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Version 1.0
Design for Six Sigma
Seite 1, © Kei 2004
Kilian EiseneggerExecutive Director Technics, ASQ Six Sigma BlackbeltBaumgartenstrasse 15, 8200 SchaffhausenTel. +41 52 635 65 96, Fax +41 52 635 65 [email protected] http://www.iwc.ch
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= DFSS An introduction to Six Sigma at IWC
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Design for Six Sigma
Seite 2, © Kei 2004
Content
Introduction……………………………………………………. 3The Six Sigma timeline………………………………………. 4ISO and Six Sigma…………………………………………… 5IWC actions……………………………………………….….. 6Watch industry……………………………………………….. 15DMAIC or DFSS impact………………………………….….. 18Performance………………………………………………….. 20Product lifecycle……………………………………………… 23R&D consequences………………………………………….. 24DFSS………………………………………………………….. 29Outlook………………………………………………………… 31
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Design for Six Sigma
Seite 3, © Kei 2004
Introduction
VisionWe are the proud engineers of fascinating timepieces from Schaffhausen for demanding people.
MissionWe win the world through outstanding technical milestonesand are one of the most desirable premium watch brands.
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Design for Six Sigma
Seite 4, © Kei 2004
The Six Sigma timeline
Based on the Fortune 500 list from 1999, 14 of the top 100 companies utilise Six Sigma.
IWC
Richemont
IWC SuppliersDonzé BaumeBrogioli...Manufacture Complications
1987 199919971995199319911989
Motorola IBM DEC
ABBKodakTI
Allied SignalGeneral Electric
CompaqDow ChemicalDuPontDeereLockheedMartinNECPACCARSeagate Tech.SiemensToshibaWhirlpool
Air ProductsAmerican ExpressFord MotorsHoneywellJohnson ControlJohnson & JohnsonJ.P. MorganLG GroupEriccsonMaytagNavistarNCRNokiaPhilipsRytheonPraxairSamsung Elec.SolectronSumitonoUnited TechnologiesUS Postal Service
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Seite 5, © Kei 2004
ISO and Six Sigma
• ISO is used to build up processes and process organisation• With Six Sigma we measure and optimise the processes
We use both systems at IWC
Geschäftsplanungsprozess(G. Kern/Prozessowner)
Kommunikationsprozess(G. Kern/J.Rose)
Führungsprozess(M. Schuler/Prozessowner)
Richemont
Visi
on/
Vor
gabe
n
BusinessplanJahresendbericht
Mitarbeiter-Information
Businessplan
Eckdaten5-
Jahresfinanzplan
Mita
rbei
ter
Info
Budget
SOLL/ISTVergleich
Prognosen
Produktentwicklungsprozess(K. Eisenegger/M. Rüsch)
Beschaffungs-undProduktionsprozess(R. Jäger/D. Fath)
Verkaufsprozess(M. Bernhardt/M. Rigotti)
Pro
dukt
estra
tegi
eEn
twic
klun
gsau
ftra
g
Auss
teue
rent
sche
id
Frei
gabe
Entw
ickl
ungs
auftr
ag
ProduktinformationInnovationsvorschla
g
Auss
teue
rvor
schl
ag
Verk
aufs
unte
rstü
zung
Lieferant
Kunde
repa
rierte
Uhr
Info
rmat
ione
n Se
rvic
e
Qua
lität
Ser
vice
pers
onal
Tuni
ngW
unsc
h
Schu
lun
g Ersa
tzte
ilbes
tellu
ng
Rek
lam
atio
n
Kund
enan
frage
Rep
arat
ur
Markenwelt
Produktwelt
Familienwelt
NationaleMarktauftritte
Ferti
ge U
hr a
m P
OS
Qua
lität
des
POS
Kund
enbe
dürfn
isse
kompl. Produktdokumentation
Verbesserungsvorschlag
Änderungsmitteilung
HomologiertesProdukt
Ersatzteil
SAV-Bedarf disponiert
Produktsituation
UoB homologiert
Absatzplanung - VbP
Fehlerliste
Instandhaltungsprozess(R. Jäger/D. Carld)
Personalprozess(M. Schuler/P.Beglinger)
Ver
bess
erun
gsvo
rsch
läg
e
Erfahrungswerte
Störungs-meldung
Kapazitätsplanung
Informationgewartetes
Betriebsmittel
ServiceheftReparaturblat
tHersteller
War
tung
sint
erva
ll
Erfa
hrun
gsw
erte
n
Personalbedarf
Anfrage nach Betreuung
Personalbesetzung
Führungsinstrumente
Personalstrategie
Arb. Markt Image
Budgetierungs- undControllingprozess
(M. Schuler/H.P.Meier)
Serviceprozess(M. Bernhardt/R. Schwarz)
ProduktspezifischesServicekonzept
Ersa
tzte
illief
erun
g
QS(K. Eisenegger/H. Fischer)
Pro
dukt
stra
tegi
e
Produktmanagement-prozess
(G. Kern/P.Brida)
3-Ja
hres
plan
Kap
azitä
tsab
stim
mun
g
Neu
heite
n-B
edar
fspl
an
Bedi
enun
gsan
leitu
ng/
Bei
pack
Sortimentspflege SOPF
PROLANCE
Frei
gab
e
Frei
gabe
ents
chei
d
Pha
sen-
Frei
gabe
?
SPC
C
Infrastruktur(K. Eisenegger/T. Dorigo)
IT(M.Schuler/A.Flum)
complementary
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Seite 6, © Kei 2004
IWC actions
2003 2004 2005
Black belt training
DMAIC project 2002
Aquatimer DFSS project (movement)
Internal yellow belt trainings
Internal green belt trainings
Write DFSS training handbooks
Change R&D processhandbooks
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DMAIC
2003
Black belt (DMAIC) training
DMAIC project 2002
DPMO 61904.76Sigma (with shift) 1.54
Where are the defects?Which methods will help to avoid this defects?Use these methods for the future projects
Process Sigma as KPI
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DFSS
2004
DPMO Sigma (with shift) >4Aquatimer DFSS project (movement)
Gleitwinkel
Fede
rbre
ite
454443424140
0.67
0.66
0.65
0.64
0.63
0.62
Hold ValuesHalteplatte mit
Resultate
7.5 - 8.08.0 - 8.5
>
Z [N]
8.5
< 7.07.0 - 7.5
Contour Plot of Resultate Z [N] vs Federbreite; Gleitwinkel
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Collecting data & information
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Creating own handbooks
• No existing DFSS standard• DFSS is relatively new, not as well
known as DMAIC• Most information is only in English
=> translation• Examples and practices from our own products• More familiar with our own documentation,
not only based on theories, a more pragmaticapproach
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Process integration
FMEA
OFD
FEM
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Internal training
Yellow BeltProcess Capability
Green BeltFMEA,DOE, OFD,
CPM Process evaluation
Name VornameA5-
Ordner Prozessfähigkeit QFD Prozessevaluation FMEAAbad Amaro 02.07.2004Bourgeois Luc X 26.03.2004 28.04.2004 28.05.2004Eschmann Lorenz 26.03.2004Frei Jonas 07.05.2004Güntert Helmut X 26.03.2004Haamann Dino 02.07.2004Ihnen Stefan X 26.03.2004 28.04.2004 28.05.2004Indlekofer Christian 07.05.2004 28.04.2004 28.05.2004Indlekofer Thomas 07.05.2004 28.05.2004 02.07.2004Kaufmann Markus 07.05.2004Kogler Stefan X 26.03.2004Lurati Marcus 02.04.2004Meister Hanspeter 07.05.2004 02.07.2004Metzger Beat 02.04.2004 02.07.2004Mojon Jean-François 28.04.2004 28.05.2004Oppold Matthias 02.04.2004Robakowski Martin 07.05.2004Rühli Severin 02.04.2004Schmeckenbecher René 02.04.2004Schweizer Pascal X 26.03.2004Speichinger Ferdinand X 26.03.2004Stucki Bernhard 02.07.2004Voutat Joanne X 26.03.2004Zimmermann Heiko 26.03.2004 28.05.2004Zimmermann Denis 28.04.2004 28.05.2004Eisenegger Kilian XSmit Martina X 26.03.2004
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Watch industry
• Traditional industry• A lot of classic empiric experience• A lot of variance and individual components
• Modern industry• Use of new methods• Build more standards
A mechanical watch has not been significantly improved since 1975, compared to a digital camera where we have each year the double number of pixels. If we make a better watch and increase customer satisfaction, we have to use the same state of art methods
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Turnover split, IWC
Ebit
Non quality costs 10% to 20% from turnover
Non optimised component costs,R&D, production, suppliers
Turn
over
IWC
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Seite 15, © Kei 2004
Turnover split, competitors analyses
Lean Six Sigma
DFSS methods
DMAIC methods
Customer satisfacton
Customer satisfacton
Customer satisfacton
Turn
over
IWC ETA Toyota
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DMAIC or DFSS impact
Indirect costs
DFSS75%
DMAIC25%
R&D Production
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DMAIC or DFSS introduction
Indirect costs Staff
DFSS75%
DMAIC60%
DMAIC25% DFSS 5%
Production R&D ProductionR&D
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GE performance
GE took in the first place in market value list of Forbes in 2004 of the 2000 most successful companies (49’492 $ / employee)
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Toyota performance
Toyota took place Nr. 8 in the list of Forbes in 2004 of the 2000 most successful companies (30’254 $ / employee)
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Richemont performance
In comparison Richemont on the 548 place andSwatchgroup on the 933. (52’744 $ / employee)
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Product lifecycle
Hom
olog
atio
n
Qua
lifik
atio
n
Risk by launch
R&DEag
le/ IR
IS
Failure quotas
Measure System:-R&D Qualification/Homologation-Failure Code System Eagle/IRIS(5)
Failure avoidance:-R&D DFSS Methods FMEA, QFD, FEM-Series DMAIC
Simulation
Reality
Label RichemontReliability >= 0.9
Eagle Projekt <= 5%
Qua
ntity
Timeline tSeries productionDFSS Methods DMAIC Methods
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R&D consequences
Concept PrototypeConstruction
Concept PrototypeConstruction
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Use of experience
Engineer with use of methods and analytics
2
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= σµ
πσ
x
exf
Func
tion*
Qua
lity*
Cos
ts
Experienced Engineer (empiric)
Junior Engineer
Variance
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Supplier commitments
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Design optimise analyse verify
Design translates the customer CTQ’s into functional requirements and into alternative solutions. A selection process whittles down the list of solutions to the "best" solution
Optimise uses advanced statistical tools and modelling to predict and optimise the design and performance
Analyse the process options to meet the customer needsVerify the design performance and ability to meet customer needs
Design Optimise Analyse
VOC CTQ‘s QFD Analyse C&E FMEA CPM Process Evaluation
VerifyHomologation SPC
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Impacts
Time to Market Customer satisfaction
Price optimisation Best solution
R&D
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DFSS
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IWC and DFSS today
Reached targetsReduction failure rate before mass production xKnow customers need, no changes of specification xAfter sales service statistics implementation in R&D xPrice optimisation into process evaluation => process capability xTime to market, no conceptual defects xCustomer satisfaction To be proved
Used methods for DFSS:
VOC>CTQ, SIPOC, Gage R&R, QFD, FMEA, OFD, DoE, ANOVA, F-Test, T-Test, CPM, SPC
IWC 6σ start with Ref. 3723
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Outlook Richemont
2004 2005 2006
IWC
All R&D projects with DFSS project
CAQ Böhme & Weihs implementation with SPC
Richemont
Approve DFSS as Richemont group standard
Richemont yellow belt trainings
Richemont green belt trainings
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Add ons
Six Sigma Generation III……………………………………. 3Six Sigma in small companies………………………………. 4
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Outlook DFSS
DFSS Six Sigma Generation III
ICRA (Innovate, Configure, Realize, Attenuate)This model helps one to think through any issues - personal or business that require solutions.
The ICRA Power Thinking model follows the following pattern: • Innovate Growth - by recognizing value needs and defining change opportunities • Configure Goals - by measuring existing conditions and analysing contributing forces to these conditions • Realize Gains - by improving action settings and controlling input variables • Attenuate Gaps - by standardizing success factors and integrating lessons learned.
Power Thinking with ICRA produces innovative ideas; robust execution (DMAIC) of the innovative ideas produces powerful results.
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Small companies and Six Sigma
Top down or bottom up
(Mikel J.Harry) For small companies it’s got to go the other way. It’s got to bubble up.
Here’s how: Suppose I’m an individual in a company that’s not doing Six Sigma. But maybe if I do it, and do it well, people will follow my example. And besides, being a Black Belt, I’ll make more money. So I’m going to become a Black Belt, put more money in my pocket, and by doing well, maybe I can get my company to start using it. So the reasoning process is from the individual up instead of from the CEO down.
The goal is not to deploy it. The goal of flow-down is deployment and implementation. That’s what I mean when I say Six Sigma is changing its shape and character. Six Sigma is no longer being promoted by the likes of Jack Welch, Larry Bossidy, Bob Galvin and other executives. They’ve said their piece. They’ve benefited from it. Now we see surveys being done that show Black Belts make more money. We’re seeing people say, I want to be a Black Belt; my company is not doing it. How do I get trained? We’re seeing an individual interest.