Week 6a-Intro To Six Sigma
Week 6a-Intro To Six Sigma
Week 6a-Intro To Six Sigma
Customer •
•
Completeness of customer order
• Shipping method
• Promise ate
{
Uncontrollable Process Variables
• Customer service rep attitude, shift,
Customer
team
Process Outputs
Process
(Cont.)
• Order correctness
• Delivery time
• Package quality
Additional information here
Process Variation
• Variation is present in all processes and every aspect of the workplace
• Excess variation reduces process performance, decreases customer
satisfaction, and has a negative impact on the bottom line
• Applies to all aspects of a business
• Statistical methods, an integral component of six sigma, are useful in
shifting the process target to the desired level and reducing the
variation around this target
Variation is everywhere!
• Meeting delivery schedule and delivery • Forecasting accuracy & timing
accuracy
• Improving audit process
• Reducing average and variability in
days outstanding of accounts receivable • Closing books, accuracy of journal entry
& posting (3-4% error rate typical)
• Optimizing payment of outstanding
accounts • Reducing variability in cash flow
Good conceptual
model
Quality Improvement
Traditional definitions of quality
Quality of design
Quality of conformance
• Performance • Aesthetics
• Reliability • Features
• Durability • Perceived quality
• Serviceability • Conformance to standards
Additional information here
Quality Terminology
• Quality characteristics (CTQs)
• Specifications
o Nominal or target value
o Upper and lower specification limits
• Natural tolerance limits
• Variables versus attribute data
• Nonconforming product
• Defects (nonconformities)
Additional information here
• What’s next?
“…I believe that our people and world-class six sigma deployment distinguish
Caterpillar from the crowd. What an incredible success story six sigma has been
for Caterpillar! It is the way we do business – how we manage quality, eliminate
waste, reduce costs, create new products and services, develop future leaders,
and help the company grow profitably. We continue to find new ways to apply the
methodology to tackle business challenges. Our leadership team is committed to
encoding six sigma into Caterpillar’s “DNA” and extending its deployment to our
dealers and suppliers – more than 500 of whom have already embraced the six
sigma way of doing business.”
27 January 2005
Six Sigma Focus
• Initially in manufacturing • DFSS – Design for Six Sigma
• BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation)
o Define
o Measure
o Analyze
o Improve
o Control
Structure of a
Leadership Team
typical six sigma
organization
Champion,
MBBs project
sponsors
GBs
HR, IT, Legal, Logistics,
Finance, MFG, Engineering