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DPC - South America - Six Sigma Program


Master Black Belt in Six Sigma
Edson Silveira de
Oliveira
March, 2004
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
Quien somos: Du Pont ?
Du Pont es una compaa cientfica mundial, conocida por
algunos de sus inventos que revolucionaron al mundo en el
siglo XX y que ofrece productos y soluciones en mercados
como:
Alimentos y Nutricin
Construccin
Textiles
Transporte
Electrnicos
Salud
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DPC - South America - Six Sigma Program
Du Pont Performance Coatings
Es el mayor fabricante a nivel mundial en Pinturas Automotrices e
Industriales. Creada en 1999 a partir de la fusin de DuPont
Automotive Finishes y Herberts (Divisin de Pinturas de Hoescht).

Posee operaciones en 36 pases a nivel mundial que suministran
pinturas automotrices e industriales en los 5 continentes.
Divisiones
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DPC - South America - Six Sigma Program
Du Pont Performance Coatings
Venezuela
Pinturas Automotrices e Industriales
Mercado Automotriz
(Region Andina)
REFINISH OEM
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
What is Six Sigma ?
Six sigma quality means the virtual
elimination of defects from every
process, product and transaction in
our company
It is a key part of how we will do
business well into the next century...
However, the real impact of Six
Sigma is that it is a business
management process and not just a
quality metric.

Chad Holliday
Chairman & CEO
DuPont Company
February 26, 1999
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DPC - South America - Six Sigma Program
Six Sigma is a ...
Vision
Practically flawless execution
Philosophy
The way we do work.
Business Improvement & Development
Methodology
Touches all facets of the business
Measurable financial impact
Performance Metric / Goal
Performance measure
Yardstick
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DPC - South America - Six Sigma Program
Benchmarking Results
1,000,000
100,000
10,000
1,000
100
10
1
3 4 5 6 7 2
Sigma Scale of Measure
restaurant bills
Doctors prescription writing
IRS tax advice
(phone in)
airline baggage handling
DuPont
average
world class
performance
DuPont safety
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DPC - South America - Six Sigma Program
Evolution of Six Sigma in the USA
1992 1995 2000
ABB
Motorola
TI
IBM
DEC
Kodak
AlliedSignal
Nokia
Sony
Navistar
Whirlpool
Bombardier
GenCorp
Siebe Foxboro
Lockheed Martin
John Deere
Siemens
Compaq
Seagate
PACCAR
Toshiba
DuPont
Dow Chemical
Air Products
Honeywell
Johnson Controls
Maytag
Praxair
Ford
Johnson & Johnson
GE
1985
funded full
development
of
methodology
current
benchmark
Six Sigma was originally developed for parts
manufacturing, to provide a quality-driven
competitive advantage
and is now seen as a
key to growth in profits
& share price.
then was expanded beyond manufacturing
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
La nica garanta para nuestro negocio es un cliente satisfecho
1- Enfoque en el Cliente
Darle al cliente lo que quiere, ni ms ni menos.
2- El Cliente define la Calidad
Bien la primera vez = Menor costo
5- La Variabilidad es el Enemigo
Tomar decisiones en base a data
4- Actuar con pruebas
3- Medicin es la Clave
No sabemos lo que no medimos.
6- Aumento del Conocimiento Colectivo
Personas con conocimientos y herramientas para la mejora continua
Valores de Seis Sigma
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DPC - South America - Six Sigma Program
Satisfying the Stakeholders
Customers maximum value in offering relative to cost.
Employees wages, benefits, job security.
Shareholders profit dividends and share price
appreciation.

The only source of a paycheck is the customer.

The customer is the common denominator and the key to
satisfying the needs of all of our stakeholders !
Who are they and what do they want ?
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DPC - South America - Six Sigma Program
Purpose
ID Customer Needs
Address Customer Needs
Achieve Customer Satisfaction
Gain Competitive Advantage
End Result: Sustainable Profit
Stakeholders:
Customer
Employees
Shareholders
All stakeholders needs will be met when the customers are satisfied.
ask & listen
improve or develop the
process through SIX SIGMA
increase revenue
&/or reduce cost
- can be internal, external, or both !
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DPC - South America - Six Sigma Program
Unleashing Potential with Six Sigma
Risk vs Knowledge
Knowledge
R
i
s
k

Science
data
discipline
good decisions
confidence
innovative
Art
chaos
firefighting
waste
fear
change averse
Move along curve using 6s
enhance process knowledge
exploit to reduce defects and/or
create new offerings
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DPC - South America - Six Sigma Program
Costos de Baja Calidad
6 sigma <10% de las Ventas
5 sigma 10-15% de las Ventas
4 sigma 15-20% de las Ventas
3 sigma 20-30% de las Ventas
2 sigma 30-40% de las Ventas
Sigma Costos
Existen buenas oportunidades de Reduccin de Costos!!!
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DPC - South America - Six Sigma Program
Value of Six Sigma
profit
total cost of
goods sold
theoretical
cost
cost of poor
quality
profit
theoretical
cost
cost of poor
quality
without 6s
Theoretical
COPQ
profit
theoretical
cost
with 6s
healthy
business
price erosion
G1 sales price
Improvement Projects Example
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DPC - South America - Six Sigma Program
profit
Value of Six Sigma
profit
total cost of
goods sold
theoretical
cost
cost of poor
quality
profit
theoretical
cost
without 6s
healthy
business
price erosion
Develop the offering so
there is no COPQ
G1 sales price
theoretical
cost
profit
with 6s
Development Projects Example
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DPC - South America - Six Sigma Program
Value of Six Sigma
market
share
balance of
market
without 6s with 6s
total market
market
share
non-
strategic
potential
market
share
market
share
non-
strategic
potential
strategic
new share
market
share
non-
strategic
potential
market
share
potential
strategic
market
share
non-
strategic
new share
with 6s
Top Line Growth Example
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
Which Business Function Needs It?
All facets of the business !
Every task is a process.
Every process has at least one customer and one output.
Six Sigma focuses on improving the outputs !
manufacturing
HR
QA
R&D
admin
supply chain
engineering
sales &
marketing
IT
mergers &
acquisitions
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
The Six Sigma Process High Level
business strategy ideas
internal / external
1. xxxxxxxxx
2. xxxxxxxxx
3. xxxxxxxxx
4. xxxxxxxxx
5. xxxxxxxxx
6. xxxxxxxxx
evergreen
project list
Six Sigma Projects
1. xxxxxxxxxxxxx
2. xxxxxxxxxxxxx
3. xxxxxxxxxxxxx
project selection
DMAIC &
DMADV
Six Sigma teams project validation realize benefit
translation
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DPC - South America - Six Sigma Program
CTX Flowdown
y
y
Y
y y y y
l
l
l
l
l
l
l
l
l
l
l
l
Projects
Y
MEASURE
GOAL
BENCHMARKING
ACTUAL PERFORMANCE
y
y
CTS
CTQ
CTP
Projects Definition
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DPC - South America - Six Sigma Program
Six Sigma Process Project Level
Within a Six Sigma Project we
Translate a business challenge to a defect elimination, variability reduction
problem, or development need
Formulate this problem as a statistical problem
Solve the statistical problem using tools and techniques taught in this
course (or suggested by your MBB)
Convert the statistical learning into business benefits and actions.
Ensure gains are sustained long after project completion.
Business
Problem
Practical
Problem
Statistical
Problem
Statistical
Solution
Practical
Solution
Business
Solution
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DPC - South America - Six Sigma Program
Project Types & Methodologies
Click link for more information on project types
DMAIC DMADV (DfSS)
Define
Measure
Analyze
Improve
Control
Define
Measure
Analyze
Design
Verify
Methodology Spectrum
Baseline Projects
Improvement Projects
Design Projects
Top Line Growth Projects
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DPC - South America - Six Sigma Program
DMAIC Phases & Deliverables
D1:
D2:
D3:
Project CTQs
Project Charter
Process Map
M4:
M5:
M6:
M7:
M8:
M9:
Project Y
Performance Stds
Data Collection Plan
Project Y Data
Process Capability
Improvement Goal
A10:
A11:
A12:
Prioritized List of Xs
List of Vital Few Xs
Financial Opportunity
I13:
I14:
Proposed Solution
Piloted Solution
C15:
C16:
C17:
Sustained Solution
Project Documentation
Translation Opportunities
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DPC - South America - Six Sigma Program
DMADV Phases & Deliverables
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DPC - South America - Six Sigma Program
Design for Six Sigma is...

DfSS is the set of Six Sigma
philosophies, principles, methods, and
tools applied to development work.
Typically DMADV is associated with
DfSS.

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DPC - South America - Six Sigma Program
1994 Six Sigma Academy
It All Starts with the Customer
Six Sigma works from RIGHT to LEFT !
ID customer and find out whats critical for them (CTQ)
Define what process output(s) (Ys) most closely relate to the CTQ
Determine what process controls and inputs (Xs) most affect the output
Identify modes of operation in the Xs to dramatically improve Y and delight the
customer
Final solution = optimal arrangement and control of the Xs
Old school solution = Inspect Y and throw out the bad!
Supplier(s)
Inputs Output(s)
Process Customer(s)
Xs
(inputs)
Xs
(process)
Ys
CTQs
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DPC - South America - Six Sigma Program
Process Map
C&E Matrix & FMEA
Multi-Vari Studies
Hypothesis Testing
Screening DOEs
DOEs / Trial Exps
Optimized Process
Dynamics of Execution Strategy
Control Plan
The Funnel Effect
30 to 50 Inputs (Xs)


10 to 15 Xs
8 to 10 Xs

4 to 8 Xs

3 to 6
Vital Xs
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DPC - South America - Six Sigma Program
(DPC South Amrica)
Green Belts
(Venezuela)
(9)
Black Belts
(Venezuela)
(2)
Green Belts
(Brasil)
(100)
Black Belts
(Brazil)
(4)
Champion Deployment
(South America)
(1)
Personal Six Sigma
Master Black Belt
(South America)
(1)
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DPC - South America - Six Sigma Program
Six Sigma Methodology: Summary
Disciplined, Data-based approach
Focuses on the customer and critical outputs
Works upstream to control process Xs instead of
relying on inspection and testing
Attacks variation, defects and hidden costs /
wastes
Directly affects quality, cost, cycle time and
financial results
Ensures a predictable operation
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DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
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DPC - South America - Six Sigma Program
Ideal First Six Sigma Project
Historical and current data accessible
Good fit with Six Sigma methodology & tools
Strong support/sponsorship in place
Clearly linked to real business need
Part of your ongoing work
Not capital intensive
Achievable in 4 - 5 months for improvement; 6-10
months for development (i.e. turnover to process
owner)
Clearly quantifiable savings or revenue enhancement,
with minimum risk to external factors
High probability of success
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DPC - South America - Six Sigma Program
Baseline Projects
DMAIC

Existing

Broad or Focused - situational

1 or more Ys - situational

Improvement; Defect Identification & Reduction

Primarily Special Cause

2 to 4 Months

Stable Process, Quick Hit Imps, & Child 6s Project Charters

Varied (none to $MMs)

Methodology

Process

Approach

CTQs Ys

Focus

Variation

Duration

Output

Benefit

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DPC - South America - Six Sigma Program
Improvement Projects
DMAIC

Existing

Focused

1-2 Ys

Improvement / Defect Reduction

Special and Common Cause

4 to 6+ Months

Improved Processes with Enhanced Capability

> $175K PTOI (Pre-Tax Operating Income)

Methodology

Process

Approach

CTQs Ys

Focus

Variation

Duration

Output

Benefit

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DPC - South America - Six Sigma Program
Examples of Improvement Projects
Cycle Time Reduction Projects
Reduce the time required to complete manufacturing
processes or transactional activities. Example: Return empty
railcars to supplier faster to reduce railcar storage
(demurrage) charges.
Defect Reduction Projects
Reduce or eliminate defects in quality. Example: Eliminate
defects in pigment color.
Consumption Reduction Projects
Reduce or optimize the consumption of costly raw material,
contract service or energy. Example: Reduce amount of
Lime required for neutralization.
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DPC - South America - Six Sigma Program
Development Projects
DMADV or DMAIC (DMADV more typical)

New or Redesigned

Broad and Systemic

Many Ys

Design or Re-Design

Primarily Common Cause

6-12 Months (capital developments are longer)

6s Process, by Design

Typically Large & Often Soft

Methodology

Process

Approach

CTQs Ys

Focus

Variation

Duration

Output

Benefit

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DPC - South America - Six Sigma Program
Examples of Development Projects
Cycle Time Reduction
Reduce the time required to complete manufacturing
processes or transactional activities. Example: Design a new
bidding process for reverse auctions that reduces time to
completion by 3 days
Defect Reduction Projects
Reduce or eliminate defects in quality. Example: Develop a
new training program for operators that results in a reduction
in poor quality polymer
Demand Creation Projects
Develop new marketing programs to create demand for an
existing product. Example: Work with customers and
partners to create new marketing plan for fire extinguishent
resulting in significant new sales
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DPC - South America - Six Sigma Program
Definition of Top Line Growth
The application of 6 Sigma to compel
customers to buy more, resulting in
increased value for DuPont and the
Customers. (official 6/02)

TLG is a specific result area focused on
profitably growing revenue.

Either DMAIC or DMADV may be used.
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DPC - South America - Six Sigma Program
Top Line Growth Projects
DMAIC or DMADV

New or Redesigned

Either Narrow and Focused or Broad and Systemic

One Y or Many Ys

Improvement, Design, or Re-Design

Special Cause and/or Common Cause

4 to 6+ for Improvement type TLG; 6+ for Development

6s Process, by either Improvement or Design

High $ Value and Hard $;
SBU Specific but typically > $500M

Methodology

Process

Approach

CTQs Ys

Focus

Variation

Duration

Output

Benefit

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DPC - South America - Six Sigma Program
Examples of TLG Projects
Demand Creation Projects
Develop new marketing programs to create demand for
an existing product. Example: Work with customers
and partners to create new marketing plan for fire
extinguishent resulting in significant new sales
Defect Reduction Projects
Reduce or eliminate defects in quality. Example:
Eliminate defects in pigment quality
Platform Development Projects
Develop an extension or upgrade to an existing process
or product to create a new product Example: ???
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DPC - South America - Six Sigma Program
TLG
Product Development
Application Development
New Market Development
At the Customer, For the Customer
Could deliver cost savings or TLG
TLG or Effectiveness
Quality Improvement
Service Improvement
Pricing Process Improvement
Selling Effectiveness
Advertising/Communication
Improvement
Branding Effectiveness
Channel Effectiveness
Sales Lead Management
PTOI
Hard, soft, & one-time PTOI Hard, soft, & one-time PTOI
Deliver TLG
TLG Focus Areas
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DPC - South America - Six Sigma Program
Time for a Wrap-up
Can you
Describe what Six Sigma is in terms of its:
purpose and value ?
strategy and focus ?
methodology ?

Describe how DMAIC or DMADV works to
translate customer needs into high-performing
processes ?
5
0
DPC - South America - Six Sigma Program
Contenido
Quien Somos: Du Pont..DuPont Performance Coatings

Que es Six Sigma ?

Por Que Decidimos Implementarlo ? Valores ?

Cmo lo aplicamos y donde?

Cmo funciona?

En que estamos trabajando en Du Pont?

Ejemplo...
5
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DPC - South America - Six Sigma Program
MEJORAS EN EL SERVICIO DE
ENTREGAS A TIEMPO DE
PRODUCTOS OEM
Green Belt: Carlos A. Calabrese S.
Status del Proyecto :Medicin / Anlisis / Experimentacin
AGOSTO 2003
Proyecto Six Sigma
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DPC - South America - Six Sigma Program
Resumen del Proyecto
Descripcin del Proyecto:
Nuestra participacin en el Mercado Andino es de
un 75%, lo que nos coloca como un proveedor
estratgico en la regin..
En base a esto debemos garantizar en todo
momento un flujo contnuo de los materiales que
sn utilizados en el proceso de pintura de los
vehculos.

Objetivo y Alcance del Proyecto:
Incrementar el nivel de servicio a clientes OEM
Andinos.

Variables CTS (Ys):
% Servicio OEM
Cambios de Produccin por Fallas de Suministro.
Cambios de Produccin por Fallas de Calidad en
los Productos.
Situacin y Desempeo Actual:
sigma:
Y= 3,00 sigma (Short Term)



Meta del Proyecto:
sigma:
Y= 4,5 sigma (ST)


Beneficios:
Mantener e Incrementar Participacin en los
clientes OEM.
Garantizar el flujo contnuo del proceso de
pintura de las ensambladoras.
Fabricar los productos que realmente
requieren reposicin de inventario en la lnea.
Garantizar 100% de satisfaccin en Servicio
de Materiales Entregados a Tiempo.

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DPC - South America - Six Sigma Program
Fase Diseo de Experimento
ESTRATEGIA:
Se implementar un Sistema de Reposicin de Inventario KAMBAN bajo la modalidad de
Teora de Restricciones, controlado por un Semforo:
Stock de
Seguridad
Produccin y
Reposicin
Inventario OK
en almacn
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DPC - South America - Six Sigma Program
Stock de
Seguridad
Consumo Zona
Amarilla
Inventario 0
Fase Diseo de Experimento
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DPC - South America - Six Sigma Program
Stock de
Seguridad
Consumo Zona
Amarilla
Inventario 0
Fase Diseo de Experimento
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DPC - South America - Six Sigma Program
Stock de
Seguridad
Produccin y
Reposicin
Inventario OK
en almacn
Fase Diseo de Experimento
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DPC - South America - Six Sigma Program
ACTUAL
Liberacin de
Materiales
Ensambladoras
rojo
azul
PROPUESTO
Fase Resultados
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DPC - South America - Six Sigma Program
Hallazgos:
Variacin entre las Cantidades de Materiales Solicitados y los realmente Consumidos.
Solicitudes Adicionales y Adelantos de Materiales frecuentes.
Retraso por parte del Cliente en las Entregas de las Liberaciones.
Mejora Planteada:
Implementacin de un Sistema de reposicin de Inventarios bajo el esquema KAMBAN
para el Suministro de Materiales a la Ensambladora.
Beneficios:
100% de Servicio en Entregas a Tiempo y Completo (100% Satisfaccin del Cliente)
Mantener e Incrementar el % de Participacin de Nuestros Clientes OEM
El Suministro depender de la demanda real (Consumo) de la lnea.
Inventarios ptimos ajustados a las necesidades reales (Reduccin de Inventario).
Optimizacin de los Recursos de Manufactura (Facilities & Personal) ya que el sistema de
planificacin de la produccin estar basado en las necesidades reales.
Fase Conclusion

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