Introduction to Six Sigma 3rd May 2008

Does This Sound Familiar?

The Quality Imperative

Its the Customer, Stupid!

The Six Sigma Philosophy

Business is driven by Processes Customers hate variation in process output The variation in output is caused by variation in inputs and in process deployment If we can control the variation in inputs and process, we can control the variation in output

Y=

f(X)

CONTROL Xs TO CONTROL Y
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The Six Sigma Approach

Practical Problem
Traditional Approach

Statistical Problem Statistical Solution

Statistical Approach to Problem Solving
Systematic Provides a Structure Data Driven

Practical Solution

Focused on Statistically Significant Root Causes & Solutions

Customer Focused . . .Bottom Line Driven

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Statistical Objective of Six Sigma

Process Off Target
Target

Excessive Variation
Target
USL Upper Specification limit LSL Lower Specification Limit Defects

LSL

USL

LSL

USL

Center Process

Reduce Spread
Target

Center the Process, and Reduce the Variation

LSL USL
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Two Meanings of Sigma . . .

Generally Sigma is used to

designate the distribution or spread (standard deviation) about the mean (average) of any process or procedure.

PPM*

308,537 66,807 6,210

2s 3s 4s 5s 6s
Process Capability

For a business or manufacturing process, the Sigma Capability (Z-value) is

a metric that indicates how well the process is performing.

233
3.4
Defects per Million Opportunities
*PPM: Parts Per Million

As Defects Go Down . . .

Z
. . . Sigma Capability Goes Up

A Near Perfect Quality Goal

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Getting a Sense of Six Sigma Quality

The Classical View of Quality
99% Good (3.8s) 20,000 lost articles of mail per hour ~15 minutes each day of unsafe drinking water 5,000 incorrect surgical operations per week 2 short or long landings at most major airports daily 200,000 wrong drug prescriptions each year 7 hours without electricity each month

The Six Sigma View of Quality

99.99966% Good (6s) 7 lost articles of mail per hour 1 minute every 7 months of unsafe drinking water 1.7 incorrect surgical operations per week 1 short or long landing at most major airports every 5 years 68 wrong drug prescriptions each year 1 hour without electricity every 34 years
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So, What is Six Sigma? Is

A focus on customer needs A method for making data driven decisions A focus on reducing variability A disciplined approach for designing products & processes A prediction of product quality during design

Is not
An end in itself A replacement for engineering, scientific or process knowledge Applicable to every problem in its entirety A set of tools only; it is also a methodology and a cultural change

DMAIC and DFSS are the vehicles for delivering Six Sigma
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Key Six Sigma Terms

CTQ Critical-to-Quality characteristics. An attribute important to the customer. A Y Response.

Opportunity Any measurable event that provides a chance of not meeting specification limits of a CTQ. Specification Range in variation acceptable to the Limit Defect DPMO Sigma Capability (Z-value) customer (lower and upper) Anything that results in customer dissatisfaction. Anything that results in a non-conformance. Defects Per Million Opportunities. The probability of defect, a measure of process capability, measured in (Z-value) units of standard deviations.
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The DMAIC Framework

Define
What is important to customer?

Measure

How is the process performing? What does it look / feel like to the customer? How good is the data (gage R&R)?

Analyze

What are the most important causes of the defects & variation?

Define the Y Define the Y

Measure the Y

Find & Measure the Xs

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Control
How can we maintain the improvements?

4
Improve
How do we remove the causes of the defects & variation?

Control the Xs So Customer Never Sees Variation in the Y

Improve the Xs

Y = f(X)

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The 12 + 3 Step DMAIC Strategy

Step A:- Identify Project CTQ-Big Y Step B:- Define Team Charter Step C:- Wing to Wing Process Map Step 1:- Select CTQ CharacteristicProject y Step 2:- Define Performance Standard Step 3:- Validate Measurement system Step 4:- Establish Process Capability Step 5:- Define Performance Objectives Step 6:- Identify Variation Sources Step 7:- Screen Potential Causes Step 8:- Discover Variable Relationships Step 9:- Establishing Operating Tolerances Step 10:- Validate X Measurement Systems Step 11:- Determine Process Capability Step 12:- Implement Process Control
What is important to the Customer Why do the Project Who is the Customer What do I want to Improve? Whats the best way to measure? Can I trust the output data? How good am I today? How good do I need to be What factors make a difference

Whats at the Root of the Problem? How can I predict the Output? How tight does the control have to be?

Can I trust the in-process data? Have I reached my goal? How can I sustain the improvement?
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Knowing What to Measure An Introduction to BPMS

You cannot improve what you cannot measure You cannot measure if you dont know WHAT to measure Business Process Management System (BPMS) is a framework to Identify the relevant input, process and output metrics Develop a systematic measurement plan free of Gauge errors Collect, publish and review the metrics at regular intervals to identify improvement needs

Not just a set of Dashboards / Process Maps, but a Structured Methodology for Sustainable Process Performance

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Three Phases of BPMS Deployment

Aligning Process Goals with Key Customer Requirements

1
Create Process Mission

2
Document Process

3
Document CTQs

4
ID Process Measures

5
Create PM System

6
Data Collection Plan

7
Performance Monitoring

8
Develop Dashboards

9
Improve Process

Infrastructure
Infrastructure can be completed in one / two sessions over 5 - 10 days. Must be revisited regularly to re-validate information.

Implementation
Implementation may require 1 - 2 Months of continuous data collection Requires Gauge R & R validation

Execution

Execution is a continuous process, which may take several cycles to establish Must be continually revalidated against baseline.
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Leading BPMS Deployment Vision, Strategy and Execution

Phase

VISION

STRATEGY

EXECUTION

1 3
Top Down Driven

4 8

5 9

6 8

7 9

Steps Characteristics

Collaborative Effort Determines What the Process Must do to Achieve Vision Should be set by jointly by Process Champion, Process Owner and Process Team.

Bottom-Up Driven Determines How to Achieve Strategic Objectives Should be Set by Processing Team with Buy-in from Process Owner

Determines Role Process Plays in Business Strategy Should be set by Process Champion / Process Owner and involve key process associates

Model Allows for Role Segmentation: Leaders Lead, Managers Coach, Process Teams Execute

Experience Sharing Facilitating a BPMS Exercise

Creating Process Mission
Think the Big Picture your process output is a customer process input

Document Existing Process

Drill deep to identify key steps Capture variation between operators

Document Process CTQs (Ys)

Obtain / Validate from Customer Translate into measurable parameters (e.g. What does Smooth Delivery imply? Turn-around Time < 8 hours? Accuracy > 95%? Both?)

Identify Process Measures (Xs)

Use a brainstorming approach to identify key attributes that influence process delivery - Detailed Process Map useful document for guiding the discussion Wherever possible, choose Continuous Data over Discrete Data Err on the side of Caution easier to drop later than to include later
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Experience Sharing Facilitating a BPMS Exercise

Data Collection
Continual exercise hence buy-in at process associate level a MUST Watch out for consistency (R&R) issues validate an initial sample

A Carrot and Stick approach might be required for adherence

Performance Monitoring and Dashboards

Monitor CTQs and Xs on a regular basis Analyze target misses / variation in Y to identify significant Xs Report out on a regular basis to the process owner as well as the customer

Improve Process
Improvement opportunities typically classified as waste elimination (LEAN projects) or Variance Reduction (Six Sigma Projects)

Continuous Involvement of Process Associates Key to the Success and Sustainability of the exercise BPMS is a dynamic activity need to periodically revisit to maintain relevance to changing business processes
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The Lean Six Sigma Framework

Lean Philosophy is about Waste Elimination Typically attacks low-hanging fruits by identifying non-value added (NVA) activities through Value Stream Mapping (VSM) exercises

Little or no use of statistical data analysis

Roadmap for integrating Lean and Six Sigma in Quality initiatives: Identify processes with customer dissatisfaction issues, bottlenecks, or high time / resource consumption Prepare detailed VSMs to identify process inefficiencies Eliminate simple NVAs through short projects Lean ideas Use BPMS data on input and process metrics to identify six sigma initiatives Start with Lean to create awareness and momentum Use Six Sigma projects to take process capability to the next level

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Summarizing - The Ladder of Process Improvement

Level of Improvement Breakthrough Improvement: Best-In-Class

Continuous Improvement
Process Stabilization

Time

Voice of the Customer

Focus
BPMS Metric Performance Minimize Variation Lean Six Sigma Projects Process Entitlement Benchmarking Customer Impact Best-in-Class
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Eliminate Waste
Simplify, Digitize Empower

VoC Performance