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1、 Six Sigma FundamentalsChampion Training1Six Sigma Champion Training The Six Sigma Breakthrough Strategy has become a Competitive ToolA little bit of history.Six Sigma was developed by Bill Smith,QM at MotorolaIts implementation began at Motorola in 1987It allowed Motorola to win the first Baldrige
2、Award in 1988Several of the major companies in the world have adopted Six Sigma since then.Texas Instruments,Asea Brown Boveri,AlliedSignal,General Electric,Bombardier,Nokia Mobile Phones,Lockheed Martin,Sony,Polaroid,Dupont,American Express,Ford Motor,.2Six Sigma Champion Training Frequently asked
3、questions.What is Six Sigma and how does it impact the bottom line?Where and how does Six Sigma fit into my business process?What kinds of gains can I expect to see if I adopt Six Sigma?How long does it take to see financial benefits from Six Sigma?What resources are required to implement Six Sigma?
4、What kind of infrastructure is required to support Six Sigma?What are my first few steps to get Six Sigma going?3Six Sigma Champion Training What is Six SigmaVision-Develop and produce products&services to Six Sigma LevelsStrategy-Use a data driven structured process to drive out defects and improve
5、 the Sigma Level of products and services(Breakthrough Strategy)4Six Sigma Champion Training What does doing Six Sigma look like?Project defined in Business TermsCross Functional Team InvolvementMeasure/Analyze/Improve/Control Problem Strategy usedQualitative Tools usedStatistical Tools usedSustaine
6、d Business Results Achieved5Six Sigma Champion Training lKnow what is Important to the Customer and to the BusinesslReduce Defect Levels by:1.Reducing the Variation 2.Centering around the TargetLSLUSLLong TermSix Sigma Improvement Strategy6Six Sigma Champion Training Insufficient Process Capability-
7、Scrap-Rework-Warranty-Excess InventoryUnstable Parts&Materials-Shortages-Defectives-Excess InventoryInadequate Design Specifications-Manufacturing Processes-Supplier Processes-Assembly ProcessesPrinciple Causes of Variation7Six Sigma Champion Training You cannot refine a system unless the Defects ar
8、e removed first The Breakthrough Strategy is the Core of Six SigmaCauses an organization to shift focus to:Eliminate Defects(Cost&Yield)Eliminate Opportunities/Non Value Added StepsReduce ComplexityBreakthrough Thinking8Six Sigma Champion Training LowerSpec LimitUpperSpec LimitNominal TargetDefectsP
9、rocess MeanProcess variation is represented by Origin of Sigma9Six Sigma Champion Training The Classical View of PerformancePractical Meaning of“99%Good”3 Capability Historical Standard Long Term Yield93.32%4 Capability Current Standard Long Term Yield99.38%6 CapabilityLong Term Yield99.99966%New St
10、andard 20,000 lost articles of mail per hour Unsafe drinking water almost 15 minutes each day 5,000 incorrect surgical operations per week 2 short or long landings at major airports each day 200,000 wrong drug prescriptions each year No electricity for almost 7 hours each month10Six Sigma Champion T
11、raining DPMODPMO2308,537 69.1%3 66,807 93.3%4 6,210 99.4%5 233 99.97%6 3.4 99.99966%Defects per Defects per MillionMillionOpportunitiesOpportunitiesProcess Process CapabilityCapabilityRTYRTYRolled Rolled Throughput Yield Throughput Yield(Long Term)(Long Term)Sigma is a statistical unit for measuring
12、 quality.It is correlated to the defect rate and the complexity of the process/productSix Sigma is a Standard of Excellence.It means no more than 3.4 Defects per Million OpportunitiesSigma as a Measure of Quality11Six Sigma Champion Training The long-term distribution is larger than the short-term a
13、s a result of dynamic variations in the process mean over timeNominalShort TermPerformance(st)Long TermPerformance(lt)LSLUSLDynamic MeanLSLUSL(Sustained Capability)Long Term(Sustained Capability)Short TermProcess Centering and Capability12Six Sigma Champion Training 3 Sigma ProcessNo Mean ShiftCp=Pp
14、=1.0 Cpk=Ppk=1.0PPM=2,7503 Sigma ProcessMean Shift of 1.5 SigmaCp=Pp=1.0 Cpk=Ppk=0.5 PPM=66,36513Six Sigma Champion Training Six Sigma ProcessNo Mean ShiftCp=Pp=2.0 Cpk=Ppk=2.0 PPM=0.0Six Sigma ProcessMean Shift of 1.5 SigmaCp=Pp=2.0 Cpk=Ppk=1.5 PPM=4.014Six Sigma Champion Training USLTm mLSL2308,53
15、7366,80746,210523363.4 PPMPPM200004000060000800001000001200001400001600000200004000060000800001000001200001400001600003456,021.510.5SigmaShiftPPM1.5 Sigma ShiftDeeper Insight Into Shifts and Drifts15Six Sigma Champion Training 13Short Term-1.5 Long TermShort Term No ActionNo ActionNo ActionNo Action
16、TOFROM+1.5Long TermSix Sigma Conversion Table16Six Sigma Champion Training 345671,000,000100,00010,0001,0001001012SigmaPPMDomestic Airline FlightFatality Rate-0.43 PPM Restaurant BillsDoctor Prescription WritingPayroll ProcessingOrder TakingWire TransfersAirline Baggage HandlingPurchased MaterialRej
17、ect Rate AverageCompanyWorld-ClassBenchmarking Chart17Six Sigma Champion Training 3 Sigma4 Sigma5 Sigma6 SigmaBARRIER Past success has bred arrogance Dependence on inspection and rework Reliance on trial and error Reward fire fighting behavior Little focus on quality measurements Functional departme
18、nts inhibit cooperationMostCompaniesWhy most Companies are 3-4 Sigma18Six Sigma Champion Training 3 Sigma4 Sigma5 Sigma6 SigmaBARRIER Confidence in the opportunity Belief in the 6 Sigma methodology Ability to challenge the Status Quo Use of new skills,tools and information Use of new management beha
19、viorsMostCompaniesWhat is needed to reach 6 Sigma19Six Sigma Champion Training 3 Sigma4 Sigma5 Sigma6 SigmaBASICTOOLSWALLDESIGNWALLSeven BasicQuality ToolsGreen BeltsStatistical Toolsto ImproveProcessesOperationalBlack BeltsDesign forSix SigmaEngineering Black BeltsOvercoming the Barriers20Six Sigma
20、 Champion Training Higher Quality,On Time Delivery&Lower Cost Increases Customer Satisfaction Reduce the Cycle Time per unit Reduce WIP inventory carrying costs Reduce Delivered Defects Reduce early Failure Rates Reduce Repair Cost per unit We need a Focus on Total Defects Per Unit21Six Sigma Champi
21、on Training=Final Test Yield S=Number of units that passU=Number of units testedIs Final Yield Correlated to Profit Margin?The Classical Perspective of Yield 22Six Sigma Champion Training Is the Final Test Failure Rate Correlated to Profit Margin?Questioning the Basic Belief 23Six Sigma Champion Tra
22、ining Is the Final Test Failure Rate Correlated to Scrap Rate?Questioning the Basic Belief 24Six Sigma Champion Training What Does this Imply?Final Test Yield is Correlated to Process Capability 25Six Sigma Champion Training Verify90 Units PassedFinal Test YFT=90%OperationNot OKReworkScrapDPU=1.0100
23、 Units Start 37Unitsd=063Unitsd 110 Units Scraped53 Units RepairedDefect Type Count A 25 B 15 C 5 D 20 E 35 Total 100YTP=37%Throughput YieldUnits with Zero Defects Process Capability=37%not 90%Unlocking the Hidden Factory26Six Sigma Champion Training The Idea of Rolled Throughput YieldRTY or YRTInpu
24、tStep 1YTP1Step 2YTP2Step 3YTP3Step KYTPKOutputYRT=e-TDPUYRT=P P YTPJKJ=1YRT=Probability of a Unit going through all Process Steps with zero defectsYRT=YTP1 x YTP2 x YTP3 x.YTPKIf TDPU=.25,then YRT=e-0.25=77.9%27Six Sigma Champion Training This process has a 5%scrap rate at Inspection BUT,the Proces
25、s RTY is only 61.6%.Where did theother 38.4%of yield go?Rework,waste,setup,etc.are the HIDDEN FACTORY.AProcess A-Mixing100#in-90#out90%First Pass YieldRTY=90%BProcess B-Making100#in-80#out80%First Pass YieldRTY=90%x 80%=72%CProcess C-Converting100#in-90#out90%First Pass YieldRTY =72%x 90%=64.8%DProc
26、ess D-Inspection100#in-95#out95%First Pass YieldRTY =64.8%x 95%=61.6%RTY Calculation28Six Sigma Champion Training Rolled Throughput Yield is Correlated to Profit Margin29Six Sigma Champion Training Industry average is 20%COPQ&4 Sigma CompanySigma is Correlated to Cost of Poor Quality30Six Sigma Cham
27、pion Training Internal Costs Scrap Rework/Repair Downtime Redesign Excess Inspection Excess InventoryExternal Costs Warranty Retrofits Service Calls Recalls Lost Sales Long Cycle TimesWhat is the Cost of Poor Quality31Six Sigma Champion Training People(Indirect Labor)Rework Inspection Material Handl
28、ing Maintenance Setup Excess Overtime Labor Variance off standard Inventory Raw Material Holding Cost WIP Holding Cost Finished Goods Holding Costs Obsolescence Inventory Shrinkage Maintenance Maintenance Repairs RearrangementDefects Scrap Rework Defects Warranty&Recalls Returned Goods HandlingPremi
29、um Freight Air Freight Expedited Truck FreightComponents of Cost of Poor Quality32Six Sigma Champion Training Six Sigma has shown that the Highest Quality Produceris also the Lowest Cost ProducerCost of Poor Quality(COPQ)CorrelationProcess Control is pre-requisite for error free QualityCOPQ is a res
30、ult of a poorly controlled process Process Control can be measured in PPM/YieldPPM/Yield measurements are correlated toCOPQ 33Six Sigma Champion Training COPQ Sigma PPM30-40%of Sales 2.0 308,537 Non Competitive 20-30%of Sales 3.0 66,807 15-20%of Sales15-20%of Sales 4.0 4.0 6,210 Industry Average 6,2
31、10 Industry Average10-15%of Sales 5.0 23310%of Sales 6.0 3.4 World ClassCost of Poor Quality(COPQ)Relationship Industry Averages34Six Sigma Champion Training COPQ Sigma Yield30-40%of Sales 2.0 5%Non Competitive 20-30%of Sales 3.0 93%15-20%of Sales15-20%of Sales 4.0 99.4%Industry Average 4.0 99.4%Ind
32、ustry Average10-15%of Sales 5.0 99.976%10%of Sales 6.0 99.999655%World ClassCOPQ&Sigma/Yield RelationshipIndustry Averages35Six Sigma Champion Training What are your Business MetricsBusiness Metrics?Do your Business Metrics link to your Customers Metrics?What improvement goals are established for yo
33、ur Business Metrics?PPM-Parts per Million DPU-Defects per Unit RTY-Rolled Throughput Yield Cycle Time Sigma Level COPQ-Cost of Poor Quality Capacity Inventory CostBusiness Metrics36Six Sigma Champion Training Same Questions Same Answers New Behaviors New Values New Questions New MeasuresThe Role of
34、Leadership on Metrics37Six Sigma Champion Training Strategic/BusinessTechnical/ProcessSix Sigma ActivitiesQOSLevel of Metrics38Six Sigma Champion Training StrategicStrategic1.Performance against CTQ standards2.Cost of Poor Quality Performance3.Overall Sigma LevelProcess QualityProcess Quality1.Proce
35、ss/Part Sigma Levels2.PPM,DPU,DPMO,RTY,COPQ Monthly Improvement Rates3.Cycle Time&Inventory LevelSix SigmaSix Sigma 1.Project Savings$s(Total&per BB)2.Number/Status of Projects 3.Number of MBBs,BBs&GBs Certif 4.MBB&BB Turn Over Ratio 5.Final Reports CompletedIdeas for Performance Measures39Six Sigma
36、 Champion Training QUALITY SUMMARY(All Products)PROBLEM IDENTIFICATION/DEFINITIONROOT CAUSES/SOLUTIONSIMPROVEMENT ACTIONSMetric Scoreboard40Six Sigma Champion Training Metric Goals Example-Results Tool41Six Sigma Champion Training Metric Goals Example-Results Tool42Six Sigma Champion Training Six Si
37、gma as a Philosophy-PART I Customer/SupplierWe are in business to make moneyWe make money by satisfying needsWe are able to satisfy needs by using our processesThe aim of customer focus is to improve the need/do interactions of our processesImprovement of our business means improvement of our proces
38、sesCustomers need products/services on-time,with zero defects,at the lowest cost43Six Sigma Champion Training Six Sigma as a Philosophy-PART I Customer/SupplierThe attributes of customer satisfaction must be measured if they are to be improvedTo improve means we must be able to predict and prevent,n
39、ot detect and reactSuppliers create processes to generate needed productsAs process capability improves,the product quality increases As quality increases,costs and cycle-time go down44Six Sigma Champion Training Six Sigma as a Philosophy-PART 2 StatisticsMaximization of certainty is dependent upon
40、the process capability and stabilityProcess capability is best understood and reported using statistics which is dependent on dataData must be collected in the process according to a planStatistics are used to convert raw data into meaningful summary informationStatistical information is used to rep
41、ort on,improve,and control the process45Six Sigma Champion Training Six Sigma as a Philosophy-PART 2 StatisticsThe basis of statistics is the mean and standard deviationThe mean reports on process centeringThe standard deviation reports the extent of variation or scatter about the meanThe sigma of a
42、 process tells us how capable the process isThe stability of a process allows us to make valid predictions46Six Sigma Champion Training Six Sigma as a Philosophy-PART 3 ImprovementThe process sigma can be used to compare similar or dissimilar processesSuch comparison of processes is called benchmark
43、ingBenchmarking is a competitive tool used to uncover what we do well and not so wellOnce basic competencies and deficiencies are known,corrective action can be takenCorrective action leads to the reduction of defects,cycle-time,and cost47Six Sigma Champion Training Six Sigma as a Philosophy-PART 3
44、ImprovementThe reduction of defects,cycle-time,and cost leads to improved customer satisfactionAs customer satisfaction improves,the likelihood of doing business increasesAs business increases,we(as individuals)grow and prosper48Six Sigma Champion Training Highly visible top-down management commitme
45、nt to the initiatives.People must perceive active leadership versus management-ship during the course of implementation.A measurement system(metrics)to track the progress.This weaves accountability into the initiatives and provides a tangible picture of the organizations efforts.Question:How can a b
46、usiness unit,regardless of size,product,service,production volume,or product mix,leapfrog its way to the Six Sigma goal in a relatively short period of time?Answer:Experience has shown that successful implementation depends on an interaction between the following principles:The Implementation Princi
47、ples49Six Sigma Champion Training Internal and external benchmarking of the organizations products,services,and processes.This information inevitably leads to a significant emotional event in that the organization can see and communicate its relative position.When this happens,the organization begin
48、s to gravitate toward a break-through philosophy.Stretch goal setting(10 x,100 x,etc.).Such goals focuses people on changing the process by which the work gets done rather than tweaking the existing process.This leads to leap-frog rates of improvement.Provision of education to all levels of the orga
49、nization.Without the necessary mind-tools,people can not make break-through improvement happen.The Implementation Principles(Cont.)50Six Sigma Champion Training Success stories which demonstrate how the tools of improvement can be applied and the results which can be achieved.Champions,Master Black
50、Belts and Black-Belts to promote the initiatives and provide the necessary planning,teaching,coaching,and consulting at all levels of the organization.The Implementation Principles(Cont.)51Six Sigma Champion Training 6 The Six Sigma Success FactorsVisible Top-Down LeadershipBusiness MetricsCommon Pr