6 Sigma
Presented by :
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Galing Priyatna
Franky Mangihut Tua
Bernadine Niken
Bambang Wijarnako
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Historical Development of Process Improvement
Source : www.isixsigma.com
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Quality Management Development
Quality Planning
Quality Assurance
Quality Control
Sources : www.alison.com
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TQM vs 6 Sigma
TQM
6 Sigma
• Based on worker empowerment
and teams
• Owned by business leader
champion
• Department and Workplace focus
• Cross functional project
• Simple improvement tools
• Rigorous and Advance statistical
tools
• Little financial accountability
• Requires verifiable return on
investment
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What is 6 Sigma ?
• 6 Sigma is Quality management
methodology that uses different theories
and tools to improve upon the process of a
certain business
• Seeks to find and eliminate cause of
defects and errors in manufacturing and
service processes
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What is 6 Sigma ?
• ‘Sigma’ (σ) is a Greek letter used to
represent the statistical term ‘standard
deviation’ which measures the deviations
from average in a particular business
process.
• Focuses on output that are critical to
customers and clear financial return to the
organization.
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What is 6 Sigma ?
• Pioneered by Motorola in the Mid- 1980s
• Popularized by the success of General
Electric
• Aims at producing no more than 3.4 ppm
defects.
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The Sigma Scale
Source : (Craig Gygi et al, 2005 : 3)
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6 Sigma Philosophy
The application of the scientific method to the
design and operation of management systems
and business processes which enable
employees to deliver the greatest value to
customers and owners
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6 Sigma Methodology
D
M
A
I
C
efine
Set the context and objectives for the project
easure
Get the baseline performance and capability of the
process or system being improved
nalyze
Use data and tools to understand the cause-andeffect relationship in process or system
mprove
Develop the modifications that lead to a validated
ontrol
Establish plans and procedures to ensure the
improvements are sustained.
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6 Sigma Breakthrough Strategy
Define
Write the problem statement, the objective
statement, priorities and launch the project
Measure
Understand the process, validate the data accuracy,
and determine process capability.
Analyze
Determine the relationship of Y = ƒ(X) + σ, and
screen for the potential causes
Improve
Determine, validate, and implement solutions to
achieve the objective Statement.
Control
Implement process control methods and monitor
performance to sustain result.
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6 Sigma Role and Responsibility
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6 Sigma Role and Responsibility
Six Sigma Champion
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•
•
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senior or middle level executive
choosing and sponsoring specific projects.
ensures the availability of resources.
knows the business at hand inside and out as well as the Six Sigma
Methodology
Six Sigma Master Black Belt
• has been able to gain experience in managing several project
• has a deep expertise and knowledge base in the tools and methods of Six
Sigma
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6 Sigma Role and Responsibility
Six Sigma Black Belt
• thorough knowledge of Six Sigma philosophies and principles (including
supporting systems and tools).
• exhibits team leadership
• understands team dynamics
• assigns their team members with roles and responsibilities.
Six Sigma Green Belt
• helps an employee
• serve as a trained team member within his or her function-specific area of
the organization.
• work on small, carefully defined Six Sigma projects
• requiring less than a Black Belt's full-time commitment
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6 Sigma Role and Responsibility
Six Sigma Yellow Belt
• integrate Six Sigma methodologies for the improvement of production and
transactional systems to better meet customer expectations and bottomline objectives of their organization.
• has a basic knowledge of Six Sigma
• not lead projects on their own.
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6 Sigma Tools – Technical
The Critical to Quality (CTQ) Tree
The Process Map (SIPOC Diagram)
The Histogram
The Pareto Chart
The Process Summary Worksheet
The Cause-Effect Diagram
The Scatter Diagram
The Affinity Diagram
The Run Chart
The Control Chart
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6 Sigma Tools – Technical
The Stakeholder Analysis Chart
Planning for Influence Chart
The Threat/Opportunity Matrix
The Pay-Off Matrix
The Solution Vision Statement
The Team Meeting Agenda
Ground Rules
The Parking Lot
The Plus Delta Review of Each Team Meeting
Activity Reports
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6 Sigma Success Story
• General Electric profited between $7 to $10 billion from 6 sigma in
about 5 years
• Dupont added $1 billion to its bottom line within two years of initiating
its 6 sigma program , and that number increased to about $2.4 billion
within four years.
• Bank of America saved hundreds of million of dollar within three years
launching of 6 sigma, cut cycle times by more than half, and reduced
the number of processing errors by an order of magnitude.
• Honeywell achieved record operating margins and savings of more than
$2 billion in direct cost
• Motorola, the place where six sigma began, saved $ 2.2 billion in four
year time frame.
(Craig Gygi et al, 2005 : 12)
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6 Sigma Case Study
The Planning of Six Sigma Implementation in PT ”X”
(Mining Contracting Company)
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About the Company
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6 Sigma Deployment Timeline
Source : Thomas Pyzdex & Paul Keller, 2010 : 14
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Project Candidates
Variation in Mining Operation
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Project Candidates
Variation in Mining Operation
Individual Production
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Project Candidates
Variation in Plant Department
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Project Candidates
Variation in Plant Department
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Project Candidates
Variation in Plant Department
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Project Selection Process
Cost and Benefit Analysis
Pareto Priority Index (PPI) (Juran and Gryna)
𝑆𝑎𝑣𝑖𝑛𝑔 𝑥 𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑠𝑢𝑐𝑐𝑒𝑠𝑠
𝐏𝐏𝐈 =
𝐶𝑜𝑠𝑡 𝑥 𝑡𝑖𝑚𝑒 𝑡𝑜 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑖𝑜𝑛 (𝑦𝑒𝑎𝑟𝑠)
Sample of PPI
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6 Sigma Framework
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DEFINE
Define the goals of the improvement activity, and incorporate into a Project Charter.
Obtain sponsorship and assemble team.
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•
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•
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Define project Scope, Objective & Schedule
Define Process (top level) and Stakeholder
Select Team Members
Obtain Authorization from Sponsor
Assemble and Train Team
…Project charter
…VOC tools (surveys, focus groups, letters, comment cards)
…Process map
…QFD
…SIPOC
…Benchmarking
…Project planning and management tools
…Pareto analysis
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MEASURE
Measure the existing system. Establish valid and reliable metrics to help monitor
progress toward the goal(s) defined at the previous step. Establish current process
baseline performance using metric.
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Define Process
Define Metric
Establish Process Baseline
Evaluate Measurement System
Measurement systems analysis
…Process behavior charts (SPC)
…Exploratory data analysis
…Descriptive statistics
…Data mining
…Run charts
…Pareto analysis
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ANALYZE
Analyze the system to identify ways to eliminate the gap between the current
performance of the system or process and the desired goal. Use exploratory and
descriptive data analysis to help you understand the data. Use statistical tools to
guide the analysis.
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Benchmark against best in class
Determine Process Drivers
Analyze Sources of Variation
Analyze Value Stream
…Cause-and-effect diagrams
…Tree diagrams
…Brainstorming
…Process behavior charts (SPC)
…Process maps
…Design of experiments
…Enumerative statistics (hypothesis tests)
…Inferential statistics (Xs and Ys)
…Simulation
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IMPROVE
Improve the system. Be creative in finding new ways to do things better, cheaper, or
faster. Use project management and other planning and management tools to
implement the new approach. Use statistical methods to validate the improvement.
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Evaluate for Risks and Failure Modes
Optimize Process
Define New Process
Priorities Improvement Opportunities
……Force field diagrams
…FMEA
…7M tools
…Project planning and management tools
…Prototype and pilot studies
…Simulations
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CONTROL
Control the new system. Institutionalize the improved system by modifying
compensation and incentive systems, policies, procedures, MRP, budgets, operating
instructions and other management systems. You may wish to utilize
standardization such as ISO 9000 to ensure that documentation is correct. Use
statistical tools to monitor stability of the new systems.
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Evaluate for Risks and Failure Modes
Optimize Process
Define New Process
Priorities Improvement Opportunities
………SPC
…FMEA
…ISO 900 ×
…Change budgets, bid models, cost estimating
models
…Reporting system
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Thank You
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