6.0 Six Sigma and DMAIC

6.0 Six Sigma and DMAIC - Evans Chapters 1 and 2 George...

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MGSC 485 – Business Process Management Moore School of Business University of South Carolina 1 Evans Chapters 1 and 2; George Chapter 1 
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2
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3 Six Sigma can be described as a business  improvement approach that seeks to find and  eliminate causes of defects and errors in  manufacturing and service processes by focusing  on outputs that are critical to customers and a  clear financial return for the organization.  Six  Sigma was  pioneered by Motorola in the mid- pioneered by Motorola in the mid- 1980s and popularized by the success of  1980s and popularized by the success of  General Electric. General Electric.
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The Challenge for Businesses Less variation in your products and services to your customers Defects Cycle Time Price/Value Less Variation gives you: Greater predictability in your process Less waste and rework (lower cost) Products and services that perform better and last longer Happier customers who value you as a supplier 4
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5 Two sigma Two sigma Three sigma Three sigma Four sigma Four sigma Five sigma Five sigma Six sigma Six sigma You get the wrong change 62 times per year You get the wrong change about 13 times per year You get the wrong change about once per year You get the wrong change once every 21.5 years You get the wrong change once every 1471 years You shop 200 times per year. You expect correct change back. Anytime you get incorrect change, it is a defect.
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How Six Sigma Approach Helps Provides a measurable way to track performance and improvements Focuses attention on process management at all organizational levels Improves customer relationships by addressing defects Improves the efficiency and effectiveness of processes by aligning them with customer’s needs Provides a systematic way for introducing defect free processes and products to the market 6
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How Is Six Sigma Different? A “linear” (systematic) methodology for improving processes Focus on Y=f(x) (The output is a function of the inputs) Increased focus on quality as defined by the CUSTOMER Provides a common metric across the organization (sigma level) More rigorous statistical methods Prioritization of improvement projects and alignment of resources to support the companies key strategic initiatives 7
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8 Improved quality of product design Higher perceived value Increased market share Higher prices Increased revenues Improved quality of product conformance Lower manufacturing and service costs Higher profitability
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“LEAN-SIX-SIGMA” Role of Process Excellence in Business Results Alignment of Processes To Customer Needs Use of Appropriate (correct and right levels) Resources to Manage Processes “Effective” Fulfillment Of Customer Needs “Efficient” Fulfillment Of Customer Needs Market Share Profits Process Performance Cost Quality Time Flexibility Return on Assets
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How Else Does Six Sigma Help the Organization?
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