Six Sigma

Overview
 Six Sigma

A rigorous, focused and highly

effective implementation of proven
quality principles and techniques
that aims for virtually error free
business performance.
 Further Defined?
• A statistical approach to problem solving
• A management culture
• A way of thinking
• A set of new behaviors
• Synonymous with:
– Improving quality
– Reducing cost
– Improving customer loyalty/customer
satisfaction
– Achieving bottom-line results
 Six Sigma’s Modern Evolution
1980
– Established by Motorola in response to
foreign competition and Baldridge Quality
Award goal.
1990’s
– Focus on process improvement using
statistical tools.
2005
– “Lean Six Sigma” combines the structured
management methodology and problem
solving tools of Six Sigma with the business
strategy, objectives and goals of “Lean
Enterprise”.
 The Business Experience
• Reduced cycle times, defects and costs
• Reduction/elimination of waste
• Improved productivity and efficiency
• Measurable financial results
• Increased product quality and reliability
• Significant improvement in customer
satisfaction!
• Directly supports World Class performance
goals.
 GE Results from 6 Sigma
6 Sigma Cost $3.5B $3.4B
6 Sigma Productivity $500
Delighting Customers $900
$2.5B

$3.0B

$1.2B $2.5B

$700 $600 $600

$380 $450 $500
$200 $170

Cost Benefit Cost Benefit Cost Benefit Cost Benefit Cost Benefit Cost Benefit
1996 1997 1998 1999 2000 2001

$3.4 Billion in 2001 … Customers & Shareholders Love It!

$ in Millions Unless Otherwise Stated
 The Business Experience
• *Six
Motorola Sigma is currently active in over
• 80%
Johnson of Fortune
& Johnson500 companies.
• Honeywell
• TRW
* Masset, LLC Consulting
• Merrill Lynch
• Xerox
• McKesson
• Sony
 Management and
Project Support
Executives
Process Senior Deployment
Owner Champion

Finance Deployment
Champion Champion

Information Project
Technology Champion
Champion Human
Resources
Champion
 Management and Project Support
• Executives
– Create the Six Sigma vision and company environment.
– Define strategic and business goals.
• Senior Deployment Champions
– Day-to-Day management of Six Sigma throughout the business.
– Reports to and updates the executives on the progress of deployment.
– Liaison between the executives and deployment champions.
• Deployment Champions or Sponsors
– Responsible for the deployment of Six Sigma within the division or
business unit.
– Facilitates the identification and prioritization of projects assuring
alignment with the business goals.
– Establishes and executes training plans.
– Selects the project champions.
– Removes barriers for the project team.
 Management and Project Support
• Project Champion
– Selects and mentors the Black Belts
– Leads in project identification, prioritization, and defining the project scope.
– Removes barriers for Black Belts and aligns resources.
• Process Owner
– Is a team member
– Takes ownership of a project when it is complete
– Responsible for maintaining the project’s gain
• Finance Champion
– Estimates and certifies project savings
– Works with deployment champions to identify potential project
opportunities.
– Assigns a finance representative on to each project team.
• Information Technology Champion
– Insures computer and software resourcing.
– Works with project teams to access data from existing databases
• HR Champion
– Works with Black Belts to develop a MBB, BB, and GB selection process.
 Six Sigma
Roles and Responsibilities
Six Sigma •
•
Full Time 6 Sigma Leaders
Manage BB Projects & Plant 6 Sigma
• Run 6 Sigma Projects
Project define
MB
• Instruct & Train BB, GBs, & YBs

Teams B
Black
• Full or Part Time 6 Sigma Leaders
• Manage 6 Sigma Projects
Belt • Instruct & Train GBs & YBs

Analyze Improve

Green Belt • Part-Time 6 Sigma Leaders

• Run Mini 6 Sigma Projects

• Data Collection Experts

Measure Control
Yellow Belt • Assist in Measure & Control.
 Belt Structure

Yellow Belts: Entry Level team member. Understands

the fundamentals of Six Sigma. Data collection.

Green Belts: Lead and execute process-level

improvement projects.
 Belt Structure

Black Belts: Implement the principles, practices, and

techniques of Six Sigma for maximum
cost reductions. (Lead the project teams)

Master Black Belts: Successfully completed 20 or

more Six Sigma projects.
The Methodologies
 Six Sigma Methodologies
Improvement Model: DMAIC (dee-may-ic)

Define Measure Analyze Improve Control

(Re)Design Model: DMADV (dee-mad-v)

Define Measure Analyze Design Verify

 Six Sigma Methodologies
Improvement Model: DMAIC (dee-may-ic)

Define Measure Analyze Improve Control

(Re)Design Model: DMADV (dee-mad-v)

Define Measure Analyze Design Verify

 The DMAIC Model

At the heart of Six Sigma is a systematic method for

analyzing and improving business processes called
DMAIC. The model includes five elements:
 
Define opportunities 
Measure performance 
Analyze opportunity 
Improve performance 
Control performance
 Define
q What is the business case for the
project?
  q Identify the customer
Next
Next Project
Project q Current state map
q Future state map
q What is the scope of this project?
q Deliverables
q Due date

Control
Measure
q During the project, how will I control
risk, quality, cost, schedule, scope, q What are the key metrics for this
and changes to the plan? business process?
q What types of progress reports should q Are metrics valid and reliable?
I create? q Do we have adequate data on this
q How will I assure that the business process?
goals of the project were q How will I measure progress?
accomplished? q How will I measure project success?
q How will I keep the gains made?

Analyze
q Current state analysis
q Is the current state as good as the
Improve process can do?
q What is the work breakdown q Who will help make the changes?
structure? q Resource requirements
q What specific activities are necessary q What could cause this change effort to
to meet the project's goals? fail?
q How will I re- integrate the various q What major obstacles do I face in
subprojects? completing this project?
Project Phase Candidate Six Sigma Tools

Define q      Project charter

q      VOC tools (surveys, focus groups, letters, comment cards)
q      Process map
q      QFD, SIPOC (suppliers, inputs, process, outputs, customers)
q      Benchmarking

Measure q      Measurement systems analysis

q      Exploratory data analysis
q      Descriptive statistics
q      Data mining
q      Run charts
q      Pareto analysis

Analyze q      Cause-and-effect diagrams

q      Tree diagrams
q      Brainstorming
q      Process behavior charts (SPC)
q      Process Maps
q      Design of Experiments
q      Enumerative statistics (hypothesis tests)
q      Inferential statistics (Xs and Ys)
q      FMEA (failure mode effects analysis)
q      Simulation
Improve q      Force field diagrams
q      7M tools
q      Project planning and management tools
q      Prototype and pilot studies

Control q      SPC

q      FMEA
q      ISO 900x
q      Change budgets, bid models, cost estimating models
q      Reporting system
 Six Sigma Methodologies
Improvement Model: DMAIC (dee-may-ic)

Define Measure Analyze Improve Control

(Re)Design Model: DMADV (dee-mad-v)

Define Measure Analyze Design Verify

 The DMADV Model
Systematic method for creating or reinventing
business processes is DMADV. Typically use:
• New designs
• Existing product or process was optimized
however continues not to meet Six Sigma
objectives.
The model also includes five elements:
Define opportunities 
Measure performance 
Analyze opportunity 
(Re) Design opportunity 
Verify performance
 DMADV vs. DMAIC

DMADV Define DMAIC

Develop NO YES Measure

Does a
Measurement process Existing
Criteria exist? Process

Remove
In
Analyze Special
Control?
Causes

NO
Design Improve Capable?
Analyze

Verify Control
 Tollgate Reviews
• Another component of DMADV and DMAIC that
helps to ensure that the requirements of all
customers are met is the tollgate review.
• At the end of each phase of the DMADV or
DMAIC process, all stakeholders meet to ensure
that:
1) The requirements have not changed
2) What is being designed still addresses the requirements.
3) The measurements really address the requirements.

The tollgate review is an excellent tool for keeping all

customers on the same page, involved in the process and
communicating requirements.
The Six Sigma Project
 Typical “Project” Examples
Thermal insulator pad improvement $207,000
Laser test time cycle reduction $500,000
Reduce past due orders, delivery $1,040,000
Reduction of forge cracks $635,046
Reduction of job change down time $900,000
Reduce cycle time of paint batches $119,000
Wash water generation reduction $83,690
Reducing dppm of cell phone mfg. $408,000
Reduce brazing costs of tail cone assy. $194,000
Computer storage component test $1,100,000
 Six Sigma Pitfalls
1. Companies that adopt Six Sigma as there
quality improvement strategy believe that
every problem should be resolved by a Six
Sigma project team.
2. Insufficient cross-functional team
representation.
3. Inadequate participation by executive
management.
4. Initially a part-time BB requires significant
start-up time to achieve success and may
conflict with other duties.
5. Unrealistic Goals. 3.4 parts per million on
Every Process, Excessive Time and Cost to
Gather Performance Data, etc.
Questions???

Define
D M
• Voice of the Customer (VOC)
- QFD
• XY Matrix
• Process Analysis and FMEA
• Data Collection Methods
• Data Integrity and Accuracy
• Basic Statistics
- Common Distributions
- Central Limit Theorem
- Sampling Distribution of Mean
- Basic Probability Concepts
• Decision-Making
• Non-Normal Data Graphical
• Short vs. Long Term Capability
• Data Analysis (B7)
- Cause and Effect Diagram
- Check Sheets
- Control Charts
- Flowcharts
- Histogram
- Pareto Chart
- Scatter Diagram
• Measurement System
(Gage) Analysis
• Process Capability Assessment
Six Sigma Process
and the Statistical Tools
Measure Analyze
A I
• Graphic Data Analysis
• Multi-Vari Analysis
• Inferential Statistics
- Confidence Intervals
- Sample Size
• Hypothesis Tests
- Means, Variances and Proportions
- ANOVA
- T-Tests
- Test for Equal Variance
- Paired Comparison Tests
- Chi-Square
- Proportion
- Contingency Tables
- Point and Interval Estimation
- Non-Parametric Tests
• Simple Linear Correlation
• Regression-Simple and Multiple
- Measure and Model Relationships
Between Variables
- Binary Logistics
• Process Modeling and Simulation
Improve Control
C
• Hypothesis Tests • Control Charts
- ANOVA -
Theory, Objectives, Benefits
- Non-Parametric tests -
Variable Selection
- Contingency Tables -
Rational Sub-grouping
• Design of Experiments -
Selection/Application
- Terminology -
Analysis
- Plan and Organize Experiments -
Moving Average
- Design Principles -
Exponentially Weighted
- One Factor Moving Average (EWMA)
- Full-Factorial - CuSum
- Two Level Fractional • Process Capability
- Mixture Experiments Assessment
- Taguchi Robustness Concepts
• Response Surface Methodology
- Steepest Ascent/Decent
- High Order Experiments
• Evolutionary Optimization (EVOP)
Design for Six Sigma
• Quality Function Deployment (QFD)
• Robust Design and Process
- Functional Requirements
- Noise Strategies
- Tolerance Design
- Tolerance and Process Capability
• Design Analysis and FMEA
• Reliability Fundamentals
 Six Sigma Process
and the Management Tools

Define Measure Analyze Improve Control

D M A I C

• Business Case The Six Sigma Journey • Lean Enterprise

• Problem/Objective Statement • Enterprise View -
Lean Thinking
• Project Scope • Leadership -
Theory of Constraints
• Project Goals • Business Strategy -
Continuous Flow Manufacturing
• Project Definition • Organizational Goals/Objectives -
Non-Value Added Activities
• Project Charter • Project Management Tools (N7) -
Cycle Time Reduction
• Identify Owners and Stakeholders - Activity Network Diagram -
Cost of Quality
• Identify Customers - Affinity Diagram -
Tools
• Financial Benefits - Interrelationship Digraph Visual Factory, Kanban, Poka-Yoke
• Benchmarking - Matrix Diagram • Solution Implementation
• Team Leadership - Prioritization Matrix/Grid - Mistake-Proofing (Poka-Yoke)
• Team Dynamics and Performance - Tree Diagram - Visible Enterprise
• Change Agent - Process Decision Program Chart
• Performance Measurements • What’s Next-Six Sigma Evolution
• Gap Analysis • Control Plans
• High Level Process Mapping/ SIPOC - Training
Design for Six Sigma - Documentation
(Suppliers, Inputs, Process, Output, and Customers) • Design for (X) - Monitoring
- Manufacturing (DFM) - Response
- Cost (DFC) - Systems and Structures
- Test (DFT) • Total Productive Maintenance
- Maintainability (DFMA) (TPM)
- Quality/Reliability (DFQ) • Best Practice Sharing/Translation
• Special Design Tools
- Inventive Problem Solving
- Axiomatic Design