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Using 6 Sigma to Achieve Process Improvement.ppt

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Using 6 Sigma to Achieve Process Improvement.ppt

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Using 6 Sigma to Achieve Process Improvement.ppt

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Using 6 Sigma to Achieve Process Improvement
2
The Focus of Six Sigma
Identifying critical aspects of the business with problems or opportunities for improvement.
Targeting those critical areas and designating improvement efforts as Six Sigma Black Belt projects.
Selecting top people to work on the projects--full time.
Ensuring these people have the time, tools, and resources they need to eed.
3
What Types of Problems Should We Target?
High Defect Rates
Low Yields
Excessive Cycle Time
Excessive Machine Down Time
High Maintenance Costs
Bottlenecks
4
What Types of Problems Should We Target?
High Defect Rates
Low Yields
Excessive Cycle Time
Excessive Machine Down Time
High Maintenance Costs
Bottlenecks
Non-Conformance
5
Cost Of Poor Quality (COPQ)
Traditional Quality Costs
(tangible)
Engineering change orders
Lost Opportunity
Hidden Factory
Lost sales
Late delivery
Long cycle times
Expediting costs
Excess inventory
Additional Costs of Poor Quality
(intangible)
(Difficult or impossible to measure)
Lost Customer Loyalty
More Setups
Scrap
Rework
Inspection
Warranty
Rejects
Administration / Disposition
Concessions
Average COPQ approximately 15% of Sales
6
What is Cost of Poor Quality?
In addition to the direct costs associated with finding and fixing defects, “Cost of Poor Quality” also includes:
The hidden cost of failing to meet customer expectations the first time
The hidden opportunity for increased efficiency
The hidden potential for higher profits
The hidden loss in market share
The hidden increase in production cycle time
The hidden labor associated with ordering replacement material
The hidden costs associated with disposing of defects
For panies today, the cost of poor quality is likely to be 25 % of sales. For Seagate, that’s over $1 billion each year.
In almost pany where the COPQ is unknown, the COPQ exceeds the profit margin.
7
The Role of Measurement
Certainty +
Known +
Belief +
Confidence +
Yield +

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