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INTRODUCTION TO. SIX SIGMA GREEN BELT TRAINING. WHAT IS SIX SIGMA?.

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slide2

WHAT IS SIX SIGMA?

Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual, and practical definitions. Six Sigma has three different levels:1. As a metric 2. As a methodology 3. As a management system Essentially, Six Sigma is all three at the same time.

slide3

Six Sigma as a Metric

The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO). Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

slide5

Six Sigma as a Methodology

Six Sigma is a business improvement methodology that focuses an organization on:Understanding and managing customer requirements Aligning key business processes to achieve those requirements Utilizing rigorous data analysis to minimize variation in those processes Driving rapid and sustainable improvement to business processes At the heart of the methodology is the DMAIC model for process improvement. DMAIC is commonly used by Six Sigma project teams and is an acronym for:Define opportunityMeasure performanceAnalyze opportunityImprove performanceControl performance

slide6

Six Sigma as a Methodology

Voice of the Customer

Analyze

Improve

Measure

Define

Control

Institutionalization

TheDMAICModel

slide8

Six Sigma as a Management System

When practiced as a management system, Six Sigma is a high performance system for executing business strategy. Six Sigma is a top-down solution to help organizations:Align their business strategy to critical improvement efforts Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are sustainedThe Six Sigma Management System drives clarity around the business strategy and the metrics that most reflect success with that strategy. It provides the framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.

slide9

Six Sigma as a Management System

GE WORKOUT

Quick Wins

SIX SIGMA

LEAN SIGMA

Accelerated Improvement

(DMAIC)

(DMAIC +)

Incremental Improvement

Integrated Improvement

STRATEGY

STRATEGY

FEEDBACK

Big Y’s

  • VOICE OF...
    • Market
    • Customer
    • Employee
    • Business

VOICE OF...

RESULTS:

Top-LevelIndicators

(Dashboards)

Market

BUSINESS

OBJECTIVES

Customer

If new product

If new product

Employee

or process

or process

Business

DFSS

DFSS

(DMADV)

Fundamental Redesign

EXECUTION (PROCESS MANAGEMENT)

PROCESS

PROCESS

MAPS

PROCESS

CONTROL

D

D

PROCESS

PROCESS

S

S

MAPS

SYSTEMS

SYSTEMS

PROCESSES

R

R

U

U

I

I

P

P

Sub Y’s

V

V

TOOLS

P

P

E

E

ALIGNMENT

O

O

CORE & ENABLING PROCESSES

SKILLS

S

S

R

R

Y

Y

1

1

T

T

TRAINING

S

S

y

y

1

1

Flexible Problem Solving Models

PROCESS IMPROVEMENT

Projects

WORKOUT

SIX SIGMA

LEAN SIGMA

The power of the Lean Tools &

The power of the Lean Tools &

Principles fully integrated into

Principles fully integrated into

DMAIC & DFSS

DMAIC & DFSS

slide10

Six Reasons Why Business Leaders Love Six Sigma?

  • Six Sigma impacts the bottom line
  • Six Sigma drives strategy execution
  • Six Sigma generates robust, flexible business processes
  • Six Sigma improves human performance across the enterprise
  • Six Sigma is highly scalable
  • Six Sigma is a low risk investment

Note: Robustness is the condition of a product or process design that remains relatively stable with a minimum of variation even though factors that influence operations or usage, such as environment and wear, are constantly changing.

slide11

Six Habits of Six Sigma Leaders

  • Delivering customer value (exhibit passion, listen actively, communicate partnership)
  • Focusing on execution (result-driven, resource conscious, process-oriented)
  • Making sound, data-driven decisions (critical thinking, decisiveness, accountability)
  • Managing performance (set goals, track progress, manage details)
  • Advocating breakthrough improvements (assertiveness, influence, tenacity)
  • Supporting team-based implementations (manage teams, reward teams)
slide12

Business

and/or Customer

Requirement

6

5

4

3

Defects

Good

2

1

Six Tools Every SS BB/GB Loves

  • Quality Function Deployment (QFD)—helps to drive customer-focused development across the design process
  • Cause and Effect (C&E) Matrix—helps to facilitate team decision making
  • Failure Modes and Effects Analysis (FMEA)—helps to identify and address weaknesses in a product or process before they occur
  • Control Charts—helps to assess process stability
  • T-Student Test (t-test)—helps to validate test results using small sample size
  • Design of Experiments (DOE)—helps to make the most of valuable resources
slide13

Six Reason Why Six Sigma Fails?

  • Lack of visible senior leader sponsorhip
  • Lack of alignment to a clear organization strategy
  • Lack of performance tracking and accountability
  • Failure to link projects to bottom-line impact
  • Insufficient or ineffective alocation of human resources
  • Over-emphasis on rigid approach and technical tools
slide14

SIX SIGMA IMPLEMENTATION

AT PT MATTEL INDONESIA

slide15

PT Mattel’s Vision: “A globally competitive manufacturer of premier toy brands through continuous improvement”

slide16

PRACTICAL PROBLEM (PT Mattel’s Needs)

L

E

A

N

S

U

P

P

L

Y

C

H

A

I

N

S

I

X

S

I

G

M

A

STATISTICAL PROBLEM

STATISTICAL SOLUTION

PRACTICAL SOLUTION

(MATTEL’S SMART OBJECTIVES)

SMART = Specific, Measurable,

Attainable/Actionable,

Result-oriented, Time-bound

PT MATTEL’S VISION

slide17

PT Mattel’s COPIS IDENTIFICATION

Vision: A globally competitive manufacturer of premier toy brands through CI

SMART OBJECTIVES

  • To Increase Direct Labor Efficiency from ____% to ____%
  • To Reduce Scrap from _______ PPM to ______ PPM
  • To Improve Production Schedule Adherence from ______ % to ______ %
  • To Improve Daily Schedule Adherence from _____% to ______%
  • To Reduce Lot Buy Off from _____ PPM to ______ PPM
  • To Reduce Containment Audit from _______ PPM to ______ PPM
  • To Maintain Lost Day Incident Case at Zero Level (Always Zero Goal)

Customers Outputs Processes Inputs Suppliers

Product Type

#1

#2

#3

#4

#5

#6

etc

Customers’

Needs

(Voice of

Customer =

VOC)

KPOV

(Key Per-

formance

Outputs

Variables) –

CTQ (Critical To

Quality),CTS (CT

Schedule, CTC

(CT Cost)

Processes

Needs

(Voice of

Processes =

VOP)

Inputs

Requi-

rements

Suppliers

Require-

Ments &

Selection

COPIS = Customer, Outputs, Processes, Inputs, Suppliers

slide18

Process

Steps

Outputs

Inputs

Suppliers

Customers

Six Sigma COPIS Model

How does Six Sigma Work?

The Voice of the Customer (VOC) is aggressively 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.

From Mattel’s Concept to Market: the Voice of the Customer

slide19

PT MATTEL’S SIPOC PROJECTS

Product

Type

PT MATTEL’S LEAN SUPPLY CHAIN

Suppliers  Inputs  Processes  Outputs  Customers

#1

#2

#3

#4

etc

LEAN-SIX SIGMA PROJECTS

(PT MATTEL’S PROJECTS)

LEAN-SIX SIGMA PROJECTS

APPROACH

(DMAIC)

PROJECT’S OBJECTIVES  LEAN SIX SIGMA TOOLS

Define

Measure

Analyze

Improve

Control

slide20

Six Sigma Way of Transformation

  • Six Sigma Way is a best-in-class change strategy for accelerating improvements in manufacturing processes and services.
  • Six Sigma Way is:
  • Mindset/Way of thinking
  • A way of doing manufacturing/service business
  • Methodology/Tools for continual improvement

Six Sigma Way