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1、Introduction to Six Sigma Business Improvement,2,What is six sigma?A vehicle for strategic change.an organizational approach to performance excellence.OPERATIONAL EXCELLENCE Business processes.Tools and methodologies targeted at reducing variation through root cause analysis and dramatically improvi
2、ng processes.TRANSFORMATIONAL CHANGE Across-the-board.Large-scale integration of fundamental changes throughout the organization-processes,culture,and customers-to achieve and sustain breakaway results.,3,Why Six Sigma?-General Electric Results,Annual Net Benefit from Six Sigma$in Billions,1996,1997
3、,1998,Annual Net Benefit,Source:1998 and 1999 GE Annual Report,$-30M,$400M,$750M,1999,$2.0B,1.0,2.0,0,2000,3.0,$?,4,“Today,Six Sigma is focused squarely where it must be-on helping our customers win.A growing proportion of Six Sigma projects now under way are done on customer processes,many on custo
4、mer premises.The objective is not to deliver flawless projects and services that we think the customer wants.but rather what the customers really want when they want them.”Jack Welch,2000,Six Sigma at General Electric,Source:,5,Six Sigma at Dow Chemical,Why did Dow adopt Six Sigma?To accelerate impl
5、ementation of their global business strategies.Dow expects to achieve$1.5 Billion(EBIT)by 2003.Dow has targeted 3%of its employee population as full time black beltsOver 1000 Six Sigma Black Belts are currently delivering project results across all parts of Dows business.Dow is achieving over$250,00
6、0 in net results per project.,6,Six Sigma at Ford,Why did Ford adopt Six Sigma?To deliver customer satisfaction and cost improvement results faster and to sustain them over the long-term.Ford believes its deployment strategy of Six Sigma will be unique in two ways:Primary focus will be on those issu
7、es most important to customers.Integration of leadership skill training into Six Sigma training.Six Sigma Black Belts are being deployed throughout Ford in engineering,manufacturing,service,sales and operations.,7,Cost of poor quality is reduced via assignment of Black Belt project teams to strategi
8、cally selected improvement projects:Seasoned Black Belts complete three to five projects annuallySome early projects,especially in Autos,Chemicals and Petroleum,have yielded one to two million dollars$175,000-$200,000 average savings per projectAnnual savings delivered per Black Belt$575,000-$1,000,
9、000Rule of thumb for number of Black Belts:1%-3%of employees,Value Extraction,8,Six Sigma Applies to the Whole Business,Six sigma has the greatest impact when it is applied across all core business processes.A core business process is a set of interrelated,cross-functional processes that have a prof
10、ound impact on customer satisfaction-either positive or negative,Product DevelopmentMarketing/Sales/Cust SerProduction Planning Product ManufacturingQuality&TestingTechnology SupportDistributionBilling/Contracts,9,Sigma Business Improvement,10,An objective of six sigma is to reduce variation and mov
11、e product or service outputs permanently inside customer requirements.(Curve A to B),11,Sigma Improvement Value Proposition*,Sigma vs.Cost of Poor Quality(COPQ),30%,25%,20%,15%,10%,5%,69%,93.3%,99.4%,99.98%,99.9997%,COPQ as a Percent of SALES,2,3,4,5,6,RTY(%DEFECT-FREE),*Derived from AlliedSignal ex
12、perience,12,How Do You Measure Quality?,You dont know what you dont know.You cant improve what you dont knowYou cant improve if you dont measureHow do you measure the quality of your products/services today?,13,Six sigma is also a measure of variability.It is a name given to indicate how much of the
13、 data falls within the customers requirements.The higher the process sigma,the more of the process outputs,products and services,meet customers requirements or,the fewer the defects.,Sigma is the Greek letter that is a statistical unit of measurement used to define the standard deviation of a popula
14、tion.It measures the variability or spread of the data.,What is Six Sigma?,14,2 sigma:69.146%of products and/or services meet customer requirements with 308,538 defects per million opportunities.4 sigma:99.379%of products and/or services meet customer requirements.but there are still 6,210 defects p
15、er million opportunities.6 sigma:99.99966%As close to flaw-free as a business can get,with just 3.4 defects per million opportunities in your product or service.,How Close Are You to Consistently Meeting Your Customers Needs?,15,Six Sigma Deployment Success Model,16,The Six Sigma Success Factors,Est
16、ablishing these factors provides the seeds of success.They need to be integrated uniquely to fit each business.They are all necessary for the best result.The most powerful success factor is“committed leadership.”,17,Implementation Roles/Responsibilities,Key Improvement Area Identification Black Belt
17、 Selection and Development Project Selection and Review Sponsor Projects,Divisional Improvement Agenda,Typical Six Sigma Leadership&Project Management Structure,Executive Leadership Improvement Agenda,CEO,Six SigmaProject Manager,Strategic Direction Communication Incentives,19,Six Sigma Project Sele
18、ction,20,Select Strategic Areas for Improvement(SAIs)that will have the greatest impact on improving the businesss key performance indicators,driving business strategy,solving critical customer issues,and strengthening core processes.Formal assessments provide valuable insights on performance gaps,a
19、s well.,Six Sigma Project Selection,Strategy,CustomerIssues,Core Processes,SAIs,Performance Assessments,Key Performance Indicators,21,Active Projects,SAI 1,SAI 5,SAI 3,Potential Projects_,1.Define Strategic Improvement Priorities,2.Prioritize potential projects vs.impact on business goals,3.Select c
20、urrent projects by strength of alignment with business goals,Strategy,CustomerRequirements,Core Processes,KIAs,Key Performance Indicators,SAIs,SAI 2,SAI 4,Potential ProjectsQuick HitsLeanSix Sigma,Potential Projects_,22,Opportunity:Warranty costs reached$10 Million last year,y1,y2,y3,x1,1,x1,2,x1,3,
21、x1,4,x1,N,x2,1,x2,2,x2,3,x2,4,x2,N,x3,1,x3,2,x3,3,x3,4,x3,N,y4,yn,x4,1,x4,2,x4,3,x4,4,x4,N,Y,Business success is achieved through multiple projects,Reduce Bearing Failures in Product A,Improve Key Supplier Quality,Reduce Warranty Costs by 25%by end of fiscal year,Reduce Leaks in Product B,23,Example
22、:Team Charter,Delivery of Products,24,Black Belt Selection&Development,25,Characteristics of Best Black BeltTeam Leader Candidates,CriteriaStrong process orientationFirm grounding in analytical techniquesStrong facilitation and teaching skillsStrong communication skillsFuture business leadersChange
23、management experienceStrong team building skillsExperienced in several functional areas,26,The three principal methods used in the Implementation Phase of Six Sigma are:The SIGMA Improvement Process(DMAIC),Design for Six Sigma(DFSS),and Process Management,DFSS generates new processes,products,servic
24、es,and or plantsSIGMA Improvement Process improves existing process performanceProcess Management is the system that enables leverage and sustaining gains achieved by DFSS and SIGMA Improvement Process,27,The methodology includes skill transfer through just-in-time development and facilitation of pr
25、oject teams and Black Belts.,Sigma Improvement Process:DMAIC,Focuses on“real problems”directly related to the bottom-lineRealizes results in 4-6 monthsUtilizes multiple tools and techniques including rigorous statistical methods when neededSustains improvement over the long-termDisseminates improvem
26、ent throughout the organizationActs as an agent of change,28,Black Belt Training-DMAIC,Week 1-Define&Measure,Six Sigma Simulation Project CharteringProcess MappingVoice of CustomerData CollectionSamplingMSEVariationSigma Calculations,Lean Manufacturing Principles,Week 2-Analyze,Review of D&MStatisti
27、cal Thinking StratificationRoot Cause AnalysisRegression Topics Hypothesis TestingCreativity,Week 3-DOE,Design of Experimentswith Case Studies,Week 4-Improve&Control,Generate Improvement IdeasSelect SolutionsManage ChangePiloting SolutionsProcess ManagementProject Closeout,Week 5-,MINITAB Software i
28、s Used for all Statistical Applications,Typical Black Belt Training-DMAIC,29,Determining Whether to Improve or Redesign,30,The methodology includes skill transfer through just-in-time development and facilitation of project teams and Black Belts.,Design for Six Sigma:DMEDI,Focuses on development of
29、new products,services,processes,and plants that precisely meet customer current and future needsRealizes results in 6-36 months depending on type of projectUtilizes multiple tools and techniques including rigorous statistical methods when neededSustains improvement over the long-termDisseminates imp
30、rovement throughout the organizationActs as an agent of change,Define Opportunities,Measure Customer Needs,Explore Design Concepts,Develop Detailed Design,Implement Detailed Design,31,Black Belt Training-DFSS,Session 1-Define,Session 2-Measure,Session 3-Explore,Session 4-Develop,Process ModelTM,QFD
31、Capture TM,and other software are used for developing the new design.,Session 5-Implement,Develop Project CharterPlan the Design Project,Gather Customer Needs Define Product/Process Requirements,Develop Product/Process Conceptual DesignPredict Designs Sigma Capability,Develop Product/Process Detaile
32、d Design Develop Production Processes,Perform Pilot TestingDevelop Implementation&Transition PlansProject Closure,Typical Black Belt Training-DFSS,32,Process Management,Process Management is sustaining the gains achieved by Lean Thinking and Six Sigma Performance Improvement,Improve Process Performa
33、nceand Prevent&Predict Failures,Apply,Control&Process Measurement,Apply,Apply,Analyze Process Performance,33,Six Sigma Implementation-The First Year,34,Typical Six Sigma Deployment Timeline,Assessment,Communication,Process Management,HR Infrastructure Development,Change Management,35,Trends in Six Sigma Implementation,36,Six Sigma,E-Business,Trends in Six Sigma Implementation,37,Customer Service,New Process Design,Sales&Marketing,Supplier Interface,Logistics,DFSS,Trends in Six Sigma Implementation,
