Six Sigma:

The Strategy for Performance Excellence

The
D
P
PLAN
C
CHECK
M
C I
D A
OF
St Louis October 2007
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About the Speaker
Gerisval Alves Pessoa
Master in Business Administration (FGV)
Quality Engineering Specialist (WAEMU) Chemical Industrial (College) Speci
alist TQC (Total Quality Control - Japan) Professor of Graduate and Postgradua
te Coordinator Graduate (FAMA) Lead Auditor ISO 9001 and 14001 Trainer A
uditor OHase 18 001 International TPM (Total Productivity Maintenance) Nationa
l Quality Award Examiner: Cycles 2000, 2001 and 2002 Master Quality Analyst (C
VRD) Responsible for the Six Sigma program in the Department of Logistics Oper
ations North (DILN) 22 years of professional experience
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1. Introduction
STRENGTH
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Why study PDCA and Management Tools
To ....
• Reduce inefficiencies
• • • • • Nonconformity, failures, errors, waste, rework
• Reduce costs • Improve the quality • Improve productivity • Improve efficiency
• Increased customer satisfaction • Increase profitability • Reduce cycle
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How to obtain these results?
Lead
Knowledge Management (Methods and Tools)
Manager (Responsible or process owner) Team
Knowledge Engineering (Process)
Green / Black Belts Guardian Method
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How to increase the knowledge management?
Increasing the analytical capacity of employees ....
• Using:
+
Method of Troubleshooting Tools for data analysis
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How to increase the knowledge management?
Dominating the information ....
UNIVERSE OF INFORMATION FACTS = DATA = Information Qualitative information numer
ical
UNIVERSE OF KNOWLEDGE Knowledge of current factors of the problem:
What?
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Who?
How?
Where?
How many?
When?
Why?
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How to increase the knowledge management?
Dominating the information ....
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Management System
5 years
STRATEGIC FORMULATION Political Action Objectives Management by Project Manageme
nt Guidelines
Management System
1 years
Annual goals
Management Improvement of Management of Innovation
SIX SIGMA
System Standardization
Routine Management of Budget Day by Day RESULTS
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Operation
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1 days
Improvement of Operation
Definition of Problem
PROCESS RESULTS
Problem is the undesirable result of a process
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Definition of Problem
PROCESS YOUR RESULTS
240
230
Index Complaints SAC (ppb)
TOTAL ISSUE FOR 2007 ISSUE META (120 ppb)
05
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2006 J F M A M J J A S O N D 2007
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Defining Meta
It is a goal to be achieved. Determinandose a value and a deadline for reaching
that goal a goal components: • Objective • Deadline management • Value • Example
:
• Reduce the rate of Railway Occurrences in EFC by 50% by December 2008.
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Setting Method
Method: word of Greek origin Method = Meta + Hodos (Path)
Goal
BETTER
Method
It is the path to a goal
Current Situation
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2. PDCA
STRENGTH
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The PDCA PDCA method is a method of management
The C
P D
Goal
Current Situation
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THE METO
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PDCA
Step 1 - Planning
The C
P
PLAN
D
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PDCA
Step 1 - Planning
The C
P
PLAN
D
THE Step 2 - Execution
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PDCA
Step 1 - Planning
The
P
PLAN
C
CHECK Step 3 - Verification
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D
OF
Step 2 - Execution
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PDCA
Step 4 - Corrective Action Standards Stage 1 - Planning
The
ACT
P
PLAN
C
CHECK
D
OF
Step 3 - Verification
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Step 2 - Execution
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X Effective Management Styles
IMPROVED MANAGEMENT
STYLE "A"
P
D
C
The
BETTER
STYLE "B"
Dt
TIME EMPLOYEE OF A JOB
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PDCA Process Management
Action
Compete in the process according to the results
Set goals
Plan
The C
P D
Determine the methods for achieving the goals
Educate and train Check the effects of work performed
Check
Run the job
Of
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PDCA Troubleshooting
Identifying problems is the ma r
Complete
Standardize
The C
P D
Check
To investigate the effects of work performed
Ob serv pr ob lem the air to
Action
Plan
ro isa al pr oblem An rar Launching the action plan
Implement the proposed actions
Of
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Solving the problem without PDCA
Cause Cause Fundamental Elementary
Fundamental Cause
Problem
Corrective action to remove the only symptom
Fundamental Cause
Problem Relapsed
Fundamental causes of the problem are not investigated
Same fundamental causes are not working again taken action to block the fundamen
tal causes of the problem
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5.3. What is Six Sigma Tools Main FORCE
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Six Sigma: Definition
• A process and a set of tools to increase profitability by focusing on reductio
n of variability resulting in a greater capacity for business. • A philosophy an
d methodology with a focus on reducing defects. • A defect management strategy h
ighly disciplined and quantitative, which aims to dramatically increase corporat
e profitability through the improvement of quality of products and processes and
increased customer satisfaction.
• Sigma (σ) i the eighteenth letter of the Greek alphabet. It i a mea ure of v
ariation. Review © 2001 Geri val Per on 25 174
Origin of Six Sigma Methodology
Developed by Motorola in the late 80
Indu trie that have adopted the methodology: • Motorola (1987) *
• Hewlett Packard • Texa In trument • General Electric • Allied Signal Multib
rá • Nokia • • Sony • Alcan • Votorantim • Ford • Dow Chemical • IBM
* Sale increa ed five fold, aving of around U.S. $ 14 billion and increa e in
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Hi tory of Six Sigma Methodology
General Electric, AlliedSignal Bra motor group ABB Motorola
87 88
Gain more than $ 20 million gain in 1999 made in 1999: U.S. $ 1.5 billion gain a
chieved until May 1998: U.S. $ 1.2 billion average gain of U.S. $ 890 million pe
r year over a period of two year .
Gain of $ 2.2 billion between the end of the 80 and early 90 .
Home of Six Sigma
89
90
91
Group Six Sigma Bra motor tart in Brazil
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Proce Excellence through Six Sigma Methodology
LSL
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USL
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A 3 Sigma Proce
Lo or delivery of defective
Output Change
Parameter Mea ured
LIE
LSE
. . . Produce 67 000 defect
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U ing Tool Methodology 6σ ...
... To reduce the variability. . .
Gain on Co t of Poor Quality Improvement in delivery
. . . To reduce defect and improve the product delivered to the cu tomer. ... (
3.4 PPM)
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LIE
LSE
6σ Why do we need?
Co t of Defect
In the Client
Co t-of-Warranty Admini trative Co t -Cu tomer Di ati fied-Lo Market
At the End of the Line Source
Minor Delay in Production
-Retrabalho/Refugo
-Increa ed Co t-Delay in Delivery In pection
Local Detection
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6σ x Fault
Sigma 2 3 4 Quality (%) 69.14630 93.33000 99.37900 Defect (PPM) 308 537 66 807
(View Hi tory) 6210 (current view) 233 3.4 (Indu try Overview)
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PPM - Part Per Million Revi ion 01
99.97600 99.99966
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Quality Level σ and Co t of Non-Quality
LEVEL 6 Sigma Sigma Sigma 5 4 3 Sigma Sigma Sigma 1 Sigma 2
Defect per million (ppm) 3.4 233 6210 66 807 308 537 690 000
NO COST QUALITY <1% 05-15% 15-25% 25-40% Not applicable Not applicable
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Current Standard and Standard Six Sigma
Four Sigma (99.38% a ) even hour of power outage per month 5000 incorrect urg
ical operation per week 3000 300 000 Travel cra he every fifteen minute for t
he upply of drinking water per day one error every 30 page
Six Sigma (99.99966% compliant) One hour of power outage every 34 year 1.7 inco
rrect urgical operation per week for every 300,000 Flaw One minute travel upp
ly of drinking water every even month . An error / all book of a mall library
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Example of Six Sigma Performance Scale
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4. Methodology for Analy i and 5. Key Tool FORCE Trouble hooting and 6σ
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Method U ed in Six Sigma
The C
P D
A B C D
C D I M A P
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PDCA: Change in Method
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Methodological tage
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Application of Six Sigma
• Marketing • Sale • Service • Export • Admini trative • Financial
Shopping / Import Human Re ource Legal Production / Manufacturing E-Bu ine In
formation Technology
Motorola, GE, Nokia, Gerdau, Belgo Mineira, Multibra , other
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What' New to Six Sigma?
• Six Sigma u e tati tical tool known for year in earch of defect removal i
n all bu ine proce e . • The approach and manner of implementation of the too
l are unique and more powerful.
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The Secret of Succe of Six Sigma
Succe of Six Sigma
$ $ $ - Direct mea urement of program benefit by increa ed company profitabilit
y DMAIC - Structured Method for achieving goal u ed in Six Sigma AA - High invo
lvement of top management
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Senior Management
Method (DMAIC / PDCA)
$ $ $
Methodology and Tool
• E tabli h the CTQ' of
client • Set project to be developed
• Internal data of a bu ine . Set • Re earch / interview with the client • Repo
rt financial data conte tant • QFD Brain torming • Analy i , co t benefit, map
proce e (macro) • Da hboard (array of project , goal and trategic indicator
) • Ba ic tati tic - Hi togram analy i • normal , Excel / Software • Stati t
ical Analy i • Operational definition of the mea urement y tem attribute • An
aly i of the mea urement y tem variable • Map proce , chart , map of rea oni
ng, Pareto, other
• Collect data on proce performance • Analy i of the mea urement y tem • Cal
culation of capability
2. Mea urement
• Survey of potential root cau e (X' ) of variation
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Methodology and Tool
• Identify the X'
fundamental (Critical) • Identify the X' influential (Noi e) • Take action on
the proce
• Controlling the few X'
• FMEA • Review • Graphic and other variation , tati tical oftware, Excel, e
tc. • Hypothe i te ting • Analy i of di per ion, te t and experiment
3. Analy i
• Brain torming, action plan 4. • Improvement Map optimized proce • Calculati
on of the new capability / confirmation of improvement • CEP - Stati tical proce
control • Procedure and work in truction • - checkli t • Analy i Critical
Control Plan • Da hboard • Procedure and work in truction
• Pa the key project for the owner of the proce
5. Control
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DMAIC x PDCA
• Define (P - Plan) proce e , quality characteri tic (client). • Mea ure (P -
Plan) to prepare the population and identify the current ituation. • Analyze (P
 - Plan) Opportunitie for improvement - gain . • Innovate (D - Do) Implement im
provement - de ign / rede ign. • Control (C - Check / A - Action) to organize a
nd y tematize monitoring.
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4- tep methodology for proce improvement
Mea ure
Characterize the proce
Evaluate
Under tand the proce
Control
Keep the new proce
Improve
Improve and verify the proce
Cycle for Performance Excellence
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Proce Da hboard
1. Li ten to "Voice of the Cu tomer"
Performance
Execution
2. Creating the Da hboard
CVRD
Title:
DIFN - Director of Ferrou North Sy tem MATRIX PROJECT, TARGETS AND INDICATORS
Ma ter Plan 2002 - 2004
SEARCH RESULT OF CLIMATE - (MINIMUM 70%) CUS TO CASH IRON ORE U.S. $ / t (-2%) P
RODUCTIVITY OF IRON ORE MARKET FOREIGN (+10%)
STANDINGS
No. ACCIDENTS CPT (ZERO ACCIDENT)
PRIORITY
Project Objective and Goal
EQUIPMENT RELIABILITY: MINING (+3%), TREATMENT AND IMPROVEMENT (+3%), RAIL (+3%)
, PORTS (+3%)
OBTAINING RESULTS OF OTHER ITEMS OF CONTROL 2003 2002 2004 2001
3. Ident. Prioritie
STAFF
Identify Need
4. Decide
Client
1. Project Maintainer (admini trative and operational)
0
?
Productivity No. Maintainer Graduate
2. Work-Out
0
?
No. X No. Deployed Project Propo ed Project / egment / year
3. Leader hip Training
0
?
% Recovery
4. Black Belt and Green Belt
0
?
No Problem Re olved No. Employee Trained
5. Cour e and Seminar
Project 6 Sigma DFSS Project Quick Action
6. Event and Mi ion
0
?
Climate Survey Re ult
METHOD
Number of Ca e in Six Sigma level MTBF MTBF Admini trative Proce e Operationa
l Proce e , Service and Tran action
7. Six Sigma
0
?
5. Communication Feedback Proce Da hboard Strategic Planning
CUSTOMER Area for Implementation Implementation i the key to changing the "Da
hboard"
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How to Implement Six Sigma
The program i conducted according to the equence below:
• Identification of key "gap " (earning opportunitie ) of the value chain of the
Company; • Identification of manager related to the e deficiencie and conduct
ing a work hop for management that they under tand the program, • After the Work
hop managerial manager hould e tabli h de ign (with clear goal ), ie, the ob
jective management, the value to be achieved and the deadline for completion of
work and identify candidate for Black Belt that they will lead the project (ea
ch manager choo e it candidate ba ed on recommendation of the profile ) • Th
e candidate will travel to Black Belt and each candidate will conduct three pro
ject . Manager hould be charged for the achievement of goal and completion of
project . The Black Belt work to manager and will be charged for thi .
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Training
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Sigma De ign
• Champion - enior management repre entative who mu t demon trate the company'
high commitment to the implementation proce . It i the ba ic role of top mana
gement to: define project aligned to trategic planning, defining the group (Bl
ack Belt / Green Belt), provide the nece ary re ource and collect the re ult ;
• Ma ter Black Belt - a tati tician with deep knowledge of the bu ine , whic
h provide internal con ulting to project leader , the Black Belt. Acting a a m
ultiplier, the MBB provide tati tical upport when the project pre ent techni
cal complication .
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Sigma De ign
• Black Belt - i the leader of major project within a given area in the compan
y. The BB i u ually an official with exten ive experience in the area in que ti
on, having gone through many function . Such training allow him to ee the ix
igma project in total. Employee with dedication, ie 100% of your time hould b
e devoted to the project he lead . • Green Belt - the GB member are multifunct
ional, with dedication to employee not fully pecialized in their ta k and are
trained in tati tical technique and a ociated with ix igma.
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Source Opportunitie High Impact
• Factory hidden, hidden office (do not add value), and
hidden market (generating revenue) • Quality co t high; • Source of wa te a
crap and warranty • Product with high volume , mall improvement generate grea
t impact; • In pection , te t and trial (which the cu tomer value?) • Inventor
y and logi tic ha alway great opportunitie • I ue that need to be re olved
to meet the operational plan.
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PROVIDED.
+
PROCEDURE
=
PRODUCT
MACHINERY MATERIAL +
+ +
PROCEDURE
+ +
MEASUREMENT
+
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Six Sigma work only with Rigor and Di cipline!
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Thank you! geri val@fama.br
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