1,Six Sigma By Daniel Wu Ford Lio Ho Motor Company,2,Outline,Quality level What is Six sigma? Why we need Six sigma? Development and Deployment strategy How Six sigma merges into our daily business?,3,Overview-Four Quality Gurus,Historically companies have focused on quality issues for customer satisfaction Prior to six sigma there were four key quality gurus that most companies quality programs followed Deming Juran Crosby Taguchi,4,Deming,Deming taught: Importance of understanding variation in work processes Role of management in leading for quality Application of statistics Plan-Do-Check-Act,5,EXTERNAL,INTERNAL,CUSTOMER SATISFACTION,MARKET SHARE,PROFIT,PRODUCTIVITY,QUALITY,-Better products & services -Improved processes,-Compete with value,PRICE,-Compete with Price,-Decreased cycle time -Eliminate set-up times,COST,-Opportunity for profit,PRODUCT QUALITY,PROCESS QUALITY,-Reduce rework -Eliminate in-process inspection,-Reduce scrap -Increase product life -Eliminate incoming testing,Plan,Do,Check,Act,6,Juran,Juran taught: Breakthrough performance Pareto effect Importance of management principles Quality by design and planning,7,Jurans Contribution,Planning,Cost of Poor Quality (Percent of operating costs),Production Begins,Original zone of process control,New zone of process control,0,20,40,0,Control,Time,Improvement,Lessons Learned,Sporadic spike from observed problem,Chronic Waste (an opportunity for improvement),Control,Special cause variation Common cause variation,8,Crosby,Crosby taught: Customer requirement is performance standard Quality maturity is a journey Preventive action as basic approach,9,Taguchi,Taguchi taught: Cost of poor quality is loss to society as a whole Robust quality is designed for consistent production Design control is more important than production control,10,Taguchis Contribution,Lower Specification Limit,Upper Specification Limit,Nominal Value,Region of Customer Complaints,Region of Customer Complaints,Region of Questionable Performance,Region of Questionable Performance,Region of Specified Performance,Mean,Lower Control Limit,Upper Control Limit,Region of Desired Performance,Cost,11,What Are the Limits to Improvement?,2 Sigma,3 Sigma,4 Sigma,5 Sigma,6 Sigma,Basic Quality Tools,Statistical Tools,Design for Six Sigma (DFSS),Clean Sheet,12,Challenge in the millennium,Question confronting business leaders and managers: It is not: “How do we succeed?” Its: “How do we stay successfully?”,13,Change,“It is not the strongest that survive, nor the fittest, but those most able to adapt to change.” Charles Darwin The Origin of Species,“People do not resist change, people resist being changed.” Beckhard,14,Challenge,Resistance-the universal reaction to change. Technical resistance Political resistance Organizational resistance Individual resistance,15,Six Sigma?,Six Sigma is not a business fad tied to a single method or strategy, but rather a flexible system for improved business leadership and performance. It is not about theory, its about action.,Passion + Execution = Fast and Lasting Results,Six Sigma Focus,Delighting the customer through flawless execution Rapid breakthrough improvement Advanced breakthrough tools that work Positive and deep culture change Real financial results that impact the bottom line,Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error,(Distribution Shifted 1.5s),2,308,537,3,66,807,4,6,210,5,233,6,3.4,s,PPM,Process Capability,Defects per Million Opp.,Six Sigma corresponds to parts per billion if process is centered,Six Sigma - Goal,3 Sigma,6 Sigma,5 Sigma,4 Sigma,93.32 %,99.379 %,99.9767 %,99.99966 %,Historical,Current,Intermediate,Long-term,Sigma,Long-Term Yield,Standard,Six Sigma - Performance Target, To Produce,Improved Rolled Throughput Yield, Defects Per Unit, & Defects Per Million Opportunity Reduced Cost of Poor Quality (COPQ) Improved Capacity and Productivity,Reduced Variation In Our Processes / Products,$s,A Problem Solving Methodology,Characterize Optimize Breakthrough,T,USL,LSL,USL,LSL,The Strategy,Customer Focused - Both Internally & Externally,Which Business Function Needs It?,As long as there is a process that produces an output whether it is a manufactured product, data, an invoice, etc. we can apply the Six Sigma Breakthrough Strategy. For these processes to perform to a customer standard they require correct inputs!,6 Sigma Methods,MFG,DESIGN,SERVICE,ENG,MAINT.,ADMIN.,QA,PURCH.,Data is derived from objects, situations, or phenomenon in the form of measurements. Data is used to classify, describe, improve, or control objects, situations, or phenomenon.,1. We only use experience, not data.,2. We collect data, but just look at the nu