1 DPC - South America - Six Sigma Program
Master Black Belt in Six Sigma
Edson Silveira de Oliveira
March, 2004
2 DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
3 DPC - South America - Six Sigma Program
Quien somos: “Du Pont” ?
Du Pont es una compañía científica 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 Nutrición•Construcción•Textiles•Transporte•Electrónicos•Salud
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Du Pont Performance Coatings
Es el mayor fabricante a nivel mundial en Pinturas Automotrices e Industriales. Creada en 1999 a partir de la fusión de DuPont Automotive Finishes y Herberts (División de Pinturas de Hoescht).
Posee operaciones en 36 países a nivel mundial que suministran pinturas automotrices e industriales en los 5 continentes.
Divisiones
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Du Pont Performance Coatings Venezuela
Pinturas Automotrices e Industriales
Mercado Automotriz(Region Andina)
REFINISHOEM
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Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
7 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.”
Chad HollidayChairman & CEODuPont CompanyFebruary 26, 1999
8 DPC - South America - Six Sigma Program
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
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DPC - South America - Six Sigma Program
Benchmarking Results
1,000,000
100,000
10,000
1,000
100
10
13 4 5 6 72
Sigma Scale of Measure
restaurant bills
Doctors’ prescription writing
IRS tax advice(phone in)
airline baggage handling
DuPontaverage
world classperformance
DuPont safety
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DPC - South America - Six Sigma Program
Evolution of Six Sigma in the USA
1992 1995 2000
• ABB• Motorola• TI• IBM• DEC• Kodak • AlliedSignal
• Nokia• Sony • Navistar• Whirlpool• Bombardier• GenCorp• Siebe Foxboro • Lockheed Martin• John Deere
• Siemens• Compaq• Seagate• PACCAR• Toshiba
• DuPont• Dow Chemical
• Air Products• Honeywell• Johnson Controls• Maytag• Praxair• Ford • Johnson & Johnson
• GE
1985
funded fulldevelopment
of methodology current
benchmark
Six Sigma was originally developed for parts manufacturing, to provide a quality-driven competitive advantage…
… and is now seen as a key to growth in profits & share price.
… then was expanded beyond manufacturing…
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DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
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DPC - South America - Six Sigma Program
“La única garantía para nuestro negocio es un cliente satisfecho”1- Enfoque en el Cliente
Darle al cliente lo que quiere, ni más ni menos.
2- El Cliente define la Calidad
Bien la primera vez = Menor costo
5- La Variabilidad es el Enemigo
Tomar decisiones en base a data4- Actuar con pruebas
3- Medición es la ClaveNo sabemos lo que no medimos.
6- Aumento del Conocimiento ColectivoPersonas con conocimientos y herramientas para la mejora continua
Valores de Seis Sigma
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DPC - South America - Six Sigma Program
Satisfying the Stakeholders
• 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 !
Who are they and what do they want ?
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DPC - South America - Six Sigma Program
PurposeID Customer Needs
Address Customer Needs
Achieve Customer Satisfaction Gain Competitive Advantage
End Result: Sustainable Profit
Stakeholders:• Customer• Employees• Shareholders
All stakeholders’ needs will be met when the customers are satisfied.
ask & listen
improve or develop the
process through SIX SIGMA
increase revenue&/or reduce cost
- can be internal, external, or both !
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DPC - South America - Six Sigma Program
Unleashing Potential with Six SigmaRisk vs Knowledge
Knowledge
Ris
k
Science
• data• discipline• good decisions• confidence• innovative
Art
• chaos• firefighting• waste• fear• “change averse”
Move along curve using 6
• enhance process knowledge• exploit to reduce defects and/or create new offerings
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DPC - South America - Six Sigma Program
Costos de Baja Calidad
• 6 sigma <10% de las Ventas
• 5 sigma 10-15% de las Ventas
• 4 sigma 15-20% de las Ventas
• 3 sigma 20-30% de las Ventas
• 2 sigma 30-40% de las Ventas
Sigma Costos
Existen buenas oportunidades de Reducción de Costos!!!
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DPC - South America - Six Sigma Program
Value of Six Sigma
profit
total cost of goods sold
theoretical cost
cost of poor quality
profit
theoretical cost
cost of poor quality
without 6
Theoretical
COPQ
profit
theoretical cost
with 6
healthybusinessprice erosionG1 sales price
Improvement Projects ExampleImprovement Projects Example
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DPC - South America - Six Sigma Program
profit
Value of Six Sigma
profit
total cost of goods sold
theoretical cost
cost of poor quality
profit
theoretical cost
without 6
healthybusiness
price erosion
Develop the offering so there is “no” COPQ
G1 sales price
theoretical cost
profit
with 6
Development Projects ExampleDevelopment Projects Example
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DPC - South America - Six Sigma Program
Value of Six Sigma
market share
balance of market
without 6with 6
total market
market share
non-strategic
potential market share
market share
non-strategic
potential strategic
new share
growth
market share
non-strategic
potential market share
potential strategic
market share
non-strategic
new share
with 6
Top Line Growth Example
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DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
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DPC - South America - Six Sigma Program
Which Business Function Needs It?
• 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 !
manufacturing
HR
QA
R&D
admin
supply chain
engineering
sales & marketing
IT
mergers & acquisitions
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DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
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DPC - South America - Six Sigma Program
The Six Sigma Process – High Level
business strategy ideas – internal / external
1. xxxxxxxxx2. xxxxxxxxx3. xxxxxxxxx4. xxxxxxxxx5. xxxxxxxxx6. xxxxxxxxx
“evergreen” project list
Six Sigma Projects1. xxxxxxxxxxxxx2. xxxxxxxxxxxxx3. xxxxxxxxxxxxx
project selection
DMAIC &DMADV
Six Sigma teamsproject validationrealize benefit
translation
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DPC - South America - Six Sigma Program
CTX Flowdown
y
y
Y
y y y y
Projects
Y
MEASURE
GOAL
BENCHMARKING
ACTUAL PERFORMANCE
y y
CTS
CTQ
CTP
Projects Definition
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DPC - South America - Six Sigma Program
Six Sigma Process – Project Level
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.
BusinessProblem
PracticalProblem
StatisticalProblem
StatisticalSolution
PracticalSolution
BusinessSolution
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DPC - South America - Six Sigma Program
Project Types & Methodologies
Click link for more information on project types
DMAIC DMADV (DfSS)
DefineMeasureAnalyzeImproveControl
DefineMeasureAnalyzeDesignVerify
Methodology Spectrum
Baseline Projects
Improvement Projects
Design Projects
Top Line Growth Projects
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DPC - South America - Six Sigma Program
DMAIC – Phases & Deliverables
D1:D2:D3:
Project CTQ’sProject CharterProcess Map
M4:M5:M6:M7:M8:M9:
Project YPerformance StdsData Collection PlanProject Y DataProcess CapabilityImprovement Goal
A10:A11:A12:
Prioritized List of X’sList of Vital Few X’sFinancial Opportunity
I13:I14:
Proposed SolutionPiloted Solution
C15:C16:C17:
Sustained SolutionProject DocumentationTranslation Opportunities
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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.
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DPC - South America - Six Sigma Program
© 1994 Six Sigma Academy
It All Starts with the Customer
• Six Sigma works from RIGHT to LEFT !
– ID customer and find out what’s critical for them (CTQ)
– Define what process output(s) (Y’s) most closely relate to the CTQ
– Determine what process controls and inputs (X’s) most affect the output
– Identify modes of operation in the X’s to dramatically improve Y and delight the customer
• Final solution = optimal arrangement and control of the X’s
• Old school solution = Inspect Y and throw out the bad!
Supplier(s)
Inputs Output(s)
Process Customer(s)
X’s(inputs)
X’s(process)
Y’s
CTQ’s
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DPC - South America - Six Sigma Program
Process Map
C&E Matrix & FMEA
Multi-Vari Studies
Hypothesis Testing
Screening DOE’s
DOE’s / Trial Exps
Optimized Process
Dynamics of Execution Strategy
Control Plan
The “Funnel Effect”30 to 50 Inputs (X’s)
10 to 15 X’s
8 to 10 X’s
4 to 8 X’s
3 to 6
Vital X’s
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DPC - South America - Six Sigma Program
(DPC South América)
Green Belts(Venezuela)
(9)
Black Belts(Venezuela)
(2)
Green Belts(Brasil)
(100)
Black Belts(Brazil)
(4)
Champion Deployment(South America)
(1)
Personal Six Sigma
Master Black Belt(South America)
(1)
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DPC - South America - Six Sigma Program
Six Sigma Methodology: Summary
• Disciplined, Data-based approach
• Focuses on the customer and critical outputs
• Works upstream to control process X’s 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
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DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
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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
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DPC - South America - Six Sigma Program
Baseline Projects
• DMAIC
• Existing
• Broad or Focused - situational
• 1 or more Y’s - situational
• Improvement; Defect Identification & Reduction
• Primarily Special Cause
• 2 to 4 Months
• Stable Process, “Quick Hit” Imps, & “Child” 6 Project Charters
• Varied (none to $MM’s)
Methodology
Process
Approach
CTQ’s Y’s
Focus
Variation
Duration
Output
Benefit
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DPC - South America - Six Sigma Program
Improvement Projects
• DMAIC
• Existing
• Focused
• 1-2 Y’s
• Improvement / Defect Reduction
• Special and Common Cause
• 4 to 6+ Months
• Improved Processes with Enhanced Capability
• > $175K PTOI (Pre-Tax Operating Income)
Methodology
Process
Approach
CTQ’s Y’s
Focus
Variation
Duration
Output
Benefit
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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.
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DPC - South America - Six Sigma Program
Development Projects
• DMADV or DMAIC (DMADV more typical)
• New or Redesigned
• Broad and Systemic
• Many Y’s
• Design or Re-Design
• Primarily Common Cause
• 6-12 Months (capital developments are longer)
• 6 Process, by Design
• Typically Large & Often Soft
Methodology
Process
Approach
CTQ’s Y’s
Focus
Variation
Duration
Output
Benefit
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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
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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.
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DPC - South America - Six Sigma Program
Top Line Growth Projects• DMAIC or DMADV
• New or Redesigned
• Either Narrow and Focused or Broad and Systemic
• One Y or Many Y’s
• Improvement, Design, or Re-Design
• Special Cause and/or Common Cause
• 4 to 6+ for Improvement type TLG; 6+ for Development
• 6 Process, by either Improvement or Design
• High $ Value and Hard $; SBU Specific but typically > $500M
Methodology
Process
Approach
CTQ’s Y’s
Focus
Variation
Duration
Output
Benefit
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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: ???
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DPC - South America - Six Sigma Program
TLG• Product Development • Application Development• New Market Development• At the Customer, For the Customer
Could deliver cost savings or TLG
TLG or Effectiveness• Quality Improvement• Service Improvement• Pricing Process Improvement• Selling Effectiveness• Advertising/Communication
Improvement• Branding Effectiveness• Channel Effectiveness• Sales Lead Management
PTOI
Hard, soft, & one-time PTOI Hard, soft, & one-time PTOI
Deliver TLG
“TLG Focus Areas”
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DPC - South America - Six Sigma Program
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 ?
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DPC - South America - Six Sigma Program
Contenido
• Quien Somos: “Du Pont”….….”DuPont Performance Coatings”
• Que es Six Sigma ?
• Por Que Decidimos Implementarlo ? Valores ?
• Cómo lo aplicamos y donde?
• Cómo funciona?
• En que estamos trabajando en Du Pont?
• Ejemplo...
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DPC - South America - Six Sigma Program
“MEJORAS EN EL SERVICIO DE ENTREGAS A TIEMPO DE
PRODUCTOS OEM”
Green Belt: Carlos A. Calabrese S.
Status del Proyecto :Medición / Análisis / ExperimentaciónAGOSTO 2003
Proyecto Six Sigma
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DPC - South America - Six Sigma Program
Resumen del ProyectoDescripción del Proyecto:Nuestra participación en el Mercado Andino es de un 75%, lo que nos coloca como un proveedor estratégico en la región..En base a esto debemos garantizar en todo momento un flujo contínuo de los materiales que són utilizados en el proceso de pintura de los vehículos.
Objetivo y Alcance del Proyecto:Incrementar el nivel de servicio a clientes OEM Andinos.
Variables CTS (Y´s):• % Servicio OEM •Cambios de Producción por Fallas de Suministro.•Cambios de Producción por Fallas de Calidad en los Productos.
Situación y Desempeño Actual:sigma:Y= 3,00 sigma (Short Term)
Meta del Proyecto:sigma:Y= 4,5 sigma (ST)
Beneficios:• Mantener e Incrementar Participación en los clientes OEM.• Garantizar el flujo contínuo del proceso de pintura de las ensambladoras.• Fabricar los productos que realmente requieren reposición de inventario en la línea.• Garantizar 100% de satisfacción en Servicio de Materiales Entregados a Tiempo.
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DPC - South America - Six Sigma Program
Fase Diseño de ExperimentoESTRATEGIA:
• Se implementará un Sistema de Reposición de Inventario KAMBAN bajo la modalidad de “Teoría de Restricciones”, controlado por un Semáforo:
Stock de Seguridad
Producción y Reposición
Inventario OK en almacén
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DPC - South America - Six Sigma Program
Stock de Seguridad
Consumo Zona Amarilla
Inventario 0
Fase Diseño de Experimento
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DPC - South America - Six Sigma Program
Stock de Seguridad
Consumo Zona Amarilla
Inventario 0
Fase Diseño de Experimento
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DPC - South America - Six Sigma Program
Stock de Seguridad
Producción y Reposición
Inventario OK en almacén
Fase Diseño de Experimento
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DPC - South America - Six Sigma Program
ACTUAL
Liberación de Materiales
Ensambladoras
rojo
azul
PROPUESTO
Fase Resultados
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DPC - South America - Six Sigma Program
Hallazgos:
Variación 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:
Implementación de un Sistema de reposición 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% Satisfacción del Cliente)
Mantener e Incrementar el % de Participación de Nuestros Clientes OEM
El Suministro dependerá de la demanda real (Consumo) de la línea.
Inventarios óptimos ajustados a las necesidades reales (Reducción de Inventario).
Optimización de los Recursos de Manufactura (Facilities & Personal) ya que el sistema de
planificación de la producción estará basado en las necesidades reales.
Fase Conclusion