Six Sigma Green Belt Six Sigma Overview What
Six Sigma Green Belt Six Sigma Overview - What is Six Sigma? -6 -4 -2 0 2 4 6
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
Six Sigma Green Belt Six Sigma Includes… Master Black Belts, Green Belts Training Business Process Council Sponsors/Champions DMAIEC Teams DFSS Sigma Calcs DASHBOARDS that Drive to Achieve Strategy Change Acceleration Rewards, Recognition, Promotions, Bonuses: NOT OPTIONAL! DOE Strategy Processes Projects ACTIVE Leadership Lean Sigma Six Sigma can seem overwhelming! What IS 6 ?
Six Sigma Green Belt Sigma Is a Measure of Process Capability. . . Customer Requirement Sigma DPMO 1 2 3 4 5 6 680, 000 298, 000 67, 000 6, 000 400 3. 4 4 2 5 6 3 1 DPMO – Defects per Million Opportunities …that focuses on the average and variation of the output.
Importance of Reducing Variation Six Sigma Green Belt · To increase a process performance, you have to decrease variation · Less variation provides � � Greater predictability in the process Less waste and rework, which lowers costs Products and services that perform better and last longer Happier customers
What Is the Goal? Six Sigma Green Belt Six Sigma is about satisfying customer needs profitably From GE Capital’s Six Sigma Vision
Six Sigma Green Belt Six Sigma’s Methodologies gm Si r. S ix Fo gn si C E AI De Improve existing processes so that their outputs meet customer requirements DM Design new products and processes that meet customer needs a Alignment & Linkage to Business Strategy & Transformation Objectives Six Sigma Process Management Control and Manage cross-functional processes to meet business goals
How Can Six Sigma Help Us? Six Sigma Green Belt · Provides a standard toolkit to improve business processes · Makes processes transparent, manageable · Enables fact-based decision making · Provides a platform for profitable growth · Aligns organizational and process goals · Helps establish customer focus · Establishes a common language
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
Six Sigma Green Belt What Is Sigma? Sigma is the scale that compares the output of a process to customer or design specifications. Customer spec FREQUENCY Customer spec 70 80 90 95 100 Dimension Getting better requires reducing the variation and moving the average away from the spec limit.
Six Sigma Green Belt Sigma Advantages Which process is performing best? PROCESS PERFORMANCE Call servicing 32 seconds vs goal of 35 Manufacturing Cable 98% defect free Accounts Receivable 33 days average aging vs goal of 40 Customer Service 82% rated 4 or 5 on responsiveness The Sigma Scale provides a common metric for comparison.
Six Sigma Green Belt Sigma Advantages Percent DPMO 93% 3. 0 66, 800 98% 3. 5 22, 700 99% 4. 0 6, 210 99. 87% 4. 5 99. 9997% 6. 0 1, 350 3. 4 99% seems outstanding; but 6, 210 DPMO reveals significant room for improvement.
Calculating the “Sigma Level” Six Sigma Green Belt “Counting Defects” Approach: · A packaging process is required to put at least 5 kg. of fertilizer in each bag. In addition, the fill date must be stamped on the bag. · Last weeks performance: � Bags produced (units) – 10, 000 � Under-filled bags – 62 � Fill dates missing – 21 � Number of defect opportunities - 2 · Sigma Calculation: From Sigma Table: Sigma Level ~ 4. 1
Six Sigma Green Belt Sigma Conversion Table Long-Term Process Yield (%) Short-Term Sigma DPMO 6. 68 0 933, 193 8. 08 0. 1 919, 243 9. 68 0. 2 903, 199 11. 51 0. 3 884, 930 13. 57 0. 4 864, 334 15. 87 0. 5 841, 345 18. 41 0. 6 815, 940 21. 19 0. 7 788, 145 24. 20 0. 8 758, 036 94. 52 3. 1 54, 799 95. 54 3. 2 44, 565 96. 41 3. 3 35, 930 97. 13 3. 4 28, 716 97. 73 3. 5 22, 750 98. 21 3. 6 17, 864 98. 61 3. 7 13, 903 98. 93 3. 8 10, 724 99. 18 3. 9 8, 198 99. 38 4 6, 210 99. 53 4. 1 4, 661 27. 43 0. 9 725, 747 30. 85 1 691, 462 34. 46 1. 1 655, 422 99. 65 4. 2 3, 467 4. 3 2, 555 38. 21 1. 2 617, 911 99. 74 42. 07 1. 3 579, 260 99. 81 4. 4 1, 866 46. 02 1. 4 539, 828 99. 87 4. 5 1, 350 4. 6 968 50. 00 1. 5 500, 000 99. 90 53. 98 1. 6 460, 172 99. 93 4. 7 687 4. 8 483 4. 9 337 57. 93 1. 7 420, 740 99. 95 61. 79 1. 8 382, 089 99. 97 65. 54 1. 9 344, 578 99. 98 5 233 99. 98 5. 1 159 69. 15 2 308, 538 72. 57 2. 1 274, 253 99. 989 5. 2 108 5. 3 72 75. 80 2. 2 241, 964 99. 9927 78. 81 2. 3 211, 855 99. 9951 5. 4 48 81. 59 2. 4 184, 060 99. 9968 5. 5 32 5. 6 21 84. 13 2. 5 158, 655 99. 9979 86. 43 2. 6 135, 666 99. 99866 5. 7 13 5. 8 8. 5 88. 49 2. 7 115, 070 99. 99914 90. 32 2. 8 96, 801 99. 99946 5. 9 5. 4 91. 92 2. 9 80, 757 99. 99966 6 3. 4 93. 32 3 66, 807
Calculating the “Sigma Level” Six Sigma Green Belt When Process Data is Continuous: · A packaging process is required to put at least 5 kg. of fertilizer in each bag. · Last weeks performance: � Bags produced (units) – 10, 000 � Mean Fill Weight: 5. 1 kg. � Standard Deviation of Fill Weight: 0. 03 kg. · Sigma Calculation: “Short-Term Sigma Level
Attacking Problems—Pre-Six Sigma Green Belt PRACTICAL PROBLEM PRACTICAL SOLUTION NEXT PROBLEM In some cases, effective. . . But can result in fire fighting and in recurring problems.
The Six Sigma Way to Attack Problems Define Six Sigma Green Belt PRACTICAL PROBLEM STATISTICAL PROBLEM Measure PRACTICAL SOLUTION STATISTICAL SOLUTION Analyze Control Execute Identify NEXT PROBLEM What Factors Drive Performance? How Can We Prevent Problem Reoccurrence?
Six Sigma Green Belt The Power of the DMAIEC. . . Not just an assortment of tools, but what to do at each step of the improvement process. Analyze • • • Do. E Regression ANOVA t-tests Process Analysis Charter VOC SIPOC CE Matrix • QC Chart • Documentation • Monitoring Improve • Select Solutions • Risk Analysis Execute • • Planning Piloting Planning Implementation Measure Define • • Control • • Data Collection Plan Gage R&R Control Chart Capability Analysis Common language and synergy of employing a standard improvement approach
The DMAIEC Way to Attack Problems PRACTICAL PROBLEM STATISTICAL SOLUTION PRACTICAL SOLUTION Six Sigma Green Belt DEFINE: We are not consistently achieving “Ready for Control” (Y). MEASURE: There was a lot of variation in “Y” - poor performance (RFC = 35%, 1. 1 ). Determined RFC was a function of (1) boiler tube failures, (2) excessive cooldown (previous shutdown), (3) turbine first-stage metal temperature control, and (4) operator errors. The boiler tube failures and temperature control were major contributors ANALYZE: Pareto Analysis & Weibull Analysis of boiler tube failures revealed inadequate water/steam flow in the ends of the waterwall tubesheet IDENTIFY/EXECUTE AND CONTROL: Design changes improving flow distribution were implemented and process is currently achieving RFC 91% of the time (2. 7 ) (other countermeasures also contributing).
Design For Six Sigma (DFSS)…What is it? ? · · · · Six Sigma Green Belt A process - a more structured approach to design A tool set An enhancement to our current design process A tool for assessing and mitigating risk Teamwork Customer focused A culture change “…a continuation of the six sigma tool set being applied specifically to process, product, or service design. ”
Six Sigma Green Belt DFSS – “ 50, 000 foot” View Define Measure • Launch The Project • Identify Customers Define Outcomes Define State of Current Customer Knowledge Scope Project Identify Stakeholders Select Team Determine Project Approach Create Project Plan Define Project Controls Develop & Implement Customer Research Plan Translate Customer Needs to Product/ Service CTQ’s Specify Targets, Tolerance Limits & Sigma Targets Explore • Develop Product/ Service Necessary Functions Develop Conceptual Product/ Service Designs Develop High. Level Production Processes Predict Capability & Evaluate Gaps Design Validate • Develop Detailed Product & Service Designs Develop Detailed Production Processes Refine Capability & Gap Evaluation, Perform Tradeoffs Develop Process Control & Validation Plans Implement • Build Pilot Processes • Build Full-Scale Processes, Train Staff Validate Pilot Readiness Perform Start-up Testing Perform Pilot Testing Analyze Gaps, Determine Root Causes Evaluate Scaleup Potential Analyze Gaps, Determine Root Causes Transition to Process Owners Evaluate & Close Design Project Develop Implementation & Transition Plans - Design Review
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
Six Sigma’s Broad Application Six Sigma Results Six Sigma Green Belt • J&J over $1 Billion in 2 years • GE Capital over $1 Billion in value in 1996. • JP Morgan created $510 Million in value in year one • AIG found $38 million in revenue from one of first nine projects · Sigma often reveals that less than 10% of total service process time is devoted to value-added work. · Measuring the “soft stuff” becomes not only possible but profitable. � Quality of Deal teams. VOC says experience in industry and size of deal were the decisive factors in which firm to engage for an IPO. Quantified & easily measured. � Quality of Communications in a leasing business. Do you notify me of changes in schedule, do I have a designated rep, do you return calls, emails etc within 8 hours? Quantified & easily measured. � Quality of Customer Contact. “ 10, 5, first and last” teller measures. Quantified & easily measured
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
Six Sigma Challenges Six Sigma Green Belt New (? ) Ways of Thinking. . . · · · · · Customer Thinking (customer specs) Process Thinking (leading indicators) Statistical Thinking (variation) Causal Thinking [y = (x 1, x 2, x 3 … xn)] Experimental Thinking (data-driven hypothesis testing) Control Thinking Stretch Thinking Adopting Common language/way of thinking about problems Accountability Thinking The real Six Sigma advantage… the transformation of the culture.
Six Sigma Green Belt What is Six Sigma? • What is it? • How does it work? • What are the Benefits? • What are the Main Challenges? • What will it take?
General Electric – The Benchmark! Six Sigma Green Belt “Senior leadership, especially Jack Welch, provided unyielding commitment to get the initiative going and ensure its continued success. This will not be easy for other companies to copy. ” Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE, ” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35 -44.
General Electric – The Benchmark! Six Sigma Green Belt “Six Sigma was directed toward specific, tangible objectives, including financial objectives. The culture changed as a result of delivering tangible benefits, not because of a focus on the culture itself. ” Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE, ” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35 -44.
Six Sigma At 3 M Six Sigma Green Belt · 500 Black Belts and Master Black Belts “for ever and ever” · Each has a two-year assignment. · All 28, 000 salaried and technical people trained at least at Green Belt level. Many hourly people selected also for Green Belt training. · Major goal is to have for first time common approach to problem solving, new product development, and measurement across entire company. W. James Mc. Nerney, Jr. CEO, 3 M Company, 25 June 2002
Twenty Key Lessons Learned Six Sigma Green Belt 1. The time is right. 2. The enthusiastic commitment of top management is critical. 3. Develop an infrastructure. 4. Commit top people. 5. Invest in relevant hands-on training. 6. Select initial projects to build credibility quickly. 7. Make it all pervasive, and involve everybody. 8. Emphasize DFSS. 9. Don’t forget design for reliability. 10. Focus on the entire system. Gerald J. Hahn, “ 20 Key Lessons Learned, ” Six Sigma Forum Magazine, May 2002, pages 28 -34.
Twenty Key Lessons Learned Six Sigma Green Belt 11. Emphasize customer CTQs (critical to quality). 12. Include commercial quality improvement. 13. Recognize all savings. 14. Customize to meet business needs. 15. Consider the variability as well as the mean. 16. Plan to get the right data. 17. Beware of dogmatism. 18. Avoid nonessential bureaucracy. 19. Keep the tool box vital. 20. Expect Six Sigma to become a more silent partner. Gerald J. Hahn, “ 20 Key Lessons Learned, ” Six Sigma Forum Magazine, May 2002, pages 28 -34.
Six Sigma Green Belt Shareholder Value Customer Loyalty/Revenue Growth Cost/Working Capital Reduction Business Dashboards Six Sigma Methodologies & Tools Voice of Change Process the Customer Management The Essential Role of Leadership
The Strategic Process-Management Approach Six Sigma Green Belt 1. Identify Core Business Processes and Strategic Opportunities 2. Define Process Goals that lead to Competitive Advantage 3. Determine the Process Measures needed to evaluate Process Performance 5. Project Selection 4. Process Management Identify & Prioritize Performance Gaps Develop Process Goals & Dashboards Identify Priority Projects Validate Measurement & Causal Relationships Charter, Launch and Support Projects Assign and Build Accountabilities
Six Sigma Companies - Characteristics Six Sigma Green Belt · Start with a prioritized list of customer and business requirements and specifications · Have a clear sense of process owners · Track performance over time · Analyze causes of process and output variation with statistical and process analysis tools · Think systematically about solutions and determine financial return (the ROI may not be there to move from 4. 5 to 6. 0 Sigma) · Standardize processes to hold the gains Six Sigma is prioritized, disciplined problem solving to deliver on-target performance with minimum variation.
Six Sigma Summary Six Sigma IS’s: · A Framework to Improve Performance · Applicable to Every Function and Business · About Business Performance Six Sigma Green Belt Six Sigma NOT’s: · The Solution for Everything · Applicable Only to Manufacturing · It’s Just About Statistics
Using 6 to Achieve Your Co’s Objectives Six Sigma Green Belt 1. Large Group Discussion: What are the Your Company Business Objectives/Opportunities? 2. As a small group, discuss how the Six Sigma Approach can help Your Company Achieve the Business Objectives. 3. What will Six Sigma not achieve, relative to the Objectives? 4. Summarize your team conclusions on a flipchart and be prepared to discuss your list with the large group.
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