Professional Documents
Culture Documents
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What is Six-Sigma?
Strategic Interpretation
Align an organization keenly to market
place.
It is customer centric initiative.
Deliver real improvements to the bottom
line.
It is business initiative.
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What is Six-Sigma?
Operational Interpretation
Move Product or Service attributes within
the zone of customer specification.
Emphasis is on reduction of defects.
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What is Six-Sigma?
Measurement Interpretation
Six Sigma is a measurement of process
capability.
What can not get measured, can not get
improved.
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It is team-oriented
problem solving
approach.
It is project based
with fixed deadlines.
It relies on numbers
& facts.
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Strategic Plan
Business Goal 1
Project 1
Project 2
Business Goal 2
Project 3
Project 4
Personal Objectives
Personal Scorecard
Sponsoring Projects
1.
2.
3.
Leading Projects
1.
2.
Development Plan
Sponsoring Projects
1.
2.
3.
Leading Projects
1.
2.
Development Plan
1.
1.
Projects
Area
Cost reduction
Cobble reduction
Rolling Mill
Downtime reduction
SMS Furnace
M/c Availability
improvement
SMS Caster
Material consumption
reduction
SMS refractory
Quality improvement
Warehouse
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The Customer
A process is defined as a combination of factors or
activities that lead to the production of some result
(an output), whether that is a product or service.
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Cross-Functional Process
Mapping
Function1
Step
4
Step 5
Step 3
Function 2
Step 2
Function 3
Function 4
Step 1
Step 8
Step 6
End
Step 7
Teams can use this structure for processes that move across functions
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Versions of a Process
What You
Think
it is...
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What it
Really
is..
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What it should
be...
What It
Could
be...
Deming on Process
Eighty-Five
Value Analysis
Value-added work
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Set-up
Control/Inspection
Internal
Failure
Moving
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Recall
Redo
Recheck
Revise
Reject
Return
Reissue
Re-measure
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Redesign
Repeat
Rework
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Retest
Reship
Retype
VA / NVA Ratio
5-10
%
NVA
VA
10-20 %
90 - 80 %
VA
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AVG . Industries
95 - 90 %
BEST Industries
NVA
50 %
50 %
VA
NVA
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1.
2.
3.
4.
5.
6.
7.
Waste of Space
Waste of waiting time
Transportation waste
Re-processing waste
Inventory waste
Waste of motion
Waste from product defect
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100K
10K
(66810 ppm)
10x Improvement
(6210 ppm)
1K
30x Improvement
100
10
1
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(233 ppm)
70x Improvement
20
(3.4 ppm)
Improvement
over previous
sigma level
Cost of
Poor
Quality
( % of
Sales)
S.No.
Level of Process
Control
Defect Per
Million
+/- 1 Sigma
6,90,000
+/- 2 Sigma
3,08,537
2.2 Times
30 - 40 %
+/- 3 Sigma
66,807
4.6 Times
20 - 30 %
+/- 4 Sigma
6,210
10.7 Times
15 - 20 %
5
6
> 40 %
+/- 5 Sigma
233
26.6 Times
Source:
Business Today, Sept. 22- Oct 6, 1999
+/- 6 Sigma
3.4
68.5 Times
10 - 15 %
< 1%
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What is ?
The Greek letter refers to standard
deviation, a measure of the variation of data
about its average.
When we measure a processs sigma value,
we measure the number of units of standard
deviations between the process center and
the closest specification limit.
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X
X
XXX
X X X XX
XXXXXXX X
XXXXXXXXXX
X X XXXXXXXXXX XXX
defects
Target
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Understanding Variability
& Customer Specification
Is The Essence of Six Sigma
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Six Sigma Delta
Customer
Specification
Target
6.6% Defects
2
3
Customer
Specification
Target
After
6 !
1
2
3
4
No Defects!
5
6
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Black Belts
Champions
All staff
Apex
Committee
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Project
Team
Members
Green
Belts
Div. Apex
Committee
Six Sigma Delta
Apex Committee
Six sigma Dept.
Div. Apex
committee:
RM
Functional
GB: RM
GBs: RM
Div. Apex
committee:
Pellet Plant
Functional GB
: Pellet Plant
GBs : Pellet
Plant
Div. Apex
committee: SMS
& Foundry
Functional GB :
SMS & Foundry
Div. Apex
committee: DRI &
Lime plant
Functional GB
: DRI& Lime
plant
Reporting to
MD
Div. Apex
committee: C M &
Heavy Vehicle
Functional GB :
Central
maintenance
Div. Apex
committee:
R&QA &
Admin Block
Functional
GB : R&QA &
Admin Block
GBs : Central
maintenance
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GBs : R&QA
& Admin
Block
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DMAIC
Methodology
Define
Measure
Analyze
Modify
design?
Redesign
yes
no
Improve
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Control
Six Sigma Delta
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Define
Identify processes to be
improved
Define defects, customer
requirements, and
opportunities for
improvement
Establish project objectives, parameters, and
metrics
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Good Example:
In the last 3 months, 12% of our customers are late, by over 45 days in
paying their bills. This represents 20% of our outstanding receivables &
When
Consequence
What
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Magnitude
34
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Measure
Collect data on performance
Map the process
Determine Critical to Quality (CTQ)
characteristics
Validate measurement system and
establish a baseline
Estimate process capability
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Analyze
Identify possible sources
of variation; narrow the
search for key variables
Perform hypothesis
testing and
correlation/regression
Outline areas for improvement; recommend
redesign when necessary
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10
Correlation = 1
Regression Plot
Y = 1.02031 + 0.872922X
R-Sq = 92.0 %
9.4
9.3
9.2
Confidence intervals
Multi-vari analysis
Analysis of variance
(ANOVA)
Correlation/regression
Hypothesis testing
9.1
Ho = Null
Ha = Alternate
9.0
8.9
8.8
8.7
8.6
8.7 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6
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Improve
Determine effect of key
process variables on
undesirable variation
Develop and test
potential solutions to
reduce variation
Implement validated
solutions
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Control
Monitor the improved
process
Implement controls to hold
the gains
Establish and document new
standard operating
procedures
Transfer responsibility to
process owners
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Statistical process
control (SPC)
Process capability
analysis
Control plans
UCL=3.794
Center Line
U =1.930
1
LCL=0.06613
0
0
10
20
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Mistake Proofing
To
beginner
Allows everyone to operate without
mistakes
Prevents errors that are about to
occur
Mistake
Thank You
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