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Process Excellence : Six Sigma

EEPTM of International Institute of Business Analysis [IIBA®], Canada

REP of International Requirements Engineering Board [IREB®], Germany

Presenter Venkadesh Narayanan, BSME, MBA, CBAP®, PMI-PBA®, CBPP®

Principal Consultant Former Indian Civil Servant [IRAS 2001 Batch]

LinkedIn Profile

Objective of this Presentation

Overview of Six Sigma

1. What is Six Sigma

2. What Sigma and Six Sigma

3. History of Six Sigma

4. Objective and Application area of Six Sigma

5. Implementation of Six Sigma

Six Sigma integrate with BA

Difference between Lean and Six Sigma

Six Sigma Production System(In Motorola)

1.Overview of Six Sigma

What is Six Sigma?: It is a methodology that provides businesses with the tools to improve the

capability of their business processes.

This increase in performance and decrease in process variation.

It leads to defect reduction and improvement in profits, employee morale and

quality of product.

Overview of Six Sigma

It is process Improvement method/Tool

By Using Techniques and Tools

Target : 3.4 DPMO

What is Six Sigma?:

Sigma(σ) is a Symbol of Standard Deviation

Standard Deviation(σ): A dispersion of average variance from the required value in a set of data.

What is Sigma(σ )?

Overview of Six Sigma

What is Six Sigma (6σ)?

Overview of Six Sigma

Opportunities ⇔ Variation / Defects

Origin of Six Sigma:

In the late 1860s, Francis Galton conceived of a measure to quantify normal variation: the standard deviation

1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems

In 1986, Bill Smith – then a senior scientist at Motorola – introduced the concept of Six Sigma to standardize the way defects are counted.

Father of Six Sigma

Father of Statistical Quality

Overview of Six Sigma

Overview of Six Sigma

Objectives of 6σ : Improve customer satisfaction (Internal and External)

Improve the quality of product and service

Reduce the process cycle time

Overall cost saving up to 30%

Development of staff skill

Where it is used: Manufacturing and service industries

Sales and Marketing

Accounting and Financing

Overview of Six Sigma

Implementation of Six Sigma: Six Sigma Methodology inspired by Deming's Plan-Do-Check-Act Cycle

PDCA + Scientific Method / Tools

Start End

1. Define Define the problem or project goal that needs to be addressed.

2. Measure Measure the current Performance in various aspects. It is a data collection step.

FMEA Process Flow Chart Value Added Flow Chart

MSA SPC Histogram and Pareto Chart

Overview of Six Sigma

D - Tools

M - Tools

Implementation of Six Sigma:

3. Analysis Analyse the process to determine root causes of variation, poor performance (defects)..

4. Improve Improve process performance by addressing and eliminating the root causes.

DoE Why – 5 Cause and Effect Diagram

5S TPM Kaizen Poka-Yoke

Overview of Six Sigma

I - Tools

A - Tools

Implementation of Six Sigma:

5. Control Control the improved process and future process performance.

Control Plan Standardize Work Check Sheet SPC

Overview of Six Sigma

C - Tools

Implementation of Six Sigma:

Overview of Six Sigma

Duration

6σ A

ctiv

ities

Implementation of Six Sigma:

1

3

2

Integrate Six Sigma with BA

Six Sigma Business Analysis

D Define to what is the exact Problem

Define what the exact business or project objective

M Measure the rate/amount/ frequency of Problem

Measure the current situation of internal and external of firm

A Analyze the root cause of the problem

Analyze the requirements Elicitation/Evaluation

I Improve on area of the problem Improve the project/business by implementing solution or model

C Control the new process by reviewing and monitoring

Control the project from deviation till the end of it.

Difference between Lean and Six Sigma

1.Eliminate/Reduce the waste 2.Improve the process flow

Focus on

Using Tools

Goal

1.Eliminate/Reduce the Variation 2. Improve the process capability

1. Focused on Flow Cost, Speed, Time

1. Focused on Problem/Defect/Variation

1. Kaizen 2. 7 Waste 3. Kanban (Visual) 4. Gemba (As in Place)

1. Control Chart 2. R and R 3. DoE 4. SPC

Lean Six Sigma

Six Sigma Production System

6σ Companies:

In Motorola System

Six Sigma in three different levels: 1. As a Metric 2. As a Methodology 3. As a Management system 1. Six Sigma as a Metric: 1. The term "Sigma" is often used as a scale for levels of 'goodness' or quality.

Using this scale, 'Six Sigma' equates to 3.4 defects per one million opportunities (DPMO).

2. Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

2. Six Sigma as a Methodology: Six Sigma is a business improvement methodology that focuses an organization on: Understanding and managing customer requirements

Aligning key business processes to achieve those requirements

Utilizing rigorous data analysis to minimize variation in those processes

Driving rapid and sustainable improvement to business processes.

In Motorola System

3. Six Sigma Management System: Motorola ensures that process metrics and structured methodology are applied to improvement opportunities that are directly linked to the organizational strategy. When practiced as a management system, Six Sigma is a high performance system for executing business strategy. Six Sigma is a top-down solution to help organizations: Align their business strategy to critical improvement efforts

Mobilize teams to attack high impact projects

Accelerate improved business results

Govern efforts to ensure improvements are sustained

In Motorola System

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