Six sigma introduction

An introduction to 6 Sigma. Can be used for Yellow Belt or all employees training.

1. INTRODUCTION Why six and Why Sigma? N

2. Slide 2 AGENDA Definitions: What is Six Sigma? … Why six and why sigma? Six Sigma as a statistical measure. Six Sigma as a management Philosophy. Six Sigma as a combination of people power and process power. Process Power "DMAIC": Define. Measure. Analyze. Improve. Control. People Power, Who does what? The 6 Sigma Organization. The Driving Force (Champions) The Project Owner The Black Belts and the Green Belts The Financial Representative.

3. Slide 3 Sigma:  or ? Greek Alphabet Examples:  -  (Omega)  -  (Pi)  -  (Delta)  -  (Zeta)  -  (Psi, pronounced si)

4. Slide 4 Why 6? & Why  ? The concept originated by mathematicians (statisticians specifically) Example: a group of a thousand people The resulting curve

5. Slide 5 m m+s m-s m-2s m-3s m+2s m+3s 6s 4s 2s 99.99966% 69.1% 99.379%

6. Slide 6 2 3 4 5 6 308,537 66,807 6,210 233 3.4 s PPM Process Capability Defects per Million Opportunity 6 Sigma??? % Non-Defective 69.1% 93.32% 99.379% 99.9767% 99.99966%

7. Slide 7 Technical definition of s is a measurement of Variation. It is a measure of how widely values are dispersed from the mean value. s is the standard deviation of the normal Distribution 6 s is a 3.4 defects per million opportunities . s is a measure of process perfection.

8. Slide 8 The Focus of a Six Sigma Organization Customers Shareholders Processes Financial Results $ People

9. Slide 9 To increase a process performance, you have to decrease variation. Importance of Reducing 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 Defects Defects Too early Too late Delivery Time Reduce variation Delivery Time Too early Too late Spread of variation too wide compared to specifications Spread of variation narrow compared to specifications

10. Slide 10 Sigma Area Spelling Money Time 3 Floor space of a small hardware store 1.5 misspelled words per page in a book $2.7 million indebtedness per $l Billion in assets 3 1/2 months Per century 4 Floor space of a typical living room 1 misspelled word per 30 pages in a book $63,000 indebtedness per $l Billion in assets 2 1/2days per century 5 Size of the bottom of your telephone 1 misspelled word in a set of encyclopedias $570 indebtedness per$l Billion in assets 30 minutes per century 6 Size of a typical diamond   1 misspelled word in all the books in a library $2 indebtedness per $l Billion in assets 6 seconds per century Examples of Sigma performance

11. Slide 11 It is a management philosophy A customer based approach realizing that expensive defects. 6 Sigma is a problem-solving methodology For identifying and eliminating waste in any business process including administration, manufacturing, customer service and transactions. 6 Sigma is a process Define, Measure, Analyze, Improve and Control – DMAIC A non-statistical definition of 6 Sigma 3.4 defects per million is 1 in 300,000. As there are 50,000 airplanes over Europe every day, this means there will be one crash landing every week!

12. Slide 12 Would 99.5% defect free be OK? NO! 99.5 % means:---- 2 or more accidents per day at major airports Out of 10,000 parts delivered, 50 are incorrect Every 5 of 1000 brake pads are faulty 10,000 lost articles of mail every 30 minutes 100,000 wrong drug prescriptions each year 2,500 incorrect surgical procedures each week

13. Slide 13 Constant quest for perfection to meet customer needs Fact-based, data-driven decision making Focusing the best people on the highest priorities Improving our processes Precise alignment of actions with strategy Measuring bottom-line impact Transforming how people work 6 Sigma is About Success – It is a Culture of;

14. Slide 14 Seven Principles of Problem-Solving Techniques Empower Yourself Commit yourself to the vision of 6 Sigma Embrace Customers Anticipate and deliver what the Customer wants Discover the “$ tealth ” factory Learn the Real cost of doing it wrong Expose the “Vital Few” Identify factors that will give you “most bang for the buck” Empower People Train & Trust the “Best of the Best” Harness the Magic of Data Use the method (D-MA G IC) - without the G for Guesswork Improve Constantly Persist in the Relentless Journey to 6 Sigma Success

15. Slide 15 Marketing Sales Product Development Product Manufacturing Customer Service Logistics Accounts Receivable Billing/Contracts 6 Sigma Applies to the Whole Business 6 Sigma applies to all sectors of the Company A fault in one part of the sequence affects the whole process Right are some core processes that are common to many businesses.

16. Slide 16 6 Sigma Triangle DMAIC: Improve existing processes, products, services, and plants to 6 Sigma quality Leverage and sustain the gains achieved by improvement and creation DMEDI: Create new processes, products, services, and plants to 6 Sigma quality

17. The Six Sigma Project DMAIC Cycle Define What is the business case for the project? Identify the customer Current state map Future state map What is the scope of this project? Deliverables Due date Slide 17 D

18. The Six Sigma Project DMAIC Cycle Slide 18 M Measure What are the key metrics for this business process? Are metrics valid and reliable? Do we have adequate data on this process? How will I measure progress? How will I measure project success?

19. The Six Sigma Project DMAIC Cycle Slide 19 A Analyze Current state analysis Is the current state as good as the process can do? Who will help make the changes? Resource requirements What could cause this change effort to fail? What major obstacles do I face in completing this project?

20. The Six Sigma Project DMAIC Cycle Slide 20 I Improve What is the work breakdown structure? What specific activities are necessary to meet the project's goals? How will I re-integrate the various subprojects?

21. The Six Sigma Project DMAIC Cycle Slide 21 C Control During the project, how will I control risk, quality, cost, schedule, scope, and changes to the plan? What types of progress reports should I create? How will I assure that the business goals of the project were accomplished? How will I keep the gains made?

22. Slide 22 Example of a Process An analysis of business Inputs – Process’s - Output Measured against the requirements of our customers… ……and the market A simple process - Take a Drinks Vending Machine …. Decide….. Insert Coin Press Button Selects can Can drops Retrieve can Open can Drink content Customer Satisfaction!!

23. People Power, Who does what? Karate and the Belts The 6 Sigma Organization. The Driving Force : The Executive Champion the Deployment Champion The Project Owner The Black Belts The Green Belts The Financial Representative Slide 23

24. Slide 24 What has this got to do with Karate? Terminology well known, whereas….. The terms “Engineer,” “Statistician”, “Auditor” do not reflect the complexity of the job Karate belts denote “expertise & discipline” Black belt are skilled tacticians Yellow belts are beginners Green, in-between

25. Slide 25 The Belts….. Who are they? Yellow Belt All employees who have completed an introduction half day session. Green Belt Work part time to help Black Belts Black Belt Full time 6 Sigma project leaders – 100% focused Master Black Belt Full time 6 Sigma experts who act as coaches, trainers and mentors for Black Belts

26. Slide 26 Owns vision, directs integration, results Leads change Project owner Implements solutions Black Belt manager Full-time Trains and coaches Black Belts and 6 Sigma Green Belts Full-time Facilitates problem solving Trains and coaches Project Teams Participate on Black Belt project teams Part time on projects Validate financial impact of projects Full-Time (or dedicated in a small organization) Sets direction Creates business deployment plan Supports Black Belts and Project Sponsors Can be the Project Sponsor Sustains and leverages gains Company Deployment Champion Project Sponsors Master Black Belts Process Owner Financial Rep. Executives / Leadership Green Belts Black Belts Understand vision Apply concepts to their job and work area Yellow Belts Contributors Part time on projects 6 Sigma Organization All Employees

27. Slide 27 How the Black belt works

28. Slide 28 Change Management 6 Sigma considers “Change Management” to be key to success Training is provided at all levels 6 Sigma has a proven track record

29. Slide 29 We need to change to achieve our objectives of……… growth customer satisfaction employee satisfaction and cost reduction These are Driven by; A changing market, Where competition is increasing and getting tougher & market prices and margins are declining

30. Slide 30 In Summary The Company is totally committed regardless of franchise, division etc. The Executives are totally committed and actively involved. This is for the long term and all employees are involved. Only the best will be black belts, and these people will be the drivers of the company in years to come. The concepts of 6 Sigma must become an integral part of the company culture. The key is improving the bottom line that will prioritize resources to those projects with the best return. At all stages it is critical customer requirements that come first. Implementation will be “Head Count” neutral.