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1、6 Overview Six Sigma:Six Sigma:-A Definition-A Definition-Applied to GE-Applied to GE-GE Quality Initiative-GE Quality Initiative-Why This Approach?-Why This Approach?-Origin of Six Sigma-Origin of Six Sigma-The“Breakthrough Strategy”-The“Breakthrough Strategy”-Arriving at Sigma-Arriving at Sigma Si
2、x Sigma Structure Six Sigma Structure Key Concepts&Tools Key Concepts&Tools A Practical Example A Practical ExampleAn Overview.Not a lot of Details!An Overview.Not a lot of Details!6 Overview“Six SigmaSix Sigma If we cant express what we know in the form of numbers,If we cant express what we know in
3、 the form of numbers,we really dont know much about it.we really dont know much about it.If we dont know much about it,we cant control it.If we dont know much about it,we cant control it.If we cant control it,we are at the mercy of chance.If we cant control it,we are at the mercy of chance.Mikel J.H
4、arryMikel J.HarryPresident&CEOPresident&CEOSix Sigma Academy,Inc.Six Sigma Academy,Inc.A Rigorous Method for Measuring&Controlling Our QualityA Rigorous Method for Measuring&Controlling Our Quality“.“.will bring GE to a whole new level of quality in a fraction of the will bring GE to a whole new lev
5、el of quality in a fraction of the time it would have taken to climb the learning curve on our own.time it would have taken to climb the learning curve on our own.John F.Welch,Jr.John F.Welch,Jr.1995 GE Annual Report1995 GE Annual Report6 OverviewWhat Does“SigmaWhat Does“Sigma Mean?Mean?Sigma is a M
6、easure of the Consistency of a ProcessSigma is a Measure of the Consistency of a ProcessIt(It(is Also the 18th Letter in the Greek Alphabet!is Also the 18th Letter in the Greek Alphabet!Why Does GE Need A Quality Initiative?Why Does GE Need A Quality Initiative?GE Raising The BarGE Raising The Bar N
7、ew Goal to be“Best in the WorldNew Goal to be“Best in the World vs.#1 or#2 vs.#1 or#2 Customers are Expecting More,we Must DeliverCustomers are Expecting More,we Must Deliver“Ship-and-fix“Ship-and-fix Approach no Longer Tolerated in the Market Approach no Longer Tolerated in the Market Aim to Speed
8、Past Traditional Competitors in 5 YearsAim to Speed Past Traditional Competitors in 5 Years Goal Consistent with Reduced Total CostsGoal Consistent with Reduced Total CostsWe Must Acknowledge Our VulnerabilitiesWe Must Acknowledge Our Vulnerabilities Poor Quality That Impacts CustomersPoor Quality T
9、hat Impacts Customers Problems with NPIProblems with NPI Too High Internal CostsToo High Internal Costs6 OverviewWe Need a Major Initiative to Move FromWe Need a Major Initiative to Move From Where we Are to Where we Want to be Where we Are to Where we Want to be6 OverviewWhy Does GE Need A Quality
10、Initiative?Why Does GE Need A Quality Initiative?40%35%30%25%20%10%15%5%Cost of Failure(%of Sales)Cost of Failure(%of Sales)Defects per MillionDefects per Million3.4233621066,807308,537500,000SigmaSigma6 65 54 43 32 21 1 Estimated Cost of Failure in US Industry is 15%of Sales;Taking Estimated Cost o
11、f Failure in US Industry is 15%of Sales;Taking GE From a 3GE From a 3 to a 6 to a 6 Company Will Save$10.5 Billion per Year!Company Will Save$10.5 Billion per Year!Why“Six SigmaWhy“Six Sigma?Proven Successful in“Quality-DemandingProven Successful in“Quality-Demanding Industries e.g.,Industries e.g.,
12、Motorola,Texas Instruments(many process steps in series)Motorola,Texas Instruments(many process steps in series)Proven Method to Reduce CostsProven Method to Reduce Costs Highly Quantitative Method Science and Logic Instead of Gut FeelHighly Quantitative Method Science and Logic Instead of Gut Feel
13、Includes Manufacturing&Service(close to customer)and Provides Bridge Includes Manufacturing&Service(close to customer)and Provides Bridge to to Design for QualityDesign for Quality Concepts Concepts Has Support and Commitment of Top ManagementHas Support and Commitment of Top ManagementIt Works!It W
14、orks!6 OverviewSigmaSigma3 3 4 4 5 5 6 6 SpellingSpellingMoneyMoneyTimeTime1.51.5 Misspelled WordsMisspelled Wordsper Pageper Page in a Book in a Book1 1 Misspelled WordMisspelled Wordper 30 Pagesper 30 Pages in a Book in a Book1 1 Misspelled Word inMisspelled Word ina a set of Encyclopediasset of E
15、ncyclopedias1 1 Misspelled Word in allMisspelled Word in allof the of the Books in a SmallBooks in a SmallLibraryLibrary$2.7$2.7 MillionMillion Indebtedness Indebtednessper$1 Billion in Assetsper$1 Billion in Assets$570$570 IndebtednessIndebtednessper$1 Billion in Assetsper$1 Billion in Assets$63,00
16、0$63,000 IndebtednessIndebtednessper$1 Billion in Assetsper$1 Billion in Assets$2$2 IndebtednessIndebtednessper$1 Billion in Assetsper$1 Billion in Assets3 1/2 3 1/2 MonthsMonthsper Centuryper Century2 1/2 2 1/2 DaysDaysper Centuryper Century30 30 MinutesMinutesper Centuryper Century6 6 SecondsSecon
17、dsper Centuryper Century6 6 is Several Orders of Magnitude Better Than 3is Several Orders of Magnitude Better Than 3 !Sigma:A Measure of QualitySigma:A Measure of Quality6 OverviewWhere Does“Six SigmaWhere Does“Six Sigma Come From?Come From?Mikel J.Harry one of the Original ArchitectsMikel J.Harry o
18、ne of the Original Architects Previously Headed Quality Function at ABB and Motorola Previously Headed Quality Function at ABB and Motorola Now President/CEO of Six Sigma Academy in Phoenix,Arizona Now President/CEO of Six Sigma Academy in Phoenix,Arizona Has Consulted for Texas Instruments,Allied S
19、ignal(and others)Has Consulted for Texas Instruments,Allied Signal(and others)Currently Retained by GE to Teach the Implementation,Currently Retained by GE to Teach the Implementation,Deployment and Application of Six Sigma Concepts&Tools Deployment and Application of Six Sigma Concepts&Tools Learni
20、ng from Those Who Have had SuccessLearning from Those Who Have had SuccessWith 6With 6Will Accelerate its Implementation at GEWill Accelerate its Implementation at GE6 OverviewSo.So.WhatWhat is Six Sigma?is Six Sigma?A Measurement SystemA Measurement System A Problem-Solving ApproachA Problem-Solvin
21、g Approach A Disciplined Change ProcessA Disciplined Change Process“THE SIX SIGMA BREAKTHROUGH STRATEGYTHE SIX SIGMA BREAKTHROUGH STRATEGYMeasureeasureAnalyzenalyzeImprovemproveControlontrol6 OverviewHowHow Do We Arrive at Sigma?Do We Arrive at Sigma?Measuring&Eliminating Defects is the“CoreMeasurin
22、g&Eliminating Defects is the“Core of Six Sigma of Six SigmaMeasurement SystemMeasurement SystemIdentify the CTQsIdentify the CTQsLook for DefectsLook for Defectsin Products orin Products orServicesServices “Critical to QualityCritical to Quality Characteristics or Characteristics or the Customer the
23、 Customer Requirements for a Requirements for a Product or Service Product or Service Count DefectsCount Defects or failures to or failures to meet CTQ meet CTQ requirements in requirements in all process steps all process steps Define DefectDefine DefectOpportunitiesOpportunities Any step in theAny
24、 step in the process where a process where a Defect could occur Defect could occur in a CTQ in a CTQ Arrive at DPMOArrive at DPMO Use the SIGMAUse the SIGMA TABLE TABLEConvert DPMO toConvert DPMO toSigmaSigma Defects Per MillionDefects Per Million Opportunities Opportunities2 23 34 45 56 6308,537308
25、,537 66,807 66,807 6,210 6,210 233 233 3.4 3.4PPMPPM Defects perDefects per Million of Million of Opportunity Opportunity SigmaSigma Level Level6 OverviewMeasurement SystemMeasurement System2 23 34 45 56 6308,537308,537 66,807 66,807 6,210 6,210 233 233 3.4 3.4PPMPPM SIGMASIGMA LEVEL LEVEL DEFECTS p
26、erDEFECTS per MILLION MILLIONOPPORTUNITYOPPORTUNITY IRS Tax AdviceIRS Tax AdviceBest CompaniesBest CompaniesAirline SafetyAirline SafetyAverage CompanyAverage CompanyGEGEAirline BaggageAirline BaggageDoctors PrescriptionDoctors PrescriptionRestaurant BillsRestaurant Bills Average Company in 3Average
27、 Company in 3 to 4 to 4Range Range Some Sigma“BenchmarksSome Sigma“Benchmarks 6 OverviewMeasurement SystemMeasurement SystemA Graphic/Quantitative Perspective on VariationA Graphic/Quantitative Perspective on VariationAverage ValueAverage ValueMany Data Sets Have a Normal or Bell ShapeMany Data Sets
28、 Have a Normal or Bell ShapeNumber ofNumber ofPeoplePeopleArrivingArrivingat CRDat CRDTimeTime7:007:00 7:15 7:15 7:30 7:30 7:45 7:45 8:00 8:00 8:15 8:15 8:30 8:30 8:45 8:45 9:00 9:00 9:15 9:156 OverviewProblem Solving ApproachProblem Solving ApproachCenterCenterProcessProcessReduceReduceSpreadSpread
29、XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXOff-TargetOff-TargetUnpredictableUnpredictableOn-TargetOn-Target 6 6Helps us Identify and Reduce Helps us Identify and Reduce VARIATIONVARIATION due to:due to:-Insufficient Process Capability -Insufficient Process Capability -Unstable Parts&Materials -Unstab
30、le Parts&Materials -Inadequate Design Margin -Inadequate Design MarginTargetUSLUSLLSLLSLTargetUSLUSLLSLLSLTargetUSLUSLLSLLSLCenterCenterProcessProcessReduceReduceSpreadSpreadOff-TargetOff-TargetUnpredictableUnpredictableOn-TargetOn-TargetDefectsDefects6 OverviewProblem Solving ApproachProblem Solvin
31、g Approach“Lower Specification LimitLower Specification Limit“Upper Specification LimitUpper Specification LimitLess Variation Means Less Variation Means Fewer DefectsFewer Defects&Higher Process YieldsHigher Process Yields 6 OverviewProblem Solving ApproachProblem Solving ApproachKey Components of“
32、BREAKTHROUGH STRATEGYKey Components of“BREAKTHROUGH STRATEGYMeasureeasureAnalyzenalyzeImprovemproveControlontrol Identify CTQ&Identify CTQ&CTP(Critical to CTP(Critical to Process)Variables Process)Variables Do Process Do Process Mapping Mapping Develop and Develop and Validate Measurement Validate M
33、easurement Systems Systems Benchmark andBenchmark and Baseline Processes Baseline Processes Calculate Yield Calculate Yield and Sigma and Sigma Target Opportunities Target Opportunities and Establish and Establish Improvement Goals Improvement Goals Use of Pareto Chart Use of Pareto Chart&Fishbone D
34、iagrams&Fishbone Diagrams Use Design ofUse Design of Experiments Experiments Isolate the Isolate the “Vital Few “Vital Few from the from the “Trivial Many “Trivial Many Sources of Variation Sources of Variation Test for Improvement Test for Improvement in Centering in Centering Use of Brainstorming
35、Use of Brainstorming and Action Workouts and Action Workouts Set up ControlSet up Control Mechanisms Mechanisms Monitor Process Monitor Process Variation Variation Maintain“In Control Maintain“In Control Processes Processes Use of Control Use of Control Charts and Charts and Procedures Procedures A
36、Mix of Concepts and Tools A Mix of Concepts and Tools Will Also Integrate with NPI ProcessWill Also Integrate with NPI Process6 OverviewDisciplined Change ProcessDisciplined Change ProcessA New Set of QUALITY MEASURESA New Set of QUALITY MEASURES Customer SatisfactionCustomer Satisfaction Cost of Po
37、or Quality Cost of Poor Quality Supplier Quality Supplier Quality Internal Performance Internal Performance Design for Manufacturability Design for Manufacturability Will Apply to Manufacturing&Non-Manufacturing Will Apply to Manufacturing&Non-Manufacturing Processes and be Tracked&Reported by Each
38、BusinessProcesses and be Tracked&Reported by Each Business6 OverviewStructureStructureQuality CouncilQuality Council Members:Labs&FunctionsMembers:Labs&Functions “Pipeline”&BB Project Priorities “Pipeline”&BB Project Priorities Training&Certification Training&Certification Measurements&Rewards Measu
39、rements&Rewards Communications CommunicationsChampionsChampions Leadership:Overall Initiative Leadership:Overall Initiative Project Funding Project Funding HR:Training&Rewards HR:Training&RewardsBlack BeltsBlack Belts Lead 6Lead 6 Project Teams Project Teams “Measure/Analyze”“Measure/Analyze”“Improv
40、e/Control”“Improve/Control”Out with Businesses Out with Businesses Here at CRD Here at CRDMaster Black BeltsMaster Black Belts Teach 6Teach 6 Mentor Black Belts Mentor Black Belts Monitor BB Projects Monitor BB Projects Work“Pipeline”Projects Work“Pipeline”Projects A Resource Pool A Resource PoolTea
41、m MembersTeam Members Learn/Use 6Learn/Use 6 Tools Tools Work on BB Projects Work on BB Projects Part of The Job Part of The Job Out with Businesses Out with Businesses 6 6 Projects with the GE BusinessesProjects with the GE Businesses Tabulation of GE Six Sigma ResultsBenefit Target&UpdateCurrent b
42、enefits level 10.865 MMQPID loading:Carryover from 1999:4.059Completed Projects 2000:3.313Active Projects 2000:3.285Total:10.865 MM Key Concepts&Tools6 Overview6 OverviewChanging Focus From Output to ProcessChanging Focus From Output to Process Y Y Dependent Dependent Output Output EffectEffect Symp
43、tom Symptom Monitor Monitor X X1 1.X.XN N Independent Independent Input-Process Input-Process CauseCause Problem Problem Control Control Identifying and Fixing Root Causes Identifying and Fixing Root Causes Will Help us Obtain the Desired OutputWill Help us Obtain the Desired Outputf(X)Y=Process Cap
44、abilityProcess Capability6 OverviewSustained CapabilitySustained Capability of the of the Process Process (long term)(long term)USLUSLT TTime 1Time 1Time 2Time 2Time 3Time 3Time 4Time 4Inherent CapabilityInherent Capability of the of the Process Process (short term)(short term)LSLLSLT TargetargetOve
45、r Time,a“TypicalOver Time,a“Typical Process Will Shift and Drift by Approximately 1.5 Process Will Shift and Drift by Approximately 1.5 6 Overview“Short Term CenteredShort Term Centered versus“Long Term Shifted versus“Long Term ShiftedSix Sigma CenteredSix Sigma CenteredLSLLSLUSLUSLT T Process Proce
46、ss CapabilityCapabilitySHORTSHORT TERM TERM.001.001 ppmppm.001.001 ppmppm+6+6 LONGLONG TERM TERMLSLLSLUSLUSLT T3.4 3.4 ppmppmSix Sigma Shifted 1.5Six Sigma Shifted 1.5 Process Process CapabilityCapabilityHigher Defect Yield in Long Term Process Capability than Short Term Process Capability Higher De
47、fect Yield in Long Term Process Capability than Short Term Process Capability-6-6 4.5 4.5 1.5 1.5 6 OverviewTying it All TogetherTying it All TogethershiftshiftCDAB0.50.51.01.01.51.52.02.02.52.51 2 3 4 5 61 2 3 4 5 6C COON NT TR ROOL LPOORPOORGOODGOODTECHNOLOGYTECHNOLOGYPOORPOORGOODGOODABCD Good Con
48、trol/Good Control/Poor Technology Poor TechnologyPoor Control/PoorPoor Control/PoorTechnologyTechnologyPoor Control/Poor Control/Good TechnologyGood Technology WORLD CLASS!WORLD CLASS!short termshort term Problem Could be Control,Technology or BothProblem Could be Control,Technology or Both6 Overvie
49、wShort Term CapabilityShort Term CapabilityShort Term Capability RatioShort Term Capability Ratio(Cp)Cp=LSL-6 USL ExampleExampleUSLUSLLSLLSL 3.0 3.0 =-3.0-3.0 6 6 3.03.0 -(-3.0(-3.0Cp =Cp =Cp =Cp =1 1LSLLSLUSLUSL2.52.5 0.5 0.5 3.03.0 Process MeanProcess Mean T TTargetTargetA 3A 3 Process Process The
50、 Potential Performance of a Process,if it Were on TargetThe Potential Performance of a Process,if it Were on Target6 OverviewLong Term Capability(Cpk)Long Term Capability(Cpk)CpCpCpkCpk=Long Term Capability RatioLong Term Capability RatioExampleExampleCp =Cp =1 1(previous chart)previous chart)Target