Chapter-13

Six Sigma
• The hottest approach to QM in manufacturing and other firms in North
America
• Not a standard as ISO: is a methodology
• 6S sprouts up here and there
A History of Six Sigma

 A direct outgrowth of North American TQM in the 1990s

 When TQM did not deliver as promised, it is for one or two reasons
 Internal Failure = Slipping on 1 of Deming’s 14 points (to adopt the new
philosophy)
 By 1990s, becoming TQM company(3 Sigma) was enough to stay in
business but not enough to maintain leadership
 Six Sigma is only relevant when there are millions or billions of events or
products to measure
Variation on Six Sigma

 No single definition, no central standards or certification organization

 Individuals can get certified as 6S black-belt or 6S green-belt
 6S training includes many analytical and statistical process
 The lack of standard is a concern for executives and managers
 Only solution is to be led by executives who understand and are
committed to 6S principles
 Flexibility is plus size to the lack of standardization in 6S
 Flexibility comes with a risk
Six Sigma Simplified: Principles of Six Sigma

 Senior Executive support

 Top-down training
 Include the voice of customer
 Create an infrastructure to support success
 Develop short-term projects with specific goals
 Focus on process improvement
 Clear and consistent methodology
 Decisions based on fact and data
 Focus on people and processes
Six Sigma Simplified: Components of Six Sigma
 Executive leadership and support
 Standard methodology
 Projects to improve processes
 Controls to keep improvements in place

Six Sigma Methodology-DMAIC

 A minor modification of PDCA
 Define
 Measure
 Analyze (Value stream analysis, Analyze source of variation and Determine process
drivers)
 Improve
 Control
Six Sigma Simplified: Six Sigma Measurement
 Two issues : 1) DPMO 2) Why 6S=4.5S

Defects per Million Opportunities (DPMO)

 Relationship between errors and defects
 Error = something wrong with process
 Defect = something wrong with product

Evaluating Six Sigma

 TQM on steroids, the metaphor may be apt in both + and – ways
 6S certainly add a lot of punch to TQM
The End of Chapter 13!