Thursday 19 November 2009

What Six Sigma is Not ?

1) Six Sigma is not another quality program. Six Sigma uses your resources to fix identifiable, chronic problems. It proves its value by connecting outcomes to your bottom line.

2) Six Sigma is not theory. It's a practice of discovering the vital few processes that matter most. It defines, measures, analyzes, improves, and controls them to tie quality improvement directly to bottom-line results.

3) Six Sigma is not a training program. Of course, practitioners are trained in the methodology to ensure correct implementation and results.



Here are some facts about the ripple effects of low-sigma performance:


1)A dissatisfied customer will tell nine people about an unhappy experience.
2)The same customer will only tell five people if a problem is handled satisfactorily.
3)Thirty-one percent of customers who experience service problems never register complaints, because it is "too much trouble."
4)Of that 31 percent, as few as 9 percent will do additional business with the company.

Six Sigma Process Flow

  Six Sigma Process Flow 


 Six Sigma Vs Lean Thinking Vs Theory of Constraints



Types of Waste in Project Management

There are different types of waste in the Six Sigma terminology.One of the primary goals of the Lean Six Sigma project management methodology is the elimination and reduction of waste.




These seven types of waste are:


Overproduction - occurs when a product is made without a buyer

Waiting - occurs when a product sits in waiting for processing

Transport - occurs when a product is moved to many different places

Inventory - occurs when a product is stored and it costs money

Over-processing - occurs when a step in the process is unnecessary or redundant

Motion - occurs when people move excessively

Defects - occurs when an error in the process occurs

What is a Time Value Map?

A time value map can be a very useful tool when utilizing Six Sigma methodology.

A time value map tracks a single work item through its process. It accounts for where time is spent on this action item. The time value map begins with the outset of the work item and it tracks it through delivery to the end user.
The aim of the time value map is to eliminate waste. As you'll remember from Six Sigma and Lean Six Sigma, waste is something that should be avoided at all costs. By tracking where time is spent, processes and tasks that do not contribute to the overall quality of the end product can be eliminated, and the process for that product can be streamlined.
Companies that wish to save money and resources do well to reduce waste in their processes.
The reason a time value map is so crucial to project management is that it allows identification of areas of waste.


Draw the Time Value Map


Now that you know the three categories, you can track each of the activities involved in the work process. You will need to track each activity involved in the work item's process and the time it takes to complete the activity.


The center line is the timeline for the entirety of your project's duration. Above this line, you will chart the activities that are value-added work at the appropriate time on the time line. Below the timeline, you will track the waste. The creator of the chart used two different colors to differentiate between unavoidable and avoidable waste.


Finally, once you have a visualization of the time value in your project, you can begin to eliminate areas of waste and improve the quality and speed of your work item process.

Wednesday 18 November 2009

What situations warrant initiation of Six Sigma and/or Lean?




1. Your competition is using this methodology to improve their processes.


2. You want to reduce the number of defects and improve your image with the customer.

3. You want to spend less money on non-value added activities such as cost of non quality.

4. Some of your clients demand that you continuously improve your processes over time.

5. Even if your operational processes are excellent, you still have opportunities to improve in transactional areas.

6. You want to emphasize the importance of a quality work culture in your organization.

7. You want to gain an edge over your competition in order to charge a premium for your services.

8. You want your managers to make decisions based on facts rather than their "gut" feel all the time.

9. You would like to quantify the benefits realized of improvement opportunities.

10. You don't want to be left behind on the learning curve.

Tuesday 17 November 2009

DMAIC Versus DMADV

The Similarities of DMAIC and DMADV

- Six Sigma methodologies used to drive defects to less than 3.4 per million opportunities.

- Data intensive solution approaches. Intuition has no place in Six Sigma -- only cold, hard facts.

- Implemented by Green Belts, Black Belts and Master Black Belts.

- Ways to help meet the business/financial bottom-line numbers.

- Implemented with the support of a champion and process owner.


The Differences of DMAIC and DMADV

DMAIC
- Define : Define the project goals and customer (internal and external) deliverables
- Measure : Measure the process to determine current performance
- Analyze : Analyze and determine the root cause(s) of the defects
- Improve : Improve the process by eliminating defects
- Control : Control future process performance




When To Use DMAIC

The DMAIC methodology, instead of the DMADV methodology, should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately.

DMADV
- Define : Define the project goals and customer (internal and external) deliverables

- Measure : Measure and determine customer needs and specifications
- Analyze : Analyze the process options to meet the customer needs
- Design : Design (detailed) the process to meet the customer needs
- Verify : Verify the design performance and ability to meet customer needs





When To Use DMADV

The DMADV methodology, instead of the DMAIC methodology, should be used when:

- A product or process is not in existence at your company and one needs to be developed

- The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level

Design for Six Sigma

Six Sigma is certainly a powerful approach for the improvement of business processes, either in service or manufacturing industries, and the DMAIC methodology is proving so effective that it has become the industry standard for quality improvement.
Lean and Six Sigma are integrated, providing tools and techniques to deal with the transactional and efficiency side of manufacturing. TRIZ, the theory of inventive problems solving, is also being integrated within Six Sigma to support the generation of more proactive ideas.


However the design of products and services remains a major challenge, and organisations still continue to propel new products to the market place without a solid guarantee of commercial success. Service by their nature and tradition have never been consciously designed at all!



Design for Six Sigma (DFSS) is an approach that extends the concept of Six Sigma process improvement to that of the design of new products and services, or the re-design of existing items, together with the meticulous design of the supporting processes that deliver these items to the market. Whilst many DFSS methodologies today promote rigorous engineering design with a stronger customer focus, many lack the vision and integration with a successful corporate processes for the introduction of the 'new'.

The company of tomorrow with a successful DFSS programme that extends from the board room down to the mail room and out to the customer will reap the rewards from the rapid development and introduction of products and service that excite the customer and deliver excellent sigma performance, right from the start.