Six Sigma - DMAIC Methodology

Six Sigma - DMAIC Methodology

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  SIX SIGMA IN SERVICESOVERVIEW GROUP14 1
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  INDEX INTRODUCTION HISTORY OF SIXSIGMA WHERE IT CAN BE APPLIED? LEAN SIX SIGMA CHARTS AND CALCULATIONS ANALYSING APPROACH 2 BENEFITS
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  INTRODUCTION • Taken froma letter in the Greek alphabet, the term “sigma” is used in statistics as a measure of variation. • The strategy provides companies with a series of interventions and statistical tools that can lead to breakthrough profitability and quantum gains in quality, whether a company’s products are durable goods or services. • sigma is an aggressive campaign to boost profitability,increase market share, and improve customer satisfaction has been launched by a select group of leaders in American industry. GROUP 14 3
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  HISTORY OF 6SIGMA • In 1981, Bob Galvin, then chairman of Motorola, challenged his company to achieve a tenfold improvement in performance over a five-year period. • In 1985, Smith presented a paper concluding that if a product were found defective and corrected during the production process, other defects were bound to be missed and found later by the customer during the early use of the product. • On the other hand, if the product was assembled error free, the product rarely failed during early use by the consumer. And thus started Motorola’s hunt for error free devices and implementation of Six Sigma. GROUP 14 4
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  Where it canbe applied? Six Sigma can be applied to all company processes It basically has three parts: • • Design applications (Design for Six Sigma) • • Manufacturing applications (Operational Six Sigma) • • Administrative and Service applications (Transitional six sigma) GROUP 14 5
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  LEAN SIX SIGMA LEAN SIX SIGMA LEAN SIX SIGMA GROUP14 6
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  Lean Six Sigmafor Services • Lean Six Sigma combines the emphasis on maximizing flows and reducing waste from Lean with variation reduction and an organizational infrastructure and specific improvement process from Six Sigma. • Lean Six Sigma for services focuses on improving the customer experience and service outcomes by addressing poor flow and excess waste and variation in the service delivery process for both the firm and customer co-producers.
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  The lean approachto process improvement includes: • A focus on customers (both internal and external) • Maximizing process velocity (i.e., flow) • Tools focused on analyzing process flow and delay times at each activity in a process • Eliminating waste • Separating “value-add” from “non-value-add” and addressing the root causes of non-value-add activities • Reducing unnecessary complexity and its costs
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  CHALLENGES • High inputand process variation Variation reduction is a more complicated and sensitive issue than in manufacturing • Poor tracking of flow, especially of customers in the process Customers cannot be treated like inventory • A tradition of individuality and employee discretion • Lack of meaningful data and data-based decision-making Quality metrics are often subjective (although time is an example of an objective metric in transactional services) • Employees and customers cannot be controlled like machines GROUP 14 9
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  SOURCES OF DEFECTS GROUP14 10 • Arrival variability • Request variability • Capability variability • Efforts variability • Subjective preference variability CUSTOMER INTRODUCED VARIABILITY • Process design • Employees • Requirements INTERNAL PROCESS VARIABILITY
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  CALCULATION OF PROCESSSIGMA DEFINATION ABBREVIATIONS FORMULA VALUES Number of defects bor error opportunities per unit Total no. Of units Defects Defects per unit Defects per opportunities Defects per million opportunities Sigma level Yield O N D DPU DPO DPMO S Y D/N DPU/O DPO*1000000 1-DPO 4 100 16 0.16 0.04 40,000 3.25 96% GROUP 14 11
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  GROUP 14 12
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  SIX SIGMA METRICS GROUP14 13
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  SIX SIGMA METRICCURVE GROUP 14 14
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  CALCULATE PROCESS SIGMARATE GROUP 14 15 A Process with 10 Steps Each Process Step has a 3σ Quality Level = 93.32% Yield The probability of success (non-defective) at each step = 0.9332 The probability of overall success = 0.933210 = 0.5008
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  DMAIC APPROACH DEFINE MEASUREANALYSE IMPROVE CONTROL GROUP 14 16
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  Six Sigma DMAICTools Define Improve ControlAnalyzeMeasure •Project selection tools •PIP management process •Value stream map •Financial analysis •Project charter •Multi-generational plan •Stakeholder analysis •Communication plan •SIPOC map •High-level process map •Non-value-added analysis •VOC and Kano analysis •QFD •RACI and quad charts •Operational definitions •Data collection plan •Pareto chart •Histogram •Box plot •Statistical sampling •Measurement system analysis •Control charts •Process cycle efficiency •Process sizing •Process capability •Pareto charts •C&E matrix •Fishbone diagrams •Brainstorming •Details “As-Is” process maps •Basic statistical tools •Constraint identification •Time trap analysis •Non-value-added analysis •Hypothesis testing •Confidence intervals •FMEA •Simple & multiple regression •ANOVA •Queuing theory •Analytical batch sizing •Brainstorming •Benchmarking •TPM •5S •Line balancing •Process flow improvement •Replenishment pull •Sales & operations planning •Setup reduction •Generic pull •Kaizen •Poka-yoke •FMEA •Hypothesis testing •Solution selection matrix •“To-Be” process maps •Piloting and simulation •Control charts •Standard operating procedures (SOPs) •Training plan •Communication plan •Implementation plan •Visual process control •Mistake-proofing •Process control plans •Project commissioning •Project replication •Plan-Do-Check-Act cycle
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  BENEFITS • Increase PROFITABILITY •Increase CUSTOMER SATISFACTION • Increase SPEED OF PROJECT • Increase QUALITY • Increase PRODUCTIVITY • Decrease DEFECTS • Better COMMUNICATION AMONG TEAM GROUP 14 18
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  THANKU GROUP 14 19 Business:[email protected] Careers: [email protected] By – Vasu Garg