Kash Masuria Whats Six Simga Presentation

What is Six Sigma? by Kash Masuria Certified Six Sigma Black Belt (Crane Aerospace 2003) Why you need it and how to make it work…

What we will learn ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What’s a Business For? TO GENERATE WEALTH

How can we make money? Raise prices Sell more Reduce costs

The Quality Gap Scenario Customer Expectations Baseline Performance Increasingly demanding customer Increasingly difficult to achieve high customer satisfaction (high quality) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quality Gap Expectations rise over time

Why reduce cost? PRICE = COST + PROFIT (Demand > Supply) Cost Profit Price Price (Monopolized market only) Price Cost Cost Profit (Highly competitive market) PROFIT = PRICE - COST (Demand < Supply)

Need for change It’s time to… When things get rough CHANGE...

The Renewal Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The goal is to continuously modifying the processes to met the business needs SIX SIGMA IS THE ANSWER

What does 99% accuracy mean? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Simply means: 1% of the times the specifications are not met DEFECTS Conclusion : 99% Accuracy Falls Short

What is Sigma? Sigma (  ) is a symbol that refers to a statistical measure called standard deviation , which is a measure of variation   2  2  LSL USL 6  6  LSL USL Defects Defects

Six Sigma Tool Map (Say Invoice Payment) ,[object Object],Next Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Validate Project $ Validate Project $ Validate Project $ Validate Project $ Celebrate Project $

Problem Definition ,[object Object],[object Object],[object Object],M easure A nalyze I mprove C ontrol D efine

Quantify the problem ,[object Object],[object Object],[object Object],[object Object],[object Object],A nalyze I mprove C ontrol D efine M easure What you think it is… What it actually is… What you want it to be…

Process Analysis ,[object Object],[object Object],[object Object],Lower Spec Upper Spec Voice of the Process Voice of the Customer M easure I mprove C ontrol D efine A nalyze

Sources of Variation Identify and Quantify the sources of variation M easure I mprove C ontrol D efine A nalyze Cycle time variation Lack of standardization Scalability Transactional

Process Improvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],M easure C ontrol D efine I mprove A nalyze Cost, time, resources, risk all increase with complexity

Control & Sustain ,[object Object],[object Object],[object Object],[object Object],M easure C ontrol D efine I mprove A nalyze Tools ,[object Object],[object Object],[object Object],[object Object],[object Object],Region of non-random variation Region of non-random variation UCL Mean LCL

Resulting Breakthrough Improvement Time Performance GOOD BAD 3 Sigma (CpK = 1) 6 Sigma (Cpk = 2) Quantum Improvement

DEPLOYMENT STRATEGY The“How to”

Organizational Alignment ,[object Object],[object Object],[object Object],[object Object],[object Object],Select the Right Projects Form the Right Teams & Train Them Knowledge Centered Activities – Breakthrough Solutions Developed Manage for Excellence in Operations Sustain the Gains ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Simple Approach Organizational Goals Organizational Impact

Infrastructure Deployment Activities Five Black Belts 80~100% Consulting/Mentoring/Training/TeamBuilder Master Black Belt Ask the right questions Promote Six Sigma within Workgroups 10% Breakdown barriers; Remove constraints Champions 4-5/ year $0.8 - 30M/ year/LBB Two green belts 10%~20% Lead use of techniques. Change Agent. Black Belt 2 / year $250K/ year/GBB Find one new green belt 2%~5% Utilize Six Sigma Methods Green Belt Related Projects/ Project Savings Mentoring Time on Consulting/ Training Task

Success Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Integration NOT Coexistence Coexistence Run the business Six Sigma Integration Run the business, using Six Sigma Change Deployment “ You must be the change you wish to see in the world.” – Mahatma Ghandi

Change deployment is like… Dialing one of the digits wrong is only a 10% error… Dialing a phone number YET IT WILL NOT GET YOU THROUGH , DON’T THROW GOOD MONEY AWAY THE COMPANY FUTURE IS IN YOUR HANDS, DEPLOY SIX SIGMA AND START SAVING (£$£$£)

Kash Masuria Whats Six Simga Presentation

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Kash Masuria Whats Six Simga Presentation