Six Sigma - OverviewWhat is Six Sigma?Slide 3Slide 4Slide 5Slide 6Area Under Normal CurveSlide 8Slide 93 Sigma Process6 Sigma ProcessProcess CapabilityMajor Sources of VariabilitySlide 14Slide 15The term “SIX SIGMA”Slide 17SIX SIGMA PROJECTSSlide 19What Is a Six Sigma Project?The Six Sigma RoadmapWhat Is a Six Sigma Model?Six Sigma ToolboxPhase 1: DEFINESix Sigma Toolbox – DefineSlide 26Slide 27Slide 28Define COPQPhase 2: MEASURESix Sigma Toolbox - MeasureData Collection PlanSlide 33Measurement SystemWhere does Total System Variation Occur?Measurement System AttributesSlide 37PRECISIONSTABILITYPhase 3: ANALYZESix Sigma Toolbox - AnalyzeNot all inputs are important……. Only a few will drive the processHow to determine the KPIV’sAnalyze PhasePassive Data AnalysisSlide 46Active Data AcquisitionPhase 4: IMPROVESix Sigma Toolbox - ImprovePhase 5: CONTROLSix Sigma Toolbox - ControlSlide 52Poka-yoke Device CategoriesPoka-yoke DeviceExample of Mistake ProofingSlide 56Slide 57Total Productive MaintenanceStatistical Process Control (SPC)Six Sigma Quality CostsAny Questions, Please?Project Management HumorSix Sigma - Overview Six Sigma - Overview BreakthroughMethodologyY=f(X) Presented by: Ryan M. Ismail, M.Eng, MBATherapeutic Area Program ManagerMerck Research Labs2What is Six Sigma?A structured, methodical approach to process / product improvement and design robustnessAll decisions are based on facts and dataA powerful “Tool Box” is used to identify and eliminate waste through the reduction of underlying process variabilityIt is applicable in both Manufacturing and Transactional (Business) processesIt is implemented through highly trained, motivated individuals called “Black Belts” and “Green Belts” from all functionsSix Elements of Six Sigma1. Genuine focus on the customer•The Voice of the Customer (VOC) is the foundation of the methodology2. Data- and fact-driven management•Use data to prove that solutions work and gains are sustained3. Process focus•Improving processes ensures competitive advantage – delivering real value to customersFrom The Six Sigma Way, by Pande, et al4. Proactive management•Set/track goals, establish priorities, reward fire prevention5. Boundaryless collaboration•Customer-centric; processes transcend departmental silos6. Drive for perfection, tolerate failure•New ideas/approaches involve risk; overcome fear of mistakesSix Elements of Six SigmaDetermine customer need to be satisfiedIdentify the business process that fulfills the needStudy the process, identify variation driversOptimize the processEnsure that customer need is met and fix is sustainedThe Six Sigma ApproachCustomer Focus Throughout ProcessWhat is the Definition ofWhat is the Definition ofSix Sigma?Six Sigma?7Area Under Normal Curve68% OF DATA FALL WITHIN 1 STANDARDDEVIATION OF THE MEAN8Area Under Normal Curve95% OF DATA FALL WITHIN 2 STANDARDDEVIATIONS OF THE MEAN9Area Under Normal Curve99.7% OF DATA FALL WITHIN 3 STANDARDDEVIATIONS OF THE MEAN10LSL3 Sigma ProcessPROCESS 6 LSLUSLPERFORMANCE 6 Cp = 1.001 ProcessPerformance116 Sigma ProcessLSL Cp = 2.00PROCESS 6 LSLUSLPERFORMANCE 12 Cp = 2.00ProcessPerformance12Process CapabilityLCL UCLyUSLLSL6s12sProcess TolerancesPerformance (VOC) Tolerances26sLSLUSLCpLatitudeProcessPerformanceThe Tools Develop The Tools Develop Latitude in Process Latitude in Process CapabilityCapability13Major Sources of VariabilityInsufficientProcess CapabilitySkillsandBehaviorsPoorDesignMeasurement SystemUnstable Partsand MaterialAverage AverageDelivery DeliveryCycle CycleCustomer’s Expectations: 8 Day Order to Delivery Cycle20 1715 230 510 125 416 Day 8 DayExisting Process After ConventionalDelivery Cycle Process Improvement(days) Cycle (days)2 5 8 12 17CustomerWant DateDays Late(+9)Days Early (-6)15 Day SpanWe are pleased with our 50% cycle improvement – however, our customers didn’t feel a thing!799878 Day AverageDelivery CycleCustomerWant DateDays Early (-1)2 7 8 9 172 DaySpanDays Late (+1)6 Process ImprovementDelivery Cycle (Days)By attacking variation and reducing span, we truly met our customer’s expectation for cycle time improvement!Averages vs. Variation15•Effectiveness (customer’s view): meeting customer requirements and creating ‘delight’ Customers feel VARIATION, not averages Win by preventing fires, not fighting them•Efficiency (management view): providing streamlined processes, minimizing internal costsCustomer & Management Views16Sigma or the Standard Deviation of the process distribution allows us to determine and communicate the capability of the process.The “Sigma Level” of a an in-control process is simply the number of standard deviations of the process distribution that consume 1/2 the allowed tolerance band if the process were centered around the target value.The term “SIX SIGMA”Target OutputAcceptanceLimitAcceptanceLimit6 Sigma Performance3.4 defects / million“World Class”3 Sigma Performance66,807 defects / million“Historical Standard”2 Sigma Performance308,537 defects / million“Major League Waste”4 Sigma Performance6,210 defects / million“Current Standard”What is a Six Sigma What is a Six Sigma Project?Project?18"All improvement takes place project by project and inno other way."Dr. Joseph M. JuranSIX SIGMA PROJECTS19The overall goal of the Six Sigma Initiative is to significantly improve customer perceived value and company’s profitability. Projects that fit that criteria are legitimate projects. Six Sigma projects should be linked to the highest levels of strategy and be in direct support of specific WW business and core process objectives.Six Sigma projects should be definable and manageable in scope with high probability of completion in four to six months, or less.A Six Sigma project should offer a significant opportunity for reduction in Cost of Poor Quality (COPQ), in addition to improving such things as customer satisfaction, capacity, and top-line growth.What Is a Six Sigma Project?20What Is a Six Sigma Project? •There are five phases of Six Sigma methodology:1. Define (D)2. Measure (M)3. Analyze (A)4. Improve (I)5. Control (C)Together it is called DMAIC21Six Sigma Road Map – DMAICDefinePick the Right Projects Identify Potential Projects Evaluate Projects Prepare Problem and Mission Statement Goals and ObjectivesMeasureCharacterize the Process and Measure