Six Sigma

Six Sigma Defined:

Quality management program developed by
Motorola in the 1980s.
Management philosophy focused on business
process improvements to:

Eliminate waste, rework, and mistakes

Increase customer satisfaction
Increase profitability and competitiveness

Statistical measure to objectively evaluate

processes.

GOAL: Reach Six Sigma Quality

Six Sigma
List some ways this program can be
used in your organization.

The Statistical Tools of

Six Sigma:

The Statistical Tools of

Six Sigma:

The Statistical Tools of

Six Sigma
Another way to look at it:
1. Clearly define the customers explicit
requirements--CTQ
2. Count the number of defects that occur.
3. Determine the yield-- percentage of items
without defects.
4. Use the conversion chart to determine
DPMO and Sigma.

Sigma Conversion Table:

If your yield is:

Your DPMO is:

Your Sigma is:

30.9%

690,000

1.0

62.9%

308,000

2.0

93.3

66,800

3.0

99.4

6,210

4.0

99.98

320

5.0

99.9997

3.4

6.0

The Components of Six

Sigma:

People Power
Process Power

People Power:
Executive Leader
Champion/Sponsor
Master Black Belt
Black Belt
Green Belt

Green Belt

Green Belt

Executive Leader Roles:

High Level Executive committed to
Six Sigma Success
Knowledgeable in Six Sigma Process
Assign key individuals to the
Champion/Sponsor Position.

Champion/Sponsor Roles:

High Level Executive

Oversee the Black Belt positions
Provide resources to complete the
job
Assist Black Belts to select projects
Benchmark with other organizations

Master Black Belt Roles:

Resource for the Black Belts-experts
on the mathematical theory of
statistical methods
Experts on the Six Sigma process
Works with the Champion/Sponsor to
select projects.

Black Belt Roles:

Leaders of the Six Sigma process

Management and technical skills
Bring the project vision to reality
Solely dedicated to Six Sigma
Program
Oversee Green Belts

Green Belt Roles:

Project Leaders
Support the Black Belt to complete
the project

Process Power:
DMAICFive Step Process
Define

Control

Improve

Measure

Analyze

Define:

Clearly identify the problem

Utilize numerical definition
Focus on process that creates the
problem not on the outcome

Measure:

Benchmark
Capability of a given process
Focus on CTQ

Analyze:
Current process results
What is possible compared to what
the competition is doing

Improve:
Implement changes
Be creative to find new ways to do
things better, cheaper, or faster

Control:
Lock in successes
Implement measures to keep
variables within the new operating
limits

Corporations Practicing
Six Sigma:

General Electric
Motorola
Allied Signal
Sony
Polaroid

Specific Success Story:

GE

1995 Operating margin13.5%

1998 Operating margin16.7%
Result: $600million bonus

The most important initiative GE

has ever undertaken
--Jack Welch, CEO General Electric

Exercise
You have just completed all your training sessions
for the valued Black Belt role. Currently your
organization is operating at a 2 sigma level and your
Champion wants this to improve using the Six Sigma
process. It seems that although production is high,
the defect levels are too high for the production of
your leading line of products, Sticky Buns. This has
significantly cut into profits almost to the point of
dropping the line. Customer surveys indicate there
is a demand for Sticky Buns so you are handed the
challenging task of improving this process using the
Six Sigma DMAIC approach.

Summary:

Management philosophy of quality

Statistical target of six sigma or 3.4
defects in one million opportunities
Components of Six Sigma are people power
and process power
Executive Leader, Champion, Master
Black Belt, Black Belt, and Green Belt
Define, Measure, Analyze, Improve,
Control
Customer focus

Bibliography
Chowdhury, S. The Power of Six Sigma. Chicago: Dearborn Trade,
2001
Pande, P. S., Neuman, R. P., Cavanaugh, R. R. The Six Sigma Way
How GE, Motorola, and Other Top Companies Are Honing Their
Performance. New York: McGraw-Hill, 2000
Normal Distribution Bell Curve:
Six Sigma IT Concepts Kurt Haubner HomePage:
http://www.sixsigma.de/english/images/sixsigma/gauss_kurve.gif

Six Sigma Process Graph:

http://www.isixsigma.com/me/six_sigma/