Overview

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Overview
Kush K. Shah Chair, ASQ Automotive Division
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What is Six Sigma?

• Sigma is a statistical measure of variability in
  a given process
• Six Sigma is a performance target. Six Sigma
  means that the average opportunity for a defect
  is only 3.4 defects per million opportunities
  (assumes 1.5 sigma drift in process)

Cpk 1.0
Cpk 2.0
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Six Sigma Impact

• With Three Sigma Quality, you get
• At least 54,000 wrong drug prescriptions per
  year.
• Unsafe drinking water about two hours per month.
• Five short or long landings at OHare
  International Airport everyday

• With Six Sigma Quality, you get
• One wrong drug prescription every 25 yrs.
• Unsafe drinking water one second every 16 years.
• One short or long landing at all the airports in
  the U.S. every ten years.

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Why Six Sigma

• Not meeting customer requirements or there are
  serious gaps in service levels.
• Existing improvement efforts have not delivered
  the financial benefits promised.
• Productivity goals and financial results are not
  meeting organizational targets.
• New product development and innovation are
  lagging customer requirements or have stalled.
• Core processes are still out of alignment with
  market requirements.

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Where does Six Sigma Work?
6s
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Benefits of Six Sigma Program

• Material savings
• Labor savings
• Decreased work-in-progress
• Improved capacity and output
• Improved customer satisfaction and process flow
• Improved inventory turns
• Increased productivity
• Reduced cycle times

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Six Sigma - History

• 1980s - Motorola - developed Six Sigma as a
  measurement of mistakes per one million
  operations.
• Early 1990s - AlliedSignal and Texas Instruments
  began benchmarking each others Six Sigma
  initiatives
• In the mid-1990s, Jack Welch, GE CEO, became very
  attracted to the systematic and statistical
  methods Six Sigma employs. GE said that it
  intended to reach Six Sigma quality by the end of
  the year 2000
• Since 2000, Six Sigma has been implemented at
  thousands of organizations

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Six Sigma Key Metrics

• Primary metric is Defects per Unit (DPU). DPU
  drives plantwide improvement
• DPU Total of defects / Total of units
  produced
• Defects per Opportunity (DPO)
• DPO DPU / of opportunities for error in one
  unit
• Defects per Million Opportunities (DPMO). DPMO
  allows for comparison of dissimilar products
• DPMO (DPO 1,000,000) / Total opportunities
  for error in one unit
• Sigma level allows for benchmarking within and
  across companies

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Roles and Responsibilities - Champion

• Promotes a shared vision
• Approves projects and team members
• Mentors projects
• Provides resources
• Removes barriers
• Responsible for Success
• Evaluates improvement impact
• Assures recognition
• Institutionalize Changes

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Roles and Responsibilities of Master Black Belt

• Manages the Six Sigma implementation
• Develops and delivers Black Belt training
• Knowledgeable in advanced Six Sigma techniques
• Mentors Six Sigma Black Belts
• Evaluates projects
• Leads high leverage projects
• Communicates success stories to leadership

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Roles and Responsibilities Six Sigma Black Belt

• Leads teams
• Lead the team reviews
• Responsible for applying DMAIC process
• Prioritizes key activities
• Delivers Green Belt training
• Sponsors and Mentors Green Belts
• Works full-time on Six Sigma projects

Roles and Responsibilities Six Sigma Green Belt

• Leads projects within normal scope of job
• Responsible for applying DMAIC process
• Works part-time on Six Sigma projects

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Roles and Responsibilities - Team Members

• Working on the project is top priority for team
  members
• Support discussions, observations, and
  conclusions
• Knowledge of the process
• Request specific support and identify roadblocks
• Cross-Functional Team (6-10 People)
• Team Leader Six Sigma Black Belt
• Engineering - Product and Process Engineers
• Manufacturing - supervisor of the area, operator,
  job setter

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Training and Certification Six Sigma Green Belt

• Usually one week of Six Sigma training
• Team member in one Six Sigma project
• ASQ Green Belt Certification Exam
• ASQ Greater Detroit Chapter offers Refresher Class

Training and Certification Six Sigma Black Belt

• Usually one month of Six Sigma training over four
  months
• Team leader in one Six Sigma project
• Education Bachelors Degree
• At least three years of experience
• ASQ Black Belt Certification Exam
• ASQ Greater Detroit Chapter offers Refresher Class

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Caution Six Sigma Green Belt / Black Belt
Training

• Get training from reputed organizations too
  many companies offering training and charging
  1,000 - 30,000
• ASQ is one of the few organizations offering
  nationally recognized Body of Knowledge and Green
  Belt and Black Belt certification

Training and Certification Six Sigma Master
Black Belt

• Recruited from the ranks of Black Belt
• Selection process is less formal and less well
  defined
• Selection criteria varies for each organization
• Expert in Advanced Statistical Tools
• Experience in completing many Six Sigma projects

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Six Sigma Project Phases

• 5 Project Phases
• Define
• Measure
• Analyze
• Improve
• Control

Define Opportunities Measure Performance
Analyze Opportunity
Improve Performance
Control Performance
A successful project may use any number of the
six sigma tools, but most importantly it will
have gone through each of the 5 phases !!
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DMAIC Define PhaseTypes of Opportunities
Sweet Fruit
Six Sigma Advanced Tools
Bulk of Fruit
Six Sigma Basic Tools
Low Hanging Fruit
Seven Basic Tools
Logic
Knowledge
Ground Fruit
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DMAIC Define Phase

• Key Steps
• Define Customer Needs
• Define Strategic Goals
• Define Defects and Opportunities
• Identify Master Black Belt Champion
• Select the Team Members
• Determine Project Scope
• Define Goals/Deliverables
• Develop project tracking system

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DMAIC Define Phase

• Tools
• Pareto charts
• Process Maps SIPOC
• Benchmarking
• Project Charter
• CTQ Tree
• Kano Model of Quality

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Six Sigma Project Charter

• Project Business Case
• Customer Driven Projects Complaints or
  opportunities
• Business Driven Projects Efficiency or
  profitability
• Project Goals
• Problem Statement - (state the problem, include
  effect on cost, cycle time and/or quality)
• Goal Statement - (state the project goal, focus
  on reducing or eliminating the stated problem)
• Project Scope
• Process Scope - (flow chart of process activities
  showing start and end point)
• Organization Scope - (groups that will be
  involved with or affected by the project)

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Six Sigma Project Charter (Continued)

• Project Schedule
• Layout all key deliverables and milestones which
  have to be approved by sponsor
• Project Budget
• Project Team
• Core team members
• Support members - Finance, Quality, Information
  System
• Establish team member roles
• Current Process Flow
• SIOPC (supplier, input, process, output,
  customer)
• Current Performance (baseline)

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DMAIC Measure Phase

• Key Steps
• Gather Process Data
• Identify Key Measures
• Validate Measurement System
• Develop Data Collection Plan
• Establish Process Capability
• Graphical Statistical Representation
• Implement Containment Actions

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DMAIC Measure Phase

• Tools
• Gage RR
• Descriptive Statistics
• Histogram
• Scatter Plot
• Control Charts

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DMAIC Analyze Phase

• Key Steps
• Identify gaps between current performance and the
  goal performance
• Generate list of possible causes (sources of
  variation)
• Prioritize list of 'vital few' causes (key
  sources of variation).
• Verify and quantify the root causes of variation.

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DMAIC Analyze Phase

• Tools
• FMEA
• Cause Effect Diagram
• Multi-Vari Charts
• Hypothesis Testing
• Design of Experiment

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DMAIC Improve Phase

• Key Steps
• Generate possible solutions
• Conduct Cost / Benefit Analysis
• Select the Best Solution Plan
• Develop Implementation Plan

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DMAIC Improve Phase

• Tools
• Cost / Benefit Analysis
• Project Management Tools
• Impact / Effort Matrix
• Robust Design
• Tolerancing

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DMAIC Control Phase

• Key Steps
• Control plan in place for sustaining improvements
  (short and long-term).
• New process steps, standards, and documentation
  are ingrained into normal operations.
• Knowledge gained on process is shared and
  institutionalized.
• Response plans established, understood, and
  deployed.

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DMAIC Control Phase

• Tools
• SPC
• Control Plan
• Mistake-proofing
• Long-term Capability Studies

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Six Sigma Reward and Recognition

• Evaluation Criteria
• Impact on Company Goals
• Timeliness in Achieving Objectives
• Completeness of Documentation
• Project Complexity
• Teamwork

• Types of Reward and Recognition
• Company News Article
• Leadership Recognition at Companywide Meeting
• Special Assignment Opportunity
• Financial Pay Increase / Bonus
• Tangible Extra Vacation / Trip / Dinner

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What Differentiates Six Sigma Methods from TQM?

• Hard tie to business strategy and business
  results
• Required commitment of senior management up front
  and continuously through years of implementation
• Extensive focus on continuous definition of
  customer and market requirements
• Each project delivers bottom line results in a
  relatively short time on an average less than
  six months
• Rigorous methods based on measurement and
  analysis
• All employees trained in Six Sigma to perform at
  least at Six Sigma Green Belt level
• Full time Six Sigma team leaders (Black Belts)
• Integration of Six Sigma thinking into the
  business infrastructure through regular project
  reviews by senior leaders, incentives, and rewards

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Evolution of a Six Sigma Program

• Stage I APPREHENSION
• Stage II CAUTION
• Stage III REALIZATION
• Stage IV EXECUTION
• Stage V GROWTH

• Program of the Month
• Sounds Too Easy
• Prove It to Me

• Wont Work on Everything
• Lets Try This on Some Easy Projects
• Well Do This Part Time

• It Works!
• Fix All the Problems

• This Process Is Powerful
• Focus on Highest Priority Projects
• Develop a Training Plan

• Maintain Discipline
• Complete Projects Faster
• Share Clever Techniques

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The Grim Reality About Change...
More than 70 of all change initiatives FAIL to
achieve desired results in time to make a
difference.
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Where Are You?
MakingIt Happen
EXECUTION
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Critical Elements for a SuccessfulSix Sigma
Implementation
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Questions/Comments
asq.automotive_at_gmail.com