4. Customer Focus Meeting customer requirements Achieve complete customer satisfaction Measure level of achievement Customer is the ultimate judge Customer Centric Quality
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6. ISO 9000 Total Quality Management Robust Designs CMM Six Sigma Popular Quality Initiatives
7. What does our customer want from us? On Time Delivery Quality Reliability Competitive Product Six sigma - the most effective tool to drive customer benefits
12. Six Sigma: Changing Focus from Output to Process Y = f (X) Y Effect Dependent Symptom Output Monitor X 1 …X N Cause Independent Problem Input-Process Control Identifying and fixing root causes will help us obtain the desired output
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14. From Pockets of controls Spotty use of QI tools Ship & Fix Attitude Ignore cost of poor Qual. Function focused values mind set & practices Guess work in decisions Change the scene To Customer recognized quality at all levels Disciplined and consistent use of proven tools Do it right first time Calculate and communicate to all employees. Process focused values mind set & practices Measure and analyze objective data to help decision making.
15. Eighty-Five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and processes … Rather than the Employee. The role of Management is to change the process rather than badgering individuals to do better. So says Deming To
16. Target X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Every Human Activity Has Variability... Six Sigma Concept Understanding Variability & Customer Specification Is The Essence of Six Sigma Customer Specification defects
17. 6 Key Terms Concept Critical to Quality characteristics (CTQs) Unit Defect Defect Opportunities Definition Customer Performance req. of a product or service. The Item Produced Or Processed Any event that does not meet the specification of CTQ Any event that can be measured that provides a chance of not meeting a customer requirement.
18. DPMO - Defects Per Million Opportunities Order of Magnitude Sigma 3 Spelling 1.5 misspelled words per page in a book Money $2.7 million debt per $1 billion assets Time 3 1/2 months per century DPMO 66,807 4 1 misspelled word per 30 pages in a book $63000 debt per $1 billion assets 2 1/2 days per century 6,210 5 1 misspelled word in the set of encyclopedias $570 debt per $1 billion assets 30 minutes per century 233 6 1 misspelled word in all the books of a small library $2 debt per $1 billion assets 6 seconds per century 3.4
19. 6 Metric BenchMark Vision Philosophy Tool Method Goal Value Symbol
20. Leaders Team coaches Team leaders Team Members All Associates Champions Master Black Belt Black Belt Improvement Team Awareness Skills are differentiated for each audience Skill Levels
21. Design Design for six sigma Improvement DMAIC Management Process management Two Ways About it
30. What is A Charter? A Charter is A Document That Provides Purpose And Goals For An Improvement Team
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32. Problem And Goal Statements The Purpose Of The Problem Statement Is To Describe What Is Wrong The Goal Statement Then Defines The Team’s Improvement Objective
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35. SMART Problem and Goal Statements S pecific M easurable A ttainable R elevant T ime Bound
36. Poor Example Our customers are angry with us and late in paying their bill Better Example In the last 6 months 20% of our repeat customers are late (over 60 days) in paying our invoices. The current rate of late payments is up from 10% and represents 30% of our outstanding. This negatively affects our cash flow.
42. Voice Of The Customer Sample Comments/Data “ I’m Tired Of Having To Write A Check For This Loan Every Two Weeks” “ The Survey Shows 47% Of Customers Rate Our Response Time As ‘ Fair’ Or ‘Poor’ “ Why Don’t You Guys Get Your Act Together?!” “ The Phone Must Have Rung Six Times Before I Got An Answer” “ I’m Not That Satisfied With Your Service” How Do We Take Action On VOC Input?
43. Understanding Customer Needs Gather input on customer needs (Listen to the voice of the Customer) Analyze and translate VOC input into meaningful terms Define requirements for the processes, products or service Process for understanding needs
45. Definition Of A Process A Process Is A Collection Of Activities That Takes One Or More Kinds Of Input And Creates Output That Is Of Value To The Customer
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47. Business Process Mapping Requirements Requirements S I P O C Suppliers Inputs Process Outputs Customers Measures Measures Process Map
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49. Input, Process And Output Measures Input Measures Process Measures Output Measures The Key Quality And Delivery Requirements Placed On Your Suppliers Measures That Are Intended To Your Process. They Include Quality and Delivery Measures Important To Your Internal Customers As Well AS Waste And Cycle Time Measures. They Are Correlated To The Pertinent Output Measures Output Measures Are Measures Used To Determine How Well Customer Needs And Requirements Are Met
50. Quality Measurement There Are Two Types Of Measures Effectiveness Measures: The Degree To Which Customer Needs And Requirements Are Met And Exceeded Some Examples: Percent Defective Billing Accuracy Response Time Efficiency Measures: The Amount Of Resources Allocated In Meeting And Exceeding Customer Requirements Some Examples: Cost Per Transaction Time Per Activity Turnaround Time Amount Of Rework
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52. “ Data Defined” Raw Facts - Qualitative Or Quantitative -Obtained By Observing A Population, Product, Process Or Service
53. 5-Step Data Collection Process Clarify Data Collection Goals Develop Operational Definitions And Procedures Plan For Data Consistency And Stability Begin Data Collection Continue Improving Measurement Consistency
57. 5 Ms & 1 P P R O C E S S Machines Materials Methods Measurement Mother Nature People
58. Types Of Data Anything That Results From Being Measured On A Continuum Or Scale Example: Continuous measure (Time To process) Anything That Can Be Categorized Or Designated As Either/Or Examples: Male/Female Accept/Reject Off/On Yes/No Defect/No Defect Democrat/Republican Day Of Week (M/T/W/Th/F) Variable Or Continuous Attribute Or Discrete
62. Calculating Process Sigma Number Of Units Processed N = 500 Number Of Defects Made D = 57 Number Of Defect Opportunities Per Unit O = 3 Solve For Defects Per Million Opportunities D * 1000000 N * O 57 * 1000000 500 * 3 38,000 Looked up in Sigma Conversion Table 3.3
64. Tools of Analysis - Pareto Chart # Of Occurances # Of Days • • • • • •
65. Tools of Analysis - Run Charts Voltage Hour of Day • • • • • • • • • • • • • • • • • •
66. Tools of Analysis - Run Charts Voltage Hour of Day • • • • • • • • • • • • • • • • • •
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68. Cause & Effect Diagrams Effect Y Measurement Methods Machinery Mother Nature People Materials Potential Causes (Xs)
69. Value-Added Analysis What Constitutes Value-Added Work? 1. The Thing Passing Through The Process Is Physically Changed 2 The Customer Is Willing To Pay For It. 3. It Is Done Right The First Time
71. Road Map: Improve Generate Solutions Select Solutions Plan Implementation Generate Ideas Assumption Busting Synthesize Solutions Narrow List of Solutions Solution Criteria Validated Solution Piloting Project Planning Change Management Potential Problem Analysis
72. Improvement Targets Good Targets Include A Desired Performance Level And Point In Time Frame For Its Achievement All Targets Are Moving, What Is Good Enough Next Year Probably Will Not Be Good Enough The Following Year
73. DMAIC OR DFSS Define Improve Verify Design Analyze Measure Control Measure Analyze Does A Process Exist? Is Incr. Improvement Enough? Yes No Yes No
74. Scamper S = Substitute C = Combine A = Adapt M = Modify P = Put To Other Use E = Eliminate R = Rearrange
76. Control Institutionalize The Improvement And Implement Ongoing Monitoring Developed, Documented And Implemented An Ongoing Process Monitoring Plan Standardize The Process Procedures Documented Response Plan Developed And Deployed
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