Six Sigma – Basic overview

1. Six Sigma – Basic overview

2. WHAT IS THIS SIX SIGMA ? • APhilosophy • A Statistical Measurement • A Metric • A Business Strategy • make fewer mistakes in all that we do. • helps gage adequacy of product, process and services • A measuring system • good qualityreduces cost Sigma is a Greek word which denotes Standard deviation

3. SIGMA RATING AND PPM ARE CORRELATED Sigma RatingPPM 1 691,462 2 308,537 3 66,807 4 6,210 5 233 6 3.4 Process Defects per Capability Million Opportunities SIGMA RATING A PERFORMANCE MEASURE 6 SIGMA MEANS 3.4 DEFTS IN PER MILLION OPPORTUNITIES

4. 6 6 LSL USL 3 3 WHAT IS SIX SIGMA Six sigma is when the inherent variability of the process is half that of the requirements A WORD OF CAUTION: It is possible to achieve six sigma by widening specifications but the issue is that would the customer accept it.

5. Sweet fruits DFSS Process limitations Bulk of fruits Process characterization and optimization Low hanging fruits Simple QC tools Logic and intuition Quick hits-Kaizen Increase of sigma rating requires an exponential decrease in defect reduction

6. THE GOALS OF SIX SIGMA • 6 Sigma is a customer driven process improvement system that: • puts our Customers (BOTH INTERNAL & EXTERNAL) and their requirements first • 6 Sigma is THE change programme : • TO REDUCE VARIATION • TO REDUCE DEFECTS • TO IMPROVE YIELD • TO ENHANCE CUSTOMER SATISFACTION • TO IMPROVE THE BOTTOMLINE

7. HOW THIS WORK GETS DONE

8. IDENTIFYING THE KEY PLAYERS • There are four major roles that need to be filled for a successful project. • Black Belt/Green Belts • Team Members • Master Black Belt • Champion

9. DuringProject BeforeProject AfterProject • Review purpose projectstatement withsponsor/ champion • Draft rest of charter • Finalize team members • Manage schedules • Lead meetings • CoordinateCommunication • Serve as liaison withMBB, champion(s), andstakeholders • Keep records • Lead team’s work • See that documentationis completed andlessons captured • Update dashboard • Monitor implementation • Monitor results • Use improved methods Black Belt/ Green Belt (Project Leader) • Participate in meetings • Carry out assignments • Help in data collection • Assist in piloting • Contribute knowledgeand expertise • Learn necessary skillsand methods • Use improved methods Team Members PROJECT ROLES & RESPONSIBILITIES

10. Y Dependent variable Output of the process Effect Symptom It is monitored X1, X2, …….., Xn Independent variable Input to the process Cause Problem It is controlled THE FOCUS OF SIX SIGMA Y = f(X) To get results should we focus on Y or X?

11. 20 Percent of Sales 15 10 5 DPMO 3 233 6210 66807 308537 5000000 SIGMA 6 5 4 3 2 1 WHY 6 SIGMA FOR YOUR COMPANY • IMPACT ON COST OF QUALITY

12. DMAIC approach : 5 steps to solve the problems Measure Define Analyse Control Improve

13. ROAD MAP • Define Phase • Why this Project ? – Business Case • Project Charter • SIPOC – to find process scope and inputs • CTQ identification – to come down from Macro to micro objectives – CTQs have to be specific and measurable. • Create CTQ specification table – Operational definition of measure – Specifications / defect definition – Kano status • Review and Finalize Your Project Charter

14. Importance of Project Selection • The process and the method we use to select Projects are critical success factors in the achievement of business results through 6 Sigma • A good Project selection activity not only guarantees the successful completion of the Project itself, but improves resource productivity and maximizes the total impact for the business

15. Fundamentals of 6 Sigma Project Selection • Must be driven by leadership • Must be focused on opportunities that are real and important to the business • Usually based on either business financial or customer performance • Approach may be quantitative and scientific - is always logical • Involves people who are familiar with and accountable for process performance • Moves from broad and high-level to precise, narrow and specific • Ends with a Project charter

16. Improvement ideas may come from a variety of sources histories and observations existing Project pipelines or backlogs customer complaint /feedback systems risk assessment key competitive strategies Candidate improvement opportunities process “escapes” business improvement initiatives periodic process evaluations COPQ evaluations suggestion boxes Voice of the Customer systems

17. Key considerations in selecting Projects • What are the improvement objectives for our business? • What sources of improvement ideas are available? What additional considerations need to be made? • Which approaches to Project selection are best for us? How may this change over time? • What processes do we focus on? Why? • What criteria do we use to prioritize opportunities? • To what extent do we rely on data to drive Project selection? • Who should be involved in Project selection? How? • How do we translate improvement ideas into defined, specific and chartered Projects for Belts?

18. CHARTER Charter Consist • Problem statement • Goal of project ( from to in which time span) • Scope of project • Measurable ( CTQs) • Team and stakeholders ( BB/GBs/MBB/Effected parties) • Benefit from the project • Support required • Schedulefor project ( Milestones)

19. Problem Statement • Criteria for a good problem statement • It must… • be specific • be quantifiable (measurable) • state the effect/pain • It should not… • imply a cause • imply a solution

20. Problem Statement Criteria • Should not imply a cause— Avoid expressions such as “because of,” “due to,” etc. • Should not imply a solution— Avoid expressions such as “a lack of,” “need to,” etc.

21. Problem Statement Criteria • Be specific— Avoid terms which lend themselves to ambiguity, such as “quality,” “responsiveness,” “productivity,” etc. • Quantify the problem— State explicitly when, how much, how long, how often, and what direction (magnitude/trend). • State the effect/pain— states explicitly the effect the problem is having on the customer (how customers are affected or impacted).