Six Sigma Orientation: © All Rights Reserved Treqna 2005

Six sigma
Orientation
© All Rights Reserved TreQna 2005

expectations
• What is Quality?
• Know Six Sigma
• Awareness with respect to origin
and history of Six Sigma.
• The utility and benefits
• Introduction to Six Sigma as
methodology
• The Six Sigma organization

What is Quality?

Evolution of Quality
Reactive Quality
Proactive Quality
Quality Checks (QC) - Taking the
“Create process that will produce
defectives out of what is produced
less or no defects”
Historically Contemporary

Segments in Quality
Methodologies Standards Capability Models
• Six Sigma • ISO 9000, ISO • eSCM

• Lean 14000 etc. • CMM
• COPC • CMMI
• Malcolm Baldrige
Sharing
Scientific way Best practices
Benchmarked
to improve to build
practices-
capability? capability
“Standardizing”

What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at high
standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:

• A standard
• A certification
• Another metric like percentage

Two Meanings of Sigma

• The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.
• For a process, the sigma capability (z-value) is a metric that indicates how well
that process is performing. The higher the sigma capability, the better. Sigma
capability measures the capability of the process to produce defect-free
outputs. A defect is anything that results in customer dissatisfaction.

Path to Six Sigma
6 Sigma 3.4 Defects
Sigma levels and

Defects per million
opportunities
(DPMO)
5 Sigma 233 Defects
4 Sigma 6,210 Defects

What it means to be @ Six Sigma
Is 99% (3.8s) good enough? 99.99966% Good – At 6s
20,000 lost mails per hour 7 lost mails per hour
Unsafe drinking water almost 15 One minute of unsafe drinking

minutes each day water every seven months
5,000 incorrect surgical 1.7 incorrect surgical operations

operations per week per week
2 short or long landings at most One short or long landing at major

major airports daily airports every five years
200,000 wrong drug prescriptions 68 wrong drug prescriptions each

each year year
Example quoted from GE Book of Knowledge - copyright GE

Origin of Six Sigma
Motorola
Motorola
the
the company
company that
that invented
invented Six
Six Sigma
Sigma
• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola
• Late 1970s - Motorola started experimenting with problem solving through

statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program

The Growth of Six Sigma
GE
GE
the
the company
company that
that perfected
perfected Six
Six Sigma
Sigma
• Jack Welch launched Six Sigma at GE in Jan,1996
• 1998/99 - Green Belt exam certification became the criteria for management
promotions
• 2002/03 - Green Belt certification became the criteria for promotion to

management roles

The GE model for process improvements
Define Measure Analyze Improve Control
Combination of change management & statistical analysis


Three Methodologies of Six Sigma
BPMS
BPMS
Business
BusinessProcess
ProcessManagement
ManagementSystem
System
DMAIC
DMAIC
Six
SixSigma
SigmaImprovement
ImprovementMethodology
Methodology
DMADOV
DMADOV
Creating
Creatingnew
newprocess
processwhich
whichwill
willperform
perform@
@Six
SixSigma
Sigma

BPMS
BPMS
Business
Business Process
Process Management
Management System
System

The Need of BPMS
• To understand the process; it’s mission, flow and scope
• To know the customers and their expectations
• To identify, monitor and improve correct performance measures for the

process

The Methodology
Map process MSA, DCP, Service

steps, identify indicators and excellence and
input/ output monitors process
measures excellence
Identify
Develop Improve
Define Process Map VOC and Build
Dashboar ment
Mission Process VOP PMS
ds Opportun
ities
Define purpose Identify Critical Visual

of the process, to Quality and representation
its goal and its Critical to of performance
boundaries process
The DMAIC
cycle
DMAIC
DMAIC
Six
Six Sigma
Sigma Improvement
Improvement Methodology
Methodology

What is DMAIC ?
• A logical and structured approach to problem solving and process improvement
• An iterative process (continuous improvement)
• A quality tool with focus on change management
E = Q x A
Effectiveness Quality Acceptance
Improvement

The Approach
Practical
Problem
Statistical
Problem
Statistical
Solution
Practical
Solution

Methodology
Define
D Identify and state the practical problem
Measure
M Validate the practical problem by collecting data
Analyze
A Convert the practical problem to a statistical one, define
statistical goal and identify potential statistical solution
Improve
Confirm and test the statistical solution
I
Control
Convert the statistical solution to a practical solution
C

Define
Define
D VoC - Who wants the project and why ?
Measure
The scope of project / improvement
M
Analyze
A
Key team members / resources for the project
D
Improve
I
Critical milestones and stakeholder review
Control
C
Budget allocation

Measure
Define
D Ensure measurement system reliability
- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same way ?
Measure
M
Analyze
A Prepare data collection plan
- How many data points do you need to collect ?
Improve - How many days do you need to collect data for ?
I
Control
- What is the sampling strategy ?
M
- Who will collect data and how will data get stored ?
- What could the potential drivers of variation be ?
C
Collect data

Analyze
Define
D Understand statistical problem
Measure
M
Baseline current process capability

Analyze
A
Improve
A
I Define statistical improvement goal
Control
C
Identify drivers of variation (significant factors)

Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)
• A brainstorming tool that helps define and display major causes, sub causes and
root causes that influence a process
• Visualize the potential relationship between causes which may be creating

problems or defects
Primary Cause
Secondary Cause
Backbone A Problem
Root Cause
Control – Impact Matrix
• A visual tool that helps in separating the vital few from the trivial many
Control
Vital Few Cost Ineffective

High Control – High Impact Low Control – High Impact
A
Impact
Cost Ineffective Trivial Many

High Control – Low Impact Low Control – Low Impact

Pareto Chart
• Pareto principle states that disproportionately large percentage of defects are

caused due to relatively fewer factors (generally, 80% defects are caused by 20%
factors)
35 100%
30
80%
25
20 60%
15 40%
10
5
0
A
20%
0%
L K A F B C G R D
Frequency Cumulative Frequency

Process Map Analysis
• Visually highlights hand off points / working relationships between people,
processes and organizations
• Helps identify rework loops and non value add steps
Customer Process A Process B Vendor


Hypothesis Testing
• A statistical tool used to validate if two samples are different or whether a

sample belongs to a given population
Null Hypothesis (Ho) is the statement of the status quo
Alternate Hypothesis (Ha) is the statement of difference
Homogeneity of One way ANOVA
A
Variance Moods Median
Chi-Square Regression

Improve
Define
D Map improved process
Measure
M
Analyze
A Pilot solution
Improve
I
Control
I
C Identify operating tolerance on significant factors

Control
Define
Ensure measurement system reliability for
significant factors
D
Measure - Is tool used to measure the input / process variables flawed ?

M - Do all operators interpret the tool reading in the same way ?
Analyze Improved process capability

A
Improve
I
Control
Sustenance Plan
- Statistical Process Control
C
- Mistake Proofing
C
- Control Plan

Control – Sustenance Plan
Control Plan
• Have the new operating procedures and standards been documented ?
• What Statistical Process Control (SPC) tools will be used to monitor the process
performance ?
• Who will review the performance of the output variable and significant factors
on closure of the project and how frequently ?
• What is the corrective action or reaction plan if any of the factors were to be
out of control ?
C

Six
Six Sigma
Sigma Organization
Organization

Six Sigma - Three Dimensions
Define Measure Analyze Improve Control
Driven by
customer
needs
Process Map Analysis
LSL US
L
Mgmt Methodology
Senior
Led by
••••••••••
Upper/Lower
specification
• •
••• •
•
•••••••
•••••••
limits
Organization Tools
•
Regression
35 100%
30
80%
25
20 60%
15 40%
10
20%
5
Process variation 0 0%
Enabled by quality
L K A F B C G R D
team.
Frequency Cumulative Frequency
Pareto Chart

The Quality Team
Master Black Belt --Thought

ThoughtLeadership
Leadership
--Expert
Experton
onSix
SixSigma
Sigma
--Mentor
MentorGreen
Greenand
andBlack
BlackBelts
Belts
-- Backbone
Backboneof ofSix
SixSigma
SigmaOrg
Org
Black Belt Black Belt -- Mentor Green Belts
Mentor Green Belts
--Full
Fulltime
timeresource
resource
--Deployed
Deployedto tocomplex
complexoror“high
“high
risk”
risk”projects
projects
Green Belt
Green Belt
--Part
Parttime
timeor
orfull
fulltime
timeresource
resource
--Deployed
Deployedto toless
lesscomplex
complexprojects
projects
Green Belt
ininareas
areasof
offunctional
functionalexpertise
expertise

Six Sigma – Career Option!
• Basic - Six Sigma Awareness
• Green Belt Projects
Green Belt (GB) • Participate in Black Belt Projects
• Assist business functions with day to day
activities
• Mentor/Train Green Belts
• Black Belt Projects
Black Belt (BB) • Change Agents
• Work along with the business owners
• Mentor/ Train Black Belts

• Run Strategic projects
Master Black Belt (MBB) • More Strategic than tactical role
Highly paid!
Work like a Consultant!
Huge demand in the industry!
Overall…A high flying Career!!

Thank
Thank You
You

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Six sigma

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

Methodologies Standards Capability Models

• Six Sigma • ISO 9000, ISO • eSCM

© All Rights Reserved TreQna 2005

Six Sigma is not:

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

6 Sigma 3.4 Defects

Sigma levels and

4 Sigma 6,210 Defects

3 Sigma 66,807 Defects

2 Sigma 308,537 Defects

© All Rights Reserved TreQna 2005

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15 One minute of unsafe drinking

5,000 incorrect surgical 1.7 incorrect surgical operations

2 short or long landings at most One short or long landing at major

200,000 wrong drug prescriptions 68 wrong drug prescriptions each

Example quoted from GE Book of Knowledge - copyright GE

© All Rights Reserved TreQna 2005

• Late 1970s - Motorola started experimenting with problem solving through

• 1987 - Motorola officially launched it’s Six Sigma program

© All Rights Reserved TreQna 2005

• Jack Welch launched Six Sigma at GE in Jan,1996

• 2002/03 - Green Belt certification became the criteria for promotion to

© All Rights Reserved TreQna 2005

The GE model for process improvements

Define Measure Analyze Improve Control

Combination of change management & statistical analysis

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for the

© All Rights Reserved TreQna 2005

Map process MSA, DCP, Service

Define purpose Identify Critical Visual

© All Rights Reserved TreQna 2005

• A logical and structured approach to problem solving and process improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

© All Rights Reserved TreQna 2005

Baseline current process capability

© All Rights Reserved TreQna 2005

• Visualize the potential relationship between causes which may be creating

Vital Few Cost Ineffective

Cost Ineffective Trivial Many

© All Rights Reserved TreQna 2005