Six Sigma for Managers | Six Sigma | Business Process

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 Sigma

million opportunities A philosophy and a goal : as perfect as practically possible A methodology and a symbol of quality

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exploreHR.4 www.org 6 .537 66.210 233 3.Sigma Level Sigma Level (Process Capability) 2 3 4 5 6 Defects per Million Opportunities 308.807 6.

Sigma Level Six Sigma = 99.exploreHR.org 7 .9997% www.

379% ? ‡ Every hour the postal service would lose 20.exploreHR.000 surgical operations that go wrong in some way ‡ Every month we would be without electricity for almost seven hours 8 www.000 pieces of mail ‡ Every day our drinking water would be unsafe for almost 15 minutes ‡ Every week there would be 5.org .Sigma Level Why not Four Sigma or 99.

org 9 .Why Six Sigma? Money Customer Satisfaction Growth Quality Competitive Advantage Employee Pride www.exploreHR.

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. www.exploreHR.5 billion through Six Sigma.org 10 .

Why Six Sigma? Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications www.org 11 .exploreHR.

org 12 .exploreHR.Cost of Poor Quality What is cost of scrap? What is cost of rework? What is cost of excessive cycle times and delays? www.

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? www.exploreHR.org 13 .

www.Critical-toCritical-to-Quality (CTQ) Elements of a process that significantly affect the output of that process.org 14 .exploreHR. Identifying these elements is figuring out how to make improvements that can dramatically reduce costs and enhance quality.

org 15 .exploreHR.Six Sigma Phases www.

exploreHR.org Control 16 .Six Sigma Phases Define Measure Analyze Improve DMAIC www.

exploreHR.org Analyze and determine the root cause(s) of the defects 17 .Six Sigma Phases Define Define the project goals and customer (internal and external) deliverables Measure Measure the process to determine current performance Analyze www.

Six Sigma Phases Improve the process by eliminating defects Improve Control Control future process performance www.org 18 .exploreHR.

Goals and Benefits ‡ Identify Champion.org 19 .exploreHR.Six Sigma Phases ‡ Define Customers and Requirements (CTQs) Define ‡ Develop Problem Statement. Process Owner and Team ‡ Define Resources ‡ Evaluate Key Organizational Support ‡ Develop Project Plan and Milestones ‡ Develop High Level Process Map www.

Opportunity.org 20 . 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 www.Six Sigma Phases ‡ Define Defect.exploreHR.

exploreHR.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 www.org 21 .

exploreHR.org 22 .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 www.

Cost Savings/Avoidance.Six Sigma Phases Control ‡ Define and Validate Monitoring and Control System ‡ Develop Standards and Procedures ‡ Implement Statistical Process Control ‡ Determine Process Capability ‡ Develop Transfer Plan.org 23 . Finalize Documentation ‡ Communicate to Business. Celebrate www.exploreHR. Profit Growth ‡ Close Project. Handoff to Process Owner ‡ Verify Benefits.

Define Measure Analyze Improve Control Deliverables : ‡ Fully trained team is formed. business process mapped.exploreHR.org 24 . customers identified and high impact characteristics (CTQs) defined. and committed to work on improvement project. ‡ Team charter developed. www. supported.

Define Measure Analyze Improve Control Checkpoints for Readiness Team Readiness : ‡ ‡ ‡ Team is sponsored by a champion or business leader. including business case. 25 www. roles and responsibilities. Team formed and team leaders assigned.exploreHR.org . project scope. Improvement team members fully trained on Six Sigma and DMAIC. problem and goal statements. Team Charter : ‡ Completed project management charter. milestones. communication plan.

verified. and Customers. 26 www.org . Process.exploreHR. Outputs.Define Measure Analyze Improve Control Checkpoints for Readiness Customers ‡ ‡ Customer(s) identified and segmented according to their different needs and requirements. Completed SIPOC representation. and validated high-level 'as is' (not 'should be' or 'could be') business process map. Business Process Mapping ‡ ‡ Completed. Data collected and displayed to better understand customer(s) critical needs and requirements. Inputs. describing the Suppliers.

data collection planned and executed.exploreHR. sigma level calculated.org 27 . process variation displayed and communicated.Define Measure Analyze Improve Control Deliverables : ‡ Key measures identified. www. performance baselined.

Define Measure Analyze Improve Control Checkpoints for Readiness Key Measures Identified ‡ Key measures identified and agreed upon. ‡ High impact defects defined and identified in the business process.exploreHR. Data Collection Planned and Executed ‡ Solid data collection plan established that includes measurement systems analysis. ‡ Data collected on key measures that were identified.org 28 . www.

yield.Define Measure Analyze Improve Control Checkpoints for Readiness Process Variation Displayed/Communicated ‡ Process variation components displayed/communicated using suitable charts.org 29 . www.exploreHR. graphs. plots. sigma level). ‡ Long term and short term variability accounted for. Performance Baseline/Sigma Calculation ‡ Measure baseline process performance (capability.

Define Measure Analyze Improve Control Deliverables : ‡ Data and process analysis.exploreHR. www. quantifying the gap/opportunity. root cause analysis.org 30 .

‡ Prioritize list of 'vital few' causes (key sources of variation).Define Measure Analyze Improve Control Checkpoints for Readiness Data and Process Analysis ‡ Identify gaps between current performance and the goal performance. ‡ Verify and quantify the root causes of variation. ‡ Segment and stratify possible causes (sources of variation).exploreHR.org 31 . www. Root Cause Analysis ‡ Generate list of possible causes (sources of variation).

‡ Display and communicate the gap/opportunity in financial terms. www.org 32 .Define Measure Analyze Improve Control Checkpoints for Readiness Quantifying the Gap/Opportunity ‡ Determine the performance gap.exploreHR.

design implementation plan. select the best solutions.exploreHR.Define Measure Analyze Improve Control Deliverables : ‡ Generate (and test) possible solutions.org 33 . www.

exploreHR.org 34 . www.Define Measure Analyze Improve Control Checkpoints for Readiness Generating (and Testing) Possible Solutions ‡ Possible solutions generated and tested.

org 35 . ‡ New and improved process ('should be') maps developed. www. ‡ Project impact on utilizing the best solution(s). ‡ Cost/benefit analysis of optimal solution(s).Define Measure Analyze Improve Control Checkpoints for Readiness Selecting The Best Solution(s) ‡ Optimal solution selected based on testing and analysis. ‡ Small-scale pilot for proposed improvement(s).exploreHR. ‡ Improved process ('should be') maps modified based on pilot data and analysis. ‡ Pilot data collected and analyzed.

and control plan. resources. cost/budget. including schedule/work breakdown structure. risk management plan. ‡ Contingency plan established.Define Measure Analyze Improve Control Checkpoints for Readiness Designing Implementation Plan ‡ Solution implementation plan established.exploreHR.org 36 . www.

org 37 . transfer of ownership (project closure).exploreHR. response plan established and deployed. documented procedures.Define Measure Analyze Improve Control Deliverables : ‡ Documented and implemented monitoring plan. standardized process. www.

Define Measure Analyze Improve Control Checkpoints for Readiness Monitoring Plan ‡ Control plan in place for sustaining improvements (short and longterm). standards. Process Standardization ‡ New process steps.exploreHR. Documented Procedures ‡ Operating procedures are consistent. ‡ Knowledge gained on process is shared and institutionalized.org 38 . and documentation are ingrained into normal operations. www.

understood.Define Measure Analyze Improve Control Checkpoints for Readiness Response Plan ‡ Response plans established. Transfer of Ownership (Project Closure) ‡ Transfer ownership and knowledge to process owner and process team tasked with the responsibilities. www. and deployed.org 39 .exploreHR.

Tools and Roles for Six Sigma www.exploreHR.org 40 .

rework. movements.Tools for Six Sigma ‡ Creating flowcharts of the step in a process ± operations. ‡ A process map is illustrated description of how a process work.org 41 . loops. delays. Process Mapping www. decision points. and controls or inspections. handoffs.exploreHR.

Tools for Six Sigma ‡ DOE is a structured. organized method for determining the relationship between factors (Xs) affecting a process and the output of that process (Y).org 42 .exploreHR. Design of Experiments or DOE www.

areas for improvement. ‡ 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. with one set of increments marked along the X (horizontal) axis and another set of increments marked along the Y (vertical) axis.org XY Matrix 43 .exploreHR.Tools for Six Sigma ‡ A group of rows and columns. ‡ The XY matrix allows the team to identify gaps. www.

Tools for Six Sigma ‡ The goal of this tool is to ensure that your measurement system is statically confident ± that it¶s both accurate and precise each and every time it is used. 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. ‡ Undertaken during Measure phase. Measurement System Analysis www.exploreHR.org 44 .

exploreHR.Tools for Six Sigma ‡ Process capability tool is the measure of a process being able to meet specification requirements and fulfill customer CTQ needs on a long term basis.org 45 . Process Capability Tool www.

Hypothesis Testing www.Tools for Six Sigma ‡ Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct.exploreHR. ‡ It¶s a compass that points you directly to the vital few factors that are most affecting your process.org 46 .

exploreHR.org 47 . creating a defect or non-conformance.Tools for Six Sigma ‡ The manner in which a part or process can fail to meet a specification. Failure Mode Effect Analysis www. and the impact on the customer if that failure mode is not prevented or corrected.

exploreHR. and the project team have made.Tools for Six Sigma ‡ A detailed assessment and guide for maintaining all the positive changes you.org 48 . ‡ 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. Control Plan www. your black belt.

org 49 .Key Roles for Six Sigma Executive Leadership Includes CEO and other key top management team members. Champions also act as mentor to Black Belts. www. They are responsible for setting up a vision for Six Sigma implementation.exploreHR. Champions Are responsible for the Six Sigma implementation across the organization in an integrated manner.

www. act as in-house expert coach for the organization on Six Sigma. They primarily focus on Six Sigma project execution.Key Roles for Six Sigma Master Black Belts Identified by champions.org 50 . Black Belts Operate under Master Black Belts to apply Six Sigma methodology to specific projects.exploreHR. They devote 100% of their time to Six Sigma.

www. They operate under the guidance of Black Belts and support them in achieving the overall results.exploreHR.org 51 .Key Roles for Six Sigma Green Belts Are the employees who take up Six Sigma implementation along with their other job responsibilities.

org 52 .Six Sigma Do¶s ‡ Do communicate the commitment companycompanywide ‡ Do demonstrate the commitment of company leaders ‡ Do empower your key human resources ‡ Do provide on-site mentoring for black belts onwww.exploreHR.

org 53 .exploreHR.Six Sigma Do¶s ‡ Do be patient at the inception of you six Sigma initiative ‡ Do claim and advertise early ³wins´ ‡ Do benchmark ‡ Do establish project baseline and goals www.

org 54 . 2.Recommended Further Readings: 1. Six Sigma for Managers. McGraw Hill George Eckes.exploreHR. Greg Brue. John Wiley and Sons www. Six Sigma for Everyone.

exploreHR.org 55 .End of Material www.

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