Lean Six Sigma Black Belt Tharika Gamage Introduction to lean six sigma Week 01 1.1 A brief history of quality – evolution of quality. 1.2 Evolution of lean and six sigma – Key contributors 1.3 Leadership approach for lean and six sigma implementations 1.4 lean six sigma team formation 1.5 Implementing communication strategies 1.6 Decision making tools for teams 1.7 Performance evaluation and rewards A brief history of quality – evolution of quality. Era Perspective on Quality Before industrial revolution “Guilds” were established. And guilds implemented rigid rules to increase the quality of the product or service Industrial revolution Major improvements in craftsmanship and factory system. This era was recognized by the mass production, division of labor and introduction to work instructions Beginning of 20th century Firms incorporated processes. A process is a set of sequential activities that uses some inputs and production output. During world war II Quality is considered as a vital factor in war. US forces rejected unsafe military equipment. Suppliers improved quality using Statistical Quality Control techniques. After world war II Japanese manufacturers received inputs from experts such as Joseph M. Juran and W. Edwards Deming. And the total quality evolution was started in Japan Emergence of Total Quality Americans built on to Japanese Quality Revolution What is Quality? What is quality ? Meeting or exceeding customer expectation ISO 9000 2000 The degree to which a set of inherent characteristics fulfil the requirement Six Sigma Number of defects per million opportunities Garvin’s five definitions Transcendent definition – excellence Product based definition – quantities of product attributes User based definition – Fitness for intended use Value based definition – Quality vs price Manufacturing based definition – Conformance to specifications Philip B. Crosby Conformance to requirement Joseph M. Juran Fitness for use Genichii Taguchii Uniformity around a target value. The loss a product imposes on society after it is shipped Peter Drucker Quality in a product is not what the supplier puts in. it is what the customer gets out and willing to pay for. TQM – Total Quality Management Total Quality Management (TQM) is a business management approach intended to implement a quality improvement program within a company based on the participation of all members, aiming at long term success through customer satisfaction and benefits to all members of the organization and the society. Principles of TQM 1. Management dedication – TQM needs management dedication and human resources to adopt continuous improvement approach with the intention of improving the organizational performance 2. Employee involvement and empowerment – Requirement of training and education and appreciation 3. Fact based decision making – Effectiveness of decisions depends on analysis of data and information. 4. Continual improvement – Focus on continuous improvement of the organization’s overall performance through improvement of capabilities, people, processes, technology and machine capability 5. Customer focus – understand what customer wants, fulfil customer requirements, and exceed customer expectation 6. Supplier partnership – To have a mutually beneficial partnership with suppliers to improve business capability Modern TQM – Modern Total Quality Management Recognizes importance of following, 1. Customer satisfaction – Define, understand, evaluate and manage customer expectations. Combination of fitness for use and conformance to requirements 2. Prevention over inspection – The cost of preventing mistakes is generally much less than the cost of correcting them 3. Management responsibility – management should lead all members while the TQM success is all members 'responsibility 4. Continuous improvement – PDCA cycle Quality Guru’s and their contribution Philip Bayard Crosby Popularizing the concept of zero defects Need for building processes to do things right first time Dr. Edward Deming PDCA cycle, Statistical Process Control, Deming’s 14 points of management Dr. Armand V. Feigenbaum Total Quality Control and Total Quality Management Dr. kaoru Ishikawa Company wide quality control, Cause and Effect Diagram, Quality Circle Dr. Joseph M. Juran Juran’s Quality triology (Quality Planning, Quality Control, Quality Improvement Walter Andrew Shewhart Statistical Quality Control, Control Chart Dr. Genichi Taguchi Taguchi quality loss function, Design of Experiments – Describe the relationship between input variables and output of the process Shingo Shigeo Poka Yoke Value and Foundations of Six Sigma Six Sigma concept was developed in 1980 at Motorolla as an approach to improve their product quality. Six Sigma can be viewed as a philosophy, technique and a goal. Philosophy : Customer focused, breakthrough improvement in processes Technique: Comprehensive set of statistical tools and methodologies. Goal : Reduce variation, minimize defects, Shorten cycle time, improve yield, enhance customer satisfaction, boost the bottom line Six sigma is six standard deviations from the mean. Six sigma system Effective implementation of six sigma requires following 1. The involvement and the support of the top management 2. Focus on the customer 3. Authentic and reliable data 4. Disciplined and systematic application of methodology 5. Reorientation of work culture Benefits of Six Sigma 1. Continues defect reduction in products and services. 2. Improved customer satisfaction 3. Support to make the right decision at the right time 4. Achieve stability of processes 5. Sustainable competitive advantage What is Leadership responsibility for six sigma implementation ? Leadership responsibility for six sigma implementation 1. 2. 3. 4. Leader must not only be knowledgeable, but also tactical to allocate resources Be aware and maintain team dynamics Maintain communication Inspire approvals What are organizational roadblocks? Organizational roadblocks 1. 2. 3. 4. 5. 6. 7. 8. Structure and culture of the organization External change is challenging Policies of the organization, Stakeholder resistance Market conditions Customer acceptance trends Inadequate resources Improper communication Six sigma key players and roles and responsibilities Key Players Roles and responsibilities Executive leadership Project sponsors and project owners Implement company vision Champions Champions are selected by the executive leadership or senior champions Develop six sigma vision for the organization Create broad training plan Identify how six sigma can be implemented Master Black Belt MBBs are in house experts selected by the champions Work closely with champions Provide trainings to others Assist champions to identify projects with high impact Black belts Assist MBBs with data Identify project barriers Green belts Ake charge in six sigma projects while doing their day today job role Continue using six sigma methodologies Q&A