Purpose of Six Sigma:
Make customer happy and make profit.
Organizational Challeges:
- two characters: employees need to be motivated; clients need to be delighted
-7 chanllenges: On Time Delivery; Good Service; Responsive to Customer need; Customer want Low Cost; Flexible; Good Quality
Six Sigma Benefits:
-Sustained success; project selection; Profits Focus; Customer Satisfaction; Engaged Employees; Shareholder value
What is Six Sigma
- Six means number; Sigma means standard deviation
- use only half of the allowance given, then it's a six sigma process
Overview of Six Sigma
- Six Sigma as a tool: reduce DPMO (Defects per Million Opportunities); profuce < 3.4 defects per million opportunities
- Six Sigma as a Process: DMAIC approach (Define; Measure; Analyze; Improve; Control)
- Six Sigma as a Philosophy: Understanding that improving processes will lead to long term benefits; anything less than ideal is an opportunity for improvement
Six Sigma Philosophy:
-Data Driven approach (based on facts)
-Process (Input and output; Y=F(X))
-Boundary less (process cut across departments)
-Gate Reviews (driven for perfection but tolerance filure)
-CTQ (critical to quality)
-DPMO (Target of 3.4 defects per million opportunities)
-Target (Target the process around mean/center)
-Variation (Minimize variation)
DMAIC Approach (Improve process)
-Define the problem
-Measure current performance
-Analyze problem
-Improvement the process
-Control
DMADV Approach (Define new process;also called DFSS)
-Define the goal
-Quantify the needs of customer wants
-Analyze the options available
-Design new process
-Verify the process can meet client need
Six Sigma Belt System
-White Belt (Basic terminology)
-Yellow Belt (Support project)
-Green Belt (Mentor Yellow Belts)
-Black Belt (Mentor Green Belt)
-Mater Black Belt (Mentor Black Belt)
Six Sigma History
-1985 Dr. Mikel J Harry wrote a paper relating early failures to quality
-1987 Motorola
-1992 Allied Signal
-1995 General Electric
-2002 Johnson & Jognson; Ford, Nissan, Honeywell
After course project:
- Activity 1: Identify 10 areas of improvement
- Activity 2: Filter out one Six Sigma project from the above list
Filter 1:
Remove all from the list where there is no significant gap between the current performance and the needed/desired performance of its processes. You should be looking for 10 times improvement.
Filter 2:
Remove all from the list where the cause of the problem is known or clearly understood. You don't need a Six Sigma project for that. You will do a Six Sigma project where the cause of the problem is not obvious.
Filter 3:
Remove all from the list where there is a predetermined or apparent optimal solution. If you already know the answer, then just go fix it.
- Activity 3: Make it a SMART project
Once you have identified one improvement project from the list, put it on a piece of paper. Your project definition should be SMART.
SMART is Specific, Measurable, Achievable, Realistic and Time-bound.
- Activity 4: Share your project objective