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Six Sigma Quality Engineering

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... generates a defect probability of 3.4 parts per million (PPM) ... John Deere & Co. Lockheed Martin. Motorola. Polaroid. Sony. Six Sigma Companies. Process ... – PowerPoint PPT presentation

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Title: Six Sigma Quality Engineering


1
Six Sigma Quality Engineering
  • Week 12
  • Chapters 1,2 3

2
Chapters 1,2 3 Outline
  • Values of Six Sigma
  • Development Timeline of Six Sigma Management
  • Benefits of Six Sigma Management
  • Voice Of the Process (VOP)
  • Variation in a Process
  • Voice Of the Customer (VOC)
  • Roles and responsibilities in Six Sigma
    Management
  • Technical terminology of Six Sigma Management
  • Six Sigma Methodology (DMAIC)
  • Six Sigma Macro Model (Dashboards)

3
Values of Six Sigma
  • Six Sigma is a process that enables
    companies to increase profits dramatically by
    streamlining operations, improving quality, and
    eliminating defects or mistakes in everything a
    company does, from raw materials to finish goods.
    A Six Sigma process generates a defect
    probability of 3.4 parts per million (PPM).
  • Key activities in Six Sigma are
  • Understanding customer needs (in quantifiable
    terms)
  • Translating the needs into the measurable
    outcomes
  • Key objectives in Six Sigma are
  • Understanding measuring the process inputs
  • Looking at the root causes of variation

4
The Focus of Six Sigma
f (X)
Y
X
. . . X
Y

1
N
n
Independent
Dependent

n
Input-Process
Output

n
Effect
Cause

n
Symptom

Problem
n

Monitor
Control
n
If we are so good at X, why do we constantly test
and inspect Y?
5
Six Sigma Companies
  • Allied Signal
  • Boeing
  • Caterpillar
  • General Electric
  • John Deere Co
  • Lockheed Martin
  • Motorola
  • Polaroid
  • Sony

PPM
s
The sigma scale of measure is perfectly
correlated to such characteristics as
defects-per-unit, parts-per million defective,
and the probability of a failure/error.
2 308,537 3 66,807 4 6,210 5
233 6 3.4
Process Capability
Defects per Million Opportunities
6
Timeline of Six Sigma Management
1978 Poor Quality!!! Motorola sells it TV
business. When asked why, VP states QUALITY
STINKS! 1980 Corporate Quality Officer
appointed 1981 Training Center established 1985
Began to measure total defects/unit 1987
Corporation adopts Six Sigma program, Six Sigma
goal to be achieved by 1992 1988 Motorola wins
Malcolm Baldridge Award at the corporate
level 1990 Six Sigma Research Institute formed
in Ill.
7
Timeline of Six Sigma Management
1992 Blackbelt infrastructure developed by SSRI
implemented at Motorola, Kodak, TI, IBM, and
Digital. 1993-5 Motorola hires 40,000 new
employees and removes the 40 hour quality
training program. Revenue growth averages 27
growth. 1994 Motorola owns 60 of the wireless
phone market. Six Sigma Academy formed. 1998
Motorola owns 34 of the wireless phone market.
Revenue growth is 5. Shareholder value is 1
it had averaged 54 in previous 3 years.
8
Motorola Problems
  • Did not co-operate across division
  • Ignored customer requirements
  • Diluted culture with new employees without
    training
  • Did not realize that Sigma had limitations
  • Was an internally focused program

9
Benefits of Six Sigma Management
  • Improve process flows
  • Reduce total defects
  • Reduce process cycle time
  • Enhance Customer and Employee satisfaction
  • Help reduce inventory
  • Help improve capacity and output
  • Help increase quality and reliability
  • Help decrease product costs
  • Help improve product delivery to custumer

10
Voice Of the Process (VOP)
  • A process is a collection of interacting
    components that transform inputs into outputs
    toward a common aim.

Inputs
Process
Outputs
Components Machines Operators
Assembly Test Final Inspection Ship to Customer
Customer receives product
11
Variation in a Process
  • What is Variation?
  • The enemy of certainty
  • The enemy of customer satisfaction
  • Drives the unknown
  • Adds to customer (and employee) disbelief
  • Adds to lack of confidence in the ability of
    processes
  • Increases risk that a result will not meet
    expectations
  • Variation is a driver of defects

For any process, variation is the main reason for
poor performance...
Variation is the key focus of Six Sigma
12
Variation in a Process
  • Feedback Loops
  • A feedback loop relates information about outputs
    from any stage or stages back to another stage or
    stages to make an analysis of the process.

Inputs
Process
Outputs
Feedback Loop
13
Voice Of the Customer (VOC)
  • It is vital that we understand and are able to
    quantify what is critical to the customer's
    satisfaction.

LSL
USL
No Good Loss Unhappy Customer
No Good Loss Unhappy Customer
Good No Loss
Nominal Value
14
Voice Of the Customer (VOC)
  • Critical to Customers satisfactions
  • High quality
  • Lowest possible price
  • Products deliver on time

Therefore Producers should bring forth these
products in a manner that minimizes cost and
cycle time and maximizes profit
15
Voice Of the Customer (VOC)
  • We need to ask ourselves...
  • How easy it is for our customers to do business
    with us?
  • Are we making assumptions about what customers
    need?
  • How often do we ask our customers (internal and
    external) what they need?
  • Is this information properly communicated
    throughout our organization.

We must place a value and emphasis on the
customer, take measurements and measure inputs,
not just outputs
16
Customer Satisfaction?
Do you have dissatisfied customers?
  • Historically 1 in 25 unsatisfied customers
    express their dissatisfaction
  • 1 unsatisfied customer typically tells 7-16
    others.
  • It cost about five times more to attract a new
    customer as it does to keep an old one.

17
Six Sigma Companies
Produce vastly superior, reliable, and
customer-satisfying products… Faster, better,
cheaper, and more efficiently than their
competitors… While translating higher quality for
their customers into lower costs for themselves .
18
Roles and responsibilities in Six Sigma Management
  • Senior Executive
  • Provides the impetus, direction alignment
    necessary for Six Sigma ultimate success. Senior
    Executive should
  • Study Six Sigma management
  • Link companys objectives to Six Sigma projects
  • Champion Six Sigma projects
  • Constantly review Six Sigma projects progress
  • Executive Committee Member
  • They are the top management of an organization.
    Executive Committee Members should
  • Deploy Six Sigma throughout the organization
  • Prioritize and manage Six Sigma portfolio
  • Assign champion, BB and GB to Six Sigma projects
  • Remove barriers to Six Sigma management
  • Provide resources for Six Sigma management

19
Roles and responsibilities in Six Sigma Management
  • Champion
  • Take a very active sponsorship and leadership
    role in conducting and implementing Six Sigma
    projects. Champions should
  • Identify the project on the organizational
    dashboard
  • Provide an ongoing communication link between the
    project team and Executive committee
  • Keep the team focused on the project by providing
    direction and guidance
  • Assure that Six Sigma methods and tools are being
    used in the project
  • Master Black Belt
  • Takes a leadership role as keeper of the Six
    Sigma process and advisor to executives or
    business unit managers. Master Black Belt should
  • Counsel senior executives and business unit
    managers on Six Sigma management
  • Continually improve and innovate the
    organizations Six Sigma process
  • Apply Six Sigma across across both operations and
    transactions-based process
  • Mentor Green Belts and Black Belts

20
Roles and responsibilities in Six Sigma Management
  • Black Belt
  • Is a full time change agent and improvement
    leader. Black Belts should have the following
    characteristics
  • Technical and managerial process
    improvement/innovation skills
  • Understand the psychology of individuals and
    teams
  • Not intimidated by upper management
  • Has a customer focus
  • The responsibilities of a Black Belt include
  • Communicate with the champion and process owner
    about progress of the project
  • Help team members design and analyze experiments
  • Provide training in tools and team functions to
    project team members
  • Coach Green belts leading projects limited in
    scope

21
Roles and responsibilities in Six Sigma Management
  • Green Belt
  • Is an individual who works on projects part time,
    either as a team member for complex projects or
    as a project leader for simpler projects. Green
    Belts have the following responsibilities
  • Define review project objective with projects
    champion
  • Facilitate the team through all phases of the
    project
  • Analyze data through all phases of the project
  • Train team members in the use of Six Sigma tools
    and methods through all phases of the project
  • Process Owner
  • Is the manager of a process. The process owner
    should be identified and involved in all Six
    Sigma projects relating to the process owner
    area. A process owner has the following
    responsibilities
  • Empower employees to follow and improve best
    practice methods
  • Accept and manage the improved process after
    completion of the Six Sigma project
  • Understand how the process works, the capability
    of the process, and the relationship of the
    process to other processes in the organization

22
Technical terminology of Six Sigma Management
  • Critical-To-Quality (CTQ) Is a measure of what
    is important to a customer.
  • Defect Is a nonconformance on one of many
    possible quality characteristics of a unit that
    causes customer dissatisfaction
  • Defects per Million opportunities (DPMO) A
    quality metric often used in the Six Sigma
    process. It is calculated by the number of
    defects observed divided by the number of
    opportunities for defects compared to 1 million
    units.
  • Yield Is the proportion of units within
    specification divided by the total number of
    units.
  • Rolled Throughput Yield (RTY) Is the product of
    the yields from each step in a process.

23
Six Sigma Methodology (DMAIC)
24
Six Sigma Methodology (DMAIC)
25
Six Sigma Macro Model (Dashboards)
  • A dashboard is a tool used by management to
    clarify and assign accountability for the
    critical few key objectives, key indicators,
    and project tasks needed to steer an organization
    toward its mission statement.
  • There are four basic categories of dashboard key
    objectives
  • Financial Key Objectives
  • Process Improvement Key Objectives
  • Innovation/Customer Satisfaction Key Objectives
  • Employee Growth and Development Key Objectives

26
Questions? Comments?
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