History of Six Sigma[1]

7/28/2019 History of Six Sigma[1]

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Lean SixSigma

Copyright 2005, AIT Group Inc. All rights reserved. 1

Lean Six SigmaLean Six SigmaHistory of Six SigmaHistory of Six Sigma


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Lean SixSigma


Six Sigma History


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Lean SixSigmaSix Sigma History

Motorola was the first advocate in the 80s Six Sigma Black Belt methodology began in late 80s/early 90s

More recently, other companies have embraced Six Sigma:

GE

Allied Signal

Bombardier

Sony Project implementers names includes Black Belts, Top Guns, Change

Agents, Trailblazers, etc.

Implementers are expected to deliver annual benefits between $500,000

and $1,000,000 through 3-5 projects per yearTop-down program with Executive and Champion support

Outwardly focused on Voice of the Customer, inwardly focused on usingstatistical tools on projects that yield high return on investment


4/11Copyright 2005, AIT Group Inc. All rights reserved. 4

Lean SixSigmaSix Sigma History

Nobody at GE gets promoted without Six Sigma training.GE annual report examples:

10-fold increase in life of CT scanner x-ray tubes

Improved yields of super-abrasives worth a full decade ofincreased capacity despite growing demands

62% reduction in turn-around time of railcar leasing repairs

Plastics business added 300 million pounds of new capacity equivalent to one free plant



Lean SixSigma

How Complex Are Your Products & Services?(% Shippable without Rework)

# of Parts 3

4

5

6

or Steps (Cp=1.00)* (Cp=1.33)* (Cp=1.67)* (Cp=2.00)*

1 93.32% 99.38% 99.98% 99.9997%

2 87.08% 98.76% 99.95% 99.9993%

3 81.27% 98.15% 99.93% 99.9990%4 75.84% 97.54% 99.91% 99.9986%

5 70.77% 96.93% 99.88% 99.9983%

10 50.09% 93.96% 99.77% 99.9966%

30 12.56% 82.96% 99.30% 99.9898%50 3.15% 73.24% 98.84% 99.9830%

100 0.10% 53.64% 97.70% 99.9660%

300 15.43% 93.26% 99.8980%

500 4.44% 89.02% 99.8301%1,000 0.20% 79.24% 99.6605%

3,000 49.75% 98.9849%

5,000 31.24% 98.3140%

10,000 9.76% 96.6564%

* Distribution shifted by 1.5



Lean SixSigmaWhy 99% Is Not Good Enough

The goodness level of 99% equates to:20,000 lost articles of mail per hour

5,000 incorrect surgical operations per week200,000 wrong drug prescriptions each year

No electricity for almost 7 hours per month



Lean SixSigmaSix Sigma Defined

What Six Sigma Is: An enabler to business strategy Places customers at the center of performance improvements

Fact-based approach for improving business processes and solving business

problems A proven methodology and toolset supported by deep training and mentoring

Focused on reducing variability of processes

A way to develop highly skilled business leaders

A means for creating capacity in organizations

What Six Sigma Is Not: A business strategy

A way to develop statisticians and engineers Only for manufacturing companies

Only about cost reductions

A flavor of the month approach

An approach that slows decision making and business outcomes



Lean SixSigmaBut Six Sigma Alone Has Holes

Six Sigma lacks many concepts and tools lean is strong inSet-up reduction

Waste elimination

Mistake Proofing

Cycle-time improvement

Process simplification

Work in process control and reduction

Six Sigma has long time-lines for projects (4-18 months)compared to Lean (1-4 months)

Six Sigma specialists (Black Belts) are often less productive

than Lean specialistsSix Sigma Black Belts do 3-5 projects a year

Dedicated Lean project leaders do 10-20 projects a year

Six Sigma is often seen as being too slow


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Lean SixSigmaAuthor

Steven Bonacorsi is a Senior Master Black Belt instructor andcoach. He has trained hundreds of Master Black Belts, Black Belts,Green Belts, and Project Sponsors and Executive Leaders in LeanSix Sigma DMAIC and Design for Lean Six Sigma processimprovement methodologies. Steven is a board member for theBoston Chapter of the Industry of Industrial Engineers.

Full Bio: http://www.linkedin.com/in/stevenbonacorsi

The AIT Group, Inc.Steven Bonacorsi, Vice PresidentLean Six Sigma Master Black Belt3135 South Price Road, Suite 115Chandler, AZ 85248-3549Phone: +(1) 888.826.2484E-mail: [email protected]

Web: http://www.theaitgroup.com

L M b Th AIT G
http://www.linkedin.com/in/stevenbonacorsimailto:[email protected]://www.theaitgroup.com/http://www.theaitgroup.com/mailto:[email protected]://www.linkedin.com/in/stevenbonacorsi


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Lean SixSigma

Learn More about The AIT Grouphttp://www.theaitgroup.com


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Lean SixSigmaWho is AIT?

AIT is a premier provider of Lean, Six Sigma andSupply Chain solutions.

Solutions are customized to the customer notone size fits all.

The company was started in 1998 by three

individual that recognized extremely early in theindustry how well Lean, Six Sigma and SupplyChain disciplines integrate.

Our goal is the complete transfer of knowledgevia client specific solutions not training.

Your instructors from AIT are Certified MasterBlack Belts and Lean Experts.

We have worked with many different clients andsome of the largest companies in the world.

We have Offices in the US, Europe, Mexico andChina.

Lean

Six Sigma

SupplyChain

Mgmt.Value

$

The AIT Group excels in implementation not recommendation!The AIT Group excels in implementation not recommendation!

The AIT Group is an international

consulting firm that has beenspecifically designed to help

companies increase profitability byimproving overall businessperformance and customer

satisfaction through the integratedapplication of:

www.theAITgroup.com

History of Six Sigma[1]

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