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©Sloan Consulting/Quality Health Systems of America, Inc., 2002
Executive Six SigmaHow to Use the 6
σ
Profit StrategyAnd Tools
 
©Sloan Consulting/Quality Health Systems of America, Inc. 2002, 206-525-7968, http://www.danielsloan.com
1
Table of Contents
The Six Sigma Executive............................................................................................2The Six Sigma Profit Strategy ..................................................................................3The 6
σ
Project Results Map.....................................................................................4Define, Measure, Analyze, Improve, Control....................................5Processes and Systems Produce Information.............................................................6Operational Definitions......................................................................6Columns and Rows............................................................................6Fields And Records............................................................................7Spreadsheet Example.........................................................................76
σ
Array - Spreadsheet Example.......................................................7How to Turn Your Data Into Information..................................................................86
σ
- The International Analysis Gold Standard.................................8The Mean (
 X 
)...................................................................................8The Standard Deviation (
σ
) ..............................................................8Probability Information (The
F 
Ratio)..............................................8Analytic Graphs.................................................................................8Using Excel to Filter Data..................................................................9How to Compare Data Sets .......................................................................................12How to Compete an Excel ANOVA..................................................12The Stat Ease Graphic ANOVA........................................................15How to Draw and Interpret 6
σ
Software Pictures.....................................................16Crystal Ball Spreadsheet Simulations................................................16Quality Control Charts.......................................................................19Scatter Diagrams and Correlation Analysis.......................................233D Cube, Probability, and Interaction Plots......................................256
σ
Realities ............................................................................................................28Executives, Champions, Black Belts and Green Belts......................29
 
©Sloan Consulting/Quality Health Systems of America, Inc. 2002, 206-525-7968, http://www.danielsloan.com
2
The Six Sigma Executive
Top-level leadership commitment powers Six Sigma. As a Six Sigma executive,champion, Master Black Belt, or Black Belt project leader you’ll discover that 6
σ
  projects produce financial benefits. 6
σ
is a profit based business initiative.This business initiative improves the quality of decisions affect every process in theenterprise: financial, operational, and production. As 6
σ
projects improve profits, growmarket share, reduce production costs, enhance productivity, they create near perfect processes, products, and services. Success transforms the corporate culture.Values matter in a 6
σ
applied business science culture. Customer satisfaction, qualityinformation, speed, and lean organizational structures are highly valued. What is valuedgets measured and rewarded. Measurements are made and recorded in a disciplined way.Six Sigma measurements are rigorously analyzed. Computing power and intuitivesoftware minimize, and in many cases eliminate, the math anxiety that used to plaguecompanies who pioneered the use of quantitative analysis. Personal computing freesexecutives, champions, and Black Belt project leaders for their primary responsibility.That responsibility is to ask tough, very tough, questions. Six Sigma questions movecorporate cultures from their comfort zone and into a more profitable future.Analysis pays the biggest dividends when it is used for breakthrough improvements.Proven tools, now called Six Sigma tools, have an unprecedented 70-year history in everyindustry. Successes are a matter of record in agriculture, telecommunications,manufacturing, and medicine. Success, doing more of what works, depends on theinteractions of all the following variables:
•
Top-level executives personally lead the Six Sigma initiative in highly visibleways. Compensation and promotion are tied to breakthrough projects.
•
Education and skill training in the recognized 6
σ
body of knowledge permeate theorganization. Computing literacy is an expected competency, top to bottom.
•
Exponential rates of improvement are an expected outcome. New ways of gettingwork done take precedence over incremental process improvements.
•
6
σ
metrics are tied to short term and long-term financial performance.
•
Executive leaders allocate their time and resources for 6
σ
projects. They assignthe company’s most capable people full-time to Six Sigma breakthrough projects.They champion statistical reasoning on a company-wide basis while they remove bureaucratic roadblocks to improvement. Delegated champions, Master Black Belts, and project Black Belts plan, educate, train, coach, lead, and consult acrossall organizational boundaries.
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