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Edson Silveira de Oliveira Master Black Belt in Six Sigma March, 2004 DPC - South America - Six Sigma Program 1 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... DPC - South America - Six Sigma Program 2 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 DPC - South America - Six Sigma Program 3 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 DPC - South America - Six Sigma Program 4 Du Pont Performance Coatings Venezuela Pinturas Automotrices e Industriales Mercado Automotriz (Region Andina) OEM DPC - South America - Six Sigma Program REFINISH 5 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... DPC - South America - Six Sigma Program 6 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.” DPC - South America - Six Sigma Program Chad Holliday Chairman & CEO DuPont Company February 26, 1999 7 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 DPC - South America - Six Sigma Program 8 Benchmarking Results IRS tax advice (phone in) 1,000,000 Doctors’ prescription writing 100,000 restaurant bills 10,000 airline baggage handling 1,000 DuPont average 100 DuPont safety world class performance 10 1 2 3 4 5 6 7 Sigma Scale of Measure DPC - South America - Six Sigma Program 1 Evolution of Six Sigma in the USA • Air Products • Honeywell • Johnson Controls • Maytag • Praxair • Ford • Johnson & Johnson • DuPont • Dow Chemical Six Sigma was originally developed for parts manufacturing, to provide a quality-driven competitive advantage… funded full development of methodology 1985 • ABB • Motorola • TI • IBM • DEC • Kodak 1992 current benchmark • GE • AlliedSignal • Siemens • Compaq • Seagate • PACCAR • Toshiba • Nokia • Sony • Navistar • Whirlpool • Bombardier • GenCorp • Siebe Foxboro • Lockheed Martin • John Deere … and is now seen as a key to growth in profits & share price. 1995 2000 … then was expanded beyond manufacturing… DPC - South America - Six Sigma Program 1 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... DPC - South America - Six Sigma Program 1 Valores de Seis Sigma 1- Enfoque en el Cliente “La única garantía para nuestro negocio es un cliente satisfecho” 2- El Cliente define la Calidad Darle al cliente lo que quiere, ni más ni menos. 3- Medición es la Clave No sabemos lo que no medimos. 4- Actuar con pruebas Tomar decisiones en base a data 5- La Variabilidad es el Enemigo Bien la primera vez = Menor costo 6- Aumento del Conocimiento Colectivo Personas con conocimientos y herramientas para la mejora continua DPC - South America - Six Sigma Program 1 Satisfying the Stakeholders Who are they and what do they want ? • 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 ! DPC - South America - Six Sigma Program 1 Purpose ID Customer Needs Stakeholders: • Customer - can be internal, external, or both ! • Employees • Shareholders ask & listen Address Customer Needs improve or develop the process through SIX SIGMA Achieve Customer Satisfaction Gain Competitive Advantage increase revenue &/or reduce cost End Result: Sustainable Profit All stakeholders’ needs will be met when the customers are satisfied. DPC - South America - Six Sigma Program 1 Unleashing Potential with Six Sigma Risk Risk vs Knowledge Art • chaos • firefighting • waste • fear • “change averse” Move along curve using 6s • enhance process knowledge • exploit to reduce defects and/or create new offerings Science • data • discipline • good decisions • confidence • innovative Knowledge DPC - South America - Six Sigma Program 1 Existen buenas oportunidades de Reducción de Costos!!! Costos de Baja Calidad DPC - South America - Sigma Costos • • • • • <10% de las Ventas 10-15% de las Ventas 15-20% de las Ventas 20-30% de las Ventas 30-40% de las Ventas Six Sigma Program 6 sigma 5 sigma 4 sigma 3 sigma 2 sigma 1 Value of Six Sigma Improvement Projects Example G1 sales price profit healthy business price erosion profit profit total cost of goods sold cost of poor quality cost of poor quality theoretical cost theoretical cost without 6s DPC - South America - Six Sigma Program COPQ Theoretical theoretical cost with 6s 1 Value of Six Sigma Development Projects Example G1 sales price profit price erosion profit profit cost of poor quality total cost of goods sold DPC - South America - Six Sigma Program healthy business Develop the offering so there is “no” COPQ profit theoretical cost theoretical cost without 6s with 6s theoretical cost 1 Value of Six Sigma Top Line Growth Example nonstrategic total market nonstrategic balance of market market share nonstrategic potential strategic potential market share new share market share market share new share with 6s DPC - South America - Six Sigma Program potential strategic nonstrategic potential market share market share market share with 6s without 6s 2 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... DPC - South America - Six Sigma Program 2 Which Business Function Needs It? HR IT supply chain R&D manufacturing engineering admin sales & marketing • • • • DPC - South America QA mergers & acquisitions 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 ! - Six Sigma Program 2 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... DPC - South America - Six Sigma Program 2 The Six Sigma Process – High Level 1. xxxxxxxxx 2. xxxxxxxxx 3. xxxxxxxxx 4. xxxxxxxxx 5. xxxxxxxxx 6. xxxxxxxxx business strategy ideas – internal / external “evergreen” project list Six Sigma Projects 1. xxxxxxxxxxxxx 2. xxxxxxxxxxxxx 3. xxxxxxxxxxxxx project selection translation realize benefit DPC - South America - Six Sigma Program project validation DMAIC & DMADV Six Sigma teams 2 Projects Definition CTX Flowdown Y y y CTS y y CTQ y y y y Y CTP MEASURE ACTUAL PERFORMANCE GOAL BENCHMARKING DPC - South America - l l l Six Sigma Program Projects l l l l l l l l l 2 Six Sigma Process – Project Level Business Solution Business Problem Practical Problem Statistical Problem Statistical Solution Practical Solution 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. DPC - South America - Six Sigma Program 2 Project Types & Methodologies Baseline Projects Design Projects Improvement Projects DMAIC Define Measure Analyze Improve Control DMADV (DfSS) Methodology Spectrum Define Measure Analyze Design Verify Top Line Growth Projects Click link for more information on project types DPC - South America - Six Sigma Program 2 DMAIC – Phases & Deliverables D1: D2: D3: Project CTQ’s Project Charter Process Map M4: M5: M6: M7: M8: M9: Project Y Performance Stds Data Collection Plan Project Y Data Process Capability Improvement Goal A10: Prioritized List of X’s A11: List of Vital Few X’s A12: Financial Opportunity C15: Sustained Solution C16: Project Documentation C17: Translation Opportunities I13: Proposed Solution I14: Piloted Solution DPC - South America - Six Sigma Program 2 DMADV – Phases & Deliverables DPC - South America - Six Sigma Program 2 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. DPC - South America - Six Sigma Program 3 It All Starts with the Customer X’s (process) Inputs Supplier(s) X’s (inputs) Output(s) Y’s Process Customer(s) CTQ’s • • • DPC - South America - 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! © 1994 Six Sigma Academy Six Sigma Program 3 Dynamics of Execution Strategy The “Funnel Effect” Process Map 30 to 50 Inputs (X’s) C&E Matrix & FMEA Multi-Vari Studies 10 to 15 X’s Hypothesis Testing 8 to 10 X’s Screening DOE’s 4 to 8 X’s DOE’s / Trial Exps Control Plan DPC - South America - Six Sigma Program 3 to 6 Vital X’s Optimized Process 3 Personal Six Sigma (DPC South América) Master Black Belt (South America) (1) DPC - South America - Six Sigma Program Champion Deployment (South America) (1) Black Belts (Venezuela) (2) Black Belts (Brazil) (4) Green Belts (Venezuela) (9) Green Belts (Brasil) (100) 3 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 DPC - South America - Six Sigma Program 3 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... DPC - South America - Six Sigma Program 3 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 DPC - South America - Six Sigma Program 3 Baseline Projects Methodology • DMAIC Process • Existing Approach • Broad or Focused - situational CTQ’s Y’s • 1 or more Y’s - situational Focus • Improvement; Defect Identification & Reduction Variation • Primarily Special Cause Duration • 2 to 4 Months Output • Stable Process, “Quick Hit” Imps, & “Child” 6s Project Charters Benefit • Varied (none to $MM’s) DPC - South America - Six Sigma Program 4 Improvement Projects Methodology • DMAIC Process • Existing Approach • Focused CTQ’s Y’s • 1-2 Y’s Focus • Improvement / Defect Reduction Variation • Special and Common Cause Duration • 4 to 6+ Months Output • Improved Processes with Enhanced Capability Benefit • > $175K PTOI (Pre-Tax Operating Income) DPC - South America - Six Sigma Program 4 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. DPC - South America - Six Sigma Program 4 Development Projects Methodology • DMADV or DMAIC (DMADV more typical) Process • New or Redesigned Approach • Broad and Systemic CTQ’s Y’s • Many Y’s Focus • Design or Re-Design Variation • Primarily Common Cause Duration • 6-12 Months (capital developments are longer) Output • 6s Process, by Design Benefit • Typically Large & Often Soft DPC - South America - Six Sigma Program 4 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 DPC - South America - Six Sigma Program 4 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. DPC - South America - Six Sigma Program 4 Top Line Growth Projects Methodology • DMAIC or DMADV Process • New or Redesigned Approach • Either Narrow and Focused or Broad and Systemic CTQ’s Y’s • One Y or Many Y’s Focus • Improvement, Design, or Re-Design Variation • Special Cause and/or Common Cause Duration • 4 to 6+ for Improvement type TLG; 6+ for Development Output • 6s Process, by either Improvement or Design Benefit • High $ Value and Hard $; SBU Specific but typically > $500M DPC - South America - Six Sigma Program 4 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: ??? DPC - South America - Six Sigma Program 4 “TLG Focus Areas” PTOI TLG • Product Development • Application Development • New Market Development • At the Customer, For the Customer Deliver TLG Hard, soft, & one-time PTOI DPC - South America - Six Sigma Program TLG or Effectiveness • Quality Improvement • Service Improvement • Pricing Process Improvement • Selling Effectiveness • Advertising/Communication Improvement • Branding Effectiveness • Channel Effectiveness • Sales Lead Management Could deliver cost savings or TLG Hard, soft, & one-time PTOI 4 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 ? DPC - South America - Six Sigma Program 4 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... DPC - South America - Six Sigma Program 5 Proyecto Six Sigma “MEJORAS EN EL SERVICIO DE ENTREGAS A TIEMPO DE PRODUCTOS OEM” Green Belt: Carlos A. Calabrese S. Status del Proyecto :Medición / Análisis / Experimentación AGOSTO 2003 DPC - South America - Six Sigma Program 5 Resumen del Proyecto Descripción 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: Situación y Desempeño Actual: sigma: Y= 3,00 sigma (Short Term) Meta del Proyecto: sigma: Y= 4,5 sigma (ST) 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. DPC - South America - Six Sigma Program 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. 5 Fase Diseño de Experimento ESTRATEGIA: • Se implementará un Sistema de Reposición de Inventario KAMBAN bajo la modalidad de “Teoría de Restricciones”, controlado por un Semáforo: Inventario OK en almacén DPC - South America - Six Sigma Program Producción y Reposición Stock de Seguridad 5 Fase Diseño de Experimento Inventario 0 DPC - South America - Six Sigma Program Consumo Zona Amarilla Stock de Seguridad 5 Fase Diseño de Experimento Inventario 0 DPC - South America - Six Sigma Program Consumo Zona Amarilla Stock de Seguridad 5 Fase Diseño de Experimento Inventario OK en almacén DPC - South America - Six Sigma Program Producción y Reposición Stock de Seguridad 5 Fase Resultados ACTUAL Liberación de Materiales Ensambladoras rojo azul PROPUESTO DPC - South America - Six Sigma Program 5 Fase Conclusion 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. DPC - South America - Six Sigma Program 5