Six Sigma 0 - Concepts

Six Sigma (6)
Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia
Six Sigma Introduction

Quality Management Brief History The origin of the name: Six Sigma
What does it means
Six Sigma RoadMaps

RoadMap : a map to get you where you want to go = list of sequential activities
Six Sigma Organizations

Activities must be supported by 2 main factors
competencies of the people Organization informal/formal
Quality Management Time Dimension

Jepang memulai konsep kualitas manajemen setelah kalah perang dengan AS di tahun 1945 (+60 years ago)
1980an, Produk Jepang mengagetkan karena berhasil mendominasi asia dan mulai menggerogoti amerika, karena kualitasnya yang sama dan harga lebih murah
Amerika mencoba untuk mencari tahu kenapa? Tetapi ada language barrier dan ketergantungan quick fix yang cukup besar
Statistical Quality Control Total Quality Management Six Sigma (+20 years ago)
Indonesia?
Japanese Investor introduce the concepts since 1980s
What is Six Sigma Six Sigma is a results-oriented, project focused approach to quality. Six Sigma is a way of measuring and setting targets for reductions in product or service defects that is directly connected to customer requirements Six Sigma Consists of:
Principles and Concepts Tools Basic and Advance Informal Organization Design
4 Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia
What is Six Sigma
The Real Story
The Real Story High Top Management Commitment The basic principals is the same
Speak with facts and figures Continuous effort and resources
It is a recipe for success, but not everybody can enjoy the meal Choose the right way for your company Use the Horse Sense
Six Sigma Overlapping Quality Tools

basic DPMO 7 tools of statistical 6 quality tools Qualitative Measurement Chart Tools SIPOC QFD advanced Hypothesis statistical tools Testing Six Sigma Tools Quality/Process Improvement Collection Tools
7 new tools of quality
Force Field Analysis
DOE
Conjoint Analysis

What does it means
Six Sigma RoadMaps

RoadMap : a map to get you wher you want to go = list of sequential activities

The Origin of the Name: Six Sigma
A parameter used in statistical models of the manufactured goods quality Six Sigma means six standard deviations from normal distributions
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Six Sigma
1 per 1000 0.0013 per 100 1 per million 0.04 per 10000
The old Third Sigma
Bayangkan Nyari Ketombe Dengan 2 tipe Sisir Rambut
The Sixth Sigma
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6 Sigma dan 3 Sigma

Sigma () is a measure of the statistical variation about an ideal or target value Dengan Sisir yang lebih rapat maka kita akan meminta dan mendorong kualitas yang lebih baik (Acceptable Window)
Target Target
Defects: 308,000 per million opportunities
Defects: 3.4 per million opportunities
2
Acceptable Window or Spec Limits
6
Acceptable Window or Spec Limits
2 Quality
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6 Quality
Doing the math

6 Sigma = 3.4 defects per million 5 Sigma = 230 defects per million 4 Sigma = 6,210 defects per million 3 Sigma = 66,800 defects per million 2 Sigma = 308,000 defects per million 1 Sigma = 690,000 defects per million DPMO = Defect Per Million Opportunities
3 = 1.5 misspelled word per page in a book 4 = 1 misspelled word in 30 pages in a book 5 = 1 misspelled word in a set of encyclopedias 6 = 1 misspelled word in all of the books in a small library
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Apa arti DPMO?

DPMO bukan = product reject
berarti hanya boleh 1 produk rusak dalam sekian ribu produk jadi (rusak=tidak sesuai dg harapan konsumen yang telah kita janjikan)
1 produk memiliki X kemungkinan kerusakan untuk dikatakan rusak

Misal sebuah novel bisa memiliki 3 kemungkinan kerusakan yg signifikan- halaman tidak lengkap, lem kurang kuat atau cetakan cover buruk 3 opportunities of defects per produk (This is the meaning of Opportunities dalam DPMO)
Apa arti DPMO?

Bukankan kemungkinan buku rusak tidak hanya 3 diatas?
Halaman terbalik, halaman lengket, kualitas potongan pinggir, motong menceng dsb
Sangat penting untuk mencari keseimbangan antara [usaha/biaya perbaikan] dengan [jumlah kemungkinan kerusakan]
Semakin tinggi opportunities maka semakin tinggi pula tuntutan kepada proses Semakin rendah maka semakin mungkin banyak produk yang mengecewakan konsumen
Pilihlah yang signifikan, gunakan kriteria = sering terjadi, penting (misalnya karena menjadi dasar proses selanjutnya) dan/atau yang menjadi perhatian khusus dari end-customer kita
Benefits of Fewer Defects

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Lower scrap costs Lower rework costs Shorter cycle time Lower warranty cost Fewer complaints Lower capital costs Higher productivity Higher customer satisfaction Higher Profit
The Normal Curve and Capability
Units of Measure
Area of Yield
Performance Limit
Probability of a Defect
Units of Measure
Units of Measure
Poor Process Capability

Very High Probability of Defects Very High Probability of Defects Very Low Probability of Defects
Excellent Process Capability

Very Low Probability of Defects
LSL
USL
LSL
USL
Low LowSigma Sigma

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High HighSigma Sigma

Process Capability Process Capability is a Six Sigma Concepts that address the long term views of a quality improvements
It is not enough to satisfy that you are within targets, but it is also important where the targets is
Jika anda mengambil data 50 kali dalam 1 hari atau 1 kali dalam 50 hari, kira-kira akan berbeda nggak?
Short Term Centered versus Long Term Shifted

Higher Defect Yield in Long Term Process Capability than Short Term Process Capability
SHORT TERM
Process Capability
Six Sigma Centered

.001 ppm
T
-6 +6
.001 ppm
LSL LONG TERM
USL Process Capability
Six Sigma Shifted 1.5

3.4 ppm
T
19
LSL
1.5
Akhmad Hidayatno akhmad@ie.ui.ac.id 4.5 USL Teknik Industri Universitas Indonesia
USL
Illustrasi Pengukuran Toleransi Ketebalan
Six Sigma Aims
The process is not capable

The process is not capable

The process is capable
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Cost of Poor Quality The American Society of Quality (ASQ) estimates 5.4 8.6% of sales is the cost of poor quality United Technology US$2 million Raytheon 20-30% of cost of quality which related to design
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How to measure Cost of Quality Formula

Hitung kejadian defects (loss of quality) yang terjadi dalam tenggang waktu tertentu (per day, minggu, bulan dst) Hitung Labor Cost untuk memperbaikinya Hitung Material Cost Variasi: Hitung Loss of Purchase from a Life Time Customer
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What does it means
Six Sigma RoadMaps


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What is the Six Sigma Roadmap? D.M.A.I.C, (Define, Measure, Analyze, Improve, Control) Provides a logical sequence for applying existing problem solving tools and concepts
However it is still based on PDCA
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Process and Sub-Process of Six Sigma DMAIC
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Road Map
Symptoms
M
Root Cause
C
Problem Solved
Real Problems
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Six Sigma Road Map

D
Develop charter Map the process
M
Collect baseline data on defects and possible cause Plot defect data over time & analyze for special causes Create & stratify frequency plots & do Pareto analysis Calculate process sigma Create detailed process maps
A
Develop focused problem statement
I
Create possible solutions for root causes
C
Develop & document standard practices Train teams
Explore potential Select solutions causes
Understand voice of the customer
Organize potential causes Collect data Use statistical methods to quantify cause & effect relationship
Develop plans Pilot plans Implement plans Measure results Evaluate benefits
Monitor performance Create process for updating procedures Summarize and communicate results Recommend future plans
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Tools in Define Phase

Affinity diagram Charter Communication plan Control charts Critical to Quality Characteristics Tree Data collection Pareto chart Run chart Process concept, (SIPOC) Review y = f(x)
Define project purpose and scope Obtain background information about the process and its customers
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Tools in Measure Phase

Control charts Data collection High level process map Detail level process map Histograms Preliminary fault tree analysis, (FTA) Measurement System Analysis, (MSA) Pareto chart Process sigma Run chart Taguchi loss function
Gather information about the current situation
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Tools in Analyze Phase

Brainstorming Cause and effect diagram Initial capability study Design of experiments Focused problem statement Histogram Hypothesis testing Scatter diagram Tree diagram
Identify root causes and confirm these with data
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Tools in Improve Phase

Project implementation timeline Brainstorming Control charts Failure Mode and Effects Analysis (FMEA) Histograms Pareto chart Prioritization matrix Process sigma Run chart
Develop, try out and implement solutions to address root causes Use data to evaluate solutions
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Tools in Control Phase

Standardize improvement of methods and processes in order to maintain gains in process performance Anticipate future improvements Identify and share lessons learned
Communication plan Control charts Control plan Final capability study PDCA cycle Run chart Six Sigma storyboard Process owner sign-off
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What does it means
Six Sigma RoadMaps


competencies of the people organization informal/formal
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Six Sigma Belts

3 belts based on Tools Understanding Capabilities and Leadership Experience Based on level of competence and expertise in understanding and applying related tools
Green belt basic analytical tools; works on less complex projects Black belt emphasis on application and analysis; works projects with help from Green belts Master Black belt understands application and statistical theory behind application; trains other belts; leads project reviews
Definition and competencies for each belt may vary by organization and training institutions
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Organizations
Executives
Own vision, direction, integration, results Lead change
Project Team Members

Part-time Project-specific
Champions
Project owner Implement solutions Black Belt managers
All employees
Understand vision Apply concepts
Green Belts
Part-time Help Black Belts
Master Black Belts
Black Belts
Full time Devote 50% - 100% of time to Black Belt activities Train and coach Facilitate and practice problem solving Black and Green Belts Train and coach Green Belts and project teams Statistical problem solving experts 37 Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia
Executive Leader Roles:

High Level Executive committed to Six Sigma Success Commitment : Time, Money and Other Resources Knowledgeable in Six Sigma Process Assign key individuals to the Champion/Sponsor Position.
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Champion/Sponsor Roles:
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High Level Executive Oversee the Black Belt positions Benchmark with other organizations Provide resources to complete the job Assist Black Belts to select projects selecting projects; identifying Black and Green Belt candidates; Set improvement targets Review the projects on regular basis and Remove any road blocks to programs success.
Master Black Belt Roles: Resource for the Black Belts-experts on the mathematical theory of statistical methods Experts on the Six Sigma process (Technical leaders of Six Sigma) Works with the Champion/Sponsor to select projects. Serve as instructors for Black & Green Belts; Provide ongoing coaching and support to project teams to assure the appropriate application of statistics; Provide assistance to Project Champions; Deploy Six Sigma program.
Black Belt Roles: Leaders of the Six Sigma process Solely dedicated to Six Sigma Program Oversee Green Belts Backbone of Six Sigma deployment; Highly qualified; Lead teams; Manage projects; Drive teams for solutions that work; Attack chronic problems; Responsible for bottom line results: Bring the project vision to reality
Green Belt Roles: Project Leaders Support the Black Belt to complete the project Assist in data collection, input; Analyse data using software; Prepare reports for management.
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What to Do Then 9 Appoint a Champion 9 Select a Cross-functional team 9 Develop quantifiable goals 9 Develop an implementation plan
9Establish a training program (Create Green Belts, Black Belts etc) 9Address data collection requirements and issues 9Develop a change control and maintenance program
9 Coordinate your road map

Closing Slides
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Six Sigma the limits? GE Americoms Telecommunication has reache 8.7 Sigma 8.7 Sigma means 99.9998% reliability
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Quality Dashboard Show the current progress of quality improvement Anyone can see it and contributed to the improvement Medium for communications, motivations and cooperation
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Quality Dashboard
Just like car dashboard, which gives you speed, distance and engines, indicator. How about Quality Dashboard?
Quality Dashboard
Improvement so far
Procedure currently developing

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Quality Dashboard Tips Choose carefully which info should be display, be SMART (Simple, Measurable, Actionable, Relevant, Timely) How often should be updated Different indicators for different department Use group agreement, not personal decision Be attractive to look
GEs Quality Dashboard Show the current progress of quality improvement Anyone can see it and contributed to the improvement Medium for communications, motivations and cooperation
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Six Sigma 0 - Concepts

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Six Sigma (6)

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Six Sigma Introduction

Six Sigma RoadMaps

Six Sigma Organizations

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Quality Management Time Dimension

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

What is Six Sigma

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

The Real Story

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Six Sigma Overlapping Quality Tools

7 new tools of quality

Force Field Analysis

Six Sigma Introduction

Six Sigma RoadMaps

Six Sigma Organizations

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

The Origin of the Name: Six Sigma

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

The old Third Sigma

Bayangkan Nyari Ketombe Dengan 2 tipe Sisir Rambut

The Sixth Sigma

6 Sigma dan 3 Sigma

Defects: 308,000 per million opportunities

Defects: 3.4 per million opportunities

Doing the math

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Apa arti DPMO?

1 produk memiliki X kemungkinan kerusakan untuk dikatakan rusak

Apa arti DPMO?

Benefits of Fewer Defects

The Normal Curve and Capability

Poor Process Capability

Excellent Process Capability

Low LowSigma Sigma

High HighSigma Sigma

Short Term Centered versus Long Term Shifted

Six Sigma Centered

LSL LONG TERM

USL Process Capability

Six Sigma Shifted 1.5

Akhmad Hidayatno akhmad@ie.ui.ac.id 4.5 USL Teknik Industri Universitas Indonesia

Illustrasi Pengukuran Toleransi Ketebalan

Six Sigma Aims

The process is not capable

Illustrasi Pengukuran Toleransi Ketebalan

The process is not capable

Illustrasi Pengukuran Toleransi Ketebalan

The process is capable

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

How to measure Cost of Quality Formula

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Six Sigma Introduction

Six Sigma RoadMaps

Six Sigma Organizations

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Process and Sub-Process of Six Sigma DMAIC

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia

Akhmad Hidayatno akhmad@ie.ui.ac.id Teknik Industri Universitas Indonesia