Six Sigma Today’s Worlda Business View : http://www.sixsigmadoctor.com 1 Six Sigma Today’s Worlda Business View We need to allow all participants an opportunity to sign in.
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Today’s World : All rights reserved. The materials contained in this publication shall not be copied by any means including but not limited to photo reproduction, electromagnetic, or optical transcription nor stored in a retrieval system of any kind without the express written consent of
Charles E. Wilson, Ph.D.
Six Sigma Doctor
407 Southern Oaks Drive, Lake Jackson, TX 77566
Charleswilson@sixsigmadoctor.com (979) 265-8745 Six Sigma Today’s World A Business View
Objectives of Presentation : http://www.sixsigmadoctor.com 3 Objectives of Presentation Explain Six Sigma Fundamentals
Describe how Six Sigma Fits today’s Business World
Identify DMAIC
Discussion regarding Key Ingredients for Six Sigma Success, Implementation Strategies, Lessons Learned Focus on Constancy of Purpose
with a Resolve for Excellence.
Tomorrow’s Jobs : http://www.sixsigmadoctor.com 4 Tomorrow’s Jobs Population trends effect employment in several ways;
Changes influence demands for goods and services
Population changes produce corresponding changes in size and demographic composition of labor force.
Tomorrow’s Labor Force : http://www.sixsigmadoctor.com 5 Tomorrow’s Labor Force 16 million people born between 1946 and 1964 – in just three years the oldest of these baby boomers will turn age 62!
With an ever shrinking workforce, a changing population, advancing technology and multi-media – the growing fear is lost jobs to a single global work force.
Cheaper Labor – What Price? : http://www.sixsigmadoctor.com 6 Cheaper Labor – What Price? Some businesses have begun the parade of “outsourcing” American jobs to countries with cheaper labor.
It is happening in many industries – sometimes with devastating results.
Note “Cheaper” is not always “Smarter”.
We in business and in the labor force – must continually learn and adapt to remain competitive and profitable.
Performance Dictates Success : http://www.sixsigmadoctor.com 7 Performance Dictates Success Companies are assessing and tracking performance more than they did just a few years ago.
Back then -- it seemed assessment was based on how well you delivered your key job responsibilities and related performances. Today it is all about generating ”Ideas” and
collaborating to “Solving Problems”.
What Does it All Mean? : http://www.sixsigmadoctor.com 8 What Does it All Mean? Sophisticated training and intellectual capital (brain power) is beginning to push out inequities in business competition, for workers seeking jobs, for pay and compensation, for women and minorities in the workforce.
This should not be seen as a bleak – death kneel -- for companies or workers.
A Business Model : http://www.sixsigmadoctor.com 9 A Business Model Is all about what a company is trying to do and includes;
The What: financial goals, market goals, and structural goals.
The How: strategies and plans for achieving and sustaining profitability, operational guidelines for creating customer value, and administrative processes for managing costs.
Driving Operational Focus : http://www.sixsigmadoctor.com 10 Driving Operational Focus Questions answered to drive your operational focus of your business. Typical Strategies & Plans make lots of decisions that may include;
Target Markets (where)
Products, Services, or Transactions Enhancements
What Prices or Discounts
Inventory Management Policies
Presale or post sales needed to maintain Customer Satisfactions
Slide 11 : http://www.sixsigmadoctor.com 11 World Class Performance People Strategy The objective of Six Sigma is to achieve World Class Performance a key element of which is Customer Loyalty. Systems
Slide 12 : http://www.sixsigmadoctor.com 12 Breakthrough Performance Improvement must include more than our organizations Strategic Plans, Visions, Processes, Systems, Peoples Behaviors, and Customer Critical Criteria focuses.
Breakthrough performance improvement processes must also embrace Sciences, Measurements and Statistics (simple or complex).
If not, we are bound by our gut feelings and educated guesses -- which lead to marginal improvements -- if at all.
Variation : http://www.sixsigmadoctor.com 13 Variation Inconsistency in a business process is “variation”. Bad variation – something having a negative impact on your customers -- is called a “Defect”.
Formula Y = f (X)
(Y is the function of X) is a mathematical way of saying that changes or variables in the “inputs and process” of the system will determine how the final score (the Y or output) will turn out.
Six Sigma Methodology : http://www.sixsigmadoctor.com 14 Six Sigma Methodology Strives to make the total effect of an off – centered process and process variation small as compared to your customers critical criteria (tolerances).
What is Six Sigma? : http://www.sixsigmadoctor.com 15 What is Six Sigma? 3 sd 6 sd -3 sd - 6 sd 99.73% of data Spec Spec 1.5 sd 1.5 sd The process cannot shift both directions at one time.
A conservative statement is that six sigma creates
3.4 PPM defects or less.
5 W’s & H of Six Sigma : http://www.sixsigmadoctor.com 16 Why Business Strategy, World Class Performance
Where Customer Critical Criteria, Strategic Plan
What On Target with Minimum Variation
How DMAIC, People, Processes, Tools
Who Executive Management, Black/Green Belt
Project Managers, Green Belt Team Members,
all employees
When Usually 2 - 4 months per project 5 W’s & H of Six Sigma
Slide 17 : http://www.sixsigmadoctor.com 17 Processes Inputs are transformed by way of processes into outputs – results.
Processes are the way your business is done. To change outcomes -- results – you must change the way business is done.
Analyze in a specific manner, the inputs, the process and variation. Implement the best combination of practices to achieve the desired results.
Slide 18 : http://www.sixsigmadoctor.com 18 Y = f (x) Relates to your Process SIPOC Process
Value Chain Core Business : http://www.sixsigmadoctor.com 19 Value Chain Core Business Value Chain means a collection of activities performed to design, market, support and deliver your products and services to your customers.
Identify Core Processes & Key Customers
Define Customers Critical Criteria
High Level Map Processes End to End
Measure Current Performances
Prioritize, Analyze, Improvements
Execute Six Sigma Projects by DMAIC
Slide 20 : http://www.sixsigmadoctor.com 20 Value Chain Mapping Business
Process High Level Process Customer Detailed Process
Strategy & Project Selections : http://www.sixsigmadoctor.com 21 Recognized
as Best
Provider Strategy & Project Selections Vision Long Term Short Term Measures Target
Average & Variation : http://www.sixsigmadoctor.com 22 Average & Variation Nothing is Produced Perfectly
Products vary from target tolerance in (2) ways Average deviates from target due to the process
being off center. A spread of measurements around the average of the target due to process variation.
Slide 23 : http://www.sixsigmadoctor.com 23 Yield (Output vs. Input) Yield = Output/Input = 360/365 = 0.9863
0.9863 x 100 = 98.6%
Slide 24 : http://www.sixsigmadoctor.com 24 First Time Yield (FTY) Yield = Output/Input =
260/365 = 0.7123
0.7123 x 100 = 71.2%
Slide 25 : http://www.sixsigmadoctor.com 25 Sequences of ProcessesRolled Throughput Yield RTY = 0.77 x 0.97 x 0.84 x 0.95 x 0.93
RTY = 0.554 x 100 = 55.4%
Chances of the paperwork going through this process the first time without rework or scrap is only 55.4% -- a lot of hidden factory to be found here!
Slide 26 : http://www.sixsigmadoctor.com 26 Variation Everywhere Variation is everywhere and it does diminish our ability to consistently and reliably produce quality results, meet schedules, and remain within budget.
Variation is why we experience performance problems, and it is why we need to define those problems for improvement.
Slide 27 : http://www.sixsigmadoctor.com 27 Distribution Distribution is the statistical term used to describe the relative likelihood of observing values for a variable factor.
3 Sigma Process : http://www.sixsigmadoctor.com 28 3 Sigma Process 933,200 Good outputs out of every 1,000,000 produced.
That leaves 66,800 defective outputs out of every 1,000,000 produced.
Defects are costly, cause scrap, rework, returns, and loss of customers.
Elimination of this defective or lost output has the potential to be very profitable.
99% Enough? : http://www.sixsigmadoctor.com 29 99% Enough? Examples of 3 Sigma performance
20,000 lost pieces of mail every hour.
5,000 incorrect surgery operation every week.
15 minutes of unsafe drinking water every day.
2 long or short landings at most major airports each day.
200,000 incorrect drug prescriptions each year.
No electricity for almost 7 hrs each month. Source: Motorola
Converting Defects : http://www.sixsigmadoctor.com 30 Converting Defects Simplified Sigma Conversion Table
Slide 31 : http://www.sixsigmadoctor.com 31 3 Sigma Shift Average 1.5 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
A Six Sigma Process : http://www.sixsigmadoctor.com 32 A Six Sigma Process Operates with a variation such that plus or minus six sigma (including some drift) fit within the tolerance limits. It generates 3.4 defects per million outputs produced. By shifting a 6 sigma
Process 1.5, we
Create 3.4 DPMO
Process Breakthrough : http://www.sixsigmadoctor.com 33 Process Breakthrough 6 Sigma 690,000
DPMO 0 defects 3 Sigma 66,800
DPMO 1 Sigma 3.4
DPMO
DMAIC Flowchart : http://www.sixsigmadoctor.com 34 DMAIC Flowchart
Strategic Business Process : http://www.sixsigmadoctor.com 35 Strategic Business Process Delighted
Customer
Slide 36 : http://www.sixsigmadoctor.com 36 About the Facilitator
Charles E. Wilson, Ph. D. is President/CEO of Lakota Training
& Development. As well he owns and operates LTD Publishing
and Six Sigma Doctor. Wilson is the author of several books,
Including "Six Sigma Deployment". He serves on TreQna
Board of Directors, the Board of Directors for Brazoria County
Dream Center, and has responsibility for knowledge
development for TreQna University.
Dr. Wilson holds multiple degrees in Psychology. He is a
motivational speaker, training facilitator, training developer,
management coach, business improvement consultant, and
author. Charlie has 36 years of experience in the business and
coaching worlds.
Please visit http://treqnauniversity.org
http://treqnauniversity.org to learn more about
effective and unique “blended learning” and “be Able to
do” skills approaches for Six Sigma training.