Six Sigma Quality Engineering: Week 2 Introduction To Six Sigma Macro Model of Six Sigma Management
Six Sigma Quality Engineering: Week 2 Introduction To Six Sigma Macro Model of Six Sigma Management
Six Sigma Quality Engineering: Week 2 Introduction To Six Sigma Macro Model of Six Sigma Management
Engineering Management
Values of Six Sigma Development & Timeline of Six Sigma Management Benefits of Six Sigma Management Voice Of the Process (VOP) Variation in a Process Voice Of the Customer (VOC) Roles and responsibilities in Six Sigma Management Technical terminology of Six Sigma Management Six Sigma Methodology (DMAIC) Six Sigma Macro Model (Dashboards)\ Six Sigma BB project presentation
Y=
Y Dependent Output Effect Symptom Monitor
n
n n n n n
f (X)
X1 . . . X N Independent Input-Process Cause Problem Control
308,770
3
4 5 6
Process Capability
66,811
6,210 233 3.4
Parts per Million Opportunities
The sigma scale of measure is perfectly correlated to such characteristics as defects-perunit, parts-per million defective, and the probability of a failure/error.
Polaroid
Sony
1990
1992 1993
Are faster, better, cheaper, and more efficient than their competitors
Improve process flows Reduce total defects Reduce process cycle time Enhance Customer and Employee satisfaction Help reduce inventory Help improve capacity and output Help increase quality and reliability Help decrease product costs Help improve product delivery to custumer
A process is a collection of interacting components that transform inputs into outputs toward a common aim.
Inputs
Components Machines Operators
Process
Assembly Test Final Inspection Ship to Customer
Outputs
Customer receives product
Variation in a Process
What is Variation?
The enemy of certainty The enemy of customer satisfaction Drives the unknown Adds to customer (and employee) disbelief Adds to lack of confidence in the ability of processes Increases risk that a result will not meet expectations Variation is a driver of defects
For any process, variation is the main reason for poor performance...
Variation in a Process
Feedback Loops
A feedback loop relates information about outputs from any stage or stages back to another stage or stages to make an analysis of the process.
Inputs
Process
Outputs
Feedback Loop
Good
No Loss
Nominal Value
We must place a value and emphasis on the customer, take measurements and measure inputs, not just outputs
Customer Satisfaction?
Do you have dissatisfied customers? Historically 1 in 25 unsatisfied customers express their dissatisfaction
It cost about five times more to attract a new customer as it does to keep an old one.
Senior Executive
Provides the impetus, direction & alignment necessary for Six Sigma ultimate success. Senior Executive should:
1. 2. 3. 4. Study Six Sigma management Link companys objectives to Six Sigma projects Champion Six Sigma projects Constantly review Six Sigma projects progress
Champion
Take a very active sponsorship and leadership role in conducting and implementing Six Sigma projects. Champions should:
1. Identify the project on the organizational dashboard 2. Provide an ongoing communication link between the project team and Executive committee 3. Keep the team focused on the project by providing direction and guidance 4. Assure that Six Sigma methods and tools are being used in the project
Black Belt
Is a full time change agent and improvement leader. Black Belts should have the following characteristics:
1. 2. 3. 4. Technical and managerial process improvement/innovation skills Understand the psychology of individuals and teams Not intimidated by upper management Has a customer focus
Green Belt
Is an individual who works on projects part time, either as a team member for complex projects or as a project leader for simpler projects. Green Belts have the following responsibilities:
1. 2. 3. 4. Define & review project objective with projects champion Facilitate the team through all phases of the project Analyze data through all phases of the project Train team members in the use of Six Sigma tools and methods through all phases of the project
Process Owner
Is the manager of a process. The process owner should be identified and involved in all Six Sigma projects relating to the process owner area. A process owner has the following responsibilities:
1. Empower employees to follow and improve best practice methods 2. Accept and manage the improved process after completion of the Six Sigma project 3. Understand how the process works, the capability of the process, and the relationship of the process to other processes in the organization
Critical-To-Quality (CTQ): Is a measure of what is important to a customer. Defect: Is a nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction Defects per Million opportunities (DPMO): A quality metric often used in the Six Sigma process. It is calculated by the number of defects observed divided by the number of opportunities for defects compared to 1 million units. Yield: Is the proportion of units within specification divided by the total number of units. Rolled Throughput Yield (RTY): Is the product of the yields from each step in a process.
Status
No
No
No
No
No
STAKEHOLDER
DIAGNOSTIC MEASUREMENT
2005 Actual
Actual/ Plan Cum Actual Cum Plan Actual Plan Actual Plan Actual Plan Actual Plan Cum Actual Cum Plan Cum Actual Cum Plan Actual Plan Cum Actual Cum Plan Cum Actual Cum Plan Actual Plan
JAN
9,080 9,702 6.3% 21.9% 150 139.5 41.9 43.3 47 50
FEB
18,847 19,433 28.4% 19.1% 152.6 137.5 46.8 43.5 57 50 3
MAR
29,546 29,164 22.0% 22.8% 140.9 136.3 48.6 43.5 78 50 501 389 12.2% 14.0% 0.7% 0.7% $1,092 $265 $76 $39 3.5 3.5
APR
40,519 38,846 23.1% 16.9% 146.3 133.5 47.4 44 42 50 1,701 409 13.0% 13.2% 1.2% 0.7% $1,530 $370 $81 $52 3.1 3.5
105792 20.9% DOH DSO DPO 133 45 27 1,517 12.0% -3.3% Material Cost Out ($ 000's) Factory Cost Out ($ 000's) Lean Score $2,320 $1,000 3.5
SHAREHOLDERS
2.3% 14.5% 0.5% 0.7% $280 $105 $26 $13 3.5 3.5
3 11.4% 13.4% 2.0% 0.7% $653 $160 $46 $26 3.5 3.5
EMPLOYEES
COMMUNITY
REASON CODES
REASON CODES
REASON CODES
1 0 0
Actual Goal
REASON CODES
$ 2 .0 0
1 .4 8 7
5 0 0
Actual G oal
$ 1 .5 0 $ 1 .0 0 $ 0 .5 0
1 .3 1 4
Actual Goal
50.0%
Note: Note: All All units units rejected rejected from from supplier, supplier, coded coded as as supplier supplier responsibility, responsibility, affect affect Supplier Supplier DPPM. DPPM. Therefore, Therefore, supplier supplier DPPM DPPM is is the the result result of of Supplier Supplier Failure. Failure.
S u p p lier F ailu re T ech n icalPro b lem
0 .3 8 5
0 .2 4 3
Jan Feb
Jun
Jul Aug
Oct Nov
Apr May
Sep
Mar
2003
Dec
0 .1 7 3 B o e in gD e f.
A ctua l G o a l
Jan
Jun
Feb
Aug
Sep
Mar
Nov
Apr
Jul
2003
May
Dec
Oct
0.0%
ACTION PLANS
ACTION PLANS
20 03 Jan Fe b M ar Ap r M ay Jun Ju l Au g Se p O ct No v De c
S u p p lie r P e rfo rm a n c e
S a le sO rd e r P ro b le m
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
2003
Dec
L a teF a c to ry
T e c h n ic a l P la n n in gP ro b le m P ro b le m
20 03 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c
$ 0 .0 0
ACTION PLANS
M endoz a/ Quality m gr. S teve B rak ebill, S QE K arl Fis c her, S QE M endoz a/ Quality m gr. K arl Fis c her, S QE S QE s
Focus Areas
Focus Area Actions See suplier OTD actions Review and measure exceptions message resolution in each of the focused factories Lebetsamer/ McBroom Access database for planners backlog Support of schedule tool Re-organization of manufacturing and supply chain. Lebetsamer/ McBroom Lebetsamer/ McBroom Harris Owner Due date
Actions
Housings are being inspected and reworked to B/P. Laps are in process at Dow. Additional focus provided by assigning a government spares champion (Reduced from $3.3M down to $1.3M) Developed a backlog-to-customer PO reconciliation process. (Our backlog did not match Gulfstream's PO dates).
Owner
Shaham
Due Date
2/1/2005
S upplier Failure
Rationaliz ing s upplier bas e V 22 s ourc e ins pec tion at Dow M aintain s upplier c orrec tive ac tion s y s tem
Action Ite m s
Ongoing Com plete Ongoing
Is s ue # 1 2 3
Expe cte d Re s ults Reduce errors Work Instructions Focus on key areas
Boeing of Philadelphia
Establish Final Insp C/A Feedback Process Revision & Training f or QCD 191, Final Insp Establish DPPM by Focus Factory
Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .
Owner
M endoz a M endoz a T. M endoz a T. M endoz a/ Q uality m gr. T. M endoz a M endoz a
D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete
US Govt Spares
On-going
Dumlao Healy
Gulfstream
On-going Complete Complete
Ongoing
Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 4 4 Units Units were were determined determined to to be be Eatons Eatons Responsibility Responsibility DPPM DPPM Calc. Calc. = = 21/6685 21/6685 * * 1,000,000 1,000,000 = = 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation
REASON CODES
60.0%
20 0 20 2 0 20 3 04 Ja n Fe b M ar Ap M r a Ju y ne Ju ly Au Se g pt O ct No v D Be C e c nc o m hm p ark
A ctua l G o a l
Actual Goal
Inventory $
DOH
100.0%
4 .00
Actual Goal
Jan Feb
Jun
Apr May
Jul Aug
Sep
Mar
Oct Nov
2003
Dec
No v
20 03 Jan Fe b M ar Ap r M ay Jun Ju l Au g Se p O ct No v De c
10.0%
YTD Monthly Comparative Benchmark
Goal
0.0%
Rec'd Early Supplier Failure Planning Problem
YTD
Monthly
Comparative
Benchmark
Goal
Nov
Dec
ACTION PLANS
Action Ite m s Establish Final Insp C/A Feedback Process Revision & Training f or QCD 191, Final Insp Establish DPPM by Focus Factory Is s ue # 1 2 3 Expe cte d Re s ults Reduce errors Work Instructions Focus on key areas Re s pons ible Team Team QE Ope n Jun-04 Jul-04 Apr-04 Due Date Nov-04 Nov-04 Oct-04 Status Open Open Open
ACTION PLANS
Inv. Type
Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .
Owner
M endoz a M endoz a T. M endoz a
D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete
WIP
Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 4 4 Units Units were were determined determined to to be be Eatons Eatons Responsibility Responsibility DPPM DPPM Calc. Calc. = = 21/6685 21/6685 * * 1,000,000 1,000,000 = = 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation
Action items DexM Kanban, Vendor Managed Inventory, Adding an additional 300 parts to the program Lead-time Reductions Obsolete and Excess disposal Re- alignment of schedule for purchased and manufactured parts for year end. Bring in only what is needed.
Status In progress
A ctio n Ite m s ESP BOS has dev eloped ac tion plan BOS team has prioritiz ed ESP elements
Is s u e #
Exp e cte d Re s u lts ac tions to c omplete ESP Work key is s ues f irs t Conduc t tec hnic al training improv e ergonomic s priortiz e s af ety w ork orders
3400 Lead-times reduced 1.7M with expected additional 250K by year end. 964k moved to 2005 with an additional 200k by year end
Corporate planning to dev elop tec h. Training f or 2005' Inc lude Ergonomic s /repetitiv e motion s tudy Building Saf ety w ork order program
3 00 2 n Ja b Fe ar M r p A ay M Jun l Ju g u A p e S ct O v o N c e D
R e s p o ns ib le
Ja n
Ju n
Ju l Aug
02
03
04
De c Co m p Bm k
Sep
Feb
Apr
ar
20
20
20
O ct
ay
20.0%
Statu s Done Done Corporate plans f or 2005 Corporate plans f or 2005 Starting to trac k Working w ith produc t audit group
RNR
Nov -04
REASON CODES
Jan Feb
Jun
Apr May
Jul Aug
Sep
Mar
Oct Nov
2003
Dec
ACTION PLANS
F o c u s Ar e a s
R ec eived early R ec eived early S upplier F ailure S upplier F ailure P lanning P roblem
Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .
Owner
M endoz a M endoz a T. M endoz a T. M endoz a/ Q uality m gr. T. M endoz a M endoz a
D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete
Questions? Comments?