Published on November 7, 2007
Slide1: Six Sigma Slide2: What Is Six Sigma ? A metric — standard deviations in a normal curve A goal — 3.4 defects per million opportunities A rigorous, process focused methodology the DMAIC process A management philosophy Slide3: Where Does Six Sigma Come From? Necessity is the mother of invention Motorola was losing market share to foreign rivals who had better quality and lower cost. A Japanese firm took over a Motorola television factory. After implementing changes, the factory was producing with 1/20th the defect rate. Same people, same equipment, same designs…..different management and different processes. “Our quality stinks.” — Art Sundry, Motorola Slide4: Late 1970s Mikel Harry (the man with two first names), a senior staff engineer, is using statistical analysis for problem solving. He was working in the Government Electronics Group (GEG) Though certainly not the first to apply statistical thinking to manufacturing analysis, he is the one who went on to refine a methodology and then call it “Six Sigma.” He wrote an internal paper called “The Strategic Vision for Accelerating Six Sigma Within Motorola." Who Developed Six Sigma ? Slide5: Bill Smith and throughput yield: Motorola had quality issues even on products that had highly capable processes. Why? Bill Smith (sometimes referred to as the father of Six Sigma) examines the issue. Individual yields are combined into a “rolled throughput yield.” (So a 100-component product with individual yields of 99.9% still only gives a completed product with 90% reliability.) He also developed many of the tools and techniques that became the Six Sigma methodology. Why Six of Those Sigmas ? Slide6: Six Sigma Early Development By the mid-1980s, Bob Galvin, Motorola CEO, has the company focused on improving quality. 1988, Motorola wins the first Malcolm Baldridge Quality Award. Part of winning this national quality award is the agreement to share the methods used to achieve the high levels of quality. Other companies initiate “Six Sigma” programs, notably Larry Bossidy at Allied Signal. Larry tells his friend Jack Welch about it. Jack applies it at GE in a very big, very GE way. Six Sigma’s Methodologies: Six Sigma’s Methodologies Process Management Improve EXISTING processes so that their outputs meet customer requirements Control and manage cross-function processes to meet business goals Design NEW products and processes that meet customer needs Slide8: Project management Voice of the Customer Process mapping Data collection Data graphs Gage R&R Operational definitions Process Capability Assessment Hypothesis testing Regression analysis Designed experiments Statistical process control FMEA Stakeholder analysis Implementation planning Tollgate reviews Common Six Sigma Tools nothing new here . . . The Powerful DMAIC Road Map : Analyze Define Measure The Powerful DMAIC Road Map Define: Define Define: Define Project Charter Voice of the Customer Business Case Initial Process Mapping Measure: Measure Measure: Measure Validate Measurement Systems Display Data Identify the Metrics Data Collection Plan Prioritize the Metrics Identify Process Capability Measure the process Analyze: Analyze Analyze: Analyze . Process Door Regression Analysis Hypothesis-Testing Design of Experiments . Cause & Effect Data Door . Improve: Improve Improve: Perform Cost-Benefit Analysis Generate Solutions Assess Risks Run Pilot Plan Implementation Select the Solution Improve FMEA Control: Control Control: Control Evaluate Project Results . Ownership & Monitoring Process Change Management Key Learnings QC Process Chart Document & Standardize . Closure Process Owner Slide20: A Philosophy ? Identify the process and customers right up front. Time spent identifying root causes and not just symptoms is time well spent. D, M, A, then I !! “Show me the Data !” (valid data please) Great ideas with poor support will fail. Put good people in a bad process and the process will win every time. Y = f (x) Slide21: An Illustrative Project Example PROCESSES TOOLS SKILLS TRAINING Y 1 y 1 VOICE OF... • Market Customer • Employee • • Business FEEDBACK CORE & ENABLING PROCESSES PROCESS MAPS SYSTEMS EXECUTION (PROCESS MANAGEMENT) WORKOUT SIX SIGMA LEAN SIGMA STRATEGY If new product or process Big Y’s Sub Y’s PROCESS DFSS (DMADV) Fundamental Redesign D R I V E S S U P P O R T S Flexible Problem Solving Models Y 1 y 1 VOICE OF... Market Customer Employee Business BUSINESS OBJECTIVES RESULTS: Top-Level Indicators (Dashboards) PROCESS MAPS SYSTEMS PROCESS IMPROVEMENT STRATEGY If new product or process Projects PROCESS DFSS D R I V E S S U P P O R T S PROCESS CONTROL ALIGNMENT The power of the Lean Tools & Principles fully integrated into DMAIC & DFSS The power of the Lean Tools & Principles fully integrated into DMAIC & DFSS Slide22: Problem Statement: In the past 3 years, Calcium in product has averaged at 11.3 mg/50 cal, which is below label claim of 11.5 mg/50 cal. Disposal of product due to low Calcium was $47,000 in 2003 and $15,000 in January 2004. Goal Statement: Calcium in product shall be at label claim upon product release. Disposal of product due to low Calcium shall be zero after improvement to the process is made (by July 2004). Calcium Recovery Improvement Slide23: Measurement System Analysis Acceptable Gage on Project Metric = 27.48 % Number of distinct categories = 5 Method to Validate Measurement System: 1 operator 15 samples 3x repeated Method used: Calcium determination by Inductively Coupled Argon Plasma emission spectrophotometer Results: Gage R&R (ANOVA) for CA (mg/100 c) Slide24: Y = Calcium in mg/50 cal on product Measure: Baseline Performance Mean is 98.5% of Target Slide25: Average = 11.3 mg/50 cal Cpk = 0.49 Target = 11.5 mg/50 cal S.D. = 6.49 Process sigma = 2.8 DPMO = 96,801 ( approximately 10% probability of failure) Measure: Baseline Performance Slide26: Measure The team had a several page detailed process flow map Slide27: Analyze: Prioritization Matrix Initial: 20 potential X’s Prioritize to 7 potential X’s Slide28: Analyze: Potential X’s Y = mg/50 cal Calcium in product X1 = Product pH X2 = Product viscosity X3 = Raw material lot to lot variation X4 = Calcium in finished product tank (=bulk liquid) X5 = Hold time in finished product tank X6 = Agitator speed in finished product tank X7 = Liquid level in finished product tank Slide29: Analyze: Data Analysis Calcium (mg/50 cal) pH of finished product X1 = product pH No correlation between Calcium and product pH Slide30: Analyze: Data Analysis Calcium (mg/50 cal) Product viscosity (cPs) X2 = product viscosity No correlation between Calcium and product viscosity Slide31: X4 = Calcium in finished product tank (bulk liquid) Calcium in product (mg/50 cal) Calcium in bulk liquid (mg/50 cal) Some correlation between Calcium in product and Calcium in bulk liquid Analyze: Data Analysis Slide32: Calcium in product (mg/50 cal) hold time (hrs) X5 = Hold time in finished product tank Some correlation between Calcium in product and hold time in finished product tank Analyze: Data Analysis Slide33: Analyze: Critical X’s Y =f (X4, X5, X6, X7, X8) X4 = Calcium in finished product tank X5 = Hold time in finished product tank X6 = Agitator speed in finished product tank X7 = Liquid level in finished product tank X8 = Agitator on-off Slide34: Calcium in product (mg/50 cal) hold time (hrs) O = B01-15 h + = B53-17 h x = B48-29.5 h X5 = Hold time in finished product tank Analyze: Validate X’s filler starts here filler starts here filler starts here Hold time : Slide35: Improve: Pilot Batch size: 4561 gals Filling time: 5.5 hrs (stopped for 45 mins) Conclusion: continuous agitation helps keep Calcium in suspension in the finished product tank X8 = Agitator on-off filler starts here Results: Slide36: Improve: Risk Analysis Potential Risks: Emulsion stability of the product might be negatively impacted Greater vitamin C degradation Risk Abatement Plan: Submitted Change Management Plan proposal and discussed change on April 21,2004 Analyzed stability samples for emulsion stability and vitamin C degradation at zero and 1 month Slide37: Control & Monitoring Plans Control Plan: Manufacturing Batch Records will be modified to include change in agitation schedule from 30 minutes on-off to continuous Monitoring Plan: Routine QC practice will be utilized (each batch produced is tested for Calcium) Pull out data 3 months from now and review results Slide38: Project Summary Lessons Learned: Validating measurement system using Gage R&R is critical to understanding the source of variation in the data. Drilling down the potential X’s and analyzing the data are keys to finding the right solution Team members participation and involvement are key success factors in any given projects Continuous agitation in tanks 20–23 helps keep Calcium in suspension. Agitation schedule for other products stored in these tanks needs to be re-evaluated Future/on-going projects that require products to be run at small batch size (for example:Batjuice) should avoid using tanks with poor agitation design (tanks 20–23) Additional Project Opportunities: Product B+ Slide39: But Does it Work in IT/Systems ? Do you have processes ? The IT organization at Raytheon Aircraft saved $500,000 from a single project in 2002. The nine CIOs at Textron saved a total of $5 million in six months. One team of engineers at Fidelity Wide Processing expects to deliver $6 million to $8 million in cost reductions this year. — Tracy Mayor The CIO Service Center Slide40: What’s Next ? More Six Sigma Design for Six Sigma Lean Six Sigma Rath & Strong Training & Consulting: Rath & Strong Training & Consulting SIX SIGMA SOLUTIONS Lean Booster Lean Black Belt Lean Green Belt Lean Six Sigma Black Belt Lean Six Sigma Green Belt Six Sigma Black Belt Six Sigma Green Belt Six Sigma Yellow Belt Six Sigma Master Black Belt Design for Six Sigma Champions Training GE WorkOut The “Famous” Courier SimulationSM Team and Influence Skills Leadership/Executive Training Training Tools & Techniques On-line Training Service and Manufacturing Environments Materials in Ten Languages On-line @ www.rathstrong.com E-mail us at [email protected] Slide42: www.RathStrong.com (781) 861-1700 (just tell them Keith sent you) For more information, contact us at: R&S and Breakthrough Results: R&S and Breakthrough Results Our Six Sigma efforts have consistently achieved dramatic results and substantially positive ROI. Clients we have led or are leading Six Sigma efforts for that are comparable to Cardinal Health and/or are from the industry include Pfizer, Merck, Wyeth, Mead Johnson, and Quest Diagnostics. Some examples of our clients’ published, annualized cost savings include, for JP Morgan Case, $600 million; for Quest Diagnostics, $115 million; for TRW $150 million; for Siemens/Westinghouse $225 million; for ABN Amro $75 million. The direct cost savings of an earlier program we led for Johnson & Johnson (as their global provider of Six Sigma, incorporated into their Process Excellence initiative) is summarized nicely by Ralph Larsen (Chairman) in their 2000 annual report: While our Company is highly decentralized and we pride ourselves on giving our managements a great deal of running room, Process Excellence is not optional. It is a process we have made mandatory throughout our entire company. It is nothing less than the application of martial arts training and discipline. It starts with rigorous training in statistical analysis and problem solving techniques, and it includes developing metrics and dashboard measurements for virtually any process in the organization Process Excellence is not simply a cost reduction effort, although it surely does reduce costs. The implementation of Process Excellence has helped us to take almost $5 billion in costs out of the Company over the past five years. To put it another way, that means our annual operating costs today are $5 billion lower and we believe we have just scratched the surface.