Six

Sigma
 What is Six Sigma?
o Six Sigma is a methodology for continuous improvement and
creating high-quality products and processes using statistical tools.
o It aims to eliminate waste and inefficiency, thereby increasing
customer satisfaction by delivering what the customer expects.
o Six Sigma is data-driven and requires accurate data collection for the
analyzed processes.
 Key Concepts
o DMAIC: The 5 phases of Lean Six Sigma (Define, Measure,
Analyze, Improve, Control).

o SIPOC: A high-level view of a process (Suppliers, Inputs, Process,

Outputs, Customers).

o Process Control Plan: Ensures consistent quality by defining

controls and monitoring processes.

o The 8 Wastes: Identifies areas for improvement (Transportation,

Inventory, Motion, Waiting, Overproduction, Overprocessing,
Defects, Skills).
 DMAIC - a data-driven quality strategy used to improve processes.
Define:
o Identify the problem, improvement opportunity, or project goal.
o Create a project charter to set the direction and scope.
o Understand customer requirements and expectations.
Measure:
o Collect data on process performance.
o Create process maps and measure key metrics.
o Understand the current state of the process.
Analyze:
o Analyze data to identify root causes of variation or defects.
o Use tools like Pareto charts and root cause analysis.
o Understand why the process behaves the way it does.
Improve:
o Develop and implement solutions to address root causes.
o Use techniques like design of experiments (DOE) and Kaizen events.
o Optimize the process for better performance.
Control:
o Establish controls to maintain the improved process.
o Use control plans and statistical process control (SPC).
o Monitor and sustain the gains achieved.
SIPOC (Suppliers, Inputs, Process, Outputs, and Customers) is a process mapping and
improvement method that summarizes the inputs and outputs of one or more business processes
using a SIPOC diagram.

1. Suppliers: the providers of inputs into a process. They can be internal or external to
the organization.

2. Inputs: Resources such as materials, services, or information needed to complete the

process.

3. Process: The steps that convert inputs into outputs.

4. Outputs: The product or service created from the process.

5. Customers: The recipients of the outputs.

A SIPOC diagram visually represents these elements, helping teams understand the entire
process and aligning everyone on business requirements. It’s a valuable tool in process
design and improvement initiatives like Lean Six Sigma
Process Control Plan - a document describing the process steps, quality control items, responding control
methods, and reaction plans. It outlines how production or service processes will be controlled to meet product,
service, and process requirements. Elements Include:

Process Flowchart: A visual representation of the high-level process steps for the improved
process.

Critical Metrics (CTQs): Key measurable product or process characteristics that must meet
performance standards or specification limits.

Measurement Method: Documents how process measurements or CTQs are collected.

Sample Size: The chosen sample size for measurement.

Measurement Frequency: How often data should be collected.

Reaction Plan: A documented process for correcting deviations from the desired state,
including who, what, when, and where actions are taken.
The 8 Wastes refers to inefficiencies or non-value-adding activities within a process.

1. Defects: These are errors, mistakes, or faulty products that require rework or correction. Defects waste
time, and resources and impact quality.
2. Overproduction: Producing more than needed or before it’s required leads to excess inventory, storage
costs, and wasted effort.
3. Transportation: Unnecessary movement of materials or products between locations consumes time,
energy, and resources.
4. Non-Utilized Talent: Failing to tap into employees’ skills, knowledge, and creativity is a waste. Utilizing
their talents enhances productivity.
5. Motion: Excessive movement of people or equipment (e.g., walking long distances, reaching for tools)
adds no value and wastes time.
6. Waiting: Delays due to idle time, waiting for materials, approvals, or processes slow down production and
reduce efficiency.
7. Excess Inventory: Stockpiling excess inventory ties up capital, occupies space, and increases the risk of
obsolescence.
8. Over-Processing: Doing more than necessary (e.g., excessive inspections, redundant steps) wastes effort
and resources.
 Real-World Examples of Successful
Six Sigma Implementations
1. Toyota (Automotive Industry):
• Toyota pioneered Six Sigma to revolutionize its manufacturing processes. By minimizing defects
and optimizing production, Toyota achieved remarkable efficiency improvements.

2. General Electric (GE):

o In the late 1990s, GE’s CEO Jack Welch implemented Six Sigma to enhance product quality and
services. The results included a $12 billion revenue increase and $1.5 billion in cost savings.

3. Financial Sector Excellence:

o Financial institutions have used Six Sigma to streamline processes, reduce errors, and improve
customer satisfaction.

4. Healthcare Precision:
o Hospitals and healthcare organizations apply Six Sigma to enhance patient care, reduce wait times,
and optimize resource allocation.
 Real-World Examples of Successful
Six Sigma Implementations
5. Supply Chain Optimization:
o Companies like Amazon and FedEx use Six Sigma to streamline supply chain operations,
ensuring timely deliveries and cost savings.

6. Enhancing Customer Experience:

o Airlines, hotels, and retail chains leverage Six Sigma to create seamless customer
experiences, from booking to service delivery.

7. Government Efficiency:
o Government agencies adopt Six Sigma to improve efficiency in public services, reduce
bureaucracy, and enhance citizen satisfaction.

Six Sigma principles can be adapted to any industry, leading to tangible improvements in
quality, productivity, and customer satisfaction.