Six Sigma = f (Variation, DMAIC, People )

Transcription

1 Six Sigma = f (Variation, DMAIC, People ) Moving Beyond Tools & Techniques Dr. Maneesh Kumar (PhD in Six Sigma, MCMI,MASQ) Cardiff Business School Aberconway Building, Column Drive Cardiff University Cardiff- CF10 3EU kumarm8@cardiff.ac.uk Tel: +44 (0) (o) 1 Key Messages Six Sigma is more than tools & techniques it s a philosophy Averages are not good; Believe in Variation Six Sigma DMAIC Methodology provides a disciplined framework for conducting process improvement in project based environment But don t forget your EMPLOYEES, whose involvement and commitment will allow to sustain the Six Sigma momentum in the company 2 1

2 What is Six Sigma? Business Strategy and Methodology that increases process performance by minimizing defects, waste, rework, failures, etc., resulting in: Enhanced customer satisfaction and Improved bottom line results ($$) Leadership Development Tool: "Perhaps the biggest but most unheralded benefit of Six Sigma is its capacity to develop a cadre of great leaders Jack Welch Statistical Definition: 3.4 Defects per million opportunities (DPMO) 3 WHAT MAKES SIX SIGMA World Class?? Performance Level SIGMA % Yield # of Defects per Million (DPM) A A B ,210 C ,807 Cost of Quality % <1% of sales 5-15% of sales 15-25% of sales 25-40% of sales D ,537 F ,462 Non-competitive Out of Business 4 2

3 The real voyage of discovery consists not in seeing new landscapes but in having new eyes. Proust 5 3 dimensions to achieving Six Sigma performance Customer Requirements 1. Understanding Customer needs 2. Simplifying processes 3. Reducing variation 6 Variation Click here Complexity 6 3

4 Explaining variation (Delivery Performance) Capture performance from the customer s perspective Mean-Based Measurement Variance-Based Measurement Process Av. 25 days Target 30 days Dissatisfied Customers? Delivery Time (days) We re Good! Delivery Time (Days) We re Not Good Enough! The Customer Feels Variance - Not the Mean! 7 Customer Order Process and Its Variables Process Inputs , fax, phone and postal service Completeness of customer orders Accuracy of customer orders Controlled Variables Customer service representative training Inventory level Shipment method Promise date Customer Order Process Uncontrolled Variables Customer service representative attitude Day of week Season of year Customer required date Process Outputs Order correctness Delivery time Package quality 8 4

5 Fundamental Relationship of Cause and Effect Y is equal to a function of (X) Y Dependent A Process Output The Effect It is a Symptom Can Only be Monitored This is the Blending or the way in which the process combines the inputs together with various process activities. X1... Xn Independent A Process Input The Cause of a Problem What Needs to be Controlled The performance of an output or a characteristic we are interested in is a function of the process inputs, called (X s) and the manner in which the process combines them in order to provide the resultant output (Y). Written as Y = f(x). 9 DMAIC Adds Predictability, Discipline, and Repeatability to Improvement Projects Define Measure Analyze Improve Control Define the problem Measure the gap, listen to the process Analyze data to determine root causes Improve the process Implement the solution Control the process, standardize, and document Sustain the gains Joseph M. Juran stated that all improvement takes place project by project, and in no other way 10 5

6 Six Sigma for Operational Excellence TRADITIONAL APPROACH vs. SIX SIGMA APPROACH TO PROBLEM SOLVING PRACTICAL PROBLEM TRADITIONAL APPROACH TO PROBLEM SOLVING STATISTICAL PROBLEM SIX SIGMA APPROACH TO PROBLEM SOLVING STATISTICAL SOLUTION A SYSTEMATIC APPROACH FOCUSING ON STATISTICALLY SIGNIFICANT ROOT CAUSES & SOLUTIONS PRACTICAL SOLUTION 11 Six Sigma Philosophy Eighty-five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and process rather than the employee. 12 6

7 Six Sigma- Its all about People Six Sigma operations & service process improvement In a service environment it s all about people Focus: engagement, communication, change management, etc Strive for perfection by continually involving and developing all staff in removing successive layers of waste 7