Quality, Reliability, and Maintenance of Six Sigma Metrics - Research Paper Example

Six Sigma Methodology 1.0 Aim The aim of this exercise is to implement a six sigma initiative in the company where mobile phone design and manufacture is taken up. 2.0 Roadmap Six Sigma implementation follows the steps listed below1: 1. Process study. This would involve the study of the existing processes and the results that the existing processes are producing. This would let us know where we are and then would enable us to identify where we need to move to. 2. For the design section of the unit producing mobile phones, we would employ DMADV (Define, Measure, Analyze, Design and Verify) methodology to implement the Six Sigma process. 3. For the manufacturing end where the quality and defect component needs to be monitored on production processes employed, we will be using the DMAIC (Define, Measure, Analyze, Improve, Control) process improvement methodology for initiating Six Sigma. These are the major process steps that we would take to reach our destination of improved processes for reduced defects. Before we commence the quality initiative for six sigma we need to put in place some of the basic requirements2. These are: 1. Train personnel towards green belts, black belts and the Master black belt to become the change agents in the company and to spearhead implementation of the six sigma initiative. This should be at the rate of one black belt and two green belts for every 140 employees, ideally. Similarly for every 800 employees it is advisable to have a Master Black Belt who would coordinate the whole project and we should be able to nominate a champion to take things forward. 2. Tolerance of variation needs to be established. During the course of the process study one of the important measures that need to be achieved would be to identify to what extent errors during the implementation of the six sigma could be tolerated. Variations could be in multiple areas of operation, in design, by design, customer acceptance, etc., 3. Slack in the availability of the human resources. It is very difficult to free a person in its entirety for the initiative. We need to look at allocating one day per week of every person. Working out the total time spent in terms FTE (Full-Time Equivalents) would help us in judging whether to have full time change agents in the company and to also decide how many of them we will adopt for this purpose. 4. We need to identify the technical expertise that we will be relying in during the course of the implementation. We will require an expert statistical analyzer who would help us in applying varied statistical principles and help in determining the best possible alternatives during the production process. The principle here is to ensure that the process is as simple as possible. (KISS – Keep It Simple, Stupid) and every one is able to appreciate it. We would also require to master some of the design and would possible involve ourselves in Design Of Experiments, adding valuable data to our repository. 5. Set realistic time lines and realistic targets at every milestone. 3.0 Training the Change Agents In order to have an effective six sigma implementation, the right kind of people should be nominated to the implementation process. Most often, it is the best people that a company has, who needs to be on it. Identifying the change agents should ideally start from the lower level, the Green Belts. They should be put through the Green Belt training and they should be ranked and the initiation of the implementation process is taken up. Once this is done, the understanding of the technicalities involved is also rated among the green belts and they are further identified for the black belt jobs. Black belts are trained further and rated for one senior person to spear head the entire process by being the Master Black Belt and the Champion for the entire project. A hierarchical structure aimed at creating a separate six sigma organization is made starting at the ground level with green belts moving up to the black and then the master black belts. 4.0 Execution Methodology Since we need to implement both the design and the production unit of the mobiles under Six Sigma, we would use the DMADV or the DFSS for design process improvement. While the DMAIC for the production would help in implementing leaner and meaner manufacturing process. The table below indicates the process variation and implementation practice between the two and the nature of work involved in them. -------------------------------------------------- Practical Translation ---------------------------------------- DMAIC                                                                                                         DMADV (Improvement)                                                                                   (Design/Innovation) Define Project Goals? Business Case? Scope? Customers/ Stakeholders? As-is Process? What Are Key Requirements? Removing or reducing a problem in an existing process or work-product (e.g. defects, delays) Reducing costs of poor quality (e.g. rework, scrap, waste) Returning savings to the bottom line Defined and bounded by the problem (Focused) Those involved in or impacted by the problem. Already familiar players Studied to reveal: clues about the problem, measurement points, and things not to break in the course of improvement "Must-be" and "satisfier" requirements – to be sure the solution improves the primary Y while maintaining or improving performance across the board The curiosity brought to VOC data-gathering is that of a detective looking for what's important, but also clues about the problem,  its implications and its location(s). Identifying and capitalizing on an opportunity  (i.e. a new or next-generation product or service) Identifying and capitalizing on an opportunity (i.e. a new or next-generation product or service) Increasing business net value (sales, profitability, market share). Bringing increased revenue to the top line Defined by potential opportunity (Broad at the outset) Internal or external potential "markets" connected with the opportunity. Could be new players Studied to reveal: compensatory behavior,  lead user "aha's," and future trends "Must-be" and "Satisfiers" as a base, but special attention toward identifying latent requirements VOC data-gathering more widely exploratory.  Problems are interesting but, additionally, quirks in how things are done and future trends are pursued for their value in uncovering latent requirements and robust  design clues. It is not just VOC but also innovation. Measure What are the most important measures and their drivers? What measures to collect? (where, how much, etc.) Y-to-X, prioritization, operational definitions and measurement systems analysis (MSA)  are useful. Segmentation based on the location of the problem and its symptoms Data collected, using the as-is process as the source of facts, to shed light on the root cause drivers (for this project's focused problem or problems) Y-to-x, prioritization, operational definitions and measurement systems analysis (MSA) are useful. Segmentation based on potential locations of the opportunity Additional measures used to model "prospective value" (e.g. conjoint analysis) Data collected, with or without an as-is process, to characterize and prioritize requirements (including prospective latent requirements) As appropriate, data collected or developed through modeling to shed light on "design" drivers Analyze What has the team learned about current performance/- capability? What can the team learn from patterns and statistical contrasts in the data? Can the team verify the root cause or driving impacts of the x's on the Ys? This will apply directly, as there is a lot more "current performance" to document for a DMAIC-type project "Peeling the onion" to get down to root   causes and fundamental drivers in order to remove those causes and fix the problem at its core – removing or reducing the waste in the as-is process The historic/current process data is the key source of data and insight In DMAIC the x-Y connections are part of the known, existing system. The work here focuses on quantifying that relationship There may not be a current process for the work under consideration – but generally the performance of a relevant as-is process helps document the state of the art Understanding the design drivers in order to guide upcoming decisions about which factors will be included in and adjusted; to optimize business net value Models, prototypes and industry benchmarks are key sources of data and insight In DFSS, the x-Y connection may be new and may depend on the solution to be selected. The work at this step may involve prototyping or modeling the X-Y connection in order to estimate the nature of the relationship Improve What is the best solution choice? How should the solution be detailed for best practical implementation? How will it work? A set of possible solutions to the process issues faced needs to be worked out and based on these an optimal solution is to be selected for process improvement. Models of the solution can be created and the stake holders in this particular exercise need to be trained, consulted and a sense of ownership among them need to be created. A pilot project is to be done and the process needs to be evaluated . Some modeling of solution options may have been started as part of the X-Y relationship assessment in Analyze For software, the "coding/construction" happens here – realizing the design. For the product also the design needs to be validated for original requirements. Continued use of rigorous modeling techniques, prototyping/alpha release to predict and/or verify performance and reduce risk Control What factors are important to control over the life of the improvement or design? How will ongoing operation be monitored at all levels of the process and business, with appropriate control signals at every level? VOC to be considered and the service requirements from across the global users need to be monitored. This would go into the same process as in the analyze and improve stages. Process management and Process control Dashboards are to be made to suit the requirements of the process designed. This will enable closer and on going monitoring of the implementation exercise resulting in better control and remedial action where needed. (Table from 3David L Hallowell, ‘DMAIC and DFSS Roadmaps: How to Connect and Integrate?’ tailored to suit our current presentation) 5.0 Selection of Projects Project selection should be in line with the objectives of the company and the project that is taken up for process improvement should be able to impact financial bottom line of the company. Ideally the business leader should say what are the major problems that he faces in getting the company ahead in the business. We need to use tools like Pareto charts to prioritize issues and hence projects helping us in selecting the right project for implementation. The project should be manageable and implemented in less than six months period since project mates might leave a job or priority changes could occur which could also produce manageability issues. The target gain in the performance of a specific area under the project needs to be known to all the members of the team so that they are substantially motivated to attain what is needed. 6.0 Metrics to be monitored The process improvement is preceded by identifying the metrics that need to be monitored and measuring them in their current state. This is done during the existing process analysis. In this phase, identified metrics are listed down and their current values are measured and entered. Based on this and on the improvement process aimed, target metrics are calculated and entered. We should identify ‘leading’ metrics that concentrate on process based measurements rather that ‘lagging’ metrics that work on the outcome or products delivered4. We need to employ classical metrics like delivery times, lead times etc., that work on the product duration parameter and the quality related parameters such as accuracy, financial metrics like cost of product or specific component. Other derived metrics like rolled through put and critical to quality parameters, can also provide adequate information on the performance of the company. 7.0 Performance Evaluation and Rewarding One of the major contributors to effective implementation of process improvements are the motivating factors for human participants. While identification of the right processes to monitor progress and to identify the right kind of people to carry them out would be the major challenge. Change Agents are specifically trained for the purpose of managing and implementing change. The Green and black belts are trained out of the existing manpower in the company which will also improve the extent of implementation ownership in the people. A suitable rewarding method needs to be worked out based on the process improvements and the metrics used to measure the improvements. 8.0 Time Lines The entire project for process improvement and six sigma initiative should not go beyond six months. Keeping this as the final dead line, the following chart is made for implementation timeline. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Existing Process study Metrics Fixing Project Identification Process improvement Targets achieved Course corrections RoI The above indicated time line is a typical time map which we could plan to adhere to, to gain from the effective implementation of the six sigma process. 9.0 Risks and Risk Mitigation Plans The risks normally associated with six sigma is in change management. The changes could go unaccepted by the people who are on the job. However the management commitment to the project will see through the project implementation and reward those who positively respond to it and show the stick to those who are not positively responding to these changes. Second major risk factor is the possibility of the change bringing in errors or increased level of defects during the implementation phase resulting in dissatisfied VOC. But this could be a passing phase and has to be rectified. However, during the planning phase of the project itself, such contingencies are to be visualized and avoided. 10.0 Benefits of the six sigma initiative The benefits of implementing six sigma initiative would be as follows5: Financial Benefits of Six Sigma Projects Reduces cost of production Provides higher and faster return on investment Increases cash flow with the available resources Increases shareholder value Reduces cost of servicing Organizational Benefits of Six Sigma Projects Company has a marketing edge since it is a six sigma company Helps to line up company vision and mission in line with day to day activities Provide better quality and timely delivery to customers Improves profitability by increasing the premium chargeable on the product. Operational Benefits of Six Sigma Projects Eliminates undesirable and non-value added activities in the process. Improves efficiency of the work force Improves morale and team spirit Better utilization of space available and the employees Produces better cycle time of production thereby reducing the lead time for deliveries Optimizes process steps and man hours needed 11.0 References 1. What is Six Sigma available at http://www.isixsigma.com/sixsigma/six_sigma.asp 2. Thomas Pyzdek, ‘A Roadmap for deploying six sigma in small businesses’ aavailable at : http://www.isixsigma.com/library/content/c051024a.asp#author 3. David L Hallowell, ‘DMAIC and DFSS Roadmaps: How to Connect and Integrate?’ iSixSigma LLC., 4. Six Sigma metrics available at http://www.isixsigma.com/library/content/a041122a.asp 5. Charles Waxer, ‘Quantify Six Sigma Benefits’ available at : http://www.isixsigma.com/library/content/c011112a.asp Read More