6

Overview

SixSigma:-ADefinition-AppliedtoGE-GEQualityInitiative-WhyThisApproach?-OriginofSixSigma-The“BreakthroughStrategy”-ArrivingatSigmaSixSigmaStructureKeyConcepts&ToolsAPracticalExampleAnOverviewNotalotofDetails!!6

Overview

“SixSigma”

Ifwecan’texpresswhatweknowintheformofnumbers,wereallydon’tknowmuchaboutit.Ifwedon’tknowmuchaboutit,wecan’tcontrolit.Ifwecan’tcontrolit,weareatthemercyofchance.MikelJ.HarryPresident&CEOSixSigmaAcademy,Inc.ARigorousMethodforMeasuring&ControllingOurQuality“...willbringGEtoawholenewlevelofqualityinafractionofthe

timeitwouldhavetakentoclimbthelearningcurveonourown.”JohnF.Welch,Jr.1995GEAnnualReport6

Overview

WhatDoes“Sigma”Mean?

SigmaisaMeasureoftheConsistencyofaProcessIt(isAlsothe18thLetterintheGreekAlphabet!WhyDoesGENeedAQualityInitiative?GERaisingTheBarNewGoaltobe“BestintheWorld”vs.#1or#2CustomersareExpectingMore,weMustDeliver“Ship-and-fix”ApproachnoLongerToleratedintheMarketAimtoSpeedPastTraditionalCompetitorsin5YearsGoalConsistentwithReducedTotalCostsWeMustAcknowledgeOurVulnerabilitiesPoorQualityThatImpactsCustomersProblemswithNPITooHighInternalCosts6

Overview

WeNeedaMajorInitiativetoMoveFromWhereweAretoWhereweWanttobe6

Overview

WhyDoesGENeedAQualityInitiative?40%35%30%25%20%10%15%5%CostofFailure(%ofSales)DefectsperMillion3.4233621066,807308,537500,000Sigma654321

EstimatedCostofFailureinUSIndustryis15%ofSales;TakingGEFroma3toa6CompanyWillSave~$10.5BillionperYear!Why“SixSigma”?ProvenSuccessfulin“Quality-Demanding”Industriese.g.,Motorola,TexasInstruments(manyprocessstepsinseries)ProvenMethodtoReduceCostsHighlyQuantitativeMethod–ScienceandLogicInsteadofGutFeelIncludesManufacturing&Service(closetocustomer)andProvidesBridgetoDesignforQualityConceptsHasSupportandCommitmentofTopManagementItWorks!!!6

Overview

Sigma3456SpellingMoneyTime1.5

MisspelledWordsperPageinaBook1

MisspelledWordper30PagesinaBook1

MisspelledWordinasetofEncyclopedias1

MisspelledWordinalloftheBooksinaSmallLibrary$2.7MillionIndebtednessper$1BillioninAssets$570

Indebtednessper$1BillioninAssets$63,000

Indebtednessper$1BillioninAssets$2

Indebtednessper$1BillioninAssets31/2MonthsperCentury21/2DaysperCentury30MinutesperCentury6SecondsperCentury6

isSeveralOrdersofMagnitudeBetterThan3!!!Sigma:AMeasureofQuality6

Overview

WhereDoes“SixSigma”ComeFrom?

MikelJ.HarryoneoftheOriginalArchitectsPreviouslyHeadedQualityFunctionatABBandMotorola

NowPresident/CEOofSixSigmaAcademyinPhoenix,ArizonaHasConsultedforTexasInstruments,AlliedSignal(andothers)CurrentlyRetainedbyGEtoTeachtheImplementation,DeploymentandApplicationofSixSigmaConcepts&Tools

LearningfromThoseWhoHavehadSuccessWith6WillAccelerateitsImplementationatGE6

Overview

So...WhatisSixSigma?

AMeasurementSystem

AProblem-SolvingApproach

ADisciplinedChangeProcess“THESIXSIGMABREAKTHROUGHSTRATEGY”MeasureAnalyzeImproveControl6

Overview

How

DoWeArriveatSigma?Measuring&EliminatingDefectsisthe“Core”ofSixSigmaMeasurementSystemIdentifytheCTQsLookforDefectsinProductsorServices

“CriticaltoQuality”CharacteristicsortheCustomerRequirementsforaProductorService

CountDefectsorfailurestomeetCTQ

requirementsinallprocessstepsDefineDefectOpportunities

AnystepintheprocesswhereaDefectcouldoccurinaCTQ

ArriveatDPMO

UsetheSIGMATABLEConvertDPMOtoSigma

DefectsPerMillionOpportunities23456308,53766,8076,2102333.4PPM

DefectsperMillionofOpportunity

SigmaLevel6

Overview

MeasurementSystem23456308,53766,8076,2102333.4PPM

SIGMALEVEL

DEFECTSperMILLIONOPPORTUNITYIRSTaxAdviceBestCompaniesAirlineSafetyAverageCompanyGEAirlineBaggageDoctor’sPrescriptionRestaurantBills

AverageCompanyin3to4RangeSomeSigma“Benchmarks”6

Overview

MeasurementSystemAGraphic/QuantitativePerspectiveonVariationAverageValueManyDataSetsHaveaNormalorBellShapeNumberofPeopleArrivingatCRDTime7:007:157:307:458:008:158:308:459:009:156

Overview

ProblemSolvingApproachCenterProcessReduceSpreadXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXOff-TargetUnpredictableOn-Target

6HelpsusIdentifyandReduceVARIATIONdueto:-InsufficientProcessCapability-UnstableParts&Materials-InadequateDesignMarginTargetUSLLSLTargetUSLLSLTargetUSLLSLCenterProcessReduceSpreadOff-TargetUnpredictableOn-TargetDefects6

Overview

ProblemSolvingApproach“LowerSpecificationLimit”“UpperSpecificationLimit”LessVariationMeansFewerDefects&HigherProcessYields

6

Overview

ProblemSolvingApproachKeyComponentsof“BREAKTHROUGHSTRATEGY”MeasureAnalyzeImproveControl

IdentifyCTQ&CTP(CriticaltoProcess)VariablesDoProcessMappingDevelopandValidateMeasurementSystems

BenchmarkandBaselineProcessesCalculateYieldandSigmaTargetOpportunitiesandEstablish

ImprovementGoalsUseofParetoChart&FishboneDiagrams

UseDesignofExperimentsIsolatethe“VitalFew”fromthe“TrivialMany”SourcesofVariationTestforImprovementinCenteringUseofBrainstorming

andActionWorkouts

SetupControlMechanismsMonitorProcessVariationMaintain“InControl”ProcessesUseofControlChartsand

ProceduresAMixofConceptsandToolsWillAlsoIntegratewithNPIProcess6

Overview

DisciplinedChangeProcessANewSetofQUALITYMEASURES

CustomerSatisfactionCostofPoorQualitySupplierQualityInternalPerformanceDesignforManufacturability

WillApplytoManufacturing&Non-ManufacturingProcessesandbeTracked&ReportedbyEachBusiness6

Overview

StructureQualityCouncil

Members:Labs&Functions“Pipeline”&BBProjectPrioritiesTraining&CertificationMeasurements&RewardsCommunicationsChampions

Leadership:OverallInitiativeProjectFundingHR:Training&RewardsBlackBelts

Lead6ProjectTeams“Measure/Analyze”“Improve/Control”OutwithBusinessesHereatCRDMasterBlackBelts

Teach6

MentorBlackBeltsMonitorBBProjectsWork“Pipeline”ProjectsAResourcePoolTeamMembers

Learn/Use6ToolsWorkonBBProjectsPartofTheJobOutwithBusinesses6

ProjectswiththeGEBusinesses

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Cause

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Loss1

Loss3Rejects

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Yield

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Yield

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ReduceCommutetoWorkto15Minutes(withoutworkinganabnormalworkschedule)

TheGoalTheVariables

TimeofDeparturefromHome&RouteTakentoWorkTheApproach

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ReduceCommutetoWorkto15Minutes(withoutworkinganabnormalworkschedule)

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FLOURUsin紋ga萍12S聾tep冰Proc糞ess6Ove暫rvi麗ewThe“BETTERBREAD”CompanyStep1Selecting“CriticaltoQuality”(CTQsorY)What廈is步Impo軟rtan蠶tto親the榜Cus劫tome停r?Ris沃eText較ureSmel犯lFres母hnes旨sTast疾eY=T辭ast疼e!!6Ove回rvi伯ewMeas坊ureStep2DefiningPerformanceStandardsforCTQsorY6Over粥viewHow展Coul框dWe獅Mea木sure基Tas投te(柱Y)?Pane博lof陳Tas犯tersRat盒ing螺Sy鵲ste籠mof鄭1t據o1封0Targ表et:孩Aver怎ageRat醉ing川at元8Desi懷red:散NoIndi狂vidu接alR休atin暢gs(“de必fect融s”)郊Belo特w7Y=1肢2兼3共4寸5糞67顏8荷9坐10Tar尖getDef躁ect超sWors菠tBestBut.允杏Ist淋his俊the風Righ圈tSy培stem桌?Meas杯ure6Over毅viewStep3ValidatingtheMeasurementSystemforYHow厲Co徒uld曉We旁Ap消pro沃ach識Th辮is?Blin英dfol螞ded忌Pane哪lRa赴tesSeve茫ral折Loaf鞏Sam罵plesPut兼“R茅epe芳at”幕Pi濕ece拆sfrom腳Sam貓eLo享afi免nDiff禿eren獲tSa懶mple技sCon授sis灣ten宿tR木ati比ngs穗*o韻nPie屋ces綢fr螞om勿Sam兩eLoa奪f=技“R昏epe鐮ata殖bil筆ity卷”Con榜sis抖ten詢tR更ati禁ngs倉*o賓nSamp氧les柏Acro秤sst附hePan發el拆=壺“閘Rep服rod柔uci忙bil暖ity雙”“Rep近eat旅abi膀lit搏y”悼&“R及epr饒odu妹cib法ili纏ty”伏Su孫gge厭st查Val愿id耳Mea藍sur萬eme抹nt澤App聰roa鍋chPane勤lMemb蔽erLoaf殿1Loa帖f2Loa泳f3A589B491C492D898E482F591G892*With濁inOne煤Tast她eUn遼itMeas涂ure6Over扇viewStep4EstablishProductCapabilityforY(Taste)Thi戚si筒sa營3Proc庸ess!7Defe廈cts刃(rat庫ing貢sb嬌elo響w7)24Rati袍ngs豈(from糟our塘pan生el)=.29零2292,減000Def桂ect蹦sp侵er1,o森oo,裙ooo泡Lo習ave懶sOR765432112345678910#ofRatingsRating64321143Defects<7Target=8Ana酸lyz偏eHow臣DoW威eAp叮proa扯chT墊his?Bake絞Sev桐eral寧Loa幅vesUnd應er壘“No滔rma平l”Cond副itio杜nsHav廊eT續ast勵er面Pan皇elAgai虎nDo倉the蓄Rat屯ingAver吩age禽Rati予ngi怠s7.懲4But至Vari餅atio占nistoo炊Grea嫩tfo瞧ra蛇6Pro志ces走s3x10+4x9+6x8+4x7+3x6+2x5+1x4+1x31+1+2+3+4+6+4+36Over病view

Step5DefineImprovementObjectivesforY(Taste)How確do記we聲De虹fin爽eI董mpr啄ove亮men孫t?Ben傾chm矛ark逮th神eComp蟻etit擋ionFocu霉son滅Def帳ects(i開.e.疏ta少ste熊ra煩tin蔬g<覆7)Det涌erm北ine余Wh灶atisa必n“A都ccep視tabl菜eSig冤ma語Lev戚el”Set種Im掛pro志vem厚entObj百ect星ive蒸sAcco負rdin妄glyMayb露ea抱5Proc葬ess影Will偏Suf唇fice告!1,00睬0,00德0-100磚,00齡0鉆-暫.茄.伶..杏.羊..酷.壟..雖.弄..站.鞋..五.曲..測.玩..題.咬..欠.隨..躬.10,0凱00凝-左..搬..撈..全..醒..等..妻..座..喜..腔..隙..線..銷..幕..脹.1,00噸0-扔..縣..惱..夜..妨..豬..玻..金..弱..新..也..蔑..躁..敬..償.100鈔-丈.說..浙.收..雷.坐..贊.梁..音.鬧..賊.型..侮.敗..寧.牽..唐.千..耍.罪.10煎-掉..妻..榜..癥..爛..讓..震..截..斃..染..閑..緣瑞..汽..宜..感.1-2菠3棒4嫂5客6屬7“BET蔽TER證BR包EAD絲式”Bak帳ing躲Pr餐oce掠ssBestComp它etit擔orRan內ge適forImpr秤ovem遍entDefe妹ctsPer笛Mill村ionSigm籍aSc床ale

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Step6IdentifySourcesofVariationinY(Taste)How奇dow列eDe派term書ine映the院Pote險ntia凳lSo變urce位sof糧Var標iati憂on(凝Xs)?Hav腿et落he貼Che餐fs太Bra擋ins侮tor緣瑞mSome讀Lik助ely陽Ones完Mig散htb助e:-A猾moun甩tof余Sal彎tUs帽ed-南Bra芝nd蛇of考Flo拆ur-飽Bak以ing洲Ti吃me-廈Bak認ing蕉Te僅mpe樣rat扭ure-女Bra想nd癥of紡Yea加stYEAST

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FLOUR

FLOUR

FLOURBrandABrandBBrandCImpr作oveResults:350&BrandAisBestCombinationofTemperature&Flour

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BrandAFlourtobeUsedExceptinCaseofEmergency

“BETTERBREAD”toSearchforBetterAlternativeSupplierofFlourJustinCase

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