What are your Expectations?
I would like to capture your expectations for the day?
Agenda
 
Introduction & overview
Demystifying Six Sigma
Creating the Six Sigma Culture
Managing the six sigma culture
Total cycle Time Reduction
Success Examples Around the world
How to Implement Six Sigma in your business
Q & A
Closing comments
Alliance Partnerships
MASET, LLC.
and
 Motorola

Maset areas of expertise
Quality(Six Sigma)
Cycle time eduction
Leadership
Cultural change
Project Management
Supply chain Management
Facilitation
Training
Demystifying Six Sigma
What does Six Sigma mean to you ?
Many different definitions exist.I will try to address three this morning
Six sigma as a statistical term
Normal Distribution
Standard deviation
Six sigam as a statistical term
Values of a standard deviation
          one sigma  =  68.27 % 317,311 ppm
      two sigma  = 95.45 % 45,500   ppm
  three sigma = 99.73 % 27,000   ppm

   six sigma = 99.999999 %  1.96 ppb

Six sigma as a quality term
Invented by motorola in the mid 80’s
Service marked and registered by Motorola
Accepted by all countries
Accepted by all organization

Six sigma as a  quality term

Six Sigma
=
3.4 ppm defective
Six sigma is a way to change an organizations culture
Provides a means of delivering                            Total customer satisfaction
Focuses everyone in the organization on the same objective
Definition of defect
Defect are good!
“Associates need to feel comfortable in identifying and reporting defects.”
The effects of defects
Every occurrence of a defect within the process requires time to inspect,fix,and re-inspect.

Average cycle time is directly proportional to the total number of defects in the process.
Welcome to Motorola’s Quality Story
Culture
Culture guides the enterprise’s Day-To-Day behavior
The nature of culture
Culture provides its members with guidelines for dealing with just about everything
Much of every culture is cvert and implicit largely submerged like an iceberg
Cultures are constantly changing and evolving.
When culture and strategy clash,invariably culture wins out.
If the organizational culture does not embrac initiatives related to change,overall change efforts will fail

There is no such thing as “We’re different”
Functions in a typical organization
Accounting
Advertising
Distribution
Energy management
Environmental affairs
External affairs
Facilities
Finance
Health & safety
Human resources
legal
Manufacturing
Marketing
Profuct/service development
Payroll
Purchasing
Sales
Scheduling
Training
Transportation
Travel

The evolution of motorola’s quality culuture
Evolution continues!
Evolution continues!
How many objectives are there in your organization?[FS:PAGE]

Our fundamental objective
Total customer satisfaction
Key beilfes
How we will always act
Key goals
What we must accomplish
Key initiatives
How we will do it
KEY INITATIVES how we will do it
•  Six sigma quality
• total cycle time reduction
• product manufaction and environmental leadership
• Prfit improvement
•  Empowerment for all in a participative    Cooperative and creatice workplace
Consistent focus
Card created & adopted 1986
Five minor changes in1992
No significant changes during five different chairman
Bob Galvin
George Fisher
Bill Wiese
Gary Tooker
Chris Galvin

Creating and managing the Six Sigma quality culture
Sis sigma quality
One of the two key drivers of
increased
Total customer satisfation
and
reduced cost
Product/Service is delivered when promised
Every occurrence of a defect within the process requires time to inspect,fix,and re-inspect
Average cycle time is directly proportional to the total number of defects in the process.
Product/service is delivered with no defects
No test/inspection is 100% effective in finding defects.

Delovered defects escape test/inspection within the process.

Delivered defects are directly proportional to the total number of defects in the entire process
Six sigma quality impoves customer satisfaction
Reducing the total defects in the enire process reduces:
Delivery delinquencies;
Delivery defects;
Early life failure rate;and therefore…
 
Increases customer satisfaction
and
Decreases warranty cost!
Process cost and defects
Reducing the total defects in the entire process:
Reduces the cycle time per unit …
Reducing WIP(Work in process) 
Reducing inventory carrying costs
Resuces defect inspection,analysis,and repair cost;therefore…

Decreases “Manufacturing” cost
Cost/Quality
Six sigma has shown that
The highest quality producer is
The lowest Cost producer
The common metric: Total defects per unit(TDU)
TDU is the best measure of the over all quality of the process
TDU is the independent variable
Process yields are dependent upon TDU
Defining a unit
A “unit” may be as diverse as a:
Piece of equipment
Line of software
Order
Technical manual
Medical claim
Wire transfer
Hour of labor
Customer contact

Anything that is measurable & understandable by the person who is trying to reduce defects
Sigma,a figure of merit
TDUcould be expected to be proportional to the complexity of the unit
Complexity is directly proporttional to the number of opportunities to creat a defect
To normalize processes of different complexity, we use:
Improvement
Benchmarking
Benchmarking
Process quality levels may vary widely within a company
Implementation of the six sigma culture
The six-steps design process
Cycle time reduction
Will be coverd in detail afer lunch
Problem solving identification tool
All member of the organization should have trining in problem solving indentification tools
Flow charts
Brain storming
Pareto charts
Cause & effect diagram

Black belt tools
Process characterization
Process improvements[FS:PAGE]
Graphical data analysis
Distribution analysis(graphical and numberical)
Comparative methods(graphical and numberical)
Process sources of variation
Measurement system analysis
Black belt tool(con’t)
Process control(SPC)
Process capability(Cp and Cpk)
Confidence intervals
Design of experiments
Linear regression
Screening experiments
Optimization using response surface methodology
Maanagement of the quality/continuous improvement process
Methodology to continuoisly reduce defects
Regular review of DPMO performance
Quality system review
Corporate quality council

DPMO Enables regular review of continuous improvement performance
Corporate level review
Business level review
Group or division review
Product line review
Production line review
Operator level review
Same measurement – same improvement goal
Spectrum CVD

QSR：assessment vehicle for the total organization
Sets a common goal of perfection
Drives progress to world class standards
Provides an awardreness of quality process requirments
Cross-fertilization of ideas(knowledge sharing)
Teaching tool(auditors and auditees)
Information source for registrars
Institutionalize Solutions
Corporate quality council
Quality managers of all major operations
Corporate-wide programs
Quality system reviews of all major operations

Culture change is driven by measurements & rewards
Measurements and rewards must be consistent with change objectives;what you measure is what you get
Processes must be changed to achieve the measured operational goals
Six sigma provides...
A method to drive quality improvement
A common language-defects,continuous improvement,six sigma
A method of measurement
A method of comparison
A method of providing common reach out goals
Paradigm shifts
Start counting defects .27% bad vs. 99.73% good

Change unit of measure 2,700 PPM vs. .27% bad
What is six sigma
It is a culture change for a complete organization  
That’s:
Individually driven but involves everyone
Continuous process
Consistent throughout the organization
Measurement driven
Based on the premise
  “Everyone wants to do the best job they can"  
It is not a numbers game
meeting:  __________________ Date:       __________________
Was the meeting necessary?   

Was ther an objective communicated in advance?

Was time used effectively?   

Was there adequate advance information to help
me understand and contribute to the objective?

Did I contributen to the objective?  

Was the objective accomplished?  
 

10 year journey •• 1990 through 2000
Quality

Through defect elimination
       -we have eliminated > 99.7% of in proces defects    (5.60)

COPQ (cost of poor quality)
       - reduced > 84% on a per unit basis

Manufacturing cost saving
      - cumulative saving over $18.0 billion

Product reliability
      - MTBF .  .  . increased 5-10 fold[FS:PAGE]
Financial

Sales up 2.9x，$37.6 billion  
      - anaverage compounded growth rate of 13.2% per year

Employee productivity
      -increased  408%

Question & answers