Brief Introduction

to Six Sigma
Introduction to Six Sigma

Six Sigma was the expression given as a synonym by Motorola in 1986 for
their quality program. Since then, a general definition has developed, and it
has become a useful technique for measuring quality. It has become a tool
used particularly among technology driven companies such as Allied Signal,
General Electric, Kodak and Texas Instruments.

What is Six Sigma?

Six Sigma is a statistical measurement of only 3.4 defects per million –

Six Sigma is a management philosophy focused on eliminating mistakes,

waste and rework. It establishes a measurable status to achieve and
embodies a strategic problem-solving method to increase customer
satisfaction and dramatically reduce cost and increase profits.

Six Sigma gives you discipline, structure, and a foundation for solid decision-
making based on simple statistics. The real power of Six Sigma is simple
because it combines people power with process power.
Introduction to Six Sigma

What can Six Sigma do for your organization?

If your organization is focused on customer satisfaction, then Six Sigma will

offer you a method and some tools for the identification and improvement of
both internal and external process problems to better meet customer needs by
identifying the variations in your organization’s processes that might influence
the customer’s point of view, negatively.

What does it mean to be “Six Sigma” anyway?

It’s goal is to reduce output variability through process improvement. Six

Sigma refers to an organisation’s measure of quality that strives for near
perfection.
Brief Introduction to Six Sigma

There has been a tremendous amount of discussion around defining

Six Sigma within businesses and organizations.
Brief Introduction to Six Sigma

I start the explanation with……..

1 2 3
Customer Focus Data Driven Robust Methodology

Ensuring all outputs meet Data is necessary to Data alone cannot solve all
identify input, process your customer or business
customer specifications.
and output areas for issues. A methodology for
improvement. defect definition,
measurement, analysis,
improvement and control.
Brief Introduction to Six Sigma

Six Sigma is :

The symbol for a statistical measure called the standard deviation.

This measure helps describe the shape of a bell curve like the one below.

When one knows the average ( X) and standard deviation (σ) of a process,
one can improve that process to near perfection
Brief Introduction to Six Sigma

A 3σ- sigma level translates to ;

¾ Airline crashes each week.

¾ 15,000 dropped newborn babies per year.
¾ Banks would lose thousands of cheques daily.

3σ quality literally costs businesses between 25-40% of their annual operating

income in waste and rework.
 Brief Introduction to Six Sigma

Six Sigma -- Practical Meaning

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

• 20,000 lost articles of mail per • Seven articles lost per hour
hour

• Unsafe drinking water for • One unsafe minute every seven

almost 15 minutes each day months

• 5,000 incorrect surgical

operations per week • 1.7 incorrect operations per week

• Two short or long landings at • One short or long landing every

most major airports each day five years

• 200,000 wrong drug

• 68 wrong prescriptions per year
prescriptions each year

• No electricity for almost seven • One hour without electricity

hours each month every 34 years
Brief Introduction to Six Sigma

Six Sigma Road Map;

Define Measure Analyse Implement Control

• Define our customer, • Measure the business • Determine root • Implement Solutions • Institutionalize
CTQ’s and core Process performance causes/opportunities • Generate, design and improvement &
Business processes • What are the key • Current state analysis implement implement ongoing
• What is the Business metrics for this • Cost benefit Analysis? improvements to monitoring
Case for the Project? business process? • Who will help make improve productivity • control risk, quality,
• Identify The Customer • Are metrics valid and changes? and service levels cost, schedule, scope,
• Current state map reliable? • Resource • re-integrate the and changes to the
• Future State map • Do we have adequate requirements various subprojects? plan
• Recommendations & data on this process? • What could cause this • Reinvest/Or Keep the • Monitor and report
benefits • How will I measure change effort to fail? saves made services
progress? • What major obstacles • Monitor availability
• How will I measure do I face in? against SLA’s
project success? completing this • Monitor Security.
project?
 Brief Introduction to Six Sigma

With Six Sigma companies have seen stunning improvements ….

Company ROI Time Frame

Allied Signal $1.2 billion 2 Years

General Electric $1.1 billion 9 Months
Polaroid $100 million 1 Year
Lockheed Martin $10 million 9 Months
Siebe PLC $100 million 9 months
Crane's $10 million 1 Year

Source: Six Sigma Academy

Brief Introduction to Six Sigma

So How Do You Make Six Sigma Work?

Cleaning company example

Who is your customer?

Anyone hiring you to perform cleaning services is your customer.

What are their requirements? These should be specified in the request for each
customer. (SLA)
Brief Introduction to Six Sigma

What are the correct metrics?

Remember, you can't improve what you don't measure.

What's important to your customer?

9 Ask them.
9 Interview them.
9 Create a written survey and allow them to return the survey to you anonymously.

Here are a few ideas about what I require from my cleaning company on a daily basis:

9 All rubbish removed

9 All glass & mugs cleaned
9 All rugs completely dirt free
9 All floors shiny
9 No dust on desk surfaces
9 All movable objects (chairs, wastebaskets, tables, etc.) replaced in proper position
Brief Introduction to Six Sigma

How do you measure these requirements?

9 Define a unit, opportunity and defect.

9 Measure your process.
9 Randomly pick a day a week and visit the facility
when the cleaning group is done…

Then ask yourself…

¾Is every wastebasket empty?

¾Is every pane of glass and counter-top clean?
¾Can you flip over a rug and see dirt on the floor?
¾How well a cleaning process is running?
Brief Introduction to Six Sigma

How do you improve your processes?

1. Look at what is causing your defects.

2. Create a pareto diagram of your defects.
3. Focus on the major issues using the Six Sigma DMAIC methodology.
Brief Introduction to Six Sigma

With Six Sigma a company can;

9 Measure how many “defects” it has in a process.

9 It can systematically figure out how to eliminate them.
9 Reduce costs
9 Improve productivity
9 Increase market share,

………………………and achieve other positive results..

The best organizations are at about 3 to 4 sigma, which is about 6,200

defects per million opportunities