Si Sigma at Volvo CE Anders Fundin Adjunct Professor Quality Technology and Management Global Manager Continuous Improvement Volvo CE, Sales & Marketing April 17 2013
Operational Development (OD) vs. Si Sigma LEVEL OF COMPLEXITY Strategic improvement, comple problems Si Sigma projects Cross-functional, semi-comple problems OD teams Daily improvement
1. Define the problem Is /Is not Data gathering Make checklists Pareto diagram Affinity diagram Relationship diagram 2. Take temporary actions 7. Verify results 8. Standardize and propose future actions Process management map 3. Gather and check data Data gathering Flow diagram Histogram 5. Evaluate possible solutions Brainstorming Flow diagram Concept selection matri Control diagram Pareto diagram Histogram 4. Define root causes Brainstorming 5 why? Fishbone diagram Affinity diagram Relationship diagram 6. Plan and implement solutions
What is Si Sigma? A systematic approach to process improvement. LSL USL Processes can be related to design, manufacturing or administrative functions. It involves the use of statistical tools and techniques to analyse & improve processes (both simple and advanced tools). LSL USL The relentless pursuit of variability reduction and defect elimination.
Where can Si Sigma be applied? Si Sigma can be applied to all company processes A distinction is often made between: Design applications (Design for Si Sigma) Operational applications (Manufacturing) Transactional applications (Administrative)
What is meant by these distinctions? Design for Si Sigma means the reduction of variation in design processes, together with: Products designed in harmony with the manufacturing processes (DFM Design For Manufacture) Products designed as simply as possible, with error-proofing to eliminate assembly errors (DFA Design For Assembly) Products designed to meet or eceed the customer s requirements
Transactional Si Sigma Transactional Si Sigma reduction of variation in administrative processes These usually involve the movement of information or data around a business. It also means reduction in key metrics such as cycle times and defects. Common performance metrics include response or cycle time, invoicing errors, delays etc.
Operational Si Sigma Operational Si Sigma means the reduction of variation in manufacturing processes Usually involve physical transformations of materials or parts Used in order to meet a combination of dimensional and performance requirements Common performance metrics include ppm (defective), yield, process capability indees, scrap etc.
The 6 Sigma Metric = Sigma Used in statistics as a measure of variation Standard Deviation The central philosophy of 6 Sigma is the reduction of variation in all our work processes
The Normal Distribution Lower Spec. Upper Spec. y 1 = 68.26% y 2 = 95.44% y 3 = 99.73% -3-2 -1 y +1 +2 +3 (Target) The 3 Sigma mentality means 2700 defectives per million!
Lower Specification The 6 Sigma Metric Normal Distribution Centred on Target Upper Specification -6-5 -4-3 -2-1 y +1 +2 +3 +4 +5 +6 Specification Percent within Specification (Centred Distribution) Defects Per Million (Centred Distribution) 3 99.73 2700 4 99.9937 63 5 99.99994 0.6 6 99.999999999 0.002
From 3 Sigma to 6 Sigma Lower Spec. Upper Spec. Defects per Million 2700 Lower Spec. Upper Spec. 0.002
What does it implies with a level just above 4 Sigma? Based on figures from USA: At least 20 000 prescriptions (medicals) does not give the wanted effect The drinking water is not possible to drink during 1 hour each month Non working telephones or non working television broadcast during 10 minutes every week 96 flights crashes out of 100 000 flights
DMAIC Improvement Process Define Measure Identify Opportunity Analyse Identify y s (Outputs) y = f() Identify Critical s (Inputs) Improve Optimise s Control Control s
Define Select Task Define Task Goal Form the Team Map the Process Identify Customer Requirements Identify Priorities Complete Task Definition Phase Review With Sponsor Si Sigma Improvement Process Transactional Tasks Measure Define Measures (y s) Evaluate Measurement System Determine Process Stability Determine Process Capability LSL USL 15 20 25 30 35 Set Targets for Measures Phase Review With Sponsor Analyse Develop Detailed Process Maps START PROCESS STEPS DECISION STOP Identify Critical Process Steps ( s) by looking for: ProcessBottlenecks Rework /Repetition Non-value Added Steps Sources of Error / Mistake Map the Ideal Process Identify gaps between current and ideal Phase Review With Sponsor Improve Brainstorm Potential Improvement Strategies Select Improvement Strategy Criteria A B C D Time + s - + Cost + - + s Service - + - + Etc s s - + Plan and Implement Pilot Verify Improvement LSL USL 15 20 25 30 35 Implement Countermeasures Phase Review With Sponsor Control Control Critical s 10.2 10.0 9.8 9.6 1 5 10 15 20 Monitor y s Upper Control Lower Control y Validate Control Plan Identify further opportunities Close Task Phase Review With Sponsor
A Few of the Si Sigma Tools Cause & Effect Diagram Man Machine Effect Review Templates D M A I C Measurement System Variation Accuracy Stability Reproducibility Repeatability Calibration Gauge R&R Analysis of Variance A1 A2 Maint. Method y Regression Analysis y=f() Minitab Software 440 500 560 620 680 740 95% Confidence Interval for Mu 568 578 588 598 608 95% Confidence Interval for Median Drill Down D escriptive Statistics Variable: SAT Anderson-Darling Normality Test A-Squared: P-Value: Mean StDev Variance Skewness Kurtosis N Minimum 1st Quartile Median 3rd Quartile Maimum 577.323 57.159 570.711 0.329 0.512 590.240 65.101 4238.08 2.63E-02-4.0E-01 100 426.000 542.250 598.000 640.000 740.000 95% Confidence Interval for Mu 603.157 95% Confidence Interval for Sigma 75.626 95% Confidence Interval for Median 605.000 Histogram Share Point Seven Wastes Process Map e.g. SIPOC Customer Focus Y Pareto Overproduction Scatter Diagram FMEA Process Capability y y y Mistake Proofing
Thank you for listening Any questions?