GOLD STAR GROUPGOLD STAR GROUP

INTRODUCTION TO

SIX SIGMA MANAGEMENT

Six SigmaSix SigmaStatistical concept that allow less

than 3.4 defects per million opportunities.

Long-term strategy & takes 3 to 5 years to implement.

Applicable to all types of industries manufacturing as well as services.

Objectives of Six SigmaObjectives of Six SigmaMove towards Zero defect level

(measures error in ppm & not in percentage)

Focus on process improvements rather than final outcome.

Cost reduction & total customer satisfaction.

Different Aspects of Six Different Aspects of Six SigmaSigma

Commitment To clients for highest quality of products & services.

Metric To demonstrate quality levels by measuring defects / errors.

GoalTo reach 99.99966 % defect free performance in production & processes.

Tool set To apply statistical tools to measure & analyse any process.

Significance Of SigmaSignificance Of Sigma SIGMA (6), a Latin alphabet used to denote

standard deviation. Standard deviation is a measure of dispersion –

the spread of values about the average value. Deviation is the difference between an

individual value & the average value of a variable. (e = Xi- X)

Variance is the mean of squared deviations((Xi-X)2/n)

Standard deviation is the square root of variance

ExampleExample

Statistical Statistical

NormalNormal Distribution Distribution CurveCurve

Bell shaped frequency distribution curve.Which is symmetrical about mean (average) The spread (of the curve) is measured by the standard deviation.

For a normal distribution, the following relationships hold good:Mean +1 6 covers 68.27% of Normal curve area.Mean +2 6 covers 95.45% of Normal curve area.Mean +3 6 covers 99.73% of Normal curve area

Translate into number of defectivesMean +3 6 results into 66,803 ppmMean +4 6 results into 6,200 ppmMean +5 6 results into 233 ppmMean +6 6 results into 3.4 ppm

PROCESSPROCESS

PROCESS VARIABILITYPROCESS VARIABILITY Chance Causes

(Common Causes) Inevitable Inherent property Having small

magnitude Difficult to

identify

Assignable Causes

(Special Causes) Few in number Larger magnitude Easy to identify

PROCESS CONTROLPROCESS CONTROLAs long as the variables fluctuate

in a normal manner, a stable pattern of chance causes develop.

It is a MUST to ensure that the process is stable i.e.. having only chance causes.

PROCESS CAPABILITYPROCESS CAPABILITY Defined by two capability indices.1. Cp i.e... Capability index = USL-LSL

6 SIGMA2. Cpk i.e... Capability index compared to some

constant k.= Cp (1-k)k = Target – Actual process mean (USL-LSL)/2

Process capability = 6 sigma = 2700 defectives parts per million.12 sigma = 0.2 defectives parts per million.

SIX SIGMA PROCESS SIX SIGMA PROCESS CAPABILITYCAPABILITY

A 4 sigma company will spend >10% of revenue on internal & external repairs.

A 6 sigma company will spend <1% of revenue on internal & external repairs.

Most companies stop improving at about 3 sigma.Cost: 25%-40% of revenue

Every Organization Is Every Organization Is Actually Two Actually Two

Organizations In OneOrganizations In OneThe mainline organization that

produces your products & services, and

The “FIX- IT” organization that cleans up the defects caused by the mainline organization.

TRANSFORMATION TO TRANSFORMATION TO SIX SIGMASIX SIGMA

1. Find answers for the basic questions:

Do we know what is right?Can we do it right?Are we doing it right?Can we do better?

2. Initiate:Process OrientationCustomer orientationPeople Orientation

Cont…

3. Utilize:Process improvement MethodologyProblem Solving MethodologyPolicy management Methodology4. Refine:Technology Development ProcessReliability & Quality ProcessBusiness Planning ProcessAwards /Rewards/Compensation Process5. Apply:Appropriate Tools & Methods

SIX SIGMA SIX SIGMA IMPLEMENTATIONIMPLEMENTATION

Identify the needs Clarify vision Develop the plan Implement the plan Evaluate the results Sustain the gain

Basic steps (DMAIC) of Six Sigma Basic steps (DMAIC) of Six Sigma processprocess

D: Define the goals of the improvement activity. At the top level the goals will be the strategic objectives of the organization, Such as a higher return on investment or market share. At the operations level,a goal might be to increase the throughout of a production department. At the project level goals might be to reduce the defect level & increase the yield.

M: Measure the existing system,based on customer input, select the appropriate responses(the Y’s) to be improved & ensure that they are quantifiable & can be accurately measured. Determine what is unacceptable performance or defect. Gather preliminary data to evaluate current performance.

Cont….

A: Analyze the system to identify ways to eliminate the gap between the current performance of the system or process & the desired goal.begin identifying root causes of the defects (the X’s or independent variables) & their impact.I: Improve the system. Be creative in finding new ways to do things better, cheaper, or faster. Use project management & other planning & management tools to implement the new approach. Use statistical methods to validate the improvement.C: Control the new system. Institutionalize the improved system by modifying compensation & incentive system, policies, procedures, MRP , budgets, operating instructions & other management systems.

THE CHAMPION(S)THE CHAMPION(S) Management (Mentors, Sponsors) Believe in the need for change, create

the vision , provide resources Authorize , legitimize,own the change Trained in SS philosophies & methods Demonstrate visible,top-down

commitment to SS Establish a SS Leadership Team

SIX SIGMA LEADERSHIP SIX SIGMA LEADERSHIP TEAMTEAM

Trained in Six sigma Develop the SS Master Plan to accelerate

performance Work with management sponsors to

identify SS Expert candidates Develop a focused curriculum Schedule training Serve as mentors for SS Expert candidates Determine certification requirements

SIX SIGMA EXPERTSSIX SIGMA EXPERTS Experts should equal 10-20 per 1000 employees Duties include:o Assist management in identifying key business issueso Lead SS projectso Take charge in area of needed improvemento Provide leadership within the area of their expertise o Stimulate management thinkingo Challenge old ways of doing business/ be a change

agent o Teach, consult & mentor the green belts & black belts.o Motivate others to set & accomplish stretch goals

GREEN BELTSGREEN BELTS Need to understand basics of SS Use statistical tools for continuous

improvement COPQ Process mapping Cause & Effect Diagrams Standard operating procedures (SOP) MSA & Gage R & R X-bar / R, X- Bars/s. IMR, c & p charts Must understand “Lean” practices

BLACK BELTSBLACK BELTS Are responsible for leading , executing &

completing DMAIC projects. Teaches team members the SS methodology &

tools. Assists in identifying project opportunities &

refining project details & scope. Reports progress to the project champions &

the process owners Transfers knowledge to other Black Belts & the

Organization Mentors green Belts.

SUSTAINING SIX SIGMASUSTAINING SIX SIGMADon’t rely on outsiders. If you don’t

have the commitment, resources, funding, stomach to do this, don’t do it.

Don’t think you can “delegate” Six Sigma

If you don’t like statistics, “don’t go there”.. Six sigma requires statistical analysis.

THANK YOUTHANK YOU