Six Sigma

Six Sigma for
Managers
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Contents :
• 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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Why Six Sigma?
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What is Sigma ?
A term used in statistics to represent

Sigma standard deviation, an indicator of the
degree of variation in a set of a process
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What is Six Sigma?
A statistical concept that measures a

process in terms of defects – at the six
sigma level, there 3.4 defects per
Six million opportunities
Sigma
A philosophy and a goal : as perfect as
practically possible
A methodology and a symbol of quality
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Sigma Level
Sigma Level Defects per Million
(Process Opportunities
Capability)
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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Sigma Level
Six Sigma =
99,9997%
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Sigma Level
• Every hour the postal service
Why not Four would lose 20,000 pieces of mail
Sigma or • Every day our drinking water would
99.379% ? 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?
Money Quality
Customer Competitive
Satisfaction Advantage
Growth Employee Pride
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Why Six Sigma?
• 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.
Why Six Sigma?
Six Sigma is about practices that help you

eliminate defects and always deliver
products and services that meet customer
specifications
Cost of Poor Quality
What is cost of scrap?
What is cost of rework?
What is cost of excessive cycle times and

delays?
Cost of Poor Quality
What is cost of business lost because
customers are dissatisfied with your
products or services?
What is cost of opportunities lost because

you didn’t have time or the resources to take
advantage of them?
Critical-to-Quality (CTQ)
Elements of a process that significantly affect
the output of that process. Identifying these
elements is figuring out how to make
improvements that can dramatically reduce
costs and enhance quality.
Six Sigma Phases
Six Sigma Phases
Define Measure Analyze
Improve
DMAIC Control
Six Sigma Phases
Define the project goals and customer
Define (internal and external) deliverables
Measure the process to determine current

Measure
performance
Analyze and determine the root cause(s)

Analyze
of the defects
Six Sigma Phases
Improve the process by eliminating defects
Improve
Control future process performance

Control
Six Sigma Phases
• Define Customers and Requirements (CTQs)
Define • 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
Six Sigma Phases
• Define Defect, Opportunity, Unit and Metrics
Measure • 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
Six Sigma Phases
• Define Performance Objectives
Analyze • Identify Value/Non-Value Added Process
Steps
• Identify Sources of Variation
• Determine Root Cause(s)
• Determine Vital Few x's, Y=f(x)
Relationship
Six Sigma Phases
• Perform Design of Experiments
Improve • 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
Six Sigma Phases
• Define and Validate Monitoring and Control
System
Control
• 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
Define Measure Analyze Improve Control
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.
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.

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.
Deliverables :
• Key measures identified, data collection planned and
executed, process variation displayed and communicated,
performance baselined, sigma level calculated.

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.

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

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.

Quantifying the Gap/Opportunity
• Determine the performance gap.
• Display and communicate the gap/opportunity in financial terms.
Deliverables :
• Generate (and test) possible solutions, select the best
solutions, design implementation plan.

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

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).

Designing Implementation Plan
• Solution implementation plan established, including schedule/work
breakdown structure, resources, risk management plan,
cost/budget, and control plan.
• Contingency plan established.
Deliverables :
• Documented and implemented monitoring plan,
standardized process, documented procedures, response
plan established and deployed, transfer of ownership
(project closure).

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.

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.
Tools and Roles for
Six Sigma
Tools for Six Sigma
• Creating flowcharts of the step in a process
Process
– operations, decision points, delays,
Mapping
movements, handoffs, rework, loops, and
controls or inspections.
• A process map is illustrated description of
how a process work.
Tools for Six Sigma
• DOE is a structured, organized method for
Design of
determining the relationship between
Experiments
factors (Xs) affecting a process and the
or DOE
output of that process (Y).
Tools for Six Sigma
• A group of rows and columns, with one set
XY Matrix
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.
Tools for Six Sigma
• The goal of this tool is to ensure that your
Measurement
measurement system is statically confident System
– that it’s both accurate and precise each Analysis
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.
Tools for Six Sigma
• Process capability tool is the measure of a
Process
process being able to meet specification Capability
requirements and fulfill customer CTQ Tool
needs on a long term basis.
Tools for Six Sigma
• Investigating a theory about the suspected
Hypothesis
cause (s) of a particular effect in a process
Testing
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.
Tools for Six Sigma
• The manner in which a part or process can
Failure
fail to meet a specification, creating a
Mode Effect
defect or non-conformance, and the impact
Analysis
on the customer if that failure mode is not
prevented or corrected.
Tools for Six Sigma
• A detailed assessment and guide for
Control
maintaining all the positive changes you,
Plan
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.
Key Roles for Six Sigma
Executive Includes CEO and other key top management
Leadership team members. They are responsible for setting
up a vision for Six Sigma implementation.
Champions Are responsible for the Six Sigma

implementation across the organization in an
integrated manner. Champions also act as
mentor to Black Belts.
Master Identified by champions, act as in-house expert
Black Belts coach 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.
Green Belts Are the employees who take up Six Sigma
implementation along with their other job
responsibilities. They operate under the guidance
of Black Belts and support them in achieving the
overall results.
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
Six Sigma Do’s
• 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
Recommended Further Readings:
1. Greg Brue, Six Sigma for Managers, McGraw Hill
2. George Eckes, Six Sigma for Everyone, John Wiley and Sons
End of Material

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Six Sigma

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Six Sigma for

A term used in statistics to represent

A statistical concept that measures a

A methodology and a symbol of quality

Growth Employee Pride

• At GE, Six Sigma added more than $ 2 billion to the

• Motorola saved more than $ 15 billion in the first 10

• AlliedSignal reports saving $ 1,5 billion through Six

Six Sigma is about practices that help you

What is cost of scrap?

What is cost of rework?

What is cost of excessive cycle times and

What is cost of opportunities lost because

Define Measure Analyze

Measure the process to determine current

Analyze and determine the root cause(s)

Control future process performance

Checkpoints for Readiness

Checkpoints for Readiness

Business Process Mapping

Checkpoints for Readiness

Data Collection Planned and Executed

Checkpoints for Readiness

Performance Baseline/Sigma Calculation

Checkpoints for Readiness

Root Cause Analysis

Checkpoints for Readiness

Checkpoints for Readiness

Checkpoints for Readiness

Checkpoints for Readiness

Checkpoints for Readiness

Checkpoints for Readiness

Transfer of Ownership (Project Closure)

Champions Are responsible for the Six Sigma

Black Belts Operate under Master Black Belts to apply Six

• Do communicate the commitment company-

• Do demonstrate the commitment of company

• Do empower your key human resources

• Do provide on-site mentoring for black belts

• Do be patient at the inception of you six Sigma

• Do claim and advertise early “wins”

• Do establish project baseline and goals

1. Greg Brue, Six Sigma for Managers, McGraw Hill

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