Chapter 14 - Six-Sigma Management and Tools

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Chapter 14 - Six-Sigma Management and Tools

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1. 11/13/07 SJSU Bus. 142 - David Bentley 1 Chapter 14 - Six-Sigma Management and Tools 6S Organization, DMAIC, Taguchi Method, Robust Design, Design of Experiments, Design for Six Sigma, Reasons for 6S Failure

2. 11/13/07 SJSU Bus. 142 - David Bentley 2

3. 11/13/07 SJSU Bus. 142 - David Bentley 3 Six Sigma Evolution Started as a simple quality metric at Motorola (Bill Smith) Migrated to Allied Signal (acquired Honeywell and took its name) Picked up by General Electric Commitment by CEO Jack Welch Grown to be an integrated strategy for attaining extremely high levels of quality

4. 11/13/07 SJSU Bus. 142 - David Bentley 4 What is Six-Sigma?

5. 11/13/07 SJSU Bus. 142 - David Bentley 5 Percent Not Meeting Specifications +1S = 32% +2S = 4.5% +3S = 0.3% +6S = 0.00034%

6. 11/13/07 SJSU Bus. 142 - David Bentley 6 Six-Sigma Levels

7. 11/13/07 SJSU Bus. 142 - David Bentley 7 Statistics - DPU Defect Six Sigma: “any mistake or error passed on to the customer” ??? General view: any variation from specifications DPU (defects per unit) Number of defects per unit of work Ex: 3 lost bags ÷ 8,000 customers = .00375

8. 11/13/07 SJSU Bus. 142 - David Bentley 8 Statistics – dpmo (defects per million opportunities) Process may have more than one opportunity for error (e.g., airline baggage) dpmo = (DPU × 1,000,000) ÷ opportunities for error Ex: (3 lost bags × 1,000,000) ÷ (8,000 customers × 1.6 average bags) = 234.375

9. 11/13/07 SJSU Bus. 142 - David Bentley 9 Statistics – dpmo (cont’d) May extend the concept to include higher level processes E.g., may consider all opportunities for errors for a flight (from ticketing to baggage claim)

10. 11/13/07 SJSU Bus. 142 - David Bentley 10 Statistics - Off-Centering Represents a shift in the process mean Impossible to always keep the process mean the same (this WOULD be perfection) Does NOT represent a change in specifications Control of shift within ± 1.5 s of the target mean keeps defects to a maximum of 3.4 per million

11. 11/13/07 SJSU Bus. 142 - David Bentley 11 Statistics - Off-Centering (cont’d) Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

12. 11/13/07 SJSU Bus. 142 - David Bentley 12 k-Sigma Quality Levels Number of defects per million For a specified off-centering and a desired quality level

13. 11/13/07 SJSU Bus. 142 - David Bentley 13 k-Sigma Quality Levels Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

14. 11/13/07 SJSU Bus. 142 - David Bentley 14 Six Sigma and Other Techniques

15. 11/13/07 SJSU Bus. 142 - David Bentley 15 Organizing Six Sigma

16. 11/13/07 SJSU Bus. 142 - David Bentley 16 Key Players

17. 11/13/07 SJSU Bus. 142 - David Bentley 17 Distribution of Six Sigma Trained Employees

18. 11/13/07 SJSU Bus. 142 - David Bentley 18 Six Sigma Tools DMAIC, Taguchi Method, Design for Six Sigma

19. 11/13/07 SJSU Bus. 142 - David Bentley 19 DMAIC

20. 11/13/07 SJSU Bus. 142 - David Bentley 20 DMAIC Overview

21. 11/13/07 SJSU Bus. 142 - David Bentley 21 Define – (1)

22. 11/13/07 SJSU Bus. 142 - David Bentley 22 Define – (2)

23. 11/13/07 SJSU Bus. 142 - David Bentley 23 Define – (3)

24. 11/13/07 SJSU Bus. 142 - David Bentley 24 Measure – (1)

25. 11/13/07 SJSU Bus. 142 - David Bentley 25 Measure – (2)

26. 11/13/07 SJSU Bus. 142 - David Bentley 26 Measure – (3)

27. 11/13/07 SJSU Bus. 142 - David Bentley 27 Measure – (4)

28. 11/13/07 SJSU Bus. 142 - David Bentley 28 Analyze – (1)

29. 11/13/07 SJSU Bus. 142 - David Bentley 29 Analyze – (2)

30. 11/13/07 SJSU Bus. 142 - David Bentley 30 Analyze – (3)

31. 11/13/07 SJSU Bus. 142 - David Bentley 31 Analyze – (4)

32. 11/13/07 SJSU Bus. 142 - David Bentley 32 Improve

33. 11/13/07 SJSU Bus. 142 - David Bentley 33 Control Phase

34. 11/13/07 SJSU Bus. 142 - David Bentley 34 The Taguchi Method

35. 11/13/07 SJSU Bus. 142 - David Bentley 35 The Taguchi Method provides:

36. 11/13/07 SJSU Bus. 142 - David Bentley 36 Design of Experiments (DOE)

37. 11/13/07 SJSU Bus. 142 - David Bentley 37 Robust Design

38. 11/13/07 SJSU Bus. 142 - David Bentley 38 The Taguchi Process

39. 11/13/07 SJSU Bus. 142 - David Bentley 39 Design for Six Sigma DFSS

40. 11/13/07 SJSU Bus. 142 - David Bentley 40 Design for Six-Sigma (DFSS)

41. 11/13/07 SJSU Bus. 142 - David Bentley 41 DMADV

42. 11/13/07 SJSU Bus. 142 - David Bentley 42 IDOV

43. 11/13/07 SJSU Bus. 142 - David Bentley 43 Reasons for Six Sigma Failure

44. 11/13/07 SJSU Bus. 142 - David Bentley 44 Reasons for Six-Sigma Failure - (1)

45. 11/13/07 SJSU Bus. 142 - David Bentley 45 Reasons for Six-Sigma Failure - (2)

46. 11/13/07 SJSU Bus. 142 - David Bentley 46 Summary

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