Six Sigma Green Belt Course

Six Sigma Overview

About This Module Six Sigma Overview

This module is an overview of Six Sigmas Define phase which

applies primarily to Executive training.

Six Sigma, A Quest for Process Perfection Meet Goals and Attack Variation

What We Will Learn

Six Sigma Overview 1. The many facets of Six Sigma. 2. The driving need for customer satisfaction and how customer satisfaction requires process improvement. 3. Roles, responsibilities and time required of a Six Sigma Team. 4. Technologies and curriculum of Six Sigma methodology 5. Results of other companies that are implementing Six Sigma.

Process Perfection through Defect Reduction

We committed to Six Sigma 100% from the beginning, made no exceptions and insisted that the result would be a fundamental and permanent change in the way we operate the company.

Six Sigma, which is now being used within all business lines across the company to measure and improve the results we produce for customers and shareholders.
Bank of America, Annual Report 2003

Broad application of Six Sigma will allow us realize margin benefits through greater efficiency and through increases in revenues. Its application to our business will be a major pillar of our strategy going forward.
-Douglas A. Warner III, Chairman, JP MorganChase

What is Six Sigma?

Key Focus of Six Sigma - Chain of Causation

Our survival is dependent upon growing the business. Our business growth is largely determined by customer satisfaction. Customer Satisfaction is governed by quality, price and delivery. Quality, price and delivery are controlled by process capability. Our process capability is greatly limited by variation. Process variation leads to an increase in defects, cost and cycle time. To eliminate variation, we must apply the right knowledge. In order to apply the right knowledge, we must first acquire it. To acquire new knowledge means that we must have the will to survive.

6s

Dr. Mikel J. Harry Six Sigma Academy

A Little Six Sigma History ...

Design 1985 - 1992
Refinement 1993-1994 Motorola Texas Instruments Asea Brown Boveri Allied Signal General Electric Nokia Mobile Phones Bombardier, Siebe, ... Lockheed Martin, Sony, Crane, Polaroid, Avery Dennison, Shimano, JP Morgan, City of Fort Wayne Bank of America, American Express

Developed

by Bill Smith, Motorola Quality Manager began at Motorola in 1987 Motorola to win the first Baldrige Award in 1988 companies throughout the world have adopted Six Sigma.

Implementation

Results 1994-1996
Competitive Awareness 1996-1997 New Technology 1997-1998 Enlightenment 1999-2005

Helped

Major

Competitive advantage gained via 6s education!

What is Six Sigma?

Six Sigma, a Strategy and a Measurement of Strategies

Six Sigma is an overall strategy to accelerate improvements in processes and services (create breakthrough). Six Sigma is a measurement of how effective strategies are in eliminating defects and variations from processes and services to increase yield.

= Y = F(x1,

+ x2,

+ x3

+ ... )

Understand and control the xs, and youll never have to ask Y.

Variation is the Enemy

Sigma refers to standard deviation, a measure of variation. Six Sigma refers to a process having six standard deviations (short term) between the target and the nearest specification limit. Six Sigma quality will minimize lost opportunity.
Lower Spec Target Upper Spec

Continuously...

Improve yields Eliminate defects Reduce the cost of poor quality and Reduce cycle time

Lower Control

Process Center

Upper Control 6 Sigma

6 Standard Deviations

...for each process.

Six Sigma Defines Problems Statistically

Focus on Y or X?

Y= f (X)

Y Dependent Output Effect Symptom Monitor

X1 . . . XN Independent Input-Process Cause Problem Control

The output is used to evaluate the process.

If our processes to produce X is so good, why are we constantly inspecting Y?

In Summary...

Six Sigma is a philosophy of doing business (providing any product or service) ... encompassing the methodologies of defect prevention rather than detection ... through the use of statistical tools that can vary from Pareto charts to Design of Experiments (DOE)
Bill Ross

Six Sigma meshes with other improvement activities.

Sources of Variation
Order Forms

Code

2 3

Design

1 2 3

Material

$
Measurement System 2

Process Capability

1 2 3

Supplier and Customer Satisfaction Relationship

Internal Metrics
Cycle Time Cost Defects Delivery Price Quality

External Metrics

Customer Satisfaction is a Business Issue

Robust Designs Customer Requirements Process Capabilities Material Capabilities

Predictable Factory Customer Satisfaction High Quality Superior Reliability Consistent Performance On-time Delivery Lower Costs Business Results

Customer Satisfaction at the Lowest Possible Cost

Defeat competition by understanding and then exceeding customer expectations.

Set stretch goals - target Six Sigma standards

Constantly measure key metrics to detect improvement: Internal Metrics
Delivery Price Quality Cycle Time Cost Defects simplify processes to reduce cycle time reduce cost by increasing efficiency and eliminating non value-added steps

eliminate variation

External Metrics
Six Sigma goals are directly and quantifiably connected to business goals.

Customer Needs Translated into Critical To (CT) Characteristics

Customer Focus Y = f (X1, X2, Xn)
Translation of customer needs into process, service or deliverable requirements in terms of quality, delivery and cost.

Y
Breakdown of the processes required to produce the service or deliverable.

Characteristics of the CT Matrix are: CTQ Critical to Quality CTD Critical to Delivery CTC Critical to Cost

Area where projects are identified by the relationship between service or deliverable requirements and processes. Area where the process parameters that affect the requirements are later identified (X , X , X )
1 2
n

Area where leverage processes are identified.

Customer Focus

CTQ, CTD, CTC and Critical to Processes (CTP)

CTQ Defect Opportunity
A CTQ, CTD or CTC requirement

CTP Control Opportunity

One of the vital few CTP variables which can leverage Y. Leverage Principle

Y = f(X)
Example
Vital Few

Trivial Many

LSL
Product Capability

USL

LSL
Process Capability

USL
Percentage

Pareto Analysis of Process Inputs

84

Y
Probability of Defects

X
Probability of Nonconformance to Standard

10 3 A B C 2 D 1 E

DPU/DPMO

Developing a CT Matrix
Product
System A System B System C

Sub-System 1

Sub-System 2

Sub-System 3

Element A

Element B

Element C

Characteristic 1 Characteristic 2 Characteristic 3 Characteristic 2 Characteristic 3

Operation 2 Operation 3

Process C

Process B

Factor

Tool B

Tool C

CTP

Process A

Characteristic 1

Operation 1

Tool A

Y = f (X)

CTQ

= Leverage Point

CTS, CTQ, CTP Relationships

CTY Tree

Critical to Satisfaction (CTS) Business Success Critical to Quality (CTQ)

...
CTX Tree (Process Tree)
Process Input

Customer Satisfaction

Critical to Process (CTP)

Product Quality

...

CTQ The CT Matrix Structure

CTQ, CTD and CTC Requirements

Process Tree Subsystem Level
All details properly identified All assemblies properly identified Process correctly dimension

Complete list of details and assy delivered

Example of CTS characteristics defined as critical requirements: CTQ, CTD, CTC

Bid Preparation Bid Preparation

Delivery as per schedule

...

Process Tree Subsystem Level

Program or Contract Start-up Program or contract start-up Development of process logistics Technical Data Preparation What document and how definition Process logistics implementation Production of 1st and Subs Tools Management Supplying external services and supplies Supplying data Process elements Application steps Process sub-components Customer order management Management of customer process sequence changes

Testing and Commissioning Testing and delivery of the units Change management Pilot results Scale-up Process improvement Nonconformance management

CTQ Matrix Example

Message/Package Delivery Time

Distance Check-in to Elevators

Distance Entrance to Check-in

Time to Receive Room Key

Length of Check-in Desk

Correct Room Attributes

Bellhop Availability

Primary Want

Secondary Want
Get My Room Key Quickly Get the Room I Reserved Clerk Should Be Friendly Provide Packages & Messages Upon Arrival

The Right Room

Check-In Experience

Resolve Problems Quickly

Information Provide Directions & Advice - Local Provide Information - Hotel Services Help With Luggage My Stuff Short Distance to Carry Luggage

Attractive Uniforms

Message Accuracy

Number of Clerks

Clerk Knowledge

Clerk Demeanor

Clerk Authority

Difference Between Average and Best-in-Class

Customer Focus
Yield
99.9997%

PPMO
3.4 233 6,210 66,807 308,537

COPQ
<10% 10-15% 15-20% 20-30% 30-40%

Sigma
6 World Class Benchmarks

99.976%
99.4% 93% 65% 50%

5
4 3

Industry Average

2
1
PPM 1000000 100000 10000 1000

Non Competitive The Basic Objective

500,000

>40%

Source: Journal for Quality and Participation, Strategy and Planning Analysis

A focus on TDPU reduces cycle time/unit, WIP, inventory carrying costs, delivered defects, early life failure rate and defect analysis and repair costs/unit

100 10 1

Average Company Best-in-Class

3 4 5 6

Sigma Scale of Measure

Difference Between Average and Best-in-Class (Cont.)

Customer Focus 4s
99.4% error free

5s
99.977% error free

6s
99.9997% error free

4s

Expect cold showers 54 hours each year!

6s

Cold showers are reduced to less than 2 minutes a year!

4s

Approximately 6,210 transactions out of every million would be out of spec! 6s

Lights would be out almost one hour per week!
6s

Only three transactions in every million would be out of spec!

Light outage would be reduced to two seconds a week!
Assumes one opportunity

4s

How to Scale the Five Sigma Wall

4s

5s 6s

Requires 27-fold performance improvement! Requires another 69-fold performance improvement!

5s

3s

Design for Six Sigma

6s

Organizational Roles and Responsibilities

Six Sigma Roles
Executives
Own

Project Team Members

Part-time Project-specific

vision, direction, integration, results Lead change

Champions
owner Implement solutions Black Belt managers
Project

All employees
Understand

Green Belts
Part-time Help

vision Apply concepts

Black Belts

Master Black Belts

Full

Black Belts

time Devote 50% - 100% of time to Black Belt activities Train and coach Facilitate and practice problem solving Black and Green Belts Train and coach Green Belts and project teams Statistical problem solving experts

Executives Supply Vision and Objectives

Identify, rank and communicate corporate values and overall strategic objectives and examine ways to maximize customer satisfaction. Identify consistent business metrics. Establish a business scorecard.

Executive Training
Six

Sigma Business Strategy Defining Values Business Measurement Business Benchmarking Implementation Strategy Lessons Learned

Choose high-potential individuals to become Champions and BBs.

Participate in/support training.

Support Champions and Black Belts by consistently removing obstacles to project completion.

Six Sigma is deployed by 6s BBs on a project-by-project basis. Buy-in from the top down is critical. Executives establish the corporate commitment to achieve 6s process performance.

Champions Direct Overall Objectives

Champions lead, plan, facilitate and implement Six Sigma. They direct the companys overall strategic SS deployment objectives.

Identify critical projects and metrics. Develop Six Sigma deployment strategies. Authorization to start approvals. Consistent project reviews.

Champion Training
Six

Sigma Strategy Defining Values Process Characterization & Capability Basic Statistics Graphical Analysis Deploying Six Sigma Financial Management Project Guidelines and Selection

Select and mentor Black Belts and consistently remove obstacles to project completion.

Role of a Six Sigma Black Belt

Six Sigma Roles
In addition to using Six Sigma tools to maximize critical business processes, a Black Belt: Mentors Teaches - a network of supporting individuals - usage of tools and strategies

Coaches - one-on-one

Shares

- new strategies at Symposia, etc.

Discovers - new applications for Six Sigma strategies Identifies - new business opportunities Sells - Six Sigma strategies throughout the organization

To assure business success, a Black Belt must devote AT LEAST 50% of his / her time to Black Belt activities.

Keys to Success
6s

Highly visible top-down management commitment to the initiatives. A measurement system (metrics) to track the progress. Internal and external benchmarking of products, services and processes.

6s

6s

6s
6s

Setting stretch goals (10x, 100x improvement, etc.).

Success stories showing how the tools of improvement can be applied and the results which can be achieved. (Networking) Champions and Black Belts promoting initiatives and providing the necessary planning, teaching, coaching and consulting to all levels of the organization.

6s

Typical Results and Possible Time Allocation for 6s Activities

Six Sigma Roles
The typical Black Belt improvement project requires 4-6 months for completion and yields an average return of $183,000.

Black Belts can conduct 3-4 projects/annually.

The annual benefit per Black Belt exceeds $500K.
Percentage of Time Allocated

100 90 80 70 60 50 40 30 20 10 0
Executives Project Line Team Management Members Green Belts Champions BBs Master BBs

6s

Characterization and Optimization

Breakthrough Technologies for Success
Phase 1: Define

Phase 2: Measure
Characterization Breakthrough Strategy Phase 3: Analyze Phase 4: Improve Optimization Phase 5: Control

Optimization Commitment Region of Success

PPM

The Basic Objective

= Current Level

1000000 100000 10000

Characterization Commitment

1000 100 10 1

Average Company
3

Best-in-Class
4 5 6

Sigma Scale of Measure

Application Roadmap
Define

1. Create Problem Statement 2. Select CTQ Characteristic 3. Define Performance Standards 4. Understand Process and Validate Measurement System 5. Determine Process Capability 6. Finalize Performance Objectives 7. Identify Variation Sources 8. Screen Potential Causes 9. Determine Y=f (x) 10. Establish Operating Tolerances 11. Confirm Results and Validate Improvements 12. Validate Process Capability and Measurement System 13. Implement Process Controls 14. Complete Project Documentation

Measure

Capability OK? N

Measure

Redesign

Analyze

Analyze

Modify Design? N
Improve

Improve

Capability OK? Y
Control

Control

Measurement is the Key to Harvesting the Benefits of Six Sigma

Benchmark
Design for Six Sigma Process Entitlement Process Characterization and Optimization
- - - - - - - - - - - - - - - - - - - - - - - -- - - - -

Basic Tools

What is your baseline?

------------------------- ---

Logic and Intuition

Baseline

Black Belts at Work

Breakthrough Technologies for Success
Select Key Process Create Process Tree Define Performance Variables Create Process Map Measure Performance Variables Establish Performance Capability

D M

Select Performance Variable Benchmark Performance Metric Find Best-in-Class Performance Conduct Gap Analysis Identify Success Factors Define Performance Goal

A
Select Causal Variable Define Control System Validate Control System Implement Control System Audit Control System Monitor Performance Metrics

Select Performance Variable Diagnose Variable Performance Propose Causal Variables Confirm Causal Variables Establish Operating Limits Verify Performance Improvement

Six Sigma Technologies

Breakthrough Technologies for Success
Define Customer Focus Nature of Variables Scales of Measure Competitive Capability Process Capability CTX Tree Technology Capability Process Mapping Organization Capability Process Baselines Static Statistics Business Metrics Six Sigma Projects Dynamic Statistics Continuous Decision Tools DFSS Principles Six Sigma Fundamentals Six Sigma Deployment Special Topics Discrete Decision Tools Special Topics

Opportunities For Defect

Data Collection

Measure

Measurement Statistical Error Distributions

Analyze

Six Sigma Statistics Experiment Design Tools

Process Metrics Robust Design Tools

Diagnostic Tools

Simulation Tools

Statistical Hypotheses Risk Analysis Tools

Improve

Emperical Modeling

Statistical Tolerances

Control

Pre-control Tools

Continuous Discrete SPC SPC Tools Tools

Static Control Systems

Dynamic Control Systems

Process and Quality Audits

Special Topics

= Executive and/or Champion = Black Belt

Black Italics = Management

Black = Core Blue = Advanced

Technologies for Success

Breakthrough Technologies for Success
Six Sigma Breakthrough Technology Tools
Define
Measure Analyze Improve

Control

Analysis of Means ANOVA N-way ANOVA-one-way ANOVA-two-way random Bar Chart Benchmark chart Benchmark sigma Box Plot

X X X X X X X X

X X X X X X X X X X X X X X

X X X X X X X X

Process Maps Cause & Effect Diagram Gage R&R Capability Analysis FMEA SPC DOE Control Plans

X X

X X

X X X

X X X X X

These tools allow teams to focus on problems, not dwell on personalities!

Applying PTAR to Black Belt Development

Breakthrough Technologies for Success
Define Measure Analyze Improve Control

P lan

Management Coordination Meeting Optional Pre-training (2-3 days)

Management Coordination Meeting

Management Coordination Meeting

Management Coordination Meeting

Management Coordination Meeting

T rain
Kickoff (1 week) Measure training (1 week) Measure application (3 weeks) Analyze training (1 week) Analyze application (3 weeks) Improve training (1 week) Improve application (3 weeks) Control training (1 week) Control application (3 weeks)

A pply R eview

Four standard end-of-phase reviews

Realization Review after completion of project

Black Belt Curriculum Overview by Week

1 2 3 4

Understanding the basic concepts of Six Sigma Developing the language of Six Sigma and statistics How to compute and apply basic statistics How to establish and benchmark process capability

Understanding the theory of sampling and hypothesis testing How to apply key statistical tools for testing hypotheses Understanding the elements of successful application planning How to apply/manage the breakthrough strategy How to identify and leverage dominant sources of variation How to establish realistic performance tolerances

The basic principles of experimentation How to design and execute multi-vari experiments How to interpret and communicate the results of an experiment How to plan/execute a variable search study How to manage a Six Sigma project How to manage change in project implementation

Understanding the basics of process control How to construct, use and maintain charts for variable and attribute data How to plan/implement process control systems

Green Belt and Awareness Training for the Company Include

Green Belts

Understanding Six Sigma Process Mapping FMEA MSE SPC Higher level defect reduction

Company-Wide Awareness

Understanding Six Sigma Seven Basic Tools Process Mapping FMEA Data Collecting Some Defect Reduction

Results of 600 Project/Processes

Six Sigma Success Stories

500,000

50%

300,000

Average +68% Improvement

Defects PPM
200,000

Defect-Free Yield (%)

75%

150,000

Auto - Avg. 168,000 ppm

Aero - Avg. 200,000 ppm EMS - Avg. 78% Yield

75,000

98%
January February March April

The entire organization succeeds!

What We Have Learned

Six Sigma Overview 1. The many facets of Six Sigma. 2. The driving need for customer satisfaction and how customer satisfaction requires process improvement. 3. Roles, responsibilities and time required of a Six Sigma Team. 4. Technologies and curriculum of the Six Sigma Breakthrough Strategy. 5. Results of other companies striving for Six Sigma.