P. 1
six sigma

six sigma

|Views: 223|Likes:

More info:

Published by: Klrpoojitha Poojitha on Feb 04, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

01/25/2014

pdf

text

original

In statistics, the 68-95-99.

7 rule, or three-sigma rule, or empirical rule, states that for a normal distribution, nearly all values lie within 3 standard deviations of the mean. About 68% of the values lie within 1 standard deviation of the mean. In statistical notation, this is represented as: . About 95% of the values lie within 2 standard deviations of the mean. The statistical notation for this is: . Nearly all (99.7%) of the values lie within 3 standard deviations of the mean. Statisticians use the following notation to represent this: . This rule is often used to quickly get a rough probability estimate of something, given its standard deviation, if the population is assumed normal, thus also as a simple test for outliers (if the population is assumed normal), and as a normality test (if the population is potentially not normal). Recall that to pass from a sample to a number of standard deviations, one computes the deviation, either the error or residual (accordingly if one knows the population mean or only estimates it), and then either uses standardizing (dividing by the population standard deviation), if the population parameters are known, or studentizing (dividing by an estimate of the standard deviation), if the parameters are unknown and only estimated. To use as a test for outliers or a normality test, one computes the size of deviations in terms of standard deviations, and compares this to expected frequency. Given a sample set, compute the studentized residuals and compare these to the expected frequency: points that fall more than 3 standard deviations from the norm are likely outliers (unless the sample size is significantly large, by which point one expects a sample this extreme), and if there are many points more than 3 standard deviations from the norm, one likely has reason to question the assumed normality of the distribution. This holds ever more strongly for moves of 4 or more standard deviations. One can compute more precisely, approximating the number of extreme moves of a given magnitude or greater by a Poisson distribution, but simply, if one has multiple 4 standard deviation moves in a sample of size 1,000, one has strong reason to consider these outliers or question the assumed normality of the distribution. Six Sigma is a business management strategy originally developed by Motorola, USA in 1986.[1][2] As of 2010, it is widely used in many sectors of industry, although its use is not without controversy. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.[3] It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods.[3] 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).[3] The term six sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modelling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigmas" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it.

METHODS Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.[12]
y y

DMAIC is used for projects aimed at improving an existing business process.[12] DMAIC is pronounced as "duh-may-ick". DMADV is used for projects aimed at creating new product or process designs.[12] DMADV is pronounced as "duh-mad-vee".

[edit] DMAIC

The DMAIC project methodology has five phases:
y y y

y

y

Define the problem, the voice of the customer, and the project goals, specifically. Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

[edit] DMADV or DFSS

The DMADV project methodology, also known as DFSS ("Design For Six Sigma"),[12] features five phases:
y

Define design goals that are consistent with customer demands and the enterprise strategy.

y y y y

Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

[edit] Quality management tools and methods used in Six Sigma

Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many established quality-management tools that are also used outside of Six Sigma. The following table shows an overview of the main methods used.
y y y y y y y y y y y y y y

5 Whys Analysis of variance ANOVA Gauge R&R Axiomatic design Business Process Mapping Cause & effects diagram (also known as fishbone or Ishikawa diagram) Chi-square test of independence and fits Control chart Correlation Cost-benefit analysis CTQ tree Design of experiments Failure mode and effects analysis (FMEA) General linear model

y y y y y y

y y y y y y y

Histograms Quality Function Deployment (QFD) Pareto chart Pick chart Process capability Quantitative marketing research through use of Enterprise Feedback Management (EFM) systems Regression analysis Root cause analysis Run charts SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) Taguchi methods Taguchi Loss Function TRIZ

DMAIC Process
Define the Problem Measure & Analysis Improve

research and healthcare.Control . Six Sigma is a disciplined. nonprofit. a process must not produce more than 3. To achieve Six Sigma. The key to Six Sigma is the completion of leadership sponsored projects.Provide full information about the problem such as the rejection %.4 defects per million . Six Sigma project success stories exist from organizations including manufacturing. SixSigma. Suspected sources of variations for the problem.us offers both live and online programs Six Sigma ± what does it mean? Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma Certification requires completing an actual Six Sigma project. service.from manufacturing to transactional and from product to service. data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process -. The statistical representation of Six Sigma describes quantitatively how a process is performing. government. type of response Apply DOE techniques and arrive at the ³Root cause´ (Controllable cause) for the problem Validate the Root cause using B vs C Identify and Implement solution for eliminating the root causes Identify and Implement control measures for the root cause to make sure that the problem is prevented from occurring D: Define the Strategic Direction of the organization M: Set Measures for the strategic objectives of the organization A: On a continual basis collect data on the measures set and Analyze using Six Sigma tools and techniques I: Identify the opportunities for Improvement and convert them to Lean Six Sigma projects for improvement C: Set up a management Control action of continuous reviews on the improvements made on the Lean Six Sigma Projects Six Sigma is a proven disciplined approach for improving measurable results for any organization.

The Six Sigma DMAIC process (define. Black Belts save companies approximately $230.opportunities. Since then. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. analyze. Overview Six Sigma is all about mindset and culture shift that eliminates the marginal methods that have been used in the past and replacing them with a set of simple yet sophisticated statistical/analytical tools that continually produce exceptional results in how processes operate. measure. based on the similar change management philosophies and applications of tools. A Six Sigma defect is defined as anything outside of customer specifications. According to the Six Sigma Academy.000 per project and can complete four to 6 projects per year. analyze. design. General Electric. and are overseen by Six Sigma Master Black Belts. data-driven approach and methodology for eliminating defects in any process²from manufacturing to transactional and from Topics Covered in the Program product y y to service. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts. control) is an improvement system for existing processes falling below specification and looking for incremental improvement. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. measure. improve. one of the most successful companies implementing Six Sigma. It helps to create a high Introduction to six sigma Define Measure Analyze Improve Control y y y y . It can also be employed if a current process requires more than just incremental improvement. Six Sigma Consultants all over the world have developed proprietary methodologies for implementing Six Sigma quality. Process sigma can easily be calculated using a Six Sigma calculator. thousands of companies around the world have discovered the far reaching benefits of Six Sigma. verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It is based on the organized application of a set of statistical/analytical and problem solving tools/techniques. A Six Sigma opportunity is then the total quantity of chances for a defect. It is a measurement-based methodology that focuses on process improvement and variation reduction. The Six Sigma DMADV process (define. Many frameworks exist for implementing the Six Sigma methodology. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. has estimated benefits on the order of $10 billion during the first five years of implementation. Six Sigma Green Belt Certificate Program Six Sigma is a disciplined.

and redesigning the processes. Develop an approach to six sigma that is appropriate for the management team.30AM-5. Each module contains theory followed by case studies These sessions include group time and teaching/applying the Six Sigma body of knowledge including: Six Sigma Green Belt Certificate Course Code PI 09 Term: 2006 y y y y y y y The identification of core processes Defining customer requirements Measuring current performance Defining opportunities for improvement Measuring the relevant processes requiring improvement Gathering and analyzing the data required to investigate causes Improving. Acquire the prerequisites for accepting a leadership role in six sigma transformations. o Striving for and/or meeting six sigma quality standards o Continuous cost reduction based on continuous process improvements o Increased productivity as both management. Become highly visible to top management as a result of participation in successful six sigma transformations. Qualification DEGEREE/DIPLOMA IN FINAL YEAR Location BANGALORE Benefits to the individual Dates y y y y y y Acquire the necessary abilities and skills to implement six sigma effectively and economically. 29 SEPTEMBER-2nd (4days) Timing 8.30 PM Required Fees /CANDIDATE Rs 1500 Online Registration Limited seats register ear Benefits to the company y y y y y Develop a core group of managers and professional personnel who can work as a team in the implementation of six sigma. Acquire certification in a set of management disciplines that are fastbecoming indispensable to meeting world-class standards of performance. technology. Develop a more accountable and responsible management group capable of becoming industry leaders. and work force of the organization. resources. and workforce become more disciplined in the six sigma methodology o Synchronous work flow based on more effective process linkage o Elimination of waiting time within and between processes o Waste reduction resulting from meeting more demanding performance standards TOOLS y y y y y y y y y y y y y Brain storming Pareto chart Project Charter SIPOC Stake holder analysis Process mapping Fish bone analysis gage R&R SPC Control charts Process capability Hypothesis testing ANOVA Measurement system anal . staff. Acquire the understanding and skills required be a high impact player in the six sigma transformations. Develop a comprehensive and integrated approach to six sigma that takes in to account the necessary training required in all functions and at all levels within the organization. This is a 4days certificate program consisting of 6 modules that is designed to teach the six sigma way of process improvement. this program equips participants to play a major role in its initiation and implementation. In firms undertaking the six sigma transformation. Become more effective operationally in the following ways: o Shorter cycle times for all key processes. controlling.performance organization.

SIPOC Measure y y y y y y Process Analysis and documentation Determining measurements Probability and statistics Analyzing the measurement system Analyzing process capability Introduction to Analyze y y y y y Exploratory data analysis Sources of variation Hypothesis testing Introduction to ANOVA Regression Analysis Improve y y y y y Control Developing solutions Design of experiments Process Optimization Response Surface Methodology Evolutionary Operations y y y y Statistical process control Advanced statistical process control Implementing process controls Attribute and variable control charts . goals and targets Process Mapping.o o o Topics Improved customer service based on more robust and dependable process designs More efficient use of resources resulting from both improved process designs and better management practices Elimination of ³silo management´ in the organization structure y DOE Introduction to six sigma y y y Define Six Sigma and achieving competitive advantage Understanding roles of leadership and key players Overview of DMAIC methodology y y y Identifying customers and customer requirements Developing team objectives.

Learn why six standard deviations is worthwhile for your organization to measure What does it mean to be "Six Sigma"? Six Sigma at many organizations simply means a measure of quality that strives for near perfection. analyze for root cause. Six Sigma has kept its edge while some other management approaches are in perishable stage or already perished due to following reasons: 1. The quantitative analytics ± that we cannot remove from the business environment 2. improve the process and implement process controls. The Six Sigma methodology is well rooted in statistics and statistical mathematics. But the statistical implications of a Six . candidates present their project work Who Should Attend y y y y y y y y y GENERAL MANAGERS FACTORY MANAGERS BUSINESS MANAGERS FINANCE /COSTING MANAGERS PRODUCTION MANAGERS PROJECT MANAGERS QUALITY MANAGERS GROUP LEADS SERVICE MANAGERS y y y y y y y y y MANUFACTURING BPO SOFTWARE MEDICAL HOTELS AIR LINES BANKING CONSTRUCTION COLLEGES What is Six Sigma? Six Sigma is a management methodology meant to drive process improvements in the organization through quantitative approach. At the end of the class. establish a process map. perform . There is no other tangible benefits apart from the actual improvement which the organization realizes during the Six Sigma journey. identify critical-to-quality (CTQ) characteristics.y Monitoring progress Project Work (Apply DMAIC) Participants define a problem.

Lean. professes that businesses using Six Sigma are underperforming their peers in terms of stock price. Is This A Six Sigma. Or Kaizen Project? Executives who develop a working knowledge of Six Sigma. this results in six process standard deviations between the mean of the process and the customer's specification limit (hence. in this case. this translates to slightly more than six process standard deviations between the mean and each specification limit such that the total defect rate corresponds to equivalent of six process standard deviations. but what specifically makes Six Sigma more valuable than the others and then. Linking Quality to Finances Process improvements should be tied to financial results in order to sustain a business. But should we add Six Sigma to the list of growing management fads? Various Six Sigma Versus Lean In this excerpt from the iSixSigma Discussion Forum. For a process with two specification limits (Upper and Lower). Is Six Sigma for Real? Question Deserves Solid Answers Many quality improvement methods talk about measuring and improving. this will result in no more than 3. The objective of Six Sigma Quality is to reduce process output variation so that on a long term basis. posters debate the differences between Lean and Six Sigma.Sigma program go well beyond the qualitative eradication of customer-perceptible defects. It's a methodology that is well rooted in mathematics and statistics. 6 Sigma). Six Sigma Is Just A Fad Most likely you've heard that Six Sigma is just a fad. and Kaizen are much better prepared to build the right infrastructure and lead their organizations Linking Quality to Business Finances If it didn't make sense financially. . How Is Six Sigma Different? Articles Debunking Dubious Statistics from a Six Sigma Critic The principal and founder of a performance improvement consulting firm.4 defect Parts Per Million (PPM) opportunities (or 3. which is the customer's aggregate experience with our process over time. Lean. and how the two can be used together. you wouldn't do it. Learn why linking Quality to financial results benefits everyone in the business.4 Defects Per Million Opportunities ± DPMO). For a process with only one specification limit (Upper or Lower).

performing a gap analysis. But with some flexibility in viewpoints. which detail how sigma level relates to defects per million opportunities (DPMO). the DFSS Study: Develop Software to Track Drug Side Effects A pharmaceutical company used DFSS tools to develop a new pharmacovigilance system (captures and analyzes observed drug side effects) in association with the launch of DFSS Technology Tips New technology implementations can be tricky business for Quality professionals. Optimize. it may help to consider these charts. CEOs are claiming billions of dollars saved. based on Berryman's scorecard. Customer CTQs . posters compare and contrast Six Sigma and its predecessor. conferences are popping up everywhere. Design. pharmaceutical developers use the DFSS methodolgy Identify. Unit and Opportunity In order for any process capability to accurately be calculated. and yet one can argue that Six Why Choose Six Sigma Over Kaizen? In this excerpt from the iSixSigma Discussion Forum. What Makes Six Sigma Work? Consultants are earning seven figure salaries. Sigma Level Articles A Method for Aligning the Six Sigma Performance Metric Some Six Sigma practitioners are concerned about the current method used to calculate Z-scores and express process capability. and how to integrate the two. conflict seems likely.Six Sigma Versus TQM In this excerpt from the iSixSigma Discussion Forum. posters discuss the benefits of Six Sigma and Kazien. This article summarizes lessons-learned involving champions. unit and opportunity of a customer Should You Calculate Your Process Sigma? Practitioners must learn when and how to calculate the sigma level of a process.Friend or Foe? Can DFSS work in a software organization with an Agile development orientation? At first glance. one must properly define and quantify the process defect. TQM. involving . A proposed modification. Verify to find the best formula for masking the bitter taste of DFSS Meets Agile Development . and In this case study. Sigma Performance Levels .Defining Defect.One to Six Sigma When learning about Six Sigma. modifying culture and behaviors.

The analogy is a one good for understanding product development. a couple of notions about Six Sigma that are being accepted as truths are a bit out of step with the Implementing Design for Six Sigma (DFSS) in Europe Sets of questions offer help for implementing Design for Six Sigma (DFSS) to those working on the development of new products.and customers know about it .DMAIC and DFSS Roadmaps: How to Connect and Integrate? While Six Sigma has grown from being primarily aimed at process improvement to also target design and innovation. making a single DMAIC-DFSS roadmap elicits numerous Design for Six Sigma (DFSS) Sections DFSS Roadmaps DFSS Project Examples Design for Six Sigma (DFSS) Articles DMAIC Versus DMADV DMAIC and DMADV are two Six Sigma methodologies that eliminate defects from a process or product. Six Sigma is .the Validate phase -. Learn about DMAIC and DMADV and when it is Doing Some Software Six Sigma and Agile Mythbusting In serious software discussions.is critical to the long-term success Process Model Improves Wound Care Turnaround Time When routine analysis of turnaround times at LDS Hospital revealed that the ED treatment of patients with simple lacerations took an average of more than Product Development: Orchestrating a Better Vision Many similarities exist between an orchestra and the product development process. Now in its fifth year. DFSS and coaching project Promises of Brand Strategy and Design for Six Sigma When a company is able to consistently deliver the products. new services or design Importance of the Validate Phase in a Design Project As important as the initial phases of the IDOV process are. Black & Veatch established Six Sigma to unify and control change in its processes. the last step -. services and experiences it promises .both the customers Six Sigma Drives Design Efficiencies at Black & Veatch Beginning in 2003.

Measure. Each step in the cyclical DMAIC Process is required to ensure the best possible results. and the Core Business Process involved. Analyze. and Control. Analyze. and is an integral part of the company's Six Sigma Quality Initiative. Analyze.those who have strong needs before average consumers. Design. Using Design for Six Sigma (DFSS) is one way What Is DFSS? Design for Six Sigma (DFSS). See DMAIC Methodology Pronounced (Duh-May-Ick). If lead users can be identified To Use DMEDI or to Use DMAIC? That Is the Question As Six Sigma organizations mature they begin to question when a process will benefit from improvement (DMAIC) versus one that offers a new design (DMEDI). Using DFLSS to Evaluate a New Loan Referral Process A business can save time and effort by being able to evaluate the feasibility of an idea early on. Measure.Taking Advantage of Computer-Based Analysis for DFSS DFSS integrates marketing. Measure. The process steps: Define the Customer. Improve. Product and process complexity and fast-paced marketing schedules demand that DFSS takes advantage of Tapping Voice of the Lead User for Design for Six Sigma Not all average consumers are average. Verify). And that is exactly the capability Design for Six Sigma (DFSS) Articles Using DFSS to Improve Offshore Outsourcing Efficiency Offshore outsourcing of software development work has been an emerging trend for about a dozen years. or the Six Sigma DMADV process (Define. Incremental process improvement using Six Sigma methodology. some are lead users -. . DMAIC refers to a data-driven quality strategy for improving processes. their Critical to Quality (CTQ) issues. is an improvement system used to develop new processes Define. Improve. engineering and production information into the design world. Control. DMAIC is an acronym for five interconnected phases: Define.

y Define who customers are. y Identify gaps between current performance and goal performance y Prioritize opportunities to improve y Identify sources of variation Improve the target process by designing creative solutions to fix and prevent problems. and what their expectations are y Define project boundaries the stop and start of the process y Define the process to be improved by mapping the process flow Measure the performance of the Core Business Process involved. training. y Develop a data collection plan for the process y Collect data from many sources to determine types of defects and metrics y Compare to customer survey results to determine shortfall Analyze the data collected and process map to determine root causes of defects and opportunities for improvement. what their requirements are for products and services. y Prevent reverting back to the "old way" y Require the development. documentation and implementation of an ongoing monitoring plan y Institutionalize the improvements through the modification of systems and structures (staffing. y Create innovate solutions using technology and discipline y Develop and deploy implementation plan Control the improvements to keep the process on the new course. incentives) .

Goals and Benefits Identify Champion. prior knowledge of the tools and techniques is necessary in determining which tools are useful in each phase.Measure Phase: Measure the process to determine current performance. it should be noted that an iterative approach may be necessary -.The Six Sigma methodology follows the Define. Analyze. Control (DMAIC) roadmap for process improvement. and later add the DFSS (Design for Six Sigma. y y y y y y y Define Defect. In addition. Most companies begin implementing Six Sigma using the DMAIC methodology. The Six Sigma DMAIC (Define. You can read the main differences between DMAIC and DMADV. Improve. you may find that upon analyzing your data (Analyze phase) you did not gather enough data to isolate the root cause of the problem. Opportunity. the appropriate application of tools becomes more critical for effectiveness than correctness. y y y y y y y Define Customers and Requirements (CTQs) Develop Problem Statement.especially for Black Belts and Green Belts that are new to the tools and techniques that make up DMAIC. Remember.Define Phase: Define the project goals and customer (internal and external) deliverables. quantify the problem. DMAIC Phase Steps Tools Used D . At this point. 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 y y y y y y Process Flowchart Data Collection Plan/Example Benchmarking Measurement System Analysis/Gage R&R Voice of the Customer Gathering Process Sigma Calculation . you may iterate back to the Measure phase. Measure. For instance. but we'll focus on the DMAIC in this article. Analyze. Improve. While the DMAIC methodology presented below may appear linear and explicitly defined. and you don't need to use all the tools all the time. Control) methodology can be thought of as a roadmap for problem solving and product/process improvement. Process Owner and Team Define Resources Evaluate Key Organizational Support Develop Project Plan and Milestones Develop High Level Process Map y y y y y y y Project Charter Process Flowchart SIPOC Diagram Stakeholder Analysis DMAIC Work Breakdown Structure CTQ Definitions Voice of the Customer Gathering Define Tollgate Review M . also known as DMADV or IDDOV) methodologies when the organizational culture and experience level permits. Measure.

y y y y y y y y y y y y y y y y 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 Histogram Pareto Chart Time Series/Run Chart Scatter Plot Regression Analysis Cause and Effect/Fishbone Diagram 5 Whys Process Map Review and Analysis Statistical Analysis Hypothesis Testing (Continuous and Discrete) Non-Normal Data Analysis Analyze Tollgate Review I .Improve Phase: Improve the process by eliminating defects.Control Phase: Control future process performance. y y y y y y Define and Validate Monitoring and Control System Develop Standards and Procedures Implement Statistical Process Control Determine Process Capability Develop Transfer Plan. Profit Growth y y y y Process Sigma Calculation Control Charts (Variable and Attribute) Cost Savings Calculations Control Plan .Analyze Phase: Analyze and determine the root cause(s) of the defects. Cost Savings/Avoidance. Handoff to Process Owner Verify Benefits. y y y y y y 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 y y y y y y y Brainstorming Mistake Proofing Design of Experiments Pugh Matrix House of Quality Failure Modes and Effects Analysis (FMEA) Simulation Software Improve Tollgate Review C .Baseline Measure Tollgate Review A .

and committed to work on improvement project.y y Close Project. Team is equipped with available and reliable resources. there are certain deliverables. Full participation by members in regularly held team meetings. Team formed and team leaders (MBBs/Coaches and BBs/Project Leads) assigned. roles and responsibilities. the following Six Sigma DMAIC quick reference sheets can help prepare for your milestone review. including business case. Team members perform project work when assigned and in a timely fashion. business process mapped. Improve. Data collected and displayed to better understand customer(s) critical needs and requirements. checkpoints. communication plan. team charter developed. . Measure. Team members regularly document their project work. project scope. Finalize Documentation Communicate to Business. Control Define Phase Deliverables Of Phase: y y Fully trained team is formed. Analyze. questions and concerns that the Black Belt and improvement team should be aware of prior to a tollgate/milestone review. Checkpoints For Completion: Team Readiness y y y y y y y Team is sponsored by a champion or business leader. problem and goal statements. Customers (and CTQs) y y Customer(s) identified and segmented according to their different needs and requirements. Celebrate Control Tollgate Review The DMAIC methodology should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately. supported. In lieu of or in addition to your Master Black Belt tollgate/milestone preparation review. For DMAIC milestone reviews. Team Charter y Project management charter. Jump to: Define. milestones. Customers identified and high impact characteristics (CTQs) defined. Improvement team members fully trained on Six Sigma and DMAIC.

Business Case: What are the compelling business reasons for embarking on this project? Is the project linked to key business goals and objectives? What key business process output . including BBs/Project Leads and MBBs/Coaches? Has everyone on the team. and validated high-level 'as is' (not 'should be' or 'could be') business process map. describing the Suppliers. verified.Business Process Mapping y y Completed. and Customers. have appointed substitutes attended to preserve cross-functionality and full representation? If substitutes have been appointed. Outputs. measurable requirements? How? Team Charter y y y Has a team charter been developed and communicated? Has the charter changed at all during the course of the project? If so. Questions To Determine Appropriate Application: Team Readiness y y y y y y y y y y Who are the improvement project team members. Process. have they been briefed on the project charter and goals and received regular communications as to the project's progress to date? Has the project work been fairly and/or equitably divided and delegated among team members who are qualified and capable to perform the work? Has everyone contributed? Are there any constraints known that bear on the ability to perform project work? How is the team addressing them? How is the team tracking and documenting its work? Is the team adequately staffed with the desired cross-functionality? If not. what additional resources are available to the team? Customers (and CTQs) y y y y y Has the customer(s) been identified? Are there different segments of customers? Has the improvement team collected the 'voice of the customer' (obtained feedback qualitative and quantitative)? What customer feedback methods were used to solicit their input? Have the customer needs been translated into specific. when did it change and why? Does the charter include the following? . including the team leaders. Inputs. Completed SIPOC representation. been properly trained (on DMAIC)? Does the team have regular meetings? How often are the team meetings? Is there regularly 100% attendance at the team meetings? If not.

attainable. or similar been developed/completed? How did the project manager receive input to the development of the plan and the estimated completion dates/times of each activity? Is there a critical path to complete the project? How will variation in the actual durations of each activity be dealt with to ensure that the expected project completion date is met? .who. what.Communication Plan: What are the dynamics of the communication plan? What critical content must be communicated . where. what it should be vs. Outputs. reviewed. what knowledge can be leveraged from these previous efforts? How will the project team and the organization measure complete success for this project? .measure(s) will the project leverage and how? What are the rough order estimates on cost savings/opportunities on this project? . Gantt chart. verified and validated? Has a SIPOC diagram been produced describing the Suppliers. when. measurable. Inputs.Project Scope: What are the boundaries of the scope? What is in bounds and what is not? What is the start point? What is the stop point? How does the project manager ensure against scope creep? Is the project scope manageable? What constraints exist that might impact the team? .Problem Statement: What specifically is the problem? Where does it occur? When does it occur? What is its extent? .Milestones: When was the project start date? When is the estimated completion date? Is the project currently on schedule according to the plan? Has a project plan. and Customers? Is the improvement team aware of the different versions of a process: what they think it is vs. Process.Goal Statement: What is the goal or target for the improvement team's project? Do the problem and goal statements meet the SMART criteria (specific. relevant. what it could be? Is the current 'as is' process being followed? If not. what it actually is vs.Roles and Responsibilities: What are they for each team member and its leadership? Where is this documented? . what are the discrepancies? Are different versions of process maps needed to account for the different types of inputs? How was the 'as is' process map developed. verified and validated? What tools and roadmaps did you use for getting through the Define phase? . and how? When are meeting minutes sent out? Who is on the distribution list? How do you keep key subject matter experts in the loop? Business Process Mapping y y y y y y y Has a high-level 'as is' process map been completed. and time-bound)? Has anyone else (internal or external to the organization) attempted to solve this problem or a similar one before? If so.

data collection planned and executed. plots. sigma level calculated. Data Collection Planned and Executed y y Solid data collection plan established that includes measurement systems analysis. yield. Performance Baseline/Sigma Calculation y Measure baseline process performance (capability. defect(s). present. and opportunities that will figure into the sigma calculations and process capability metrics? Data Collection Planning and Execution y y y y y y Was a data collection plan established? What data was collected (past. Checkpoints For Completion: Key Measures Identified y y Key measures identified and agreed upon. performance baselined. sigma level). Data collected on key measures that were identified. Process Variation Displayed/Communicated y y Process variation components displayed/communicated using suitable charts. future/ongoing)? Who participated in the data collection? How did the team select a sample? What has the team done to assure the stability and accuracy of the measurement process? Was a gauge R&R conducted? . High impact defects defined and identified in the business process. graphs. Questions To Determine Appropriate Application: Key Measures Identified y y y What are the key input variables? What the key process variables? What are the key output variables? What key measures identified indicate the performance of the business process? What are the agreed upon definitions of the high impact characteristics (CTQs). unit(s). Long term and short term variability accounted for. process variation displayed and communicated.Measure Phase Deliverables Of Phase: Key measures identified.

quantifying the gap/opportunity. Verify and quantify the root causes of variation. root cause analysis. Quantifying the Gap/Opportunity y y Determine the performance gap. Segment and stratify possible causes (sources of variation).y Was stratification needed in the data collection and analysis? Process Variation Displayed/Communicated y y What charts has the team used to display the components of variation in the process? What does the chart tell us in terms of variation? Performance Baseline/Sigma Calculation y y y y y What is the current process performance in terms of it capability indices? What is the current process performance in terms of its yield or sigma level(s)? How large is the gap between current performance and the customer-specified (goal) performance? Have you found any 'ground fruit' or 'low-hanging fruit' for immediate remedies to the gap in performance? What particular quality tools did the team find helpful in getting through the measure phase? Analyze Phase Deliverables Of Phase: Data and process analysis. Questions To Determine Appropriate Application: Data and Process Analysis y What does the data say about the performance of the business process? . Prioritize list of 'vital few' causes (key sources of variation). Checkpoints For Completion: Data and Process Analysis y Identify gaps between current performance and the goal performance. Root Cause Analysis y y y y Generate list of possible causes (sources of variation). Display and communicate the gap/opportunity in financial terms.

select the best solutions. verified. design implementation plan. . and validated? What did the team gain from developing a sub-process map? What were the crucial 'moments of truth' on the map? Were there any cycle time improvement opportunities identified from the process analysis? Were any designed experiments used to generate additional insight into the data analysis? Did any additional data need to be collected? What model would best explain the behavior of output variables in relation to input variables? Root Cause Analysis y y y y y y What tools were used to generate the list of possible causes? Was a cause-and-effect diagram used to explore the different types of causes (or sources of variation)? What tools were used to narrow the list of possible causes? Were Pareto charts (or similar) used to portray the 'heavy hitters' (or key sources of variation)? What conclusions were drawn from the team's data collection and analysis? How did the team reach these conclusions? Quantifying the Gap/Opportunity y y y y y y y y What is the cost of poor quality as supported by the team's analysis? Is the process severely broken such that a re-design is necessary? Would this project lend itself to a DFSS project? What are the revised rough order estimates of the financial savings/opportunity for the improvement project? Have the problem and goal statements been updated to reflect the additional knowledge gained from the analyze phase? Have any additional benefits been identified that will result from closing all or most of the gaps? What were the financial benefits resulting from any 'ground fruit or low-hanging fruit' (quick fixes)? What quality tools were used to get through the analyze phase? Improve Phase Deliverables Of Phase: Generate (and test) possible solutions. Checkpoints For Completion: Generating (and Testing) Possible Solutions y Possible solutions generated and tested.y y y y y y y y y Did any value-added analysis or 'lean thinking' take place to identify some of the gaps shown on the 'as is' process map? Was a detailed process map created to amplify critical steps of the 'as is' business process? How was the map generated.

risk management plan. and control plan. resources. Pilot data collected and analyzed. or otherwise) that would inhibit certain solutions? Was a pilot designed for the proposed solution(s)? Describe the design of the pilot and what tests were conducted. Project impact on utilizing the best solution(s). Designing Implementation Plan y y Solution implementation plan established. if any. Cost/benefit analysis of optimal solution(s). cultural. from the pilot were incorporated into the design of the full-scale solution? Designing The Implementation Plan y y y y y y y y Is the improvement plan best served by using the DFSS approach? What is the implementation plan? What poka-yoke or error proofing will be done to address some of the discrepancies observed in the 'as is' process? What does the 'should be' process map/design look like? How does the solution remove the key sources of variation discovered in the analyze phase? What attendant changes will need to be made to ensure that the solution is successful? What communications are necessary to support the implementation of the solution? How will the team or the process owner(s) monitor the implementation plan to see that it is working as intended? . including schedule/work breakdown structure. Questions To Determine Appropriate Application: Generating (And Testing) Possible Solutions y y How did the team generate the list of possible solutions? What tools were used to tap into the creativity and encourage 'outside the box' thinking? Selecting The Best Solution(s) y y y y y y y y What tools were used to evaluate the potential solutions? Were any criteria developed to assist the team in testing and evaluating potential solutions? What were the underlying assumptions on the cost-benefit analysis? Are there any constraints (technical. Improved process ('should be') maps modified based on pilot data and analysis. Contingency plan established. if any? What conclusions were drawn from the outcomes of the pilot? What lessons. New and improved process ('should be') maps developed. political. cost/budget.Selecting The Best Solution(s) y y y y y y y Optimal solution selected based on testing and analysis. Small-scale pilot for proposed improvement(s).

documented procedures. and deployed. understood. Response Plan y Response plans established. Transfer of Ownership (Project Closure) y Transfer ownership and knowledge to process owner and process team tasked with the responsibilities. Checkpoints For Completion: Monitoring Plan y Control plan in place for sustaining improvements (short and long-term). response plan established and deployed. Process Standardization y New process steps. transfer of ownership (project closure). and output variables be checked to detect for sub-optimal conditions? How will new or emerging customer needs/requirements be checked/communicated to orient the process toward meeting the new specifications and continually reducing variation? Are control charts being used or needed? . standardized process. Questions To Determine Appropriate Application: Monitoring Plan y y y y y y What is the control/monitoring plan? How will the process owner and team be able to hold the gains? What key inputs and outputs are being measured on an ongoing basis? How will input. standards. Documented Procedures y y Operating procedures are consistent.y y y What is the team's contingency plan for potential problems occurring in implementation? How will the organization know that the solution worked? What tools were most useful during the improve phase? Control Phase Deliverables Of Phase: Documented and implemented monitoring plan. process. and documentation are ingrained into normal operations. Knowledge gained on process is shared and institutionalized.

g. process capabilities? Is there a recommended audit plan for routine surveillance inspections of the DMAIC project's gains? What is the recommended frequency of auditing? What should the next improvement project be that is related to the process? What quality tools were useful in the control phase? Integrating and Institutionalizing Improvements.y y y y y How will control chart readings and control chart limits be checked to effectively monitor performance? Will any special training be provided for control chart interpretation? Is this knowledge imbedded in the response plan? What is the most recent process yield (or sigma calculation)? Does the process performance meet the customer's requirements? Process Standardization y Has the improved process and its steps been standardized? Documented Procedures y y y y Is there documentation that will support the successful operation of the improvement? Does job training on the documented procedures need to be part of the process team's education and training? Have new or revised work instructions resulted? Are they clear and easy to follow for the operators? Response Plan y y y y y Is a response plan in place for when the input. Knowledge and Learnings y What other areas of the organization might benefit from the project team's improvements. knowledge. plan-do-check-act)? Are suggested corrective/restorative actions indicated on the response plan for known causes to problems that might surface? Does a troubleshooting guide exist or is it needed? Transfer Of Ownership (Project Closure) y y y y y y y Who is the process owner? How will the day-to-day responsibilities for monitoring and continual improvement be transferred from the improvement team to the process owner? How will the process owner verify improvement in present and future sigma levels. and learning? .. or output measures indicate an 'out-ofcontrol' condition? What are the critical parameters to watch? Does the response plan contain a definite closed loop continual improvement scheme (e. process.

metrics/dashboards/scorecards. processes. patient backlogs. Applying Six Sigma to Improve Diagnostic Imaging Despite the many amazing advances in imaging technologies. to prioritize projects to Achieving and Sustaining Improvement in Cardiac Medication A Six Sigma cardiac medication project at Virtua Health of New Jersey was successful in coordinating high-quality care. and second. 15 Criteria for Selecting a Viable DMAIC Project Having a robust and reliable approach to. or deletions in order to facilitate knowledge transfer and improvements? DMAIC Articles 1. and infrastructures (hiring practices. analyze and improve a transactional bank deposit process. incentives/rewards. additions. quickly determine whether the project is indeed a good DMAIC project. especially with ambulatory and cosmetic procedures. staffing. operations. first. training. measure. etc. reliable measurement data is needed. incorporating advanced technologies. the benefits may not be fully realized if process problems. If they want to ensure they can meet customer expectations.5 Sigma Process Shift Explanation Why is 6 sigma 3.4 ppm. Unfortunately that data normally comes from an improvement Combining the Power of DMAIC with Testing Processes Companies today make great financial investments in testing their processes and systems. productivity issues or other concerns Attention Six Sigma. changes. hospitals are finding that Six Sigma is a useful tool for Bank Deposits: A Black Belt Case Study A case study of how a Black Belt used Six Sigma tools to define. not 2 ppb? The calculation of process sigma after a process improvement project should be reported as short-term sigma. resulting in Building a Business Case for Software Defect Reduction For a software company to make a business case for process improvement.y y How might the organization capture best practices and lessons learned so as to leverage improvements across the business? What other systems. which has led to an increased volume in call centers.) need updates. Within these centers. customers still need personal assistance sometimes. it is sensible . You re Wanted in Surgery With the demand for surgical services growing rapidly. adopting best practice standards Aligning Call Center Agent Goals with Customer Desires In the world of online banking.

Uncommon Success in Europe Whether implementing Six Sigma in Munich or Manhattan.improved in each organization that uses Six Sigma http://www. there are certain common factors that are critical for success. a big challenge takes shape: handling Improving ED Wait Times at North Shore University Hospital North Shore University Hospital in Forest Hills.Y. Implementing that training to achieve dramatic improvements in How To Calculate Process Sigma Calculating your process sigma can be accomplished in 5 simple steps: Define your opportunities. Improving a Health System's Cash Flow Management The healthcare industry is going through mergers and acquisitions and facing new economic trials.com/index. measure your opportunities and defects. calculate your yield. define your defects. which was developed by members of the Software Engineering Institute (SEI).Common Success Factors.. P&R IM implemented an electronics stewardship plan. As hospitals consolidate resources regionally. and the Six Sigma DMAIC roadmap are examined for ways they Continuous Improvement Should Apply to DMAIC Itself Six Sigma's DMAIC roadmap is a process unto itself that can be . Paris or Prague. initiated a Six Sigma project aimed at improving the patient experience by reducing wait times in its . But implementing these common Comparing and Contrasting IDEAL and DMAIC The IDEAL model. it is worthwhile to consider recorded complaints data in order to Helping the Help Desk Satisfy Customers More Quickly: An iSixSigma Case Study Training employees in the relevant tools and techniques of Six Sigma and Lean methodologies is step 1.php?option=com_content&view=article&id=201&Itemid=27 Coronary Artery Bypass Grafts: Six Sigma Breakthrough Multi-million dollar savings are generated by 'beating heart' or 'off-pump' coronary artery bypass outcomes. While DMAIC is well-proven. The agency's approach to improving energy efficiency and electronics stewardship DMAIC Project Selection Using a Systematic Approach Growth of the DMAIC methodology in the United States' more service-oriented economy is not as fast as earlier in manufacturing industries. N. This case study displays how the Six Sigma DMAIC methodology can DMAIC Helps Agency Craft Green Electronics Plan In an effort to reduce its environmental footprint. Finding the Sigma Level of Customer Complaints Although customer survey data is often used to determine the degree of customer satisfaction.and should be .isixsigma.

industrial and agricultural users. This is especially true when the critical-to-quality Medical Transcription Six Sigma Case Study This case study is an example of a Six Sigma breakthrough improvement in a Medical Transcription company in India. commercial. Outpatient Imaging Reports TAT Cut from 64 to 9 Hours An outpatient imaging center wanted to know how it could have a competitive edge. It unfolds in the same chronological Minimize the Risk of the Unknown in Six Sigma Projects More often than not. however. several Moms Know . Their customers told them: Decrease report turnaround times. Improving bed management is aligned with hospital's goal Reducing Avoidable Cancellations on the Day of Surgery With an objective of accommodating continued growth in surgical service without adding new rooms and resources. This article documents a Six Sigma project to reduce Measure the Immeasurable: The World of Smell and Taste In many industries. It includes the Reducing Admitting Delays by Improving Bed Management A Six Sigma project team addresses causes of admitting delays. improved and controlled.Increasing Cath Lab Capacity Through Six Sigma Healthcare organizations currently implementing Six Sigma are finding no shortage of opportunities for applying this approach. serving domestic. All About Clear Operational Definitions An operational definition can be defined as a clear and understandable description of what is to be observed and measured. No single technique that exists to ensure decision-making integrity. was not meeting the country s performance standard regulations for metering and billing. such that different people collecting. analyzed. improvement projects quickly face an obstacle: The lack of easy to get and reliable data. it is the unknown that causes project failures. . One focal area increasingly targeted for performance improvement in Leveraging Six Sigma To Improve Hospital Bed Availability Our Lady of Lourdes Regional Medical Center has embraced Six Sigma as their process improvement methodology. a Six Sigma team at Deaconess Hospital takes aim . Business case for the project is clear. measured. Read-Rite Low FPY Manufacturing Case Study This real-world Six Sigma manufacturing case study highlights how a low first pass yield (FPY) was defined. . there are. The center decided Process Redesign to Reduce Cycle Time: A Case Study A power distribution company in India.

3.2011 0:16 Box Cox transformation JCastillo 2...2011 6:54 Read more. where cycle time delays exist and where smooth handoffs are not taking place.2011 7:08 y Re:Full Factorial Design with 2 Factors and 5 .2011 10:51 Re:Confidence intervals in order statistics Exiguus 2. a Six Sigma team undertakes a door-to-inflation project to improve the throughput process for AMI patients. maximize equipment utilization and increase efficiency... from Renew the Commitment to Data-Based Decision Making Six Sigma projects were originally about validating process improvements and savings with sound statistical methods. Indiana. increasing throughput. USA. Continuous improvement program success depends on a renewed emphasis on Rush to Enact Solutions Sabotages a DMAIC Project A small and relatively young technology company attempting to implement the Sarbanes-Oxley Act finds that rushing to solutions before finishing its own Six Sigma DMAIC Tools & Templates y Building Valuable Process Maps Takes Skill and Time Latest Discussion A great process map should show where improvements can be made..2. implementing control mechanisms for continuous improvement and providing feedback to ancillary departments Reducing Delays in the Cardiac Cath Lab with Six Sigma: An iSixSigma Case Study Hospitals are pursuing strategies such as Six Sigma to improve throughput.2. y Six Sigma Quality Tools and Templates . Creating a process map should be the first act a company performs when seeking to make process improvements. Robert Butler 2. More.2. New York-Presbyterian Hospital recently embarked on an initiative Reducing Door-to-Inflation Time for the AMI Patient At Deaconess Health System in Evansville. y y y Re:Box Cox transformation Stan 2..Reducing Delayed Starts in Specials Lab with Six Sigma A hospital's Specials Department project was successful in improving start times.

. organizational infrastructure and culture evolution. the saying holds true: it takes money to save money using the Six Sigma quality methodology. In the world of Six Sigma quality.y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y 5S Affinity Diagram/KJ Analysis Analysis of Variance (ANOVA) Analytic Hierarchy Process (AHP) Brainstorming Calculators Capability Indices/Process Capability Cause & Effect Control Charts Design of Experiments (DOE) FMEA Graphical Analysis Charts Hypothesis Testing Kano Analysis Measurement Systems Analysis (MSA)/Gage R&R Normality Pareto Poka Yoke Process Mapping Project Charter QFD/House of Quality RACI Diagram Regression Risk Management Sampling/Data Simulation SIPOC/COPIS Software Statistical Analysis Templates Value Stream Mapping Variation Wizards Six Sigma Costs And Savings In the world of Six Sigma quality. Many people say that it takes money to make money. You can't expect to significantly reduce costs and increase sales using Six Sigma without investing in training. the saying also holds true: it takes money to save money using the Six Sigma quality methodology. organizational infrastructure and culture evolution. You can't expect to significantly reduce costs and increase sales using Six Sigma without investing in training.

was estimated by "experts. it's going to require a resource commitment. ." The above quotations may in fact be true." "Motorola reduced manufacturing costs by $1. I like to think of that scenario as a "get rich quick" application of Six Sigma. As the Motorola website says.Sure you can reduce costs and increase sales in a localized area of a business using the Six Sigma quality methodology -. but pulling the numbers out of the context of the organization's revenues does nothing to help a company figure out if Six Sigma is right for them.I didn't believe anything that was written on third party websites.we'll leave those companies for another article. a shift that causes every employee to think about how their actions impact the customer and to communicate within the business using a consistent language. Allied Signal deployed Six Sigma in 1994. I reviewed literature and only captured facts found in annual reports. Allied Signal. I am going to provide the following information based on the assumption that these Six Sigma companies operate with integrity until proven otherwise.they are the most mature in their deployments and culture changes.and rhetoric doesn't pay the bills or keep the stockholders happy (anymore). GE in 1995. I choose these four companies because they are the companies that invented and refined Six Sigma -. I was tired of reading web pages or hearing people say: "Companies of all types and sizes are in the midst of a quality revolution. For example. how much can a $10 million or $100 million company expect to save? I investigated what the companies themselves had to say about their Six Sigma costs and savings -. Honeywell (AlliedSignal) recorded more than $800 million in savings.5 billion across the organization from Six Sigma. If you want to produce a culture shift within your organization. GE and Honeywell." "GE produces annual benefits of over $2. But is it going to last when a manager is promoted to a different area or leaves the company? Probably not. website pages and presentations found on company websites. It takes money to save money." "Six Sigma reportedly saved Motorola $15 billion over the last 11 years. they invented it in 1986. How much financial commitment does Six Sigma require and what magnitude of financial benefit can you expect to receive? We all have people that we must answer to -. While recent corporate events like the Enron and WorldCom scandals might lead us to believe that not everything we read in a company's annual report is valid. Many companies have deployed Six Sigma between the years of GE and Honeywell -. Honeywell was included because Allied Signal merged with Honeywell in 1999 (they launched their own initiative in 1998).and you can probably do it inexpensively by hiring an ex-Motorola or GE Black Belt." or was written in books on the topic. GE saved $12 billion over five years and added $1 to its earnings per share. I investigated Motorola.4 billion from 1987-1994.

1 ND 0. and the financial benefits (savings).3 356.5 . There are many blanks. Table 2: Six Sigma Cost And Savings By Company % Revenue Invested % Revenue Savings Year Revenue ($B) Invested ($B) Savings ($B) Motorola 1986-2001 Allied Signal 1998 GE 15.9(e) ND 16 1 4. the Six Sigma costs (investment) per year. the yearly revenues. where available.5 2 3. I've presented as much information as the companies have publicly disclosed. especially where the investment is concerned.Table 1: Companies And The Year They Implemented Six Sigma Company Name Motorola (NYSE:MOT) Year Began Six Sigma 1986 Allied Signal (Merged With Honeywell in 1999) 1994 GE (NYSE:GE) Honeywell (NYSE:HON) Ford (NYSE:F) 1995 1998 2000 Table 2 identifies by company.

8 1.6 1.2 0. As GE's 1996 annual report states. Six Sigma savings can clearly be significant to a company.2 23.2 1.5 0.7 1.8 4 2.6 0.5 0. "It has been estimated that less than Six Sigma quality.3 2 4.4 0.6 2.4 0. companies. Six Sigma is not a "get rich quick" methodology.3 Key: $B = $ Billions.8 100. can cost a company as .5 0. United States (e) = Estimated.1 0.the take-away point being that you will get rich if you plan properly and execute consistently.5 111. The savings as a percentage of revenue vary from 1.6 23. I like to think of it like my retirement savings plan -.e.3 ND ND ND ND - 0.4 0.2 90.1996 1997 1998 1999 1996-1999 Honeywell 1998 1999 2000 1998-2000 Ford 2000-2002 79.0 72.1 1.4 3 0.5 2.5%.3 0.2 1..2 1 1.4 0.Six Sigma is a get rich slow methodology -.6 0.2% to 4.2 2. Yearly Revenue 1986-1992 Could Not Be Found ND = Not Disclosed Note: Numbers Are Rounded To The Nearest Tenth Although the complete picture of investment and savings by year is not present.S.4 43. the three-to-four Sigma levels that are average for most U. And what we can see from the GE deployment is that a company shouldn't expect more than a breakeven the first year of implementation.6 382.9 ND - 16 2.7 25. i.

com/investor/otherpdfs/ALD98. The first inquiry can be described by the global question: ³Why 6s and not some other level of capability?´ The second inquiry is more molecular. p. 2. Honeywell Annual Reports. reference: ³Harry. Palladyne Publishing. that can translate into between $360. June 2003. 4. (Note: this particular publication will be available by October 2003). Honeywell Inc. 6. For GE.zhtml?ticker=HON&script=700>. 22 July 2002 <http://www. References: 1. 22 July 2002 <http://investor.qualitydigest. such a "safety margin" is equivalent to a 6 sigma level of capability.honeywell. AlliedSignal Inc. that would mean $8-12 billion.honeywell. 30.350.2-4. he suggested Motorola should require 50 percent design margins for all of its key product performance specifications. ³Resolving the Mysteries of Six Sigma: Statistical Constructs and Engineering Rationale. 1998 Annual Report. It can be summarized by the question: ³Where does the 1.com/june03/articles/02_article. 1. Is investing in Six Sigma quality.5 versus some other magnitude?´ For details on this subject.6 billion. two recurring questions have dominated the field of six sigma.shtml>. Arizona. 22 July 2002 <http://www. your employees and your organization's culture worth the money? Only you and your executive leadership team can decide the answer to that question.5% of revenue is significant and should catch the eye of any CEO or CFO.pdf>.honeywell. 22 July 2002 <http://mu.7 billion of savings. 3. M. Phoenix. GE Investor Relations Annual Reports. 25 February 2004 16:15 In my recollection. It takes money to make money. Although $2 billion worth of savings in 1999 is impressive.000 in bottom-line-impacting savings per year. we will consider the following thumbnail sketch. 5.motorola. I linked up with another engineer by the name of Bill Smith (originator of the six sigma concept in 1984). this writer was working as an engineer for the Government Electronics Group of Motorola.html>.ge. By chance connection. companies? In either case. "Six Sigma at Ford Revisited". it appears that even GE hasn't been able to yet capture the losses due to poor quality -.5s shift factor come from ± and why 1.2-16. Better Understand Six Sigma Plus With Honeywell's Special PowerPoint Presentation.com/sigmasplash.com/ireye/ir_site. <http://www.or maybe they're above the three-to-four Sigma levels that are the average for most U.´ First Edition 2003. 22 July 2002 <http://www.com/sixsigma/page4_1. Quality Digest." With GE's 2001 revenue of $111.htm>.com/company/investor/annreports. At that time. General Electric Company. Honeywell Inc. Honeywell Inc. At the onset of six sigma in 1985. But until then. . Where did the name "Six Sigma" come from? Wednesday. this would translate into $11. For a $30 million a year company.much as 10-15% of its revenues. Statistically speaking. J. Motorola University.S.000 and $1. Motorola Six Sigma Services.htm>.

process capability. he believed a 25 percent ³cushion´ was not sufficient for absorbing a sudden shift in process centering. Of course. the quality of that interface can be substantively and consequentially disturbed by process centering error.When considering the performance tolerance of a critical design feature. The roots of Six Sigma as a measurement standard can be traced back to Carl Frederick Gauss (1777-1855) who introduced the concept of the normal curve.5s (relative to the target value).) later came on the scene but credit for coining the term "Six Sigma" goes to a Motorola engineer named Bill Smith. By further developing these insights through applied research. Third. Of course. both of these factors profoundly impact long-term capability. we concluded that the product defect rate was highly correlated to the long-term process capability. etc. "Six Sigma" is a federally registered trademark of Motorola). Zero Defects.5s. However. Extending beyond this. In other words. a sudden increase in defects would have an adverse effect on reliability. if centered. Six Sigma as a measurement standard in product variation can be traced back to the 1920's when Walter Shewhart showed that three sigma from the mean is the point where a process requires correction. . a four sigma level of capability would normally be considered sufficient. The concepts behind Six Sigma can be traced through the centuries as the method took shape into what it is today. First. such conclusions were predicated on the statistical analysis of empirical data gathered on a wide array of electronic devices. The History of Six Sigma Six Sigma has evolved over time. customer satisfaction. and economic success. we come to understand three things.0s ± 1. In turn. we must seek to qualify our critical processes at a 6s level of short-term capability if we are to enjoy a long-term capbility of 4s. As should be apparent. not the short-term capability. Second. those of us working this issue fully recognized that the initial estimate of capability will often erode over time in a ³very natural way´ ± thereby increasing the expected rate of product defects (when considering a protracted period of production). this would have a consequential impact on defects. we were able to greatly extend our understanding of the many statistical connections between such things as design margin. Regardless of the shift magnitude. (Incidentally. if the process center was somehow knocked off its central location (on the order of 1. the initial capability of 4s would be degraded to 4. field reliability. we recognized that the instantaneous reproducibility of a critical-to-quality characteristic is fully dependent on the ³goodness of fit´ between the operating bandwidth of the process and the corresponding bandwidth of the performance specification. Bill believed the typical shift was on the order of 1.5s). Thus. Of course.5s = 2. Many measurement standards (Cpk. defects. such a domino effect would continue straight up the value chain.

Six Sigma has evolved over time.didn't provide enough granularity. . Six Sigma helped Motorola realize powerful bottom-line results in their organization .In the early and mid-1980s with Chairman Bob Galvin at the helm. and it would perhaps be easier to list all the things that Six Sigma quality is not. It's more than just a quality system like TQM or ISO. they documented more than $16 Billion in savings as a result of our Six Sigma efforts. a philosophy. This is a direct result of many of America's leaders openly praising the benefits of Six Sigma. Since then. Six Sigma can be seen as: a vision. and Jack Welch of General Electric Company. they wanted to measure the defects per million opportunities." We couldn't agree more. hundreds of companies around the world have adopted Six Sigma as a way of doing business. a symbol. Motorola engineers decided that the traditional quality levels -. It's a way of doing business. As Geoff Tennant describes in his book Six Sigma: SPC and TQM in Manufacturing and Services: "Six Sigma is many things. a goal. Rumor has it that Larry and Jack were playing golf one day and Jack bet Larry that he could implement Six Sigma faster and with greater results at GE than Larry did at Allied Signal. a metric.in fact.measuring defects in thousands of opportunities -. The results speak for themselves. Leaders such as Larry Bossidy of Allied Signal (now Honeywell). Motorola developed this new standard and created the methodology and needed cultural change associated with it. a methodology. Instead.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->