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WHAT IS SIX SIGMA?
Six Sigma has evolved over the last two decades and
so has its definition. Six Sigma has literal, conceptual,
and practical definitions.
1. As a metric
2. As a methodology
3. As a management system
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Six Sigma as a Metric
The term "Sigma" is often used as a scale
for levels of "goodness" or quality. Using
this scale, "Six Sigma" equates to 3.4
defects per one million opportunities
(DPMO). Therefore, Six Sigma started as
a defect reduction effort in manufacturing
and was then applied to other business
processes for the same purpose.
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Six Sigma as a Metric
DEFECTS PER
MILLION QUALITY
SIGMAS
OPPORTUNITIES %
(DPMO)
1 691,463 31
2 308,538 69
3 66,807 93
4 6,210 99.38
5 233 99.977
6 3.4 99.9997 4
Six Sigma as a Methodology
Six Sigma is a business improvement methodology that
focuses an organization on:
Understanding and managing customer requirements
Aligning key business processes to achieve those requirements
Utilizing rigorous data analysis to minimize variation in those processes
Driving rapid and sustainable improvement to business processes
At the heart of the methodology is the DMAIC model for process
improvement. DMAIC is commonly used by Six Sigma project teams and is
an acronym for:
Define opportunity
Measure performance
Analyze opportunity
Improve performance
Control performance 5
Six Sigma as a Methodology
Define Control
Institutionalization
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Six Sigma as a Management System
When practiced as a management system, Six Sigma is a high
performance system for executing business strategy.
It provides the framework to prioritize resources for projects that will improve the
metrics, and it leverages leaders who will manage the efforts for rapid, sustainable,
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Six Sigma as a Management System
STRATEGY
STRATEGY FEEDBACK
VOICE
VOICE OF...
OF... RESULTS: Big Y’s
• •Market
Market BUSINESS Top-Level
• •Customer
Customer
OBJECTIVES Indicators
If new product • Employee
• Employee
or process (Dashboards)
• •Business
Business
DFSS (DMADV)
Fundamental Redesign
EXECUTION (PROCESS MANAGEMENT)
PROCESS
PROCESS PROCESS
D S PROCESS
PROCESS MAPS
MAPS CONTROL
SYSTEMS
R U PROCESSES
I P Sub Y’s
ALIGNMENT
V P TOOLS
E O CORE & ENABLING PROCESSES
S R SKILLS
Y1
T TRAINING
S y1
PROCESS IMPROVEMENT Flexible Problem Solving Models Projects
WORKOUT
SIX SIGMA
LEAN SIGMA
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS GE WORKOUT SIX SIGMA LEAN SIGMA
Quick Wins (DMAIC) (DMAIC +)
Accelerated Improvement Incremental Improvement Integrated Improvement
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Six Reasons Why Business Leaders Love Six Sigma?
1. Six Sigma impacts the bottom line
2. Six Sigma drives strategy execution
3. Six Sigma generates robust, flexible business processes
4. Six Sigma improves human performance across the
enterprise
5. Six Sigma is highly scalable
6. Six Sigma is a low risk investment
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Six Habits of Six Sigma Leaders
1. Delivering customer value (exhibit passion, listen actively,
communicate partnership)
2. Focusing on execution (result-driven, resource conscious,
process-oriented)
3. Making sound, data-driven decisions (critical thinking,
decisiveness, accountability)
4. Managing performance (set goals, track progress, manage
details)
5. Advocating breakthrough improvements (assertiveness,
influence, tenacity)
6. Supporting team-based implementations (manage teams,
reward teams)
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Six Tools Every SS BB/GB Loves
1. Quality Function Deployment (QFD)—helps to drive customer-focused
development across the design process
2. Cause and Effect (C&E) Matrix—helps to facilitate team decision making
3. Failure Modes and Effects Analysis (FMEA)—helps to identify and
address weaknesses in a product or process before they occur
4. Control Charts—helps to assess process stability
5. T-Student Test (t-test)—helps to validate test results using small sample size
6. Design of Experiments (DOE)—helps to make the most of valuable
resources Business
and/or Customer
Requirement 6
5
4
3
Defects Good
2
1
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Six Reason Why Six Sigma Fails?
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SIX SIGMA IMPLEMENTATION
AT PT MATTEL INDONESIA
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PT Mattel’s Vision: “A globally
competitive manufacturer of
premier toy brands through
continuous improvement”
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L PRACTICAL PROBLEM (PT Mattel’s Needs)
E
A S
N
STATISTICAL PROBLEM I
S X
U
STATISTICAL SOLUTION
P
P S
L
Y I
PRACTICAL SOLUTION
(MATTEL’S SMART OBJECTIVES) G
C
H
SMART = Specific, Measurable,
Attainable/Actionable,
M
A Result-oriented, Time-bound
A
I
N PT MATTEL’S VISION 16
PT Mattel’s COPIS IDENTIFICATION
Vision: A globally competitive manufacturer of premier toy brands through CI
SMART OBJECTIVES
1. To Increase Direct Labor Efficiency from ____% to ____%
2. To Reduce Scrap from _______ PPM to ______ PPM
3. To Improve Production Schedule Adherence from ______ % to ______ %
4. To Improve Daily Schedule Adherence from _____% to ______%
5. To Reduce Lot Buy Off from _____ PPM to ______ PPM
6. To Reduce Containment Audit from _______ PPM to ______ PPM
7. To Maintain Lost Day Incident Case at Zero Level (Always Zero Goal)
Customers Suppliers
Steps
How does Six Sigma Work?
#1
#2
#3 LEAN-SIX SIGMA PROJECTS
#4
etc
(PT MATTEL’S PROJECTS)
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Need more information?
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