Introduction to Introduction to Six SigmaSix Sigma

Learning ObjectivesLearning Objectives

The Need for Six SigmaThe Need for Six Sigma

Six Sigma - Vision, Philosophy and Statistical Six Sigma - Vision, Philosophy and Statistical MethodMethod

Breakthrough Strategy and Focus of Six Breakthrough Strategy and Focus of Six SigmaSigma

Six Sigma System - Black Belts, Green Belts Six Sigma System - Black Belts, Green Belts and Managementand Management

Why Implement Six Sigma Now?Why Implement Six Sigma Now?

““Nothing New”Nothing New”

– Most of the Six Sigma tools have been Most of the Six Sigma tools have been around for decadesaround for decades

– Neglected due to difficulty and disciplineNeglected due to difficulty and discipline

BUTBUT

Worldwide competitionWorldwide competition

– Makes neglect dangerousMakes neglect dangerous

Computing resourcesComputing resources

– Makes application possibleMakes application possible

99% Good is Not Good Enough99% Good is Not Good Enough5,000 incorrect surgical 5,000 incorrect surgical procedures each weekprocedures each week

20,000 lost articles of mail 20,000 lost articles of mail each houreach hour

No electricity for almost 7 No electricity for almost 7 hours each monthhours each month

Unsafe drinking water for Unsafe drinking water for almost 15 minutes each almost 15 minutes each dayday

Where Does Industry Stand?Where Does Industry Stand?

7

Sigma Scale of Measure

1,000,000

100,000

10,000

1,000

100

10

1

PPM

••

Restaurant BillsDoctor Prescription Writing

Payroll ProcessingOrder Write-up

Journal VouchersWire Transfers

Airline Baggage Handling

Purchased Material

Lot Reject Rate

Domestic Airline Flight Fatality Rate (0.43 PPM)

Best-in-Class

Average

Company

3 4 5 621

IRS - Tax Advice

(phone-in)(140,000 PPM)

Six Sigma View of QualitySix Sigma View of Quality

100% Inspection Inefficient100% Inspection Inefficient

Management Management involvementinvolvement is KEY is KEY

Focus on the ProcessFocus on the Process

Continuous Improvement is a Philosophy of Continuous Improvement is a Philosophy of Doing BusinessDoing Business

Reduction of VariationReduction of Variation

Six Sigma FocusSix Sigma Focus

Delighting the Customer through Flawless Execution

Rapid Breakthrough Improvement

Advanced Breakthrough Tools that Work

Positive and Deep Culture Change

Real Financial Results

Passion + Execution = Fast and Lasting Results

Six Sigma is a VisionSix Sigma is a Vision

The Vision of Six SigmaThe Vision of Six Sigma is to is to delight delight customers by customers by

delivering world-class quality products through the delivering world-class quality products through the

achievement of Six Sigma levels of performance in achievement of Six Sigma levels of performance in

everything we do.everything we do.

Six Sigma is a PhilosophySix Sigma is a Philosophy

The Philosophy of Six Sigma is to apply a The Philosophy of Six Sigma is to apply a

structured, systematic approach to achieve structured, systematic approach to achieve

breakthrough improvement across all areas of our breakthrough improvement across all areas of our

business. business.

Six Sigma is a Statistical MethodSix Sigma is a Statistical Method

Know what’s important to the Know what’s important to the

Customer (CTQ’s)Customer (CTQ’s)

Reduce defectsReduce defects

Center around targetCenter around target

Reduce VariationReduce Variation

Breakthrough StrategyBreakthrough StrategySix Sigma – Six Sigma Enables Breakthrough Level Improvement!

Impr

ovem

ent

Six Sigma Breakthrough Strategy

• Trained & Dedicated individuals• Analytical Expertise• > 70% Improvement per project

1 2 3 4Time in Years

Standard Approaches• Current Tools• Kaizen• Lean Manufacturing• Re-engineering• Typical TQM

The problem with continuous improvements as the only goal Organization sees improvement BUT loses the game.

Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

2 308,5373 66,8074 6,2105 2336 3.4

PPMPPM

ProcessCapability

ProcessCapability

Defects per Million Opp.

Six Sigma - Aggressive GoalSix Sigma - Aggressive Goal

What does a 6 sigma process What does a 6 sigma process look like ?look like ?

Average Deviation from Mean

11

TTUSLUSL

p(d)

1 2 3 4 5 6

3

This is a 6 Sigma Process

99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour

Unsafe drinking water for almost 15 minutes each day

5,000 incorrect surgical operations per week

Two short or long landings at most major airports each day

200,000 wrong drug prescriptions each year

No electricity for almost seven hours each month

Seven articles lost per hour

One unsafe minute every seven months

1.7 incorrect operations per week

One short or long landing every five years

68 wrong prescriptions per year

One hour without electricity every 34 years

99% Good (3.8 Sigma)

Six Sigma - Practical MeaningSix Sigma - Practical Meaning

If we are so good at X, why do we constantly test and inspect Y?

X1 . . . XN

Independent Input-Process Cause Problem Control

To get results, should we focus our behavior on the Y or X?

f (X)f (X)Y=Y=

Focus on X rather than Y, as done historically

Y Dependent Output Effect Symptom Monitor

Focus of Six SigmaFocus of Six SigmaKPIV

KPOV

*

Strategy of Six SigmaStrategy of Six SigmaIdentifying Identifying criticalcritical aspects of the business with aspects of the business with problems or opportunities for improvementproblems or opportunities for improvement

Targeting those critical areas and designating Targeting those critical areas and designating improvement efforts as improvement efforts as Six Sigma Black BeltSix Sigma Black Belt projectsprojects

Selecting Selecting Black Belts Black Belts from among the best people to from among the best people to work on the projects--work on the projects--full timefull time

Ensuring these people have the Ensuring these people have the time, tools, and time, tools, and resourcesresources they need to succeed they need to succeed Includes 4 months of extensive Six Sigma training Includes 4 months of extensive Six Sigma training

(4 weeks classroom, 12 weeks execution)(4 weeks classroom, 12 weeks execution)

Black BeltsBlack Belts lead improvement efforts on projects chosen by their lead improvement efforts on projects chosen by their ChampionsChampions

Dedicated resource of highly skilled, trained and focused individualsDedicated resource of highly skilled, trained and focused individuals

RigorousRigorous selection criteria... among the best people on their site selection criteria... among the best people on their site

A Black Belt performs 4 to 6 projects per year with a minimum of 2 A Black Belt performs 4 to 6 projects per year with a minimum of 2 years assignment commitment years assignment commitment

Results in up to $1M savings/year/Black BeltResults in up to $1M savings/year/Black Belt

The BB ensures that the specific process (sequence) is followed for The BB ensures that the specific process (sequence) is followed for each project --- Measure, Analyze, Improve, and Controleach project --- Measure, Analyze, Improve, and Control

Focus is on fixing the causes using these tools - Y=F(X)Focus is on fixing the causes using these tools - Y=F(X)

Utilizes problem solving tools provided through Training and MiniTab Utilizes problem solving tools provided through Training and MiniTab statistical software (DOE, FMEA, etc.)statistical software (DOE, FMEA, etc.)

Some Black Belts are selected to perform Green Belt trainingSome Black Belts are selected to perform Green Belt training

Six Sigma System - Black BeltsSix Sigma System - Black Belts

Green BeltsGreen Belts are the professional, salaried employees, including are the professional, salaried employees, including managers, who are not Champions or Black Belts. They have key managers, who are not Champions or Black Belts. They have key roles in deploying Six Sigma.roles in deploying Six Sigma.

Assist Black Belts in completing sections of their projectsAssist Black Belts in completing sections of their projects

Receive detailed training over the next three years to Receive detailed training over the next three years to improve their data collection, analysis and problem solving improve their data collection, analysis and problem solving capabilitycapability

Will apply their learning in their daily performance of their Will apply their learning in their daily performance of their jobsjobs

Will broadly use many of the Six Sigma methods and tools, Will broadly use many of the Six Sigma methods and tools, including FMEA, DOE, SPC, etcincluding FMEA, DOE, SPC, etc

Will be ready-trained as the first round of Black Belts Will be ready-trained as the first round of Black Belts complete their two-year assignmentscomplete their two-year assignments

Six Sigma System - Green BeltsSix Sigma System - Green Belts

ManagementManagement is responsible to help drive the total employee is responsible to help drive the total employee population to a higher level of problem solving proficiencypopulation to a higher level of problem solving proficiency

Identifies their best candidates for Black Belt appointmentIdentifies their best candidates for Black Belt appointment

Demonstrates high enthusiasm to keep Six Sigma moving Demonstrates high enthusiasm to keep Six Sigma moving forwardforward

Provides the lead at getting Green Belts (including Provides the lead at getting Green Belts (including themselves) identified and through trainingthemselves) identified and through training

Asks the right questions to all employees to assure the Asks the right questions to all employees to assure the discipline of Six Sigma and its tool kit are properly and fully discipline of Six Sigma and its tool kit are properly and fully exploitedexploited

Drives the broad use of Six Sigma methods and tools, Drives the broad use of Six Sigma methods and tools, including FMEA, DOE, SPC, etcincluding FMEA, DOE, SPC, etc

Owns day-to-day & career management of the Black Belt, Owns day-to-day & career management of the Black Belt, including appropriate placement when Black Belt reintegratesincluding appropriate placement when Black Belt reintegrates

Six Sigma System - ManagementSix Sigma System - Management

End of TopicEnd of Topic

Any question?Any question?