Traditional Problem Solving

Define the REAL problem Generate alternative solutions Decide which alternative to use Implement the solution Evaluate to see if the problem was REALLY solved

The Downside of Traditional Problem Solving Methods

Solutions are only as good as the problem definition No way of ensuring the best solution was selected Consequences of alternative solutions not explored Resources for implementation not considered Evaluations are haphazard at best

Non-Traditional Opportunities
Start with the end in mind Be prepared to turn over rocks Encourage contrarian thinking Focus on customer wants Have a plan on how to get the end Use innovative tools
These opportunities are typically addressed in a Six Sigma Improvement Project

Six Sigma Is
Process Management
Focuses on customer requirements Identifies & uses critical data Reduces variation that leads to defects Eliminates waste

Process Improvement
Fixes a specific process related problem Takes advantage of team experience Uses statistical tools to remove ambiguity Implements controls in the revised process

History of Six Sigma

1986 1991 1995 2001 2005

Business Value Six Sigma

Motorola $15 billion in last 11 years GE saved $12 billion over five years Savannah River Site Savings > $90 Million

Process Improvement Starts With..

A process related problem. A situation where we are not capable of consistently meeting specified requirements Data which objectively quantifies the magnitude and nature of the problem A business justification for pursuing resolution of the problem (Return on Investment; cost, schedule, safety, etc.) A formally identified Process Improvement Project (PIP)

So Whats A Process?
A series of repeatable steps where inputs are modified to create outputs, and the outputs are used by a customer. Examples of non process problems
Behavioral issues (late to work, inattention to detail) Organizational issues (who reports to whom)

Six Sigma Objectives

The Vision: Drive organizations to design and produce products/services to Six Sigma Standards The Goal: Produce goods and services at a Six Sigma level. As your organization moves towards Six Sigma quality, you will
Eliminate defects Reduce production and development costs Reduce cycle times and inventory levels Simplify Business Processes (VA, NVA, BVA) Increase profit margins Improve customer satisfaction

The Strategy: Use a data driven structured approach to attack defects to improve the sigma level of your goods and services

Key Elements of a Process Improvement Project (PIP)

Problem Statement:

Provides a focus for the team Communicate significance of the problem (bottom line $$, schedule, etc)

Goal / Objective:
Establish process boundaries / scope Quantify expected performance improvement Expected timing

Metrics (Primary & Secondary) Team Members (Champion, MBB, BB & GB)

PIP Selection Checklist

Process problem vs organizational problem

Solution is not known, analysis required

Data exists to quantify and characterize

Process not in the midst of change

Process has strategic impact Significant ROI expected Management support for effecting change GB available to characterize process

Keys to Six Sigma Success

Strategic identification of projects (problems) Making business decisions based on data Empowering workforce to manage processes Real success (savings) JIT Training Dedicated analysts (BBs) Six Sigma trained process specialists (GBs)

Tribal Knowledge
Tribal knowledge is any unwritten information that is not commonly known by others within a company. This term is used most when referencing information that may need to be known by others in order to produce quality product or service. The information may be key to quality performance but it may also be totally incorrect. Unlike similar forms of artisan intelligence, tribal knowledge can be converted into company property. It is often a good source of test factors during improvement efforts.

EXAMPLES : TRIBAL KNOWLEDGE

Example 1: A measurement system was out of

control and the inspectors began fighting over what they believed to be the accurate gages. Gage R&R showed that 92% of the variation came from how the inspectors used the gage, not the gage itself.
Example 2: A product line was re-started after being

down for two years but the original operators had to be re-hired in order to produce product that worked.

The Six-Sigma Approach

Organizational Issue Organizational Issue Problem resolution Behaviour Decision-Making Traditional Approach Traditional Approach Fixing (Symptoms) Reactive Experience-Based Six Sigma Approach Preventing (Causes) Proactive Data Based Controlling

Process Adjustment
Supplier Selection Direction Design

Tweaking
Cost(Unit price) Seat of Pants Performance

Capability
Benchmarking Metrics Productivity

Chain of Command
Planning

Hierarchy
Short Term

Empowered teams
long Term

Way to maximise the Harvest (Shut Down the Hidden Factory)

World Class

Design for Manufacturing

DMAIC Foundations/Lean

Visual Workplace
5S Tribal Knowledge

Common Sense
Tools

The Support Structure

Champion Project Leader Black belt Green belt White belt Stakeholder Function Leader

Mentor

Team member

Team member

Team member

Team member

Team member