Professional Documents
Culture Documents
KEY WORDS: Six Sigma; operations research; management science; Black Belt training; queueing
1. INTRODUCTION
S
ix Sigma is a systematic, highly disciplined, customer-centric and profit-driven organization-wide
strategic business improvement initiative that is based on a rigorous process-focused and measurement-
driven methodology. Six Sigma makes use of sound statistical methods and quality management
principles to improve processes and products via the Define–Measure–Analyze–Improve–Control (DMAIC)
quality improvement framework to meet customer needs on a project-by-project basis. With many high-profile
adoptions by companies such as General Electric (GE) in the 1990s, Six Sigma has spread like wild fire towards
the end of the 20th century1.
As an approach to organizational excellence, Six Sigma as it has been practiced can certainly be enhanced1,2 .
Despite its current success, Six Sigma has its inherent limitations and cannot be a universal solution for any
organization in any situation1 . Consequently, there have been many developments in enhancing the power
of Six Sigma for the improvement of business processes (see, for example, Recker and Bolstorff3 , Smith4 ,
Bossert5 , Murugappan and Keeni6, Revere and Black7 , Catherwood8, Dalgeish9 and Gurunatha and Siegel10 ).
∗ Correspondence to: Loon Ching Tang, Department of Industrial and Systems Engineering, National University of Singapore, 1 Engineering
Drive 2, Singapore 117576, Republic of Singapore.
† E-mail: isetlc@nus.edu.sg
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c 2007 John Wiley & Sons, Ltd.
4 L. C. TANG ET AL.
Most of these efforts described enhanced frameworks and processes, but did not emphasize a suitable training
approach that can be related to the deliverables during implementation. In this paper, apart from proposing
the systematic inclusion of Operations Research/Management Science (OR/MS) techniques into the existing
Six Sigma DMAIC framework, emphasis has been placed on the design of a well-integrated Six Sigma Black
Belt (BB) training curriculum. The proper training of core Six Sigma professionals has been identified as one
of the fundamental success factor for the effective deployment of Six Sigma11,12 .
OR/MS techniques have been extensively applied to a wide range of areas including transportation,
manufacturing, telecommunication, the military, financial planning, public services and healthcare. They are
effective tools for improving the efficiency and productivity of organizations. OR/MS techniques, as implied by
the name, are concerned with the conduct and improvement of ‘operations’ as well as the practical management
of organizations. Another important characteristic of OR/MS is that, rather than simply improving the status
quo, its primary goal is to identify a best possible course of action13. This is also a fundamental goal of all
Six Sigma projects, commonly exemplified through the ‘Improve’ phase. Consequently, it is quite natural to
integrate OR/MS techniques into the framework of Six Sigma.
This paper explores the possibilities of further enhancing the usefulness and effectiveness of Six Sigma via
the integration of OR/MS techniques into Six Sigma deployment. To effectuate this integration and motivated
from the consideration that proper capability development of Six Sigma BBs is one of the key success factors in
the implementation of Six Sigma, a new roadmap for training BBs which contains an expanded curriculum
that includes new OR/MS techniques is proposed. A matrix that relates the training deliverables to actual
project deliverables is also presented to explicate the close relationship between training objectives and project
deliverables. A case study to improve the efficiency of processes in the transactional environment through more
effective manpower allocation is then presented to illustrate the usefulness of OR/MS techniques within the
proposed roadmap.
Six Sigma is not only a performance target that applies to a single critical-to-quality (CTQ) characteristic14,
but has evolved into a strategic business-improvement approach that seeks to find and eliminate causes of
mistakes or defects in business processes by focusing on outputs that are of critical importance to customers15.
The ultimate goal of Six Sigma is business improvement, particularly in terms of the bottom-line results,
customer satisfaction and market share.
Customer satisfaction is a close reflection of the state of the business and depends on the ability of a business
to achieve three key objectives: (1) delivering a defect-free product or service; (2) delivering a product or
service on schedule; and (3) delivering a product or service at the lowest possible cost14 . Although standard
Six Sigma tools and methods are effective in handling the first problem, they are typically found lacking in
the ability to resolve the latter two issues. Most of the existing Six Sigma tools are statistical methods and
quality management tools, such as Design of Experiments (DOE), Response Surface Methodology (RSM),
Robust Design, Statistical Process Control (SPC), Quality Function Deployment (QFD), Failure Mode and
Effect Analysis (FMEA), Capacity Analysis, Hypothesis Testing, Analysis of Variance (ANOVA), Regression
Analysis, and so on16,17 . Common statistical methods for quality engineering and quality management tools are
usually insufficient for tackling many business-improvement related problems such as production and service
planning and scheduling, inventory control and management, supply chain management, operations scheduling
and workforce scheduling. OR/MS techniques are well positioned to effectively solve these problems, among
others. Many techniques in the possession of OR/MS practitioners could and should be integrated into Six Sigma
applications to complement the existing standard Six Sigma tools. Existing quality management tools such
as QFD can also be greatly enhanced with OR/MS tools18 . In general, common concepts and procedures of
operations management and project management would play an extremely useful role in Six Sigma projects.
Considering the fact that the Six Sigma programs adhere strictly to a systems perspective towards
quality improvements, it is quite natural to observe the trend of integrating Six Sigma with other business
improvement tools and methods such as Lean Manufacturing3–5 , the Capability Maturity Model (CMM)6 ,
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Total Quality Management7, ISO9000 and ISO90018,9 , reliability engineering10 and human resource
functions11. However, there has been no proposed systematic incorporation of relevant and powerful OR/MS
techniques to drive product and process improvements through these existing quality tools. OR/MS techniques
also play important roles in operational management systems such as Material Requirements Planning (MRP I),
Manufacturing Resource Planning (MRP II) and Enterprise Resources Planning (ERP). All of these systems,
in turn, are very useful to improve the overall business performance and should be integrated with Six Sigma
deployment, probably in a parallel manner (see, for example, Adams et al.19).
Many of the OR/MS tools suggested in this article are not new. It is the ‘integration’ of these techniques
in a purposeful, systematic and sequential manner through the new fortified Six Sigma roadmap that will
achieve synergistic results far exceeding what is possible with isolated application of single tools or methods.
The ‘Define’ phase of Six Sigma involves scores of problems, such as project selection and planning, production
and service planning, training and education planning, resource allocation and investment decision making,
which conventional Six Sigma tools cannot handle but OR/MS techniques can. One of the most useful purposes
of applying OR/MS techniques is for ‘improvement’. OR/MS techniques such as mathematical programming,
queueing and simulation techniques can improve the analysis and operations of manufacturing and transactional
systems in Six Sigma projects. Consequently, various OR/MS techniques are well fitted into the ‘Improve’
phase in Six Sigma deployment. In the ‘Control’ phase of Six Sigma deployment, OR/MS techniques can
also be applied to optimize the design of control charts and control schemes, and to improve maintenance
management20–23 , etc.
In the long run, to really accomplish the simultaneous objectives of Six Sigma and powerful business
improvement tools such as Lean Manufacturing, practitioners will not only have to gain a solid understanding
of additional statistical tools, but knowledge of industrial engineering and operations research techniques, such
as systems simulation and factory modeling, mathematical optimization methods and queueing networks2.
Although some of the techniques may have been included in the training of Master Black Belts (MBBs), the
number of MBBs is far too small in a typical enterprise to have an impact. Future successes of Six Sigma could
only be brought about by dedicated teams of BBs mastering a set of synergistic tools arranged in a compact and
logical sequence for problem solving.
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OR/MS tools
Define Mathematical programming techniques for
resource allocation and project selection
Decision analysis
Project management tools
Analyze Forecasting
Basic queueing systems
Simulation and modeling
Improve Optimization and control of queues
Mathematical programming techniques
Heuristics
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FORTIFICATION OF SIX SIGMA 7
programming techniques are usually needed for transactional environments. Although, OR/MS techniques
appear to be much more applicable in transactional environment, it should be noted that Six Sigma BBs working
in manufacturing sectors are also expected to tackle transactional issues. This underscores the importance and
necessity of integrating OR/MS techniques with Six Sigma. The current evolution of Six Sigma is not simply
a transition from the original manufacturing sectors to service sectors, but a vehicle for making deep cultural
change, inculcating system thinking and problem solving that lead to quantifiable benefits.
3.2. Queueing
Queueing theory is concerned with understanding the queueing phenomenon and how to operate queueing
systems in the most effective way. Providing too much service capacity to operate a system incurs excessive
costs; however, insufficient service capacity can lead to annoyingly long waiting times resulting in dissatisfied
customers and loss of business. Within the context of business improvement, queueing techniques have been
applied to solve problems pertaining to effectively planning and operating of service and production systems.
Some application areas include maintenance management, resource scheduling such as in wafer fabrication and
the healthcare, telecommunication, transportation and airline industries, and so on. Queueing techniques can
play a useful role in Six Sigma deployment particularly in analyzing and improving a system providing services
in the ‘Analyse’ and ‘Improve’ phases. A case study on the application of queueing techniques in these two
phases is presented in Section 4.
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(e.g. queueing, inventory, manufacturing, distribution, etc.). Simulation has been successfully deployed in
Design for Six Sigma to replace costly preliminary prototype testing and tolerancing. Also, simulation provides
an attractive alternative to more formal statistical analysis in, for example, assessing how large a sample is
required to achieve a specified level of precision in a market survey or in a product life test36 . Bayle et al.37
reported the approach of integrating simulation modeling, DOE and engineering and physical expertise to
successfully design and improve a braking subsystem that would have not been accomplished by any individual
tool or method alone. For system operations analysis, simulation is an indispensable companion to queueing
techniques as it is much less restrictive in modeling assumption38. Queueing and simulation techniques also
play important roles in inventory control39 and supply chain management in organizations.
3.4. Forecasting
Every company needs to at least do some forecasting in order to strategize and plan; the future success of
any business depends heavily on the ability of its management to forecast well13 . However, the availability
of ‘good’ data is crucial for the use of forecasting methods; otherwise, it would turn into ‘garbage in,
garbage out’. The accuracy of forecasts and the efficiency of subsequent production and service planning
are related to the stability and consistency of the processes which are, in turn, influenced by successful
applications of standard Six Sigma tools. Six Sigma tools and methods identify and eliminate process defects
and diminish process variation. Six Sigma also requires that data be collected in an accurate and scientific
manner. The combination of defect elimination, variation diminishing and more accurate and scientific data
collection allows forecasting to be conducted more easily and effectively, which will, in turn, help improve
the effectiveness of production and service planning, operations scheduling and management. In contrast, if
the processes are erratic, then forecasting and subsequent production and service planning and operations
scheduling will be much less effective or useful. Important applications of forecasting techniques within the
context of operations management include demand forecasting, yield forecasting and inventory forecasting that
is essentially the conjunction of the first two. In addition, forecasting results are important inputs to other OR/MS
techniques such as mathematical programming, queueing, simulation and modeling, etc.
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DOI: 10.1002/qre
Table III. A roadmap integrated OR/MS tools that BBs can follow
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FORTIFICATION OF SIX SIGMA
for BBs to implement their projects and as a training curriculum for a new breed of Six Sigma BBs. While more
elaborate techniques can also be included, it is felt that the current tool set is the most essential and can be
covered in a typical four-week training program for BBs.
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FORTIFICATION OF SIX SIGMA 11
Source
Checking
Typing
Packing Dispensing
Legend:
: Queues : External Flows
Outliers
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View B
View A
89.0 90.0
79.0 80.0
69.0 70.0
59.0
Waiting Times
60.0
Waiting Times
49.0 50.0
39.0 40.0
29.0
30.0
19.0
20.0
9.0
10.0
8 9 10 11
8 9 10 11
Number of Packers
Number of Dispensing Pharmacists
8 Dispensing Pharmacists 9 Dispensing Pharmacists
View A View B
Figure 3. Sensitivity of total waiting times to variations in number of packers and dispensing pharmacists
processes before and after the addition of the ‘Screening’ process. There was an observable increase in the
productive time of pharmacists and the mean queue length in front of the dispensing process was shortened
from 13 to 3. As observed in the relatively flatter contours in Figure 4, the proposed new configuration is also
more robust against changes in manpower deployment over the packing and dispensing sub-processes.
Robustness of different manpower allocations and process configurations against varying arrival rates can also
be assessed through sensitivity analysis. Figure 5 shows the sensitivity of mean total waiting times subjected
to small perturbations in arrival rates over different number of dispensing pharmacists. It was observed that
the original configuration with only eight dispensing pharmacists would result in large increases in waiting
times when there were only small increases in the number of prescriptions arriving per hour. This provided the
management with insights on the frequently experienced phenomenon of doubling in waiting times on some
‘bad’ days.
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FORTIFICATION OF SIX SIGMA 13
Table V. Comparisons of sojourn times for each process and mean total
waiting times
View B
View A
26.0 26.0
7 Dispensing Pharmacists With Screening 8 Packers With Screening 9 Packers With Screening
24.0 8 Dispensing Pharmacists With Screening 24.0 10 Packers With Screening 11 Packers With Screening
9 Dispensing Pharmacists With Screening
22.0 10 Dispensing Pharmacists With Screening 22.0
11 Dispensing Pharmacists With Screening
20.0 20.0
Waiting Times
Waiting Times
18.0 18.0
16.0 16.0
14.0 14.0
12.0 12.0
10.0 10.0
8 9 10 11 7 8 9 10 11
Number of Packers Number of Dispensing Pharmacists
View A View B
Figure 4. Sensitivity of total waiting times to variations in number of packers and dispensing pharmacists in new dispensing
process with screening
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14 L. C. TANG ET AL.
View B
View A
44.0 44.0
85 prescriptions/hour 86 prescriptions/hour
8 Dispensing Pharmacists 9 Dispensing Pharmacists
39.0 87 prescriptions/hour 88 prescriptions/hour 39.0
89 prescriptions/hour 90 prescriptions/hour 10 Dispensing Pharmacists 11 Dispensing Pharmacists
91 prescriptions/hour
34.0 34.0
Waiting Times
Waiting Times
29.0 29.0
24.0 24.0
19.0 19.0
14.0 14.0
9.0 9.0
8 9 10 11 85 86 87 88 89 90 91
No. of Dispensing Pharmacists Mean Arrival Rates
View A View B
Figure 5. Sensitivity of total waiting times to variations in number dispensing pharmacists and patients arrival rates
to experience service processes that follows any general distributions with mean service rate µi (commonly
known as the M/G/1 queueing system). For service stations with multiple servers, there are si servers in
parallel with service processes of each server assumed to follow any general distributions that are independently
and identically distributed with mean service rate µi (commonly known as the M/G/s queueing system).
M/G/1
The mean queue length of each single server station, L̄i , can be easily computed with the well-known
M/G/1
Pollaczek–Khintchine result . Given L̄i
41 , the mean waiting times at each single server service station,
M/G/1
W̄i , can be computed using Little’s theorem42 . For computing the waiting times of queueing stations with
multiple servers (M/G/s), we apply an approximation by Cosmetatos43 . For this, we first compute the mean
M/M/s
waiting times of an M/M/s queueing system (W̄i ):
M/M/s M/M/s
W̄i = L̄i /λi
M/M/s
where the mean queue length of the M/M/s system, L̄i , is computed from
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FORTIFICATION OF SIX SIGMA 15
where ρi is the utilization of service station i given by λi /si µi and Pi,0 is the probability that station i would be
empty given by
si −1
(si ρi )n (si ρi )si −1
Pi,0 = +
n=0
n! si !(1 − ρi )
M/D/s
Next, we compute the mean waiting times of an M/D/s queueing system (W̄i ) as follows:
M/D/s 1 1 M/M/s
W̄i = · · W̄i
2 Ki
where
√
4 + 5si − 2 −1
Ki = 1 + (1 − ρi )(si − 1)
16ρi si
The approximate mean waiting times for an M/G/s system can finally be computed from
M/G/s M/M/s M/D/s
W̄i ≈ CV 2i W̄i + (1 − CV 2i )W̄i , 0 ≤ CV 2i ≤ 1
where the squared coefficient of variation of service times (CVi ) is given by
Var(Ti )
CV 2i =
T̄i2
where Var(Ti ) is the variance of randomly distributed service times of server i and T̄i is the mean service times
by the server i (or reciprocal of service rate, µi ).
Figures 6(a) and (b) shows the difference in mean waiting times computed with and without exponential
service times assumptions. It was observed that the mean total waiting times was higher when service times
were assumed to follow some exponential distributions compared with when no such assumptions were made.
In many service processes, the exponential assumption of the distribution of service times usually results in
more conservative queueing system designs if the coefficient of variation of service times is less than unity.
Decisions based on mean waiting times and queue lengths predicted from such models would thus usually err
on the safe side.
5. CONCLUSIONS
Regardless of which industrial sector a BB is being employed, they need to adopt a system-level view of the
operations of an enterprise. The current BB training contents are no longer adequate for increasingly demanding
customers of the 21st century (i.e. versus 1980s and early 1990s when Six Sigma was first formulated).
A new breed of BBs will need to integrate OR/MS techniques into their Six Sigma tool set to remain
relevant. A new roadmap is formulated and presented in Table III to meet the emerging needs.
Not all of the OR/MS tools will be used in a project, but they serve as a reminder/checklist. In this way, a BB
can remain focused on the project while being alerted on other tools that may be useful in providing the solution.
It could be argued that a Six Sigma BB armed with OR/MS techniques would operate like a ‘Super Black Belt’,
with breath and depth well beyond what is found in the routine toolkits of BB coming from a regular Six Sigma
training conveyor belt.
In addition to OR/MS techniques, there is also an emerging trend of integrating artificial intelligence and
information systems technologies, such as data mining10, fuzzy logic and neural networks, into Six Sigma
programs; in particular, Design for Six Sigma for software. As the scope of Six Sigma application expands with
time, more cross-functional tools will be integrated with Six Sigma to achieve even wider and deeper business
performance improvement. The current integration of OR/MS tools is only part of the itinerary in the journey
towards Six Sigma excellence.
Copyright
c 2007 John Wiley & Sons, Ltd. Qual. Reliab. Engng. Int. 2007; 23:3–18
DOI: 10.1002/qre
16 L. C. TANG ET AL.
89.0
79.0
69.0
59.0
Waiting Times
49.0
39.0
29.0
19.0
9.0
8 9 10 11
Number of Packers
8 Dispensing Pharmacists (M/M/S) 8 Dispensing Pharmacists (M/G/S)
9 Dispensing Pharmacists (M/M/S) 9 Dispensing Pharmacists (M/G/S)
10 Dispensing Pharmacists (M/M/S) 10 Dispensing Pharmacists (M/G/S)
11 Dispensing Pharmacists (M/M/S) 11 Dispensing Pharmacists (M/G/S)
(a)
90.0
80.0
70.0
Waiting Times
60.0
50.0
40.0
30.0
20.0
10.0
8 9 10 11
Number of Dispensing Pharmacists
8 Packers (M/M/S) 8 Packers (M/G/S)
9 Packers (M/M/S) 9 Packers (M/G/S)
10 Packers (M/M/S) 10 Packers (M/G/S)
11 Packers (M/M/S) 11 Packers (M/G/S)
(b)
Figure 6. Comparisons of mean total waiting times computed with and without assumptions of exponential service times
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Authors’ biographies
Loon Ching Tang, an Associate Professor in NUS, obtained his PhD from Cornell University in the field of
Operations Research with minors in Statistics. He has published numerous papers in more than 20 international
journals. In addition to being active in the forefront of research, he has been active in providing consulting
and training in the areas of Six Sigma, Design for Six Sigma, Statistical Methods, Operations Research
and Reliability Engineering. He is the Area Editor (Quality Engineering) of the International Journal of
Performability Engineering.
Cai Wen Zhang is a PhD candidate with the Department of Industrial and Systems Engineering. He is currently
working for Hitachi Global Storage Technologies (Singapore) Pte Ltd.
Thong Ngee Goh holds a PhD from the University of Wisconsin–Madison. He is an Academician of the
International Academy for Quality and Fellow of the American Society for Quality, as well as director of the
Quality and Innovation Research Centre, Industrial and Systems Engineering Department, National University
of Singapore. He is also recipient of the latest IEEE Engineering Management Society Educator of the Year
Award.
Shao Wei Lam is a Research Fellow with the Department of Industrial and Systems Engineering, National
University of Singapore. He holds a BEng in Mechanical Engineering and MEng in Industrial and Systems
Engineering. His research interests are in the field of quality-by-design, operations research in healthcare and
supply chain management. He has provided training and consultancy services in Design for Six Sigma.
Copyright
c 2007 John Wiley & Sons, Ltd. Qual. Reliab. Engng. Int. 2007; 23:3–18
DOI: 10.1002/qre