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business fad tied to a single method or strategy, but rather a flexible system for improved business leadership and performance. ? It is not about theory, it’s about action. 15 Passion + Execution = Fast and Lasting Results Six Sigma Focus ? Delighting the customer through flawless execution ? Rapid breakthrough improvement ? Advanced breakthrough tools that work ? Positive and deep culture change ? Real financial results that impact the bottom line Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defectsperunit, partsper million defective, and the probability of a failure/error (Distribution Shifted 177。 ) 2 308,537 3 66,807 4 6,210 5 233 6 s PPM Process Capability Defects per Million Opp. Six Sigma corresponds to parts per billion if process is centered Six Sigma Goal 3 Sigma 6 Sigma 5 Sigma 4 Sigma % % % % Historical Current Intermediate Longterm Sigma LongTerm Yield Standard Six Sigma Performance Target .... To Produce Improved Rolled Throughput Yield, Defects Per Unit, Defects Per Million Opportunity Reduced Cost of Poor Quality (COPQ) Improved Capacity and Productivity Reduced Variation In Our Processes / Products $$’ s A Problem Solving Methodology ? Characterize ? Optimize ? Breakthrough USL T LSL USL T LSL T USL LSL USL’ LSL’ The Strategy Customer Focused Both Internally Externally Which Business Function Needs It? As long as there is a process that produces an output whether it is a manufactured product, data, an invoice, etc... we can apply the Six Sigma Breakthrough Strategy. For these processes to perform to a customer standard they require correct inputs!!! 6 Sigma Methods MFG.. DESIGN SERVICE ENG MAINT. ADMIN. QA PURCH. Data is derived from objects, situations, or phenomenon in the form of measurements. Data is used to classify, describe, improve, or control objects, situations, or phenomenon. 1. We only use experience, not data. 2. We collect data, but just look at the numbers. 3. We group the data so as to form charts and graphs. 4. We use census data with descriptive statistics. 5. We use sample data with descriptive statistics. 6. We use sample data with inferential statistics. Levels of Analysis: What level are we?? The Foundation of the Six Sigma Tools The Role of Six Sigma R E G I O NBA A B C D E12345 Six sigma is the best means to realize the philosophy, values, and goals associated with your business initiatives. Region BA E xa mp le Bu sin ess Un it In iti at iv esCo st Q ua lit y T imeCh am pi o nsCo mmo n M etr icsBen ch ma r k in gSt r etch G o a lsBr eak th r o u ghBl ack B elt sDi ag no sti c T o o lsE xp er ime nt Des ig nSP CDF MQ ua lit y Po licyQ ua lit y Co u nc il6s Linking Pins Business Area Initiatives It unifies the initiatives and provides a mon language which all people can understand and speak. 23 How Do We Improve Capability )X,...,X,X,X ( f=Y k321? Our Outputs (Y’s) are determined by our Inputs (X’s). If we know enough about our X’s we can accurately predict Y without having to measure it. ? If we don’t know much about our X’s, then we have to resort to inspection and test (non value added operations). ? By knowing and controlling the X’s, we reduce the variability in Y, which decrease the number of defects, improves RTY, cycle time, etc. We can also eliminate or reduce inspection, test, and rework. The Sources of Six Sigma Quality… by controlling... by designing... Continuously Reduce Process Variability Tighter Upper Lower Limits Target values Lower Limits 1. Design best target for performance 2. Design system values to reduce variability of performance ? ? ? Attractive Implicit Waste Expressed Q1. If provided would