Edson Silveira de

Oliveira
Master Black Belt in Six Sigma
March, 2004
DPC - South America

Six Sigma Program

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

Quien somos: Du Pont ?

Du Pont es una compaa cientfica mundial, conocida por
algunos de sus inventos que revolucionaron al mundo en el
siglo XX y que ofrece productos y soluciones en mercados
como:
Alimentos y Nutricin
Construccin
Textiles
Transporte
Electrnicos
Salud

DPC - South America

Six Sigma Program

Du Pont Performance Coatings

Es el mayor fabricante a nivel mundial en Pinturas Automotrices e
Industriales. Creada en 1999 a partir de la fusin de DuPont
Automotive Finishes y Herberts (Divisin de Pinturas de Hoescht).
Posee operaciones en 36 pases a nivel mundial que suministran
pinturas automotrices e industriales en los 5 continentes.
Divisiones

DPC - South America

Six Sigma Program

Du Pont Performance Coatings

Venezuela
Pinturas Automotrices e Industriales

Mercado Automotriz
(Region Andina)

OEM

DPC - South America

Six Sigma Program

REFINISH

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

What is Six Sigma ?

Six sigma quality means the virtual
elimination of defects from every
process, product and transaction in
our company
It is a key part of how we will do
business well into the next century...
However, the real impact of Six
Sigma is that it is a business
management process and not just a
quality metric.

DPC - South America

Six Sigma Program

Chad Holliday
Chairman & CEO
DuPont Company
February 26, 1999

Six Sigma is a ...

Vision
Practically flawless execution

Philosophy
The way we do work.

Business Improvement & Development

Methodology
Touches all facets of the business
Measurable financial impact

Performance Metric / Goal

Performance measure
Yardstick
DPC - South America

Six Sigma Program

Benchmarking Results
IRS tax advice
(phone in)

1,000,000
Doctors prescription writing

100,000

restaurant bills

10,000

airline baggage handling

1,000

DuPont
average

100

DuPont safety
world class
performance

10
1
2

Sigma Scale of Measure

DPC - South America

Six Sigma Program

Evolution of Six Sigma in the

USA
Six Sigma was originally developed for parts

Air Products
Honeywell
Johnson Controls
Maytag
Praxair
Ford
Johnson & Johnson
DuPont
Dow Chemical

manufacturing, to provide a quality-driven

competitive advantage

funded full
development
of
methodology

1985

ABB
Motorola
TI
IBM
DEC
Kodak

1992

current
benchmark

GE
AlliedSignal

Siemens
Compaq
Seagate
PACCAR
Toshiba

Nokia
Sony
Navistar
Whirlpool
Bombardier
GenCorp
Siebe Foxboro
Lockheed Martin
John Deere

and is now seen as a

key to growth in profits
& share price.

1995

2000

then was expanded beyond manufacturing

DPC - South America

Six Sigma Program

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

Valores de Seis Sigma

1- Enfoque en el Cliente
La nica garanta para nuestro negocio es un cliente satisfecho

2- El Cliente define la Calidad

Darle al cliente lo que quiere, ni ms ni menos.

3- Medicin es la Clave
No sabemos lo que no medimos.

4- Actuar con pruebas

Tomar decisiones en base a data

5- La Variabilidad es el Enemigo
Bien la primera vez = Menor costo

6- Aumento del Conocimiento Colectivo

Personas con conocimientos y herramientas para la mejora continua
DPC - South America

Six Sigma Program

Satisfying the Stakeholders

Who are they and what do they want ?
Customers maximum value in offering relative to cost.
Employees wages, benefits, job security.
Shareholders profit dividends and share price
appreciation.
The only source of a paycheck is the customer.
The customer is the common denominator and the key to
satisfying the needs of all of our stakeholders !
DPC - South America

Six Sigma Program

Purpose
Stakeholders:
Customer
- can be internal, external, or both !
Employees
Shareholders

ID Customer Needs
ask & listen

Address Customer Needs

improve or develop the
process through SIX SIGMA
Achieve Customer Satisfaction
Gain Competitive Advantage
increase revenue
&/or reduce cost
End Result: Sustainable Profit
All stakeholders needs will be met when the customers are satisfied.
DPC - South America

Six Sigma Program

Unleashing Potential with Six Sigma

Risk

Risk vs Knowledge

Art

chaos
firefighting
waste
fear
change averse

Move along curve using 6

enhance process knowledge

exploit to reduce defects and/or
create new offerings

Science

data
discipline
good decisions
confidence
innovative

Knowledge
DPC - South America

Six Sigma Program

Existen buenas oportunidades de Reduccin de Costos!!!

Costos de Baja Calidad

DPC - South America

Sigma

Costos

<10% de las Ventas

10-15% de las Ventas
15-20% de las Ventas
20-30% de las Ventas
30-40% de las Ventas

Six Sigma Program

6 sigma
5 sigma
4 sigma
3 sigma
2 sigma

Value of Six Sigma

Improvement Projects Example
G1 sales price
profit

total cost of
goods sold

price erosion
profit
profit

cost of poor
quality

cost of poor
quality

theoretical
cost

theoretical
cost

without 6
DPC - South America

Six Sigma Program

healthy
business

COPQ

Theoretical
theoretical
cost

with 6
1

Value of Six Sigma

Development Projects Example
G1 sales price
profit

price erosion
profit

profit

cost of poor
quality

total cost of
goods sold

DPC - South America

Six Sigma Program

healthy
business

Develop the offering so

there is no COPQ

profit

theoretical
cost

theoretical
cost

without 6

with 6

theoretical
cost

Value of Six Sigma

Top Line Growth Example

ow
r
g

total market
nonstrategic
balance of
market

market
share

nonstrategic
potential
strategic

potential
market
share

new share

market
share

market
share

Six Sigma Program

nonstrategic
potential
strategic
new share

with 6
DPC - South America

th

nonstrategic

potential
market
share

market
share

market
share

with 6

without 6
2

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

Which Business Function Needs It?

HR

IT
supply chain

R&D

manufacturing

engineering

admin
sales &
marketing

DPC - South America

QA

mergers &
acquisitions

All facets of the business !

Every task is a process.
Every process has at least one customer and one output.
Six Sigma focuses on improving the outputs !
-

Six Sigma Program

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

The Six Sigma Process High Level

1. xxxxxxxxx
2. xxxxxxxxx
3. xxxxxxxxx
4. xxxxxxxxx
5. xxxxxxxxx
6. xxxxxxxxx

business strategy

ideas
internal / external

evergreen
project list

Six Sigma Projects

1. xxxxxxxxxxxxx
2. xxxxxxxxxxxxx
3. xxxxxxxxxxxxx

project selection

translation

realize benefit
DPC - South America

Six Sigma Program

project validation

DMAIC &
DMADV

Six Sigma teams

Projects Definition
CTX Flowdown
Y
y

CTS
y

CTQ
y

y
Y

CTP

MEASURE
ACTUAL PERFORMANCE
GOAL
BENCHMARKING

DPC - South America

Six Sigma Program

Projects

Six Sigma Process Project Level

Business
Solution

Business
Problem
Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution

Within a Six Sigma Project we

Translate a business challenge to a defect elimination, variability reduction
problem, or development need
Formulate this problem as a statistical problem
Solve the statistical problem using tools and techniques taught in this course
(or suggested by your MBB)
Convert the statistical learning into business benefits and actions.
Ensure gains are sustained long after project completion.
DPC - South America

Six Sigma Program

Project Types & Methodologies

Baseline Projects

Design Projects
Improvement Projects

DMAIC
Define
Measure
Analyze
Improve
Control

DMADV (DfSS)

Methodology Spectrum

Define
Measure
Analyze
Design
Verify

Top Line Growth Projects

Click link for more information on project types

DPC - South America

Six Sigma Program

DMAIC Phases & Deliverables

D1:
D2:
D3:

Project CTQs
Project Charter
Process Map

M4:
M5:
M6:
M7:
M8:
M9:

C15: Sustained Solution

C16: Project Documentation
C17: Translation Opportunities

Project Y
Performance Stds
Data Collection Plan
Project Y Data
Process Capability
Improvement Goal

A10: Prioritized List of Xs

A11: List of Vital Few Xs
A12: Financial Opportunity
I13: Proposed Solution
I14: Piloted Solution

DPC - South America

Six Sigma Program

DMADV Phases & Deliverables

DPC - South America

Six Sigma Program

Design for Six Sigma is...

DfSS is the set of Six Sigma

philosophies, principles, methods, and
tools applied to development work.
Typically DMADV is associated with
DfSS.

DPC - South America

Six Sigma Program

It All Starts with the Customer

Xs
(process)
Inputs

Supplier(s)

Xs
(inputs)

Output(s)

Ys
Process

Customer(s)
CTQs

DPC - South America

Six Sigma works from RIGHT to LEFT !

ID customer and find out whats critical for them (CTQ)
Define what process output(s) (Ys) most closely relate to the CTQ
Determine what process controls and inputs (Xs) most affect the output
Identify modes of operation in the Xs to dramatically improve Y and delight the
customer
Final solution = optimal arrangement and control of the Xs
Old school solution = Inspect Y and throw out the bad!

1994 Six Sigma Academy

Six Sigma Program

Dynamics of Execution Strategy

The Funnel Effect
Process Map

30 to 50 Inputs (Xs)

C&E Matrix & FMEA

Multi-Vari Studies

10 to 15 Xs

Hypothesis Testing

8 to 10 Xs

Screening DOEs

4 to 8 Xs

DOEs / Trial Exps

3 to 6
Vital Xs

Control Plan
DPC - South America

Six Sigma Program

Optimized Process
3

Personal Six Sigma

(DPC South Amrica)

Master Black Belt

(South America)
(1)

DPC - South America

Six Sigma Program

Champion Deployment
(South America)
(1)

Black Belts
(Venezuela)
(2)

Black Belts
(Brazil)
(4)

Green Belts
(Venezuela)
(9)

Green Belts
(Brasil)
(100)
3

Six Sigma Methodology: Summary

Disciplined, Data-based approach
Focuses on the customer and critical outputs
Works upstream to control process Xs instead of
relying on inspection and testing
Attacks variation, defects and hidden costs / wastes
Directly affects quality, cost, cycle time and financial
results
Ensures a predictable operation

DPC - South America

Six Sigma Program

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

Ideal First Six Sigma Project

Historical and current data accessible
Good fit with Six Sigma methodology & tools
Strong support/sponsorship in place
Clearly linked to real business need
Part of your ongoing work

Not capital intensive

Achievable in 4 - 5 months for improvement; 6-10
months for development (i.e. turnover to process
owner)
Clearly quantifiable savings or revenue enhancement,
with minimum risk to external factors
High probability of success
DPC - South America

Six Sigma Program

Baseline Projects
Methodology

DMAIC

Process

Existing

Approach

Broad or Focused - situational

1 or more Ys - situational

Improvement; Defect Identification & Reduction

Primarily Special Cause

2 to 4 Months

Stable Process, Quick Hit Imps, & Child 6 Project Charters

Varied (none to $MMs)

CTQs Ys
Focus
Variation
Duration
Output
Benefit
DPC - South America

Six Sigma Program

Improvement Projects
Methodology

DMAIC

Process

Existing

Approach

Focused

1-2 Ys

Improvement / Defect Reduction

Special and Common Cause

4 to 6+ Months

Improved Processes with Enhanced Capability

> $175K PTOI (Pre-Tax Operating Income)

CTQs Ys
Focus
Variation
Duration
Output
Benefit
DPC - South America

Six Sigma Program

Examples of Improvement Projects

Cycle Time Reduction Projects
Reduce the time required to complete manufacturing
processes or transactional activities. Example: Return empty
railcars to supplier faster to reduce railcar storage
(demurrage) charges.

Defect Reduction Projects

Reduce or eliminate defects in quality. Example: Eliminate
defects in pigment color.

Consumption Reduction Projects

Reduce or optimize the consumption of costly raw material,
contract service or energy. Example: Reduce amount of
Lime required for neutralization.
DPC - South America

Six Sigma Program

Development Projects
Methodology

DMADV or DMAIC (DMADV more typical)

Process

New or Redesigned

Approach

Broad and Systemic

Many Ys

Design or Re-Design

Primarily Common Cause

6-12 Months (capital developments are longer)

6 Process, by Design

Typically Large & Often Soft

CTQs Ys
Focus
Variation
Duration
Output
Benefit
DPC - South America

Six Sigma Program

Examples of Development Projects

Cycle Time Reduction
Reduce the time required to complete manufacturing processes or
transactional activities. Example: Design a new bidding process
for reverse auctions that reduces time to completion by 3 days

Defect Reduction Projects

Reduce or eliminate defects in quality. Example: Develop a new
training program for operators that results in a reduction in poor
quality polymer

Demand Creation Projects

Develop new marketing programs to create demand for an
existing product. Example: Work with customers and partners to
create new marketing plan for fire extinguishent resulting in
significant new sales

DPC - South America

Six Sigma Program

Definition of Top Line Growth

The application of 6 Sigma to compel
customers to buy more, resulting in
increased value for DuPont and the
Customers. (official 6/02)
TLG is a specific result area focused on
profitably growing revenue.
Either DMAIC or DMADV may be used.
DPC - South America

Six Sigma Program

Top Line Growth Projects

Methodology

DMAIC or DMADV

Process

New or Redesigned

Approach

Either Narrow and Focused or Broad and Systemic

CTQs Ys

One Y or Many Ys

Focus

Improvement, Design, or Re-Design

Variation

Special Cause and/or Common Cause

Duration

4 to 6+ for Improvement type TLG; 6+ for Development

Output

6 Process, by either Improvement or Design

Benefit

High $ Value and Hard $;

SBU Specific but typically > $500M

DPC - South America

Six Sigma Program

Examples of TLG Projects

Demand Creation Projects
Develop new marketing programs to create demand for
an existing product. Example: Work with customers and
partners to create new marketing plan for fire
extinguishent resulting in significant new sales

Defect Reduction Projects

Reduce or eliminate defects in quality. Example:
Eliminate defects in pigment quality

Platform Development Projects

Develop an extension or upgrade to an existing process
or product to create a new product Example: ???
DPC - South America

Six Sigma Program

TLG Focus Areas

PTOI
TLG
Product Development
Application Development
New Market Development
At the Customer, For the Customer

Deliver TLG
Hard, soft, & one-time PTOI
DPC - South America

Six Sigma Program

TLG or Effectiveness
Quality Improvement
Service Improvement
Pricing Process Improvement
Selling Effectiveness
Advertising/Communication
Improvement
Branding Effectiveness
Channel Effectiveness
Sales Lead Management
Could deliver cost savings or TLG
Hard, soft, & one-time PTOI
4

Time for a Wrap-up

Can you
Describe what Six Sigma is in terms of its:
purpose and value ?
strategy and focus ?
methodology ?

Describe how DMAIC or DMADV works to

translate customer needs into high-performing
processes ?

DPC - South America

Six Sigma Program

Contenido
Quien Somos: Du Pont..DuPont Performance Coatings
Que es Six Sigma ?
Por Que Decidimos Implementarlo ? Valores ?
Cmo lo aplicamos y donde?
Cmo funciona?
En que estamos trabajando en Du Pont?
Ejemplo...
DPC - South America

Six Sigma Program

Proyecto Six Sigma

MEJORAS EN EL SERVICIO DE
ENTREGAS A TIEMPO DE
PRODUCTOS OEM
Green Belt: Carlos A. Calabrese S.
Status del Proyecto :Medicin / Anlisis / Experimentacin
AGOSTO 2003

DPC - South America

Six Sigma Program

Resumen del Proyecto

Descripcin del Proyecto:
Nuestra participacin en el Mercado Andino es de
un 75%, lo que nos coloca como un proveedor
estratgico en la regin..
En base a esto debemos garantizar en todo
momento un flujo contnuo de los materiales que
sn utilizados en el proceso de pintura de los
vehculos.

Objetivo y Alcance del Proyecto:

Situacin y Desempeo Actual:

sigma:
Y= 3,00 sigma (Short Term)

Meta del Proyecto:

sigma:
Y= 4,5 sigma (ST)

Incrementar el nivel de servicio a clientes OEM

Andinos.

Variables CTS (Ys):

% Servicio OEM
Cambios de Produccin por Fallas de Suministro.
Cambios de Produccin por Fallas de Calidad en
los Productos.

DPC - South America

Six Sigma Program

Beneficios:
Mantener e Incrementar Participacin en los
clientes OEM.
Garantizar el flujo contnuo del proceso de
pintura de las ensambladoras.
Fabricar los productos que realmente
requieren reposicin de inventario en la lnea.
Garantizar 100% de satisfaccin en Servicio
de Materiales Entregados a Tiempo.

Fase Diseo de Experimento

ESTRATEGIA:
Se implementar un Sistema de Reposicin de Inventario KAMBAN bajo la modalidad de
Teora de Restricciones, controlado por un Semforo:

Inventario OK
en almacn

DPC - South America

Six Sigma Program

Produccin y
Reposicin

Stock de
Seguridad

Fase Diseo de Experimento

Inventario 0

DPC - South America

Six Sigma Program

Consumo Zona
Amarilla

Stock de
Seguridad

Fase Diseo de Experimento

Inventario 0

DPC - South America

Six Sigma Program

Consumo Zona
Amarilla

Stock de
Seguridad

Fase Diseo de Experimento

Inventario OK
en almacn

DPC - South America

Six Sigma Program

Produccin y
Reposicin

Stock de
Seguridad

Fase Resultados
ACTUAL
Liberacin de
Materiales
Ensambladoras
rojo
azul

PROPUESTO

DPC - South America

Six Sigma Program

Fase Conclusion
Hallazgos:
Variacin entre las Cantidades de Materiales Solicitados y los realmente Consumidos.
Solicitudes Adicionales y Adelantos de Materiales frecuentes.
Retraso por parte del Cliente en las Entregas de las Liberaciones.

Mejora Planteada:
Implementacin de un Sistema de reposicin de Inventarios bajo el esquema KAMBAN
para el Suministro de Materiales a la Ensambladora.

Beneficios:
100% de Servicio en Entregas a Tiempo y Completo (100% Satisfaccin del Cliente)

Mantener e Incrementar el % de Participacin de Nuestros Clientes OEM

El Suministro depender de la demanda real (Consumo) de la lnea.
Inventarios ptimos ajustados a las necesidades reales (Reduccin de Inventario).
Optimizacin de los Recursos de Manufactura (Facilities & Personal) ya que el sistema de
planificacin de la produccin estar basado en las necesidades reales.
DPC - South America

Six Sigma Program