Six Sigma Light Overview

Six Sigma Overview
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What is Six Sigma?
1
What is Sigma?
• A Metric
– Something we can measure for any process
• Philosophy
– Becomes part of our culture
• Is defined to be the standard deviation
What is Six Sigma?

A Statistical Metric
Defects per
Ζ/σ Million
opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
2
What is Six Sigma Performance?
99% Good (3.8σ
σ) 99.99966% Good (6σ
σ)
• 20,000 lost articles of mail per • Seven articles lost per hour
hour
• Unsafe drinking water for • One unsafe minute every seven
almost 15 minutes each day months
• 5,000 incorrect surgical • 1.7 incorrect operations per
operations per week week
• Two short or long landings at • One short or long landing every
most major airports each day five years
• 200,000 wrong drug • 68 wrong prescriptions per year
prescriptions each year
What is Six Sigma
• Allows us to draw comparisons to other similar or dissimilar

products, services and processes.
• Six Sigma level will only yield about three instances of
non-conformance out of every million opportunities for non-
conformance, (whereas four sigma translates to about
6,200 instances)
• Normally, DMAIC (or Define, Measure, Analyze, Improve &
Control) methodology is used
3
What is Six Sigma?
First Thoughts
• 3.4 PPM defective long term

• Cpk = 2.0
• The customer specs are much wider than my process
capability.
• I always thought 4 sigma (Cpk=1.33) was “good
enough”.
– Sigma - a measure of the statistical variation about a target value
– Parts Per Million defective - number of units expected to be found
defective in a lot size of 1 million
– CpK - the ability of the process to meet the range and target
specifications (i.e. is the process centered on the target and in the
desired range)
– NO. IT IS MUCH MORE THAN THIS!!!!!!!!
What is Six Sigma ?

A random sampling of definitions
• 6σ is not magic or high tech razzle-dazzle.

• 6σ is a change process.
• 6σ helps organizations make money.
• 6σ identifies and eliminates costs which provide no value to
customers.
• 6σ is a rigorous, focused, and highly effective implementation of
proven principles and techniques.
• 6σ is a management system focused to deliver cash to the
bottom line.
• 6σ is a strategic and tactical system for managing the whole
business.
• 6σ is a systematic methodology that is focused on achieving
significant financial results.
• 6σ is a quality culture of strategies, statistics, and tools for
improving a company’s bottom line.
4
What Is Six Sigma?
Six Sigma is a highly technical method used by

engineers and statisticians to fine-tune products
and processes. YES AND……….
Six Sigma is a goal of near-perfection in meeting
customer requirements. YES AND ……….
Six Sigma is a sweeping culture change effort to
position a company for greater customer
satisfaction, profitability, and competitiveness.
YES AND ……….
Pande
Six Sigma : A Definition
A comprehensive and flexible system for

achieving, sustaining and maximizing business
success. Six Sigma is uniquely driven by close
understanding of customer needs, disciplined
use of facts, data, and statistical analysis, and
diligent attention to managing, and reinventing
business processes.
Pande
5
What is Six Sigma?
Process Perfection through Defect Reduction
“Only those companies that eliminate their defects will have what it takes to
win.”
“Breakthrough companies strive for 100 percent DEFECT-FREE products

and services.”
Larry Bossidy
CEO of AlliedSignal
ASQ
Process Performance
• A set of causes and conditions that
repeatedly come together to transform
inputs into outcomes
– Inputs: Information, Materials, ....
– Outcomes: Products, Information,…
• Quality characteristics of the outcomes are
indicators of performance
– Will vary over time and location, and analysis
of this variation is generally a basis for action
Nolan and Provost. Quality Progress, May 1990

6
Quality Processes Yield Quality Results
Inconsistent Inconsistent
Process Results
Traditional = People doing whatever they can to get results
Consistent Desired
Process Results
Six Sigma Process = People reducing variation in the process

and making it consistent, to get desired results
“Six Sigma”
A 3σ
σ process - because 3 standard
deviations fit between target and
acceptance goalposts
“Six Sigma
Before
Target Customer Process”
Process”
σ
3σ Specification
σ
1σ
σ
2σ
σ
3σ
“Defects ~ 66807 ppm” After
Target
σ
6σ Customer
Specification
Continuous improvement:
By reducing variability σ
1σ
we improve the process σ
3σ
σ
6σ
“Defects ~ 3.4 ppm”
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7
What is the current “sigma” value?
For many products and processes:

Process Quality at about “2σ”?
Product Quality < “5σ”?

If so, are we not trapped in a “corrective action crisis”
and also wasting lot of resources?
Understanding Variation
• All processes have variability

– Manufacturing as well as administrative
• Variation due to:
– Common causes
– Special causes
• Control the important causes of variability
– First all special causes
– Then reduce the common causes
8
• Normal curve – “bell-shaped”

• Normal distribution is the most common
pattern of variation in nature
• Normal curve can be described through its
center-line (the mean) and by its spread
(standard deviation or “sigma”)
The averages of a series of samples:

– Have a standard deviation smaller than for the
distribution of the individual samples
– Have a normal distribution even if the curve
for the individuals is not bell-shaped
9
Decisions: Interpretation of variation
• Decisions are often based on interpretation of

patterns of variations
– Indicative of a trend or of random variation (that is
similar to what has been observed in the past)
– Misinterpretation leads to losses
• Blaming people for problems beyond their control
• Spending unnecessary resources investigating and/or taking
actions to address perceived trends nothing has changed
• “Crying wolf” too often may desensitize a quality system and
reduce its alert level to address a “real wolf” when one will
appear
Stable and Unstable Process
• A process (or a system) that has only common

cause affecting the outcomes is called a stable
process (in a state of statistical control)
– When such a process is demonstrated to meet its
intended function, variation in such a system are
acceptable
• When both common and special cause affect the
outcomes – Unstable process (magnitude of
variation from one time period to the next is
unpredictable)
10
Stable and Unstable Process
Stable & Capable Unstable
Benefits of a Stable Process (Deming)

• The process has an identity; its performance is
predictable
– Rational basis for planning leading to the concept of
“just in time”
• Cost of quality is predictable - Output is at
optimum and costs at a minimum for a given
system
• The effect of changes in the process can be
measured with greater speed and reliability
– In an unstable system it is difficult to separate changes
to the process from “special causes”. Therefore, it is
difficult to know when a change results in improvement

11
Six Sigma History
Brief History:
• Continuous Improvement tools made popular by
Deming, Juran, Shewhart, Ishikawa & Taguchi in
the sixties, seventies and eighties
• Motorola introduces the concept of “Six Sigma”
quality (3.4 ppm philosophy)
• Firms like GE, Allied Signal (now Honeywell)
publicized benefits of Six Sigma
More Six Sigma History
• ASQ and others start Six Sigma training &

certifications
• Many firms call their continuous improvement
programs as Six Sigma (or roll their existing
programs into “Six Sigma”), but not necessarily
using strictly statistical tools
12
Six Sigma
• Is rigorous, data-driven: both collection and analysis

• Linking improvements to stake-holders (internally
& externally):
– To the organization’s strategic goals
– To the “Voice of the customer”, and critical to Quality in
the customers’ eyes
– Internal “Process Owners”
– Tight linkage to quality tools
– Project Charter & Plan, Project Team, ROI calculation
– The five stage process (DMAIC)
Six Sigma Define the problem and define

Customer requirements.
Measure
defect rates and
Define document the
process in its
current incarnation.
Control Measure Analyze process data and
Determine the capability of
the process.
Improve the process and
Remove defect causes.
Control process performance
And ensure that defects do
not recur.
Improve Analyze
Six Sigma Innovation & the DMAIC Algorithm

13
Six Sigma - Define
DEFINE phase
• Project Charter:
– Define the defect/problem, the scope of the Six Sigma
project, the customer and the business impact
– CTQ (Critical to Quality) for the customer
– Assign target dates, resources
– Set improvement goals
– Confirm strategic business linkage
– Process Mapping can be used as a tool to
understand the “Current State”
Six Sigma - Measure
MEASURE phase
• Understand the “Current State” through baseline
performance assessment
• Validate that the current measurement system is
accurate
• Verify the current Cost of Poor Quality (COPQ)
• Use tools such as Process Capability studies,
Gage R & R, Cost-Benefit analysis, Process
Map, Risk analysis (e.g. FMEA, contingency
plans, etc.)
14
Six Sigma - Analyze
ANALYZE phase
• Uncover the root cause(s) of the defect
• Once potential factors are isolated, use statistical
or quality tools to see the cause & effect relationship
• Use graphical analysis tools (e.g. scatter diagrams,
run charts, etc.), statistical testing (e.g. hypothesis
testing, regression, ANOVA, etc.),
Six Sigma - Improve
IMPROVE phase
• Now that the identification of root cause(s) is
done:
– Make side by side comparison of the proposed
solutions
– Benchmark against competition’s performance, if
possible
15
Six Sigma - Improve
IMPROVE phase
– Predict our improved performance when the problem
is fixed. If the projected savings are not worth the
effort, abort the project at this stage before more
resources are spent
– Use DOE, EVOP, and other statistical tools in this
phase of the DMAIC cycle.
Six Sigma - Control
CONTROL phase
• Integrate the solution into the operational
environment
• Standardize, so as not to slip back
• Migrate “lessons learnt” across the organization
• Use SPC techniques, updated process
capability, update FMEA, update Process Map,
Lean tools, error-proofing, etc.
16
Tools used in each Phase
Define
• Strategic link to Business Plan
• Defined Business Impact
• Structured Brainstorming
• Cause and Effect Diagrams to identify critical
factors
• Metrics defined and charted
• Develop a focused Problem Statement and
Objective(s)
Measure
• Develop a Process Map and/or FMEA
• Develop a Current State Map
• Identify the variables and how to measure them
• Analyze measurement system capability
• Assess the specification (Is one in place? Is it
the right one?)
17
Analyze
• Look at the raw data and Characterize the response
• Abnormal? Other clues? Mean or Variance
problem?
• Spaghetti Diagram
• Takt Time
• Future State Map
• Standard Work Combination (as part of Standard
Work)
• Use Graphical Analysis, ANOVA, and other
statistical tools
Improve
• 5S & Visual Controls
• Setup Time Reduction (SMED)
• Pull System, Kanban
• Cell Design, Level Loading, Line Balancing
• Use of Design of Experiments (DOE)
• Move the distribution if necessary, Shrink the
spread, Confirm the results
18
Control
• Mistake proof the process - Poka-yoke,
Autonomation
• Measure the final capability
• Deploy the appropriate process controls
• On the critical characteristics:
– Document the efforts and results
– Standard Work
– TPM
Benefits of Six Sigma
• Eliminate waste and variation

• Improved quality
• Reduced costs for suppliers reduced price for
the customer
• Better delivery and customer satisfaction
• Smoother, seamless, supply chain
• Less overproduction, inventory costs,
obsolescence
• More predictability and consistency
19
People Power:
Executive Sponsor
Deployment Champion /
Process Owner
Master Black Belt
Black Belt
Green Belt Green Belt Green Belt

Six Sigma - Roles
Roles:
• Blackbelt
• Master Blackbelt
• Greenbelt
• Executive Sponsor
• Deployment Champion
• Process Owner
20
Six Sigma - Blackbelt
Blackbelt
• The technical process expert
• Familiar with the DMAIC phases and quality &
statistical tools
• Often act as the project manager, facilitator
• Normally, trained for four weeks in Six Sigma
Six Sigma – Master Blackbelt
Master Blackbelt
• Responsible for training other roles in Six Sigma
• Provide on-going support wherever needed
• Partner with process owners and deployment
champions to develop and prioritize the business
transformation plan, aligning projects, etc.
• Coach Blackbelts on tools & techniques
• Training: After Blackbelt training, additional 2 to 3
weeks more, typically with a time gap of 12 to 18
months
21
Six Sigma – Greenbelt
Greenbelt
• Typically, work on projects in their subject areas
only (as subject matter experts)
• Support the Blackbelts
• Responsible for the “Control” phase
• Training can be from 2 days to 4 weeks
Six Sigma - Sponsor
Executive Sponsor
• Responsible for:
– Securing funding
– Providing resources
– Removing roadblocks
– Co-ordinating between all impacted parties
– Rewarding the project team
– Training normally runs from one-half to 2 days
22
Six Sigma - Champion
Deployment Champion
• High ranking person in the firm
– Setting the long term vision
– Planning and supporting change management
– Co-ordinating the Six Sigma management system
– Ensuring the linkages between the projects and the
business goals and tied to the “voice of the customer”.
– Creating the project portfolio & prioritization.
Six Sigma - Champion
Deployment Champion
– Helping with Six sigma team formation.
– “Owning” the Define phase with input from the Master
Blackbelt
– Preventing conflicts between functions, different
improvement efforts, etc.
– Typically, the training is for 2 to 3 days
23
Six Sigma – Process Owner
Process Owner
• Works in the individual business units
– Project reviews
– Providing any additional resources
– Approving the solutions
– Maintaining ownership once the project is complete
– Training normally runs 1 to 2 days
Six Sigma - Plan
Master Plan for Six Sigma:

• Communication & Change Management
• HR issues
– Pay, recognition, incentives, retention
– Six Sigma training & certification
– Avoid another layer of bureaucracy
– Conflict resolution
24
Six Sigma - Plan
Master Plan for Six Sigma:

– Initial deployment considerations: Centralized support
from “Center of Excellence”, Consulting Team,
Training Staff, Infrastructure for Customer
Satisfaction, Benchmarking and Measurement
Six Sigma : 5 Hidden Truths
[#1] Six Sigma encompasses a broad array of

business best practices and skills that are essential
ingredients for success and growth.
[#2] It works just as well in leading an entire
organization as it does a department - it’s scalable.
[#3] Potential gains are equally significant in service
organizations and non-manufacturing activities.
[#4] It is as much about people excellence as it is
about technical excellence.
[#5] Done right, Six Sigma improvement is thrilling
and rewarding.
Pande
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Six Sigma Overview

© Copyright. All rights reserved 1

What is Six Sigma?

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What is Six Sigma?

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What is Six Sigma

• Allows us to draw comparisons to other similar or dissimilar

© Copyright. All rights reserved 6

• 3.4 PPM defective long term

© Copyright. All rights reserved 7

What is Six Sigma ?

• 6σ is not magic or high tech razzle-dazzle.

© Copyright. All rights reserved 8

Six Sigma is a highly technical method used by

© Copyright. All rights reserved 9

Six Sigma : A Definition

A comprehensive and flexible system for

© Copyright. All rights reserved 10

“Breakthrough companies strive for 100 percent DEFECT-FREE products

© Copyright. All rights reserved 11

Nolan and Provost. Quality Progress, May 1990

Traditional = People doing whatever they can to get results

Six Sigma Process = People reducing variation in the process

“Defects ~ 66807 ppm” After

For many products and processes:

Product Quality < “5σ”?

• All processes have variability

© Copyright. All rights reserved 16

• Normal curve – “bell-shaped”

© Copyright. All rights reserved 17

The averages of a series of samples:

© Copyright. All rights reserved 18

• Decisions are often based on interpretation of

© Copyright. All rights reserved 19

Stable and Unstable Process

• A process (or a system) that has only common

Stable & Capable Unstable

© Copyright. All rights reserved 21

Benefits of a Stable Process (Deming)

Nolan and Provost. Quality Progress, May 1990

© Copyright. All rights reserved 23

More Six Sigma History

• ASQ and others start Six Sigma training &

© Copyright. All rights reserved 24

• Is rigorous, data-driven: both collection and analysis

© Copyright. All rights reserved 25

Six Sigma Define the problem and define

Six Sigma Innovation & the DMAIC Algorithm

© Copyright. All rights reserved 27

Six Sigma - Measure

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Six Sigma - Improve

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Six Sigma - Control

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Tools used in each Phase

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