Section One: Six Sigma Principles and Concepts

Transcription

1 Section One: Six Sigma Principles and Concepts 13

2 INTRODUCTION TO SIX SIGMA Bill Smith ( ) is considered to be the Father of Six Sigma and in his role as a Vice President and Senior Quality Manager for Motorola, he pioneered the Six Sigma methodology for organisational improvement in the late 1980s. Six sigma generated billions of dollars of savings and improvements for Motorola and since then many organisations including General Electric, Allied Signal and Honeywell have been prominent is using this methodology to improve customer relationships and to achieve organisational success. Indeed, Jack Welsh, then Chairman and CEO of General Electric launched Six Sigma in GE around 1996 and he became a global promoter for Six Sigma. The successes achieved have resulted in an evolution or even a revolution as organisations strive to deploy the principles and concepts behind the Six Sigma methodology. In recent years there has been a great deal of interest around the application of Six Sigma techniques to accelerated process improvement. Organisational leaders have read and heard about financial gains that some leading Six Sigma advocates have made and are keen to replicate this level of success within their own organisations. When examining the tools and concepts applied within the Six Sigma methodology there are similarities with other improvement strategies employed within organisations, e.g. ISO9001, the Australian Business Excellence Framework, Balanced Scorecard, PDSA, etc. These similarities mean that Six Sigma can be adopted in a complementary manner to enhance existing organisational systems or be used as a driver for realising strategy. DMAIC is the improvement model used within Six Sigma: Figure: DMAIC Improvement Model 14

3 WHAT IS SIX SIGMA (6σ)? Six Sigma can be defined in a number of ways: As a measure of quality within an organisational process As a highly disciplined process for accelerated improvement that helps organisation focus on providing near-perfect products and services As an enabler or vehicle for cultural change, influencing how organisations understand their customer and themselves A measure of quality within an organisational process. The term sigma (σ) is taken from a letter in the Greek alphabet and is used in statistics as a measure of how far a given process deviates from perfection (variation). For a business process, the sigma value is a metric that indicates how well that process is performing. The higher the sigma value, the better. More specifically, sigma measures the capability of the process to perform defect or error free work as defined by the customer. A defect or error is anything that has the potential to result in customer dissatisfaction. With Six Sigma, the common measurement is "defects per unit," where a unit can be virtually anything, for example: a part within a larger component, a component, a raw material, an entry in a form or document, a clerical error, a telephone enquiry, etc. A sigma value or level is an indicator of how often defects or errors are likely to occur. As this value increases and approaches Six Sigma, customer satisfaction levels increase with costs and cycle times decreasing. Six Sigma is the goal, which equates to 3.4 defects per million opportunities or a yield of %. So in simple terms, a Sigma Level represents the number of deviations from the mean. The table below demonstrates these Sigma Levels. Long Term Sigma (Z lt ) Yield DPMO 1σ 30.85% 691,463 2σ 69.15% 308,538 3σ 93.32% 66,807 4σ 99.38% 6,210 5σ % 233 6σ % 3.4 Table: Sigma Conversion Tab DPMO represents the number of Defects per Million Opportunities that will be discussed in more detail on the next few pages. It is important to note that the need for a process to be at a Six Sigma level will depend on a number of factors, e.g. customer needs, cost, competitive environment, legislative requirements, etc. 15

4 16 To help place this into context, the following examples show the differences between Four Sigma and Six Sigma: Four Sigma (99.38% Good) equates to: How Good is Six Sigma? Six Sigma ( % Good) equates to: 20,000 lost articles of mail per hour 7 articles of lost mail per hour Unsafe drinking water for almost 15 minutes each day 5,000 incorrect surgical operations per week 2 short or long landings at most major airports each day 200,000 wrong drug prescriptions each year One unsafe minute of drinking water every 7 months 1.7 incorrect surgical operation per week 1 short or long landing every 5 years 68 wrong prescriptions per year Table: How Good is Six Sigma Source: Six Sigma Demystified, Tooling and Production, April 2002 A highly disciplined process for accelerated improvement As a measure, Six Sigma is related to the application of statistics; however, the Six Sigma methodology is more than statistics with the real emphasis on a process for accelerated improvement. In order to gain a greater understanding of what Six Sigma is, the concept of variation needs to be explored. UNDERSTANDING VARIATION Organisations often measure the average or mean of a process to understand how they are performing and to help with decision making. However, customers of these processes do not feel the average or mean this is calculated what they really feel is the variance or variation of the process. Customer dissatisfaction is invariably a result of process variation. Six Sigma focuses on reducing and eliminating process variation, and once this has been achieved, further improvements are made to how capable the process is at meeting customer requirements. Variation exists everywhere. Sometimes it goes unnoticed and does not influence customer perceptions; however, at other times it can be felt directly by the customer. In some circumstances customers can find such variation acceptable and in other circumstances it can create high levels of dissatisfaction. Some examples of where variation can be seen Waiting times for service in a restaurant Queue lengths at the entrance to a concert or sporting event Advice given by sales people when purchasing a new home entertainment system Amount of coffee and milk in a cappuccino Time taken to service a car Time to get an answer from a call centre.

5 ACTIVITY 1 CONSIDERING VARIATION Objective: To demonstrate how variation can affect your organisation's ability to fulfil your customers requirements. Task: Identify examples of variation (consider your organisation and those that you have dealings with) and show the results of this variation that may affect your customers (consider internal and external customers). Record your results in the table below: Variation Result 17

6 Six Sigma Green Belt (Incorporating Lean) 5 Days - SPECIALIST Purpose Learn to effectively implement Six Sigma Green Belt projects (i.e. small to medium sized improvement projects). In this highly interactive course, learn to apply the principles of problem solving using the Define, Measure, Analyse, Improve and Control (DMAIC) model along with the use of basic statistics and improvement strategies. Achievement Upon request, participants will be issued with a Certificate of Attendance. SAI Global Green Belt Certification can also be achieved for an additional fee of $550. The certification process involves the completion of a Green Belt project which will be assesses against the Green Belt body of knowledge. Course Outline This course covers the following topics: History, background and philosophy of Six Sigma Overview of DMAIC roadmap Define project prioritisation, benefits definition, problem and goal definition, VOC, CTQ, SIPOC, project charter Measure MSA, data types, sampling, data collection, normality, control charts, process capability Analyse cause and effect, process and data analysis, Lean tools, hypothesis testing, root cause validation Improve solutions generation and criteria, creative thinking, impact analysis, improve control charts Control standardisation, documentation, monitoring, project closure Managing Six Sigma - nature of change, keys to success Learning Outcomes Upon successful completion of this course, participants should be able to: Run a Green Belt project Understand the key aspects of Six Sigma Use the DMAIC methodology Select Six Sigma projects Undertake root cause analysis and validation Utilise creative thinking techniques Plan, implement and devise control strategies Who should attend? Team leaders, project managers and functional managers who are responsible for implementing solutions to important customer and business issues Improvement practitioners seeking to add an understanding of the Six Sigma discipline to their current skills Those seeking to increase their contribution to the bottom line of their business and enhance their employment prospects All personnel responsible for leading continuous improvement projects PRICING Early-bird price: $4, (inc GST) when you book 28 days prior to course starting $4,740 (inc GST) Standard price: In-House Training: trainingservices@saiglobal.com or call for a quote and save Register Now training@saiglobal.com fax: web: saiglobal.com/courses Copyright 2013 SAI Global Limited (A.C.N ). All rights reserved.

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