Six%20Sigma%20Quality%20Engineering

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Six Sigma Quality Engineering

• Week 2
• Introduction to Six Sigma
• Macro model of Six Sigma Management

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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)\
• Six Sigma BB project presentation

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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

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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?
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Six Sigma Companies
Nonconformities PMO
s

• Allied Signal
• Boeing
• Caterpillar
• General Electric
• John Deere Co
• Lockheed Martin
• Motorola
• Polaroid
• Sony

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.
2 308,770 3 66,811 4
6,210 5 233 6 3.4
Process Capability
Parts per Million Opportunities
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Timeline of Six Sigma Management

• 1978 Poor Quality!!! Motorola sells it TV
  business. When asked why, VP states QUALITY
  STINKS!
• 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

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Timeline of Six Sigma Management
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. 1992
Blackbelt infrastructure developed and
implemented at Motorola, Kodak, TI, IBM, and
Digital. 1993 Motorola hires 40,000 new
employees and removes the 40 hour quality
training program. Revenue growth averages 27
growth.
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Timeline of Six Sigma Management
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.

• Six Sigma Companies
• Produce superior, reliable, and
  customer-satisfying products
• Are faster, better, cheaper, and more efficient
  than their competitors

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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

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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
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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
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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
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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
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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
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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
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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.

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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

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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

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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

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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

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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.

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Six Sigma Methodology (DMAIC)
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Six Sigma Methodology (DMAIC)
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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

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Six Sigma Macro Model (Dashboards)
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Six Sigma Macro Model (Dashboards)
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Plant Performance Dashboard
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Questions? Comments?