SIX SIGMA FUNDAMENTALS

JUAN MIGUEL GONZALEZ

OBJECTIVES

• Eye opener on six sigma

• Overview six sigma and lean six sigma
Being successful is not an option, not a fate
or destiny. It is a matter of choice.
What is SIGMA

• 18TH letter of the Greek alphabet

• Greek numerals = 200
STANDARD DEVIATION

• refers to how a dataset is distributed relative to its mean, or

average. The further out data points are distributed, the higher
the standard deviation.
What is SIX SIGMA

• A defined business methodology focused on variation and defect

reduction, to increase customer satisfaction and profitability by
streamlining operations, improving quality every organization wide
process
• A quality level where there’s only 3.4 defects per million
opportunities (DPMO).
• This means it’s 99.99966 % Accurate
• Structure problem solving
What is SIX SIGMA

• is a disciplined, statistical-based, data-driven approach and

continuous improvement methodology for eliminating defects in a
product, process or service.
• Six Sigma points to the fact that, mathematically, it would take a
six-standard-deviation event from the mean for an error to happen
What is MEAN

• an essential concept in mathematics and statistics. The mean is

the average or the most common value in a collection of numbers.
• In statistics, it is a measure of central tendency of a probability
distribution along median and mode. It is also referred to as an
expected value.
History of Six Sigma
 History of Six Sigma

NORMAL CURVE

19 th Century

Carl Friedrich Gauss

History of Six Sigma

• Shewhart was the first person to

closely relate sigma level and quality.
He defined a process in need of
correction as one that is performing at
three sigma.
• Shewhart is consider the father of
control charts.

Walter Shewhart
History of Six Sigma

• working for the US Department of

Agriculture.
• Deming was in charge of teaching
courses at the agency’s graduate
school and he arranged for
Shewhart to come and speak
there.
• Deming later brought Shewhart’s
statistical concepts to the US
Census Bureau.
• This is the core tenet of Six Sigma.

William Edward Demings PDCA

MODEL
History of Six Sigma

JUST IN TIME
 History of Six Sigma

JUST IN TIME JIDOKA

TOYOTA PRODUCTION SYSTEM

History of Six Sigma
History of Six Sigma

MIKEL HARRY, PHD.

FATHER OF SIX SIGMA

BILL SMITH
 History of Six Sigma

MIKEL HARRY, PHD.

RICHARD SHROEDER
ASEA BROWN BOVERI
History of Six Sigma
Misconceptions and Myths prevalent

• Six Sigma is solely concerned with metrics and ignores common

sense. WHAT actually is true: Six Sigma often starts with
traditional common sense ideas, and validates those assumptions
with data.
• Six Sigma is too expensive
• Six Sigma can fix anything. Not always relevant to problems of
culture or people or poor leadership.
The Levels of Six Sigma Certification

• White Belt –familiar with the basic pinciples of the Six Sigma
methodology
• Yellow Belt –has good foundation of the concepts of Six Sigma and is
familiar with the basic quality tools, data collection, measurement
systems analysis and root cause analysis, and can handle small scale
improvements.
• Green Belt –has a good grasp of the application of the Six Sigma method
and handle smaller projects on their own.
• Black Belt –mostly work as a project leader or process improvement
projects. Has advanced project management and team skills, together
with intermediate to advanced statistics.
• Master Black Belt –highest certification level. Manages and trains BBs and
GBs, and serve as consultant and trainer on the Six Sigma Methodology
Applying Six Sigma Knowledge

• Six Sigma is applied via a controlled project selection and

management process.
• Once areas of concern are identified, leaders usually turn to
analysts, Six Sigma teams attempt to quantify how broken a
process is (by calculating sigma level, costs of defects, downtime,
and other metrics) and how much it might cost to address the
problem.
• Problems are then prioritized according to severity as well as an
organization’s ability to address the issue.
• Teams begin working through the priority list, returning to the
analysis from time to time to ensure the list has not changed.
Commonly known

• Lean
• Total Quality Management (TQM)
• Business Process improvements
When to Use Six Sigma
• When facing the unknown –you don’t know the cause of a problem
• When problems are widespread and not defined –scope is wide and
not well defined.
• When solving complex problems –involves many variables that its
difficult to determine how to approach a solution.
• When costs are closely tied to processes –a single tiny change can
result in millions value of gains and losses.
What is LEAN

• A business philosophy that focuses on providing “Value to the

Customer” by reducing costs, complexity, lead time and waste in
all operational processes in an enterprise.
• Toyota is usually credited with creating the concept of Lean under
their Toyota Production System (TPS), though they credit having
learned the process from Ford Motor Company.
• “Lean is all about elimination of Waste”
History of LEAN
Fundamental concepts of LEAN

• VALUE
• WASTE
• PROCESS OF CREATING VALUE
Lean and Waste

• Lean is all about elimination of waste.

• Waste (Muda) something that is used in the process that isn’t required
for a satisfactory outcome. In many cases, it creates customer
satisfaction issue because it holds up the process or introduces
undesirable defects in the end product/ service.
• In short, its anything that adds cost and time but does not add value to
the product or service.

Things to remember about Waste:

• Waste is really a symptom rather than the root cause of the problem
• Waste points to problems within the process
• We need to find and address the causes of waste.
Lean

JIT – JUST IN TIME

KAIZEN (5S)
KANBAN
Taiichi Ohno
 8 types of waste
• DEFECTS
• OVERPRODUCTION
• WAITING
• NON-UTILIZED TALENT
• TRANSPORTATION
• INVENTORY
• MOTION
• EXTRA-PROCESSING

DOWN TIME
 LEAN AND SIX SIGMA COMBINED

LEAN SIX SIGMA

Focus on Customer Value, Waste Focus on Customer Value, Defect
Elimination, Speed, Flow and reduction, reducing variation,
Resources repeatability and Consistency

LEAN SIX SIGMA

Focusing on the Customer, A Structured Approach to Variation,
Defectand Waste Elimination for Design and Improvement
GOALS OF LEAN SIX SIGMA

• Reduce Cost
• Improve Quality
• On Time Delivery
• Eliminate Waste
• Involve People
• Solve Problems
• Prevent Problems
• Apply Lean Techniques
• Continuous Improvement
DMAIC MODEL
DMAIC MODEL

• Define the problem and customer requirements.

• Measure defect rates, document process and collect baseline data
• Analyze process data and Determine the capability of the process.
• Improve the process and remove defect causes.
• Control process performance and ensure that defects do not recur.
DMADV MODEL
DMAIC VS DMADV
What is DFSS

• Referred to as Design for Six Sigma (DFSS), is the application of Six

Sigma in a product development environment

• Is a systematic process to create produce-able designs by reducing

and managing variation in order to meet the customers
expectations of quality/ performance
Most common acronyms used in DFSS

• DMADV (define, measure, analyze, design, verify)

• IDOV (identify, design, optimize, verify)
• DCOV (define, characterize, optimize, verify)
• ICOV (identify, characterize, optimize, validate)
• DMEDI (define, measure, explore, develop, implement)
• IDDOV (identify, define, develop, optimize, verify)
Importance of six sigma

• Elimination of variation and waste

• Mapping of process
• Reduce defect
• Continuous improvement
DISADVANTAGE OF SIX SIGMA

• The one-size-fits-all
• does not technically allow for the introduction of new tools or
methods, even when they could be beneficial
• t’s difficult to use or experiment with other process methodologies
for other areas of the organization.
• Narrowing policies
Benefits

• Reduce operational cost

• Improves efficiency
• Improves accuracy, controls, and policy compliance
• Improves customer service
• Improves cash flow
• Improves regulatory compliance
Principles

• Focusing on customer requirements

• Using extensive measurement and statistical analysis to
understand how work gets done and to identify the root cause of
problems (variations)
• Being proactive in eliminating variation and continually improving
the process
• Involving people in Six Sigma cross-functional teams
• Being thorough and being flexible
CHANGE MANAGEMENT
IS
PART OF SIX SIGMA
Industry users
• Agriculture • Healthcare
• Energy • Pharmaceutical
• Mining • Hotels
• Construction • Business process outsource
• Manufacturing • Logistics
• Consulting • Transportation
• Design • Airports
• Services • Non Profit Organizations
• Universities • Government
• Hospitality • Public Services
Salary range of certified six sigma
Salary range of certified six sigma

• According to PH.SIGMA (2012-2015)

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