Six Sigma

1
Six Sigma

• Focus Group Meeting
• Dr K. M. Madrecha
• Projects Quality Manager
• The Kanoo Group UAE Oman
• Consultative Committee Member
• Supply Chain Logistics Group

2
Quality History in the Industrial World

• 1787 - Concept of Interchangeability introduced.
• 1870 - Concept of tolerance
• 1900 - Concept of standardization
• 1930 - National standardization organisations
• 1901 UK,
• 1920 Belgium, Canada, France, USetc.
• 1930s Most of the industrial countries
• 1920s-30s Development of SQC and SPC in Bell Labs
  and Western Electric
• 1924 Walter Shewhart developed Control Charts
• Herold Dodge Harry Romig developed sampling
  techniques.
• 1940s - Deming applied sampling and control chart
  techniques in computer operations in US Census.
• 1950s- Demings thinking reaches Japan

3
Quality History in the Industrial World

• 1970-80s - TQM movement takes hold, national
  Quality Awards established
• 1987 - ISO 9000 family of standards published.
• 1994 - First revision of ISO 9000 standards.
• 1996 - ISO 14001 published
• Early 1990s Business Process Re-engineering
  movement became popular
• 1995-2000 - Development of the Internet,
  e-business
• 2000 - Major revision of ISO 9000 standards

4
Build Up of Quality in Japanese
Industry (L.P.Sullivan, The Seven Stages in
Company-Wide Quality Control, Quality
Progress, May 1986 p 77, ASQC)
100
7 Customer Oriented (1990s) (QFD, deploying
voice of the customer in operational terms)
6 Cost Oriented (1970s-80s) (Product and process
designing for robustness based on DOE)
CWQC
5 Society Oriented (1950s-60s) (Product and
process designing based on DOE)
4 Humanistic (Education and Training to all
employees)
40
3 System Oriented (Quality Management Systems
covering all departments, ie. Design,
manufacturing, sales service)
TQC
2 Process Oriented (1950s) (QA during
production processes including SPC and fool
proofing)
1 Product Oriented (Upto 1940s) (Inspection
after production, audits of finished products and
problem solving activities)
0
5
The Kaizen View
Change required
Maintenance
Innovation without Kaizen
Natural deterioration
Change required
Kaizen
Kaizen Innovation
Time
(Adopted from Masaki Imai (1991), McGraw -Hill,
pp 26-27)
6
Six Sigma
7
What is Six Sigma?

• A statistical measure for determining process
  capability (Six Sigma equates to 3.4
  defects/million opportunities)
• A proven set of tools and tactics for reducing
  variation
• A successful business strategy (used by Motorola,
  Texas Instruments and Allied Signal)
• A comprehensive philosophy about operational
  excellence
• A disciplined process for identifying sources of
  variation / defects in a process minimizing or
  eliminating that variation or those defects and
  ensuring improvements stay in place.

Six Sigma is a Proven, Data-Driven Method for
Improving Processes
8
TQM vs Six Sigma
TQM
Six Sigma

• Lack of integration with business strategy
• Leadership apathy
• A fuzzy concept
• Unclear goals
• Too technical approach
• Failure to break bureaucracy
• Emphasis on incremental change
• Ineffective training
• Focus on technical processes (production, design)

• Links to the business and personal bottom line
• Leadership leadership
• A branded concept
• Clearly identified status
• Glamour oriented approach
• Populist form
• Equal emphasis on incremental and radical change
• Branded training
• Improvement in all processes

9
BPR vs Six Sigma
BPR
Six Sigma

• Too radical to digest
• Traumatic
• Anti-people
• In practice internal cost focus

• Participatory, people oriented
• Enhances personal esteem of employees
• Radical changes achievable
• Customer focus

BPR
Six Sigma
TQM
10
Implementing Change
Change Initiative Focused On Customer
Needs (Target)
QUALITY (Technical Strategy)
ACCEPTANCE (Cultural Strategy)
11
Six Sigma Roadmap

• Identify Core Processes and Key Customers
• Define Customer Requirements (CTQs)
• Measure Current Performance
• Prioritise, analyse and implement improvements
• Expand and integrate

12
Understanding the Output
17 42 61 58 79 32 57 118 42 48 49 58 62 86 58 46 7
6 86 104 29 59 45 69 47 67 56 66 55 25 43 53
Jan
CUSTOMERS VIEW
Time (days)
Feb
GEs VIEW
Mar
Average
13
SIPOC

• Supplier
• Input
• Process
• Output
• Customer

14
Five Phase Improvement Process (DMAIC)
Define Measure Analyze Improve Control

• 1. What is important to the customers?
• (survey / interview / inquiries)
• 2. What is the frequency of defects?
• (measurement system / process mapping / sigma
  rating)
• 3. When, where and why do defects occur?
• (statistics / pareto / FMEA / benchmarking /
  etc...)
• 4. How can we improve the process?
• (design of experiments / expert brainstorming /
  etc...)
• 5. How can we maintain the process improvement?
• (measurement feedback control / procedural /
  etc...)

15
Definitions
What Is Six Sigma?

• Customer Anyone Who Receives Product, Service
  or Information
• OpportunityEvery Chance to Do Something Either
  Right or Wrong
• Successes vs. DefectsEvery Result of an
  Opportunity Either Meets the Customer
  Specification or it Doesnt

GE Company Proprietary November 1998
16
The Six Sigma Goal
Why 99 Isnt Good Enough
99 Good
Defects
s
Good
2
308,537
68
3
66,807
93
4
6,210
99
5
99.99
233
6
99.9997
3.4
17
Bulls Eye
Off-Center
Too Much Spread
X
X
X
X
X
X
X
X
X
X
X
X
X
Centered On-Target
X
Center Process
Reduce Spread
18
Process Philosophy
What Is Six Sigma?
?

• Know Whats Importantto the Customer (CTQ)
• Reduce Defects (DPMO)
• Centre Around Target (Mean)
• Reduce Variation (Standard Deviation)

GE Company Proprietary November 1998
19
With Normal Curves...
Off-Centre
Too Much Spread
Target
Target
USL
LSL
USL
LSL
Centred On-Target
Target
Center Process
Reduce Spread
USL
LSL
20
The Six Sigma Journey
Six Sigma Quality at GE
Lynn Fergusson Manager, Corporate Initiatives GE
Canada
21

Work-Outä Stages of GE's Culture Change
high
Six Sigma Quality


Key Strategic Initiatives


QMI, NPI, OTR, SP, Productivity, Globalization
Change Acceleration Process


increase success and accelerate change
Process Improvement

Bullet Train Approach

continuous improvement, re-engineering
Productivity / Best Practices

Best Practice Sharing


looking outside GE
Work-Outä / Town Meetings

Action Work-Outsä Customized Work-Outsä

low
empowerment, bureaucracy busting, action
Time
r 6/3/96
22
From Our CEO...

• ...this Six Sigma journey will change the
  paradigm from fixing products so they are perfect
  to fixing processes so that they produce nothing
  but perfection, or close to it.

-Jack Welch
23
Key Six Sigma Roles

Champion
Senior management with clout and credibility
responsible for the success of the Quality
initiative
Master Black Belt
Teachers, Trainers, Reviewers and Mentors of
Black Belts (Full Time)
Black Belt
Leaders of the teams that conduct Six Sigma
projects (Full Time)
Green Belt
Six Sigma project leaders (Part Time)
Team Members
Key participants in Black Belt projects
gathering data and implementing process
improvements
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Six Sigma Organisation
Master Black Belts (Coach, support project
leaders)
Sponsors/ Champions (Recognise people,
maintain momentum/morale)
(Select, Oversee, guide projects)
Green Belts/ Team Leaders (Lead projects to
success)
Black Belts (Lead projects to success)
GBs/Team members (Suggest projects,
Analyse/experiment, implement solutions)
25
Training
All Professional Employees GB Trained By Early
1999
26
Projects
Completed Projects Will Reach 55,000 by 2000
20,000 More Projects in 98
1998
1999
2000
1997
Project Completion Drives Six Sigma Learning
27
Six Sigma Costs and Benefits
( Millions)
Future Benefits Include Emphasis on Customer
Impact
28
Further Quality Initiatives at GE

• Six Sigma _at_ the Customer emphasis on becoming
  more customer centric BBs at customer sites to
  help customers improve their processes and for GE
  to gain better insights about our customers
• Six Sigma Customer Centric Metrics communicate
  customer metrics to employees on an on-going
  basis along with how our processes are impacting
  the customers metrics
• Six Sigma in GEs Fulfillment Process focus on
  common metrics, measure the same way with
  emphasis on optimizing process against customer
  requests
• Six Sigma in e-Business focus on understanding
  e-Business and e-Commerce capabilities

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In Summary...

• The Keys to A Successful
• Six Sigma Strategy Include
• Customer - Focus on the Customer
• Process - Look at the Process from the Customers
  Perspective - Outside-In Thinking
• Employees - Leadership Commitment

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Example of Six Sigma in KM

• Quotation Timeliness in KM _at_ 2.95 sigma, DPMO
  73,873
• Delivery Timeliness in KM is _at_ 2.38 sigma, DPMO
  189,801
• ( Period May-August, 2001)

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The Way Forward?

• ..
• ..

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Thank You!