Académique Documents
Professionnel Documents
Culture Documents
1
Who am I?
Dick Kelbaugh; President Route Six Sigma, LLC
BS INDM Purdue 1965
MBA Roosevelt University 1974
US Navy 1965 – 1975: Surface Warfare Officer
GE Appliances 1977 – 2001
Manufacturing Engineer
Manager Range Fabrication
Coordinator GEA Quality Circles
Continuous Process Improvement; Process Mapping; Workout
Certified Master Black Belt
Six Sigma Training Manager
Bloomington IN Plant Six Sigma Start up
Senior Member of ASQ & Certified Quality Engineer
Board of Directors AQP; Region Director Ohio; Indiana; Michigan and
Kentucky; Chairman, ASQ Louisville Section
Probability is 16.7% or odds of 1:6. You only win 4:1 if 7 comes up.
Gamblers will tell you that if you are going to play the
game, you need to first learn the probabilities.
Copyright Route Six Sigma, LLC 2003
4
How Does Rolling the Dice Vary?
7
Chance of rolling “snake eyes”
is pretty small.
6
Rolling a “seven” is pretty high.
5 In fact, with “fair” dice, we can
actually predict that a roll of
4
“seven” will take place about
3 16% (1/6) of the time. An
“eleven” will only be rolled
2 about 5.5% (1/18) of the time.
1 Knowing the probabilities of
rolling a particular number in
0 craps is important to managing
2 3 4 5 6 7 8 9 10 11 12 the bet.
Likewise, effective use of data in business decision making
helps understand how the business process is performing 5
Copyright Route Six Sigma, LLC 2003
Winning Corporate Models
include Six Sigma
Motorola – The “Father” Corporation of Six Sigma
Business future in jeopardy in early 1980’s.
$14 Billion in savings booked since 1987
Kodak - $85 Million savings by early 2000
Honeywell – 6% Productivity improvement and record profit margins
Allied Signal Teams reduced Aircraft Engine design to Certification time
from 42 months to 33 months
$600 Million Annual Savings in 1999
GE – Making the difference for the “Most Admired Company”
$200 Million Investment in 1996 training GE people yields $170M in
savings
6000 projects “At the Customer, For the Customer” in 2001; 18,000 target
for 2002
Appliances focus on OTD span reduction has yielded a 70% reduction
Others include Bombardier; DuPont; Dow Chemical; Federal Express
and American Express
Copyright Route Six Sigma, LLC 2003
6
Six Sigma as a Corporate
Strategy
Slightly less than ½ of American companies use Six Sigma.
About ½ of the Six Sigma using companies are manufacturing.
About 40% consider themselves Service companies.
Slightly over 50% of the Six Sigma using companies employ less
than 5,000 people. About 33% have fewer than 1000
employees.
Only 25% use Six Sigma as the primary Quality Management
System. 84% use it to improve performance.
Approximately 22% of the respondents using Six Sigma were
from outside the USA
* Data from survey conducted globally by DynCorp through Benchnet.com to their global
customers. 492 responses from over 170 companies of every size.
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Amount Spent on Six Sigma
60%
50%
% Gross Sales
40%
30%
20%
10%
0%
2 3 4 5 6
Sigm a Level
Why Do It?
13
What is Six Sigma
Excellent
Poor Process Process
Capability Capability
Very High Very High Very Low Very Low
Probability Probability Probability Probability
of Defects of Defects of Defects of Defects
30.85% 1 691,500
69.15% 2 308,537
93.32% 3 66,807
99.38% 4 6,210
99.977% 5 233
99.99966% 6 3.4
* Defects per million opportunities
28
Why do Six Sigma?
Improved process understanding
Competitive process output quality
Customer satisfaction
Productivity
Profitability
Process
Y f (x)
Improved process understanding
Shifts focal point for control of process from process output to
process inputs.
Helps develop clearer definition of customer related outputs.
The process is the key vehicle for business success.
Develops definitive relationships between inputs and outputs.
Y= F(x)
Output Input
Effect Cause
Dependent Independent
Capability Variation
Transfer Function
Y f (x)
Gas Mileage = f(speed;idle time;engine tune,…)
39
What Makes Six Sigma Different From
Other Quality Improvement Programs
Focus
Active Corporate Leadership and Participation
Visibility
Investment in Resources
Technical Skills
Communications / Expectations
Customer Focus
Bottom Line Contribution
Customer Needs
Specific and Measurable
46
Where Do We Start?
Output
Returns
Service Data and
Field Repairs
Customer Feedback
Dissatisfied Customers
Lost Customers