Idearc Media Six Sigma Training

Content
s
• Six Sigma : An Overview
• What is Six Sigma?
• Why Six Sigma?
• Six Sigma Phases : Define, Measure, Analyze,
Improve and Control
• Tools and Key Roles for Six Sigma

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Brief History
• Six Sigma was originally developed as a set of practices designed to improve manufacturing processes and eliminate
defects, but its application was subsequently extended to other types of business processes as well.[2] In Six Sigma, a defect
is defined as anything that could lead to customer dissatisfaction.[1]
• The particulars of the methodology were first formulated by Bill Smith at Motorola in 1986.[3] Six Sigma was heavily inspired
by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects, based on
the work of pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others.
• Like its predecessors, Six Sigma asserts that –
• Continuous efforts to achieve stable and predictable process results (i.e. reduce process variation) are of vital importance to
business success.
• Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled.
• Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level
management.
• Features that set Six Sigma apart from previous quality improvement initiatives include –
• A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.[1]
• An increased emphasis on strong and passionate management leadership and support.[1]
• A special infrastructure of "Champions," "Master Black Belts," "Black Belts," etc. to lead and implement the Six Sigma
approach.[1]
• A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.[1]
• The term "Six Sigma" is derived from a field of statistics known as process capability studies. Originally, it referred to the
ability of manufacturing processes to produce a very high proportion of output within specification. Processes that operate
with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4
defects per million opportunities (DPMO).[4][5] Six Sigma's implicit goal is to improve all processes to that level of quality or
better.
• Six Sigma is a registered service mark and trademark of Motorola, Inc.[6] Motorola has reported over US$17 billion in savings
[7] from Six Sigma as of 2006.
• Other early adopters of Six Sigma who achieved well-publicized success include Honeywell (previously known as AlliedSignal
) and General Electric, where the method was introduced by Jack Welch.[8] By the late 1990s, about two-thirds of the
Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs and improving quality.

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Why Six Sigma-

Sigma A term used in statistics to represent standard deviation, an

indicator of the degree of variation in a set of a process

Six Sigma
seeks to identify and remove the causes of defects and errors in a business processes. It uses a set
of quality management methods, including statistical methods, and creates a special infrastructure of
people within the organization ("Black Belts" etc.) who are experts in these methods. Each Six Sigma
project carried out within an organization follows a defined sequence of steps and has quantified
financial targets (cost reduction or profit increase).

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Six Sigma DPMO

In process improvement efforts, defects per million opportunities or DPMO

(or nonconformities per million opportunities (NPMO)) is a measure of
process performance. It is defined as:

A defect is defined as a nonconformance of a quality characteristic (e.g., strength, width, response time)
to its specification. DPMO is stated in opportunities per million units for convenience: Processes that are
considered highly-capable (e.g., processes of Six Sigma quality) are those that experience only a handful
of defects per million units produced (or services provided).

Note that DPMO differs from reporting defective parts per million (PPM) in that it comprehends the
possibility that a unit under inspection may be found to have multiple defects of the same type or may
have multiple types of defects. Identifying specific opportunities for defects (and therefore how to count
and categorize defects) is an art, but generally organizations consider the following when defining the
number of opportunities per unit:
• Knowledge of the process under study
• Industry standards
• When studying multiple types of defects, knowledge of the relative importance of each defect type in
determining customer satisfaction
The time, effort, and cost to count and categorize defects in process output
Sigma Level

Six Sigma = 99,9997%

Why not Four Sigma or 99.379% ?

• Every hour the postal service would lose 20,000 pieces of

mail
• Every day our drinking water would be unsafe for almost
15 minutes
• Every week there would be 5,000 surgical operations that
go wrong in some way
• Every month we would be without electricity for almost
seven hours

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Why Six Sigma

Customer
Money
Satisfaction

Quality Growth

Competitive
Advantage Employee Pride

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Six Sigma

FACTS

• At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone

• Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort

• AlliedSignal reports saving $ 1,5 billion through Six Sigma.

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 QUALITY

• What is cost of scrap

• What is cost of rework
• What is cost of excessive
• cycle
Every hourtimes and
the postal delays
service would lose 20,000 pieces of
mail
• Every day our drinking water would be unsafe for almost
15 minutes
What is cost of business
•
lost because customers are dissatisfied
Every week there would be 5,000 surgical operations that
with your products or services.
go wrong in some way
• Every month we would be without electricity for almost
What is cost of opportunities lost
seven hoursbecause you didn’t have time or
the resources to take advantage of them.

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Critical to Quality

A CTQ tree (Critical-to-quality tree) is used to decompose broad customer requirements into more easily
quantified requirements. CTQ Trees are often used in the Six Sigma methodology.
CTQs are derived from customer needs. Customer delight may be an add-on while deriving Critical To Quality
parameters. For cost considerations one may remain focused to customer needs at the initial stage.
CTQs (Critical to Quality) are the key measurable characteristics of a product or process whose performance
standards or specification limits must be met in order to satisfy the customer. They align improvement or
design efforts with customer requirements.
CTQs represent the product or service characteristics that are defined by the customer (internal or external).
They may include the upper and lower specification limits or any other factors related to the product or service.
A CTQ usually must be interpreted from a qualitative customer statement to an actionable, quantitative
business specification

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 Six Sigma Phase - DMAIC
Six Sigma has two key methods: DMAIC and DMADV, both inspired by Deming's
Plan-Do-Check-Act Cycle. DMAIC is used to improve an existing business process; DMADV is used to
create new product or process designs

• Every hour the postal service would lose 20,000 pieces of

mail
• Every day our drinking water would be unsafe for almost
15 minutes
• Every week there would be 5,000 surgical operations that
go wrong in some way
• Every month we would be without electricity for almost
seven hours

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 PDCA

PLAN
•Establish the objectives and processes necessary to deliver results in accordance with the expected
output. By making the expected output the focus, it differs from what would be otherwise in that the
completeness and accuracy of the specification is also part of the improvement.

DO
•Implement the new processes.
CHECK
•Measure the new processes and compare
the results against the expected results to
ascertain any differences.
ACT
•Analyze the differences to determine their
cause. Each will be part of either one or
more of the P-D-C-A steps. Determine
where to apply changes that will include
improvement. When a pass through these
four steps does not result in the need to
improve, refine the scope to which PDCA is
applied until there is a plan that involves
improvement.

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DMAIC Phases

Defin Define the project goals and customer (internal and external) deliverables

Measur Measure the process to determine current performance

e

Analyz Analyze and determine the root cause(s) of the defects

Measure
e

Improv Improve the process by eliminating defects

Control Control future process performance

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Define

• Define Customers and Requirements (CTQs)

• Develop Problem Statement, Goals and Benefits
• Identify Champion, Process Owner and Team
• Define Resources
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map

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Measure

• Define Defect, Opportunity, Unit and

Metrics
• Detailed Process Map of Appropriate Areas
• Develop Data Collection Plan
• Validate the Measurement System
• Collect the Data
• Begin Developing Y=f(x) Relationship
• Determine Process Capability and
Sigma Baseline

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Analyze

• Define Performance Objectives

• Identify Value/Non-Value Added Process Steps
• Identify Sources of Variation
• Determine Root Cause(s)
• Determine Vital Few x's, Y=f(x) Relationship

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Improve
Improve means to make something better.

• Perform Design of Experiments

• Develop Potential Solutions
• Define Operating Tolerances of Potential System
• Assess Failure Modes of Potential Solutions
• Validate Potential Improvement by Pilot Studies
• Correct/Re-Evaluate Potential Solution

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Control
Control is one of the managerial functions like planning, organizing, staffing and directing. It is
an important function because it helps to check the errors and to take the corrective
action so that deviation from standards are minimized and stated goals of the
organization are achieved in desired manner.
According to modern concepts, control is a foreseeing action whereas earlier concept
of control was used only when errors were detected. Control in management means
setting standards, measuring actual performance and taking corrective action. Thus,
control comprises these three main activities.

• Define and Validate Monitoring and Control System

• Develop Standards and Procedures
• Implement Statistical Process Control
• Determine Process Capability
• Develop Transfer Plan, Handoff to Process Owner
• Verify Benefits, Cost Savings/Avoidance, Profit Growth
• Close Project, Finalize Documentation
• Communicate to Business, Celebrate

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Defin Measure Analyze Improve Control
e

Deliverables :
• Fully trained team is formed, supported, and committed to work on improvement project.
• Team charter developed, customers identified and high impact characteristics (CTQs) defined,
business process mapped.

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Defin Measure Analyze Improve Control
e

• Checkpoints for Readiness

• Team Readiness :
• Team is sponsored by a champion or business leader.
• Team formed and team leaders assigned.
• Improvement team members fully trained on Six Sigma and DMAIC.

• Team Charter :
• Completed project management charter, including business case, problem and goal
statements, project scope, milestones, roles and responsibilities, communication plan.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Customers
• Customer(s) identified and segmented according to their different needs and requirements.
• Data collected and displayed to better understand customer(s) critical needs and requirements.

Business Process Mapping

• Completed, verified, and validated high-level 'as is' (not 'should be' or 'could be') business
process map.
• Completed SIPOC representation, describing the Suppliers, Inputs, Process, Outputs, and
Customers.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

• Key Measures Identified
• Key measures identified and agreed upon.
• High impact defects defined and identified in the business process.

Data Collection Planned and Executed

• Solid data collection plan established that includes measurement systems analysis.
• Data collected on key measures that were identified.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

• Process Variation Displayed/Communicated
• Process variation components displayed/communicated using suitable charts, graphs, plots.
• Long term and short term variability accounted for.

• Performance Baseline/Sigma Calculation

• Measure baseline process performance (capability, yield, sigma level).

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Defin Measure Analyze Improve Control
e

Deliverables :
• Data and process analysis, root cause analysis, quantifying the gap/opportunity.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Data and Process Analysis
• Identify gaps between current performance and the goal performance.

Root Cause Analysis

• Generate list of possible causes (sources of variation).
• Segment and stratify possible causes (sources of variation).
• Prioritize list of 'vital few' causes (key sources of variation).
• Verify and quantify the root causes of variation.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Quantifying the Gap/Opportunity
• Determine the performance gap.
• Display and communicate the gap/opportunity in financial terms.

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Defin Measure Analyze Improve Control
e

Deliverables :
• Generate (and test) possible solutions, select the best solutions, design implementation plan.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

• Generating (and Testing) Possible Solutions
• Possible solutions generated and tested.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Selecting The Best Solution(s)
• Optimal solution selected based on testing and analysis.
• New and improved process ('should be') maps developed.
• Cost/benefit analysis of optimal solution(s).
• Small-scale pilot for proposed improvement(s).
• Pilot data collected and analyzed.
• Improved process ('should be') maps modified based on pilot data and analysis.
• Project impact on utilizing the best solution(s).

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Designing Implementation Plan
• Solution implementation plan established, including schedule/work breakdown structure,
resources, risk management plan, cost/budget, and control plan.
• Contingency plan established.

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Defin Measure Analyze Improve Control
e

Deliverables :
• Documented and implemented monitoring plan, standardized process, documented procedures,
response plan established and deployed, transfer of ownership (project closure).

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Monitoring Plan
• Control plan in place for sustaining improvements (short and long-term).
•
Process Standardization
• New process steps, standards, and documentation are ingrained into normal operations.

Documented Procedures
• Operating procedures are consistent.
• Knowledge gained on process is shared and institutionalized.

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Defin Measure Analyze Improve Control
e

Checkpoints for Readiness

Response Plan
• Response plans established, understood, and deployed.
•
Transfer of Ownership (Project Closure)
• Transfer ownership and knowledge to process owner and process team tasked with the
responsibilities.

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Tools

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 Tools

• Creating flowcharts of the step in a process – operations, decision points,

delays, movements, handoffs, rework, loops, and controls or inspections.
• A process map is illustrated description of how a process work.

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Tools

Design Of Experiments

• DOE is a structured, organized method for determining the relationship between factors (Xs)
affecting a process and the output of that process (Y).

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 Tools

XY Matrix
A group of rows and columns, with one set of increments marked along the X (horizontal) axis
and another set of increments marked along the Y (vertical) axis.
The purpose of using XY matrix is to study and understand the relationship between what you
are putting into a process and what your customer is getting out of it.
The XY matrix allows the team to identify gaps, areas for improvement.

Measurement System Analysis

• The goal of this tool is to ensure that your measurement system is statically confident – that it’s
both accurate and precise each and every time it is used.
• Undertaken during Measure phase, your MSA determines whether or not you can take a certain
measurement and repeat or reproduce it among different people who take the same
measurement.

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 Tools

Process Capability Tool

Process capability tool is the measure of a process being able to meet specification requirements and
fulfill customer CTQ needs on a long term basis.

Hypothesis Testing
Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is
correct.
It’s a compass that points you directly to the vital few factors that are most affecting your process.

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 Tools

Control Plan
A detailed assessment and guide for maintaining all the positive changes you, your black belt, and the
project team have made.
It ensures that all your analysis and efforts stay in effect and that you have information at your disposal to
prevent backsliding or a return to less than optimal performance standard.

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Key Roles For Six Sigma

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Key Roles For Six Sigma
Includes CEO and other key top management team
Executive Leadership members. They are responsible for setting up a vision for
Six Sigma implementation.

Are responsible for the Six Sigma implementation across the

Champions
organization in an integrated manner. Champions also act as
mentor to Black Belts.

Identified by champions, act as in-house expert coach

Master Black Belts
for the organization on Six Sigma. They devote 100% of
their time to Six Sigma.

Black Belts Operate under Master Black Belts to apply Six Sigma
methodology to specific projects. They primarily focus on Six
Sigma project execution.

Are the employees who take up Six Sigma implementation along

Green Belts
with their other job responsibilities. They operate under the guidance
of Black Belts and support them in achieving the overall results.

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Six Sigma Do’s

Do communicate the commitment company-wide

Do demonstrate the commitment of company leaders
Do empower your key human resources
Do provide on-site mentoring for black belts
Do be patient at the inception of you six Sigma initiative
Do claim and advertise early “wins”
Do benchmark
Do establish project baseline and goals

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Idearc Media Six Sigma Training