Ch-11 (Six Sigma)

11-1 Excel Books Total Quality Management Text and Cases G Nagalingappa, Manjunath V S
Copyright 2010, G Nagalingappa, Manjunath V S

Six Sigma
CH-11
Chapter
11
Six Sigma
Six Sigma
CH-11
Introduction
Six Sigma is a management framework that, in the past 15 to 20 years,
has evolved from a focus on process improvement using statistical tools
to a comprehensive framework for managing a business.
Six Sigma has become a synonym for improving quality, reducing cost,
improving customer loyalty, and achieving bottom-line results.
Six Sigma
CH-11
Six Sigma Definition
According to James Harrington, "Six Sigma was simply a TQM process that
uses process capability as a way of measuring progress.
Six Sigma = TQM (or CQI) .
+ Additional Data Analysis Tools
+ Stronger Customer Focus
+ Project Management
+ Financial Results.

Six Sigma
CH-11
Historical Perspective on Six Sigma
In the mid-1980s, Motorola, under the leadership of Robert W. Galvin,
was the initial developer of Six Sigma.
Most credit goes to the late Bill Smith for inventing Six Sigma.
Meeting the challenge Galvin had set in 1981 to improve quality by tenfold
and developing Six Sigma helped Motorola to win the first Malcolm
Baldrige National Quality Award in 1989.
Six Sigma
CH-11
Cont.
Statistical Framework for Six Sigma
Sigma is the Greek symbol used for standard deviation of a population.
Sigma means standard deviation which indicates dispersion.
According to Six-Sigma philosophy, processes rarely stay centred and
tend to shift above or below the target.
Six Sigma
CH-11
Cont.
Slide 35
A 6 Sigma Process
Customer target
Lower Specification Limit Upper Specification Limit
6 6
0.00034% of points will be outside of the specification limits ie. defects
(= 3.4 parts per million out of spec.)
= 99.7966% of data inside the limits (C= 2)
p
0.00017%
1.7 ppm
0.00017%
1.7 ppm
Six Sigma Process
Six Sigma
CH-11
Cont.
Statistical Framework for Six Sigma
Six Sigma, which operates 3.4 Defects per million of
opportunities (DPMO).
The basic condition to implement Six Sigma, includes
combining Six Sigma improvement project with DMAIC
(Defining, Measure, Analyze, Improve and Control)
Define, Measure, Analyse, Design, Verify (DMADV)
Six Sigma
CH-11
Quality Level for Six Sigma
Quality Level
Off-
Centering
3-
sigma
3.5-
sigma
4-
sigma
4.5-
sigma
5-
sigma
5.5-
sigma
6-
sigma
0 2,700 465 63 6.8 0.57 0.034 0.002
0.25-sigma 3,577 666 99 12.8 1.02 0.1056 0.0063
0.5-sigma 6,440 1,382 236 32 3.4 0.71 0.019
0.75-sigma 12,288 3,011 665 88.5 11 1.02 0.1
1-sigma 22,832 6,433 1,350 233 32 3.4 0.39
1.25-sigma 40,111 12,201 3,000 577 88.5 10.7 1
1.5-sigma 66,803 22,800 6,200 1,350 233 32 3.4
1.75-sigma 105,601 40,100 12,200 3,000 577 88.4 11
2-sigma 158,700 66,800 22,800 6,200 1,300 233 32
Six Sigma
CH-11
Key Concepts of Six Sigma
Organizational/Transformational
Processes
X
Inputs
Products/Services/
Outputs
Y
Y = f(X)
Six Sigma and Business Processes
Six Sigma
CH-11
Key Elements of Six Sigma
1. Process Orientation
2. Customer Focus
3. Y = f(X)
4. Data and Measurement Driven
5. Focus on Variation Reduction
6. Statistical Rigour
7. Project Orientation
8. The DMAIC Process Improvement/Problem Solving Process
9. Dedicated Personnel
10. Bottom Line Results Focussed
11. Data-driven culture (In God we trust, all others bring data).
Six Sigma
CH-11
Six Themes of Six Sigma
Principle 1 Genuine Focus on the customer
Principle 2 Data and fact driven management
Principle 3 Process focus, management and improvement
Principle 4 Proactive Management
Principle 5 Boundaryless Collaboration
Principle 6 Drive for perfection, tolerance for failure
Six Sigma
CH-11
The DMAIC Methodology
Define
Measure
Analyse
Improve
Control
6
Analyse to
identify root causes
Measure
the current
performance
and capability
Control by
standardising solution
and monitoring
performance
Define the
problem or
opportunity
Improve by implementing
potential solutions
Six Sigma
CH-11
Cont.
Six Sigma Support Structure
1. Champions
2. Sponsors / Process Owners
3. Master Black Belts
4. Black Belts
5. Green Belt
6. Team Members
Six Sigma
CH-11
Roles
Position
Responsibilities
Champions Members of senior management
team/Driver and advocate.
Master Black
Belt
Full-time breakthrough
experts/Train and coach.
Black Belt Full-time improvement
experts/project manager and
specialist.
Green Belt Middle management,
supervisors/Projects manager and
team leader.
White Belt Operator, front line staff, Team
member
Six Sigma
CH-11
Champions receive one week of training.
MBBs receive two training sessions (each of
one week) and have usually completed a BB
training program. MBBs are mainly involved
in the training and coaching of BBs and GBs.
MBBs undergo extensive training in statistics
and problem-solving techniques and dedicate
100% of their time to Six Sigma.

Six Sigma
CH-11
BBs, who usually work under the supervision
of an MBB, receive four training sessions
(each of one week, with three weeks between
the sessions to apply strategy to assigned
projects). BBs also undergo extensive training
in statistics and problem-solving techniques
and dedicate 100% of their time to Six Sigma.

Six Sigma
CH-11
GBs are employees of the organization who execute
Six Sigma as part of their usual jobs. They receive
two training sessions (each of three days with three
weeks between the sessions for project work).
White Belts are Project team members who work on
Six Sigma projects on a part time basis are called
White Belts or Yellow Belts. They receive about
two to three full days of training in the fundamentals
of Six Sigma methodology.

Six Sigma
CH-11
Black Belt is a full time Six Sigma practitioner
who has had rigorous training in statistical
methods used to gather and analyse data in a
Six Sigma projects.
Green Belt is a Six Sigma practitioner, usually
part-time, who trained in the Six Sigma
DMAIC problem solving methodology and
basic statistical tools.
The champions are head of business or process
owners who run the process.
Six Sigma
CH-11
The Leadership Group or Council
The Sponsor or Champion
The Implementation Lead
The Six Sigma Coach
The team leader or project leader
Team member
The Process owner
Six Sigma
CH-11
Cont.
Benefits of Six Sigma
1. It generates sustained success
2. It sets a performance goal for everyone in the organization
3. It enhances value to the customer
4. It accelerates the rate of improvement
5. It promotes learning and cross-pollination through cross functional
teams
6. It executes strategic change.
Six Sigma
CH-11
Cont.
Slide 158
Relationship between Quality, Market Share
and ROI The Business Case for Six Sigma
Relative Market Share
Relative
Quality
Low 25% 60% High
Superior
33 %
Inferior
67%
Return on Investment (ROI) %
21
38
20
29
27
20
13
7
14
Six Sigma's
Contribution
to Success
Six Sigma
CH-11
Slide 159
Improve Quality
External Quality
Customer
Satisfaction
Market
Share
Revenue
Internal Quality
Operating
Costs
Capital Costs
Economies of
Scale
Higher Profit
Higher ROI
Products &
Services
Processes &
People
Six Sigma Competitive Advantage
Six Sigma
CH-11
Cont.
Twelve Keys to Success in Six Sigma Implementation
1. Tie Six Sigma to business strategy and priorities
2. Position Six Sigma as an improved way to manage for today
3. Keep the message simple and clear
4. Develop your own path to Six Sigma
5. Focus on short-term results
6. Focus on long-term growth and development
7. Publicize results admit setbacks, and learn from both
Six Sigma
CH-11
8. Make an investment to make it happen
9. Use Six Sigma tools wisely
10. Link customers, process, data, and innovation to build the Six Sigma
system
11. Make top leaders responsible and accountable
12. Make learning an ongoing activity.

Ch-11 (Six Sigma)

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Ch-11 (Six Sigma)

Caricato da

Copyright:

Formati disponibili

11-1 Excel Books Total Quality Management Text and Cases G Nagalingappa, Manjunath V S

Copyright 2010, G Nagalingappa, Manjunath V S

Potrebbero piacerti anche