Output Measures Output Measures Are Measures Used To Determine How Well Customer Needs And Requirements Are Met
  • 50. Quality Measurement There Are Two Types Of Measures Effectiveness Measures: The Degree To Which Customer Needs And Requirements Are Met And Exceeded Some Examples:  Percent Defective  Billing Accuracy  Response Time Efficiency Measures: The Amount Of Resources Allocated In Meeting And Exceeding Customer Requirements Some Examples:  Cost Per Transaction  Time Per Activity  Turnaround Time  Amount Of Rework
  • 51. Principles Of Good Measures <ul><li>List Of Criteria To Use In Evaluating Measurement </li></ul><ul><li>The Measure Must Be Important </li></ul><ul><li>The Measure Must Be Easy To Understand </li></ul><ul><li>The Measure Is Sensitive To The Right Things And Insensitive To Other Things </li></ul><ul><li>The Measure Promotes Appropriate Analysis And Action </li></ul><ul><li>Data Needed Must Be “Easy “To Collect </li></ul>
  • 52. “ Data Defined” Raw Facts - Qualitative Or Quantitative -Obtained By Observing A Population, Product, Process Or Service
  • 53. 5-Step Data Collection Process Clarif
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