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6 Sigma - Introduction, Techniques and Implementation

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Page 1: 6 Sigma - Introduction, Techniques and Implementation
Page 2: 6 Sigma - Introduction, Techniques and Implementation

“HUMAN ERROR IS INEVITABLE. HOWEVER

WITH A WRONG SYSTEM WE CAN MAKE IT MORE

LIKELY TO HAPPEN”-Louis Litt

Page 3: 6 Sigma - Introduction, Techniques and Implementation

SIX SIGMAA part of Group Presentation by

Varun Of Group VII

Page 4: 6 Sigma - Introduction, Techniques and Implementation

Introduction

A manufacturing organization may be looked upon as a bundle of processes which have definitive inputs and outputs

But they have their fair share of errors and defects in the products that they dole out

Globalization, Instant access to information, products, services have changed the needs and expectations of the customers

It has become mandatory to change the way of conduct of any business

Customers look for products with Zero defects and want no compromise with the products that they’ve paid for

Today’s competitive world leaves no room for error and thus gave rise to SIX SIGMA

Page 5: 6 Sigma - Introduction, Techniques and Implementation

What is Six Sigma ?■ Six Sigma is a set of techniques and tools for process

improvement■ Introduced in the year 1986 by a Civil and Production Engineer

named BILL SMITH and BOB GALVIN who worked at MOTOROLA■ A highly disciplined process that enables organizations deliver

nearly perfect products and services.■ The figure of six arrived statistically from current average

maturity of most business enterprises■ A philosophy and a goal: as perfect as practically possible.■ A methodology and a symbol of quality.

Page 6: 6 Sigma - Introduction, Techniques and Implementation

Six Sigma is not:•A standard•A certification•Another metric like percentageRather!

•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.

■ Methodology to measure and improve company’s performance, practices and systems

■ A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4  defects per million opportunities

Page 7: 6 Sigma - Introduction, Techniques and Implementation

EVOLUTION

Page 8: 6 Sigma - Introduction, Techniques and Implementation

■1798: Eli Whitney, Mass Production and Interchangeable Parts

■1913: Henry Ford and the Moving Assembly Line■1924: Walter Shewhart’s and Edward Demings’

PDCA cycle■1925 : Nikola Tesla’s Coil design■1945: The Japanese Quality Movement ■1980 : USA’s counter move (35 years later !!!)■1987: International Organization for Standardization■1987: Motorola and Six Sigma■1988: Beyond Motorola

Page 9: 6 Sigma - Introduction, Techniques and Implementation

Type DPM % of Defects1 691,492 692 308,358 313 66,807 6.74 6210 0.625 233 0.0236 3.4 0.000347 0.019 0.0000019

Page 10: 6 Sigma - Introduction, Techniques and Implementation

PRINCIPLES

Page 11: 6 Sigma - Introduction, Techniques and Implementation

■ Genuine focus on Customer■ Data and Fact driven management■ Process focus, management and improvement■ Proactive Thinking■ Boundaryless Collaborations■ Drive for Perfection■ Tolerance for Failure

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METHODOLOGIES

Page 13: 6 Sigma - Introduction, Techniques and Implementation

■ There are 2 major methodologies used in Six Sigma– DMAIC– DMADV / DFSS

Page 14: 6 Sigma - Introduction, Techniques and Implementation

DMAIC

■ Stands for Define, Measure, Analyse, Improve and Control ■ Define the System■ Measure the key aspects of current process■ Analyse the data to investigate and verify cause – effect■ Improve or Optimize the process■ Control■ To be used when there is an existing system which doles out products

not meeting the customers’ expectation and is erroneous

Page 15: 6 Sigma - Introduction, Techniques and Implementation

DMADV

■ Stands for Define, Measure, Analyse, Design, Verify■ Define Project Goals■ Measure customer needs and Specs■ Analyse process options■ Design the process in detail■ Verify the performance■ To be used when there needs to be a new system to be developed

Page 16: 6 Sigma - Introduction, Techniques and Implementation

ORGANIZATION STRUCTURE IN

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IMPLEMENTATION PROCESS

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■ Select a Redressal Team■ Define and Describe the problem■ Implement and Verify Short Term solutions■ Define the root cause■ Implement Root cause solution and corrective actions■ Implement permanent solutions■ Prevent Recurrence

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ADVANTAGES AND

DISADVANTAGES

Page 21: 6 Sigma - Introduction, Techniques and Implementation

Advantages

■ Defect free product■ Lower After Sales costs■ Journey towards excellence■ Better reputation■ Lower Inspection / Supervision Costs■ Ship to stock ship directly■ Higher Employee morale■ Tension free working■ Greater Customer Satisfaction

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Disadvantages

■ Lack of Originality – Joseph. M. Juran■ Role of Consultants■ Very high production costs■ Over reliance on Statistical tools■ Rigidity kills innovation and creativity■ Require skilled workers■ Time barriers■ Gimmicky and just plain rebranding

Page 23: 6 Sigma - Introduction, Techniques and Implementation

ORGANIZATIONS THAT USE 6σ

Page 24: 6 Sigma - Introduction, Techniques and Implementation