Slide 1 : Welcome to
SigmaGuru Presentation
We will start
in a few minutes
WELCOME TO A PRESENTATION FROM SigmaGuru TrainersAndConsultants in Quality Improvement : WELCOME TO A PRESENTATION FROM SigmaGuru TrainersAndConsultants in Quality Improvement
Slide 3 : Six Sigma is about making more money
GE made 2 Billion in first 2 years!
: Six Sigma Strategy Implementation
is
A 3 step process
: There is another way of looking at it
You make money year after year
Every year….
Slide 6 : Let us consider example of a real business
Our company is making steel sheets
for various applications.
Thickness specified is
1000 microns
with a tolerance of
+/- 100 microns.
(1 mm +/- 0.1 mm)
Slide 7 : We will look at thickness of each sheet manufactured and sold.
If thickness is equal to target or 1mm, it is ok.
However, Each sheet not measuring 1 mm will result in some loss to the society.
Slide 8 : Higher thickness will mean loss to the company as more material is being given away;
and lower thickness will mean loss to the customer who is getting lower weight
and hence lower life and lower strength of the product.
Now how to determine this loss in $?
Let us take help from Taguchi.
Slide 9 : Taguchi Loss function (TLF) says loss to the society is proportional to
the square of the deviation from target.
We must know loss at some known deviation
to find out loss at each deviation by using TLF.
Slide 10 : We will find this loss conveniently
by assuming that
A - when deviation is equal to the tolerance, customer will not buy the product
And hence
B- Cost / loss to the company will be
equal to
the selling price of the product.
Slide 11 : Let us try to find out
what is the cost to the organization
arising out of all deviations.
We will simplify our calculations
by considering only
one process and one parameter.
(Typically, we can assume, an organization has as many processes as number of people )
Slide 12 : In our case if every sheet is made with
thickness of 0.9
or 1.1 mm,
the loss to the company will be
equal to the turnover of the company.
Using this information we can find the value of “k” in the equation,
which in turn will help us find loss for every sheet.
Slide 13 : Now, Let us consider 2 scenarios
Consider normal working conditions
in most of the organisations.
First
– company process is working at 3 sigmalevel.
Second
company process working at 2 sigmalevel.
(Sigmalevel is nothing but
tolerance divided by average deviation or standard deviation)
Case 1 Company process working at 3 sigma level : Case 1 Company process working at 3 sigma level
Case 2 Company process working at 2 sigma level : Case 2 Company process working at 2 sigma level
Slide 16 : In reality as most of the organizations have
a few processes approaching 3 sigmalevel
but many at or around 2 sigmalevel,
the gain will be between the 2 values,
between 8 and 22% of turnover.
And once you start using Six Sigma / DOE tools
for continuous improvement,
one can achieve gains of
3 to 5 % turnover year after year….
Surely a case for adopting SixSigma
in your company!
: Here is how
one organisation achieved success
International One
SigmaGuru Consultant spent
Only one week, every month at the client site.
: Week / month 1
First group of 20, including CEO trained in basics of six sigma principles and philosophy.
20 projects assigned and started.
By end of day 5,
first project to improve the most critical business process
yielded significant clues for improvement.
: Week / month 2
Second group of 20, including those in top management team who missed the first session, are trained .
20 more projects assigned and started.
First project gave significant results.
40 projects are in the area of manufacturing , maintenance, quality, finance, marketing, accounts, HR, planning, MIS.
Projected benefits of 40 projects
- equal to 7 % turnover
: Week / month 3
Breakthrough a few more projects,
No 2,3 and 4.
Training and project support continues.
: Week / month 4
Success spreads to other similar, parallel projects.
Training and project support continues.
: Week / month 5
Most Projects nearing completion.
Retraining and project support continues.
: Week / month 6
Gains of implemented projects - equal to 3.5 % turnover
All Projects closed.
Out of 40,
3 gave very good results,
12 gave good results,
20 gave moderate results and
balance 5 gave no result / were dropped.
Success celebrated.
All except last 5 project teams were recognised and rewarded.
: Week / month 7
Fresh batch of 20 projects started…..
The journey continues…….
Summary Six sigma quality leads to highest profits. : Summary Six sigma quality leads to highest profits.
Summary Measurement and reduction in variation is the universal method of improvement. : Summary Measurement and reduction in variation is the universal method of improvement.
Summary Key requirements – Vision, Skills, Incentives, Resources And Action Plan. : Summary Key requirements – Vision, Skills, Incentives, Resources And Action Plan.
Summary DOE (design of experiments) is a powerful tool for sigma reduction. : Summary DOE (design of experiments) is a powerful tool for sigma reduction.
Summary Everyone needs to be trained in DOE. : Summary Everyone needs to be trained in DOE.
Summary More training and higher number of projects lead to faster progress : Summary More training and higher number of projects lead to faster progress
Summary Three years can transform a company to the best in class level. : Summary Three years can transform a company to the best in class level.
Slide 32 : Consider an example of
milk packaging / distribution business
Packing 200 ml bags
Slide 33 : Old process –
process sigma was 2 ml
/ 206 ml average packing
After the organisation learnt about
six sigma and
one project undertaken….
Improved process -
process sigma reduced to 1 ml
/ 203 ml average packing
Slide 34 : Old and new processes look like this
Slide 35 : This project gave them
1.5% extra turnover as profit
If a single project can give you
1.5% of turnover,
you can imagine what will happen if you complete a number of projects,
day after day…..
Surely a case for introducing
SixSigmaStrategy in your business!
Slide 36 : SixSigmaStrategy
can do wonders
in your business also!
Vidyut Bapatsigmaguru@gmail.com www.sigmaguru.com : Vidyut Bapatsigmaguru@gmail.com www.sigmaguru.com