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Section II: Six Sigma Goals. What are Black Belts?. Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and work full-time on projects.

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what are black belts
What are Black Belts?
  • Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and work full-time on projects.
  • They are change agents, and by working with the employees, will increase knowledge through the acquisition of data.
  • Working together will make this philosophy part of the company culture in all aspects of the business.

II-1

what are green belts
What are Green Belts?
  • Green Belts are individuals that may come from various backgrounds in any functional area. (manufacturing or transactional/office)
  • They are respected by their peers and are proficient in basic and advanced process improvement tools.
  • Green Belts assist the Black Belts, leads process improvement teams within their own natural work team, trains and coaches on tools and analysis, is typically part-time on a project, and may lead groups or organization where multiple projects are being worked.

II-1

what is six sigma
What is Six Sigma?

Metric based on standard deviation

s

3

Process Centered

Process is slightly

Lower

Upper

WIDER than the

Specification

Specification

specifications,

s

3

Process

Limit

Limit

Six Sigma is

MUCH

more than this!

causing waste and

cost of poor quality

Determined by

Determined by

the customer

the customer

s

s

s

s

s

s

s

s

s

s

s

s

s

0

-

-

6

6

-

5

-

4

-

3

-

2

-

1

+4

+5

+1

+2

+3

+6

WASTE

WASTE

s

6

Process

s

6

Process Centered

Process FITS well

within the

specifications, so

even if the process

shifts, the values

fall well within

tolerances

s

s

s

s

s

s

s

s

s

s

s

s

+1

-

1

+2

+3

+6

-

6

-

5

-

4

-

3

-

2

+4

+5

0

II-3

what is six sigma1
What is Six Sigma?

L

o

w

e

r

S

p

e

c

U

p

p

e

r

S

p

e

c

  • A statistical number
    • 3.4 parts per million defective (+/- six standard deviations with mean shift of +/-1.5s)
  • A proven, powerful five-step methodology for improving any process
    • Define - Measure - Analyze - Improve - Control
    • Tools are nothing new, but extremely powerful when executed in strict sequence
  • A culture, a mindset
    • the relentless pursuit andelimination of variation
  • A business methodology

0

.

0

8

0

.

0

9

0

.

1

0

0

.

1

1

0

.

1

2

0

.

1

3

0

.

1

4

0

.

1

5

Sigma Defects

2 308,537

3 66,807

4 6,210

5 233

6 3.4

A Six Sigma business lives these concepts in everything they do.

II-3

what six sigma is and is not
What Six Sigma is and is not

6s is:

  • a comprehensive business methodology for achieving breakthrough improvement in performance by linking metrics and goals to innovation

6s is not:

  • a quality initiative from the quality department

The elevator speech:

Six Sigma is the relentless pursuit of variation reduction in all business processes.

II-3

dmaic
DMAIC

Characterize

Analyze

  • Define
      • Describe in detail the process/product you are trying to improve?
  • Measure
      • Baseline
  • Analyze
      • Identify the Critical Few
  • Improve
      • Reduce Variation
      • Error Proofing
  • Control
      • Control input
      • Control Plan

Define

Measure

Improve

Control

Optimize

See Quality Digest Article (MAIC_Introvert/Extrovert)

II-4

14 questions
“14 Questions”
  • What are my processes? (SIPOC)
  • What is the capability (sigma level) / defect levels (PPM) of my processes? (Defect sheets, histograms, run charts)
  • Which processes have the highest defect levels? (Pareto analysis)
  • Who would I need on my team to eliminate the defects? (Team building)
  • What is causing the variation / defects? (Cause and effect diagrams; “Fishbone”)
  • Is my gaging at fault? (Gage R&R studies)
  • Are all of the steps necessary in my process? (Process mapping)
  • Which steps can be removed to reduce cycle time, eliminate waste? (Work simplification / Waste elimination)
  • Are there set-up reduction opportunities? (SMED analysis)
  • How can I prevent this problem from reoccurring? (Error proofing, poka-yoke)
  • Are there simple visual aids that could help reduce defects? (Visual controls)
  • Are there designed experiments that could shed some light on the situation? (DOE)
  • Do I have the right tools available to do the job? Are tools organized in a neat and orderly manner in the work area? Is everything clearly labeled? (5S and ergonomics)
  • Can this problem be solved quickly, or is an in-depth investigation using a Black Belt or Kaizen event necessary? (Six Sigma project / Kaizen event identification)

These 14 knowledge questions will lead you through the DMAIC steps

II-4

why do we need six sigma
Why do we need Six Sigma?

Total Product or Service Price to Customers

Budget Constraints and

Competition Drive a

Lowered Price

Profit

Profit

Total

Cost

to

Produce

or

Provide

Waste

(COPQ)

Profit

Profit

Price $

COPQ

Theoretical

Costs i.e..,

Cost of

Doing

the

Right

Things

Right the

First Time

Waste

(COPQ)

Theoretical

COSTS

Theoretical

COSTS

0

a. b. c. d. e.

“The price of gaining knowledge

is nothing compared to the cost

of ignorance.”

Anonymous

II-4

why six sigma
Why “Six” Sigma?

There is a correlation between

a company’s Cost of Quality and the

s rating of its key processes.

II-4

why six sigma cont
Why Six Sigma cont....

Traditional Quality Costs

Inspection, Warranty,

Scrap, Rework, Rejects

Tangible...easy to measure!

4X : 6X

Additional COPQ

More setups, Expediting

Costs, Lost Sales, Late

Delivery, etc...

Intangible...difficult or

impossible to measure!

If Company Sales = $300M

Traditional Costs = 4 - 6% of Sales

= $15M

Additional COPQ = 25 - 35% of Sales!

= $90M

II-4

lessons learned
Lessons Learned
  • Must have management support and understand COPQ
  • Must see ROI and customer satisfaction increase
  • Don’t give up – no turning back
  • NEVER remove anyone from the company because of process improvement
  • Rigorous Black/Green Belt selection process
  • Six Sigma implementation should follow the DMAIC cycle
  • Must have management support and understand COPQ

II-6

in summary six sigma
In Summary, Six Sigma...
  • Provides common measurement and common goals
  • Promotes team work
  • Fixes quality problems
  • Beats the competition
  • Runs our whole business more effectively
  • Puts more money on our bottom line
  • Promotes prevention rather than detection
  • Focus should be on:
  • Quality
  • Delivery
  • Responsiveness
  • Cost

II-6

cost of poor quality copq
Cost of Poor Quality (COPQ)

See V-59

  • COPQ is defined as costs associated with using / maintaining business processes that produce services or products of inferior quality. There are four recognized categories:
    • Prevention costs: costs related to avoiding costs in three areas listed below, as well as avoiding general quality failures.
    • Appraisal costs: assessing sufficient conformance to quality requirements
    • Internal failure costs: finding/correcting defects prior to delivery to the customer
    • External failure costs: delivering inferior services or products to the customer

II-29

cost of quality examples
Cost of Quality Examples

See V-59-61

Preventative Costs:

  • Training
  • Quality Planning
  • Design Review
  • Quality system audits
  • Continuous improvement
  • Technical data review
  • Process validation
  • Marketing research
  • Customer surveys
  • Field trials
  • Supplier quality planning
  • SPC
  • Process Control

Appraisal Costs:

  • Receiving/Incoming Inspection and Test
  • Measurement Equipment
  • Qualification of Supplier Product
  • Source Inspection and Control Programs
  • Planned Inspections, Tests
  • Product or Service Quality Audits
  • Review of Test and Inspection data
  • Set-up Inspections and Tests
  • Depreciation Allowances
  • Measurement Equipment Expense
  • Special Product Evaluations
  • Evaluations of Field Stock and Spare Parts
  • Process Control Measurement

II-29

typical response to process problems
Typical response to process problems…
  • Blame and train
  • Try to widen tolerances
  • Add inspection operations
  • Which do you think will be effective?

II-29

inspection and six sigma
Inspection and Six Sigma

Four fully armored aircraft carriers launched fifteen flights of fighter planes on a daily basis. In each flight of planes, there were four F-15's, five F-14's, and a few support aircraft. For three hours the planes flew, finding target after target to attack, with few enemy fighters to bother them. Finally, after the mission was over, they did a flyby at the airfield, to show their friends how well they had fared. Their mission had been very successful.

How many F’s do YOU see?

II-29

reliability on visual inspection methods
Reliability on visual inspection methods?

1. How many F's did you find in the story after reading it only once? _______

2. How many F's did you find in the story after reading it through the second time? _______

3. What was your range from your first to second reading? _______

4. How is this similar to common inspection systems?

________________________________________________________________________________________________________________________________

5. What is the most cost-effective way to prevent non-conformances from passing through the system?

________________________________________________________________________________________________________________________________

II-29

how many f s
How Many F’s?
  • There were 29 F’s
  • How many did you find?
  • Do you still think inspection is the answer?

I cdnuoltblveieetaht I cluodaulacltyuesdnatnrdwaht I was rdgnieg  THE PAOMNNEHAL PWEOR OF THE HMUAN MNID. Aoccdrnig to rscheearch atCmabrigdeUinervtisy, it deosn'tmttaer in wahtoredr the ltteers in a word are, the olnyiprmoatnttihng is taht the frist and lsatltteer be in the rghitpclae. The rset can be a taotlmses and you can sitllraed it wouthit a porbelm. Tihs is bcuseae the huamnmniddeos not raederveylteter byistlef, but the wrod as a wlohe. Amzanig huh?

Visual inspection only catches 85% of the errors*

II-29

slide23

The Boeing Company

D1-9000

Long-Range Mission

To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability, and growth.

Objectives

To fulfill the Boeing mission, the following objectives will guide company actions.

Continuous improvement in quality of products and processes

A highly skilled and motivated workforce

Capable and focused management

Commitment to integrity

Technical excellence

Financial strength

Introduction

Continuous improvement in quality of products and processes

Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall efficiency and productivity of our design, manufacturing, administrative and support organizations.

The ability of Boeing to successfully accomplish its mission is dependent upon the quality of hardware provided by our suppliers.

The primary purpose of this document is to establish The Boeing Company’s quality requirements for its suppliers. The focus is on defect prevention rather than defect detection! Use of statistical methods described in this document enables suppliers to reduce variation in their processes in order to prevent defects. This variation reduction will provide direct benefits to both Boeing and the supplier.

II-29

the quality tradeoff
The Quality Tradeoff

1. Where do we spend most of our money?

________________________________________________________________________________________________________________________________

2. How can the small moneybag on the left balance the large moneybag on the right?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

II-29

the cost of poor quality failure costs examples
The Cost of Poor QualityFailure Costs Examples:
  • Scrap
  • Rework
  • Customer Complaint Investigation
  • Returned Goods
  • Retrofit Costs
  • Recall Costs
  • Warranty Claims
  • Liability Costs
  • Penalties
  • Customer/User Goodwill
  • Other Failure Costs

II-29

why do we need metrics
Why do we need metrics?
  • Perception and intuition are not always reality
  • To gather the facts for good decision making
  • Paradigms can limit our thought process
  • To identify/verify problem areas/bottlenecks
  • To understand our processes better (which factors are important, which are not)
  • To characterize our processes (to know how inputs and outputs are related)

II-30

why do we need metrics cont
Why do we need metrics? (cont..)
  • To validate our processes (are they performing within requirements/specs)
  • To evaluate customer satisfaction
  • To document our processes and communicate about them
  • To baseline a process
  • To see if our processes are improving
  • To determine if a process is stable or predictable and how much variation is inherent in the process

II-30

why are business processes difficult to measure
Why are Business Processes Difficult to Measure?
  • Business functions are rarely well defined nor managed as production processes
  • Measurements are typically non-existent
  • Traditional cost accounting systems don’t capture true costs of business processes
  • Many business processes are not tied to strategic objectives of the organization
  • They are complex and cross functional in nature

-Quoted from “Six Sigma on Business Processes: Common Organizational Issue”s, Six Sigma Associates

II-30

the main idea
The Main Idea:

Y = f(x)

Y is the dependent output variable of a process. It is used to monitor a process to see if it is out of control, or if symptoms are developing within a process. It is a function of the Xs that contribute to the process. Once quantified through Design of Experiment, a transfer function Y=f(X) can be developed to define the relationship of elements and help control a process.Y is the output measure, such as process cycle time or customer satisfaction. f(x) is the transfer function, which explains the transformation of the inputs into the output. xis any process input process step that is involved in producing the output.

II-30

a short story
A Short Story….

“A manager of a large agricultural collective in the former Soviet Union three years in a row won the prize for the most productive collective. The performance measure used was the number of kilos of meat produced per year. The fourth year, he shot himself. He had no breeding stock left.

II-30

a traditional view
A Traditional View

Market Share

Output

Variables

Sales Growth

Profitability

Manage the outputs.

II-30

a non traditional view
A Non-traditional View

Product Quality

Input

Variables

COPQ

Service

On-Time Delivery

Credit Terms

Customer

Training

Customer

Satisfaction

Market Share

Output

Variables

Sales Growth

Profitability

Manage the inputs - respond to the outputs.

II-30

yield
Yield

See V-18

  • The percentage of parts from a process that are free of defects.
  • It is also defined as the percentage of met commitments (total of defect free events) over the total number of opportunities.

II-35

example
Example:

Time frame: 4 weeks

Quantity launched: 100 parts in one-piece flow

Process: 2 processes including 3 operations (A-B-C)

Process 1

Operation A Yield: 100 %

Operation B Yield: 100%

Operation C Yield: 100%

Process 2

Operation A Yield: 90 %

Operation B Yield: 90%

Operation C Yield: 90%

II-35

rolled throughput yield

A

B

C

Y = 90%

Y = 90%

Y = 90%

Rolled Throughput Yield

Process 1

A

B

C

PARTS IN

PARTS OUT

100 100 100 100

Y = 100%

Y = 100%

Y = 100%

THE TOTAL PROCESS YIELD= 1*1*1= 1 or 100%

Process 2

PARTS IN

PARTS OUT

100 90 81 73

THE TOTAL PROCESS YIELD= 0.9*0.9*0.9= 0.73 or 73%

II-35

exercise fpy rty
Exercise: FPY / RTY
  • Each team will be handed 20 cards.
  • Each team will have three operators, each of whom will drop one card at a time onto a target area.
  • The method of drop will be to hold the card straight out at arms length (while standing upright) over the target area or not. Only those cards that fall completely within the target area may move on.
  • The goal is to deliver 20 completed products or units to the customer.
  • Metrics-
    • # of good units per station (A)
    • # of cards used per station (B)
    • Total time of exercise (C)
    • Total # of defects (D)

Start

Station 1

Station 2

Station 3

Customer

II-35

exercise cont
Exercise cont…

A = # of good units B = # of cards

A1= B1=

A2= B2=

A3= B3=

FPY: Y1 = A1/B1 =

Y2 = A2/B2 =

Y3 = A3/B3 =

RTY = Y1 * Y2 * Y3

Total Cost = ($10 * D) + ($2 *[B1+B2+B3])=

Average cost per unit = Total cost / 20 =

Average cycle time = C / 20 =

II-35

the idea of capability
The idea of capability:

What’s the probability of a bent fender?

II-35

the idea of control
The idea of control:

What’s the probability of a bent fender…if the driver is not in control?

II-35

process control

In Control

Special causes are eliminated

Time

Out of Control

Special causes are present

Size

Process Control

Definition of a Special Cause: A quality failure outside of the normal process that is unpredictable, intermittent or unstable.

II-35

process capability

Time

Process Capability

In Control and Capable

Variation from common causes are reduced

Lower Specification limit

Upper Specification limit

Definition of a Common Cause: A quality failure that is always present as part of the random variation in the normal process.

In Control but not capable

Variation from common causes are excessive

Size

II-35

variability
Variability

T

LSL

USL

LSL

T

USL

50%

Reduce Process Variation

to Improve

Process Capability

6s = only using half

the tolerance

II-35