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Six Sigma Notes
Six Sigma Notes
Six Sigma Notes
To
summarize:
Six Sigma is a methodology that aims to reduce the deviation from a set norm or goal.
The norm is the goal set by an organization, such as 99% of trains arriving on time
for Japan Railways.
If the actual performance deviates from this norm (e.g., only 95% of trains arrive on
time), Six Sigma helps to close this gap.
The Sigma Score is a metric that shows the distance between the reality and the
norm. The closer the performance is to the norm, the higher the Sigma Score.
Six Sigma can be applied in any industry, from railways to hotels, and it’s flexible
enough to handle norms that are a single value or a range.
The norm is usually set by the organization itself, but sometimes it can be dictated by
external entities like the government.
In Six Sigma, a defect is defined as any instance where the performance does not
meet the norm.
Six Sigma: It’s a method that provides organizations tools to improve the capability
of their business processes. The goal is to improve quality by reducing defects and
variability in processes.
Sigma Score: It’s a measure of quality that strives for near perfection. It is a statistical
representation of how well a process is performing.
Example: In the context of a manufacturer of machine components, the norm size for
the components is between 54mm and 56mm. Any component smaller than 54mm or
bigger than 56mm is considered a defect.
Defects and Sigma Score: The more a process moves towards the norm (i.e., the less
defects it has), the higher the sigma score becomes.
Defects per Million Opportunities (DPMO): This is a measure of process
performance. For example, with a sigma score of six, out of 1 million components
produced, there would be 3.4 components that would fall outside the norm (i.e., be
defects).
Sigma Score of Six: This is considered special because for most industries, it is a
realistic and worthwhile goal. However, it’s not the norm for every industry. Some
industries, like aviation suppliers, work with higher sigma scores due to the critical
nature of their work.
Expectations for a Six Sigma White Belt: They should have a basic awareness of
Six Sigma, including DMAIC and what happens in its various phases. They should
understand the essence of Six Sigma, which is closing the gap between norm and
reality. They should also know what the sigma score is and how it increases. Finally,
they should understand how Six Sigma relates to other methodologies. They are not
expected to work with these values yet or to master the Six Sigma tools.
Certainly! Let’s break down Six Sigma into simple bullet points:
Certainly! Let’s break down the concept of Six Sigma into simple bullet points:
Remember, Six Sigma isn’t magic—it’s a structured approach to achieving better results! 🌟
he origin of Lean is Japan where it started at the Toyota Corporation and was known as the
Toyota Production System. By contrast, Six Sigma started in the US at the Motorola
Company. The essence of Lean is to reduce waste. Waste is defined as activities that do not
add value. Contrary to popular belief, Lean is not just a manufacturing methodology. Lean is
just as useful in services. However, when you primarily focus on those parts of Lean that
optimize manufacturing, we refer to that filtered methodology as Lean Manufacturing. When
you primarily focus on those parts of the Lean methodology that help IT professionals, we
refer to that filtered methodology as Lean IT.
Lean is a way of working, it is a way of thinking, it is a way of arranging. In a way, you could
see Lean as a sort of philosophy of which the aim is pretty much always the same: Reduce
'waste' so that
there are less activities involved in production and as such the customer can get the
product or service faster.
the number of activities involved in the process drops, so that the costs drop and
profits thus rise.
As such, the practical use of Lean is pretty much limited to the two aforementioned points.
Six Sigma is not limited to those two points. Six Sigma is a project which involves fixing
some kind of deviation from a norm that a company has set. Examples:
The telephone helpdesk of videogame designer EA Games wants customers to wait a
maximum of 5 minutes before they are helped. The 5 minutes is the norm. If they are
currently not meeting that norm, Six Sigma can help them achieve that norm through
a Six Sigma project that goes through the DMAIC sequence.
The New York Yankees (a U.S. baseball team) want to sell a minimum of $15 of
merchandise to visitors of their stadium. The $15 is the norm. If they are currently not
meeting that norm, Six Sigma can help them achieve that norm through a Six Sigma
project that goes through the DMAIC sequence.
Mercedes Benz wants its E-class Diesel engine to run at least 1.5 million kilometers
before breaking down. The 1.5 million kilometers is the norm. If they are currently
not meeting that norm, Six Sigma can help them achieve that norm through a Six
Sigma project that goes through the DMAIC sequence.
As you can see, Six Sigma is meant for other purposes than Lean. However, many of the
tools in the Lean toolbox actually do a great job in various parts of the Six Sigma DMAIC
sequence. That is the reason why many Six Sigma professionals also become Lean
professionals and thus become Lean Six Sigma professionals. Strictly speaking though, these
two are completely separate methodologies.
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Certainly! Let’s break down the relationship and differences between Six Sigma and Kaizen
in simple bullet points:
1. Purpose:
o Six Sigma: Aims to reduce defects and variations in processes to achieve near-
perfect quality.
o Kaizen: Emphasizes continuous improvement in all aspects of an organization
(e.g., processes, products, and people).
2. Approach:
o Six Sigma: Uses a data-driven methodology to identify and eliminate the root
causes of problems.
o Kaizen: Focuses on making work environments better, which has a positive
impact on overall performance.
3. Implementation:
o Six Sigma: Relies on statistical analysis and structured problem-solving.
o Kaizen: Emphasizes incremental changes and employee involvement.
4. Philosophy:
o Six Sigma: Strives for perfection by minimizing defects.
o Kaizen: Believes that small, continuous positive changes lead to significant
improvements.
Remember, both Six Sigma and Kaizen contribute to process improvement, but they take
different paths to achieve it. Six Sigma uses technical data, while Kaizen focuses on creating
Remember, Agile originated from software developers for software developers, while Six
Sigma has broader applicability but primarily focuses on deviation reduction. Both
Scrum is about maintaining a continuous connection with the project environment to ensure
that the project remains relevant and efficient, even as external conditions change. This
makes it a robust framework for managing complex projects that require flexibility and quick
adaptation.
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The Define phase in Lean Six Sigma is crucial as it sets the foundation for the project. Here’s
a simplified breakdown:
Identify the Problem: Clearly articulate the issue that needs resolution.
Set the Objective: Determine what the project aims to achieve.
Select the Project: Choose the project carefully, considering the preferences and
opinions of all team members.
Allocate Resources: Decide on the human, financial, and material resources required.
Plan the Timeline: Establish a realistic schedule for project completion.
Use Decision-Making Tools: Employ tools and methods to facilitate democratic
project selection and avoid dominance by the most vocal member.
This phase is about setting clear goals, boundaries, and ensuring that every team member is
aligned with the project’s direction. The use of a structured tool to select the project helps in
making an objective decision that aligns with the organization’s goals and the team’s
capabilities.