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OMPETITIVE
SigmaINTELLIGENCE
S S
IX
FOR
IGMA
DEPARTMENT
OF STATISTICS
REDGEMAN@UIDAHO.EDU
OFFICE: +1-208-885-4410
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
DR. RICK EDGEMAN,
PROFESSOR & CHAIR SIX SIGMA BLACK BELT
Dr. Rick L. Edgeman, University of Idaho
S S
IX
Six Sigma
IGMA
OF STATISTICS
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Often, problems are knots with
many strands, and looking at
those strands can make a problem
seem different.
Mr. Rogers
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma is
a highly structured strategy for acquiring, assessing, and applying
customer, competitor, and enterprise intelligence for the purposes
of product, system or enterprise innovation and design.
Innovation Algorithm
DMAIC (Define-Measure-Analyze-Improve-Control)
Design for Six Sigma Algorithm
DMADV (Define-Measure-Analyze-Design-Verify)
Makes Integrative Use Of:
Various strategies and tools from Statistics, Quality, Business,
Engineering and ???
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
rganizations
SixO
Sigma
Fueled by:
Strategic Contexts.
Notorious bottom-line orientation & results.
Adaptable to multiple bottom lines.
Process orientation: rigorous and systematic
approaches to innovation and design.
Focus on the customer.
Successful track record elsewhere.
Industry Buzz.
Six Sigma
Quality is a state in which value entitlement is realized for the
customer and provider in every aspect of the business relationship.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Why is Six
Sigma
Important?
Six Sigma
The
Villain
308,537
66,807
6,210
233
3.4
Not Applicable
25%-40% of sales
15%-25% of sales
5%-15% of sales
< 1% of sales
Six Sigma
Cost of Poorly Performing Processes
The cost to deliver a quality product can account for as much as
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
What Does
SixSSigma
Six
igma Tell Us?
and the Hero
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma Affects Six Areas Fundamental
to Improving a Companys Value:
1.
2.
3.
4.
5.
6.
Process Improvement
Product & Service Improvement
Investor Relations
Design Methodology
Supplier Improvement
Training & Recruitment
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma vs. TQM
TQM Terminology
Define
Measure
Analyze
Improve
Control
Replicate Results
Nominate New Projects
Replicate
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Values of Six Sigma Organizations
Issue
Classical Focus
Analytical Perspective
Management
Manufacturability
Variable Search
Process Adjustment
Problems
Problem solving
Analysis
Focus
Behavior
Suppliers
Reasoning
Outlook
Decision Making
Approach
Design
point estimate
cost & time
trial & error
one-factor-at-a-time
tweaking
fixing
expert based
experience
product
reactive
cost
experience based
short-term
intuition
symptomatic
performance
variability
quality & time
robust design
design of experiments
process control charts
prevention
system based
data
process
proactive
relative capability
statistically based
long-term
probability
problematic
producibility
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Values of Six Sigma Organizations
Issue
Classical Focus
Aim
Organization
Training
Chain-of-command
Direction
Goal setting
People
Control
Improvement
company
authority
luxury
hierarchy
seat-of-the-pants
realistic perception
cost
centralized
automation
customer
learning
necessity
empowered teams
benchmarking/ metrics
reach out & stretch
asset
localized
optimization
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
The SIPOC Model
Inputs
Process
Suppliers
Outputs
Customers
Steps
Inform Loop
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma COPIS Model
Outputs
Process
Inputs
Suppliers
Customers
Steps
Six Sigma
Voice of the Customer
Measure
Analyze
Improve
Control
Define
Institutionalization
Six Sigma
Kano Customer Need Model
Dissatisfiers
Satisfiers
Exciters /
Delighters
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Kano Customer Need Model
Delighted
Degree of
Execution
Fully
Implemented
Absent
Disgusted
Stakeholder Satisfaction
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Dimensions of Quality- Garvins Eight
Quality is usually a bundle of characteristics
We need to disaggregate this composite notion
This decomposition will help us to
make our notion of quality more precise
make comparisons possible
facilitate measurement
Six Sigma
Performance
Features
Conformance
Aesthetics
Reliability
Durability
Serviceability
Perceived Quality
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
What the Terms Mean (1)
PERFORMANCE
Primary operating characteristics of a product
FEATURES
bells & whistles
secondary characteristics that supplement the basic functioning
CONFORMANCE
degree to which product meets pre-established standards
(meeting specs)
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
What the Terms Mean (2)
RELIABILITY
Probability of product remaining functional over a
specified period of time
DURABILITY
amount of use one gets out of a product before it
physically deteriorates
SERVICEABILITY
speed and ease of repairs (or resolution of problems)
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
What the Terms Mean (3)
ASTHETICS
look, feel, and sound of a product
reflects individual preferences
PERCEIVED QUALITY
perceptions of quality based on other cues and indirect
measures
reputation or affiliation often key
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Competing on Quality
Six Sigma
Dimensions of Service Quality
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Service Quality (cont.)
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Aggregation
Often need to reduce the number of
dimensions. Reduced list is:
Reliability
Responsiveness
Empathy
Tangibles
Assurance
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Breakthrough Strategy
Characterization
Optimization
Institutionalization
Breakthrough
Strategy Phase
Objective
Recognize
Define
Issues
Measure
Understand Current
Analyze
Performance Levels
Improve
Achieve Breakthrough
Control
Improvement
Standardize
Integrate
Day Business is
Conducted
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define
Control
Analyze
Common sense doesnt mean commonly done or when done, done well.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, &
University of Idaho
Six Sigma
Six Sigma from the GE Perspective
Six Sigma is a highly disciplined process that helps a company focus on developing
and delivering near-perfect products and services. Why sigma? The word is a
statistical term that measures how far a given process deviates from perfection.
The central idea behind Six Sigma is that if you can measure how many
defects you have in a process, you can systematically determine how to
eliminate those and approach zero defects.
Six Sigma has changed the DNA at GE it is the way that GE works in
Everything that GE does and in every product GE designs.
What is Six Sigma? The Roadmap to Customer Improvement
www.ge.com/sixsigma/makingcustomers.html
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Design for Six Sigma
Applications of Six Sigma that focus on the design or significant
redesign of products and services and their enabling processes so that
from the beginning customer needs and expectations are fulfilled
are known as Design for Six Sigma or DFSS.
The focal aim of DFSS is to create designs that are resource efficient,
capable of exceptionally high yields, and are robust to process
variations. This aim leads to the DFSS algorithm
Define-Measure-Analyze-Design-Verify (DMADV).
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define
Verify
Design
Analyze
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Design for Six Sigma at GE:
DFSS is changing GE. With it GE can build on all of its capabilities and take
all of its product and process designs to a new level of world-class
performance and quality.
The essence of DFSS is predicting design quality up front and driving quality
measurement and predictability improvement during the early design phasesa much more effective and less expensive way to get to Six Sigma quality
than trying to fix problems further down the road.
What We Do. GE Corporate Research and Development
Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Another View of Design for Six Sigma:
DFSS is the change in the product design organization from a deterministic to a
probabilistic culture. Our people were trained to incorporate statistical analysis of
failure modes, both in products and processes. They began to incorporate design
changes that modify & eliminate design features with a probability of failure within a
predefined range of operating environments and conditions. The design organization
changed from a factor-of-safety mentality to one in which there was a quantitative
assessment of design risk. Four elements of design are most critical to the effort:
Design for producibility (design for manufacturing and assembly);
Design for Reliability;
Design for Performance (technical requirements); and
Design for Maintainability.
Design for Six Sigma: 15 Lessons Learned,
Quality Progress, Vol. 35, No. 1, pp. 33-42, January 2002.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Improvement & Innovation Focuses on high priority
problems in business processes. This uses the DMAIC methodology:
Define, Measure, Analyze, Improve, and Control.
Six Sigma
Six Sigma Strategy & Methods
Appendix 1: Corporate Leadership
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma Strategy & Methods
Appendix 2: People of Six Sigma
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
S S
IX
Six Sigma
IGMA
DEPARTMENT
OF STATISTICS
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho
S S
IX
Six Sigma
IGMA
End of Session
DEPARTMENT
OF STATISTICS
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation & Design
Dr. Rick L. Edgeman, University of Idaho