SIX SIGMA PAST, PRESENT AND FUTURE

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What is Six Sigma

Six Sigma is the measure of quality that strives for near perfection. It is a disciplined, datadriven methodology focused on eliminating defects. A Six Sigma defect is defined as anything that falls outside of a customer's specifications. Six Sigma is a reference to a statistical measuring system, equivalent to just 3.4 defects per every million opportunities (Snee, 2003).
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WHY SIX SIGMA

Intense competitive pressures especially from rapid globalization. Greater consumer demand for high quality products and services, little tolerance for failures of any type. Top management (and stockholder) recognition of the high costs of poor quality. The availability and accessibility of large data bases and the increasing ability to explore, understand, and use the data.
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Sigma and % accuracy

Defects per Million % Accuracy Opportunities (DPMO) One Sigma 691,500 30.85% Two Sigma 308,500 69.15% Three Sigma 66,810 93.32% Four Sigma 6,210 99.38% Five Sigma 233 99.977% Six Sigma 3.4 99.9997% Seven Sigma 0.020 99.999998%
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Cost of poor quality

Fig. 1 Cost of poor quality versus Sigma level

Cost of poor quality as % of earnings

30% 20% 10% 0% 3 4 5 6 7

Sigm a Le ve l

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Inventor of Six Sigma

Motorola is known for its cool cell phones, but the company's more lasting contribution to the world is the quality-improvement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of Six Sigma.
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Six Sigma at Motorola

Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including:
Sales and Marketing Product design Manufacturing Customer service Transactional processes Supply chain management
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First, what it is not. It is not a secret society, a slogan, or a clich. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services
Saved $750 million by the end of 1998 Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity Streamlined contract review process, leading to faster completion of deals and annual savings of $1 million
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General Electric: What Is Six Sigma?

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Honeywell: Six Sigma Plus

Six Sigma is one of the most potent strategies ever developed to accelerate improvements in processes, products, and services, and to radically reduce manufacturing and/or administrative costs and improve quality. It achieves this by relentlessly focusing on eliminating waste and reducing defects and variations.
Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999. Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months. Increased market value by a compounded 27% per year through fiscal year 1998.

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Selecting the right projects for SIX SIGMA Assure that the importance of the projects is evident or can be readily demonstrated. Assure the projects are viable and doable in a short time. Assure that the success of the projects can be readily quantified.

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Executive Leadership Six Sigma Team

Project owner Implement solutions Black Belt managers

Own vision, direction, integration, results Lead change

Part-time Help Black Belts

Project Champions

Green Belts

Full time Train and coach Black and Green Belts Statistical problem solving experts

Master Black Belts

Black Belts
Devote 50% - 100% of time to Black Belt activities Facilitate and practice problem solving Train and coach Green Belts and project teams

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Six Sigma Methodology (DMAIC)

Define Measure Control

Improve

Analyse

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DMAIC Steps 1. Define

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Identify projects that are measurable Define projects including the demands of the customer and the content of the internal process. Develop team charter Define process map

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DMAIC Steps 2. Measure

5.0 Control

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Define performance standards Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. Identify all potential causes for such problems.

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DMAIC Steps 3. Analyse

1. Define 2. Measure

3. Analyse

4. Improve

5. Control

Establish process capability Define performance objectives Identify variation sources

Tools for analysis l Process Mapping 3.0 l Failure Mode & Effect Analysis Analyze l Statistical Tests l Design of Experiments l Control charts l Quality Function Deployment (QFD)

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DMAIC Steps 4. Improve

1. Define

2. Measure

3. Analyse

4. Improve

5. Control

Screen potential causes Discover variable relationships among causes and effects Establish operating tolerances Pursue a method to resolve and ultimately eliminate problems. It is also a phase to explore the solution how to change, fix and modify the process. Carryout a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in achieving the targeted values.

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DMAIC Steps 5. Control

1. Define 2. Measure 3. Analyse 4. Improve

5. Control

Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.
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Six Sigma Case study

A dabbawala is a person in the Indian city of Mumbai whose job is to carry and deliver freshly made food from home in lunch boxes to office workers. Dabbawalas pick up 175,000 lunches from homes and deliver to their customers everyday. Only one mistake is made in every 6 million deliveries. Accuracy rating is 99.999999. More than Six Sigma.
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Six Sigma - First Generation (SSG 1)

The era 1986 to 1990 is referred to as the first generation of Six Sigma, or SSG 1 for short. Pioneered at Motorola Statistical approach Measured Defects Per Million Opportunities (DPMO) Focused on:
Elimination of defects Improving product and service quality Reducing cost Continuous process improvement

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 In the 1990s, the focus of Six Sigma shifted from product quality to business quality. General Electric Corp. ushered in the second generation of Six Sigma, or SSG 2 as it is known. Six Sigma became a business-centric system of management. Strong measurement on bringing dollars to the bottom line. High potential candidates were selected as Black Belts.
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Six Sigma - Second Generation (SSG 2)

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Six Sigma - Third Generation (Gen III)

Developed after the year 2000. Gen III can show companies how to deliver products or services that, in the eyes of customers, have real value. Combines Lean Manufacturing Techniques and Six Sigma. Termed as Lean Six Sigma. Korean steel maker Posco and electronics maker Samsung has begun a Gen III programme.
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Conclusion
A gauge of quality and efficiency, Six Sigma is also a measure of excellence. Embarking on a Six Sigma program means delivering top-quality service and products while virtually eliminating all internal inefficiencies (Dedhia, 2005). A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the company's other service processes (Lucas, 2002). The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management.
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Six Sigma and CMMI : Showdown in Software Process Engineering

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Process Improvement Goals

Process Goals
Improve schedule and budget predictability Improve cycle time / time to market Increase productivity Improve quality (as measured by defects) Increase customer satisfaction Improve employee morale Decrease cost of quality

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What affects software?

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Six Sigma: What is it?

According to David Card, (IEEE Software 2000), Six sigma is A generic quantitative approach to improvement that applies to any process. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. isixsigma.com
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Whats the missing piece?

In essence, six sigma is an approach to finding the cause of business problems and solving them making an impact on the bottom line of a corporation and decreasing variation for products. Six Sigma is more of a methodology or a philosophy.
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Six Sigma Levels

Six Sigma can be identified at three levels:
Metric Methodology Philosophy

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Metric
3.4 Defects Per Million Opportunities (DPMO) DPMO allows you take complexity of product/process into account Refers to statistics. The +-6 standard deviations (sigmas) away from the standard mean Most companies are within 3 standard deviations of the mean
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Metric
The higher the sigma value, the better the process is capable of producing defect free results.

To be in this six sigma range you must have a quality product 99.9999998% of the time.
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Philosophy
Reduce variation in your business and make customer-focused, data driven decisions Translate customer needs into operational measurements

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Methodology
Structured problem solving techniques and roadmap Two primary sub-methodologies in Six Sigma
DMAIC DMADV

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DMAIC
Define-Measure-Analyze-Improve-Control Tool for incremental process improvement of existing processes within an organization that fall below required specification

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DMAIC cont.
Define Measure Analyze

Define the problem or process to improve upon related to the customer and goals How can you measure this process in a systematic way? Analyze the process or problem and identify the way in which it can be improved. What are the root causes of problems within the process?

Improve Control

Once you know the causes of the problems, present solutions for them and implement them Utilize Statistical Process Control to continuously measure your results and ensure you are improving Several Software Packages available to assist in measuring yield, defects per million opportunities, etc.

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DMADV
Define-Measure-Analyze-Design-Verify Methodology for producing new processes that meet the Six Sigma Quality levels desired Similar to DMAIC, however, we have a design stage here DFSS
Design-For-Six-Sigma Using models or prototypes to create designs and ensure they are effective in meeting goals
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DMAIC VS. DMADV

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Six Sigma Personnel

Champion
Manager/Director/Executive who makes sure the resources are in place for a Six Sigma project

Master Black Belts

Quality experts in an organization Responsible for strategic implementation Teach/Mentor other Black and Green Belts

Black Belts
Six Sigma team leaders responsible for implementing process improvement projects within the business

Green Belts
Employee of an organization that has some training in Six Sigma and may lead a Six Sigma project, but only as part of their job
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Six Sigma Strengths

Generic Process Improvement Strategy can be applied to any process Trained personnel working on process improvements for organization on continuous basis

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SW-CMMI Weaknesses
Statistical methods often not used at levels 4 and 5 when they could ease data analysis CMMI goals are not always aligned with business and customer goals CMMI assessors are certified, but implementers are not so they may not understand underlying concepts (statistical process control, etc)
Six Sigma has competence certifications for relevant subject matter Generally Software Specific, but improving with CMMI Six Sigma embraces statistical methods Improvement in CMMI

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Six Sigma Weaknesses

Derived from manufacturing which has a real tangible process that is easy to measure and apparent, as opposed to software engineering No formal connection to ISO 9000

Six Sigma relies on training personnel (black belts) that look for areas that need improvement which may not be the best way to go about this Focuses on Internal process experience and doesnt consider external technology or best practices
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ISO 9000 and CMM have milestones and certifications

Costs also involved in training for Six Sigma

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So which one is better?

The is no silver bullet Fred Brooks Neither one is necessarily better Both have weaknesses Both have multiple case studies and large corporations that have realized real savings and process improvements utilizing their techniques Utilizing both is possible
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CMM and Six Sigma Similarities

Both emphasize reducing defects as their main process improvement goal Both focus on quantitative decision making that relies on measurement
Six Sigma and CMM level 4 and 5

Both utilize similar basic statistical process control techniques

As mentioned, Six Sigma has a better foundation in this area
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Using Six Sigma and CMM

Six sigma provides a foundation to define, measure, analyze, improve, and control the process
Utilize process mapping
Can work in conjunction with CMM to map out a process and identify gaps within software processes

Failure Modes and Effects Analysis

Detects how a process can fail and assigns severity to it to prioritize actions

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Using Six Sigma and CMM

CMM level 4 and 5 and Six Sigma are often seen as similar:
Six Sigma training can help to deal with CMMs Quantitative Process Management and Defect Prevention requirements CMM can clarify how to use Six Sigma techniques for software process Important to note that organizations can achieve level 4 and 5 without using Six Sigma techniques
Many utilize their own statistical methods and analysis Sometimes ad-hoc, as mentioned before CMM does not tell you necessarily how to accomplish a level, just what need to be accomplished
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Benefits from SW CMM and Six Sigma

Study of utilizing them together:
Tata Consultancy Service development center reduced cost of process failures from 5 to 1 percent, thus reducing total quality cost Improved cycle time and productivity Scheduled slippage was reduced from a range of +-20 percent to +-2 percent saving the company roughly $700k over 3 years Amazingly, at the time of the article, clients had not reported any defects in their software products!
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Summary
Six Sigma is a process methodology that focuses on quantitatively measuring a process in order to control and improve upon it Six Sigma strives for 3.4 Defects Per Million Opportunities (DPMO) so that it is within six standard deviations of the mean SW CMMI is a process improvement model for software engineering that is divided into levels and contains a list of key process areas

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Summary
Six Sigma and CMMI can be utilized together to improve the software engineering process Six Sigmas more advanced statistical methods can be applied to assist in quantitatively analyzing data within CMMIs level 4 and 5 Six Sigma can also complement any individual process within CMMI by utilizing techniques such as process mapping

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Conclusion
Lastly, the effects of implementing Six Sigma and CMMI can highly improve the quality of the product developed and individual processes which can directly impact a business's bottom line and customer satisfaction

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