Six Sigma - Basic

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DFSS Is The Only Way To Reach Best-in-Class Performance
Causes of New Product Failure
Percentage of Companies Citing
Inadequate Market Analysis Product Problems or Defects Lack of Effective Marketing Effort Higher Cost Than Anticipated
Customer Driven Six Sigma
Month 0
When Why Who How Long
Executive Training Buy-In
Executives, Senior Management Team 1 Day
3 Sigma 4 Sigma
93.32% 99.38%
Historical Standard
Current Standard
New Standard
6 Sigma
99.99966%
The Goals of Six Sigma
Defect Reduction
Yield Improvement
Improved Customer Satisfaction
PPM
1,000,000 100,000 10,000 1,000 100 10
(with + 1.5 σ shift)
IRS – Phone-In Tax Advice (140,000 PPM) Restaurant Bills RX Writing Journal Vouchers Wire Transfers
• • • • • • •
Systematic Skill building Deliver measurable results . . . not promises Project-based Teamwork Building future leaders Data driven Accountability Management commitment
Customer Driven Six Sigma
• What Makes Six Sigma Different?
Leadership Commitment, Competence, and Involvement
Methodology and Tools
• Data Driven • Statistically Validated
- More Setups - Expediting Costs - Lost Sales - Late Delivery - Lost Customer Loyalty - Excess Inventory - Long Cycle Times - Costly Engineering Changes
45 29 25 19 17 14 12 24 0 10 20 30 40 50
Competitive Strength or Reaction
Poor Timing or Introduction Technical or Production Problems
All Other Causes
Inadequate Understanding of the Market and Incapable Processes Are the Key Factors in New Product Failure
Process Broken or Does
Not Exist
Process Has Reached Entitlement
Design For Six Sigma
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Manufacturing Defects 20% to 30% DFSS Is Needed
Designed-In Quality Problems 70% to 80%
Airline Baggage Handling
1
Average Company
Best-in-Class
1
2
3
4
5
6
7
Sigma Scale of Measure
Customer Driven Six Sigma
• Where Is The Emphasis Placed?
Consumer Driven Six Sigma teaches and deploys hard skills and business practices emphasizing:
Higher Net Income
Customer Driven Six Sigma
• Why do Customer Driven Six Sigma?
It enhances ability to delivery customer satisfaction and cost improvement results faster - within months from the start, and sustain the rate of improvement
A “Layman’s” Definition
• “For every dollar you spend on Six Sigma projects, you will bring four dollars of savings to the bottom line”
A Technical Definition
measure, analyze, improve, and
control processes A commitment to customers to achieve an acceptable level of performance
•
•
Benchmark
Value
A Means to Stretch Quality Thinking
Where (Where is it applied; where is the emphasis)? When (when is the best time)?
Who (who is involved)?
How (how do we do it)? How Much (how much will it cost versus save)?
•
• • • • • •源自VisionGoal Philosophy Metric Method Tool Symbol
A statistical measurement of
process capability, as well as a benchmark for comparison A set of statistical “tools” to help
Lost Opportunities The Hidden Factory
Additional COPQ: - Intangible - Difficult to Measure
Average COPQ approximately 15% of Sales
Where Does Industry Stand?
• Framework description will follow the standard quality systems methodology of the 5 Ws and 2Hs:
What (what is Six Sigma)?
Why (why do it; why should we care)?
Customer Driven Six Sigma
When is the best time?
Customer Driven Six Sigma
• When To Use Design For Six Sigma (DFSS)
New Product Service or Introduction
LSL
USL
LSL
USL
On-Target Center Process
LSL
Reduce Spread
USL
LSL = Lower spec limit USL = Upper spec limit
The statistical view of a problem
Evolution of Six Sigma Quality
A Breakthrough Strategy to Move to a Higher Level of Customer Satisfaction Performance
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Understanding Six Sigma
6
What When Who
How Much
Why
How
Where
Customer Driven Six Sigma
Six Sigma
New Millennium Management Quality - 1990s Process Quality – 1980s Product Quality – 1940s
A Historical Perspective
Classical View of Performance
Customer Driven Six Sigma
• What is Customer Driven 6-Sigma?
A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of our business