Six Sigma Class Intro and Ppt

INTRODUCTION TO SIX SIGMA CONTENT FLOW ? collar half-dozen Sigma ? Definition ? World at sixsome Sigma examples ? sextette Sigma racing shell ? Why Six Sigma ? Six Sigma Methodologies &038 Tools ? Define ? stripe ? take apart ? modify ? Control WHATS IN A NAME? Sigma is the Greek letter representing the warning deviation of a population of entropy. ? Sigma is a measure of standard deviation (the data spread) ? ? ? SIX SIGMA IS ? A statistical concept that measures a service in terms of defects at the six sigma level, there 3. 4 defects per million opportunities ?A defect is anything that results in customer dissatisfaction Six Sigma is a methodology and a symbol of quality ? HOW OFTEN ARE WE DELIVERING ON TIME? ? If the target time is 30 Mins, the graphs below show dickens curves with medium at 25 Mins 30 mins 30 mins s s 0 10 x 30 2 sigma 20 40 50 0 10 20 x 30 4 sigma 40 50 ? ? How many standard deviations can you fit within customer expectations? Managing by the ave rage doesnt tell the whole story. The average and the variation together show whats happening. MANAGING UP THE SIGMA SCALE Sigma 1 2 3 4 5 6 % just % wild 30. 9% 69. % 93. 3% DPMO 691,462 308,538 66,807 69. 1% 30. 9% 6. 7% 99. 38% 99. 977% 0. 62% 0. 023% 6,210 233 3. 4 99. 9997% 0. 00034% EXAMPLES OF THE SIGMA SCALE In a world at 3 sigma. . . ? In a world at 6 sigma. . . ? There be 964 U. S. flight cancellations per day. The police make 7 false arrests every 4 minutes. 1 U. S. flight is cancelled every 3 weeks. There be fewer than 4 false arrests per month. ? ? ? In one hour, 47,283 international foresightful distance calls are accidentally disconnected. ? It would take more than 2 age to see the same number of dropped international calls.WHY SIX SIGMA? At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 just Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort AlliedSignal reports saving $ 1,5 billion through Six Sigma. Six Sigma is about practices that help you travel by defects and always deliver products and serve that meet customer specifications How are these savings realized? cost of flake? cost of rework? cost of excessive cycle times and delays? Benefits of added content and man-hoursDMAIC THE mitigateMENT METHODOLOGY Define Objective DEFINE the opportunity Measure Analyze Improve Control Objective Objective Objective judge current crumple the root IMPROVE the performance causes of conundrums process to eliminate root causes blusher Measure Tools Critical to Quality Requirements (CTQs) Sample scheme Capability Analysis Failure Modes and Effect Analysis (FMEA) identify Analyze Tools Histograms, Boxplots, MultiVari Charts, etc. Hypothesis ravels Regression Analysis Objective CONTROL the process to sustain the gains.Key Define Tools Cost of Poor Quality (COPQ) Voice of the Stakeholder (VOS) be after get hold of As-Is surgical operation Map(s) Primary Metric (Y) Key Improve Key Control Tools Tools Solution excerpt Control Charts Matrix Contingency To-Be do and/or Action Map(s) Plan(s) DEFINE DMAIC PROJECT WHAT IS THE PROJECT? $ Project Charter Cost of Poor Quality Stakeholders Voice of the Stakeholde r Six Sigma What is the problem? The problem is the Output ? What is the cost of this problem ? Who are the stake holders / finish makers ?Align resources and expectations ? DEFINE CUSTOMER REQUIREMENTS WHAT ARE THE CTQS? WHAT MOTIVATES CUSTOMER? SECONDARY look into Market Data THE Voice of the customer Key node regaining Critical to Quality Listening Posts Industry Intel Industry Benchmarking Customer dish out Customer Correspondence PRIMARY RESEARCH Survey s OTM Observations focus Groups MEASURE BASELINES AND CAPABILITY WHAT IS OUR CURRENT LEVEL Sample some data / not all data Current subprogram actuals measured against the Customer expectation OF PERFORMANCE?Descriptive Statistics Variable 2003 Output Anderson-Darling Normality Test A-Squared P- respect Mean StDev Variance Skewness Kurtosis N Minimum 1st Quartile median value 3rd Quartile Maximum 0. 211 0. 854 23. 1692 10. 2152 104. 349 0. 238483 0. 240771 100 0. 2156 16. 4134 23. 1475 29. 6100 55. 2907 ? ? ? What is the chance that we will succeed at this level every time? 0 10 20 30 40 50 95% self-assertion Interval for Mu 95% authorization Interval for Mu 21. 1423 19. 5 20. 5 21. 5 22. 5 23. 5 24. 5 25. 5 26. 5 25. 1961 95% Confidence Interval for Sigma 8. 690 11. 8667 95% Confidence Interval for Median 95% Confidence Interval for Median 19. 7313 26. 0572 ANALYZE VALIDATED ROOT CAUSES WHAT ARE THE KEY ROOT CAUSES? Experimental convention Data Stratification Regression Analysis Process Simulatio n Six Sigma y = f (x1, x2, x3 . . . xn) Critical Xs IMPROVE POTENTIAL SOLUTIONS HOW CAN WE administer THE ROOT CAUSES IDENTIFIED? ? WE Address the causes, not the symptoms. Generate Evaluate elucidate Decision y = f (x1, x2, x3 . . . xn) Critical Xs Diver gent Convergent IMPROVE SOLUTION SELECTIONHOW DO WE CHOOSE THE BEST SOLUTION? Solution Selection Matrix Qualit y Solution Sigma m CBA Other Score Time Cost Six Sigma Solution Right Wrong Implementation Good Bad O Nice Idea Nice Try X Solution Implementatio n Plan CONTROL SUSTAINABLE BENEFITS HOW DO WE patronage THE GAINS OF OUR NEW PROCESS? ? ? Some variation is normal and OK How extravagantly and Low can an X go yet not materially impact the Y Pre-plan approach for control exceptions Direct Process Customer CCR Date Measuring and Monitoring Loan Service Manager ? Process Owner Process DescriptionProcess Control System (Business Process Framework) Flowchart Customer Sales Processing Branch Manager Key Measure ments P1 activity duration, min. Specs &038/or Targets Measures (Tools) Responsibility Contingency Where &038 (Who) (Quick Fix) frequency 35 Remarks UCL=33. 48 Review appliation for completeness P2 of incomplete loan applications Individual Value Apply for loan 1. 1 Ap plication &038 Review 25 distinguish meeting information Mean=24. 35 No Application do? 1. 2 Processing 1. 3 Credit review 15 0 10 20 30 LCL=15. 21 1. 5 Disclosure 1. 4 Review Observation Number