History Of Six Sigma By Praveen Gupta
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Transcript of History Of Six Sigma By Praveen Gupta
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Looking Beyond Three Sigma (1986)
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Looking Beyond Three Sigma (1986)
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Beyond Three Sigma Barrier (1986)
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Father of Six Sigma
Bill Smith’s Algorithm for Sigma Calculations(1987)
Photograph Courtesy of Mrs. Smith.
Bill Smith
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Trial Implementation in 1986
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Project Assigned in 1986
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Six Sigma Launched Jan 1, 1987
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Progress in 1987
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Six Sigma Software 1987
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Initial Product Sigma Levels 1988P
rodu
ct L
abel
s
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Six Sigma Project Presentation 1988
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First Published Project 1990
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Six Sigma Training (1990 – 2000)
Praveen
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Six Sigma Awards (1988 – 94)• Managed “Small Wins” the first
four Six Sigma projects at Motorola in 1987.
• Guided/Participated in threeCEO Award Winning Teams:
1. Wave Solder Process 2. Copper Plating process3. Six Sigma/MU Instructor
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Continuing Six Sigma
Motorola Launched Six Sigma
Harry and SchroederPackaged Six Sigma/
Breakthrough Methodology
ASQ Standardized Six Sigma/ CSSBB
SPC, JIT, TQM, DFM, DOE, CI
Benchmarking,…
1980 1987 1994 2001 2002 2003 2005
Exploration
Evolution
Growth
Maturity…
Lean and Six Sigma
Six SigmaBusiness
Scorecard
Innovation
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Sales andDistribution
Purchasing andSupplier
Management
Service andGrowth
OperationalExecution
Employees andInnovation
Management andImprovement
Leadership andProfitability
COST
REVENUE
IMPROVEMENT
INNOVATION
Business Scorecard 2003
Source: Gupta, Six Sigma Business Scorecard (2004), McGraw Hill.
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Figure: An Example of Business Performance Index
Measurements Category Abbreviation
Category Significance
Performance Against Plans
Index Contribution
1. # Employees Recognized for Excellence
LNP 15 50 7.5
2. Profitability LNP 15 75 11.253. Rate of Improvement (All departments)
MAI 20 60 12
4. Recommendations per Employee EAI 10 60 65. Total Spend / Sales PSM 5 80 46. Suppliers Defect Rate (Sigma) PSM 5 60 3
8. Process Defect Rate (Sigma) OPE 5 80 49. New Business ($)/Total Sales($) SND 10 90 910. Customer Satisfaction SAG 10 80 8
Corporate Wellness (BPIn) 67.75%Corporate DPU 0.3893Corporate DPMO (15 executives) 25,956Corporate Sigma 3.44
37. Operational Cycle Time Variance from Planned
OPE 5 60
Corporate Sigma Level 2003
Source: Gupta, Six Sigma Business Scorecard (2004), McGraw Hill.
Six Sigma Tenet – Measure what you value
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The Best Scorecard Book (2003)
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Innovation for Six Sigma 2005
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Process Model (4P) for Excellence (2006)Prepare(To do well)
Material/ Information
Machines/ Tools
Method/ Approach
Mind/ Skill
Input OutputPerform
(Well)
Perfect ? (On target)
Send
Progress(Reduce Variability)
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Strategy for Execution Map (2006)
/ Lean
Drivers Growth
Profit
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Acceptability vs. Excellence (2007)
LSL USLWe build to limits, and check for acceptability through inspection within limits
3.4 DPMO
LSL USLTarget
Acceptable
Excellence
MarginalOutput
MarginalOutput
No MarginalOutput
No MarginalOutput
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Going beyond PDCA to 4-P’s
Russian
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Key Books
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Thank you!
For more information, please [email protected] Free: (800) 680-0700Tel: (847) 884-1900www.accelper.com
www.ibusinessinnovation.comwww.businessinnovationconference.com
“I believe creativity happens, but I also believe that Mr. Gupta has helped uncover a way to make innovation happen.”
- Dipak Jain, Dean, Kellogg School of Management