MODULE 1.
INTRODUCTION TO SIX SIGMA
1.1 Introduction to Six Sigma.
Six Sigma is a business strategy and methodology that can help your organization
create real improvement in performance.
The Principle of Lean Six Sigma: The activities that cause the customer’s critical-to-
quality issues and create the longest time delays in any process offer the greatest
opportunity for improvement in cost, quality, capital, and lead time.
Lean Six Sigma is a methodology that maximizes shareholder value by achieving
the fastest rate of improvement in customer satisfaction, cost, quality, process
speed, and invested capital.
One of the pillars of Lean Six Sigma is understanding the connection between
shareholder value creation and specific improvements in the business.
Six Sigma isn’t just an “improvement methodology.” It is...
A system of management to achieve lasting business leadership and top
performance applied to benefit the business and its customers, associates,
and shareholders.
A measure to define the capability of any process.
A goal for improvement that reaches near-perfection.
The sigma level numbers often associated with Six Sigma represents the capability
of a core business process, as measured in defects per million opportunities.
Process Thinking.
Process Variation.
Six Sigma is focused on reducing the negative effects of process variation in two
major ways:
(1) It shifts the process average to the desired target level and
(2) It reduces the variation around the process average.
Roles of Six Sigma Leaders
Key messages of six sigma.
Everything starts with the customer.
The infrastructure for cultural change is the most powerful contribution of Six
Sigma.
Decisions about which projects to pursue must be based at least in part on
the potential impact on net present value.
Sustained improvement is possible only with management engagement.
CEO goals are translated to frontline projects and coordinated through an
organization of people and technical resources.
A standard problem-solving process and associated tool set provides the
means for basing decisions on data.
1.2 Basic, process.
The Keys to Successful Six Sigma Deployment
The keys to success can be grouped into the three broad, overlapping categories:
Committed leadership
Top talent
Supporting infrastructure
Top Talent
There are three major reasons why top talent is so important to the Six Sigma effort:
The better the talent the better the results
Top talent attracts more top talent
Top talent becomes the next organizational leaders
The laws of lean six sigma
Lean means speed; it applies to all processes.
Slow processes are expensive processes.
The Lean metric is process cycle efficiency.
Batch sizes must be calculated using flow variables.
95% of the lead times in most processes is wait time.
To improve speed, you need to identify and eliminate the biggest time traps,
which is possible using the
Three Laws of Lean Six Sigma:
Zeroeth Law: The Law of the Market. Customer critical-to-quality issues must be
addressed first.
First Law: The Law of Flexibility. Process velocity is directly proportional to flexibility.
For example, in a manufacturing process, flexibility is proportional to workstation
turnover time. Maximum flexibility is achieved by launching minimum batch sizes
calculated per:
Second Law: The Law of Focus. 80% of the delay in any process is caused by 20%
of the activities.
Third Law: The Law of Velocity. The average velocity of flow through any process
is inversely proportional to both the number of “things” in process and the average
variation in supply and demand.
1.3 Six Sigma History.