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SIX SIGMA YELLOW BELT TRAINING
Content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Objectives of the training ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Often, problems are knots with many strands, and looking at those strands can make a problem seem different.”
Quality  is a state in which value entitlement is realized for the customer and provider in every aspect of the business relationship. Business Quality  is highest when the costs are at the absolute lowest for both the producer & consumer. Six Sigma  provides maximum value to companies in the forms of increased profits and maximum value to consumers with high-quality products and services at the lowest possible cost. Defect  is   any process output that does not meet customer specifications, or that could lead to creating an output that does not meet customer specifications.  Cost of Poor Quality (COPQ)  is the cost that would disappear if systems, processes, and products were perfect.  Before We Start…
Process & Process Capability ,[object Object],[object Object],[object Object],[object Object]
Six Sigma is a Business Philosophy Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Six Sigma Table Sigma level DPMO Percent defective Percentage yield C pk 1 691,462 69% 31% 0.33 2 308,538 31% 69% 0.67 3 66,807 6.7% 93.3% 1.00 4 6,210 0.62% 99.38% 1.33 5 233 0.023% 99.977% 1.67 6 3.4 0.00034% 99.99966% 2.00
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Six Sigma is a Competitive Tool History
What is Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Standard Deviation  1  T USL Upper Specification Limit (USL) Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (  ) Standard Deviation of the distribution (  ) 3  1 Sigma - 68% 2 Sigma - 95% 3 Sigma - 99.73 %    (X – X) 2 n-1    =
Target Customer Specification 1  2  3  A 3  process because 3 standard deviations fit between target and spec 3   0.27% Defects up-to 6.6 % Before What Is Six Sigma Reducing Variability Is The Key To Six Sigma  Target Customer Specification       After 6  No Defects!
Six Sigma -Tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Focus of Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],f (X) Y Would you control target or the shooter to get the Gold Medal?
How are we viewed by our customers? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customers look for our competitors The Need for Six Sigma
How do we want to be viewed by our customers? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Our Customers’ Best Supplier The Need for Six Sigma
Six Sigma - DMAIC Vs DMADV ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
6   DMAIC Process DMAIC  =  D efine,  M easure,  A nalyze,  I mprove and  C ontrol Develop Charter and Business Case Map Existing Process Collect Voice of the Customer Specify CTQs / Requirements Measure CTQs / Requirements Determine Process Stability Determine Process Capability Calculate Baseline Sigma Refine Problem Statement Identify Root Causes Quantify Root Causes Verify Root Causes Institutionalize Improvement Control Deployment Quantify Financial Results Present Final Project Results  and Lessons Learned Close Project Select Solution (Including Trade Studies, Cost/Benefit Analysis) Design Solution  Pilot Solution Implement Solution Define Measure Analyze Improve Control
Six Sigma COPIS Model C ustomers S uppliers O utputs I nputs P rocess Steps The  Voice of the Customer  (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs  and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with. From Concept to Market: the Voice of the Customer How does Six Sigma Work?
Manufacturing Engineering Marketing Software HR Finance ...  Can Be Applied To Every Business Function Where to apply….. 6 Sigma Methods Purchasing
Executive Champion Responsible for providing resources to BB/GBs Help in team selection Track progress of project Generally is supervisor of BB/GB. May help in selection of the project Sponsor Call for need of project (Project identification)  Beneficiary of the project  Validate current status and status after completion of project Allocates resources for the project Ensure compliance to controls established as a result of the project Project Leader (Black Belt / Green Belt) Lead the project Ask for resources required Call meeting of stakeholders and seek help from EC when stakeholders are not responding Ensure team involvement and sponsor’s buy in for solution Publish weekly progress report & call for help when required Roles and Responsibilities
Deployment Champion Mentor and guide BBs/GBs Provide technical help when BBs/GBs reach a roadblock Publish Summary report of all projects Raise alarm when things are not moving MBB Train BB/GB Assess the skills of BB/GB Certification of GBs and BBs after completion of projects Deployment of Global policies and procedures CFO/Finance Assess the saving potential at start of project Validate savings against the targets achieved at completion of project Roles and Responsibilities
Titles Yellow Belt (YB):   Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement).  Green Belt (GB):  Should be able to use DMAIC process with basic Six Sigma tools for project execution.  Lead Six Sigma projects in their functions. Black Belt (BB):  Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts.  Process experts in their functions. Master Black Belt (MBB):  Should be able to train Black Belts and Green Belts.  Mentors Black Belt projects.  Drivers of cultural change.  Process experts in any function.  Can develop new tools.
Example - Pizza Delivery Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1. How does the customer view Dabbawala’s Quality? 2. Who are the stakeholders - Customer and Process Improvement Team? 3. Which of his processes should he try to improve in order to improve Sales? The Define Phase Grow  revenues Improve Sales So what’s  new Get more orders Divisional directive Plant objectives Functional goals Employees
A. IDENTIFY PROJECT CTQs: A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer,  Delivery  is   Critical to the Quality   of Dabbawala’s service ( CTQ ).  Voice of Customer (VOC)  Affinity Diagram  CTQ Tree.  The Define Phase - Step A
B. DEVELOP TEAM CHARTER: The Business Case Why should the project be done Problem and Goal Statement Description of the problem/opportunity Roles and Responsibilities The team, expectations and responsibilities Stakeholder Analysis, TMAP, Gantt Chart The Define Phase - Step B
C. DEFINE PROJECT SCOPE: Identify the high level process to be improved Define boundaries of project SIPOC Stratification Analysis Contract Sheet The Define Phase - Step C
The 7 Basic Tools - 1 STRATIFICATION ANALYSIS : Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping
The Define Phase - Summary The Define phase is owned by the Project Sponsor. The three steps of the Define phase are: 1. Identify Project CTQ 2. Develop Team Charter 3. Define Project Scope VOC, Affinity Diagram,  CTQ Tree, Gantt Chart, SIPOC, Stakeholder Analysis, TMAP, Stratification Analysis Grow  revenues Widen  Customer Base Reduce variation in delivery time Improve Delivery process Divisional directive Plant objectives Functional goals Employees
A. IDENTIFY CTQ CHARACTERISTICS Translate the CTQ to a measurable output of the delivery process Delivery time can be measured in many ways: 1. No. of times the delivery person delivered during the  shipping window (Discrete measure) 2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure) 3. Actual  delivery time  as seen by customer (Continuous measure) Delivery time is the  Project Y . The Measure Phase - Step A
B. DEFINE PERFORMANCE STANDARDS: What are the customer’s requirements on Delivery time? What is the definition of a defect? 1. Capture the Target (mean) delivery time - On time 2. Get the allowable variation on Y - +/- 30 minutes VOC Competitive Benchmarking The Measure Phase - Step B Target Loss Y Loss     (Deviation) 2
LATE DELIVERY 15 30 45 15 30 45 0 LSL USL Visualize customer requirements Customer does not want  earlier  than this  The customer tolerance window is  30 minutes  on either side This is the target delivery time EARLY DELIVERY (MINUTES) Customer does not want  later   than this The Measure Phase - Step B
The Measure Phase - Step B Preparation for data collection: 1. The  Y  or the Delivery Process  Output 2. The  Xs  or the  Inputs  to the Delivery Process Generate a list of Xs Brainstorming  Process Map (PMAP) Failure Modes Effects Analysis (FMEA) Cause & Effect Diagram or Fishbone Quality Function Deployment (QFD) Prioritization Matrix Check-sheet
The 7 Basic Tools - 2 CHECK-SHEET (DATA COLLECTION FORM) Check-sheet  is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding. NO. OF LATE DELIVERIES Prepare to collect data on the Xs also !
The Measure Phase - Step C C. EVALUATE MEASUREMENT SYSTEM: CAUTION: Objects in mirror are closer than they appear Measurement system may introduce variation into data Actual process variation + measurement variation = data  Identify and remove contribution to variation from measurement system Ensure reliable data MSE, Gage R&R, Test – Re-test, Kappa Method, Intra-Class Correlation
The Measure Phase - Summary A data collection plan is done in the  Measure phase.  It sets the expectations for the project.  This phase is owned by the Project Leader.  The three steps of the Measure phase are: 1. Identify CTQ characteristic 2. Define Performance Standards 3. Evaluate Measurement System The list of tools available for the Measure phase are: Brainstorming, PMAP, FMEA, MSE, GR&R, C&E  Diagram or Fishbone, Quality Function  Deployment or QFD, Prioritization Matrix, Learn more about the  PMAP, FMEA  and  MSE  in the Six Sigma Green Belt Training.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Analyze Phase - Step A
The 7 Basic Tools - 3 HISTOGRAM The  Histogram  is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution.
The 7 Basic Tools - 3 CREATING A HISTOGRAM: Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early. 1. Subtract Target time for each data point from the Delivery time 2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line 3. Place each data point vertically in a bin according to its value 4. Draw a bar equal to the height of stacked up points -25 25 -15 -5 5 15
The Analyze Phase - Step A LATE DELIVERY 15 30 45 15 30 45 0 Measure the process output EARLY DELIVERY (MINUTES) NUMBER  OF DATA POINTS Dabbawala has an average delivery time (  ) 2 minutes late and a standard deviation (  ) of 10 minutes  
The Analyze Phase - Step A LATE DELIVERY 15 30 45 15 30 45 0 Measure the Process Output EARLY DELIVERY (MINUTES)   USL LSL Process standard deviation Customer tolerance Z = Z = 3 10 minutes 30 minutes Z =
The Analyze Phase - Step A  Process Capability 2 308,537 3   66,807 4   6,210 5   233 6   3.4 Higher Z implies lower defects Inspect in Quality Manufacture in Quality Design in Quality It is cost effective to Defects per Million  Opportunities
Sweet Fruit   Design for Processability Bulk of Fruit Process Characterization  and Optimization Low Hanging  Fruit Seven Basic Tools Ground Fruit Logic and Intuition 3    Wall, Beat Up Suppliers 4    Wall, Improve Processes 5    Wall, Improve Designs Mikel Harry, 1994 Getting the Competitive Edge
Do you know the Sigma capabilities of the following processes? U.S. Manufacturing industry average Japanese manufacturing industry average Flight fatality in airline industry Airline Baggage handling Doctor prescription writing Tax advice by Internal Revenue Service in U.S. 4.0 5.5 6.4 3.2 2.8 2.5 Sigma capability, Z Industry Benchmarks Six Sigma is a Metric
Center Process Reduce Spread The Analyze Phase - Step B Process Off Target Excessive Variation in Process Understand your Problem B. DEFINE PERFORMANCE OBJECTIVES Hypothesis testing   Target USL LSL
Quiz - Characterize Six Sigma is a A.  Statistical Quality Tool B.  Business Philosophy C.  U.S. Management style The goal of Six Sigma is to A. Reduce defects to 3.4 per million B. Improve products C. Reduce variation In the Pizza Delivery Service example, what is the CTQ? A. Lunch B. Time C. Delivery If a process is Six Sigma (Z=6), it implies  A. Process is 99.99% good B. Products are 99.99% defect free C. There are only 3.4 defects in a million opportunities What is the Y? A. Measurable Process Output B. Voice of the Customer C. Process Input Who gives the USL and LSL? A.  Management B.  Customer C.  Derived from the process data In the example, the Voice of the Customer is characterized by A. Delivery time B. No. of deliveries made C. Tolerance around the Target In the example, the delivery service is characterized by A. Mean delivery time B. Tolerance around the Target C. Mean & variation of the delivery time
C. IDENTIFY SOURCES OF VARIATION To find root causes or Xs Fishbone or C&E Diagram (Ishikawa) PMAP FMEA QFD Fishbone   (Ishikawa) is another of the 7 basic tools. It is also known as the  Cause & Effect Diagram . It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes. The Analyze Phase - Step C
Delivery Time MACHINE MOTHER NATURE MATERIALS MAN METHODS Poor dispatching Delivery person gets lost Delivery person does not show up Poor handling of large orders Run out of storage space on vehicles Weather Too many  sacks Develop a list of Xs that possibly affect Y The 7 Basic Tools - 4 Don’t know routes High turnover Get wrong information Did not understand labels No teamwork No training Unreliable bikes Delivery persons own junk Cant locate employees homes Not on std routes Did not understand labels Too few delivery persons Uneven distribution of delivery loads MEASUREMENT No money for repairs Too many orders per person Too few  delivery persons Large items difficult to carry in bus /bikes Sacks  too small Bus service unreliable in peak hours Too much traffic Parking space problem FISHBONE
A. SCREEN POTENTIAL CAUSES To find the  Vital Few Xs  and separate it from the  Trivial Many Pareto ANOVA (Analysis of Variance) Regression Chi-Square tests  Systematic data generation (if historical data is not sufficient) Design of Experiments (DOE) Statistical Analysis to identify Vital Few Xs The Improve Phase - Step A
The 7 Basic Tools -5 PARETO This is also called the Pareto Principle or the 80/20 rule and is used to identify the  Vital Few Xs. Label Traffic Parking Order Size Location Others Cut-off level to be decided by team consensus based on Process knowledge Resource availability
The Improve Phase - Step B 8. DISCOVER CAUSAL RELATIONSHIPS To find out effect of Xs on the Y X1 Y X2 Regression Scatter Diagram
The 7 Basic Tools - 6 SCATTER DIAGRAM A  Scatter Diagram  is a graph that  shows the relationship between  two numerical variables, X and Y NO. OF PIZZAS / DELIVERY PERSON DELIVERY TIME SPAN It is used to look for a cause and effect relationship between the two  Numerical variables. In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
C. ESTABLISH OPERATING TOLERANCES The Improve Phase - Step C xL xT xU USL LSL x y NO. OF PIZZAS PER DELIVERY PERSON DELIVERY TIME
A. VALIDATE MEASUREMENT SYSTEM ON X The Control Phase - Step A LSL USL Tolerance Ensure noise from measurement system on X is small compared to process variation  process  measurement MSE, G R&R Test - Retest, Kappa Method, Intra Class Correlation
B. ESTABLISH NEW PROCESS CAPABILITY The Control Phase - Step B LATE DELIVERY 15 30 45 15 30 45 0 EARLY DELIVERY (MINUTES) USL LSL Z = 4.5
C. IMPLEMENT PROCESS CONTROL A good Control Plan should be put in place to ensure sustained improvement. This may include: 1. Use of  Control Charts  to monitor Xs 2. Documentation of Control Plan 3. Update of process documents such as PFMEA 4. Error Proofing 5. Standardization The Control Phase - Step C
RUN CHART A   Run Chart  is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected The 7 Basic Tools - 7
D M A I C The DMAIC Steps and Deliverables A. Identify project CTQs Identify customers, customer CTQs and Business Case B. Develop Team Charter Problem statement, Project Scope,Team, Milestones C. Define Project Scope High Level Process Map connecting customers to process 1. Select CTQ characteristic  Identify measurable characteristic of CTQ (Y) 2. Define performance standards Confirm specification limits (requirements) for Y 3. Evaluate Measurement System Ensure measurement system is capable 4. Establish process capability Baseline the current process 5. Define performance objectives Understand statistical objective - reduce variation or shift means? 6. Identify sources of variation List significant causes (Xs) or factors 7. Screen potential causes Determine vital few Xs, which will be controlled 8.Discover variable relationship Find causal relationship and optimal solution 9. Establish operating tolerances Validate the relation and determine specs on Xs 10. Measurement System Evaluation on Xs Ensure X measurement is capable 11. Establish process capability Establish improved capability 12. Implement process control Document control plan It’s a common sense approach STEP DELIVERABLES
Attributes of a Six Sigma GB project 1.  Customer Focused : A Six Sigma GB project should address a customer CTQ  2.  Data Driven : In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions 3.  Variation reduction : Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation
DMAIC Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Success will be defined when our customers notice !
Quiz Characterize part consists of A.  Define and Measure B.  Define, Measure and Analyze C.  Define, Measure and part of Analyze Optimize part consists of A. Analyze, Improve and Control B. Improve and Control C. part of Analyze, Improve and Control In Six Sigma,  Xs are A. Unknown variables B. Excess variation C. Process Inputs Which of the following is used to list Xs?  A. DOE B. Fishbone C. Pareto The Pareto principle is A. Also called the 80/20 rule B. Used to identify the Vital Few C. Useful in the Analyze phase Which of the following tools is used to generate data? A.  Analysis of Variance (ANOVA) B.  DOE C.  Regression Which of the following cannot identify the Vital Few Xs? A. Analysis of Variance (ANOVA) B. DOE C. Regression A Six Sigma GB project has to A. Finish in 3 months B. Show dollar savings C. Address the variation issue
Total Quality Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
Six Sigma vs. TQM  TQM Terminology Six Sigma Improvement Terminology ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Management ,[object Object],[object Object],[object Object]
Quality Management System ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Benefits of a QMS ,[object Object],[object Object],[object Object],[object Object],[object Object]
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yellow belt training

  • 1. SIX SIGMA YELLOW BELT TRAINING
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  • 4. “ Often, problems are knots with many strands, and looking at those strands can make a problem seem different.”
  • 5. Quality is a state in which value entitlement is realized for the customer and provider in every aspect of the business relationship. Business Quality is highest when the costs are at the absolute lowest for both the producer & consumer. Six Sigma provides maximum value to companies in the forms of increased profits and maximum value to consumers with high-quality products and services at the lowest possible cost. Defect is any process output that does not meet customer specifications, or that could lead to creating an output that does not meet customer specifications. Cost of Poor Quality (COPQ) is the cost that would disappear if systems, processes, and products were perfect. Before We Start…
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  • 8. Six Sigma Table Sigma level DPMO Percent defective Percentage yield C pk 1 691,462 69% 31% 0.33 2 308,538 31% 69% 0.67 3 66,807 6.7% 93.3% 1.00 4 6,210 0.62% 99.38% 1.33 5 233 0.023% 99.977% 1.67 6 3.4 0.00034% 99.99966% 2.00
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  • 11. The Standard Deviation  1  T USL Upper Specification Limit (USL) Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (  ) Standard Deviation of the distribution (  ) 3  1 Sigma - 68% 2 Sigma - 95% 3 Sigma - 99.73 %  (X – X) 2 n-1  =
  • 12. Target Customer Specification 1  2  3  A 3  process because 3 standard deviations fit between target and spec 3   0.27% Defects up-to 6.6 % Before What Is Six Sigma Reducing Variability Is The Key To Six Sigma Target Customer Specification       After 6  No Defects!
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  • 18. 6  DMAIC Process DMAIC = D efine, M easure, A nalyze, I mprove and C ontrol Develop Charter and Business Case Map Existing Process Collect Voice of the Customer Specify CTQs / Requirements Measure CTQs / Requirements Determine Process Stability Determine Process Capability Calculate Baseline Sigma Refine Problem Statement Identify Root Causes Quantify Root Causes Verify Root Causes Institutionalize Improvement Control Deployment Quantify Financial Results Present Final Project Results and Lessons Learned Close Project Select Solution (Including Trade Studies, Cost/Benefit Analysis) Design Solution Pilot Solution Implement Solution Define Measure Analyze Improve Control
  • 19. Six Sigma COPIS Model C ustomers S uppliers O utputs I nputs P rocess Steps The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with. From Concept to Market: the Voice of the Customer How does Six Sigma Work?
  • 20. Manufacturing Engineering Marketing Software HR Finance ... Can Be Applied To Every Business Function Where to apply….. 6 Sigma Methods Purchasing
  • 21. Executive Champion Responsible for providing resources to BB/GBs Help in team selection Track progress of project Generally is supervisor of BB/GB. May help in selection of the project Sponsor Call for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of project Allocates resources for the project Ensure compliance to controls established as a result of the project Project Leader (Black Belt / Green Belt) Lead the project Ask for resources required Call meeting of stakeholders and seek help from EC when stakeholders are not responding Ensure team involvement and sponsor’s buy in for solution Publish weekly progress report & call for help when required Roles and Responsibilities
  • 22. Deployment Champion Mentor and guide BBs/GBs Provide technical help when BBs/GBs reach a roadblock Publish Summary report of all projects Raise alarm when things are not moving MBB Train BB/GB Assess the skills of BB/GB Certification of GBs and BBs after completion of projects Deployment of Global policies and procedures CFO/Finance Assess the saving potential at start of project Validate savings against the targets achieved at completion of project Roles and Responsibilities
  • 23. Titles Yellow Belt (YB): Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement). Green Belt (GB): Should be able to use DMAIC process with basic Six Sigma tools for project execution. Lead Six Sigma projects in their functions. Black Belt (BB): Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts. Process experts in their functions. Master Black Belt (MBB): Should be able to train Black Belts and Green Belts. Mentors Black Belt projects. Drivers of cultural change. Process experts in any function. Can develop new tools.
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  • 25. 1. How does the customer view Dabbawala’s Quality? 2. Who are the stakeholders - Customer and Process Improvement Team? 3. Which of his processes should he try to improve in order to improve Sales? The Define Phase Grow revenues Improve Sales So what’s new Get more orders Divisional directive Plant objectives Functional goals Employees
  • 26. A. IDENTIFY PROJECT CTQs: A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer, Delivery is Critical to the Quality of Dabbawala’s service ( CTQ ). Voice of Customer (VOC) Affinity Diagram CTQ Tree. The Define Phase - Step A
  • 27. B. DEVELOP TEAM CHARTER: The Business Case Why should the project be done Problem and Goal Statement Description of the problem/opportunity Roles and Responsibilities The team, expectations and responsibilities Stakeholder Analysis, TMAP, Gantt Chart The Define Phase - Step B
  • 28. C. DEFINE PROJECT SCOPE: Identify the high level process to be improved Define boundaries of project SIPOC Stratification Analysis Contract Sheet The Define Phase - Step C
  • 29. The 7 Basic Tools - 1 STRATIFICATION ANALYSIS : Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping
  • 30. The Define Phase - Summary The Define phase is owned by the Project Sponsor. The three steps of the Define phase are: 1. Identify Project CTQ 2. Develop Team Charter 3. Define Project Scope VOC, Affinity Diagram, CTQ Tree, Gantt Chart, SIPOC, Stakeholder Analysis, TMAP, Stratification Analysis Grow revenues Widen Customer Base Reduce variation in delivery time Improve Delivery process Divisional directive Plant objectives Functional goals Employees
  • 31. A. IDENTIFY CTQ CHARACTERISTICS Translate the CTQ to a measurable output of the delivery process Delivery time can be measured in many ways: 1. No. of times the delivery person delivered during the shipping window (Discrete measure) 2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure) 3. Actual delivery time as seen by customer (Continuous measure) Delivery time is the Project Y . The Measure Phase - Step A
  • 32. B. DEFINE PERFORMANCE STANDARDS: What are the customer’s requirements on Delivery time? What is the definition of a defect? 1. Capture the Target (mean) delivery time - On time 2. Get the allowable variation on Y - +/- 30 minutes VOC Competitive Benchmarking The Measure Phase - Step B Target Loss Y Loss  (Deviation) 2
  • 33. LATE DELIVERY 15 30 45 15 30 45 0 LSL USL Visualize customer requirements Customer does not want earlier than this The customer tolerance window is 30 minutes on either side This is the target delivery time EARLY DELIVERY (MINUTES) Customer does not want later than this The Measure Phase - Step B
  • 34. The Measure Phase - Step B Preparation for data collection: 1. The Y or the Delivery Process Output 2. The Xs or the Inputs to the Delivery Process Generate a list of Xs Brainstorming Process Map (PMAP) Failure Modes Effects Analysis (FMEA) Cause & Effect Diagram or Fishbone Quality Function Deployment (QFD) Prioritization Matrix Check-sheet
  • 35. The 7 Basic Tools - 2 CHECK-SHEET (DATA COLLECTION FORM) Check-sheet is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding. NO. OF LATE DELIVERIES Prepare to collect data on the Xs also !
  • 36. The Measure Phase - Step C C. EVALUATE MEASUREMENT SYSTEM: CAUTION: Objects in mirror are closer than they appear Measurement system may introduce variation into data Actual process variation + measurement variation = data Identify and remove contribution to variation from measurement system Ensure reliable data MSE, Gage R&R, Test – Re-test, Kappa Method, Intra-Class Correlation
  • 37. The Measure Phase - Summary A data collection plan is done in the Measure phase. It sets the expectations for the project. This phase is owned by the Project Leader. The three steps of the Measure phase are: 1. Identify CTQ characteristic 2. Define Performance Standards 3. Evaluate Measurement System The list of tools available for the Measure phase are: Brainstorming, PMAP, FMEA, MSE, GR&R, C&E Diagram or Fishbone, Quality Function Deployment or QFD, Prioritization Matrix, Learn more about the PMAP, FMEA and MSE in the Six Sigma Green Belt Training.
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  • 39. The 7 Basic Tools - 3 HISTOGRAM The Histogram is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution.
  • 40. The 7 Basic Tools - 3 CREATING A HISTOGRAM: Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early. 1. Subtract Target time for each data point from the Delivery time 2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line 3. Place each data point vertically in a bin according to its value 4. Draw a bar equal to the height of stacked up points -25 25 -15 -5 5 15
  • 41. The Analyze Phase - Step A LATE DELIVERY 15 30 45 15 30 45 0 Measure the process output EARLY DELIVERY (MINUTES) NUMBER OF DATA POINTS Dabbawala has an average delivery time (  ) 2 minutes late and a standard deviation (  ) of 10 minutes  
  • 42. The Analyze Phase - Step A LATE DELIVERY 15 30 45 15 30 45 0 Measure the Process Output EARLY DELIVERY (MINUTES)   USL LSL Process standard deviation Customer tolerance Z = Z = 3 10 minutes 30 minutes Z =
  • 43. The Analyze Phase - Step A Process Capability 2 308,537 3 66,807 4 6,210 5 233 6 3.4 Higher Z implies lower defects Inspect in Quality Manufacture in Quality Design in Quality It is cost effective to Defects per Million Opportunities
  • 44. Sweet Fruit Design for Processability Bulk of Fruit Process Characterization and Optimization Low Hanging Fruit Seven Basic Tools Ground Fruit Logic and Intuition 3  Wall, Beat Up Suppliers 4  Wall, Improve Processes 5  Wall, Improve Designs Mikel Harry, 1994 Getting the Competitive Edge
  • 45. Do you know the Sigma capabilities of the following processes? U.S. Manufacturing industry average Japanese manufacturing industry average Flight fatality in airline industry Airline Baggage handling Doctor prescription writing Tax advice by Internal Revenue Service in U.S. 4.0 5.5 6.4 3.2 2.8 2.5 Sigma capability, Z Industry Benchmarks Six Sigma is a Metric
  • 46. Center Process Reduce Spread The Analyze Phase - Step B Process Off Target Excessive Variation in Process Understand your Problem B. DEFINE PERFORMANCE OBJECTIVES Hypothesis testing Target USL LSL
  • 47. Quiz - Characterize Six Sigma is a A. Statistical Quality Tool B. Business Philosophy C. U.S. Management style The goal of Six Sigma is to A. Reduce defects to 3.4 per million B. Improve products C. Reduce variation In the Pizza Delivery Service example, what is the CTQ? A. Lunch B. Time C. Delivery If a process is Six Sigma (Z=6), it implies A. Process is 99.99% good B. Products are 99.99% defect free C. There are only 3.4 defects in a million opportunities What is the Y? A. Measurable Process Output B. Voice of the Customer C. Process Input Who gives the USL and LSL? A. Management B. Customer C. Derived from the process data In the example, the Voice of the Customer is characterized by A. Delivery time B. No. of deliveries made C. Tolerance around the Target In the example, the delivery service is characterized by A. Mean delivery time B. Tolerance around the Target C. Mean & variation of the delivery time
  • 48. C. IDENTIFY SOURCES OF VARIATION To find root causes or Xs Fishbone or C&E Diagram (Ishikawa) PMAP FMEA QFD Fishbone (Ishikawa) is another of the 7 basic tools. It is also known as the Cause & Effect Diagram . It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes. The Analyze Phase - Step C
  • 49. Delivery Time MACHINE MOTHER NATURE MATERIALS MAN METHODS Poor dispatching Delivery person gets lost Delivery person does not show up Poor handling of large orders Run out of storage space on vehicles Weather Too many sacks Develop a list of Xs that possibly affect Y The 7 Basic Tools - 4 Don’t know routes High turnover Get wrong information Did not understand labels No teamwork No training Unreliable bikes Delivery persons own junk Cant locate employees homes Not on std routes Did not understand labels Too few delivery persons Uneven distribution of delivery loads MEASUREMENT No money for repairs Too many orders per person Too few delivery persons Large items difficult to carry in bus /bikes Sacks too small Bus service unreliable in peak hours Too much traffic Parking space problem FISHBONE
  • 50. A. SCREEN POTENTIAL CAUSES To find the Vital Few Xs and separate it from the Trivial Many Pareto ANOVA (Analysis of Variance) Regression Chi-Square tests Systematic data generation (if historical data is not sufficient) Design of Experiments (DOE) Statistical Analysis to identify Vital Few Xs The Improve Phase - Step A
  • 51. The 7 Basic Tools -5 PARETO This is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs. Label Traffic Parking Order Size Location Others Cut-off level to be decided by team consensus based on Process knowledge Resource availability
  • 52. The Improve Phase - Step B 8. DISCOVER CAUSAL RELATIONSHIPS To find out effect of Xs on the Y X1 Y X2 Regression Scatter Diagram
  • 53. The 7 Basic Tools - 6 SCATTER DIAGRAM A Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y NO. OF PIZZAS / DELIVERY PERSON DELIVERY TIME SPAN It is used to look for a cause and effect relationship between the two Numerical variables. In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
  • 54. C. ESTABLISH OPERATING TOLERANCES The Improve Phase - Step C xL xT xU USL LSL x y NO. OF PIZZAS PER DELIVERY PERSON DELIVERY TIME
  • 55. A. VALIDATE MEASUREMENT SYSTEM ON X The Control Phase - Step A LSL USL Tolerance Ensure noise from measurement system on X is small compared to process variation  process  measurement MSE, G R&R Test - Retest, Kappa Method, Intra Class Correlation
  • 56. B. ESTABLISH NEW PROCESS CAPABILITY The Control Phase - Step B LATE DELIVERY 15 30 45 15 30 45 0 EARLY DELIVERY (MINUTES) USL LSL Z = 4.5
  • 57. C. IMPLEMENT PROCESS CONTROL A good Control Plan should be put in place to ensure sustained improvement. This may include: 1. Use of Control Charts to monitor Xs 2. Documentation of Control Plan 3. Update of process documents such as PFMEA 4. Error Proofing 5. Standardization The Control Phase - Step C
  • 58. RUN CHART A Run Chart is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected The 7 Basic Tools - 7
  • 59. D M A I C The DMAIC Steps and Deliverables A. Identify project CTQs Identify customers, customer CTQs and Business Case B. Develop Team Charter Problem statement, Project Scope,Team, Milestones C. Define Project Scope High Level Process Map connecting customers to process 1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y) 2. Define performance standards Confirm specification limits (requirements) for Y 3. Evaluate Measurement System Ensure measurement system is capable 4. Establish process capability Baseline the current process 5. Define performance objectives Understand statistical objective - reduce variation or shift means? 6. Identify sources of variation List significant causes (Xs) or factors 7. Screen potential causes Determine vital few Xs, which will be controlled 8.Discover variable relationship Find causal relationship and optimal solution 9. Establish operating tolerances Validate the relation and determine specs on Xs 10. Measurement System Evaluation on Xs Ensure X measurement is capable 11. Establish process capability Establish improved capability 12. Implement process control Document control plan It’s a common sense approach STEP DELIVERABLES
  • 60. Attributes of a Six Sigma GB project 1. Customer Focused : A Six Sigma GB project should address a customer CTQ 2. Data Driven : In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions 3. Variation reduction : Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation
  • 61.
  • 62. Quiz Characterize part consists of A. Define and Measure B. Define, Measure and Analyze C. Define, Measure and part of Analyze Optimize part consists of A. Analyze, Improve and Control B. Improve and Control C. part of Analyze, Improve and Control In Six Sigma, Xs are A. Unknown variables B. Excess variation C. Process Inputs Which of the following is used to list Xs? A. DOE B. Fishbone C. Pareto The Pareto principle is A. Also called the 80/20 rule B. Used to identify the Vital Few C. Useful in the Analyze phase Which of the following tools is used to generate data? A. Analysis of Variance (ANOVA) B. DOE C. Regression Which of the following cannot identify the Vital Few Xs? A. Analysis of Variance (ANOVA) B. DOE C. Regression A Six Sigma GB project has to A. Finish in 3 months B. Show dollar savings C. Address the variation issue
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Notes de l'éditeur

  1. Instructor note: Explain the philosophy: Six Sigma is a Business Philosophy of focussing on continuously improving processes and reducing risks by getting complete Stakeholder involvement.
  2. Six Sigma is basically an American name given to an essentially Japanese best practice. Six Sigma is an attempt to simulate the Japanese work culture. Ever since Jack Welch announced to Wall Street in 2000 that Six Sigma was one of the drivers for their sustained double digit earnings and growth throughout the last decade, Wall Street analysts’ expectations from companies on Six Sigma has been high. The Malcolm Baldrige National Quality Award is an annual award that recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the only formal recognition of the performance excellence of U.S. organizations given by the President of the United State
  3. 10
  4. 4 4 3 Six Sigma is a problem solving methodology using statistical techniques to Gather, Examine, Modify and Sustain quality improvements. Each project follows the same 4 steps, with the ultimate goal being to raise a process’s sigma level, thus reducing defects. The graph explains what a sigma is and shows why a 2 sigma process has more defects than a 6 sigma process.
  5. Instructor Note:
  6. 7
  7. There are three levels of competencies of Six Sigma. The Green Belt or GB should be able to use DMAIC process with basic Six Sigma tools for project execution. This person Leads Six Sigma projects in their functions. The Black Belt or BB should be able to use advanced tools in projects and mentor GBs on Six Sigma techniques and tools. This person should Define Six Sigma projects and lead project teams and are process experts in their functions. Master Black Belt or MBB should be able to train Black Belts as well as Green Belts and Mentor Black Belt projects. They are the drivers of cultural change and should be able to mentor BBs across functions. They should be able to develop new tools. Champions are Business leaders who provide resources and champion the Six Sigma implementation in a business unit
  8. Note to instructor: Instead of reading the entire text, let the audience read it and then ask - Is this situation familiar to you? There are two parts to the problem. Internal and external. The internal part refers to comapany’s processes such as Order processing, Delivery, Inventory management, Training, Cooking etc. These are what Mr. Dabbawala has control over. The external part is the market factors such as competition. This is what Mr. Dabbawala does not have control over. Ask: Which part - internal or external - can Dabbawala focus on to improve sales? Also, qualify that while it is difficult to explain the entire Six Sigma process clearly without using specific data, this example will be used to highlight certain key characteristics of the Six Sigma process namely: 1. Problem scoping 2. The need for understanding and improving process capability 3. Data collection on Xs also
  9. Instructor note: Consider the flowing down of the Goals and objectives in the same example. Emphasize the lack of Customer focus and clarity of objectives at the lower level in this kind of flow down Ask: What does the Sponsor (Dabbawala) have to do to ensure proper focus in the problem definition (to improve sales). Click and reveal the Six Sigma define deliverables and explain the difference in terms of 1. What does the customer want 2. Getting the right team - not always the Sales team’s job 3. Identifying the process which is connected to the output (customer requirement)
  10. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor , identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  11. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor , identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  12. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor , identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  13. Refer back to the earlier flowdown of Divisional Goals and Objectives and present the Six Sigma flowdown. Emphasize on 1. Tying business goals to customer CTQs 2. Identification of process at the functional level 3. Clarity at the employee level
  14. Instructor Note: Stress the need for identifying a continuous form of measurement for the CTQ. Also the need for identifying a measure that would reflect the customer’s concerns.
  15. Instructor notes: Stress on the need to get the allowable variation and also that it is imperative to aim for the target always. Mention Taguchi’s definition of Quality with respect to deviation from the target. "The quality of a product is the (minimum) loss imparted by the product to the society from the time the product is shipped." - Dr. Genichi Taguchi -
  16. 10 Instructor notes: The tolerance around a target are the required Performance Standards. The customer can tolerate a variation in delivery time of 30 minutes on either side since lunch time is one hour. The tolerance at the USL and LSL need not be the same. Sometimes the customer specifies a limit only on one side.
  17. The Measure phase is also when the project team leader prepares for data collection.
  18. Instructor note: Emphasize the need for data collection on Ys as well as Xs. The checksheet can be a tool to convey what Xs to collect data on and in what form.
  19. Instructor Notes: Unlike the rear view mirror, in processes, we can never look back to see the real object - or the true data. We can however find out the image in the mirror (observed data) and the distortion introduced by the mirror (gage error).
  20. Instructor note: List the tools and explain which are graphical tools and which are analytical tools and stress on the use of both of them
  21. Instructor Note: Have the class do the calculations for the delivery time differences between target and actual delivered time. Write it on the board. Have them count the number of points in each class interval.
  22. Instructor note: Spend time on using the data from previous page to build this histogram.
  23. 10 Instructor note: Now you have the following two pieces of information: 1. The customer requirements characterized by the Tolerance 2. Dabbawala’s delivery process performance characterized by the mean (  ) and the standard deviation(  ). The mean is a measure of the location of the data while the standard deviation is a measure of the process variation .
  24. 10 Instructor note: Use this slide to explain the characteristics of the normal distribution. 67.3% of the area under the curve lies within in +/- 1sigma of the target, 95% within +/- 2 sigma, 99.7% within +/- 3 sigma and so on. Emphasize how even though all the sample data lies within the customer tolerance, there is still a finite chance of Dabbawala making a defect and hence the need to use distributions - to predict population behavior from sample data.
  25. Instructor Note: Stress on the Cost of Achieving 6 Sigma Quality by various routes. Inspection can be a cost effective way of achieving Quality for processes which are upto 3 Sigma capable. For more capable processes (more than 3 Sigma), Quality has to be Manufactured in (improve processes). For processes that are more than 5 Sigma capable, improving processes is also an expensive way to achieve 6 Sigma Quality. Then Quality has to be Designed in - DFSS.
  26. 20 Instructor note: Example: Note that Delphi (Automobile Supplier) manufacturing processes are designed for only 4 Sigma. Their traditional methods of beating the supplier can only take them to a certain limit Companies like Toyota, GE, Honeywell design all their processes for 6 Sigma and that is why they are ahead of competition. Give examples: 1. Toyota has been leading the J.D.Power survey for two decades 2. GE’s DFSS products such as the GE115 aircraft engine, Ctscan etc. are 3 - 5 years ahead of competition. 3. GE Power Systems delivery consistency has resulted in order booked for the next 4 years.
  27. Instructor note: Emphasize the applicability of the Sigma capability as a metric to any process. Also tie these numbers to Japanese reputation for Quality!
  28. Instructor note: Mention that this is where the Characterize part is over - Now you understand the problem. Give examples of lack of problem understanding in previous projects that you are familiar with. Stress the difference between the two objectives: 1. Reduce variation implies better control over the Xs 2. Shift the mean towards target implies changing the current X settings (technology change)
  29. Instructor note: Remind that now is where the data collection plan is put into practice. Refer to PMAP, FMEA and take the opportunity to explain the Fishbone.
  30. Instructor note: The fishbone is a tool that is used to identify the various possible causes of a problem. It is done in a Brainstorming session by a cross functional team comprising of all the stakeholders who are knowledgeable about the process. A fishbone done individually is useless - it captures only one person’s thoughts which may not be exahaustive. Note that this is a series of 5 Why Analysis. In the lunch delivery example, some Xs have been listed. Of course this is not the exhaustive list since this is an example done by people who are experts only at eating lunch and not at lunch delivery. Six Sigma is all about putting more rigor into problem solving by getting a cross functional team to participate on information synthesis and collective agreement on decision making. This is the Business Philosophy - Getting the Stakeholders involved all the time
  31. Instructor note: Remind the class of the qualifier in the beginning - that it is difficult to explain all the tools. The problem resolution is more statistical and we will only mention the tools that will be taught later. Also, tell about when the DOE is useful - When all data on Xs and corresponding Ys are not available or when data generation is prohibitive.
  32. Instructor note: Although the Pareto is shown here, it can be useful in earlier or later part of the project also.
  33. Instructor note: Talk about how this deliverable means identifying “quantitatively” the sources of variation. It could be a Y=F(X) relationship or just the results of the ANOVA which says 80% of the Y variation is caused by X1, X2 and their interaction etc.
  34. Instructor note: Touch upon the two objectives identified in Step no. 5 -shifting means and reducing variation and how this deliverable is interpreted accordingly 1. Shifting means implies changing the levels of the Xs (redesign or new technology) 2. Reducing variation implies tightening tolerances on the Xs (better control) Explain how the use of discrete data on the Xs makes it difficult to achieve better control (as in this example in some of the Xs)
  35. Instructor note: Emphasize how the Control phase (as in the Define phase), the people part (as opposed to the data part) of the project gains significance again. Control is about following processes.
  36. Instructor: Encourage participants to come up with their own interpretations of each of the deliverable in their projects