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,N,MemberoftheBekaertGroup,Whatisit?Howtoimplementit?Conditionsforsuccess,SixSigma,SchneiderElectric21thJanuary2002,Contents,WhatisSixSigma?AsmeasureforprocesscapabilityAmethodologyHowtoimplementSixSigma?Conditionsforsuccess,1,WhatisSixSigma?,PROCESS,input,result,ExellentresultsrequireexcellentprocessesDeliver(nearly)alwaysthedesiredresultsReducevariabilityAmbition:6SigmaProcessCapability(3.4defectspm),SixSigmaasmeasureforprocesscapability,DefectsandtheHiddenFactory,ManufacturingVariationCausesAHiddenFactoryIncreasedCost-LostCapacity,YieldAfterInspectionorTest,Eachdefectmustbedetected,repairedandplacedbackintheprocess.Eachdefectcoststimeandmoney.,Toincreaseaprocessperformance,youhavetodecreasevariation.,ImportanceofReducingVariation,LessvariationprovidesGreaterpredictabilityintheprocessLesswasteandrework,whichlowerscostsProductsandservicesthatperformbetterandlastlongerHappiercustomers,Defects,ProcessCapability,InadequateDesignMargin,InadequateProcessCapability,SupplierVariation,InadequateMeasurementCapability,average,ss,“Variation”and“ProcessCapability”,23456,308,53766,8076,2102333.4,s,PPM,ProcessCapability,DefectsperMillionOppty.,6Sigma?,%Non-Defective,69.1%93.32%99.379%99.9767%99.99966%,6,6,Cp=2,Cpk=1,5,1,5,6,n=6,6andCp,Cpk,Whyppm?,*1,5shift,Approach,Classical,New,4,1,0,33,2,0,66,3,1,4,1,33,4,5,1,5,Numberofsigmainhalfthetoleranceinterval,Cp,5,6,1,66,2,Cpk*,_,0,16,0,5,0,83,1,1,16,1,5,Ppm*,_,_,66.810,6.207,1.350,233,3,4,Costofquality(%),_,_,25%,15%,10%,7,5%,5%,Ifweaccept99.9%good,then.,1hnondrinkablewatereachmonth500failedsurgerieseachweekinFranceInFrance:2babiesfallingoffthelabourtableeachday1000lostlettersperhour15000chequeonthewrongaccounteachday,CompaniesinvolvedinSixSigmatoday:,Someresultsthatwerepublishedinthepress:Dupont:benefitsexceed$150million/year(DowJonesBusinessNews-February2,2000).Dow:Savingsofabout$250.000perproject.Annualsavings$1billion(Chemicalweekmagazine-March1,2000).Black&Decker:Expectsearningspersharegrowthofatleast15%forthenextthreeyears(ReutersNewsService-February15,2000).AlliedSignal:Costsavingsexceeding$800msince1995GeneralElectric:mostadmiredcompanythreeyearsrunning,andconsistentlyincreasinggrowthandprofit.Costsavingsexceeding$2BGeneralDomesticAppliances:Costsavingsof7,5m1999/2000,CompaniesinvolvedinSixSigmatoday:,GenericSixSigmaMetricsSeasonedBlackBeltscompletethreetofiveprojectsannually$150.000-$200.000averagesavingsperprojectAnnualsavingsdeliveredperBlackBelt$450.000-$1.000.000RuleofthumbfornumbersofBlackBelts:1-3%ofemployees,SIXSIGMAasmethodology.,Asystematicapproachforbreakthroughimprovementrealisationsusingasolidandsoundlybasedtoolsetdeployedthroughouttheorganization,SIXSIGMAasmethodology.,Asystematicapproachforbreakthroughimprovementrealisationsusingasolidandsoundlybasedtoolsetdeployedthroughouttheorganization,ASYSTEMATICAPPROACH.,Selectionofprojects,Managingtheimprovementprojects,Sustainingthegains,Businessstrategy&resultsSignificantgainsThinkprocessProjectfiltersLeadershipbuy-inProjectManagementTraining(BB/GB/YB)TeamworkReviewofprogressReward&recognitionProjectlevelOrganizationallevel,Selectionofprojects:PRIORITIZE,ContributingtoyourBUSINESSRESULTS!LookforSIGNIFICANTGAINSwithinREASONABLETIMINGUsethecorrectPROJECTFILTERS!ValueforthecustomerDefectsperunitCostofpoorqualityCycletimeEnsureLEADERSHIPBUY-IN,Managingforimprovement-Training,.Enhancedimprovementrealisationskills*Leadership*MasterBlackBelt(MBB)*BlackBelt(BB)*GreenBelt(GB)*YellowBelt(YB),Control,Definetheproblem,6SIGMADMAIC,Analyse,Improve,Measure,DefinestepsConfirmgains,goalsFormalisecustomersupplierrelationsGetvoiceofthecustomerintheproject,FormalisethemodifiedprocessImplementSPCEvaluateresultsLearningpoints,DevelopmeasurementsofCTQSelectcriticalimputsPreparedatacollectionRealiseR&RstudyMeasureprocesscapability,Processanalysis(value)DataanalysisRootcauseanalysisStatisticaldatahandling(regression,DOE,multivary),ImaginesolutionsEvaluatesolutionsChooseoptimalsolutionAnalyserisksPlanimplementation,Managingforimprovement:Theroadmap(1),5/Verifyvalidate,1/Define,6SIGMADMADV,3/Analyse,4/Design,2/Measure,BusinesscaseCharterdevelopmentMultigenerationplanProjectrisk,ControlplansMistakeproofingUpscalingValidationImplementationplaning,SIPOCStakeholderanalysisVoiceofthecustomerQFDQrequirements,ConceptgenerationConceptselectionMappingandsimulationProactivereliability,TolerancingDOEModelling,Designexcellence:theroadmap2,Applyprojectmanagementprinciples.Regularmanagementreviewsofprogress,Removingthebarriers,Managingforimprovement-Roadmap(2),Buildinguponteamwork,Teambuilding,Accesstoinformation,Cross-functional,Supportfromotherdepartments,Managingforimprovement-Mobilizing(1),Reward&recognition,Communication,Visualisingresults,Managingforimprovement-Mobilizing(2),Sustainingthegains:projectlevel,ImplementeffectivecontrolplansConductregulartrainingfocussedontheprocessReviewtheimprovedprocessregularly,Sustainingthegains:organizationallevel,CreateasystemtocontinuallyidentifyandlaunchnewprojectsCreatingcriticalmassforachievementcultureBlack,greenandyellowbelttrainingBlackBeltsindailyoperationsDeployment,Xn,SIXSIGMAasmethodology.,Asystematicapproachforbreakthroughimprovementrealisationsusingasolidandsoundlybasedtoolsetdeployedthroughouttheorganization,Breakthrough?,LookforSIGNIFICANTGAINS50%increaseinFirstPassYield50%reductioninScrap50%reductioninDowntime50%increaseinCapacityFocusesonHIGHVOLUME/highriskproductsProjectisworkatleast$250ktothebottomlinePS:applicableforlargevolumeprocesses!REASONABLETIMING:6to8monthsSignificantMOBILIZATIONofthewholecompany(training,approach,.),SIXSIGMAasmethodology.,Asystematicapproachforbreakthroughimprovementrealisationsusingasolidandsoundlybasedtoolsetdeployedthroughouttheorganization,alreadyknown/usednew(e.g.Statistics),Solid&soundlybasedtoolset,.ThinkPROCESS,INPUT,OUTPUT,X1X2X3.,Y,TheFunnelingEffect,OptimizedProcess,30+Inputs,8-10,4-8,3-6,FoundCriticalXs,ControllingCriticalXs,10-15,AllXs,1st“HitList”,ScreenedList,MEASUREProcessmappingMeasurementsystemanalysisCapabilitystudies,ANALYZECause&effectsmatrixFMEAMulti-varistudies,IMPROVEDesignofexperiments,CONTROLControlplansStatiscticalProcessControl(SPC),SIXSIGMAasmethodology.,Asystematicapproachforbreakthroughimprovementrealisationsusingasolidandsoundlybasedtoolsetdeployedthroughouttheorganization,Deploymentthroughouttheorganization,Extensivetrainingprogramofallpotentialprojectleaders.Clearandvisiblemanagementbuy-inandsupport.Asignificantnumberofimprovementprojects.SIXSIGMAimbeddedinthesystemsandprocedures.Integrationintheorganization,2,HowtoimplementSixSigma?,Theimplementationstrategy:Thewayweseeit,Donotcreateaseparateorganization!TheimplementationofSixSigmaisseenasaprojectonitsownuntilitisimbeddedintheorganization!ImplementinWAVES!HavepeopletosupportSixSigmaandpeoplewhomakeithappen.,6sigmawaveimplementation,Mobilizekeydecisionmakers,Evaluatepotentialprojects,Mobilizekeyplayers(leadershipworkshop),GreenBelttraining2weeks,Assess,Deployandpreparenewwaves,Prparation,Implementation,Deployment,BlackBelttraining4weeks,Implementtheprojects,Prepareimplementation,Theroles,SixSigmaSponsor/ChampionFacilitateorsupportimplementationofSixSigma.Leadbyexample:believer,partner,challenger,coach,helper,soundingboard.Setclearpriorities.Providenecessaryresources.Define/suggestnewprojects.Reviewingprogressofprojects.SixSigmaBlackBeltBecatalystfornewcultureandoverallapproach.Reviewprojectchartersusingfilters.Completetheprojects(applyingthemethodandachieveresults).ReportingSharingofexperiencesbetweenotherblackbelts.,Theroles,SixSigmaMasterBlackBeltCoachesagroupofblackbeltswithspecialemphasisonthemethodology.SupportstheprojectselectionprocessConductsseveralformsoftrainingOwnssixsigmatechnicaldevelopmentSixSigmaprojectsponsor/championSupportstheprojectleaderRecognizestheteamEliminateallobstacles/barriersIdentifyprojectopportunitiesSixSigmaTeamMembersSticktoagreedtimingandactions.Actasateam.Communicatewithownlinemanagementontimelybasis.SixSigmaGreenBeltCompletetheproject(applyingthemethodandarchieveresults)(inhisown“fields”)Reporting,3,Conditionsforsuccess,Successconditions,StrongleadershipMobilizeallkeyplayersGoodprojectchartersCreatecriticalmassProvidetherighttrainingontherightmoment.SupportstructureResourcesallocation($andpeople)Profile,availabilityandmanagementoftheprojectleaders(BB,GB)Goodmonitoringandreviewofprojects.StrongstrategicfitCommunication,communication,communication,CharacteristicsofagoodSixSigmaproject,Identifiesaproblemtobesolved,notasolutiontobeimplementedTheproblemisofmajorimportancetotheorganisationclearlyconnectedtobusinessprioritiesandstrategymajorimprovementinperformancemetricsmajorfinancialimprovementClearquantitativemeasuresofsuccessdefineperformancebaselinegoalsforthisproject+duedatetheoreticalperfectperformanceAmbitioustiming-reasonablescope:doablein9to12monthsImportanceiscleartotheorganisation(togetsupport)Projecthastheapprovalandsupportofmanagement(resources,barriers)Projectcharter:contractbetweenprojectmanagerandmanagement,ProjectTitles,ReducehumanerrorsinproductionEliminatedegradantsCapacitydebottleneckingofXYZproductionPerformanceimprovementplantAIncreasecapacityproductionplantsD&EOptimisevisual&semi-autoinspectioninproductionCycletimereductionsolidsproducti

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