Black Belt Six Sigma Training (Overview)

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Six Sigma Black Belt Y = F(X) Y = f(x) Y = F(x) Y = f(x)

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Six Sigma What is Six Sigma ? Six Sigma is a comprehensive system of achieving, sustaining and maximizing Business success driven by…. • Close understanding and satisfaction of customer needs ( Internal & External) • Diligent attention to improving, managing and optimizing business processes, • Disciplined use of facts, data and statistical analysis.

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Six Sigma (Contd.) Six sigma means something different to every company. For Some, It is a continuous process improvement effort designed to reduce cost. For others, It is a management philosophy used to transform a business. Six Sigma means data driven decision making !

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Black Belt Why the name “Black Belts”? The name black belts comes from the sport of Karate. Both Karate and Six Sigma depend on mental discipline and systematic, intensive training. Just as black belts in Karate depend on power, speed and decisiveness, Six Sigma black belts should also depend on the same qualities. Just as the black belts continuously reposition their bodies, Six Sigma black belts also must be able to reposition themselves as they move from one project to another.

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Characteristics of Six Sigma Black Belt Understands the “Big Picture” of the business. Focuses on results and understands the importance of the bottom line. Speaks the language of money, time, organizational objectives. An expert in SPC and continuous improvement tools. Capable of consulting, mentoring and coaching. Drives change by challenging conventional wisdom. Six Sigma Black Belt

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Sigma Sigma (s) is the 18th letter of the Greek alphabet. Sigma (s) is the symbol for Standard deviation. Sigma (s) is a measure of variation . The distance between the mean (m)and the inflection point is the Standard deviation (s). What is Sigma ?

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Sigma In Sigma process WHY SIX ? Short Term

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Sigma Long Term

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Dramatic Improvements 5,000 incorrect surgical operations per week No electricity for almost seven hours each month. Consider what it means to achieve this ultimate level of performance: Four Sigma = 99 % Good Six Sigma = 99.99966 % Good 1.7 incorrect surgical operations per week One hour without electricity every 34 years.

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Changing Quality Philosophy LSL USL Traditional Philosophy Taguchi Philosophy Any things out side the specification limits represents quality Loss Any deviation from the target causes losses to society.

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Customer Satisfaction Customer Satisfaction Organization Goal Quality Defects Delivery Cycle Time Price/Value Cost Whatever is critical to the customer must be critical to our business. Black Belt project are then focused on the process required to satisfy the critical to customer & process.

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Six Sigma is a VISION The vision of six sigma is to delight customer by delivering world class quality products and services through the achievement of sigma levels of performance in every things you do.

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Six Sigma is a PHILOSOPHY The philosophy of six sigma is to apply a structured, systematic theme driven & data driven approach to achieve operational excellence across all areas of your business with an understanding that defect free processes results from breakthrough improvements.

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Benefits of Six Sigma Reduction of Defects Lower Costs Higher Customer Satisfaction Shorter Cycle time Predictable Processes Culture Change Focus on quality, customer and doing it right Pride in being the best Standardization for problem solving Highly trained workforce Common Language

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The Goal of Six Sigma Defect Reduction Yield Improvement Customer Satisfaction $ Six Sigma (s) is a business-driven, multi-faceted approach to process improvement, reduced costs, and increased profits. With a fundamental principle to improve customer satisfaction by reducing defects.

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Six Sigma – Basic Concepts Variation Std Dev - Sigma level Long Term & Short Term Shift & Drift Inspection - not solution Focus of 6 s : Y = f (x) CTx (Critical to Customer & Process) Hidden factory Measurement/ metrics Capability Entitlement Defects & Defectives Rolled Throughput Yield (RTY)

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A Standard Deviation (s) is a measure of the amount of spread or dispersion about the mean (m). T = Process Target s = Standard Deviation m = Mean LSL = Lower Spec. Limit USL = Upper Spec. Limit This is an illustration of a three sigma process . Alternatively, it can be said that this process has a sigma level of 3. In conventional quality lingo , the CpK of this process is 1.0. CpK = Sigma Level / 3 A Three Sigma Process

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A Six Sigma Process A Six sigma process has room for six standard deviation between the mean and nearest specification limit or Cpk of 2.

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Long term Vs Short term Prediction Time Even excellent processes may show small variation over time. By convention , this long term variation is defined as 1.5 sigma correction in short term capability. A six sigma short term process is considered a 4.5 sigma long term process. 6 Sigma Short Term = 4.5 Sigma Long Term

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Process Shift Prediction Time One of the common changes in a process is a step -change in the operating point. This could be the result of a change in the lots of component material , machine to machine variation , intentional changes in an input ( Over control, may be?) etc.

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Process Drift Prediction Time Drift is a gradual change in the short term center of a process. This might be caused by temperature changes, tool wear , contamination build up , depletion of reactants, etc.

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Focus of Six Sigma Y = f (X) Where . Y = Output, F = function, (X) = Input Most of the activities of six sigma are focused on establishing the defining equation for the process of interest. Once this equation is determined and understood, the process can be re-targeted, and variation reduced and controlled.

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Six Sigma Magic : Y= f (X) Common Sense : The output is a function of the inputs. The Magic: Which inputs are significant? What is the relationship between the output (Y) and the inputs(X’s) ? Six Sigma Process: Establishes this relationship to be used for optimization and improvement.

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The Hidden Factory All of the work that is performed that is above and beyond what is required to deliver good service to the customer , work that is not necessarily tracked ( cost, productivity, etc.) Assemble Components per Schedule Compare Label details Against requirements Deliver to Process Compare Kit ID Against Schedule Proceed with process Fail for wrong component Fail for wrong kit Set Aside Wrong Selections for Replacement Set Aside Wrong Selections for Replacement Elimination of Hidden factories can provide huge savings.

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Six Sigma Metrics Capability : The ratio of the process specifications to the process variation. Quantified by Cpk, Ppk, Sigma – Level, Z- score Entitlement : Entitlement is the best , potential performance of a process based on the process design. Practically , entitlement can be estimated by: The best , short term observation of the process. The best , short term observation of a similar process. The performance after subtracting special - cause variation.

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Six Sigma Metrics Defective : Any product that has at least one defect. Defect : An output of the process that does not meet a defined specification. Defects per unit (dpu) Rolled Throughput Yield (RTY) The product of all of the sub process yields. dpu = Total defects observed Total units processed

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Six Sigma Process Practical Problem Purification yield for chemical analysis is only 85% versus a plan of 95%. How much does yield vary ? How accurate can I measure ?

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Six Sigma Process Practical Problem Statistical Problem Which inputs (X’s) affect the critical Outputs (Y’s) ? (Temperature, Concentrations,Mixing, Time,Volume, Catalyst, etc) What is the defining equation for the process (Y= f(X's)) ?.

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Six Sigma Process Practical Problem Statistical Problem Statistical Solution What are the optimal settings for the critical X's ? What are the specifications for the critical Y's ? Y=A+B*Temp +C*Press + ….+ Z*Etc.

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Six Sigma Process Practical Problem Practical Solution Statistical Problem Statistical Solution Change the settings. (Temp = 125, Catalyst = Pt, etc.) Verify the improvement. Control the new process to sustain the gain.

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Six Sigma Process Practical Problem Define & Measure Control Practical Solution Improve Statistical Solution Statistical Problem Analyze

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Phase of Breakthrough D M A I C Define Measure Analyze Improve Control Project Alignment Establish a Baseline Determine y=f(x) Optimize y=f(x) Implement Long Term Breakthrough !

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DMAIC & Funnel Effect Define & Measure Analyze Improve Control Phase I Phase II Phase III Phase IV 30 – 50 Inputs 8 – 10 X’s 4 – 8 Critical X’s 3 – 6 Critical X’s Most Variation is caused by a few X’s (Inputs) At the beginning of the project, be sure to list all the possible inputs, even if you think that they are unimportant. Some times(often) the team can proceed down the funnel and discover that a large part of the variation is unexplained by the critical X's. This means that some critical X's were left higher in the funnel. It helps to have them all listed early so they can be recaptured and included easily.

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Purpose of DMAIC Define / Measure Define the project scope. Document the process. Identify X's and Y's. Evaluate Measurement System. Determine Baseline Capability. Analyze Reduce number of X's and Y's through hypothesis test, Multivari, ANOVA and FMEA. Detect/ eliminate noise variables Plan for DOE Control Optimize process. Designing the control plan. Sustain the gains. Implementing the control plan. Improve Manipulate X's for effect on Y's sequential experimentation DOE. Identify critical X's. Find improved operating conditions.

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Recognize True states of business Define Plans for each state (BM) Measure Business systems that support plan Analyze Gaps in Bench Mark & Performance Improve To achieve Bench Mark Control Which are critical to value Standardize In strategic planning Integrate That prove to be best in class 1 8 6 5 4 3 2 7 Identify Key Business Issues Identification Understand Current performance level Characterization Achieve break through improvement Optimization Transform how day to day business is conducted Institutionalization A D C B BLACK BELT PROJECT Six Sigma Road Map

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Project Definition Project Definition Project Definition

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Cast of Characters Executive Owns the Vision, direction,integration and results. Leads the culture change. Green Belts Help Black belts Local advocates Accelerates deployment Project Team Members Help the Black Belts Supply Process Expertise Project Specific work Process Owners Identify project opportunities Implement Solutions Help lead culture change Champions Set goals / Select projects Enable Black Belt Master Black Belts Defines Projects Coach / Train Black Belts

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Black Belts Messenger Agent of change for Organization Culture Leader / Role Model Teacher Trainer for Project Team Members Technical Resource for the Organization Leader Execute Breakthrough Process Guide Project Teams

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Achieving Critical Mass Number of People Implementation Time Team Members Green Belts Black Belts Master Black Belts

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Defining Issues Define major business issues Champion Duties Goal Objectives Deliverables Identify contributing processes that are critical to the organization.Three typical project categories are : Cycle time Quality / Defect level Cost of usage Others The business goals are established by upper management. The Black Belt should be familiar with his organization’s overall goals.

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Identifying Problems Identifying problems associated with critical processes Champion Duties Cycle time too long Excessive defects High cost of usage Inventory too high Link a departmental and functional goals Avoid redundancy With Black Belt projects from other divisions With existing departmental projects Most Champions have a good idea which problems are critical to their organization. The hard part is often defining a general problem in to specific, workable project(s).

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Selecting Projects Complex problems may require division in to several projects. Project Selection tools. Champion Duties Macro Map Pareto Analysis Fishbone diagram Cause & Effect Matrix Project Guideline 70 % reduction in defects possible $ 175,000 first year savings Completion in approximately 4 months Minimum capital investment First Black belt projects must satisfy training objectives

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Exploration & Discussion What is the business goal associated with your project? What general process is your project trying to address ? Cycle time , defects,consumables usage, Low Yield machine down time, maintenance costs, rework,excessive testing / inspection, customer complaints, reliability, Bottlenecks, capacity constraints, inventory. Does your project fit the six sigma project guideline ? How do you know ? 70 % reduction in defects possible $ 175,000 first year savings Completion in approximately 4 months Minimum capital investment Training project- requires use of many Six Sigma tools.

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Six Sigma Project Questions Who is my customer ? Next process,next division, end user, all of the above ? What matters to him ? Fit , function ,appearance, delivery, cost quality ? What is the scope ? How much of the process affects the output in focus ? What is the defect ? What is wrong with the output ? What is the measurements ? What is the standard ? By how much I am trying to reduce it ? What is the reasonable goal , a definition of success ? What is the benefit of reducing this defect ? How much money will the organization save by this project?

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More Six Sigma Project Questions What is my process ? How does it works ? Which process(es) most affect the customer wants ? Which process outputs affect what the customer wants ? What are the output of the target processes ? Which input affect the output ? Which input are critical to control ? How well can I measure the inputs and outputs ? Can my measurement systems defect important variations? How is my process doing today ? How is my base line ? How much does it vary? What is the best my process can do ? How much improvement is possible ? What is the entitlement ?

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Draft Problem Statement Define Project Scope Identify the matrix Determine the output Two are fewer outputs? Redefine Project Scope Quantify the Opportunity Calculate Benefits Meet Six Sigma Criteria? Launch project Reconsider project Yes No No Yes Black Belt Project Definition

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Black Belt Project Definition Worksheet Introduction Identify the problem in terms of your key corporate goals and objectives Identify the associated processes Identify the defects contributing to the problem Identify the costs and impact of the problem. Write the Problem Statement Establishing expectations Write the Objective Statement Check for duplication Assigning the team

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Project Definition Worksheet Black Belt Project Definition Worksheet

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Black Belt Project Definition Worksheet Identify the problem in terms of your key corporate goals and objectives

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Black Belt Project Definition Worksheet Identify the associated processes

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Black Belt Project Definition Worksheet Identify the defects contributing to the problem

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4. Identify the costs and impact of the problem. 5. Write the Problem Statement Black Belt Project Definition Worksheet

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6. Establishing expectations 7. Write the Objective Statement Black Belt Project Definition Worksheet

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8. Check for duplication 9. Assigning the team Black Belt Project Definition Worksheet

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Project Scope -- Common Mistakes Most Common : Scope too broad Other mistakes: “Solving world hunger”. Symptoms : Many outputs, Vague goals, poorly defined problem, un-measurable output. Many final test / inspection projects are too broadly scoped Solution : Divide problem into several projects Too easy. Problem is known. Solution : fix it! Long term development project – capital intensive. Cost reduction by vendor redesign or renegotiation. Process or product re-design.

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Primary Metrics The gage used to measure your success It must be consistent with the problem statement. It is used to track progress towards your goals and objectives. It is usually reported as a time series graph of : Baseline data – averaged over a year, if available Target performance- goal or objective. Actual ( Current) performance Examples : 1. Rolled throughput yield (RTY) 2. Process Z- score or Cpk 3. Defects per unit (DPU) Or The Primary Metric is the measure of your success. It is the metric that will be tracked by the Process Owner after the project is realization. It must reflect the original problem and the result of the changes made during the project. The Primary Metric is the metric to be tied to the financial goals of the project.

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Consequential Metrics Metrics to measure possible unintended consequences of process changes. A consequential metrics is your conscience to keep you honest ; to keep you from passing your problem to another area. Consequential metrics were made for pessimists. These metrics need to be chosen carefully since they are needed to safeguard against improvements in one area causing disaster in another. One example would be for purchasing to choose a cheaper component for an assembly, only to find out that it becomes a field reliability issue. Consequential metrics are not as obvious as the primary metrics, either. A what – can – go – wrong type of analysis ( a mini FMEA) may be required to establish proper consequential metrics. The consequential Metrics are what you avoid harming.

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Project Metrics Examples Cycle Time Reduction Primary Metrics Cycle Time / Production Unit Consequential Metrics Labor Hours / Production Unit Cost of Usage Defect Reduction Primary Metrics DPU,PPM,RTY Consequential Metrics Cost / Unit , Cycle Time / Unit Primary Metrics Unplanned Downtime Consequential Metrics Over time Hours

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Using S.M.A.R.T for Project Objectives Specific Measurable Aggressive yet Achievable Relevant Time-bound

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