Escolar Documentos
Profissional Documentos
Cultura Documentos
SIX SIGMA
OF STATISTICS
OFFICE: +1-208-885-4410
CUSTOMER & COMPETITIVE INTELLIGENCE FOR PRODUCT, PROCESS, SYSTEMS & ENTERPRISE EXCELLENCE
DEPARTMENT
REDGEMAN@UIDAHO.EDU
DR. RICK EDGEMAN, PROFESSOR & CHAIR SIX SIGMA BLACK BELT
S S
IX
DEPARTMENT
IGMA
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.
OF STATISTICS
What We Do. GE Corporate Research and Development Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html
Define
Control
Institutionalization
Define
Control
Team Charter
Table of Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. EXECUTIVE SUMMARY 3 PROJECT OBJECTIVES3 PROJECT SCOPE ..3 BUSINESS CASE 3 PROJECT ORGANIZATION 3 SCHEDULES.4 COMMUNICATION PLAN ...4 PROJECT CONTROL PROCEDURES ...4 PROJECT ASSUMPTIONS ..4 CONFLICT RESOLUTION . 5
Project Scope
On what process will the team focus on? What are the boundaries of the process we are to
improve? Start point? Stop point? What resources are available to the team? What (if anything) is out-of-bounds for the team? Under what (if any) constraints must the team work? What is the time commitment expected of team members? What are the advantages to each team member for the time commitment?
SMART
Problem & Goal Statements Should be:
Specific Measurable Attainable Relevant Time-Bound
6. Determine where in the process the CTQs can be most seriously affected
Use a detailed flowchart Estimate which steps contain the most variability
Process
Outputs
Customers
Steps
Inform Loop
Process
Inputs Suppliers
How does Six Sigma Work?
The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with.
DESIGN FOR
S IX SIGMA
OF STATISTICS
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR SIX SIGMA BLACK BELT
What We Do. GE Corporate Research and Development Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html
Measure and match performance to customer requirements. Analyze and assess the design for the process, product or service. Design and implement the array of new processes required for
the new process,product or service.
ImprovementFocuses on high priority problems in business processes. This uses the DMAIC methodology: Define, Measure,
Analyze, Improve, and Control.
DesignDesign For Six Sigma (DFSS) addresses new or fundamentally poor processes. The methodology is called the DMADOV model: Define, Measure, Analyze, Design, Optimize, and Verify. Business Process Management aids in definition and
management of operations and activities in terms of core and enabling processes. The resulting process management systems provide a foundation of process definition and baseline data for all process design and improvement activities.
Define
the Project
1 Develop Charter
Measure
Customer Requirements
1 Understand VOC
Analyze
Concepts
1 Identify Key Functions
Design
The Product
1 Ident. & Prior. High-level Design Require. 2 Develop Design Requirements
Verify
Design Performance 1 Conduct and Evaluate Pilot 2 Implement the Design 3 Close Project
3 Generate Concepts
3 Develop HighLevel Design 4 Test High-Level Design 5 Ident. & Prior. Detailed Design Elements 6 Develop the Detailed Design 7 Test Det. Design 8 Develop Proc. Mgt. Plans 9 Review Pre-Pilot Design 10 Tollgate Review
4 Reassess Risk
5 Tollgate Review
5 Tollgate Review
6 Tollgate Review
STEP
DEFINE the project
Develop a clear project definition.
TOOLS
Market Analysis Tools:
Mkt. Forecasting Tools; Customer Value Analysis; Technology Fore. & Visioning; Competitor Analysis. Process Analysis Tools: Control Charts; Pareto Charts. Project Planning Tools: Work Breakdown Structures; PERT Charts; Gantt Charts; Activity Network Diagrams. DMADV Specific Tools: Project Charter; In/Out of Scope Tool; Organizational Change Plan
OUTPUTS
Project Charter Project Plan Organizational Change Plan Risk Management Plan Tollgate Review & Storyboard Presentation
Develop organizational change plans, risk management plans, and project plans.
STEP
MEASURE Customer Req.
TOOLS
Cust. Segmentation Tree
Data Collection Plan Customer Research Tools: Interviews; Contextual Inquiry; Focus Groups; Surveys. VOC Table Affinity Diagrams Kano Model Perform. Benchmarking
OUTPUTS
Prioritized CTQs Updated risk management plan and multistage project plan, if appropriate. Tollgate Review & Updated Storyboard
OUTPUTS
Selected concept for further analysis and design
Creativity Tools: Brainstorming/ Generate, evaluate, Brainwriting; Tollgate Review & and select the Analogies; Updated Storyboard concept that best Assumption Busting; meets the CTQs Morphological Box. within budget and resource constraints. Pugh Matrix Tollgate Review Forms
STEP
DESIGN the product
Develop the high-level and detailed design.
TOOLS
QFD Matrix Simulation Prototyping Design Scoreboard FMEA / EMEA
OUTPUTS
Tested and approved high-level design Tested and approved detailed design Detailed updated risk assessment Plans for conducting the pilot Completed design reviews and approvals Tollgate Review & Updated Storyboard
TOOLS
Planning Tools Data Analysis Tools: Control Charts; Pareto Charts. Standardization Tools: Flowcharts; Checklists; Process Management Charts.
OUTPUTS
Working Prototype with Documentation Plans for full implementation Control Plans to Help Process Owners Measure, Monitor, and Maintain Process Capability. Transition Ownership to Operations Completed Project Doc. Project Closure Final Tollgate Review & Updated Storyboard
DFSS as a Means of
Continual customer feedback and ideas are essential to achieve a partnership with the customer. In an age where competition for customers is relentless, companies that make the customer a partner in the DFSS activity and maintain that partnering throughout the product life cycle have a customer for the product life cycle.
DFSS as a Means of
Serving Customers:
Lesson 2
A DFSS must be inclusive, and a conscious effort must be made to embed it in the fabric of the entire organization. All employees must understand how it works and why it benefits the customer, the business and themselves.
Lesson 1
Drive product and process compatibility across the entire value chain and product life cycle.
Lesson 2
The value chain of your customer includes everything incorporated into the final product. Substantial elements often come from suppliers and subcontractors. If they are not integrated into the DFSS activity, then the final product is sub-optimized.
Lesson 3
Six Sigma activity to reduce variability in the factory is a losing process if the new designs cause new variability. DFSS is intended to reduce the introduction of new variability and achieve process stability and uniform quality faster.
Product-Process Fusion Through DFSS: Lesson 4 Metrics must tell the story of the organizations performance AND must be discussed regularly among the staff in each area.
DFSS can have applicability in diverse industries some that are nontraditional such as pharmaceuticals, if the design and production is integrated and balanced.
The trend toward engineering efficiency in which organizations assign engineers from pools to cover assignments has made engineers a commodity at just the point in time when the loss of domain knowledge makes the need for longevity in an organization essential.
DESIGN FOR
SIX SIGMA
OF STATISTICS
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR SIX SIGMA BLACK BELT
Black Belts
Act as Breakthrough Strategy experts and be Breakthrough Strategy
enthusiasts. Stimulate Champion thinking. Identify the barriers. Lead and direct teams in project execution. Report progress to appropriate leadership levels. Solicit help from Champions when needed. Influence without direct authority. Determine the most effective tools to apply. Prepare a detailed project assessment during the Measurement phase. Get input from knowledgeable operators, first-line supervisors, and team leaders. Teach and coach Breakthrough Strategy methods and tools. Manage project risk. Ensure that the results are sustained.
Green Belts
Function as Green Belts on a part-time basis, while performing
their regular duties. Participate on Black Belt project teams in the context of their existing responsibilities. Learn the Six Sigma methodology as it applies to a particular project. Continue to learn and practice the Six Sigma methods and tools after project completion.
With Six Sigma embedding itself deeper into GEs processes, they
achieved the previously impossible operating margin of 16.7% in 1998 up from 13.6% in 1995.
In dollar amounts, Six Sigma delivered more than $300 million to GEs
1997 operating income and more than $600 million in 1998.
MISTAKEN BELIEFS:
Some companies still believe that improving commercial processes is less
important than improving industrial processes or that seemingly intangible commercial processes cant be controlled.
AlliedSignal
70,000 Employees Chemicals, Fibers, Plastics, Aerospace
Products, Automotive Products. Larry Bossidy came from GE to become CEO in 1991 Market Value = $4 billion in 1991 Market Value = $29 billion by the end of 1998 Market Value = $38 billion by 2000.
AlliedSignal
TODAYS GOALS: 6% productivity increase Reduced Inventory Full-Capacity Utilization Little or no Overtime Reliable Products 5s Manufacturing 5s Designs Predictable Cash Flow 5s Suppliers BY END OF 1998: Total Impact of Six Sigma Within AlliedSignal Reached $2 Billion. Six Sigma Profits in Service Areas including:
Order Processing Shipping Procurement Product Innovation
We cant tell other organizations how to do Six Sigma, but we can tell them how not to do it. Allied has made mistakes along the way and, in the process, learned some tremendous lessons.
Having recognized the need to train managers in the Six Sigma Breakthrough
Strategy, Allied dedicated the next year to training 1,000 leaders in the organization in how Six Sigma worked, and in its potential financial impact. Training sessions lasted 3.5 days and emphasized Six Sigmas impact on: Profitability through improved processes; The Crucial role of Black Belts, RATHER THAN teaching statistical processes involved in achieving Six Sigma. Initially trained top managers at each of Allieds 11 Strategic Business Units and gradually worked their way down the organization to middle management, line supervisors, and so on. COMPLAINTS FROM BLACK BELTS WITHIN SIX MONTHS: Management turnover and too much promotion of Black Belts into management before benefit from the training and skills could be realized. SO training had to be ongoing.
Allied is not in the business of measuring activity. We are in the business of measuring results. IF something doesnt have a positive impact on customer satisfaction, our shareholders, and employees, and in the process makes a lots of money, THEN we just flat out arent going to do it. RICHARD A. JOHNSON, Director of Six Sigma at AlliedSignal
months experience mastering the Breakthrough Strategy back into the organization to create Six Sigma behavior & thinking. 40% of Black Belts were promoted to departmental or plant managers. Others left AlliedSignal for higher-paying jobs at suppliers. Others completed only one or two projects before they were pulled back into their previous assignments with leadership not properly reviewing projects and properly acting upon financial opportunities created by Black Belts so that managers felt that Six Sigma wasnt particularly important. 50% of Black Belts were absorbed back into the organization within six months. NOW BLACK BELTS must work at least 18-24 months on a series of Six Sigma projects prior to a change of roles. TIME & EXPERIENCE ARE VIEWED AS CRITICAL TO SIX SIGMA SUCCESS AND THE MATURITY OF THE BLACK BELT.
Lesson Four: Supplier Capability is Critical to the Success of the Breakthrough Strategy
The Majority of AlliedSignals Suppliers were operating at about three sigma. This prevented the company from realizing the full benefits of Six Sigma. AlliedSignal recognized that they needed to view suppliers as their partners. AlliedSignal began TRAINING its suppliers and offering other technical
assistance. To achieve Six Sigma it is important to minimize the number of suppliers, limiting these to those that have been trained in the Breakthrough Strategy. Not only does AlliedSignal provide training, BUT then follows up by dedicating ITS OWN BLACK BELTS to mentor and work with critical suppliers. AlliedSignal estimates that for every 300 Black Belts it trains, 100 are either customers or suppliers.
W. Edwards Deming:
End the Practice of Awarding Business on Price Tag Alone.
Lesson Five:
There is No Such Thing as Operator Error
It is PROCESSES not PEOPLE that Fail. This maps to one of Demings 14 Points for Management:
DRIVE OUT FEAR.
FIVE ACTIONS TO PERPETUATE SIX SIGMA: 1. TRAINING: Allieds employee base changes enough every nine to ten months that maintenance of Six Sigma culture requires that new employees be trained in the Breakthrough Strategy. 2. Senior management involvement. 3. Continued on-site leadership training, and alignment of goals among divisions to reinforce Breakthrough Strategy thinking and goals. 4. Requiring Black Belts to dedicate a minimum of two years to working on Six Sigma projects. 5. Supplier involvement and improvement in Six Sigma initiatives.
Products and services should be improved ONLY to the degree that customer value is increased. Six Sigma is a program designed to generate money for the company, either through savings resulting from reduced costs, or from boosting sales by increasing customer satisfaction.
AlliedSignal:
Hindrances to Six Sigma Success
Working on too many improvements at the same time. Not having someone accountable for the problem. Not being a process-based company. A lack of trained and experienced people. Middle managers who fear uncertainty about future roles. Lack of metrics focused on customer value-added
processes. Lack of integrated information and financial systems. Fragmented, staff-driven approaches.
DESIGN FOR
End of Session
DEPARTMENT
REDGEMAN@UIDAHO.EDU
SIX SIGMA
OF STATISTICS
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR SIX SIGMA BLACK BELT