QM-029-Six Sigma Overview

QM-029-Six Sigma Overview

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  Six Sigma OverviewLynn Cavanaugh, Black Belt September 2005
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  Sigma as aMeasure Six Sigma is a disciplined, data-driven methodology to eliminate defects in a process A way to assess performance of a process Devised at Motorola in 1987 Higher the process sigma, the fewer the defects Focused on customer requirements Internal, but especially external customers Track Defects (aka CTQs) that affect satisfaction, loyalty, revenue, market share Allows comparison of differing processes Marketing, Accounting, Manufacturing, Finance, Order Fulfillment, etc. in common terms Adjust for complexity of the work, product, service
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  Six Sigma
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  Six Sigma asa Goal Examples of what Six Sigma means in business
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  Deployment Six Sigmais deployed by individuals certified in the methodology including: Green Belt - certified to participate in the process Black Belt - certified to lead Six Sigma projects Master Black Belt - certified to train and certify others
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  Six Sigma MethodsDMAIC Define, Measure, Analyze, Improve, Control Used to improve existing processes DMADV / DFSS Define, Measure, Analyze, Design, Verify Used to develop new processes or implement new technologies May be referred to as DFSS Process Management Reviewing and analyzing an entire work process from end to end
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  Methodology Integration Thematrix below defines how various methodologies align
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  Process Design FlowRecognize Define Measure Analyze Improve Control
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  DMAIC Cycle -Define Select specific problem/opportunity An appropriate DMAIC project Meaningful and Manageable Create a Project Charter Validated by leadership Identifying key contributors Define the process and customer(s)
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  Definition Stage ActivitiesDefine Critical Customer Requirements Develop Team Charter Map “As Is” Business Process Complete SIPOC Develop the Business Case including high level project plan
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  SIPOC A documentthat defines the context, specifics and plans of an improvement or design project Define (and narrow) the project’s focus Clarify the results being sought Confirm value to the business Establish boundaries and resources for the team Communicate goals and plans
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  Example - SIPOCA SIPOC will allow your project team to put parameters around the process being reviewed and identify the areas impacted both up and down stream Suppliers – who feeds the process Inputs – what do they feed Process – steps in the process Outputs – outputs of the process Customer – who pulls from the process
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  DMAIC Cycle -Measure Determine what to measure and why Prepare plans to collect output, process and/or input data Construct forms and test data collection procedures Refine data collection Refine DMAIC Charter
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  Measure Stage ActivitiesIdentify Key Measurements Data Collection Plan Data Collection Execution Document Process Variations Establish Performance Baseline
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  Input – Process– Output Measures A DMAIC team must get Output measure(s) “upfront” to baseline the process/problem Focus on your Goal target or “Project Y” Output measures can be taken before or after the “product” is delivered to the customer E.g., defects caught in-house prior to shipment vs. upon delivery There are usually more “options” for Process measures than Output or Input measures Use your SIPOC diagram and sub-process maps to help select measures and ensure “balance” Consider possible “X” measures early in the project to help get some initial data for the Analyze phase
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  Review Y andX Measures
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  Process Measurement ExampleDelivery Time in Days Critical Customer Requirement = 9.4 days Defects: Service unacceptable to customer Number Orders Filled Variation in results 1 2 3 4 5 6 7 8 9 10 11 12
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  DMAIC Cycle -Analyze Current state analysis Is the current state as good as the process can do? Who will help make the changes? Resource requirements What could cause this change effort to fail? What major obstacles do I face in completing the project?
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  Analysis Stage ActivitiesValidate “As Is” Process Map Complete Root Cause Analysis Fishbone Diagram House of Quality Develop “To Be” Process Map Complete Gap Analysis
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  Process Analysis DisconnectsBottlenecks Redundancies Rework loops Decisions/Inspections Moves Look for points in the process where work may be disrupted or delayed, or where defects may be created.
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  Analyze Current ProcessUse symbols and colors to help you analyze the current state
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  DMAIC Cycle -Improve Create innovative ideas for improvement Narrow, screen and select best solution possibilities Understand best practices for process workflow Develop pilot and define implementation strategies What is the work breakdown structure? What specific activities are necessary to meet the project goals? How will I re-integrate the various subprojects?
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  Improve Stage ActivitiesDefine Solution Include IT when defining technical solutions Develop Work Breakdown Structure Develop Implementation Plan Complete FMEA
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  Generate and SelectSolutions
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  FMEA Failure Modes& Effects Analysis Method to assess and plan for problems which could impact safety, reliability, customer satisfaction, profits, etc. Failure Modes = types of possible error or defect Looks at common or rare events and relative risk Also a tool for process owners to allocate measurement and prevention resources (Control)
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  Example - FMEA
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  DMAIC Cycle -Control How will I control risk, quality, cost, schedule, scope and changes to the plan? What types of progress reports should I create? How will I assure that the business goals of the project were accomplished? How will I keep the gains made?
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  Control Stage ActivitiesComplete Process Standardization Validate Process Map Develop Process Documentation Develop Monitoring Plan Develop Response Plan Complete Transfer of Ownership
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  Control Plan ControlPlan = FMEA + Monitoring + Response From Improve Phase New! Dashboard/Control Chart VOC Systems
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  Summary Six Sigma 3.4 Defects per Million Opportunities DMAIC Define Measure Analyze Improve Control
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  DMAIC Cycle
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  Closing Questions andAnswers Lynn Cavanaugh Vice President Wells Fargo Home Mortgage Cell – (515)988-7779 eMail – lynn.c.cavanaugh@wellsfargo.com