Chapter 7a: USE OF SIX SIGMA IN OPERATIONAL RISK

UNIVERSITAS KOMPUTER UNIVERSITAS KOMPUTER INDONESIA

INDONESIA

Chapter 7a: USE OF SIX SIGMA IN

OPERATIONAL RISK

Dr. Ir. Yeffry Handoko Putra, M.T

Chapter 7a: USE OF SIX SIGMA IN

OPERATIONAL RISK

Dr. Ir. Yeffry Handoko Putra, M.T

[TAR] Chap 15

What is Six Sigma

managerial concept combining Lean and Six Sigma that results in the elimination of the seven kinds of wastes / muda (classified as Transportation, Inventory, Motion, Waiting, Overproduction, Over-Processing, and Defects) and provision of goods and service at a rate of 3.4 defects and provision of goods and service at a rate of 3.4 defects per million opportunities (DPMO). A mnemonic for the wastes is "TIMWOOD".

In real-world terms, this means that 99 percent good (a traditional standard in business) is no longer good enough

HOW GOOD?

Six Sigma is

is a management philosophy and culture that passionately embraces defect-free process performance across the

business;

is a disciplined, fact-based problem-solving methodology that focuses on producing reliable and consistent results that

focuses on producing reliable and consistent results that meet customer and stockholder expectations; and

is a stretch goal. Six sigma companies strive to deliver services, products, and profitable results, consistently within expectations—every time.

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THE SIX SIGMA METHODOLOGY

Process owner. This individual is responsible for a process

Champion. This individual could be the process owner

Six sigma green belt. This person is a part-time employee who has undergone one to two weeks of training in the six sigma methodology

sigma methodology

Six sigma black belt . This person is a full-time employee who is essentially the project manager in a six sigma project

Master six sigma black belt . This individual is a full-time employee who has the responsibility to manage the

education, training, and promotion of the program.

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FIVE STEPS IN SIX SIGMA (DMAIC)

1. Define

2. Measure

3. Analyze

4. Improve

Example Tolgate DMAIC

5. Control

57

FIVE STEPS IN SIX SIGMA (DMADV)

1. Define

2. Measure

3. Analyze

4. Design

5. Validate

A key point to remember when doing a six sigma project is that the DMAIC project should last only 12 to 16 weeks

(which requires a small, well-defined project), whereas a DMADV or redesign might take years.

Tools in Six Sigma

Normal Curve

Descriptive statistics Histograms

Pareto charts

Line and run charts Scatter plots

Control charts

ORGANIZATION APPROACH