TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

Background and Meaning of Six Sigma

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 1
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Learning Objectives
• Understand the origins of the Motorola Six Sigma methodology.
• List the six main themes of Six Sigma
• List the phases of the DMAIC process improvement cycle
• Understand the Six Sigma Roadmap and the problem solving strategy
Y(Critical-to-Quality Parameters) = f(key X-influencing parameters: x1,
x2, x3)

Holly Ott 2
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

The Six Sigma System

“The Six Sigma system is a comprehensive and flexible system for

achieving, sustaining and maximizing business success.”
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 3
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Six Sigma – Origins and Development

• The term “Six Sigma” was coined by Bill Smith at Motorola.
• Dr. Mikel Harry: Motorola’s Six sigma Research Institute.
• 1987 – Motorola officially launched its Six Sigma program.
• Achieve a near-perfect, 6σ, quality – the defect rate in the production of
each component will not be more than 3.4 parts per million.
• 1988 – Motorola won the Malcolm Baldridge Award for Business
Excellence
• Adoption by General Electric and Allied Signal (Honeywell)

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Motorola's Six ©2012 from "A First Course in Quality

Engineering: Integrating Statistical and
Management Methods of Quality" by K.S.
Sigma Capability Krishnamoorthi. Reproduced by
permission of Taylor and Francis Group,
LLC, a division of Informa plc.

Holly Ott 5
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Six Sigma Terminology

• The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.
• For a process, the sigma capability (z-value) is a metric that indicates how
well that process is performing.
• The higher the sigma capability, the better the process. Sigma capability
measures the capability of the process to produce defect-free outputs.
• A defect occurs during any process step when the outcome of the process
step is not the expected outcome.
• The expected outcome means that the conditions of the outcome are
specified in advance.

Holly Ott 6
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer

All images sed with permission from Kopschitz Kerzen

and the European Candle Association.

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 7
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer
• Data and Fact-Driven Management

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 8
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 9
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 10
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management
• Boundaryless Collaboration

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 11
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Themes of Six Sigma

• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management
• Boundaryless Collaboration
• Drive for Perfection (with tolerance for failure)
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 12