Six Sigma Overview

1. Six Sigma Overview

2. Objective In This Module We Will…. • Understand the objective of Six Sigma • Understand the Six Sigma measurement • Gain an understanding of the Six Sigma terminology • Introduce the DMAIC process/methodology • Understand the objective of each of the 5 phases (DMAIC) of Six Sigma methodology • Discuss the differences between Six Sigma and other corporate initiatives.

3. Is 99% Good ?

4. 99% Accuracy • Practical Meaning of “99% Good” • 20,000 lost articles of mail per hour • Unsafe drinking water almost 15 minutes each day • 5,000 incorrect surgical operations per week • 2 short or long landings at most major airports each day • 200,000 wrong drug prescriptions each year • No electricity for almost 7 hours each month 99% Is NOT Good Enough Anymore

5. 6 s – The Measurement 99.0% = 3.85s 99.9996% = 6s Is there really a big difference between 99.0% & 99.9996%?

6. Facts • All work is a process • All processes have variation and waste • Variation causes defects waste causes loss • Processes can be improved by understanding the nature of the variation and waste

7. ISO DFSS Lean Waste Elimination Design For Growth Six Sigma Variation Elimination Methodologies

8. Lean Philosophy Anything the customer will not pay for is Non-Value Added 80% of Non-Value Added is waste

9. 6 Methodology Culture Six Sigma Process Project Focus DMAIC DFSS (IDOV or DMADV) Tool Kit Defect Elimination Variation Reduction Common Language Department Link Change Roles and Commitment

10. Change Management • New Way of Looking at Problems • Fact Based Decision Making • Not Relying on “Gut Feel” • Change Management Change Six Sigma Incorporates Change Management

11. Six Sigma Is… Structured Problem Solving Fact Based Decision Making Rigorous Methodology Management By Fact Statistically Based Team Driven “Six Sigma Is Not… Gut Feel Reliance On “Best” Customer That Won’t Work Here” Opinion “We’ve Tried That” Firefighting Six Sigma Methodology is Change

12. The Methodology • Scalable to the depth and breadth of the organization • Applicable to all business regardless of size or industry • Project focused depending upon the strategic direction of the organization Methodology

13. Getting to Six Sigma How far can inspectionget us?

14. Inspection Exercise Instructions: Count the number of times the 6th letter of the English Alphabet appears on the next slide. F f

15. The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeeneie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition.

16. TheMacFeenieCompany wasfounded byFannie MacFeenieof Fredericksburg,Florida. TheMacFeenieCompanyfindsfirstthefinestfreshestfishforfeedinghungry people. TheMacFeenie Company can compete withFlorida’sfinestfishfoundries becauseFannieMacFeeniewho is thefounderofthe company deployed Six Sigmafive years ago. Now TheMacFeenieCompanyfinds defectscaused by variation and removes themfromprocesses. This helps theMacFeenieCompanysatisfy theircustomersfirst, thereby facilitating valuable market share from fierce fish foundry competition.

17. F Exercise Sigma Level Number Missed DPMO Sigma Value* Yield(%) 27027 3.4 97.3% 81081 2.9 91.9% 135135 2.6 86.5% 216216 2.3 78.4% 270270 2.1 73.0% 324324 1.95 67.6% 405405 1.75 59.5% 1 3 5 8 10 12 15 Total # F (f): 37, Opportunity: 1 slide DPMO Calculations = (# missed/Total # F) * 1,000,000/# Opportunities Sigma Calculation: Normal Distribution Z Table with 1.5 sigma shift Yield (%) = # Correct / Total # F NOTE: Sigma Level and Yield above are approximate short term calculations

18. Defect Reduction Yield Improvement Improved Customer Satisfaction Higher Net Income The Goals Of Six Sigma

19. Six Sigma – The Methodology

20. Process Vs. Customer LSL USL Defects Defects Acceptable Customer Requirement Process Performance Process Performance And Customer Requirement Often Do Not Match

21. 6 Sigma – The Basic Process • Understand the Customer Requirements • Reduce Variation Waste Within The Process To Reduce the Defects • Center the Process Around The Customer Requirements • Control The Process

22. Measure Improve Control DMAIC - 5 Phase Approach Define Analyze The Six Sigma Projects Are Completed By Following A 5 Phase Approach

23. Define Measure Improve Analyze Control Define Phase Objectives • Identify customer requirements • Identify corresponding process • Determine relationship between process and customer • Scope project • Identify problem statement • Identify team • Develop project contract

24. Identify process input and output variables Identify steps in process Remove waste from process Define Measure Improve Analyze Control Measure Phase Objectives Tools Process Mapping

25. Identify sources of variation Identify sources of waste Identify key variables Define Measure Improve Control Analyze Phase Objective Analyze Tools C&E Fishbone

26. Optimize process by making improvements Define Measure Improve Analyze Control Improve Phase Objective Tools Brainstorming

27. Control the optimized process Define Measure Improve Analyze Control Control Phase Objective Tools Standard Operating Procedure Mistake Proofing

28. Six Sigma Tool Box

29. Six Sigma Infrastructure

30. Project Champion Black Belts Finance Champion Enterprise Wide Six Sigma Roles Executives Project Team Members Senior Champion All departments have processes All processes can be improved All departments should implement Six Sigma Most “low hanging fruit” can be found outside of manufacturing 6 Green Belts