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Best Performing Consulting Organization by “Six Sigma (6σ)Adding Value In Totality !!

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Know the history of lean six sigma by Nilesh Arora, a founder of AddValue Consulting Inc. He explained What is six sigma and how six sigma process follows? - PowerPoint PPT Presentation

### Transcript of History of Six Sigma - ADDVALUE - Nilesh Arora

Best Performing Consulting Organization

by

“Six Sigma (6σ)”

Adding Value In Totality !!

History of Six Sigma (6σ)

• In 1986 Bill smith, Seniors Engineer and scientist introduces concept of Six Sigma

• Bill smith Known as “ Father of Six Sigma”

• In 1995, Jack Welch introduced Six Sigma at GE

μ

σ

What’s in a name?

• Sigma is the Greek letter representing the standard deviation of a population of data.

• Sigma is a measureof variation

What is Six Sigma ?

A metric?

Amethodology?

What isSix

Sigma?

Amanagement

system?

Aphilosophy?

What is Lean Six Sigma?

• Goal – Eliminate waste and increase process speed

• Method – Genchi Genbutsu– Go and See the workplace (Gemba)– Kaizen (Change for better) workshops

What is Lean ?

What is Lean Six Sigma ?

• Goal – Reduce variation to improve performance on CTQs (Variation means system does not produce same result each

time)

• Method – DMAIC, DMADV,DFSS approach

6

What is Six Sigma ?

Normal Distribution Curve

µ + - - 1σ + 1σ

- 2σ + 2σ

68.26%

- 3σ + 3σ

+ 4σ

- 5σ

95.44%

99.73%

99.9937%

99.99943%+ 5σ

- 6σ + 6σ99.999998%

- 4σ

LowerSpec

UpperSpec

Sigma % Good % Bad DPMO1 30.9% 69.1% 691,462

2 69.1% 30.9% 308,538

3 93.3% 6.7% 66,807

4 99.38% 0.62% 6,210

5 99.977% 0.023% 233

6 99.9997% 0.00034% 3.4

-6σ -5σ -4σ -3σ -2σ -1σ μ +1σ +2σ +3σ +4σ +5σ +6σ

? times σ

LSL

Mean

USL

Question - How many times of standarddeviation (σ) is specification limit tomean?

Answer – Same as sigma level for theprocess (Z value)

What is Six Sigma performance?

Your process is performing at sigma level of six ifthe difference between mean and specification limitis six times the standard deviation

Is it feasible to eliminate the inspection of Y, if X’s are controlled well?

YDependentOutputEffectSymptomMonitorResponse

•••••••

X1 . . . XNIndependentInputCauseProblemControlFactor

To get results, should we focus our behavior on the Y or X ?

f (X)Y=

Data Driven Approach

How Six Sigma Process Follows?

• Identify customer issues which generally follows timely delay, high cost, defect etc…

• Internalized as performance measures such as e.g. Cycle time, defect rate etc.

• Target performance levels are established and then company seek to perform around this targets with minimal variation

THE DMAIC METHOD

IMPROVE

CONTROL

MEASURE

ANALYZE

5

2

3

4

DEFINE

1

Projects Identification MethodVOC ANALYSIS (Problem identification based on customer’s voice)

VOB ANALYSIS (Problem identification based on Business problems)

COPQ (Problem identification based on cost of poor quality i.e. Process Defects )

Identification of CTQs

List of problems/projects of organization on the basis of Criticality, Out come , Time line

Phase 1: Define

Phase 2: Measure• Goal– Focus the

improvement effort by gathering information on the current situation

• Output– Data that pinpoints

problem location or occurrence

– Baseline data on current process sigma

– A more focused problem statement

Baseline

Data

Sampling

Gage R&R

PatternsCapability

IMPROVE

CONTROL

ANALYZE

5

3

4

DEFINE

1

MEASURE2

DATA COLLECTION• The system to collect information is already established.

• Find the data which supports the defined problem

• Find out the data stream wise/ product wise etc..

Data type:

• Attribute data or Discreet : Value of countable quality characteristics Example - Number of Defects, Number of Defectives.• Continuous data or Variable data : Value of measurable quality

characteristics Examples - Strength (kg/cm2), weight (kg) , length (cm), temperature (° C),

time (sec)

Phase 3: Analyze

IMPROVE

CONTROL

MEASURE

ANALYZE

5

2

3

4

DEFINE

1

Process

Analysis

Multi-Vari

Organize

Causes

Hypothesis

Testing

RegressionDoE

• Goal– Identify deep root

causes and confirm them with data

• Output– A theory that has

been tested and confirmed

Phase 4: Improve• Goal– Develop, pilot, and

implement solutions that address root causes.

• Output– Identification of

planned, tested actions that should eliminate or reduce the impact of the identified root causes

CONTROL

MEASURE

ANALYZE

5

2

3

DEFINE

1

Solutions

FMEA

Pilot

Implemen-

tation

IMPROVE4

Solutions

•Improvement team created with members of Quality, Production, Engineering and R&D areas to propose and evaluate ideas.

•Brainstorming tool was used to gather ideas on how to solve the problems identified.

•Ideas were evaluated per following criteria: feasible, high impact, easy, low cost, and quick.

•Following tables summarizes solutions agreed by consensus of the improvement team.

Phase 5: Control• Goal– Use data to evaluate both the

solutions and the plans– Validate that all changes adhere to all

operating company change control, and compliance requirements

– Maintain the gains by standardizing processes

– Outline next steps for on-going improvement

• Output– Before-and-After analysis– Monitoring system– Completed documentation of results,

learning, and recommendations

IMPROVE

CONTROL

MEASURE

ANALYZE

5

2

3

4

DEFINE

1Control

Standardize

Document

Monitor

Evaluate

Closure

Q.C STORY BOARD

• Q.C Story board is representation of all steps taken from identification to solution and reviewable of taken probable solutions

• Clear problem identification is the most imp part of Q.C Story Board

• Different dept people needs to be involved in a whole process to have fresh ideas

PARETO ANALYSIS

• Known as 80-20 Rule • Used for identification of Major problems• To find out 20% problems which causes 80%

rejection

PARETO ANALYSIS

Code of defect

Percentage

FISHBONE DIAGRAM

5 WHY ANALYSIS

5 WHY ANALYSIS

LIFE COACHING

OperationExcellenc

e

TeamExcellenc

e

e

Counselling

Therapy

Astrology

Adding Value In Totality !!

Best Performing Consulting Organization

AddValue at a glance

Business Coaching Life Coaching

Thank You