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Six Sigma. Focus Group Meeting Dr K. M. Madrecha Projects & Quality Manager The Kanoo Group – UAE & Oman & Consultative Committee Member Supply Chain & Logistics Group. Quality History in the Industrial World. 1787 - Concept of Interchangeability introduced.

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Six sigma l.jpg

Six Sigma

Focus Group Meeting

Dr K. M. Madrecha

Projects & Quality Manager

The Kanoo Group – UAE & Oman

&

Consultative Committee Member

Supply Chain & Logistics Group


Quality history in the industrial world l.jpg
Quality History in the Industrial World

  • 1787 - Concept of Interchangeability introduced.

  • 1870 - Concept of tolerance

  • 1900 - Concept of standardization

  • 1930 - National standardization organisations

    • 1901 UK,

    • 1920 Belgium, Canada, France, US…etc.

    • 1930s Most of the industrial countries

  • 1920s-30s Development of SQC and SPC in Bell Labs and Western Electric

    • 1924 Walter Shewhart developed Control Charts

    • Herold Dodge & Harry Romig developed sampling techniques.

  • 1940s - Deming applied sampling and control chart techniques in computer operations in US Census.

  • 1950s- Deming’s thinking reaches Japan


Quality history in the industrial world3 l.jpg
Quality History in the Industrial World

  • 1970-80s - TQM movement takes hold, national Quality Awards established

  • 1987 - ISO 9000 family of standards published.

    • 1994 - First revision of ISO 9000 standards.

    • 1996 - ISO 14001 published

  • Early 1990s Business Process Re-engineering movement became popular

  • 1995-2000 - Development of the Internet, e-business

  • 2000 - Major revision of ISO 9000 standards


Slide4 l.jpg

Build Up of Quality in Japanese Industry

(L.P.Sullivan, “The Seven Stages in

Company-Wide Quality Control”,

Quality Progress, May 1986 p 77, ASQC)

100%

7: Customer Oriented (1990s)

(QFD, deploying voice of the

customer in operational terms)

6: Cost Oriented (1970s-80s)

(Product and process designing for robustness

based on DOE)

CWQC

5: Society Oriented (1950s-60s)

(Product and process designing based on DOE)

4: Humanistic

(Education and Training to all employees)

40%

3: System Oriented (Quality Management Systems covering all departments, ie. Design, manufacturing, sales & service)

TQC

2: Process Oriented (1950s)

(QA during production processes including SPC and fool proofing)

1: Product Oriented (Upto 1940s)

(Inspection after production, audits of finished products and problem solving activities)

0%


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The Kaizen View

Change required

Maintenance

Innovation without Kaizen

Natural deterioration

Change required

Kaizen

Kaizen + Innovation

Time

(Adopted from Masaki Imai (1991), McGraw -Hill, pp 26-27)



What is six sigma l.jpg
What is Six Sigma?

  • A statistical measure for determining process capability (Six Sigma equates to 3.4 defects/million opportunities)

  • A proven set of tools and tactics for reducing variation

  • A successful business strategy (used by Motorola, Texas Instruments and Allied Signal)

  • A comprehensive philosophy about operational excellence

  • A disciplined process for identifying sources of variation / defects in a process; minimizing or eliminating that variation or those defects; and ensuring improvements stay in place.

Six Sigma is a Proven,

Data-Driven Method for Improving Processes


Tqm vs six sigma l.jpg

Lack of integration with business strategy

Leadership apathy

A fuzzy concept

Unclear goals

Too technical approach

Failure to break bureaucracy

Emphasis on incremental change

Ineffective training

Focus on technical processes (production, design)

Links to the business and personal “bottom line”

“Leadership” leadership

A “branded” concept

Clearly identified “status”

“Glamour” oriented approach

Populist form

Equal emphasis on incremental and radical change

“Branded” training

Improvement in all processes

TQM vs Six Sigma

TQM

Six Sigma


Slide9 l.jpg

BPR vs Six Sigma

BPR

Six Sigma

  • Too radical to digest

  • Traumatic

  • Anti-people

  • In practice internal cost focus

  • Participatory, people oriented

  • Enhances personal esteem of employees

  • Radical changes achievable

  • Customer focus

BPR

Six Sigma

TQM


Slide10 l.jpg

The Challenge: Do it with Speed

Implementing Change

Change Initiative

Focused On

Customer Needs

(Target)

QUALITY

(Technical Strategy)

ACCEPTANCE

(Cultural Strategy)


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Six Sigma Roadmap

  • Identify Core Processes and Key Customers

  • Define Customer Requirements (CTQs)

  • Measure Current Performance

  • Prioritise, analyse and implement improvements

  • Expand and integrate


Slide12 l.jpg

Min = 17

Max = 118

53

Capture What The Customer Sees

- The Entire Distribution Of Y Values

Understanding the Output

17

42

61

58

79

32

57

118

42

48

49

58

62

86

58

46

76

86

104

29

59

45

69

47

67

56

66

55

25

43

53

Jan

CUSTOMER’S VIEW

Time

(days)

Feb

GE’s VIEW

Mar

Average


Sipoc l.jpg
SIPOC

  • Supplier

  • Input

  • Process

  • Output

  • Customer


Slide14 l.jpg

Five Phase Improvement Process

(DMAIC)

A Rigorous, Customer-Focused Improvement Process

Define

Measure

Analyze

Improve

Control

1. What is important to the customers?

(survey / interview / inquiries)

2. What is the frequency of defects?

(measurement system / process mapping / sigma rating)

3. When, where and why do defects occur?

(statistics / pareto / FMEA / benchmarking / etc...)

4. How can we improve the process?

(design of experiments / expert brainstorming / etc...)

5. How can we maintain the process improvement?

(measurement feedback control / procedural / etc...)


Definitions l.jpg
Definitions

What Is Six Sigma?

  • CustomerAnyone Who ReceivesProduct, Service or Information

  • OpportunityEvery Chance to Do Something Either “Right” or “Wrong”

  • Successes vs. DefectsEvery Result of an Opportunity Either Meets the Customer Specification or it Doesn’t

GE Company Proprietary

November 1998


The six sigma goal l.jpg
The Six Sigma Goal

Why 99% Isn’t Good Enough

  • 20,000 pieces mail lost per hour

  • Unsafe drinking water almost 15 minutes out of each day

  • 2 short or long landings at most major airports each day

  • No electricity for almost 7 hours each month

99% Isn’t Good Enough!

“99% Good”

Defects

s

% Good

2

308,537

68%

3

66,807

93%

4

6,210

99%

5

99.99%

233

6

99.9997%

3.4


Slide17 l.jpg

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

The Objective of Six Sigmais to

Identify & Reduce Variation

Bull’s Eye

Off-Center

Too Much Spread

X

X

X

X

X

X

X

X

X

X

X

X

Centered

On-Target

X

X

Center

Process

Reduce

Spread


Process philosophy l.jpg
Process Philosophy

T

What Is Six Sigma?

?

  • Know What’s Importantto the Customer (CTQ)

  • Reduce Defects (DPMO)

  • Centre Around Target (Mean)

  • Reduce Variation (Standard Deviation)

GE Company Proprietary

November 1998


Slide19 l.jpg

Defects

Reduced Variation Results in Fewer

Defects & Higher Process Yields

With Normal Curves...

Off-Centre

Too Much Spread

Target

Target

LSL

USL

LSL

USL

Centred

On-Target

Target

Center

Process

Reduce

Spread

LSL

USL


Slide20 l.jpg

The Six Sigma Journey

Six Sigma Quality at GE

Lynn Fergusson

Manager, Corporate Initiatives

GE Canada


Slide21 l.jpg

Intensity

of

Change

* New Product Introduction

Quick Market Intelligence

Order to Remittance

Supplier Partnership

Work-Outä: Stages of GE's Culture Change

high

Six Sigma Quality

Key Strategic Initiatives:

QMI*, NPI*, OTR*, SP*, Productivity, Globalization

Change Acceleration Process:

increase success and accelerate change

Process Improvement:

Bullet Train Approach

continuous improvement, re-engineering

Productivity / Best Practices:

Best Practice Sharing

looking outside GE

Work-Outä / Town Meetings:

Action Work-Outsä

Customized Work-Outsä

low

empowerment, bureaucracy busting, action

Time

r 6/3/96


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From Our CEO...

  • “...this Six Sigma journey will change the paradigm from fixing products so they are perfect to fixing processes so that they produce nothing but perfection, or close to it.”

-Jack Welch


Slide23 l.jpg

All Employees Involved

Key Six Sigma Roles

Champion

Senior management with clout and credibility

responsible for the success of the Quality initiative

Master Black Belt

Teachers, Trainers, Reviewers and Mentors of

Black Belts (Full Time)

Black Belt

Leaders of the teams that conduct Six Sigma

projects (Full Time)

Green Belt

Six Sigma project leaders (Part Time)

Key participants in Black Belt projects gathering

data and implementing process improvements

Team Members


Six sigma organisation l.jpg
Six Sigma Organisation

Master Black Belts

(Coach,

support

project leaders)

Sponsors/

Champions

(Recognise people,

maintain

momentum/morale)

(Select,

Oversee,

guide projects)

Green Belts/

Team Leaders

(Lead projects

to success)

Black Belts

(Lead projects

to success)

GBs/Team

members

(Suggest projects,

Analyse/experiment,

implement solutions)


Slide25 l.jpg

Trained GE Employees

100%

100%

90%

100%

Six SigmaTrained

80%

60%

60%

40%

Green Belts

15%

20%

MBB’s & BB’s

0%

1996

1997

1998

1999

2000

Explosive Growth In Green Belts And Six Sigma Trained Employees

Training

All Professional Employees GB Trained By Early 1999


Slide26 l.jpg

Projects

Completed Projects Will

Reach 55,000 by 2000

20,000 More

Projects in 98

1997

1998

1999

2000

Project Completion Drives Six Sigma Learning


Slide27 l.jpg

Benefit/

Cost Ratio

1996

0.9

1997

1.8

1998

~2.5

1999

~5

Six Sigma Costs and Benefits

($ Millions)

Future Benefits Include Emphasis on Customer Impact


Slide28 l.jpg

Further Quality Initiatives at GE

  • Six Sigma @ the Customer– emphasis on becoming more customer centric; BBs at customer sites to help customers improve their processes and for GE to gain better insights about our customers

  • Six Sigma Customer Centric Metrics– communicate customer metrics to employees on an on-going basis along with how our processes are impacting the customer’s metrics

  • Six Sigma in GE’s Fulfillment Process– focus on common metrics, measure the same way with emphasis on optimizing process against customer requests

  • Six Sigma in e-Business– focus on understanding e-Business and e-Commerce capabilities


Slide29 l.jpg

Six Sigma Must Become Part of the Culture

In Summary...

The Keys to A Successful

Six Sigma Strategy Include:

  • Customer- Focus on the Customer

  • Process - Look at the Process from the Customers’ Perspective - “Outside-In Thinking”

  • Employees- Leadership Commitment


Example of six sigma in km l.jpg
Example of Six Sigma in KM

  • Quotation Timeliness in KM @ 2.95 sigma, DPMO = 73,873

  • Delivery Timeliness in KM is @ 2.38 sigma, DPMO= 189,801

  • (* Period May-August, 2001)


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The Way Forward?

  • ………………………………………………..

  • ………………………………………………..