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Six sigma seminar
- 4. Quality is conformance to requirement-the totality of features & characteristics of a product or service that bear on its ability to satisfy stated or implied needs. -ISO 8402
- 13. Sigma Levels Six Sigma Sigma Defect per Million Opportunities (DPMO) 1 690,000 2 308,537 3 66,807 4 6,210 5 233 6 3.4
- 14. Managing Up the Sigma Scale Sigma % Good % Bad DPMO 1 30.9% 69.1% 691,462 2 69.1% 30.9% 308,538 3 93.3% 6.7% 66,807 4 99.38% 0.62% 6,210 5 99.977% 0.023% 233 6 99.9997% 0.00034% 3.4
- 15. Technical Definition of Six Sigma Technical Definition Cp=2 Cpk=1.67 Cp=2 Cpk=1.67 Cp 2,Cpk 1 ± 1.5 LSL 3.4 DPMO 3.4 DPMO USL Cp=2 Cpk=2 Cp=2 Cpk=2 Yield 99.98% Yield 99.98% Yield 69.2% 6 to LSL 6 to USL
- 16. Six Sigma for results™ : Three Systems Approach The Three Systems of Six Sigma organizations are the Social System (culture), Technical System (tools and techniques), and the Management System (DMAIC) (Copyright by Frank Voehl, 2003. All rights reserved.) Technical System Management System Social System
- 18. Evolution of Six Sigma Quality Six Sigma Product Quality – 1940s Process Quality – 1980s Management Quality - 1990s Value Chain Quality: New Millennium A Historical Perspective
- 22. The Six Sigma Evolutionary Timeline 1736 : French mathematician Abraham de Moivre publishes an article introducing the normal curve. 1896 : Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique . 1924 : Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1941 : Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”. 1949 : U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis . 1960 : Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1818 : Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1970s : Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality. 1986 : Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola 1994 : Larry Bossidy launches Six Sigma at Allied Signal. 1995 : Jack Welch launches Six Sigma at GE.
- 24. Six Sigma and Financial Services
- 28. Six Sigma Process Steps DMAIC: To improve any existing product or process.
- 36. CASE STUDY 1.DABBAWALA IN MUMBAI
- 38. CODING
- 46. Thank u….
Editor's Notes
- © 2003 FleetBoston Financial Page
- Agenda Monday 1:00 – 2:00 PM Welcome, Introductions 2:00 – 2:30 PM Profile Of The Facilitative Leader 2:30 – 2:45 PM Break 2:45 – 3:00 PM Agreement Building 3:00 – 4:15 PM Dimensions Of Team Success 4:15 – 4:30 PM Break 4:30 – 5:00 PM Team Roles And Functions 5:00 – 5:15 PM Close-Out Day 1 Tuesday 8:30 – 8:45 AM Open And Preview Of Day 2 8:45 – 9:30 AM Decision Making 9:30 – 12:30 PM Open/Narrow/Close (Includes Break and Breakout Activity) 12:30 – 1:30 PM Lunch 1:30 – 2:15 PM Change Acceleration Process (CAP) Model 2:15 – 2:30 PM Break 2:30 – 5:00 PM Setting Up Project Teams For Success (Includes Break and Breakout Activities) 5:00 – 5:15 PM Close-Out Day 2 5:15 – 6:00 PM Individual Coaching Wednesday 8:30 – 8:45 AM Open And Preview Of Day 3 8:45 – 9:30 AM Creating A Shared Need 9:30 – 11:00 AM Breakout Activity: Creating A Shared Need (Includes Break) 11:00 – 11:45 AM Mobilizing Commitment 11:45 – 12:30 PM Breakout Activity: Mobilizing Commitment 12:30 – 1:30 PM Lunch 1:30 – 1:45 PM Debrief: Mobilizing Commitment 1:45 – 3:15 PM Inquiry Skills 3:15 – 3:30 PM Break 3:30 – 4:00 PM Shaping A Vision 4:00 – 5:00 PM Breakout Activity: Shaping A Vision 5:00 – 5:15 PM Debrief: Shaping A Vision 5:15 – 5:30 PM Close-Out Day 3 5:30 – 6:15 PM Individual Coaching
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- © 2003 FleetBoston Financial Page
- Continuous Process Improvement = vague notion of improving everything we do forever DMAIC = Define Measure Analyze Improve Control Most often a “Define” step is added before the measure step since most organizations need a baseline to start the improvement effort. There are often times other steps that might include “recognize” and end with “Standardize and integrate”. Six Sigma divides the quality pie into comprehensive compartments, that form a holistic focus at all levels of the business. This is where top-level support is so crucial. The Champion is responsible for the success of the projects. The Champion provides the necessary resources and breaks down organizational barriers. It is typical for a large part of a Champion’s bonus to be tied to his or her success in achieving SS goals. At GE this has traditionally been 40%. Project leader is called a Black Belt. All BB candidates should have a history of accomplishment since employees who are selected for BB training are usually on the fast track. BB assignments usually last for two years and has eight to twelve projects. Projects are broken down into quarters and often times the people on the team will change from quarter to quarter. Project team members are called Green Belts and they do not spend all their time on projects. They receive training similar to that of BB’s but for less time. All “Belts” are considered Agents of Change and it is extremely important to get the right people in these roles. They like new ideas and generally are the leaders of the organization. In January of 1998, GE would not consider an employee for promotion to any management job without BB or GB training. There is also a Master Black Belt level. These are experienced BB’s who have worked on many projects. They are the ones who typically know about more advanced tools, the business, and have had leadership training and often times have teaching experience. A primary responsibility is mentoring new Black Belts.
- Usually the CFO or an executive in Finance is directly involved in Six Sigma projects. The expectation is that a project will have at least a $175,000 financial impact. Each Black Belt has a financial impact of about $1M per year from the four to six projects per year he or she leads. Allied Signal CEO Larry Bossity reported that $1.5 Billion in estimated savings has already been achieved. GE started SS in 1995 under Jack Welch. They claimed net benefits by 1997. In 1998, they claimed $1.2 Billion in benefits and costs of $450 Million for a net benefit of $750 M. 1999 Annual Report claimed a net benefit of more than $2 Billion.
- © 2003 FleetBoston Financial Page