Six Sigma general
- 1. NMember of the Bekaert GroupWhat is it? How to implement it? Conditions for successSix SigmaF R A N C ESchneider Electric 21th January 2002
- 2. Contents What is Six Sigma? As measure for process capability A methodology How to implement Six Sigma? Conditions for success
- 3. 1What is Six Sigma?
- 4. PROCESSinputresultExellent results require excellent processes Deliver (nearly) always the desired results Reduce variability Ambition : 6 Sigma Process Capability (< 3.4 defects pm)Six Sigma as measure for process capability
- 5. Defects and the Hidden FactoryManufacturing Variation Causes A "Hidden Factory" Increased Cost - Lost CapacityYield After Inspection or TestEach defect must be detected, repaired and placed back in the process. Each defect costs time and money.ScrapReworkHidden FactoryNOT OKOperationInputsInspectFirst Time YieldOKTime, cost, people90% Customer Quality
- 6. To increase a process performance, you have to decrease variation.Importance of Reducing VariationLess 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
- 7. LSLUSLDefectsProcess CapabilityInadequate Design MarginInadequate Process CapabilitySupplier VariationInadequate Measurement Capabilityaverage s s“Variation” and “Process Capability”
- 8. 2 3 4 5 6308,537 66,807 6,210 233 3.4sPPMProcess CapabilityDefects per Million Oppty.6Sigma???% Non-Defective69.1% 93.32% 99.379% 99.9767% 99.99966%
- 9. 6 6 Cp = 2Cpk = 1,51,5 6 n = 66 and Cp, Cpk
- 10. Why ppm ? * 1,5 shiftApproachClassicalNew,410,3320,663141,334,51,5Number of sigma in half the tolerance intervalCp561,662 Cpk*_0,160,50,8311,161,5Ppm*__66.8106.2071.3502333,4Cost of quality (%)__25 %15 %10 %7,5 %5 %
- 11. If we accept 99.9 % good, then...1 h non drinkable water each month 500 «failed» surgeries each week in France In France : 2 babies falling off the «labour» table each day 1000 lost letters per hour 15000 cheque on the wrong account each day
- 12. Companies involved in Six Sigma today :Some results that were published in the press : Dupont : benefits exceed $150 million / year (Dow Jones Business News - February 2, 2000). Dow : Savings of about $250.000 per project. Annual savings $ 1 billion (Chemical week magazine -March 1, 2000). Black & Decker : Expects earnings per share growth of at least 15 % for the next three years (Reuters News Service - February 15, 2000). Allied Signal: Cost savings exceeding $800m since 1995 General Electric: most admired company three years running, and consistently increasing growth and profit. Cost savings exceeding $2B General Domestic Appliances: Cost savings of £7,5m 1999/2000
- 13. Companies involved in Six Sigma today :Generic Six Sigma Metrics Seasoned Black Belts complete three to five projects annually $150.000 - $200.000 average savings per project Annual savings delivered per Black Belt $450.000 - $1.000.000 Rule of thumb for numbers of Black Belts: 1-3% of employees
- 14. SIX SIGMA as methodology ...A systematic approach for breakthrough improvement realisations using a solid and soundly based toolset deployed throughout the organization
- 15. SIX SIGMA as methodology ...A systematic approach for breakthrough improvement realisations using a solid and soundly based toolset deployed throughout the organization
- 16. A SYSTEMATIC APPROACH...Selection of projectsManaging the improvement projectsSustaining the gainsBusiness strategy & results Significant gains Think "process" Project filters Leadership buy-in Project Management Training (BB/GB/YB) Teamwork Review of progress Reward & recognition Project level Organizational level
- 17. Selection of projects : PRIORITIZE Contributing to your BUSINESS RESULTS!! Look for SIGNIFICANT GAINS within REASONABLE TIMING Use the correct PROJECT FILTERS!! Value for the customer Defects per unit Cost of poor quality Cycle time Ensure LEADERSHIP BUY-IN
- 18. Managing for improvement - Training...Enhanced improvement realisation skills * Leadership * Master Black Belt (MBB) * Black Belt (BB) * Green Belt (GB) * Yellow Belt (YB)
- 19. ControlDefine the problem6 SIGMA DMAIC AnalyseImproveMeasureDefine steps Confirm gains, goals Formalise customer supplier relations Get voice of the customer in the projectFormalise the modified process Implement SPC Evaluate results Learning pointsDevelop measurements of CTQ Select critical imputs Prepare data collection Realise R&R study Measure process capabilityProcess analysis (value) Data analysis Root cause analysis Statistical data handling (regression, DOE, multi vary…) Imagine solutions Evaluate solutions Choose optimal solution Analyse risks Plan implementation Managing for improvement : The roadmap (1)
- 20. 5/ Verify validate1/Define 6 SIGMA DMADV² 3/ Analyse4/ Design2/ MeasureBusiness case Charter development Multi generation plan Project riskControl plans Mistake proofing Upscaling Validation Implementation planingSIPOC Stakeholder analysis Voice of the customer QFD Q requirementsConcept generation Concept selection Mapping and simulation Proactive reliability Tolerancing DOE Modelling Design excellence : the roadmap 2
- 21. …Apply project management principles. … Regular management reviews of progress… Removing the barriersManaging for improvement - Roadmap (2)
- 22. …Building upon teamworkTeambuilding Access to informationCross-functionalSupport from other departmentsManaging for improvement-Mobilizing (1)
- 23. …Reward & recognition …Communication …Visualising results Managing for improvement-Mobilizing (2)
- 24. Sustaining the gains : project level Implement effective control plans Conduct regular training focussed on the process Review the improved process regularly
- 25. Sustaining the gains : organizational level Create a system to continually identify and launch new projects Creating critical mass for achievement culture Black, green and yellow belt training Black Belts in daily operations DeploymentX n
- 26. SIX SIGMA as methodology ...A systematic approach for breakthrough improvement realisations using a solid and soundly based toolset deployed throughout the organization
- 27. Breakthrough…?Look for SIGNIFICANT GAINS 50% increase in First Pass Yield 50% reduction in Scrap 50% reduction in Downtime 50% increase in Capacity Focuses on HIGH VOLUME / high risk products Project is work at least $250k to the bottom line PS : applicable for large volume processes ! REASONABLE TIMING : 6 to 8 months Significant MOBILIZATION of the whole company (training, approach, ..)
- 28. SIX SIGMA as methodology ...A systematic approach for breakthrough improvement realisations using a solid and soundly based toolset deployed throughout the organization
- 29. already known/used new (e.g. Statistics)Solid & soundly based toolset
- 30. ...Think "PROCESS"INPUTOUTPUTX1 X2 X3 …….Y
- 31. The Funneling EffectOptimized Process30+ Inputs8 - 104 - 83 - 6Found Critical X’sControlling Critical X’s10 - 15All X’s1st “Hit List”Screened ListMEASURE Process mapping Measurement system analysis Capability studiesANALYZE Cause & effects matrix FMEA Multi-vari studiesIMPROVE Design of experimentsCONTROL Co ntrol plans Statisctical Process Control (SPC)
- 32. SIX SIGMA as methodology ...A systematic approach for breakthrough improvement realisations using a solid and soundly based toolset deployed throughout the organization
- 33. Deployment throughout the organizationExtensive training program of all potential project leaders. Clear and visible management buy-in and support. A significant number of improvement projects. SIX SIGMA imbedded in the systems and procedures. Integration in the organization
- 34. 2How to implement Six Sigma?
- 35. The implementation strategy : The way we see itDo not create a separate organization! The implementation of Six Sigma is seen as a project on its own until it is imbedded in the organization! Implement in WAVES! Have people to support Six Sigma and people who "make it happen".
- 36. 6 sigma «wave» implementationMobilize key decision makersEvaluate potential projects Mobilize key players (leadershipworkshop)Green Belt training 2 weeksAssessDeploy and prepare new waves Préparation Implementation DeploymentBlack Belt training 4 weeksImplement the projectsPrepare implementation
- 37. The roles Six Sigma Sponsor/Champion Facilitate or support implementation of Six Sigma. Lead by example : believer, partner, challenger, coach, helper, sounding board. Set clear priorities. Provide necessary resources. Define/suggest new projects. Reviewing progress of projects. Six Sigma Black Belt Be catalyst for new culture and overall approach. Review project charters using filters. Complete the projects (applying the method and achieve results). Reporting Sharing of experiences between other black belts.
- 38. The roles Six Sigma Master Black Belt Coaches a group of black belts with special emphasis on the methodology. Supports the project selection process Conducts several forms of training Owns six sigma technical development Six Sigma project sponsor/champion Supports the project leader Recognizes the team Eliminate all obstacles/barriers Identify project opportunities Six Sigma Team Members Stick to agreed timing and actions. Act as a team. Communicate with own line management on timely basis. Six Sigma Green Belt Complete the project (applying the method and archieve results) (in his own “fields”) Reporting
- 39. 3Conditions for success
- 40. Success conditionsStrong leadership Mobilize all key players Good project charters Create critical mass Provide the right training on the right moment. Support structure Resources allocation ($ and people) Profile, availability and management of the project leaders (BB, GB) Good monitoring and review of projects. Strong strategic fit Communication, communication, communication
- 41. Characteristics of a good Six Sigma projectIdentifies a problem to be solved, not a solution to be implemented The problem is of major importance to the organisation clearly connected to business priorities and strategy major improvement in performance metrics major financial improvement Clear quantitative measures of success define performance baseline goals for this project + due date theoretical perfect performance Ambitious timing - reasonable scope: doable in 9 to 12 months Importance is clear to the organisation (to get support) Project has the approval and support of management (resources, barriers) Project charter: "contract" between project manager and management
- 42. Project TitlesReduce human errors in production Eliminate degradants Capacity debottlenecking of XYZ production Performance improvement plant A Increase capacity production plants D & E Optimise visual & semi- auto inspection in production Cycle time reduction solids production Improve tablets stability Reduce Cost of Non-Conformance for suspensions Reduce scrap & waste in packaging Resolve in-homogeneity problems Optimise filling volume control Reduce cleaning cost
- 43. Project Titles (cont'd)Improve yield at subcontractor Downtime reduction Cost competitiveness A & B lines Improve environmental management Enhance lab productivity & respons times Optimise purchase order size Optimise purchase cost fold box, labels, inserts Optimise package order size Optimise purchase process for congress & symposia Reduction text & design cost Reduction purchase cost chemicals Reduction destroyed goods cost Reduction sea freight costs
- 44. Project Titles (cont'd)Streamline standard costing process Streamline busisness plan review process Improve worldwide costing process & systems Enhance invoice administrative processes Streamline budget headcount process Optimise personnel & salary administration process Optimisation of maintenance cost Optimise tax accounts Improve IM desktop activities Improve technical development process for R123 Reduce deviations in IRF/NDA stability testing Improve validation effectiveness Solve DEF stability problems
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