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Six
Sigma
Six
Sigma is the first improvement initiative that ties levels
of investment to a clear profit return, the language any business
leader can understand. Six Sigma is: -
(1) A system of management to achieve lasting business leadership
and top performance applied to benefit the business and its
customers, employees and shareholders.
(2)
A measure to define the capability of any process.
(3)
A goal for improvement that reaches near-perfection.
The sigma level numbers often associated with Six Sigma represents
the capability of core business process, as measured in defects
per million opportunities:
| Sigma
Level |
Defects
per Million Opportunities |
Yield |
|
6
5
4
3
2
1
|
3.4
233
6,210
66,807
308,537
690,000
|
99.9997%
99.977%
99.379%
93.32%
69.2%
31%
|
The
'per million opportunities' aspect of the Six Sigma metric
is critical because it allows you to compare the capability
of widely different processes. The sigma metric makes sure
that simpler processes, which have fewer steps and fewer chances
for something to go wrong are not given an advantage over
more complex processes.
The system needed to achieve Six Sigma creates a culture characterised
by: -
Customer
Focus - The knowledge of what the customer values is
the start of the value stream analysis.
Financial Results - No project or effort is undertaken
unless there is evidence indicating how much value will
be created.
Management Engagement - The leadership team have
designated roles and responsibilities for overseeing and
guiding Six Sigma projects.
Resource Commitment - A significant number of the
business resources are involved in the Six Sigma effort
to create a sustainable change within the business.
Execution Infrastructure - The hierarchy of specific
roles provides ways to integrate Six Sigma projects into
the 'real work' of the business to sustain the rate of improvements.
Methodology
The DMAIC of Six Sigma:-
Define (D)
This phase defines the goals and value of the projects.
Teams and champions use tools necessary to assess the magnitude
of the value opportunity in a given value stream, the resources
required, and a design of the problem-solving process.
Measure (M)
Assuming that the project is approved by the Champion, the
team proceeds to the measure phase, in which members gather
data on the problem. Here, they primarily use data collection
tools, process mapping, pareto analysis, run charts etc.
Analysis (A)
Here the team examines data and process maps to characterise
the nature and extent of the defect. The tools help them
pinpoint the time traps and define tools in priority order.
Improve (I)
This phase applies a powerful set of tools to eliminate
defects in both quality and process velocity.
Control (C)
When the process has achieved the required quality level,
the tools of the control phase are employed to lock in the
benefits. Some of these tools include error proofing and
control charting.
We are creating a responsive and flexible business to cater
to varying customer demands and expectations, that we can
consider repeatable and sustainable. It is something that
must be easily understood by everyone involved in adding
value throughout the value stream.
Application Results
Safety
Restraints
Revenue Collection
Aerospace
Electronics Assembly
Financial Services
Chemical |
0
ppm from 60,000 ppm over 2 years
Reduction in errors frees up 10% working capital
Reduced turnaround time by 60%
Reduced process scrap by 90%
Reduced transaction throughput time by 50%
Improvement in yield by 30%
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Roles within Six Sigma
Sponsors
The Sponsor is essential components of a Six Sigma structure
as they provide the steering with the Champion, Masters, Black
Belts and Green Belts. They must decide that adoption of these
new methods is of strategic importance to the company. They
receive training over a 1 to 2 day. The Sponsor must also
perform a role in infrastructure processes by: -
·
Consistently communicating the strategic priorities
to direct reports.
· Following up communication with action by
constantly reinforcing the importance of Six Sigma
efforts to both direct reports.
· Monitoring the rolled-up results versus plan
and taking corrective actions. |
Champions
The Champions are the glue that holds the Six Sigma together
by building critical bridges between business-unit strategies
and Black Belt projects. They receive training over a 1 to
2 day. The role of the Champion would include: -
·
Develop deployment plans for the business.
· Oversee the deployment in their business.
· Identify and remove barriers to improvement
implementation.
· Provide ongoing communication throughout
the business.
· Ensure there is engagement within the business
to Six Sigma, not compliance.
· Work with the financial organisation to verify
bottom line impact of each improvement projects.
· Provide integration across business units. |
Master
Black Belts
The Master Black Belt act as internal consultants to Black
Belts and their teams. As such, the Master Black Belts must
be experienced in successfully managing improvement teams
to reach goals using improvement tools and skilled leadership.
They are expected to complete 2 waves of Black Belt training
and project mentoring.
Black Belts (Team Leaders)
The Black Belts are full-time positions responsible for leading
project teams. They are responsible for delivering value and
benefits that were determined for each of their projects during
the project selection process. They receive training ov00er
a 20 day period (typically 5 days per month over a 4 month
duration). The role of the Black Belt would include: -
·
Working with Sponsor and Champions to formulate and
implement Six Sigma improvement projects.
· Complete 2 Six Sigma projects per year which
have strategic importance to the business.
· Train Green Belts in the Six Sigma, tools
and techniques. |
Green
Belt (Team Members)
The Green Belts are part-time, on a specific process about
which he or she generally possesses knowledge important to
the success of the project. They receive training over a 6
day. The role of the Green Belt would include: -
·
Working with Black Belts on improvement projects.
· Green Belts focus on projects, which provide
stability and standardisation within the business.
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