Six Sigma Orientation

Six sigma
Orientation

© All Rights Reserved TreQna 2005

expectatio
ns •What is Quality?
•Know Six Sigma
•Awareness with respect to
origin and history of Six
Sigma.
•The utility and benefits
•Introduction to Six Sigma as
methodology
•The Six Sigma organization


What is Quality?


Evolution of Quality

Reactive Quality
Proactive Quality
Quality Checks (QC) - Taking the
“Create process that will produce
defectives out of what is produced
less or no defects”

Historically Contemporary


Segments in Quality

Methodologies Standards Capability Models

•Six Sigma •ISO 9000, ISO •eSCM
•Lean 14000 etc. •CMM
•COPC •CMMI
•Malcolm Baldrige

Sharing
Scientific way Best practices
Benchmarked
to improve to build
practices-
capability? capability
“Standardizing”


What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at
high standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique

Six Sigma is not:
• A standard
• A certification
• Another metric like percentage


Two Meanings of Sigma

σ
• The term “sigma” is used to designate the distribution or spread
about the mean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that
indicates how well that process is performing. The higher the sigma
capability, the better. Sigma capability measures the capability of
the process to produce defect-free outputs. A defect is anything that
results in customer dissatisfaction.


Path to Six Sigma

6 Sigma 3.4 Defects

Sigma levels and
Defects per million
opportunities
(DPMO)
5 Sigma 233 Defects

4 Sigma 6,210 Defects




What it means to be @ Six Sigma
Is 99% (3.8σ) good enough? 99.99966% Good – At 6σ

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15 One minute of unsafe drinking
minutes each day water every seven months

5,000 incorrect surgical 1.7 incorrect surgical operations
operations per week per week

2 short or long landings at most One short or long landing at major
major airports daily airports every five years

200,000 wrong drug prescriptions 68 wrong drug prescriptions each
each year year

Example quoted from GE Book of Knowledge - copyright GE


Origin of Six Sigma

Motorola
the company that invented Six Sigma

• The term “Six Sigma” was coined by Bill Smith, an engineer with
Motorola

• Late 1970s - Motorola started experimenting with problem solving
through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program


The Growth of Six Sigma

GE
the company that perfected Six Sigma

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for
management promotions

• 2002/03 - Green Belt certification became the criteria for promotion
to management roles



The GE model for process improvements

Define Measure Analyze Improve Control

Combination of change management & statistical
analysis


Three Methodologies of Six Sigma

BPMS
Business Process Management System

DMAIC
Six Sigma Improvement Methodology

DMADOV
Creating new process which will perform @ Six
Sigma


BPMS
Business Process Management
System


The Need of BPMS

• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for
the process


The Methodology

Map process MSA, DCP, Service
steps, indicators excellence
identify and monitors and process
input/ output excellence
measures
Identify
Define Process Develop
Map Process VOC and VOP Build PMS Improvement
Mission Dashboards
Opportunities

Define Identify Visual
purpose of Critical to representatio
the process, Quality and n of
its goal and Critical to performance
its process
boundaries
The DMAIC
cycle

DMAIC
Six Sigma Improvement
Methodology


What is DMAIC ?

• A logical and structured approach to problem solving and process
improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

E = Q x A
Effectiveness Quality Acceptance
Improvement


The Approach

Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution


Methodology

D Identify and state the practical problem
Define

Validate the practical problem by collecting data
M
Measure
Convert the practical problem to a statistical one,
A define statistical goal and identify potential statistical
Analyze solution

I Confirm and test the statistical solution
Improve

C Convert the statistical solution to a practical solution
Control


Define

D VoC - Who wants the project and why ?
Define

M The scope of project / improvement
Measure

A Key team members / resources for the project
Analyze

I
Critical milestones and stakeholder review

D
Improve

C
Control Budget allocation


Measure

D Ensure measurement system reliability
Define
- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same
M way ?
Measure

A Prepare data collection plan
Analyze - How many data points do you need to collect ?
- How many days do you need to collect data for ?
I - What is the sampling strategy ?
Improve - Who will collect data and how will data get stored ?

M
- What could the potential drivers of variation be ?

C
Control Collect data


Analyze

D Understand statistical problem
Define

M
Measure Baseline current process capability

A
Analyze
Define statistical improvement goal
I
Improve

C
Control
A
Identify drivers of variation (significant factors)


Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)

• A brainstorming tool that helps define and display major causes, sub
causes and root causes that influence a process

• Visualize the potential relationship between causes which may be
creating problems or defects

Primary
Cause Secondary
Cause

Backbon Proble

A
e m

Root
Cause

Control – Impact Matrix

• A visual tool that helps in separating the vital few from the trivial many

Control

Vital Few Cost Ineffective
High Control – High
Low Control – High Impact
Impact
Impact

Cost Ineffective
High Control – Low Impact
Trivial Many
Low Control – Low ImpactA

Pareto Chart

• Pareto principle states that disproportionately large percentage of
defects are caused due to relatively fewer factors (generally, 80%
defects are caused by 20% factors)
35 100%
30
80%
25
20 60%
15 40%
10
20%
5

A
0 0%
L K A F B C G R D

Frequency Cumulative Frequency


Process Map Analysis

• Visually highlights hand off points / working relationships between
people, processes and organizations

• Helps identify rework loops and non value add steps

Customer Process A Process B Vendor

A

Hypothesis Testing

• A statistical tool used to validate if two samples are different or
whether a sample belongs to a given population

Null Hypothesis (Ho) is the statement of the status quo

Alternate Hypothesis (Ha) is the statement of difference

Homogeneity of One way ANOVA
Variance Moods Median

Chi-Square Regression
A

Improve

D Map improved process
Define

M
Measure

Pilot solution
A
Analyze

I
Improve

C
Control
I
Identify operating tolerance on significant factors


Control

D
Ensure measurement system reliability for
Define significant factors
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?
M
Measure
Improved process capability
A
Analyze

I
Improve Sustenance Plan

C
Control
- Statistical Process Control
- Mistake Proofing
- Control Plan
C

Control – Sustenance Plan
Control Plan

• Have the new operating procedures and standards been
documented ?

• What Statistical Process Control (SPC) tools will be used to monitor
the process performance ?

• Who will review the performance of the output variable and
significant factors on closure of the project and how frequently ?

• What is the corrective action or reaction plan if any of the factors
were to be out of control ?

C

Six Sigma Organization


Six Sigma - Three Dimensions
Customer Process A Process B Vendor

Define Measur Analyze Improve Control
e

Driven
by
custom
er
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt Upper/Lower
•
specification • ••••
•••••••••••
•
Organization Tools
limits ••••••
•••••
••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5

Process variation 0 0%

Enabled by quality
L K A F B C G R D

Frequency Cumulative Frequency

team.
Pareto Chart


The Quality Team

Master Black Belt - Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black Belts

- Backbone of Six Sigma Org
Black Belt Black Belt - Mentor Green Belts
- Full time resource
- Deployed to complex or
“high risk” projects
Green Belt
Green Belt
- Part time or full time
resource
Green Belt
- Deployed to less complex
projects in areas of functional
expertise

Six Sigma – Career Option!
• Basic - Six Sigma Awareness
• Green Belt Projects
Green Belt (GB) • Participate in Black Belt Projects
• Assist business functions with day to day
activities
• Mentor/Train Green Belts
• Black Belt Projects
Black Belt (BB) • Change Agents
• Work along with the business owners

• Mentor/ Train Black Belts
• Run Strategic projects
Master Black Belt (MBB) • More Strategic than tactical role

Highly paid!
Work like a Consultant!
Huge demand in the industry!

Overall…A high flying Career!!


Thank You


Six Sigma Orientation

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