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Six Sigma Improvement Process

Six Sigma Improvement Process Training Presentation

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Six Sigma Improvement Process

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  1. CONTROL DEFINE SIXSIGMA IMPROVEMENT PROCESS IMPROVE MEASURE Transforming Processes, Elevating Performance ANALYZE C:\Users\Allan BigMac\Documents\000 OEC\Logo\The Logo Company\FINAL\OperationalExD24aR02bP01ZL\TRANSPARENT.png © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Identify key roles and responsibilities in Six Sigma projects and understand project selection and management for maximizing benefits. Understand key Six Sigma concepts and principles for continuous improvement. Apply Six Sigma tools and DMAIC methodology to solve business problems. Identify the critical success factors for successful Six Sigma implementation. 2 © Operational Excellence Consulting

  3. CONTENTS 1 5 Overview of Six Sigma Six Sigma Toolkit 2 6 Key Concepts of Six Sigma Organizing for Six Sigma Project Selection & Management 3 7 Critical To Quality (CTQ) 4 8 Six Sigma Methodologies Critical Success Factors 3 © Operational Excellence Consulting

  4. THE CASE FOR SIX SIGMA QUALITY Increasing market competition Long delivery lead times Complicated processes and systems Rising cost of labor and materials Maintain customer satisfaction and loyalty Develop a culture of continuous improvement and innovation High cost of poor quality (COPQ) Improve productivity 4 © Operational Excellence Consulting

  5. WHAT IS SIX SIGMA? Definition Toolset Performance Improvement Six Sigma is a methodology for continuous improvement, aiming to create products and processes that perform at high standards. Six Sigma utilizes statistical and quality tools to conduct root cause analysis of problems, enabling informed decisions to improve processes and outcomes. Six Sigma is a way to understand your current state and envision where you could be, driving quality philosophy and management techniques. 5 © Operational Excellence Consulting

  6. WHY IS SIX SIGMA IMPORTANT? To maintain customer satisfaction and loyalty by reducing and eliminating defects* GREATER PROFITS *Any product or service that does not meet customer expectation is a defect. 6 © Operational Excellence Consulting

  7. SIX SIGMA SUCCESS STORIES: BILLIONS SAVED AND ADDED TO THE BOTTOM LINE AlliedSignal Savings Motorola Savings Bank of America Impact Financial Impact at GE Motorola saved over $15 billion in the first 10 years of its Six Sigma implementation. Bank of America reported a cumulative financial impact of over $2 billion by the end of 2003. AlliedSignal (now Honeywell) reported saving $1.5 billion through Six Sigma. Six Sigma added over $2 billion to GE’s bottom line in 1999. 7 © Operational Excellence Consulting

  8. KEY PRINCIPLES OF SIX SIGMA Focus on the customer Process focus Proactive management Data-driven decision making Fact-based management Pursuit of perfection Continuous improvement Employee involvement 8 © Operational Excellence Consulting

  9. “ You have to rise above it to the next level. You can’t solve a problem on the same level that it was created. ALBERT EINSTEIN 9 © Operational Excellence Consulting

  10. PROCESS PERFECTION: STRATEGIES FOR EFFICIENCY AND QUALITY Streamlines processes by eliminating waste and optimizing flow. Lean Identifies and removes barriers to process efficiency to maximize output. Process Improvement Methodologies Theory of Constraints Reduces variation and defects in processes to improve quality and consistency. Six Sigma 10 © Operational Excellence Consulting

  11. SIX SIGMA BUSINESS IMPROVEMENT CONCEPT Traditional process analysis begins by examining internal processes, while Six Sigma prioritizes market and customer perspectives, aiming to minimize defects from their viewpoint. Market Critical Customer Requirements Requirements Critical Customer Process Inputs Business Process Process Outputs Suppliers Defects Root cause analysis of defects leads to permanent defect reduction Variation in the output of processes causes defects ● Disciplined management-by-fact problem solving ● Methodology for optimizing the value chain ● Measurement of performance excellence 11 © Operational Excellence Consulting

  12. QUALITY ESSENTIALS: BUILDING CUSTOMER-CENTRIC PROCESSES WITH SIX SIGMA Process Capability Critical to Quality (CTQ) Defect What your process can deliver. Attributes most important to the customer. Failing to deliver what the customer wants. Design for Six Sigma (DFSS) Variation Stable Operations What the customer sees and feels. Ensuring consistent, predictable processes to improve what the customer sees and feels. Designing to meet customer needs and process capability. 12 © Operational Excellence Consulting

  13. PROBLEM-SOLVING OBJECTIVE Off-Target Unpredictable X X X X X X XXX X X XX XX X X X X X X X X X X X X On-Target X Center Process Reduce Spread X Xxx XXXxx X X X XX XX X X Six Sigma identifies and reduces off-target or unpredictable variation to improve process performance and meet customer requirements consistently. 13 © Operational Excellence Consulting

  14. REAL WORLD: WHAT IS SIGMA PERFORMANCE? Is 99% (3.8σ) good enough? 99.99967% Good – At 6σ VS 20,000 lost mails per hour 7 lost mails per hour Unsafe drinking water almost 15 minutes each day One minute of unsafe drinking water every seven months 5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week 2 short or long landings at most major airports daily One short or long landing at major airports every five years 200,000 wrong drug prescriptions each year 68 wrong drug prescriptions each year 14 © Operational Excellence Consulting Source: Adapted from GE

  15. TRANSLATING THE VOICE OF THE CUSTOMER Critical-to-Quality (CTQ): ▪ Customer-defined ▪ Measurable ▪ Translatable into a business specification Nebulous, broad Measurable, specific Measurable, measured EXTERNALLY DEFINED EXTERNALLY DEFINED INTERNALLY DEFINED VOC CTQ Y TRANSLATION: Calls should be resolved faster than five minutes Call cycle time to satisfactory resolution (in minutes) “I hate calling the Help Desk” The CTQ is the link between the VOC and the business process that the team will impact through the project 15 © Operational Excellence Consulting

  16. BASIC EQUATION OF A PROCESS Y = f(X) THE OUTPUT IS A FUNCTION OF THE INPUT: INPUT OUTPUT X’s Y’s (f) = Process Independent Variables Dependent Variables Causes Effects CONTROL the X’s, monitor the Y’s 16 © Operational Excellence Consulting

  17. ACTIVITY: CRITICAL TO QUALITY (CTQ) ACTION! 1. Objective: Define the critical aspects of a product or service that directly impact customer satisfaction. 2. Instructions: ● In groups, select a product or service your organization offers. ● Identify the most critical aspects of the product or service that directly affect customer satisfaction. ● Discuss and list down how these aspects can be measured or quantified. ● Brainstorm ways to ensure that these critical aspects are aligned with customer needs and expectations. Time allowed: 15 mins 3. Discussion Points: ● How will you ensure that the CTQs are measurable and align with customer expectations? ● What challenges do you foresee in defining and measuring CTQs? Presentation: Each group presents their selected product or service, the critical aspects identified, and their proposed approach to ensuring these aspects meet customer expectations. 4. 17 © Operational Excellence Consulting

  18. SIX SIGMA DMAIC APPROACH Control by standardizing solution and monitoring performance. Define the problem or opportunity. CONTROL DEFINE IMPROVE Six Sigma DMAIC Roadmap Improve by implementing potential solutions. MEASURE Measure the current performance and capability. ANALYZE Analyze to identify root causes. 18 © Operational Excellence Consulting

  19. SIX SIGMA DMAIC PHASES: DESCRIPTIONS AND DELIVERABLES Phases DEFINE MEASURE ANALYZE IMPROVE CONTROL Description Define the problem or opportunity. Measure the current performance and capability. Analyze to identify root causes. Improve by implementing potential solutions. Control by standardizing solution and monitoring performance. 1. Define business case 1. Map the process 1. Cause and effect analysis 1. Generate solutions 1. Control methods Deliverables 2. Define problem statement 2. Collect process data 2. Evaluate solutions 2. Control plan 2. FMEA 3. Verify data integrity 3. Pilot and implement solutions 3. Clear indication of improved primary metric 3. Establish baseline project metrics 3. Graphical analysis 4. Document process behavior 4. Statistical analysis 4. Statement of Y = f(X) 4. Define objective statement and scope 4. Project transition action plan 5. Baseline process capability (Sigma level or DPMO) 5. Form project team 5. Project approval 6. Identify financial impact 6. Quick wins 6. Financial validation 7. List of potential X’s 7. Lessons learned 7. Complete project charter 8. Approved project charter 19 © Operational Excellence Consulting

  20. “ part of the genetic code of our future leadership. Six Sigma is the most important initiative GE has ever undertaken. It is JACK WELCH Former CEO of G.E. 20 © Operational Excellence Consulting

  21. SIX SIGMA PROJECT ORGANIZATION Leadership Team Deployment Leader Champion (Political Leader) Master Black Belt (Technical Leader) Process Owner Black Belt Green Belt 21 © Operational Excellence Consulting

  22. ROLE OF LEADERSHIP TEAM Establish business targets Define strategic goals and measures Create Six Sigma vision Allocate resources - team members and budget Promote Six Sigma methodology and tools Establish rewards and recognition 22 © Operational Excellence Consulting

  23. STRATEGIC STAFFING: MATCHING TALENT TO TASKS Time Required / Skill Level Black Belt Green Belt 23 © Operational Excellence Consulting

  24. DEPLOYMENT APPROACH BLACK BELT PROJECTS ● Broad Scope ○ Cross-Geography ○ Cross-Organization ○ Impact large number of people ● 9-12 Month Duration ● Benefits > $200K Six Sigma 2-Pronged Approach GREEN BELT PROJECTS BLACK BELT PROJECTS GREEN BELT PROJECTS ● Specific Scope ○ Single Process or Geography ○ Drives Six Sigma into the DNA of the Organization ● 4-6 Month Duration ● Benefits > $50K Specific Scope Faster Results Smaller Benefits Broader Scope Slower Results Larger Benefits 4-6 Months 9-12 Months 24 © Operational Excellence Consulting

  25. UNVEILING OPPORTUNITIES: WHERE SIX SIGMA PROJECTS BEGIN External Sources Internal Sources Voice of Customer ▪ What are we falling short of meeting customer needs? ▪ What are the new needs of customers? Voice of Process ▪ Where are the defects, repairs, reworks? ▪ What are the major delays? ▪ What are the major wastes? Voice of Market ▪ What are market trends, and are we ready to adapt? Voice of Employee ▪ What concerns or ideas have employees or managers raised? ▪ What are we behind our competitors? Voice of Competitors ▪ What are we behind our competitors? 25 © Operational Excellence Consulting

  26. THE SIX SIGMA PAYOFF MATRIX: BALANCING BENEFITS AND COSTS High Benefit Most Attractive The Payoff Matrix helps to visualize the trade-offs between the benefits and costs of a Six Sigma project. ● BENEFIT: Defects Satisfaction Cost Timeliness By analyzing the matrix, project teams can determine the optimal balance between achieving benefits and managing costs. ● Least Attractive Low Benefit High Cost Low Cost COST: Resources Financial, People, Time 26 © Operational Excellence Consulting

  27. MAXIMIZING SIX SIGMA GAINS: HARVESTING THE FRUITS OF SUCCESS Sweet Fruit ▪ Design for repeatability ▪ Process enhancement Bulk of Fruit ▪ Process characterization and optimization Low Hanging Fruit ▪ Seven basic tools Ground Fruit ▪ Logic and intuition 27 © Operational Excellence Consulting

  28. ACTIVITY: PROJECT SELECTION CRITERIA ACTION! 1. In groups, discuss and identify potential projects for improvement within your work area or organization. Time allowed: 20 mins 2. Use the following criteria to evaluate and select the most suitable project: a) Impact: Does the project have the potential to significantly improve a key metric or address a critical issue? b) Feasibility: Is the project realistic in terms of available resources, time, and scope? c) Alignment: Does the project align with organizational goals and strategic objectives? d) Measurability: Can the success of the project be measured quantitatively? e) Sustainability: Will the improvements made be sustainable over the long term? 3. 4. Select one project from your list based on the criteria discussed. Present your selected project and the reasons for choosing it to the class. 28 © Operational Excellence Consulting

  29. DRIVING SIX SIGMA SUCCESS: THE ESSENTIAL FACTORS Leadership Commitment Goal-driven Reengineering Innovation Encouragement Leadership must visibly support and drive Six Sigma initiatives, actively participating in the process. Set challenging yet achievable goals that necessitate reengineering processes to meet them, driving continuous improvement. Foster a culture that encourages and rewards innovative ideas for process improvement, driving creativity. 29 © Operational Excellence Consulting

  30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg Image result for pinterest logo transparent © Operational Excellence Consulting

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