1 TLC, SSEO 1.5 22002Thomas A. Little, Ph.D. President, Thomas A. Little Consulting2 TLC, SSEO 1.5 22002AudiencePresentation is designed for those Executives and Managers who are considering implementing Six Sigma and want to understand its core concepts and benefits. Provides an overview and orientation of six sigma methodologies and organizational requirements. The Executive Overview is presented prior to six sigma implementation, Champion and Black Belt training. 382 Stanwick Street Brentwood, CA 94513 1-925-285-1847 drlittledr-tom.com www.dr-tom.com3 TLC, SSEO 1.5 22002ObjectivesAs a result of attending this course the participant will be able to: Describe the Six Sigma Breakthrough strategy Understand the Champions role in the Six Sigma Initiative Relate the roles and responsibilities of the Champion, Black Belt, Green Belt and Team Members Identify projects with high probability for success Understand the DMAIC methodology and how it applies to improvement projects Establish and utilize dashboard metrics Assist in project management and project goal completion4 TLC, SSEO 1.5 22002Presentation OutlineSection ISix Sigma IntroductionSection IIManagement and Organizational Infrastructure for Six SigmaSection IIIDMAIC Breakthrough MethodologySection IVImplementation Strategy 5 TLC, SSEO 1.5 22002Section ISection I Six Sigma IntroductionWhat is Six Sigma?Three elements of Six SigmaDMAIC roadmapExpected benefits of Six Sigma Corporate results of Six Sigma6 TLC, SSEO 1.5 22002-6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s 6s to LSL6s to USLCp=2 Cpk=1.5Cp=2 Cpk=1.5Cp=Cpk = 21.5sLSL12.5%12.5%75%3.4 DPMO3.4 DPMOUSLTechnical Definition of Six SigmaTechnical Definition (Motorola)Evolution to:A Management driven, scientific methodology for product and process improvement which creates breakthroughs in financial performance and Customer satisfaction7 TLC, SSEO 1.5 22002What is Six-Sigma?Management mandated and directed improvement program focused on breakthroughs in financial performance and customer satisfactionUses Champions, Black Belts and Green Belts to facilitate changeFocused on core business and Customer needsA systematic method for process and product improvementA Greek symbol for measuring performance variationA metric for evaluating performance qualityA standard of excellence (3.4 defects per million opportunities)8 TLC, SSEO 1.5 22002Customer Satisfaction + Efficient Systems = Improved ProfitabilityTwo types of projects to improve financial performance: Increase Revenue “Grow the Business” Improve Customer satisfaction, sales, capacity and market position Decrease the Cost of Goods Sold Reduce variation and defects Improve yields Understand root cause of issues and eliminate the source of problems Automate process “workflow” Improve process performance and reduce waste using lean principles9 TLC, SSEO 1.5 22002Center ProcessReduce SpreadOff-TargetToo Much VariationCentered On-Target The objective is to understand customer requirements and reduce process variation and defectsReduce Process Variation however, outside the control of the company, individual or teamDMAIC Methodology Analyze75 TLC, SSEO 1.5 22002Root Cause(s) Validation and Summary List all probable Root Cause(s) Rank them in terms of effect size Determine the additional tests and or manipulation you plan to use to validate the factors (X) which have the greatest effect on the response (Y) Identify potential methods for controlling the factors which create the problem When validation is complete summarize all selected Root Cause(s) and their effect sizeDMAIC Methodology Analyze76 TLC, SSEO 1.5 22002Root Cause Analysis ExampleDMAIC Methodology Analyze77 TLC, SSEO 1.5 22002Six Sigma DMAIC ImproveImprove Activities Develop Solution Alternatives Assess Risks and Benefits of Solution Alternatives Validate Solution using a Pilot Implement Solution Determine Solution Effectiveness using DataImprove Quality Tools Design of Experiments Brainstorming FMEA Risk assessmentDMAIC Methodology Improve78 TLC, SSEO 1.5 22002Improve FlowBased on RCA Brainstorm Potential Solutions, Costs, Risks and BenefitsImplement changes and determine improved process capability. Examine opportunities for standardization and translationDesign Experiments where appropriateReview and approve solutions with ManagementTest and Validate solutionsReach Goals? YNDMAIC Methodology Improve79 TLC, SSEO 1.5 22002Use general brainstorming techniques to generate process and design change ideas which will eliminate the root cause of the problem.Separate ideas into short term and long term. Long term with take 3 months or more to implement, short term is less than 3 months.Use voting and management involvement to generate consensus on direction of approachA single solution is not required at this point i