Tai Lieu Chat Luong Source: The Six Sigma Black Belt Handbook Part One: The Six Sigma Management System This first part of The Six Sigma Black Belt Handbook focuses on the extension of Six Sigma into a management system that encompasses all levels of an organization. Motorola University consultants have found that while implementing Six Sigma through individual projects has pro- duced significant results in many organizations, sustainable, breakthrough improvements are realized by those organizations whose leadership has embraced Six Sigma and incorporated it into their vision, strategies, and business objectives - in short, adopted Six Sigma as the system for man- aging their organizations. The Six Sigma Management System enables a leadership team to align on their strategic objectives, establish their criti- cal operational measures, and determine their organizational performance drivers and then use those to implement, drive, monitor, and sustain their Six Sigma effort. The four chapters in this part of the book will: z Introduce the Six Sigma Management System, and distinguish it from the Six Sigma metric and Six Sigma methodology z Explain the background (Chapter 1), principles, and elements of the Six Sigma Management System (Chapter 2) z Describe the Six Sigma leadership modes (Chapter 3) z Provide insights into Six Sigma leadership (Chapter 4) z Illustrate key tools used to implement the Six Sigma Management System Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies.
All rights reserved. Any use is subject to the Terms of Use as given at the website. The Six Sigma Management System Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved.
Any use is subject to the Terms of Use as given at the website. Source: The Six Sigma Black Belt Handbook Chapter 1 • Introduction to Six Sigma Six Sigma has been labeled as a metric, a methodology, and now, a man- agement system. While Green Belts, Black Belts, Master Black Belts, Champions and Sponsors have all had training on Six Sigma as a metric and as a methodology, few have had exposure to Six Sigma as an overall management system. Reviewing the metric and the methodology will help create a context for beginning to understand Six Sigma as a man- agement system.
Management System ySix Sigma drives strategy execution yLeadership sponsorship and review yMetrics driven governance process yEngagement across the organization ManagementSystem Management System Methodology Methodology Methodology yConsistent use of DMAIC model yTeam based problem solving Metric Metric yMeasurement-based process analysis, improvement, and control Metric yMeasure process variation Figure 1-1 Six Sigma as a Metric, Methodology, Management System Six Sigma as a Metric Sigma is the measurement used to assess process performance and the results of improvement efforts - a way to measure quality. Businesses use sigma to measure quality because it is a standard that reflects the degree of control over any process to meet the standard of performance estab- lished for that process. Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved.
Any use is subject to the Terms of Use as given at the website. Introduction to Six Sigma 4 Chapter One Sigma is a universal scale. It is a scale like a yardstick measuring inches, a balance measuring ounces, or a thermometer measuring temperature. Universal scales like temperature, weight, and length allow us to compare very dissimilar objects.
The sigma scale allows us to compare very differ- ent business processes in terms of the capability of the process to stay within the quality limits established for that process. The Sigma scale measures Defects Per Million Opportunities (DPMO). Six Sigma equates to 3.4 defects per million opportunities. The Sigma metric allows dissimilar processes to be compared in terms of the number of defects generated by the process in one million opportunities.4 DPMO Sigma (Defects Per 5 233 Million Opportunities) 4 6210 3 66810 Figure 1-2 Sigma Scale A process that operates at 4.6 Sigma is operating at 99.
That means: z 4000 wrong medical prescriptions each year z More than 3000 newborns being dropped by doctors/nurses each year z 2 long or short landings at American airports each day z 400 lost letters per hour A process that operates at the 6 Sigma level is operating at 99. At 6 Sigma, these same processes would produce: Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
Introduction to Six Sigma Introduction to Six Sigma 5 z 13 wrong drug prescriptions per year z 10 newborns dropped by doctors/nurses each year z 2 long or short landings at U. airports each year z 1 lost letter per hour Mikel J. Harry, one of the developers of Six Sigma at Motorola, has esti- mated that the average company in the Western world is at a 4 Sigma level, while 6 Sigma is not uncommon in Japan.1 Dave Harrold, in Control Engineering 2 cites benchmark sigma levels broken down by industry and type of process: z IRS phone-in tax advise - 2.2 z Restaurant bills, doctors prescription writing, and payroll processing - 2.0 z Airline baggage handling - 3.2 z Best in class companies - 5. Navy aircraft accidents - 5.7 z Watch off by 2 seconds in 31 years - 6 z Airline industry fatality rate - 6.2 Clearly, the value of sigma is its universal application as a measuring stick for organizational and process quality.
With sigma as the scale, measures of as-is process quality and standards for should-be process targets for quality improvement can be set and understood for any business process. Six Sigma as a Methodology The Six Sigma methodology builds on the Six Sigma metric. Six Sigma practitioners measure and assess process performance using DPMO and sigma. They apply the rigorous DMAIC (Define, Measure, Analyze, Improve, Control) methodology to analyze processes in order to root out sources of unacceptable variation, and develop alternatives to eliminate or reduce errors and variation.
Once improvements are implemented, con- trols are put in place to ensure sustained results. Using this DMAIC methodology has netted many organizations significant improvements in product and service quality and profitability over the last several years. The Six Sigma methodology is not limited to DMAIC. Other problem- 1 Harry, Mikel.
"Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations. Random House Publishers, 2000. 2 Harrold, Dave, "Designing for Six Sigma Capability", Control Engineering, January 1, 1999 Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved.
Any use is subject to the Terms of Use as given at the website. Introduction to Six Sigma 6 Chapter One solving techniques and methodologies are often used within the DMAIC framework to expand the tool set available to Six Sigma project teams. These include: z Theory of Inventive Problem Solving (TRIZ) z Lean z Ford 8Ds (Disciplines) z 5 Whys z Is/Is Not Cause Analysis Utilizing the sigma metric and marrying this variety of approaches with the DMAIC methodology, the Six Sigma methodology becomes a power- ful problem-solving and continuous improvement methodology. Clearly, the use of a consistent set of metrics can greatly aid an organiza- tion in understanding and controlling their key processes.
So too, the var- ious problem-solving methodologies significantly enhance an organiza- tion's ability to drive meaningful improvements and achieve solutions focused on root cause. Unfortunately, the experience of Motorola University consultants has demonstrated that good metrics and disciplined methodology are not sufficient for organizations that desire breakthrough improvements and results that are sustainable over time. In fact, conversations with organizational leaders who report dissatisfac- tion with the results of their Six Sigma efforts have shown their Six Sigma teams have sufficient knowledge and skill related to good use of metrics and methodology. However, all too often, these teams have been apply- ing the methodology to low level problems, and have been working with process metrics that don't link to the overall strategy of the organization.
It is this recurring theme that has driven Motorola University to develop the concept of Six Sigma as a management system, first introduced in the book "The New Six Sigma". Six Sigma as a Management System Six Sigma as a best practice is more than a set of metric-based problem solving and process improvement tools. At the highest level, Six Sigma Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved.
Any use is subject to the Terms of Use as given at the website. Introduction to Six Sigma Introduction to Six Sigma 7 has been developed into a practical management system for continuous business improvement that focuses management and the organization on four key areas: z understanding and managing customer requirements z aligning key processes to achieve those requirements z utilizing rigorous data analysis to understand and minimize variation in key processes z driving rapid and sustainable improvement to the business processes. As such, the Six Sigma Management System encompasses both the Six Sigma metric and the Six Sigma methodology. It is when Six Sigma is implemented as a management system that organizations see the greatest impact.
These organizations are among those that have demonstrated that break- through improvements occur when senior leadership adopts Six Sigma as a management system paradigm. z In 1999, ITT Industries implemented Value-Based Six Sigma (VBSS), the company's "overarching strategy for continuous improvement" (source: ITT Industries website). In the 2003 letter to the shareholders, the then-Chairman, President, and CEO, Louis J. Guiliano, wrote, "VBSS gives us the tools and discipline we need to make fact-based decisions, to solve problems and to find solutions in a systematic and measurable way.
Now in its fourth year, the VBSS strategy is already making a huge difference to our customers. The thrust of our VBSS projects has shifted from simple initial short- term projects that drive out costs and waste, to more comprehensive projects that focus on making improvements that mean the most to our customers. VBSS is generating many new ways of growing our business and increasing our capacity, as well as saving millions of dollars. It is a key contributor to our robust cash flow performance.
As our VBSS project leaders grow in numbers and in expertise - more than 10 percent of our 39,000 employees are now certified as Champions, Black Belts or Green Belts - they are increasingly focused on projects that are changing the way we do business in profound and enduring ways. Through the combined efforts of the Champions, Black Belts, Green Belts, and the teams they lead, we Downloaded from Digital Engineering Library @ McGraw-Hill (www.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
Introduction to Six Sigma 8 Chapter One are seeing real progress in the quality of the products and services we are providing to customers. We are shortening cycle times, reducing lead times, and eliminating excess inventories; we are meeting or exceeding on-time delivery commitments, and dramati- cally reducing defect rates. Our customers have noticed these improvements, and we see this reflected in enhanced customer loyal- ty and market share position. More than that, our employees gain satisfaction from working on these teams." z General Electric started its quality focus in the 1980s with Work- Out.
Today, Six Sigma is providing the way "to meet our customers' needs and relentlessly look for new ways to exceed their expect- ations. Work-Out® in the 1980s defined how we behave. Today, Six Sigma is the way we work. Six Sigma is a vision we strive toward and a philosophy that is part of our business culture.
It has changed the DNA of GE and has set the stage for making our customers feel Six Sigma.