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The
Goal of Six Sigma is to increase the profits by eliminating
variability, defects and waste that undermine customer
loyalty. |
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For
Motorola, the originator of Six Sigma, the answer to the
question "Why Six Sigma?" was simple: survival.
Motorola came to Six Sigma because it was being consistently
beaten in the competitive marketplace by foreign firms
that were able to produce higher quality products at a
lower cost. When a Japanese firm took over a Motorola
factory that manufactured Quasar television sets in the
United States in the 1970s, they promptly set about making
drastic changes in the way the factory operated. Under
Japanese management, the factory was soon producing TV
sets with 1/20 th the number of defects they had produced
under Motorola management. They did this using the same
workforce, technology, and designs, making it clear that
the problem was Motorola's management. Eventually, even
Motorola's own executives had to admit "our quality
stinks," |
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Finally,
in the mid 1980s, Motorola decided to take quality seriously.
Motorola's CEO at the time, Bob Galvin, started the company
on the quality path known as Six Sigma and became a business
icon largely as a result of what he accomplished in quality
at Motorola. Today, Motorola is known worldwide as a quality
leader and a profit leader. After Motorola won the Malcolm
Baldrige National Quality Award in 1988 the secret of
their success became public knowledge and the Six Sigma
revolution was on. |
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Six
Sigma is a rigorous, focused and highly effective implementation
of proven quality principles and techniques. Incorporating
elements from the work of many quality pioneers, Six Sigma
aims for virtually error free business performance. Sigma,
s , is a letter in the Greek alphabet used by statisticians
to measure the variability in any process. A company's
performance is measured by the sigma level of their business
processes. Traditionally companies accepted three or four
sigma performance levels as the norm, despite the fact
that these processes created between 6,200 and 67,000
problems per million opportunities! The Six Sigma standard
of 3.4 problems per million opportunities is a response
to the increasing expectations of customers and the increased
complexity of modern products and processes. |
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Statistical
implications of Six Sigma program go well beyond the
qualitative eradication of customer- perceptible defects.
Six Sigma uses a methodology that is well rooted in
mathematics and statistics. This methodology is popularly
known as DMAIC Methodology. |
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DMAIC
refers to data-driven quality strategy for improving
processes, and is an integral part of the Company's
Six Sigma initiative. |
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DMAIC
is acronym for five interconnected phases; D efine,
M easure, A nalyze, I mprove and C ontrol. |
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Each step in the
cyclical DMAIC Process is required to ensure the best
possible results. The process steps: |
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DMAIC (D efine, M easure,
A nalyze, I mprove and C ontrol) |
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Detailed model
includes the following: |
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Define the goals of the
improvement activity. At the top level the goals will
be the strategic objectives of the organization, such
as a higher ROI or market share. At the operations level,
a goal might be to increase the throughput of a production
department. At the project level goals might be to reduce
the defect level and increase throughput. Apply data mining
methods to identify potential improvement opportunities.
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Define
who customers are, what their requirements are for
products and services, and what their expectations
are |
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Define
Project Boundaries, the stop and start of the process |
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Define
the process to be improved by mapping the process
flow |
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Measure the existing system.
Establish valid and reliable metrics to help monitor progress
towards the goal(s) defined at the previous step. Begin
by determining the current baseline. Use exploratory and
descriptive data analysis to help you understand the data.
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Develop
a Data Collection Plan for the process |
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Collect
Data from many sources to determine types of defects
and metrics |
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Compare
to customer survey results to determine shortfall
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Analyze the system to identify
ways to eliminate the gap between the current performance
of the system or process and the desired goal. Apply statistical
tools to guide the analysis. |
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Identify the Gaps between current performance and
global performance |
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Prioritize
opportunities to improve |
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Identify
sources of variation |
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Improve
the system. Be creative in finding new ways to do things
better, cheaper, or faster. Use project management and
other planning and management tools to implement the
new approach. Use statistical methods to validate the
improvement. |
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Create
innovative solutions using technology and discipline |
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Develop
and deploy implementation plan |
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Control the new system.
Institutionalize the improved system by modifying compensation
and incentive systems, policies, procedures, MRP, budgets,
operating instructions and other management systems. You
may wish to utilize systems such as ISO 9000 to assure
that documentation is correct. |
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Prevent
reverting back to the “Old way” |
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Require
the development, documentation and implementation
of an ongoing monitoring plan |
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Institutionalize
the improvements through the modifications of systems
and structures( Staffing, training, incentives)
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Modes
of operation and profitability have been significantly
impacted at companies that have used the Six Sigma approach
to quality improvement. In some form or another, Six
Sigma represents the wave of the future for all organizations.
The major focus is particularly on the broadening of
the approach from internal criteria like scrap reduction
to external criteria like complete customer satisfaction.
The evolution has resulted in a change of focus from
chiefly manufacturing to all performance elements, especially
in the areas of product design and commercial operations.
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Investè helps organizations
implement Six Sigma by training and involving itself in
the process itself by way of: |
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Adopting
a systemic approach |
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Defining
and establishing roles and responsibilities within
design, manufacturing and throughout the organization |
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Identifying
methods and techniques to define the processes and
customer requirements and identifying critical steps
and key measures |
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Introducing
and plotting practices for benchmarking performance
and processes for prioritizing improvement opportunities |
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Investè
works with its clients to create and use standard
formats to identify, reduce and control the sources
of variation, allowing individuals or project teams
to focus on reducing the standard deviation within
the processes, rather than obsessing over method.
This also helps ensure the correct application of
the powerful tools such as statistical analysis,
experimental design and project Management –
that speed the execution of improvement activities. |
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Overview
