six sigma part 1 - 2018
TRANSCRIPT
Recommended Reading
This training includes everything you will need to study for
the certification exam. If you would like to further your
understanding of Six Sigma, we recommend these books:
• Michael L. George, John Maxey, David Rowlands, Mark Price (Sept 2004)
The Lean Six Sigma Pocket Toolbook: A Quick Reference Guide to 100
Tools for Improving Quality and Speed ISBN-13: 978-0071441193
• George Eckes (Jan 2003) Six Sigma for Everyone ISBN-13: 978-
0471281566
• Thomas Pyzdek (Mar 2003) The Six Sigma Project Planner : A Step-by-
Step Guide to Leading a Six Sigma Project Through DMAIC ISBN-13: 978-
0071411837
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Unit 1 - Introduction to ‘Six Sigma’
The purpose of this unit:
This first unit provides a general background and history
regarding the beginnings of Six Sigma, where it comes
from, why it is used, and the foundation concepts upon
which it is built. This unit also provides several terms and
phrases used within Six Sigma. It is designed to provide a
sound foundation to understand the units that follow.
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The Basics of Six Sigma
Six Sigma is an improvement methodology that uses the
following phases to make changes to any process:
Defining, Measuring, Analyzing, Improving, and Controlling.
“Six Sigma” measures the capability of a process to
perform defect-free work with a failure rate of 3.4 parts per
million or 99.9997%.
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The Basics of Six Sigma
The Six Sigma methodology uses proven strategies, tools,
and statistical methods to improve virtually any process.
The goal of Six Sigma is improved process performance
and increased customer satisfaction through variability and
defect reduction, resulting in consistently producing high-
quality services, products, or processes.
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The Basics of Six Sigma
Six Sigma reduces costs and waste by determining the
Cost of Poor Quality.
Reducing poor quality is accomplished by:
– Understanding who your customers are and what is
important to them
– Understanding customer feedback, called the Voice
of the Customer, and determining the necessary
requirements for your product
– Prioritizing issues related to your product- Continued on next slide
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The Basics of Six Sigma
(Continued)
Reducing poor quality is accomplished by:
– Determining internal processes and what causes
variation
– Determining what causes defects
– Developing ways to address the defects
– Developing metrics to standardize and measure the
changes made in the process
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The Basics of Six Sigma
Although referred to regularly in today’s working world, the
Six Sigma methodology is a relative newcomer to the
landscape of theories and practices to work better.
In 1986, Bill Smith was the first person to introduce the
principle. He was working for Motorola at the time and had
been fascinated with ways to improve working practices.
This included making them more efficient and effective by
pushing ahead with quality improvements and trying to get
the most from a manufacturing production line.
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The Basics of Six Sigma
Mr. Smith came up with the idea to work on a way to
minimize defects in production through continuous
improvements.
He recognized that every manufacturing and business
process could be measured, analyzed, and improved upon
based on analysis and controlled to stay within that new
process.
Continuing to do this would reduce variations in process
and produce output much more effectively, meeting the
desires of the customer.
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The Basics of Six Sigma
Six Sigma focuses on measuring and quantifying the
impact of an improvement project. It requires buy-in across
the business for the project to make changes based upon
those measurements, irrespective of personal views.
Guesswork and assumptions have no place; it is a precise
process.
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The Basics of Six Sigma
Six Sigma designates clear roles for people within the
project, using “belts” to define each role and contribution as
well as recognizing Six Sigma “champions.”
Strong management to lead forward the required changes
is paramount to the process of a Six Sigma project and key
to the roles of black belts – who are the highest level belts,
akin to most martial arts. (unit 3 discusses the belt structure
in more detail).
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The Basics of Six Sigma
The term "Six Sigma" comes from statistics. A “sigma” is a
term used to denote variance from the mean average of an
event.
It is perceived that for any event or activity, 3 measures of
these variances on either side of the mean average will
include almost all potential activities. So, Six Sigma
originally referred to the ability of manufacturing processes
to produce a very high proportion of output within
specification.
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The Meaning of Six Sigma
Processes that operate with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities. This is not strictly accurate as being within six standard deviations; only roughly 4.5 deviations cover this, but the accepted principle allowing for modifications over time is that Six Sigma will work to this level of accuracy. (For those in the Black Belt program, unit nine goes into greater detail on statistics).
Six Sigma's implicit goal is to improve all processes to that level of quality or better. Six Sigma is a registered service mark and trademark of Motorola Inc.
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The Meaning of Six Sigma
Sigma levels determine the rate of defects and are a
standardized measure of the error rate of a process, based
on the Defects per Million Opportunities (DPMO) estimate.
The Sigma Level estimate is a long-term estimate of the
process defect opportunities. At the Six Sigma level, a
business process produces only 3.4 defects per million
opportunities.
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The Meaning of Six Sigma
• At the 5th Sigma level, 233 defective parts per million
occur.
• At the 4th Sigma level, 6,210 defective parts per million
occur.
• At the 3rd Sigma level, 66,807 defective parts per million
occur.
• At the 2nd Sigma level, 308,538 defective parts per
million occur.
• At the 1st Sigma level, 690,000 defective parts per million
occur.
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The Meaning of Six Sigma
There are two common analogies you will see which help
to put Six Sigma into perspective. One deals with
surgeries, and the other deals with airplane crashes.
They both put the criticality of Sigma performance levels
into perspective. An example follows:
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The Meaning of Six Sigma
If you have a surgeon who is performing your surgery, are
you comfortable with a surgical infection rate or negative
outcome rate at the 2nd sigma level using this chart?
Are you comfortable with an airline that has a crash rate at
the 3rd sigma level? Probably not.
We feel more comfortable with businesses and companies
functioning at the 5th or 6th level of sigma.
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General History of Six Sigma &
Continuous Improvement
The history of performance and process improvement
dates back to the late 1880’s. This was, in large part,
related to the industrial revolution.
With the invention of steam and the business need for new
manufacturing processes, companies noticed an increasing
need for standardization and later for reducing variability.
In 1789, Eli Whitney introduced mass production and
interchangeable parts, which was a pivotal point in the
emerging quality frontier.
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General History of Six Sigma &
Continuous Improvement
Since then, a multitude of quality control methods have
been developed. Some come and go, but each of them has
brought a new way of looking at what we do as a process.
Each of them has added some new tool, skill, or
improvement opportunity.
Total Quality Management (TQM) or (TQMS) provided a
good framework for continuous improvement in the late
1980s and early 1990s, but now industries rely more on
proven methodologies which rely on mathematical
substantiation and hypothesis testing.
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General History of Six Sigma &
Continuous Improvement
As we evolve in quality improvement, organizations such
as the International Standards Organization, develop
standards to further refine and provide a framework for
consistent quality management systems.
Examples are the ISO 9000 (Quality Management) or
9001 (Quality Management Systems) standards.
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General History of Six Sigma &
Continuous Improvement
As businesses move along the continuum of quality
improvement, they realize the value economically, socially,
and strategically for obtaining certifications such as Six
Sigma. For their organization and their employees, it is a
winning strategy.
Great companies today realize that the money invested in
performance enhancement is returned exponentially to the
organization.
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General History of Six Sigma &
Continuous Improvement
Six Sigma is the result of bits and pieces of many individual
contributions to the quality movement.
The word “sigma” has been used for years by
mathematicians and engineers as a symbol for a unit of
measurement of variation called the standard deviation.
Understanding deviation in a process is important to place
it under control.
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General History of Six Sigma &
Continuous Improvement
It is important to remember the Six Sigma methodology is
not a revolutionary way of thinking, but more of an
evolutionary development in the science of continuous
improvement.
Six Sigma uses the best elements from historical quality
initiatives to provide a process of managing quality using
credible experience and proven tools.
Business success depends on improving business
processes and results in combination with great customer
service.
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General History of Six Sigma &
Continuous Improvement
Here is a brief overview of some of the key contributions to
quality history and the quality movement over the last 100
years:
– In 1789, Eli Whitney introduced mass production and
interchangeable equipment parts. This led to
significant improvements in repair downtime.
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General History of Six Sigma &
Continuous Improvement
In 1913, Henry Ford began the moving automobile
assembly line. This further exemplified the need for part
consistency. If something broke, it needed to be repaired
rapidly to eliminate assembly line delay.
In the 1920’s, quality began to be driven by inspections.
In 1924, Walter Shewhart introduced process control charts
and methods to collect and analyze data in ways which
could be displayed so employees could more readily see
the changes they made.
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General History of Six Sigma &
Continuous Improvement
In the 1950’s, the U.S. military developed the military
standard MIL-STD-105A, and the U.S. government
required statistically-based levels of product quality from its
vendors.
In 1954, Joseph Juran began to introduce his concept of
integration known as “Big Q” in Japanese factories. The Big
Q involved quality through management’s active
involvement and ownership. This led to the Japanese
constantly improving quality and manufacturing capability in
the 1970’s. Ultimately, their capabilities became more
effective than those employed in the United States.
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General History of Six Sigma &
Continuous Improvement
The key focus became defect elimination and cycle time
reduction. Both of these improvements resulted in
improved productivity and true success for Japanese
companies such as Toyota.
By the 1980s, American manufacturers realized if
Japanese companies did it, why couldn’t they; and so they
did, with companies such as Motorola and GE leading the
way.
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General History of Six Sigma &
Continuous Improvement
In 1987, the International Organization for Standardization
(ISO) developed a series of quality standards that were
adopted by most of the industrialized world to serve as a
single global standard.
In 1987, the U.S. Government introduced the Malcolm
Baldrige National Quality Award, presented annually by the
president, and designed to provide an operational definition
of “business excellence.”
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General History of Six Sigma &
Continuous Improvement
In 1987, Motorola adopted the concepts of Six Sigma and
shared the new methodology and philosophy with their
suppliers, engineers, and managers. This resulted in
billions of tangible savings to Motorola.
Other corporations began to engage in Six Sigma such as
Honeywell, Ford Motor Company, and General Electric,
with the same results. They saved money by reducing
repair times, increasing customer satisfaction, reducing
order delays, reducing defects, increasing productivity, and
decreasing measurement error.
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General History of Six Sigma &
Continuous Improvement
Shewart and Deming helped develop some key process
improvement ideas and theories.
In 1920, Walter Shewart explained how three sigma or three
standard deviations is where a process needs to be
corrected. This is the point where a product will need to be
remade because it will not pass a quality inspection.
Dr. W. Edwards Deming (1900–1993) is best known for
reminding management that most problems are systemic
and that it is their (management's) responsibility to improve
the systems so that workers can do their jobs more
effectively.
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General History of Six Sigma &
Continuous Improvement
Deming's theories were taught as a part of his System of
Profound Knowledge. His knowledge system consists of
four interrelated parts:
(1) Theory of Optimization
(2) Theory of Variation
(3) Theory of Knowledge
(4) Theory of Psychology
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General History of Six Sigma &
Continuous Improvement
In the theory of optimization, the objective of an organization is the
optimization of the total system and not the optimization of individual
subsystems.
In the theory of variation, his philosophy focuses on improving the
product and service variability in design and manufacturing processes.
In the theory of knowledge, Deming emphasized that knowledge is not
possible without theory, and experience does not establish a theory by
itself. He says copying a best practice without understanding the theory
behind it could be devastating for an organization.
In the theory of psychology, he helped explain how to understand
people, interactions between people, and interactions between leaders
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General History of Six Sigma &
Continuous Improvement
When developing better interactions between employees
and managers, he noticed that workers were responsible for
10 to 20 percent of the quality problems in a factory. The
remaining 80 to 90 percent was under management's
control. It was their responsibility to manage the programs
accordingly.
Deming knew higher quality leads to higher productivity, and
higher productivity leads to long term competitive strength
for businesses. Quality improvements result in less rework,
fewer mistakes, fewer delays, and better use of time and
materials. He taught quality and productivity improvement
for over fifty years. He also developed the Deming Cycle.
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General History of Six Sigma &
Continuous Improvement
The Deming Cycle is also known as the Plan-Do-Check-Act
(PDCA) Cycle or Plan-Do-Study-Act (PDSA) Cycle. It was
invented by Walter Shewhart, but popularized by and
significantly enhanced by Deming.
PDCA and PDSA are cyclic processes for planning and
testing improvement activities prior to full-scale
implementation.
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The steps in the Deming PDCA or PDSA Cycle are:
1. Plan a change or test it (P).
2. Do it (D) by carrying out the change or test on a small
scale.
3. Check it (C) by observing the effects of the change or
test.
4. Study it (S) by reviewing what you have done or
changed.
5. Act on what you have learned (A).
6. Repeat and continuously evaluate the process.
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General History of Six Sigma &
Continuous Improvement
Deliverables of a Lean Six Sigma Project
There are several key deliverables for a Six Sigma project.
It is important to remember that Six Sigma is not designed
to be a quick fix to mask a business problem.
Lean Six Sigma is more of a high level, intense system to
promote ongoing quality improvement. The ultimate goal is
continued improvement and sustained quality.
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Deliverables of a Lean Six Sigma Project
Six Sigma focuses on reducing defects, preventing rework,
and eliminating waste in processes that produce a
customer’s product.
By using research and data collection, organizations can
discover internal problems that may or may not be
apparent, allowing them to take action to reduce errors and
rework, which cost time, opportunities, and money.
Businesses should use Six Sigma and quality management
system standards to ensure that they consistently produce
products and services to meet the critical to quality
standards of the customer.
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Deliverables of a Lean Six Sigma Project
For organizations to meet their goals for quality
improvement and Lean Six Sigma, they must meet several
key deliverables along the way under the DMAIC model.
First, the deliverables for the Define phase will include:
– Developing a fully-trained project team who is
committed to the improvement and has the full
support of management, including necessary
resources.
– Identifying what characteristics are Critical to Quality
for the customer, developing a project charter, and
mapping the known business processes.
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Deliverables of a Lean Six Sigma Project
The deliverables of the Measure phase include identifying
key measures, developing and deploying a data collection
plan, developing a baseline for performance, documenting
variation, and communicating it to team members and
stakeholders.
The deliverables of the Analysis phase involve a root cause
analysis for concerns, gap analysis, and a top-to-bottom
data and process analysis.
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Deliverables of a Lean Six Sigma Project
The deliverables for the Improve phase involve developing
possible solutions, determining which one’s are the best
solutions, and then developing a subsequent
implementation plan.
The final deliverables in the Control phase include
standardizing processes, documenting procedures,
implementing the monitoring plan, and ultimately
transferring ownership of the project and closing the
project.
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Problem Solving Strategy Y=f(x)
The problem-solving strategy all begins with a simple
equation: y = f(x)
Although Six Sigma talks a lot about statistical analysis and
measurements and various other mathematical
applications, at the core of the process is one simple
equation:
y=f(x), or more accurately, y=f(x)+ Ɛ.
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Problem Solving Strategy Y=f(x)
The core parts of this equation are described as followed:
– ‘y’ represents the desired outcome, result, or goal you
want to achieve.
– ‘x’ represents the input, factors, variables, or elements
required to create the outcome.
– ‘f’ represents the function or process applied to the
variables, by which they are modified, changed, or
altered – the transformation processor.
– ‘Ɛ’ represents some level of error or the amount of
difference due to uncertainty or predictability when the
process is applied and how near or far it is from the
desired outcome.
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Problem Solving Strategy Y=f(x) This is perhaps easier to see as an example:
When you bake a cake, you take a set number of ingredients,
combine them in a certain way, bake the mixture, and after a
period of time, you get a cake ready to eat.
– ‘y’ is the cake that you desire
– ‘x’ represents the ingredients
– ‘f’ represents the mixing and baking process that is applied
to the ingredients to create the cake
– ‘Ɛ’ – If you made this cake several times, the outcome may
not always be identical. You may use a slightly lower heat
setting in the oven, a slightly differing amount of an
ingredient, and you may cook it for a few minutes more or
less. The end result will be broadly the same, but each will
have some variance from the others. That difference is
represented by ‘Ɛ’, the Greek letter epsilon.Copyright: Management and Strategy Institute
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Problem Solving Strategy
This is referred to as The Principle of Determinism. This
principle explains that every outcome is the result of a
process being applied to it or determined by the application
of a function.
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Problem Solving Strategy
The Principle of Determinism is a core belief running
through Six Sigma. All outcomes are determined by the way
inputs are transformed – according to some said process.
The cause and effect philosophy of Six Sigma means that
you look at a 'process' and see how the process allows for
variation. The inputs, process function, and errors within that
process all affect the outcome. They cause the outcome to
be a particular way – the cause and effect of Six Sigma.
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Voice of the Customer, Business, and Employee
Quite often, a customer is the person or group who drives
the project and is the focus of a project.
Customers define requirements, needs, or wants. They
have a vested interest in a project. They also pay for the
project, support resource needs, and evaluate and use the
results of the project. They provide the “Voice of the
Project” and are considered the “Voice of the Customer.”
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Voice of the Customer, Business, and Employee
Defining the Voice of the Customer (VOC) includes what
the customers’ requirements are for products and services
and what their expectations are: both positive and negative,
including likes, dislikes, problems, and suggestions.
It helps determine core business processes involved in
their needs and helps the project team develop the Critical
to Quality elements (CTQs) and develop key process
metrics (KPOVs). The VOC asks what each customer
desires, specifically, what is important to them, and what do
they perceive is a defect in a quality or service.
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Voice of the Customer, Business, and Employee
The purpose of the Voice of the Customer (VOC) survey is to
identify key business drivers of internal and external customer
satisfaction. The VOC is necessary to properly focus the Six
Sigma project and develop the right measures.
The VOC asks what each customer desires, specifically what is
important to them and what do they perceive is a defect in a
quality or service.
Once data is developed, it can be used to translate customer
feedback into project goals and objectives, including Critical to
Quality (CTQ) attributes and requirement statements.
Voice of the Customer analysis tools such as quality function
deployment (QFD) translate customer requirements into
performance measures.
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Voice of the Customer, Business, and Employee
CTQ flow-down is used to convert the voice of the
customer to specific needs using a treemap, where the tree
map is the voice of the customer and the branches lead to
the specific features.
It helps determine the big Y’s and little y’s or the effects of
the causes.
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Voice of the Customer, Business, and Employee
Several methods can be used to determine the voice of the employee, voice of the business, voice of the process, or voice of the customer.
To do so, you can use various methods to collect customer feedback, wishes, and desires for products and services. These include surveys, focus groups, interviews, or observation. You can identify the key elements that make these tools effective.
The collection of customer data through surveys, interviews, in-person, focus groups, email, or phone help determine the needs of the customer and the voice of the customer.
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Voice of the Customer, Business, and Employee
VOC data can be developed in two forms: those which are
reactive in nature and those which are proactive in nature.
– Reactive examples include complaints, sales
reporting, or web page activity.
– Proactive examples include interviews, surveys,
market research, benchmarking, and quality
scorecards.
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Voice of the Customer, Business, and Employee
The ‘what’ and ‘why’ indicate specifically what you want to
know about your customers.
The customer survey was designed with these factors in
mind:
– What don’t you like?
– What are your expectations?
– What’s important to you?
– What’s a defect?
– How do we compare to our competitors?
– How are we doing?
– What do you like?
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Voice of the Customer, Business, and Employee
The voice of the customer determines what improvements
are desired and need to be made. All improvements are
done with the goal of increasing the quality of the business
output.
The three key input components of quality are the customer,
the employee, and the process. Once you determine the
customers’ requirements, you need to determine what data
is needed to make improvements. There are several ways
to display this data.
The Six Sigma project team will develop primary and
consequential metrics such as quality, cycle time, or cost
and establish key project metrics that relate to the voice of
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Six Sigma Roles and Responsibilities
Six Sigma team formation typically consists of stakeholders,
executives, champions, and team members (yellow belts)
who are led by a green belt or black belt.
Project level membership may include master black belts,
black belts, green belts, or yellow belts who help in the
management of the improvement initiative.
Team members are obtained throughout the organization for
expertise and technical guidance.
Executives provide the strategic alignment within the
organization for initiatives and Six Sigma projects.
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• Champions guide the team through organizational
support and resources, removing roadblocks.
• Master black belts train black and greenbelts and
manage the strategic direction of the Six Sigma program.
• Black belts lead problem-solving Six Sigma teams.
• Green belts assist with data collection and analysis for
black belt projects.
• Yellow belts review overall activities and participate as
project team members and subject-matter experts
(SMEs) in their area of work.
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Six Sigma Roles and Responsibilities
Six Sigma Roles and Responsibilities
Position Role Action
Executive Management Champions Sponsor the project
Black Belts Consultants Provide Guidance
Green Belts Consultants Operations
Yellow Belts Consultants Identify processes that need improvement
Project team Process Execute the Actual Work
Subject Matter Experts Expertise Provide Guidance
Position Roles and Responsibilities
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This chart provides an “at a glance” overview of the
different positions and their roles in a project.
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Six Sigma Terminologies
As you progress through the units, you will learn several
terms, words, and phrases that may be unfamiliar to you.
Some words you may know, but within a different context.
When a term is used for the first time, it will be highlighted
and an explanation will be given for it within the context of
that section.
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Six Sigma Terminologies
Throughout all units, you will need to be aware of some of the following terms and phrases. Understanding them now will help you as you build up your knowledge through the subsequent units.
– ‘function’ relates to a process or application – e.g., the manufacturing process is a function.
– ‘variation’ refers to a difference from the expected or likely outcome.
– ‘variance’ and ‘standard deviation’ are statistical terms of measuring such variations.
– ‘error’ refers to the amount of difference or variation from the perfect expected outcome.
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Unit Summary
In this unit, you have learned about:
• The historical context of Six Sigma being developed
• What Six Sigma as a term means and the levels of Sigma
• The y=f(x) + Ɛ function
• The Principle of Determinism
• Cause and Effect
• Deliverables of a Lean Six Sigma Project
• Voice of the Customer, Business, and Employee
• Six Sigma Roles and Responsibilities
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Six Sigma Opportunities
The purpose of this unit:
• This unit will look at quality appraisal tools and how they
relate to Six Sigma.
• It will also help you consider when Six Sigma projects
are appropriate and how to decide when to move
forward with the opportunity.
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Unit 2 - Fundamentals of Six Sigma
Fundamentally, the training and use of Six Sigma philosophies
and principles will allow employees and project teams to
understand how systems interrelate and how to use the
application of quality improvement methodologies that
complement Six Sigma, such as Lean.
Six Sigma relies on a Body of Knowledge (BOK) that contains
information on general content and topical areas users should
know and pursue in their initiatives. Key fundamentals are that
users should be able to:
• Master data collection techniques, project charter
development, and document usage
• Apply and use Six Sigma tools and process analysis
• Understand team dynamics and apply project
management skills
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Fundamentals of Six Sigma
There is no universal body for Six Sigma standards, so
individual companies and trade associations have stepped
in to fill this void.
The Management and Strategy Institute is a trade
association created specifically to meet the needs of
continuous improvement professionals. Our Six Sigma
standards are set through a program called:
• Six Sigma Quality Standards (SSQS)-BOK
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Fundamentals of Six Sigma
• Implement statistical process control (SPC).
• Strategically plan improvements.
• Understand tactical design principles for organizational application.
• Perform hypothesis testing.
• Perform statistical and process capability calculations.
• Perform and analyze the results of correlation and regression.
• Analyze and interpret risk studies and implement improvement processes.
• Deploy control plans and sustainment opportunities.
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Managing Quality
Depending on what sort of business you work in or have
experience with, the nature of quality will be different. The
general assumption across all businesses is that quality
products are products meeting the needs or expectations of
the customer.
In effect, quality is not about what you produce being
accurate as you see it, but rather as the customer sees it.
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Managing Quality
The customer is the person receiving the output produced
from the product – the ‘y’ in the equation we discussed in
the previous unit.
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Managing Quality
How quality is achieved within the workplace is examined
by a raft of philosophies and practices, not least of which is
Six Sigma.
First, it’s worth looking at a few other approaches to quality:
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Managing Quality
ISO9000 series of certifications are governed by the
“International Standards Organization” – ISO. They cover a
range of methods for documenting quality standards and
approaches within the workplace.
The ISO certification only confirms correct and proper
documentation is maintained, kept accessible, and stored
properly by a business.
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Managing Quality
In itself, it does nothing to improve quality and in effect
gives quite a high-level approach to the documentation of a
process and practice within a business.
Certification can be obtained by any business that can
provide evidence of the required documentation. It does
nothing to improve quality.
ISO is however, a well-respected and acknowledged
business benchmark that demonstrates intent with regards
to quality production.
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Managing Quality
Lean Methodology works on the basis of improving quality
by eliminating waste within the business.
Credited with coming out of Toyota in the 1970s, it is
sometimes referred to by the term Muda, which is the
Japanese name for it.
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Managing Quality
• Three Forms of Waste
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Mura
Muri
Muda
Managing Quality
In Lean, you have three types of waste:
– Mura is unevenness in work demand or work flow.
– Muri is having a greater demand than capacity in any given time or overburdening the process, series of processes, or system. We can all relate to making mistakes when we are rushed or stressed; this is caused by Muri. We establish the capacity for work and then ensure we do not try and force more into the system than it can handle.
– Muda waste has two types:
• Muda Type I : non-value added activity, necessary for end customer.
• Muda Type II : non-value added activity, unnecessaryfor end customer.
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Managing Quality
Lean has some beneficial applications in reducing waste
and improving quality by reducing excess or ensuring that
the product meets the customer expectations without
wasting effort in exceeding that expectation.
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Managing Quality
Many tools within the Lean practice have moved across to
Six Sigma, and their correlations have become so
noticeable that ‘Lean Six Sigma’ has become a practice in
itself.
We will touch on this in a later unit for those studying to
Black Belt level. However, by itself, it has limitations in its
applications.
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Managing Quality
Total Quality Management – or TQM, is one of the most
popular quality methodologies around. Next to Six Sigma, it
is probably one of the most tool-driven methods, but does
not have the mathematical or statistical relations found
within Six Sigma.
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Managing Quality
TQM relies on examining problems and proposing solutions
that need to be accepted by the populous – in effect, a
democratized solutions process.
It identifies ‘good ideas’ but does not necessarily identify
the best.
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Managing Quality
That said, it will normally make improvements in quality as
part of its process of further reviews. Its cause and effect
analysis ensures that better-than-existing processes are
put forward at all times.
One issue is that its lack of measurement doesn’t indicate
how much better the new process is or if the best option is
being adopted.
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Starting Six Sigma
When thinking about Six Sigma in any business, it can be a
bit daunting. If you’ve been told that your business is going
to start adopting Six Sigma methodology and the business
will be better because of it, it can all feel a little
overwhelming.
How do you know when to consider a process for
improvement, how to identify it, and what to do?
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Starting Six Sigma
Six Sigma is a top-down methodology – that means that
the decision to implement comes from the top – whether
that is the top of the business, your division of the
business, or some other production unit.
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Starting Six Sigma
The decision to move forward with an improvement review
within any business must include executive buy-in.
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Starting Six Sigma
One of the key considerations of Six Sigma is the desire to
meet the needs of the customer. Consider the business
and its customers – and remember the definition of a
customer is someone who receives the product (the ‘y’).
They can be internal or external customers.
You’ll need to consider if there is any place where the
business is not meeting its customers’ needs. Or more
likely, where you think it is not meeting their needs.
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This is where you need to focus your opportunity for
deployment.
Deployment is the use of Six Sigma in examining the
quality of an area of the business. Six Sigma projects
should be selected based on their cost-benefit analysis.
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Starting Six Sigma
Every business has limited resources, and no matter how
many people you have trained within the business, and to
whatever level they are trained, there are only a finite
number of resources available to you.
You’ll need to learn to maximize their application.
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Starting Six Sigma
A simple method of evaluating projects uses the Pareto
Priority Index (PPI):
PPI = Savings ($) x Probability of Success
Cost x Completion Time
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Starting Six Sigma
The PPI increases as the probability of success or savings
value increases, but decreases as the cost to implement or
the completion time becomes greater.
How you calculate each of these values is open to
interpretation, but what is important is that no matter how
you choose to measure (as is evident through Six Sigma as
a whole), that measurement is accepted as accurate by the
business and is consistently applied.
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Starting Six Sigma
An example of comparisons between projects can be seen
in the table below:
Project | Savings ($,000) | Probability of Success | Cost ($,000) | Completion (months) | PPI
A 250 95% 25 4.5 2.1
B 400 75% 12 10 2.5
C 700 50% 8 6 7.3
D 1500 60% 42 9 2.4
In this table, the outcomes of the PPI for A, B & D are
broadly in line with each other, but Project C is significantly
higher. Therefore, Project C would be a first choice to
deploy.
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Starting Six Sigma
This is not the only method and is not infallible as it does
not consider a number of important variables that may be
considered when deploying a project.
Consideration of business reputations, customer or
stakeholder weight, supplier timing, or even staffing impact
are not taken into account here. Yet, these may all be valid
areas of consideration when deciding on a deployment.
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Starting Six Sigma
Applying a relatively simple formula like this can help to
focus opportunities of deployment and decision making on
which projects to fully deploy.
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Starting Six Sigma
When you have decided upon project deployment, it is worth your time to get a rough idea of what resources you need for the project. Then, recruit a deployment leader.
This scoping will put a very loose framework around the intended project. It need say nothing more than a few descriptive words (e.g., “Looking at the way we package our sandwiches,” “Should we consider emailing our customers,” or “Do customers need the tennis balls in a box?”). These may seem like strange questions on their own, but they start the process of focus prior to deployment.
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Starting Six Sigma
We will come back to the role of the deployment leader in
the next unit when we look at how the team is made up.
We will also look at focusing the deployment activity when
we look at the intrinsic principles of Six Sigma in later units.
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Quiz
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Unit Summary
In this unit, you have learned about:
• Other Quality methodologies: ISO, Lean, and TQM
• What to consider before deploying a Six Sigma Project
• How to choose potential projects
• The Pareto Priority Index (PPI)
• Initial scoping questions of the project
• Managing Quality
• Please click the Black X in the top right corner of the
screen to close the presentation viewer and continue.
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