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Six Sigma for Six Sigma for ManagersManagers

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Contents :Contents :

• Six Sigma : An OverviewSix Sigma : An Overview

• What is Six Sigma?What is Six Sigma?

• Why Six Sigma?Why Six Sigma?

• Six Sigma Phases : Define, Measure, Analyze, Six Sigma Phases : Define, Measure, Analyze,

Improve and ControlImprove and Control

• Tools and Key Roles for Six SigmaTools and Key Roles for Six Sigma

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Why Six Sigma?Why Six Sigma?

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What is Sigma ?What is Sigma ?

Sigma Sigma A term used in statistics to represent

standard deviation, an indicator of the

degree of variation in a set of a process

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What is Six Sigma?What is Six Sigma?

Six Six SigmaSigma

A statistical concept that measures a

process in terms of defects – at the six

sigma level, there 3.4 defects per

million opportunities

A philosophy and a goal : as perfect as

practically possible

A methodology and a symbol of quality

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Sigma LevelSigma Level

Sigma Level (Process

Capability)

Defects per Million Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

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Six Sigma = 99,9997%

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• Every hour the postal service

would lose 20,000 pieces of mail• Every day our drinking water would

be unsafe for almost 15 minutes• Every week there would be 5,000

surgical operations that go wrong

in some way• Every month we would be without

electricity for almost seven hours

Why not Four Sigma or 99.379% ?

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Money

Customer Satisfaction

Growth

Quality

CompetitiveAdvantage

Employee Pride

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• At GE, Six Sigma added more than $ 2 billion to the At GE, Six Sigma added more than $ 2 billion to the

bottom line in 1999 alonebottom line in 1999 alone

• Motorola saved more than $ 15 billion in the first 10 Motorola saved more than $ 15 billion in the first 10

years of its Six Sigma effortyears of its Six Sigma effort

• AlliedSignal reports saving $ 1,5 billion through Six AlliedSignal reports saving $ 1,5 billion through Six

Sigma.Sigma.


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Six Sigma is about practices that help you

eliminate defects and always deliver

products and services that meet customer

specifications

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Cost of Poor QualityCost of Poor Quality

What is cost of scrap?What is cost of scrap?

What is cost of rework?What is cost of rework?

What is cost of excessive cycle times and What is cost of excessive cycle times and delays?delays?

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Cost of Poor QualityCost of Poor Quality

What is cost of business lost because What is cost of business lost because

customers are dissatisfied with your customers are dissatisfied with your

products or services?products or services?

What is cost of opportunities lost because What is cost of opportunities lost because

you didn’t have time or the resources to take you didn’t have time or the resources to take

advantage of them?advantage of them?

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Critical-to-Quality (CTQ)Critical-to-Quality (CTQ)

Elements of a process that significantly affect

the output of that process. Identifying these

elements is figuring out how to make

improvements that can dramatically reduce

costs and enhance quality.

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Six Sigma PhasesSix Sigma Phases

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Define Measure Analyze

Improve

Control


D M A I CD M A I C

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Define

Measure

Analyze


Define the project goals and customer

(internal and external) deliverables

Measure the process to determine current

performance

Analyze and determine the root cause(s)

of the defects

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Improve

Control


Control future process performance

Improve the process by eliminating defects

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Define

• Define Customers and Requirements (CTQs)

• Develop Problem Statement, Goals and

Benefits

• Identify Champion, Process Owner and Team

• Define Resources

• Evaluate Key Organizational Support

• Develop Project Plan and Milestones

• Develop High Level Process Map

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Measure

• Define Defect, Opportunity, Unit and Metrics

• Detailed Process Map of Appropriate Areas

• Develop Data Collection Plan

• Validate the Measurement System

• Collect the Data

• Begin Developing Y=f(x) Relationship

• Determine Process Capability and Sigma

Baseline

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Analyze

• Define Performance Objectives

• Identify Value/Non-Value Added Process

Steps

• Identify Sources of Variation

• Determine Root Cause(s)

• Determine Vital Few x's, Y=f(x)

Relationship

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Improve

• Perform Design of Experiments

• Develop Potential Solutions

• Define Operating Tolerances of Potential

System

• Assess Failure Modes of Potential

Solutions

• Validate Potential Improvement by Pilot

Studies

• Correct/Re-Evaluate Potential Solution

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Control

• Define and Validate Monitoring and Control

System

• Develop Standards and Procedures

• Implement Statistical Process Control

• Determine Process Capability

• Develop Transfer Plan, Handoff to Process

Owner

• Verify Benefits, Cost Savings/Avoidance, Profit

Growth

• Close Project, Finalize Documentation

• Communicate to Business, Celebrate

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Define Measure Analyze Improve Control

Deliverables :Deliverables :

• Fully trained team is formed, supported, and

committed to work on improvement project.

• Team charter developed, customers identified and

high impact characteristics (CTQs) defined, business

process mapped.

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Checkpoints for ReadinessCheckpoints for Readiness

Team Readiness :Team Readiness :

• Team is sponsored by a champion or business leader.

• Team formed and team leaders assigned.

• Improvement team members fully trained on Six Sigma and DMAIC.


Team Charter :Team Charter :

• Completed project management charter, including business case,

problem and goal statements, project scope, milestones, roles and

responsibilities, communication plan.

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CustomersCustomers

• Customer(s) identified and segmented according to their different

needs and requirements.

• Data collected and displayed to better understand customer(s) critical

needs and requirements.

Business Process MappingBusiness Process Mapping

• Completed, verified, and validated high-level 'as is' (not 'should be' or

'could be') business process map.

• Completed SIPOC representation, describing the Suppliers, Inputs,

Process, Outputs, and Customers.

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• Key measures identified, data collection planned and

executed, process variation displayed and communicated,

performance baselined, sigma level calculated.

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Key Measures IdentifiedKey Measures Identified

• Key measures identified and agreed upon.

• High impact defects defined and identified in the business process.

Data Collection Planned and ExecutedData Collection Planned and Executed

• Solid data collection plan established that includes measurement

systems analysis.

• Data collected on key measures that were identified.

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Process Variation Displayed/CommunicatedProcess Variation Displayed/Communicated

• Process variation components displayed/communicated using

suitable charts, graphs, plots.

• Long term and short term variability accounted for.

Performance Baseline/Sigma CalculationPerformance Baseline/Sigma Calculation

• Measure baseline process performance (capability, yield,

sigma level).

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• Data and process analysis, root cause analysis,

quantifying the gap/opportunity.

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Data and Process AnalysisData and Process Analysis

• Identify gaps between current performance and the goal

performance.

Root Cause AnalysisRoot Cause Analysis

• Generate list of possible causes (sources of variation).

• Segment and stratify possible causes (sources of variation).

• Prioritize list of 'vital few' causes (key sources of variation).

• Verify and quantify the root causes of variation.

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Quantifying the Gap/OpportunityQuantifying the Gap/Opportunity

• Determine the performance gap.

• Display and communicate the gap/opportunity in financial terms.

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• Generate (and test) possible solutions, select the best

solutions, design implementation plan.

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Generating (and Testing) Possible SolutionsGenerating (and Testing) Possible Solutions

• Possible solutions generated and tested.

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Selecting The Best Solution(s)Selecting The Best Solution(s)

• Optimal solution selected based on testing and analysis.

• New and improved process ('should be') maps developed.

• Cost/benefit analysis of optimal solution(s).

• Small-scale pilot for proposed improvement(s).

• Pilot data collected and analyzed.

• Improved process ('should be') maps modified based on pilot data

and analysis.

• Project impact on utilizing the best solution(s).

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Designing Implementation PlanDesigning Implementation Plan

• Solution implementation plan established, including schedule/work

breakdown structure, resources, risk management plan,

cost/budget, and control plan.

• Contingency plan established.

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• Documented and implemented monitoring plan,

standardized process, documented procedures, response

plan established and deployed, transfer of ownership

(project closure).

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Checkpoints for ReadinessCheckpoints for ReadinessMonitoring PlanMonitoring Plan• Control plan in place for sustaining improvements (short and long-

term).

Process StandardizationProcess Standardization• New process steps, standards, and documentation are ingrained into

normal operations.

Documented ProceduresDocumented Procedures• Operating procedures are consistent.• Knowledge gained on process is shared and institutionalized.

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Checkpoints for ReadinessCheckpoints for ReadinessResponse PlanResponse Plan• Response plans established, understood, and deployed.

Transfer of Ownership (Project Closure)Transfer of Ownership (Project Closure)• Transfer ownership and knowledge to process owner and process

team tasked with the responsibilities.

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Tools and Roles for Tools and Roles for Six SigmaSix Sigma

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• Creating flowcharts of the step in a process

– operations, decision points, delays,

movements, handoffs, rework, loops, and

controls or inspections. • A process map is illustrated description of

how a process work.

Tools for Six Sigma Tools for Six Sigma

Process Process

MappingMapping

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• DOE is a structured, organized method for

determining the relationship between

factors (Xs) affecting a process and the

output of that process (Y).


Design of Design of

Experiments Experiments

or DOEor DOE

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• A group of rows and columns, with one set

of increments marked along the X

(horizontal) axis and another set of

increments marked along the Y (vertical)

axis. • The purpose of using XY matrix is to study

and understand the relationship between

what you are putting into a process and

what your customer is getting out of it. • The XY matrix allows the team to identify

gaps, areas for improvement.


XY MatrixXY Matrix

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• The goal of this tool is to ensure that your

measurement system is statically confident

– that it’s both accurate and precise each

and every time it is used. • Undertaken during Measure phase, your

MSA determines whether or not you can

take a certain measurement and repeat or

reproduce it among different people who

take the same measurement.


Measurement Measurement

System System

AnalysisAnalysis

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• Process capability tool is the measure of a

process being able to meet specification

requirements and fulfill customer CTQ

needs on a long term basis.


Process Process

Capability Capability

ToolTool

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• Investigating a theory about the suspected

cause (s) of a particular effect in a process

to determine if it is correct. • It’s a compass that points you directly to

the vital few factors that are most affecting

your process.


Hypothesis Hypothesis

TestingTesting

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• The manner in which a part or process can

fail to meet a specification, creating a

defect or non-conformance, and the impact

on the customer if that failure mode is not

prevented or corrected.


Failure Failure

Mode Effect Mode Effect

AnalysisAnalysis

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• A detailed assessment and guide for

maintaining all the positive changes you,

your black belt, and the project team have

made. • It ensures that all your analysis and efforts

stay in effect and that you have information

at your disposal to prevent backsliding or a

return to less than optimal performance

standard.


Control Control

PlanPlan

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ChampionsChampions Are responsible for the Six Sigma

implementation across the organization in an

integrated manner. Champions also act as

mentor to Black Belts.

Includes CEO and other key top management

team members. They are responsible for setting

up a vision for Six Sigma implementation.

Key Roles for Six Sigma Key Roles for Six Sigma

Executive Executive

LeadershipLeadership

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Black BeltsBlack Belts Operate under Master Black Belts to apply Six

Sigma methodology to specific projects. They

primarily focus on Six Sigma project execution.

Identified by champions, act as in-house expert

coach for the organization on Six Sigma. They

devote 100% of their time to Six Sigma.


Master Master

Black BeltsBlack Belts

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Are the employees who take up Six Sigma

implementation along with their other job

responsibilities. They operate under the guidance

of Black Belts and support them in achieving the

overall results.


Green BeltsGreen Belts

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Six Sigma Do’sSix Sigma Do’s

• Do communicate the commitment company-Do communicate the commitment company-

widewide

• Do demonstrate the commitment of company Do demonstrate the commitment of company

leadersleaders

• Do empower your key human resourcesDo empower your key human resources

• Do provide on-site mentoring for black beltsDo provide on-site mentoring for black belts

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Six Sigma Do’sSix Sigma Do’s

• Do be patient at the inception of you six Sigma Do be patient at the inception of you six Sigma

initiativeinitiative

• Do claim and advertise early “wins”Do claim and advertise early “wins”

• Do benchmarkDo benchmark

• Do establish project baseline and goalsDo establish project baseline and goals

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Recommended Further Readings:

1. Greg Brue, Six Sigma for Managers, McGraw Hill

2. George Eckes, Six Sigma for Everyone, John Wiley and Sons

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End of Material

unique file 10

Documents

sigma forsix sigma

sigma effortyears

overviewsix sigma

sigma baseline

sigma phasessix sigma

process steps

process owner

high level process map