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SixSigma

ByDanielWuFordLioHoMotorCompany1OutlineQualitylevelWhatisSixsigma?WhyweneedSixsigma?DevelopmentandDeploymentstrategyHowSixsigmamergesintoourdailybusiness?2Overview-FourQualityGurusHistoricallycompanieshavefocusedonqualityissuesforcustomersatisfactionPriortosixsigmatherewerefourkeyqualitygurusthatmostcompanies’qualityprogramsfollowedDemingJuranCrosbyTaguchi3DemingDemingtaught:ImportanceofunderstandingvariationinworkprocessesRoleofmanagementinleadingforqualityApplicationofstatisticsPlan-Do-Check-Act4Deming’sContributiontoProfitabilityEXTERNALINTERNALCUSTOMERSATISFACTIONMARKETSHAREPROFITPRODUCTIVITYQUALITY-Betterproducts&services-Improvedprocesses-CompetewithvaluePRICE-CompetewithPrice-Decreasedcycletime-Eliminateset-uptimesCOST-OpportunityforprofitPRODUCTQUALITYPROCESSQUALITY-Reducerework-Eliminatein-processinspection-Reducescrap-Increaseproductlife-EliminateincomingtestingPlanDoCheckAct5Juran

Jurantaught:BreakthroughperformanceParetoeffectImportanceofmanagementprinciplesQualitybydesignandplanning6Juran’sContributionPlanningCostofPoorQuality(Percentofoperatingcosts)ProductionBeginsOriginalzoneofprocesscontrolNewzoneofprocesscontrol020400ControlTimeImprovementLessonsLearnedSporadicspikefromobservedproblemChronicWaste(anopportunityforimprovement)ControlSpecialcausevariationCommoncausevariation7CrosbyCrosbytaught:CustomerrequirementisperformancestandardQualitymaturityisajourneyPreventiveactionasbasicapproach8TaguchiTaguchitaught:CostofpoorqualityislosstosocietyasawholeRobustqualityisdesignedforconsistentproductionDesigncontrolismoreimportantthanproductioncontrol9Taguchi’sContributionLowerSpecificationLimitUpperSpecificationLimitNominalValueRegionofCustomerComplaintsRegionofCustomerComplaintsRegionofQuestionablePerformanceRegionofQuestionablePerformanceRegionofSpecifiedPerformanceMeanLowerControlLimitUpperControlLimitRegionofDesiredPerformanceCost10WhatAretheLimitstoImprovement?2Sigma3Sigma4Sigma5Sigma6SigmaBasicQualityToolsStatisticalToolsDesignforSixSigma(DFSS)BasicToolsWallDesignWallCleanSheet11ChallengeinthemillenniumQuestionconfrontingbusinessleadersandmanagers:Itisnot:“Howdowesucceed?”It’s:“Howdowestaysuccessfully?”12Change“Itisnotthestrongestthatsurvive,northefittest,butthosemostabletoadapttochange.”CharlesDarwinTheOriginofSpecies“Peopledonotresistchange,peopleresistbeingchanged.”Beckhard13ChallengeResistance-theuniversalreactiontochange.TechnicalresistancePoliticalresistanceOrganizationalresistanceIndividualresistance14SixSigma?SixSigmaisnotabusinessfadtiedtoasinglemethodorstrategy,butratheraflexiblesystemforimprovedbusinessleadershipandperformance.Itisnotabouttheory,it’saboutaction.15Passion+Execution=FastandLastingResultsSixSigmaFocusDelightingthecustomerthroughflawlessexecutionRapidbreakthroughimprovementAdvancedbreakthroughtoolsthatworkPositiveanddeepculturechangeRealfinancialresultsthatimpactthebottomlineSigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error(DistributionShifted±±1.5s)2308,537366,80746,210523363.4sPPMProcessCapabilityDefectsperMillionOpp.SixSigmacorrespondstopartsperbillionifprocessiscenteredSixSigma-Goal3Sigma6Sigma5Sigma4Sigma93.32%99.379%99.9767%99.99966%HistoricalCurrentIntermediateLong-termSigmaLong-TermYieldStandardSixSigma-PerformanceTarget....ToProduceImprovedRolledThroughputYield,DefectsPerUnit,&DefectsPerMillionOpportunityReducedCostofPoorQuality(COPQ)ImprovedCapacityandProductivityReducedVariationInOurProcesses/Products$$’sAProblemSolvingMethodologyCharacterizeOptimizeBreakthroughUSLTLSLUSLTLSLTUSLLSLUSL’LSL’TheStrategyCustomerFocused-BothInternally&ExternallyWhichBusinessFunctionNeedsIt?Aslongasthereisaprocessthatproducesanoutputwhetheritisamanufacturedproduct,data,aninvoice,etc...wecanapplytheSixSigmaBreakthroughStrategy.Fortheseprocessestoperformtoacustomerstandardtheyrequirecorrectinputs!!!6SigmaMethodsMFG..DESIGNSERVICEENGMAINT.ADMIN.QAPURCH.Dataisderivedfromobjects,situations,orphenomenonintheformofmeasurements.Dataisusedtoclassify,describe,improve,orcontrolobjects,situations,orphenomenon.1.Weonlyuseexperience,notdata.2.Wecollectdata,butjustlookatthenumbers.3.Wegroupthedatasoastoformchartsandgraphs.4.Weusecensusdatawithdescriptivestatistics.5.Weusesampledatawithdescriptivestatistics.6.Weusesampledatawithinferentialstatistics.LevelsofAnalysis:Whatlevelarewe??TheFoundationoftheSixSigmaToolsTheRoleofSixSigmaSixsigmaisthebestmeanstorealizethephilosophy,values,andgoalsassociatedwithyourbusinessinitiatives.RegionBA6LinkingPinsBusinessAreaInitiativesItunifiestheinitiativesandprovidesacommonlanguagewhichallpeoplecanunderstandandspeak.23HowDoWeImproveCapabilityOurOutputs(Y’’s)aredeterminedbyourInputs(X’’s).IfweknowenoughaboutourX’’swecanIfwedon’tknowmuchaboutourX’s,thenwehavetoresorttoinspectionandtest(nonvalueaddedoperations).ByknowingandcontrollingtheX’’s,wereducethevariabilityinY,whichdecreasethenumberofdefects,improvesRTY,cycletime,etc.Wecanalsoeliminateorreduceinspection,test,andrework.TheSourcesofSixSigmaQuality……bycontrolling...bydesigning...ContinuouslyReduceProcessVariabilityTighterUpper&LowerLimitsTargetvaluesLowerLimits1.Designbesttargetforperformance2.Designsystemvaluestoreducevariabilityofperformance?----------------------?----------------------?----------------------AttractiveImplicitWasteExpressedQ1.Ifprovidedwouldyoube......indifferent?...happy?Q2.Ifnotprovided......indifferent?...unhappy?Q3.Ifnotprovided......indifferent?...unhappy??----------------------?----------------------?----------------------?----------------------?----------------------?----------------------?----------------------?----------------------?----------------------bylistening......towhatthecustomersayshe/shewants...performancetoleranttorealworld..25DevelopingandReinforcingValuesCycleofRefinementVALUESBEHAVIORATTITUDESCULTURE26TheRoleofLeadershipNewQuestionsNewValuesNewMeasuresLeadership(Humility/Listening)NewBehaviors27LeadershipplaystheroleValuesareafunctionofbehaviorsMeasuringtherightthingsiskeyChangemustbesupportedanddrivenfromthetopWillisakeyelementforasuccessfuldeployment28Whyarewehere?“ThereisarecognitionthatleadershipneedstobeakeycomponentofConsumerDriven6-Sigmawithinanyorganizationtryingtoundertake6-Sigmadeployment.”MikelHarry/RichardSchroeder29What’sInItForMe?“…thebeststatisticalanalysisintheworldisuselessifthosehandlingtheinformationareparalyzedbycorporatefear.WhendatasuggestsonedirecMikelHarry/RichardSchroeder30DefineFutureStateLeadershipinSixSigmaOrientationPresentStateFutureStatePTSLeadershipSkillsBusinessBasicsProjectManagementPersonalDevelopmentPTSPTSPTSPTSDEFINEMEASUREANALYZEIMPROVECONTROLDefinePlanManageCloseTeamManagementTeamDevelopmentMeetingFacilitationTeamManagementDevelopTransitionPlanChangeManagementAnalyzePresentState31SixsigmastructureStrategy—Consumer-driven,focusonproduct,process,andservice.Organization—All-functioninvolvementandPersonalDevelopment.Policy—Company-wideengagement,HR,IT,andFinancesupport.Management——Project,Team,andChangeManagement.32DeploymentStructureMasterBlackBelts(Full-Time)ProjectChampions(Part-Time)BlackBelts(Full-Time)GreenBelts(Part-Time)ExecutiveLeadership(Part-Time)DeploymentDirectors(Full/Part-Time)336sProjectChampions6sDeploymentChampion(s)SMBusinessUnitLeaderCEOCorporate6sSeniorChampionSMHRDeploymentChampionSMITDeploymentChampionSMFinanceDeploymentChampionSMPRDeploymentChampionSMBusinessOperationsLeaders6sHRManager6sFinancialManagerGreenBeltsSM6sITManagerTrainingDeploymentChampionSM6sMasterBlackBeltsSM6sComm.Manager6sTrainingManager6sProjectChampionsSM6sBlackBeltsSM6sDeploymentInfrastructure6sExecutiveCouncilSixSigmaDeploymentRoles34PhaseI—CascadingEstablishdeploymentstructureExecutive,topmanagement,championawarenesstrainingBlackBelttrainingToolsimplementationtrainingLeadershiptraining35PhaseII——AcceleratedevelopmentDeploymentstructureimplementationanddispositionineachfunction.EverysalaryisGB.Begintoimplantintocurrentqualitysystem.ISO14000andQS9000integration.36PhaseIII—IntegrationImplantsixsigmamethodologyinotherqualitytoolsPartnershipwithotherqualitysystem.Sixsigmatrainingtosupplierandfranchise.Sixsigmaindailybusiness.DFSS(DesignforSixSigma).BB/MBBinleadershipposition.37ItisAllaboutValueTheCustomerValuePropositionDefinesBusinessStrategyCustomerschoosetobuyfromusbecause...Investorsentrusttheirmoneytousbecause...Employeeschoosetoworkforusbecause...38ThreeCustomerValuePropositionStrategies…ProductdifferentiationOperationalexceCustomerpartnershipsCompetitiveadvantage!39ConsCustomers––higherexpectationDefeProductServiceProducer-planningforchangestomeetcustomerrequirements.Strategic:changingthewayeverylevelofabusinessismanagedonadailybasis.Tactical:sixsigmamethodologyandcross-functional.Cultural:outofboxthinking,everyoneinvolvedandcommonlanguageisdata.Customerswanttopurchasehighqualityproductsandservicesatthelowestcost,justascompanieswanttoproducehighqualitygoodsandservicesatthelowestpossiblecost.40MaximizingCustomerValueDerivingvaluefromtheNeed-DoInteractionModelNeedDoCustomthroughtheNeed-Dointeraction.CustomerSupplierInteraction41VaPartialKanoAnalysisDegreeofAchievementCustomerSatisfactionSurprise:“ErgonomicallyDelighting””Desire:““OperateQuietly””Necessities:“Doesn’’tFailMechanically”“Doesn’’tFailElectrically”“IsDurable”BasicQualityPerformanceQualityExcitementQuality42BusinessinitiativesDeliveryCostCustomerrequirementsQualityWhenwesaysomethingisaCTQ,canwedescribeitfromCustomer’sperspective?Ourperspective?Canwedemonstratetherelationship?PRODUCTQUALITYSHIPMENTACCURACYCONDITIONFILLRATE/ON-TIMEDELIVERYORDERSERVICE/INFORMATIONPROFITABLECUSTOMERGROWTHCustomerSatisfaction43BuildingtherelationshipInternalOthersExternalSegmentDatabasesfromVOCDataextraction&transformationDepartmentaldatamartIntelligencereportsforprojectsCorrelationanalysis44DatatransformationWhatshouldwedotomakeiteasilyaccessibleasinformationtomanagersandsubordinates?Whatsortofanalysiscanweconduct?Howdoesthatanalysisaddvalue?Howcanwefurtherextendthevalueofourdataanalysis?45OpportunityandalternativeFocusonthebestopportunitiesStratifytodefinetargetarenasDefinerealoptionsBuildaportfolioofopportunitiestopursueMeetcustomerrequirementsbyrunningthebusinessaswedo?Orneedtochangetogetprodigiousimprovement?Sixsigma?46Consumer-drivensixsigmaRequiresconsumerstrategy,productstrategy,andinfrastructurestrategyandlinktheminextricablytogether.Conductsbusinessthroughtheconsumers’eyesandsharesunfilteredinsightwithintheenterprise.Createsacompellingconsumerexperienceandinnovatesservicesaswellasproducts.Addsvalueintheeyesoftheconsumer.Integratestheproductandinformation.47TransformingCustomerFeedbackIntoSAQandthenSixsigmaProjectsSingleAgendaforQualityandCustomerSatisfactionTop25issuesDevelopActionableProjectsIdentifyGenericCriticalX’’sHighMileageDFSSNewProductContentMeasureandMonitorCriticalX’’sIdentifyCriticalX’sOutofSpecificationDevelopActiontoRestoreCriticalX’sMBBActionVRT(Processowner)BlackBeltProjectLeaderFPS&PlantOperationsQOSDMAICGreenBeltProjects48ConsumerDriven6-Sigmaoffersastructuredproblemsolvingmethodologytoachievebreak-throughimprovementsbysystematicallyidentifyingrootcausesandeliminatingthemusinganintegratedsetofstatisticaltools,problemsolvingtechniques,data,anddisciplines.SixSigmainprocessimprovementImproveControlDefineMeasureAnalyzeModifyDesign?NoYesRedesign49SixSigmaMindsetDefineMeasureAnalyzeImproveControlWhatdoesthecustomerwant?Whatisthedefectwewanttoreduce?Arewesurewecantrustthedata?Whatdoesthedatatellus?Whatarethemaininfluencingfactors?Doesthedataconfirmthis?Whatarewegoingtochange?Isimprovementtangibleandoptimal?Howarewegoingtomaintaintheimprovementforever?Howtocascadefeedbacktosystem?JonathanHolbrook6SigmaDeployment50DEFINEPROBLEM/ISSUEStrategyPreventdefect(s)Eliminatedefect(s)CHARACTERIZEDEFINEOPTIMIZEVERIFYMEASUREANALYZEIMPROVECONTROLBlackbeltprojecttoimprovemfg.capabilityMcesscannotprovidesufficientimprovement.Needreducedproductsensitivitytomfg.noise.TheOverallPerspective:DMAICandDCOV51BreakthroughImprovement5SworkplaceVisualFactoryStandardizedWorkDMAICQualityToolsSixSigmaMethodologyPhaseWorldclassqualityWecan’tsustainavisualfactorywithout5SWecan’tsustainstandardizedworkwithoutvisualfactoryWecan’tsustainsixsigmawithoutstandardizedworkQualitytoolistheengine,SixsigmaisTurbo-chargeDFSSWecan’tmeetsixsigmawithoutsixsigmadiscipline52Is6-Sigmaastrategicprocessforyourbusinessorisitjustoneofseveral?Is6-Sigmaameanstotransformingourcultureorjusttool?Dowewanttouse6-Sigmainthesamedisciplinedmannerasweuseourfinancialo

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