1. INTRODUCTION TO SIX SIGMA
HAWTHORN 6SIGMA QUALITY SOLUTIONS
abhishek.kumar@hsqs.in
info@hsqs.in
WWW.HSQS.WWW.HSQS.
ININ

2. TOPICS (SESSION 1)
 Understanding Six Sigma
 History of Six Sigma
 Six Sigma Methodologies & Tools
 Roles & Responsibilities
 How Six Sigma can be Beneficial for You

3. What is Six Sigma ?
The term " Sigma " is used to designate the
distribution or spread about the mean (average) of
any process or procedure.
For a business or manufacturing process, the sigma
value is a metric that indicates how well that process
is performing.
The higher the sigma value, the better. Sigma
measures the capability of the process to perform
defect-free-work.
A defect is anything that results in customer
dissatisfaction.

4. With Sig Sigma, the common measurement index
is "defects-per-unit," where a unit can be
virtually anything--- a component, piece of
material, line of code, administrative form, time
frame, distance, etc.
The Sigma value indicates how often defects are
likely to occur. The higher the sigma value, the
less likely a process will produce defects. As
sigma increases, costs go down, cycle time goes
down, and customer satisfaction goes up.
What is Six Sigma … ?

5. SIX SIGMA IS. . .
 A performance goal, representing 3.4 defects for
every million opportunities to make one.
 A series of tools and methods used to improve or
design products, processes, and/or services.
 A statistical measure indicating the number of
standard deviations within customer
expectations.
 A disciplined, fact-based approach to managing a
business and its processes.
 A means to promote greater awareness of
customer needs, performance measurement, and
business improvement.

6. Features that set Six Sigma apart from
previous quality improvement initiatives include:
• A clear focus on achieving measurable and
quantifiable financial returns from any Six Sigma
project.
• An increased emphasis on strong and passionate
management leadership and support.
• A special infrastructure of "Champions," "Master
Black Belts," "Black Belts," "Green Belts", etc. to lead
and implement the Six Sigma approach.
• A clear commitment to making decisions on the
basis of verifiable data, rather than assumptions and
guesswork.

7. μ
σ
WHAT’S IN A NAME?
 Sigma is the Greek letter representing the
standard deviation of a population of data.
 Sigma is a measure
of variation
(the data spread)

8. WHAT DOES VARIATION MEAN?
 Variation means that a
process does not produce
the same result (the “Y”)
every time.
 Some variation will exist in
all processes.
 Variation directly affects customer experiences.
Customers doCustomers do notnot feel averages!feel averages!
-10
-5
0
5
10
15
20

9. MEASURING PROCESS PERFORMANCE
THE PIZZA DELIVERY EXAMPLE. . .
 Customers want their pizza
delivered fast!
 Guarantee = “30 minutes or less”
 What if we measured performance and found
an average delivery time of 23.5 minutes?
 On-time performance is great, right?
 Our customers must be happy with us, right?

10. HOW OFTEN ARE WE DELIVERING ON TIME?
ANSWER: LOOK AT
THE VARIATION!
 Managing by the average doesn’t tell the whole story.
The average and the variation together show what’s
happening.
s
x
30 min. or less
0 10 20 30 40 50

11. REDUCE VARIATION TO IMPROVE
PERFORMANCE
HOW MANY STANDARD
DEVIATIONS CAN YOU
“FIT” WITHIN
CUSTOMER
EXPECTATIONS?
 Sigma level measures how often we meet (or fail to
meet) the requirement(s) of our customer(s).
s
x
30 min. or less
0 10 20 30 40 50

12. MANAGING UP THE SIGMA SCALE
Sigma % Good % Bad DPMO
1 30.9% 69.1% 691,462
2 69.1% 30.9% 308,538
3 93.3% 6.7% 66,807
4 99.38% 0.62% 6,210
5 99.977% 0.023% 233
6 99.9997% 0.00034% 3.4

13. EXAMPLES OF THE SIGMA SCALE
In a world at 3 sigma. . .
 There are 964 U.S. flight
cancellations per day.
 The police make 7 false
arrests every 4 minutes.
 In MA, 5,390 newborns are
dropped each year.
 In one hour, 47,283
international long distance
calls are accidentally
disconnected.
In a world at 6 sigma. . .
 1 U.S. flight is cancelled
every 3 weeks.
 There are fewer than 4 false
arrests per month.
 1 newborn is dropped every
4 years in MA.
 It would take more than
2 years to see the same
number of dropped
international calls.

14. TOPICS
 Understanding Six Sigma
 History of Six Sigma
 Six Sigma Methodologies & Tools
 Roles & Responsibilities
 How Six Sigma can be Beneficial for You.

15. THE SIX SIGMA EVOLUTIONARY TIMELINE
1736: French
mathematician
Abraham de
Moivre publishes
an article
introducing the
normal curve.
1896: Italian sociologist Vilfredo
Alfredo Pareto introduces the 80/20
rule and the Pareto distribution in
Cours d’Economie Politique.
1924: Walter A. Shewhart introduces
the control chart and the distinction of
special vs. common cause variation as
contributors to process problems.
1941: Alex Osborn, head of
BBDO Advertising, fathers a
widely-adopted set of rules for
“brainstorming”.
1949: U. S. DOD issues Military
Procedure MIL-P-1629, Procedures
for Performing a Failure Mode Effects
and Criticality Analysis.
1960: Kaoru Ishikawa
introduces his now famous
cause-and-effect diagram.
1818: Gauss uses the normal curve
to explore the mathematics of error
analysis for measurement, probability
analysis, and hypothesis testing.
1970s: Dr. Noriaki Kano
introduces his two-dimensional
quality model and the three
types of quality.
1986: Bill Smith, a senior engineer
and scientist introduces the
concept of Six Sigma at Motorola
1994: Larry Bossidy launches
Six Sigma at Allied Signal.
1995: Jack Welch
launches Six Sigma at
GE.

16. SIX SIGMA COMPANIES

17. SIX SIGMA AND FINANCIAL SERVICES

18. TOPICS
 Understanding Six Sigma
 History of Six Sigma
 Six Sigma Methodologies & Tools
 Roles & Responsibilities
 How Six Sigma can be Beneficial for You

19. DMAIC – THE IMPROVEMENT
METHODOLOGY
Objective:
DEFINE the
opportunity
Objective:
MEASURE current
performance
Objective:
ANALYZE the
root causes of
problems
Objective:
IMPROVE the
process to
eliminate root
causes
Objective:
CONTROL the
process
to sustain the gains.
Key Define Tools:
• Cost of Poor
Quality (COPQ)
• Voice of the
Stakeholder
(VOS)
• Project Charter
• As-Is Process
Map(s)
• Primary Metric
(Y)
Key Measure
Tools:
• Critical to Quality
Requirements
(CTQs)
• Sample Plan
• Capability
Analysis
• Failure Modes
and Effect
Analysis (FMEA)
Key Analyze
Tools:
• Histograms,
Boxplots, Multi-
Vari Charts, etc.
• Hypothesis Tests
• Regression
Analysis
Key Improve
Tools:
• Solution
Selection Matrix
• To-Be Process
Map(s)
Key Control
Tools:
• Control Charts
• Contingency
and/or Action
Plan(s)
Define Measure Analyze Improve Control

20. DEFINE – DMAIC PROJECT
WHAT IS THE PROJECT?
 What is the problem? The “problem” is the Output
(a “Y” in a math equation Y=f(x1,x2,x3) etc).
 What is the cost of this problem
 Who are the stake holders / decision makers
 Align resources and expectations
Six SigmaSix Sigma
ProjectProject
CharterCharter Voice of
the
Stakeholde
r
S t a k e h o ld e r s
$
Cost of
Poor
Quality

21. DEFINE – CUSTOMER REQUIREMENTS
WHAT ARE THE CTQS? WHAT MOTIVATES
THE CUSTOMER?
Voice of the CustomerVoice of the Customer Key Customer IssueKey Customer Issue Critical to QualityCritical to Quality
SECONDARY RESEARCH
PRIMARY RESEARCH
Surve
ys
Surve
ys
OTM
Market
Data
IndustryIntelListeningPosts
Industry
Benchmarking
Focus Groups
Customer
Service
Customer
Correspondence
Obser-
vations

22. MEASURE – BASELINES AND CAPABILITY
WHAT IS OUR CURRENT LEVEL OF
PERFORMANCE?
50403020100
95% Confidence Interval for Mu
26.525.524.523.522.521.520.519.5
95% Confidence Interval for Median
Variable: 2003 Output
19.7313
8.9690
21.1423
Maximum
3rd Quartile
Median
1st Quartile
Minimum
N
Kurtosis
Skewness
Variance
StDev
Mean
P-Value:
A-Squared:
26.0572
11.8667
25.1961
55.2907
29.6100
23.1475
16.4134
0.2156
100
0.240771
0.238483
104.349
10.2152
23.1692
0.854
0.211
95% Confidence Interval for Median
95% Confidence Interval for Sigma
95% Confidence Interval for Mu
Anderson-Darling Normality Test
Descriptive Statistics
 Sample some data / not all data
 Current Process actuals measured
against the Customer expectation
 What is the chance that we will
succeed at this level every time?
Others
Amount
Late
41779
4.017.079.0
100.096.079.0
100
50
0
100
80
60
40
20
0
Defect
Count
Percent
Cum %
Percent
Count
Pareto Chart for Txfr Defects

23. Six SigmaSix Sigma
ANALYZE – POTENTIAL ROOT CAUSES
WHAT AFFECTS OUR PROCESS?
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))
Ishikawa Diagram
(Fishbone)

24. ANALYZE – VALIDATED ROOT CAUSES
WHAT ARE THE KEY ROOT CAUSES?
Others
Amou
nt
Late
41779
4.017.079.0
100.096.079.0
100
50
0
100
80
60
40
20
0
Defect
Count
Percent
Cum %
Percent
Count
Pareto Chart for Txfr Defects
Other
Cleric
al
Cu
rren
cy
2312
11.817.670.6
100.088.270.6
15
10
5
0
100
80
60
40
20
0
Defect
Count
Percent
Cum %
Percent
Count
Pareto Chart for Amt Defects
Six SigmaSix Sigma
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))
Critical Xs
Process
Simulatio
n
Data
Stratification
Regression
Analysis
E x p e r im e n t a l D e s ig n

25. IMPROVE – POTENTIAL SOLUTIONS
HOW CAN WE ADDRESS THE ROOT CAUSES
WE IDENTIFIED?
 Address the causes, not the symptoms.
y = f (xy = f (x11, x, x22, x, x33 . . . x. . . xnn))
Critical Xs
Decision
Evaluate
Clarify
Generate
Divergent | ConvergentDivergent | Convergent

26. IMPROVE – SOLUTION SELECTION
HOW DO WE CHOOSE THE BEST SOLUTION?
Solution Sigma Time CBA Other Score
Time
Qualit
y
Cost
Six SigmaSix Sigma
SolutionSolution
ImplementatioImplementatio
n Plann Plan
Solution Selection Matrix
☺ Nice
Try
Nice
Idea X
Solution
Right Wrong
Implementation
BadGood

27. CONTROL – SUSTAINABLE BENEFITS
HOW DO WE ”HOLD THE GAINS” OF OUR NEW
PROCESS?
0 10 20 30
15
25
35
Observation Number
IndividualValue
Mean=24.35
UCL=33.48
LCL=15.21
 Some variation is normal and OK
 How High and Low can an “X” go yet not materially impact the
“Y”
 Pre-plan approach for control exceptions
Process Owner: Date:
Process Description: CCR:
Measuring and Monitoring
Key
Measure
ments
Specs
&/or
Targets
Measures
(Tools)
Where &
Frequency
Responsibility
(Who)
Contingency
(Quick Fix)
Remarks
P1 - activity
duration,
min.
P2 - # of
incomplete
loan
applications
Process Control System (Business Process Framework)
Direct Process Customer:
Flowchart

28. DFSS – THE DESIGN METHODOLOGY
DESIGN FOR SIX SIGMA
 Uses
 Design new processes, products, and/or services from scratch
 Replace old processes where improvement will not suffice
 Differences between DFSS and DMAIC
 Projects typically longer than 4-6 months
 Extensive definition of Customer Requirements (CTQs)
 Heavy emphasis on benchmarking and simulation; less
emphasis on base lining
 Key Tools
 Multi-Generational Planning (MGP)
 Quality Function Deployment (QFD)
Define Measure Analyze Develop Verify

29. TOPICS
 Understanding Six Sigma
 History of Six Sigma
 Six Sigma Methodologies & Tools
 Roles & Responsibilities
 How Six Sigma can be Beneficial for You

30. CHAMPIONS
 Promote awareness and execution of Six
Sigma within lines of business and/or
functions
 Identify potential Six Sigma projects to be
executed by Black Belts and Green Belts
 Identify, select, and support Black Belt and
Green Belt candidates
 Participate in 2-3 days of workshop training

31. BLACK BELTS
 Use Six Sigma methodologies and advanced
tools (to execute business improvement
projects
 Are dedicated full-time (100%) to Six Sigma
 Serve as Six Sigma knowledge leaders within
Business Unit(s)
 Undergo 5 weeks of training over 5-10
months

32. GREEN BELTS
 Use Six Sigma DMAIC methodology and
basic tools to execute improvements
within their existing job function(s)
 May lead smaller improvement projects
within Business Unit(s)
 Bring knowledge of Six Sigma concepts &
tools to their respective job function(s)
 Undergo 8-11 days of training over 3-6
months

33. OTHER ROLES
 Subject Matter Experts
 Provide specific process knowledge to Six Sigma
teams
 Ad hoc members of Six Sigma project teams
 Financial Controllers
 Ensure validity and reliability of financial figures
used by Six Sigma project teams
 Assist in development of financial components of
initial business case and final cost-benefit analysis

34. TOPICS
 Understanding Six Sigma
 History of Six Sigma
 Six Sigma Methodologies & Tools
 Roles & Responsibilities
How Six Sigma can be BeneficialHow Six Sigma can be Beneficial
for You?for You?

35.  Focus on customers.
 Improved customer loyalty.
 Reduced cycle time.
 Less waste.
 Data based decisions.
 Time management
 Sustained gains and improvements.
 Systematic problem solving.
 Employee motivation
 Data analysis before decision making.
 Faster to market.
 Team building.
 Improved customer relations.
 Assure strategy planning.

36.  Effective Supply chain management
 Knowledge of Competition & Competitors.
 Develop Leadership skill.
 Breakdown barriers between departments and
functions.
 Management training.
 Improve presentation skills.
 Integration of products ,services and distribution.
 Use of standard operating procedures.
 Better decision making.
 Improving Projects Planning kills.