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Six Sigma Constantly Improving Quality

Six Sigma Constantly Improving Quality. Allison Adams EMIS 7370 – Fall 2007. What is Six Sigma?.

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Six Sigma Constantly Improving Quality

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  1. Six SigmaConstantly Improving Quality Allison Adams EMIS 7370 – Fall 2007

  2. What is Six Sigma? • Quality objective that specifies the variability required of a process in terms of the specification of the product so that the products quality and reliability meets and exceeds the customers requirements • Process of eliminating defects • Operate with defect levels below 3.4 defects per million opportunities • Improvement to all company processes • Decrease process variation • Increase stability in design

  3. Relationship to Statistical Analysis • Sigma (σ) • Used to represent standard deviation in a process (standard deviation is a measure of variability) • Based on the perception that most processes follow the normal distribution • Mean (or expected value) = μ • Standard Deviation = σ

  4. f(x) x Standard Normal Distribution-Probability Distribution Function

  5. Sigma Correlation to Defects **graph shown on logarithmic scale**

  6. The ±1.5 Sigma Drift • All processes assumed to have a drift in the process mean

  7. Six Sigma – Basic Methodology To improve an existing process: • DMAIC: • Define the process improvement goals that are consistent with customer demands • Measure the current process and collect relevant data for future comparison • Analyze to verify and determine relationships • Improve or optimize process based upon the analysis • Control to ensure that any variances are corrected before they result in defects

  8. Six Sigma – Basic Methodology To create a new process: • DMADV: • Define the goals of the design activity • Measure and identify the product capabilities, production process capabilities, and risk assessments • Analyze to develop and design alternatives • Design details, optimize the design, and plan for design verification • Verify the design, set up pilot runs, implement production process

  9. Implementation Roles • Executive Leadership • Top Management team members (includes CEO) • Champions • Responsible for Six Sigma implementation across the entire organization • Master Black Belts • In-house experts on Six Sigma • Experts • Work across company boundaries • Black Belts • Apply Six Sigma methodology to specific projects • Green Belts • Employee who uses Six Sigma implementation along with their daily job tasks • Yellow Belts • Employee who is trained in Six Sigma, but not actively engaged in a Six Sigma project

  10. Implementation Roles, cont.

  11. History of Six Sigma • Roots of Six Sigma • Carl Frederick Gauss – introduced the concept of the normal curve • Creator of “Six Sigma” • Bill Smith, of Motorola - originally formulated the methodology of six sigma is 1986 • Recognized that the traditional quality levels were not good enough

  12. Applications of Six Sigma • Problem-solving approach traditionally used in the following fields: • Business • Sales & Marketing • Human Resources • Engineering • Software • Information Technology • Production Processes • Manufacturing • Inventory/Warehousing

  13. Success Stories of Six Sigma • Motorola • Documented more than $16 billion in savings as a result of Six Sigma efforts (as of 2006) • General Electric • Estimated $10 billion in benefits of using six sigma in the first 5 years of implementation

  14. Motorola 3M Lockheed Martin Texas Instruments Bell Helicopter Apple Computer Chevron Citigroup Hewlett Packard Ford Motor Company Honeywell General Dynamics Adolph Coors Eastman Kodak United States Army Xerox NASA *plus many more* Companies Currently Implementing Six Sigma:

  15. Criticism of Six Sigma • Success is heavily dependant on the establishment of the right organizational culture • Entire Organizational buy-in • Support and Participation for all levels of leadership • Normal Distribution doesn’t represent all process • 3.4 defects per million may not be ideal for all products/processes

  16. Benefits of Six Sigma • Reduction in costs • Reduction in waste chain • Better understanding of customer requirements • Improves quality performance • Develops robust products and processes • Provides critical process inputs

  17. Summary • Six Sigma integrates the principles of business, statistics and engineering to achieve tangible results • Customer satisfaction • Lean processes (with minimal variation) • Quality as a way of doing business

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