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6
Overview
SixSigma:-ADefinition-AppliedtoGE-GEQualityInitiative-WhyThisApproach?-OriginofSixSigma-The“BreakthroughStrategy”-ArrivingatSigmaSixSigmaStructureKeyConcepts&ToolsAPracticalExampleAnOverviewNotalotofDetails!!6OverviewSixSigma:AnOver6
Overview
“SixSigma”
Ifwecan’texpresswhatweknowintheformofnumbers,wereallydon’tknowmuchaboutit.Ifwedon’tknowmuchaboutit,wecan’tcontrolit.Ifwecan’tcontrolit,weareatthemercyofchance.MikelJ.HarryPresident&CEOSixSigmaAcademy,Inc.ARigorousMethodforMeasuring&ControllingOurQuality“...willbringGEtoawholenewlevelofqualityinafractionofthe
timeitwouldhavetakentoclimbthelearningcurveonourown.”JohnF.Welch,Jr.1995GEAnnualReport6Overview “SixSigma”6
Overview
WhatDoes“Sigma”Mean?
SigmaisaMeasureoftheConsistencyofaProcessIt(
isAlsothe18thLetterintheGreekAlphabet!6Overview WhatDoes“WhyDoesGENeedAQualityInitiative?GERaisingTheBarNewGoaltobe“BestintheWorld”vs.#1or#2CustomersareExpectingMore,weMustDeliver“Ship-and-fix”ApproachnoLongerToleratedintheMarketAimtoSpeedPastTraditionalCompetitorsin5YearsGoalConsistentwithReducedTotalCostsWeMustAcknowledgeOurVulnerabilitiesPoorQualityThatImpactsCustomersProblemswithNPITooHighInternalCosts6
Overview
WeNeedaMajorInitiativetoMoveFromWhereweAretoWhereweWanttobeWhyDoesGENeedAQualityIni6
Overview
WhyDoesGENeedAQualityInitiative?40%35%30%25%20%10%15%5%CostofFailure(%ofSales)DefectsperMillion3.4233621066,807308,537500,000Sigma654321
EstimatedCostofFailureinUSIndustryis15%ofSales;TakingGEFroma3
toa6
CompanyWillSave~$10.5BillionperYear!6Overview WhyDoesGEWhy“SixSigma”?ProvenSuccessfulin“Quality-Demanding”Industriese.g.,Motorola,TexasInstruments(manyprocessstepsinseries)ProvenMethodtoReduceCostsHighlyQuantitativeMethod–ScienceandLogicInsteadofGutFeelIncludesManufacturing&Service(closetocustomer)andProvidesBridgetoDesignforQualityConceptsHasSupportandCommitmentofTopManagementItWorks!!!Why“SixSigma”?ProvenSuccess6
Overview
Sigma3
4
5
6
SpellingMoneyTime1.5
MisspelledWordsperPageinaBook1
MisspelledWordper30PagesinaBook1
MisspelledWordinasetofEncyclopedias1
MisspelledWordinalloftheBooksinaSmallLibrary$2.7MillionIndebtednessper$1BillioninAssets$570
Indebtednessper$1BillioninAssets$63,000
Indebtednessper$1BillioninAssets$2
Indebtednessper$1BillioninAssets31/2MonthsperCentury21/2DaysperCentury30MinutesperCentury6SecondsperCentury6
isSeveralOrdersofMagnitudeBetterThan3
!!!Sigma:AMeasureofQuality6Overview Sigma3456
Overview
WhereDoes“SixSigma”ComeFrom?
MikelJ.HarryoneoftheOriginalArchitectsPreviouslyHeadedQualityFunctionatABBandMotorola
NowPresident/CEOofSixSigmaAcademyinPhoenix,ArizonaHasConsultedforTexasInstruments,AlliedSignal(andothers)CurrentlyRetainedbyGEtoTeachtheImplementation,DeploymentandApplicationofSixSigmaConcepts&Tools
LearningfromThoseWhoHavehadSuccessWith6
WillAccelerateitsImplementationatGE6Overview WhereDoes6
Overview
So...WhatisSixSigma?
AMeasurementSystem
AProblem-SolvingApproach
ADisciplinedChangeProcess“THESIXSIGMABREAKTHROUGHSTRATEGY”MeasureAnalyzeImproveControl6Overview So...Whati6
Overview
How
DoWeArriveatSigma?Measuring&EliminatingDefectsisthe“Core”ofSixSigmaMeasurementSystemIdentifytheCTQsLookforDefectsinProductsorServices
“CriticaltoQuality”CharacteristicsortheCustomerRequirementsforaProductorService
CountDefectsorfailurestomeetCTQ
requirementsinallprocessstepsDefineDefectOpportunities
AnystepintheprocesswhereaDefectcouldoccurinaCTQ
ArriveatDPMO
UsetheSIGMATABLEConvertDPMOtoSigma
DefectsPerMillionOpportunities23456308,53766,8076,2102333.4PPM
DefectsperMillionofOpportunity
SigmaLevel6Overview HowDoWeA6
Overview
MeasurementSystem23456308,53766,8076,2102333.4PPM
SIGMALEVEL
DEFECTSperMILLIONOPPORTUNITY
IRSTaxAdviceBestCompaniesAirlineSafetyAverageCompanyGEAirlineBaggageDoctor’sPrescriptionRestaurantBills
AverageCompanyin3
to4
RangeSomeSigma“Benchmarks”6Overview Measurement6
Overview
MeasurementSystemAGraphic/QuantitativePerspectiveonVariationAverageValueManyDataSetsHaveaNormalorBellShapeNumberofPeopleArrivingatCRDTime7:007:157:307:458:008:158:308:459:009:156Overview Measurement6
Overview
ProblemSolvingApproachCenterProcessReduceSpreadXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXOff-TargetUnpredictableOn-Target
6
HelpsusIdentifyandReduceVARIATIONdueto:-InsufficientProcessCapability-UnstableParts&Materials-InadequateDesignMargin6Overview ProblemSolTargetUSLLSLTargetUSLLSLTargetUSLLSLCenterProcessReduceSpreadOff-TargetUnpredictableOn-TargetDefects6
Overview
ProblemSolvingApproach“LowerSpecificationLimit”“UpperSpecificationLimit”LessVariationMeansFewerDefects&HigherProcessYields
TargetUSLLSLTargetUSLLSLTarget6
Overview
ProblemSolvingApproachKeyComponentsof“BREAKTHROUGHSTRATEGY”MeasureAnalyzeImproveControl
IdentifyCTQ&CTP(CriticaltoProcess)VariablesDoProcessMappingDevelopandValidateMeasurementSystems
BenchmarkandBaselineProcessesCalculateYieldandSigmaTargetOpportunitiesandEstablish
ImprovementGoalsUseofParetoChart&FishboneDiagrams
UseDesignofExperimentsIsolatethe“VitalFew”fromthe“TrivialMany”SourcesofVariationTestforImprovementinCenteringUseofBrainstorming
andActionWorkouts
SetupControlMechanismsMonitorProcessVariationMaintain“InControl”ProcessesUseofControlChartsand
ProceduresAMixofConceptsandToolsWillAlsoIntegratewithNPIProcess6Overview ProblemSol6
Overview
DisciplinedChangeProcessANewSetofQUALITYMEASURES
CustomerSatisfactionCostofPoorQualitySupplierQualityInternalPerformanceDesignforManufacturability
WillApplytoManufacturing&Non-ManufacturingProcessesandbeTracked&ReportedbyEachBusiness6Overview Disciplined6
Overview
StructureQualityCouncil
Members:Labs&Functions“Pipeline”&BBProjectPrioritiesTraining&CertificationMeasurements&RewardsCommunicationsChampions
Leadership:OverallInitiativeProjectFundingHR:Training&RewardsBlackBelts
Lead6
ProjectTeams“Measure/Analyze”“Improve/Control”OutwithBusinessesHereatCRDMasterBlackBelts
Teach6
MentorBlackBeltsMonitorBBProjectsWork“Pipeline”ProjectsAResourcePoolTeamMembers
Learn/Use6
ToolsWorkonBBProjectsPartofTheJobOutwithBusinesses6
ProjectswiththeGEBusinesses
6Overview StructureQuS标准培训教材S标准培训教材
TabulationofGESixSigmaResultsTabulationofGESixSigmaResBenefitTarget&UpdateCurrentbenefitslevel@10.865MMQPIDloading:
Carryoverfrom1999: 4.059CompletedProjects2000: 3.313ActiveProjects2000:
3.285Total: 10.865MMBenefitTarget&UpdateCurrentS标准培训教材
KeyConcepts&Tools6
Overview
KeyConcepts&Tools6Overv6
Overview
ChangingFocusFromOutputtoProcess
Y
Dependent
Output
Effect
Symptom
Monitor
X1...XN
Independent
Input-Process
Cause
Problem
Control
IdentifyingandFixingRootCausesWillHelpusObtaintheDesiredOutputf(X)Y=6Overview ChangingFoProcessCapability6
Overview
SustainedCapabilityoftheProcess(longterm)USLTTime1Time2Time3Time4InherentCapabilityoftheProcess(shortterm)LSLTargetOverTime,a“Typical”ProcessWillShiftandDriftbyApproximately1.5
ProcessCapability6Overview 6
Overview
“ShortTermCentered”versus“LongTermShifted”SixSigmaCenteredLSLUSLT
ProcessCapabilitySHORTTERM.001ppm.001ppm+6
LONGTERMLSLUSLT3.4ppmSixSigmaShifted1.5
ProcessCapabilityHigherDefectYieldinLongTermProcessCapabilitythanShortTermProcessCapability-6
4.5
1.5
6Overview “ShortTerm6
Overview
TyingitAllTogethershiftCDAB0.51.01.52.02.5123456CONTROLPOORGOODTECHNOLOGYPOORGOODABCD
GoodControl/PoorTechnologyPoorControl/PoorTechnologyPoorControl/GoodTechnology
WORLDCLASS!!!
shortterm
ProblemCouldbeControl,TechnologyorBoth6Overview TyingitAl6
Overview
ShortTermCapabilityShortTermCapabilityRatio(Cp)Cp=
LSL-6
USL
ExampleUSLLSL3.0
==-3.0
6
3.0
-(-3.0
Cp=Cp=1LSLUSL2.5
0.5
3.0
ProcessMean
TTargetA3
Process
ThePotentialPerformanceofaProcess,ifitWereonTarget6Overview ShortTerm6
Overview
LongTermCapability
(Cpk)CpCpk=LongTermCapabilityRatioExampleCp=1(previouschart)Target=-0.5
=0
Cpk1-(-0.5
-0
3
=Cpk=0.83-Off-TargetPenalty
Target-3
ThePotentialPerformanceofaProcess,CorrectedforanOff-TargetMeanLSLUSL2.5
0.5
3.0
ProcessMean
TTargetA3
Process6Overview LongTermC6
Overview
Z-ScaleofMeasureZ
=AUnitofMeasureEquivalenttotheNumberofStandardDeviationsthataValueisAwayfromtheTargetValue-3.0-0.53.0Z-Values
USLLSL2.5
0.5
3.0
=ProcessMean
Z
TTarget0A3
Process6Overview Z-ScaleoTheDefinitionsofYieldFinalTestProcess(Process4)PassProcess3Process1Process2100(UnitsTested)65708291Yield1Yield2Yield3
Loss1
Loss3Rejects
Loss299125
FirstTimeYield(Yft)=UnitsPassedUnitsTested=6570=0.93
RolledThruputYield(Yrt)=(Yield1)(Yield2)(Yield3)....=91826570(((())))=0.65100917082
NormalizedYield(Ynm)==1/n(Yrt)(0.65)1/4=0.89(n:TotalNumberofProcesses)6
Overview
YieldExclusiveofReworkProbabilityofZeroDefectsAverageYieldofAllProcessesTheDefinitionsofYieldFinal6
Overview
TheImpactofComplexityTheImpactofComplexityRolledRolled
Yield
YieldNumberofOperationsNumberofOperations1.001.000.900.900.800.800.700.700.600.600.500.500.400.400.300.300.200.200.100.100.000.001101001,00010,000100.0001,000,0001101001,00010,000100.0001,000,000ProcessMeanCenteredonEachOperationProcessMeanCenteredonEachOperation1101001,00010,000100.0001,000,0001101001,00010,000100.0001,000,000RolledRolled
Yield
YieldNumberofOperationsNumberofOperations1.001.000.900.900.800.800.700.700.600.600.500.500.400.400.300.300.200.200.100.100.000.00
AstheNumberofOperationsIncreases,aHighRolledYieldRequiresaHigh
forEachOperation5
4
3
6
6
5
4
3
ProcessMeanShifted1.5
atEachOperation6Overview TheImpact6
Overview
Baselining&BenchmarkinganExistingProcessp(x)DefectsBenchmarkBaseline
Entitlement
BenchmarkAWorld-ClassPerformance
EntitlementAchievablePerformanceGiventheInvestmentsAlreadyMade
BaselineTheCurrentLevelofPerformanceBaselining=CurrentProcess/Benchmarking=UltimateGoal6Overview BaseliningSomeBasic6
-RelatedTools6
Overview
ScatterDiagram
OverSlept
CarWouldNotStartWeather
FamilyProblemsOtherParetoDiagramFrequencyofOccurenceReasonsforBeingLateforWorkArrivalTimeatWorkTimeAlarmWentOffSomeBasic6-RelatedTools6MaterialsPeopleTheHistogramControlCharts6
Overview
SomeBasic6
-RelatedToolsTheFishboneDiagramMeasurementsMethodsTechnologyStatementCause&EffectBeingLateforWorkPlotofDailyArrivalTime9:157:007:157:307:458:008:158:308:459:00AverageValueNumberofPeopleArrivingatCRDTimeMaterialsPeopleTheHistogramCo6
Overview
LCLUCLRangeChartROutofControlConditionLCLXUCLXBarChartSomeBasic6
-RelatedToolsLCL=LowerControlLimitUCL=UpperControlLimitX=MeanR=AverageRangeMonitorsChangesinAverageorVariationOverTime6Overview LCLUCLRangeDesignofExperiments6
Overview
SCREENINGOPTIMIZATIONCHARACTERIZATION
ForExperimentsInvolvingaLarge
NumberofFactorsUsefulinIsolatingthe“VitalFew“fromthe“TrivialMany”
ForExperimentsInvolvingaRelatively
SmallNumberofFactorsUsefulWhenStudyingRelativelyUncomplicated
Effects&Interactions
ForExperimentsInvolvingOnly2or3FactorsUsefulWhenStudying
HighlyComplicatedEffects&RelationshipsDOEisMoreEffectiveThanTestingOneFactorataTimeDesignofExperiments6Overvi6
Overview
Usingthe“OneFactorataTime”Approach
ReduceCommutetoWorkto15Minutes(withoutworkinganabnormalworkschedule)
TheGoalTheVariables
TimeofDeparturefromHome&RouteTakentoWorkTheApproach
Try3PotentialRoutesatCurrentDepartureTime(7:45),SelecttheBest&VarytheDepartureTime‘tilwegetto15MinutesTimeofDeparture3217:157:307:458:008:15RouteCombinationSelectedTheResultUseRoute2andLeaveat7:15toReachGoal6Overview Usingthe“6
Overview
Using“DesignofExperiments”(DOE)TimeofDepartureDOE(i)BetterAccountsforInteractiveVariablesMissedby“OneFactorataTime”,and(ii)EfficientlySearchesfor“SweetSpot”inParameterSpaceTheVariables
TimeofDeparturefromHome&RouteTakentoWorkTheApproach
VarytimeofDepartureandRouteSimultaneously,inaSystematicFashionTheResultABetterCombinationAllowing15MoreMinutesofSleep!!!ActualCommutingTimeAverages
(minutes)3217:157:307:458:008:15Route172023211915182019161215212018
OriginalConclusion
BestCombination“SweetSpot”
ReduceCommutetoWorkto15Minutes(withoutworkinganabnormalworkschedule)
TheGoal6Overview Using“Desi
APracticalExample
(The“Cookbook”)6
Overview
APracticalExample6Overvi6
andBakingBreadYEAST
FLOURUsinga12StepProcess6
Overview
The“BETTERBREAD”Company6andBakingBreadYEASTFStep1Selecting“CriticaltoQuality”(CTQsorY)WhatisImportanttotheCustomer?RiseTextureSmellFreshnessTasteY=Taste!!6
Overview
MeasureStep1Selecting“CriticalStep2DefiningPerformanceStandardsforCTQsorY6
Overview
HowCouldWeMeasureTaste(Y)?PanelofTastersRatingSystemof1to10Target:AverageRatingat8Desired:NoIndividualRatings(“defects”)Below7Y=12345678910TargetDefectsWorstBestButIsthistheRightSystem?MeasureStep2DefiningPerformanc6
Overview
Step3ValidatingtheMeasurementSystemforYHowCouldWeApproachThis?BlindfoldedPanelRatesSeveralLoafSamplesPut“Repeat”PiecesfromSameLoafinDifferentSamplesConsistentRatings*onPiecesfromSameLoaf=“Repeatability”ConsistentRatings*onSamplesAcrossthePanel=“Reproducibility”
“Repeatability”&“Reproducibility”SuggestValidMeasurementApproach
PanelMember
Loaf1
Loaf2
Loaf3
A5
8
9B 4
9
1C 4
9
2D 8
9
8E 4
8
2F 5
9
1G 8
9
2*Within
OneTasteUnitMeasure6Overview Step36
Overview
Step4EstablishProductCapabilityforY(Taste)Thisisa3
Process!7Defects(ratingsbelow7)24Ratings(fromourpanel)=.292292,000Defectsper1,ooo,oooLoavesOR765432112345678910#ofRatingsRating64321143Defects<7Target=8AnalyzeHowDoWeApproachThis?BakeSeveralLoavesUnder“Normal”ConditionsHaveTasterPanelAgainDotheRatingAverageRatingis7.4
ButVariationistooGreatfora6
Process3x10+4x9+6x8+4x7+3x6+2x5+1x4+1x31+1+2+3+4+6+4+36Overview Step46
Overview
Step5DefineImprovementObjectivesforY(Taste)HowdoweDefineImprovement?BenchmarktheCompetitionFocusonDefects(i.e.tasterating<7)DetermineWhatisan“AcceptableSigmaLevel”SetImprovementObjectivesAccordinglyMaybea5
ProcessWillSuffice!1,000,000-100,000-.............................10,000-.............................1,000-.............................100-.............................10-.............................1-234567“BETTERBREAD”
BakingProcess
BestCompetitor
RangeforImprovement
DefectsPerMillionSigmaScale
Freihofer
WONDER
PepperidgeFarm
SunbeamAnalyze6Overview Step56
Overview
Step6IdentifySourcesofVariationinY(Taste)HowdoweDeterminethePotentialSourcesofVariation(Xs)?HavetheChefsBrainstormSomeLikelyOnesMightbe:-AmountofSaltUsed-BrandofFlour-BakingTime-BakingTemperature-BrandofYeast
YEAST
FLOURMultipleSources:Chefs,Suppliers,ControlsAnalyze6Overview Step66
Overview
Step7ScreenPotentialCausesofVariation(Xs)HowdoweScreenforCausesofVariation(Xs)?DesignanExperimentUseDifferentSourcesofPotentialVariationHavePanelRatetheBreadUsedintheExperimentResultsLeadtothe“VitalFew”CausesYEAST
FLOURSourceConclusionNegligibleMajorCauseNegligibleMajorCauseNegligibleFocusonThe“VitalFew”Improve6Overview Step76
Overview
Step8DiscoverVariableRelationshipsBetween“VitalFew”(Xs)andYHowdoweFindtheRelationshipBetweenthe“VitalFew”(Xs)andTaste(Y)?ConductaMoreDetailedExperiment
Focus:OvenTemperaturefrom325to375and3BrandsofFlourRUN#TEMPBRAND1325A2325B3
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