Six Sigma Class Intro and Ppt

INTRODUCTION TO vi SIGMA guinea pig FLOW ? Understanding half dozen Sigma ? description ? World at sextet Sigma examples ? sestet Sigma Scale ? Why cardinal Sigma ? sextette Sigma Methodologies & Tools ? condition ? sum of money ? decompose ? purify ? learn WHATS IN A NAME? Sigma is the Greek letter representing the quantity deviation of a population of data. ? Sigma is a measure of standard deviation (the data spread) ? ? ? SIX SIGMA IS ? A statistical model that measures a mould in foothold of defects at the six sigma take aim, there 3. 4 defects per million opportunities ?A defect is anything that results in client dissatisfaction Six Sigma is a methodological analysis and a symbol of quality ? HOW lots ar WE DELIVERING ON TIME? ? If the backside time is 30 Mins, the graphs below award two curves with modal(a) at 25 Mins 30 mins 30 mins s s 0 10 x 30 2 sigma 20 40 50 0 10 20 x 30 4 sigma 40 50 ? ? How many standard deviations can you flare-up within cust omer expectations? Managing by the bonnie doesnt tell the whole story. The average and the variability together show whats happening. MANAGING UP THE SIGMA SCALE Sigma 1 2 3 4 5 6 % Good % Bad 30. 9% 69. % 93. 3% DPMO 691,462 308,538 66,807 69. 1% 30. 9% 6. 7% 99. 38% 99. 977% 0. 62% 0. 023% 6,210 233 3. 4 99. 9997% 0. 00034% EXAMPLES OF THE SIGMA SCALE In a world at 3 sigma. . . ? In a world at 6 sigma. . . ? in that respect are 964 U. S. relief valve cancellations per day. The police make 7 rancid arrests every 4 minutes. 1 U. S. escape is cancelled every 3 weeks. There are fewer than 4 dour arrests per month. ? ? ? In one hour, 47,283 international commodious distance calls are accidentally disconnected. ? It would progeny more than 2 years to confab the same number of dropped international calls.WHY SIX SIGMA? At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effo rt AlliedSignal reports redeeming(a) $ 1,5 billion through Six Sigma. Six Sigma is about practices that help you eliminate defects and constantly deliver products and services that meet customer specifications How are these savings realized? bell of scrap? hail of rework? comprise of excessive cycle times and delays? Benefits of added efficacy and man-hoursDMAIC THE remediateMENT METHODOLOGY Define physical object DEFINE the opportunity Measure Analyze Improve Control accusatory accusative Objective MEASURE current try the root IMPROVE the performance causes of problems process to eliminate root causes tell Measure Tools Critical to calibre Requirements (CTQs) Sample conception Capability Analysis Failure Modes and rear Analysis (FMEA) recognize Analyze Tools Histograms, Boxplots, MultiVari Charts, and so forth Hypothesis Tests relapse Analysis Objective CONTROL the process to sustain the gains.Key Define Tools equal of scant(p) Quality (COPQ) portion of the Stakeholder (VOS) Project Charter As-Is do work Map(s) direct Metric (Y) Key Improve Key Control Tools Tools Solution endurance Control Charts Matrix calamity To-Be exploit and/or Action Map(s) forge(s) DEFINE DMAIC fox WHAT IS THE PROJECT? $ Project Charter Cost of Poor Quality Stakeholders Voice of the Stakeholde r Six Sigma What is the problem? The problem is the Output ? What is the cost of this problem ? Who are the stake holders / termination makers ?Align resources and expectations ? DEFINE CUSTOMER REQUIREMENTS WHAT ARE THE CTQS? WHAT MOTIVATES CUSTOMER? SECONDARY RESEARCH marketplace Data THE Voice of the guest Key Customer Issue Critical to Quality Listening Posts Industry Intel Industry Benchmarking Customer Service Customer Correspondence patriarchal RESEARCH Survey s OTM Observations concentre Groups MEASURE BASELINES AND CAPABILITY WHAT IS OUR CURRENT aim Sample some data / non all data Current abut actuals measured against the Customer expectation OF transaction?Descriptive Statistics Variable 2003 Output Anderson-Darling normality Test A-Squared P- rate Mean StDev Variance lopsidedness Kurtosis N Minimum 1st Quartile average 3rd Quartile Maximum 0. 211 0. 854 23. 1692 10. 2152 104. 349 0. 238483 0. 240771 100 0. 2156 16. 4134 23. 1475 29. 6100 55. 2907 ? ? ? What is the panorama that we will succeed at this level every time? 0 10 20 30 40 50 95% arrogance legal separation for Mu 95% Confidence breakup for Mu 21. 1423 19. 5 20. 5 21. 5 22. 5 23. 5 24. 5 25. 5 26. 5 25. 1961 95% Confidence Interval for Sigma 8. 690 11. 8667 95% Confidence Interval for Median 95% Confidence Interval for Median 19. 7313 26. 0572 ANALYZE VALIDATED adjudicate CAUSES WHAT ARE THE KEY root word CAUSES? observational Design Data Stratification Regression Analysis subroutine Simulatio n Six Sigma y = f (x1, x2, x3 . . . xn) Critical Xs IMPROVE POTENTIAL SOLUTIONS HOW CAN WE ADDRESS THE ROOT CAUSES IDENTIFIED? ? WE Address the causes, not the symptoms. rejoin Evaluate Clarify Decision y = f (x1, x2, x3 . . . xn) Critical Xs Divergent oblique IMPROVE SOLUTION SELECTIONHOW DO WE require THE BEST SOLUTION? Solution Selection Matrix Qualit y Solution Sigma fourth dimension CBA Other Score Time Cost Six Sigma Solution Right vilify Implementation Good Bad O Nice Idea Nice approximate X Solution Implementatio n Plan CONTROL SUSTAINABLE BENEFITS HOW DO WE put on THE GAINS OF OUR NEW PROCESS? ? ? Some variation is normal and OK How High and let loose can an X go save not materially impact the Y Pre-plan approach for control exceptions Direct Process Customer CCR Date Measuring and observe Loan Service Manager ? Process Owner Process DescriptionProcess Control System (Business Process Framework) flow diagram Customer Sales bear upon sort Manager Key Measure ments P1 activeness duration, min. Specs &/or Targets Measures (Tools) Responsibility Contingency Where & (Who) (Quick Fix) Frequency 35 Remark s UCL=33. 48 reexamine appliation for completeness P2 of incomplete loan applications Individual Value Apply for loan 1. 1 finishing & Review 25 Complete collision information Mean=24. 35 No Application Complete? 1. 2 Processing 1. 3 Credit review 15 0 10 20 30 LCL=15. 21 1. 5 Disclosure 1. 4 Review Observation Number