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1SixSigmaByDanielWuFordLioHoMotorCompany
2OutlineQualitylevelWhatisSixsigma?WhyweneedSixsigma?DevelopmentandDeploymentstrategyHowSixsigmamergesintoourdailybusiness?
3Overview-FourQualityGurusHistoricallycompanieshavefocusedonqualityissuesforcustomersatisfactionPriortosixsigmatherewerefourkeyqualitygurusthatmostcompanies’qualityprogramsfollowedDemingJuranCrosbyTaguchi
4DemingDemingtaught:ImportanceofunderstandingvariationinworkprocessesRoleofmanagementinleadingforqualityApplicationofstatisticsPlan-Do-Check-Act
5Deming’sContributiontoProfitabilityEXTERNALINTERNALCUSTOMERSATISFACTIONMARKETSHAREPROFITPRODUCTIVITYQUALITY-Betterproducts&services-Improvedprocesses-CompetewithvaluePRICE-CompetewithPrice-Decreasedcycletime-Eliminateset-uptimesCOST-OpportunityforprofitPRODUCTQUALITYPROCESSQUALITY-Reducerework-Eliminatein-processinspection-Reducescrap-Increaseproductlife-EliminateincomingtestingPlanDoCheckAct
6JuranJurantaught:BreakthroughperformanceParetoeffectImportanceofmanagementprinciplesQualitybydesignandplanning
7Juran’sContributionPlanningCostofPoorQuality(Percentofoperatingcosts)ProductionBeginsOriginalzoneofprocesscontrolNewzoneofprocesscontrol020400ControlTimeImprovementLessonsLearnedSporadicspikefromobservedproblemChronicWaste(anopportunityforimprovement)ControlSpecialcausevariationCommoncausevariation
8CrosbyCrosbytaught:CustomerrequirementisperformancestandardQualitymaturityisajourneyPreventiveactionasbasicapproach
9TaguchiTaguchitaught:CostofpoorqualityislosstosocietyasawholeRobustqualityisdesignedforconsistentproductionDesigncontrolismoreimportantthanproductioncontrol
10Taguchi’sContributionLowerSpecificationLimitUpperSpecificationLimitNominalValueRegionofCustomerComplaintsRegionofCustomerComplaintsRegionofQuestionablePerformanceRegionofQuestionablePerformanceRegionofSpecifiedPerformanceMeanLowerControlLimitUpperControlLimitRegionofDesiredPerformanceCost
11WhatAretheLimitstoImprovement?2Sigma3Sigma4Sigma5Sigma6SigmaBasicQualityToolsStatisticalToolsDesignforSixSigma(DFSS)BasicToolsWallDesignWallCleanSheet
12ChallengeinthemillenniumQuestionconfrontingbusinessleadersandmanagers:Itisnot:“Howdowesucceed?”It’s:“Howdowestaysuccessfully?”
13Change“Itisnotthestrongestthatsurvive,northefittest,butthosemostabletoadapttochange.”CharlesDarwinTheOriginofSpecies“Peopledonotresistchange,peopleresistbeingchanged.”Beckhard
14ChallengeResistance-theuniversalreactiontochange.TechnicalresistancePoliticalresistanceOrganizationalresistanceIndividualresistance
15SixSigma?SixSigmaisnotabusinessfadtiedtoasinglemethodorstrategy,butratheraflexiblesystemforimprovedbusinessleadershipandperformance.Itisnotabouttheory,it’saboutaction.
Passion+Execution=FastandLastingResultsSixSigmaFocusDelightingthecustomerthroughflawlessexecutionRapidbreakthroughimprovementAdvancedbreakthroughtoolsthatworkPositiveanddeepculturechangeRealfinancialresultsthatimpactthebottomline
Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error(DistributionShifted±1.5s)2308,537366,80746,210523363.4sPPMProcessCapabilityDefectsperMillionOpp.SixSigmacorrespondstopartsperbillionifprocessiscenteredSixSigma-Goal
3Sigma6Sigma5Sigma4Sigma93.32%99.379%99.9767%99.99966%HistoricalCurrentIntermediateLong-termSigmaLong-TermYieldStandardSixSigma-PerformanceTarget
....ToProduceImprovedRolledThroughputYield,DefectsPerUnit,&DefectsPerMillionOpportunityReducedCostofPoorQuality(COPQ)ImprovedCapacityandProductivityReducedVariationInOurProcesses/Products$$’sAProblemSolvingMethodology
CharacterizeOptimizeBreakthroughUSLTLSLUSLTLSLTUSLLSLUSL’LSL’TheStrategyCustomerFocused-BothInternally&Externally
WhichBusinessFunctionNeedsIt?Aslongasthereisaprocessthatproducesanoutputwhetheritisamanufacturedproduct,data,aninvoice,etc...wecanapplytheSixSigmaBreakthroughStrategy.Fortheseprocessestoperformtoacustomerstandardtheyrequirecorrectinputs!!!6SigmaMethodsMFG..DESIGNSERVICEENGMAINT.ADMIN.QAPURCH.
Dataisderivedfromobjects,situations,orphenomenonintheformofmeasurements.Dataisusedtoclassify,describe,improve,orcontrolobjects,situations,orphenomenon.1.Weonlyuseexperience,notdata.2.Wecollectdata,butjustlookatthenumbers.3.Wegroupthedatasoastoformchartsandgraphs.4.Weusecensusdatawithdescriptivestatistics.5.Weusesampledatawithdescriptivestatistics.6.Weusesampledatawithinferentialstatistics.LevelsofAnalysis:Whatlevelarewe??TheFoundationoftheSixSigmaTools
23TheRoleofSixSigmaSixsigmaisthebestmeanstorealizethephilosophy,values,andgoalsassociatedwithyourbusinessinitiatives.RegionBA6LinkingPinsBusinessAreaInitiativesItunifiestheinitiativesandprovidesacommonlanguagewhichallpeoplecanunderstandandspeak.
HowDoWeImproveCapabilityOurOutputs(Y’s)aredeterminedbyourInputs(X’s).IfweknowenoughaboutourX’swecanaccuratelypredictYwithouthavingtomeasureit.Ifwedon’tknowmuchaboutourX’s,thenwehavetoresorttoinspectionandtest(nonvalueaddedoperations).ByknowingandcontrollingtheX’s,wereducethevariabilityinY,whichdecreasethenumberofdefects,improvesRTY,cycletime,etc.Wecanalsoeliminateorreduceinspection,test,andrework.
25TheSourcesofSixSigmaQuality…bycontrolling...bydesigning...ContinuouslyReduceProcessVariabilityTighterUpper&LowerLimitsTargetvaluesLowerLimits1.Designbesttargetforperformance2.Designsystemvaluestoreducevariabilityofperformance•----------------------•----------------------•----------------------AttractiveImplicitWasteExpressedQ1.Ifprovidedwouldyoube......indifferent?...happy?Q2.Ifnotprovided......indifferent?...unhappy?Q3.Ifnotprovided......indifferent?...unhappy?•----------------------•----------------------•----------------------•----------------------•----------------------•----------------------•----------------------•----------------------•----------------------bylistening......towhatthecustomersayshe/shewants...performancetoleranttorealworld...processvariability,notbyinspectionofdefectiveoutput
26DevelopingandReinforcingValuesCycleofRefinementVALUESBEHAVIORATTITUDESCULTURE
27TheRoleofLeadershipNewQuestionsNewValuesNewMeasuresLeadership(Humility/Listening)NewBehaviors
28LeadershipplaystheroleValuesareafunctionofbehaviorsMeasuringtherightthingsiskeyChangemustbesupportedanddrivenfromthetopWillisakeyelementforasuccessfuldeployment
29Whyarewehere?“ThereisarecognitionthatleadershipneedstobeakeycomponentofConsumerDriven6-Sigmawithinanyorganizationtryingtoundertake6-Sigmadeployment.”MikelHarry/RichardSchroeder
30What’sInItForMe?“…thebeststatisticalanalysisintheworldisuselessifthosehandlingtheinformationareparalyzedbycorporatefear.Whendatasuggestsonedirectionbutcorporatecultureorconventiondictatesanother,fearcanruleandthepotentialforchangeislost.Onlystrongleadershipcaneradicatethefearfactorandallowanorganizationtorealizeitspotential.Statisticsalonecannotachievebreakthrough.”MikelHarry/RichardSchroeder
31DefineFutureStateLeadershipinSixSigmaOrientationPresentStateFutureStatePTSLeadershipSkillsBusinessBasicsProjectManagementPersonalDevelopmentPTSPTSPTSPTSDEFINEMEASUREANALYZEIMPROVECONTROLDefinePlanManageCloseTeamManagementTeamDevelopmentMeetingFacilitationTeamManagementDevelopTransitionPlanChangeManagementAnalyzePresentState
32SixsigmastructureStrategy—Consumer-driven,focusonproduct,process,andservice.Organization—All-functioninvolvementandPersonalDevelopment.Policy—Company-wideengagement,HR,IT,andFinancesupport.Management—Project,Team,andChangeManagement.
33DeploymentStructureMasterBlackBelts(Full-Time)ProjectChampions(Part-Time)BlackBelts(Full-Time)GreenBelts(Part-Time)ExecutiveLeadership(Part-Time)DeploymentDirectors(Full/Part-Time)
346sProjectChampions6sDeploymentChampion(s)SMBusinessUnitLeaderCEOCorporate6sSeniorChampionSMHRDeploymentChampionSMITDeploymentChampionSMFinanceDeploymentChampionSMPRDeploymentChampionSMBusinessOperationsLeaders6sHRManager6sFinancialManagerGreenBeltsSM6sITManagerTrainingDeploymentChampionSM6sMasterBlackBeltsSM6sComm.Manager6sTrainingManager6sProjectChampionsSM6sBlackBeltsSM6sDeploymentInfrastructure6sExecutiveCouncilSixSigmaDeploymentRoles
35PhaseI—CascadingEstablishdeploymentstructureExecutive,topmanagement,championawarenesstrainingBlackBelttrainingToolsimplementationtrainingLeadershiptraining
36PhaseII—AcceleratedevelopmentDeploymentstructureimplementationanddispositionineachfunction.EverysalaryisGB.Begintoimplantintocurrentqualitysystem.ISO14000andQS9000integration.
37PhaseIII—IntegrationImplantsixsigmamethodologyinotherqualitytoolsPartnershipwithotherqualitysystem.Sixsigmatrainingtosupplierandfranchise.Sixsigmaindailybusiness.DFSS(DesignforSixSigma).BB/MBBinleadershipposition.
38ItisAllaboutValueTheCustomerValuePropositionDefinesBusinessStrategyCustomerschoosetobuyfromusbecause...Investorsentrusttheirmoneytousbecause...Employeeschoosetoworkforusbecause...
39ThreeCustomerValuePropositionStrategies…ProductdifferentiationOperationalexcellenceCustomerpartnershipsCompetitiveadvantage!
40Consumerv.s.ProducerCustomers–higherexpectationDefect-freequalityProductServiceProducer-planningforchangestomeetcustomerrequirements.Strategic:changingthewayeverylevelofabusinessismanagedonadailybasis.Tactical:sixsigmamethodologyandcross-functional.Cultural:outofboxthinking,everyoneinvolvedandcommonlanguageisdata.Customerswanttopurchasehighqualityproductsandservicesatthelowestcost,justascompanieswanttoproducehighqualitygoodsandservicesatthelowestpossiblecost.
41MaximizingCustomerValueDerivingvaluefromtheNeed-DoInteractionModelNeedDoCustomersandsuppliersexchangevaluethroughtheNeed-Dointeraction.CustomerSupplierInteraction
42Value-CapturingthevoiceofCustomersPartialKanoAnalysisDegreeofAchievementCustomerSatisfactionSurprise:“ErgonomicallyDelighting”Desire:“OperateQuietly”Necessities:“Doesn’tFailMechanically”“Doesn’tFailElectrically”“IsDurable”BasicQualityPerformanceQualityExcitementQuality
43BusinessinitiativesDeliveryCostCustomerrequirementsQualityWhenwesaysomethingisaCTQ,canwedescribeitfromCustomer’sperspective?Ourperspective?Canwedemonstratetherelationship?PRODUCTQUALITYSHIPMENTACCURACYCONDITIONFILLRATE/ON-TIMEDELIVERYORDERSERVICE/INFORMATIONPROFITABLECUSTOMERGROWTHCustomerSatisfaction
44BuildingtherelationshipInternalOthersExternalSegmentDatabasesfromVOCDataextraction&transformationDepartmentaldatamartIntelligencereportsforprojectsCorrelationanalysis
45DatatransformationWhatshouldwedotomakeiteasilyaccessibleasinformationtomanagersandsubordinates?Whatsortofanalysiscanweconduct?Howdoesthatanalysisaddvalue?Howcanwefurtherextendthevalueofourdataanalysis?
46OpportunityandalternativeFocusonthebestopportunitiesStratifytodefinetargetarenasDefinerealoptionsBuildaportfolioofopportunitiestopursueMeetcustomerrequirementsbyrunningthebusinessaswedo?Orneedtochangetogetprodigiousimprovement?Sixsigma?
47Consumer-drivensixsigmaRequiresconsumerstrategy,productstrategy,andinfrastructurestrategyandlinktheminextricablytogether.Conductsbusinessthroughtheconsumers’eyesandsharesunfilteredinsightwithintheenterprise.Createsacompellingconsumerexperienceandinnovatesservicesaswellasproducts.Addsvalueintheeyesoftheconsumer.Integratestheproductandinformation.
48TransformingCustomerFeedbackIntoSAQandthenSixsigmaProjectsSingleAgendaforQualityandCustomerSatisfactionTop25issuesDevelopActionableProjectsIdentifyGenericCriticalX’sHighMileageDFSSNewProductContentMeasureandMonitorCriticalX’sIdentifyCriticalX’sOutofSpecificationDevelopActiontoRestoreCriticalX’sMBBActionVRT(Processowner)BlackBeltProjectLeaderFPS&PlantOperationsQOSDMAICGreenBeltProjects
49ConsumerDriven6-Sigmaoffersastructuredproblemsolvingmethodologytoachievebreak-throughimprovementsbysystematicallyidentifyingrootcausesandeliminatingthemusinganintegratedsetofstatisticaltools,problemsolvingtechniques,data,anddisciplines.SixSigmainprocessimprovementImproveControlDefineMeasureAnalyzeModifyDesign?NoYesRedesign
50SixSigmaMindsetDefineMeasureAnalyzeImproveControlWhatdoesthecustomerwant?Whatisthedefectwewanttoreduce?Arewesurewecantrustthedata?Whatdoesthedatatellus?Whatarethemaininfluencingfactors?Doesthedataconfirmthis?Whatarewegoingtochange?Isimprovementtangibleandoptimal?Howarewegoingtomaintaintheimprovementforever?Howtocascadefeedbacktosystem?JonathanHolbrook6SigmaDeployment
51DEFINEPROBLEM/ISSUEStrategyPreventdefect(s)Eliminatedefect(s)CHARACTERIZEDEFINEOPTIMIZEVERIFYMEASUREANALYZEIMPROVECONTROLBlackbeltprojecttoimprovemfg.capabilityMfg.processcannotprovidesufficientimprovement.Needreducedproductsensitivitytomfg.noise.TheOverallPerspective:DMAICandDCOV
52BreakthroughImprovement5SworkplaceVisualFactoryStandardizedWorkDMAICQualityToolsSixSigmaMethodologyPhaseWorldclassqualityWecan’tsustainavisualfactorywithout5SWecan’tsustainstandardizedworkwithoutvisualfactoryWecan’tsustainsixsigmawithoutstandardizedworkQualitytoolistheengine,SixsigmaisTurbo-chargeDFSSWecan’tmeetsixsigmawithoutsixsigmadiscipline
53Is6-Sigmaastrategicprocessforyourbusinessorisitjustoneofseveral?Is6-Sigmaameanstotransformingourcultureorjusttool?Dowewanttouse6-Sigmainthesamedisciplinedmannerasweuseourfinancialoperatingsystem?Dowewanttotakestepstodrive6-Sigmaaccountabilitydeepintotheorganizationthrough6-Sigmatargetsettingandincentivesforsuperiorperformance?Doesthedatadrivenstep-by-stepprocessshowupinthewayweaddressmostissuesanddiscussions?RequiredMgt.Confirmation6-Sigmaviewedasastrategicinitiative,drivingmajorculturalchangesConsistentviewacrossmanagementAccountabilityforresultsisenforcedbybreakingdown6-SigmatargetsforeachlineorganizationRewardsandincentivesaretieddirectlyto6-SigmabottomlineresultsAdoptedbyallorganizationsandfunctionsasthe“waywedobusiness”andconsistentlyapplied–notanoptionStandardproblemsolvingapproachesandfact/datadrivenbusinessdecisions–likeadisciplinedfinancialoperatingsystemBestPracticeWhileleadershiparticulates6-Sigmaasastrategicinitiative,doesitshowamixedapproachtostrategicintent,widevariabilityAdoptionbasedoninterestofindividuallinemanagers–impliesthereisachoicetodoitornotAccountabilityfor6-Sigmaresultsisnotforcedeitherthroughbreakingdowntospecifictargetsforlineorganizationsorthroughincentivesforsuperior6-Sigmaperformance6-Sigmaseenasprimarilyasatoolandnotyetasa“wayofdoingbusiness”ObservedPracticeTopleadershipneedsclearlyandopenlyconfirmitsstrategicintent
54Ending…..Q&A