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Six sigma

Introduction

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expectatio
ns •Awareness with respect to
origin and history of Six
Sigma.

•The utility and benefits

•Introduction to Six Sigma as


methodology

•The Six Sigma organization


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contents

Six Sigma Intro 15 min


BPMS
DMAIC

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Two Meanings of Sigma

σ
• The term “sigma” is used to designate the distribution or spread
about the mean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that


indicates how well that process is performing. The higher the sigma
capability, the better. Sigma capability measures the capability of
the process to produce defect-free outputs. A defect is anything that
results in customer dissatisfaction.

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Origin of Six Sigma

Motorola
the company that invented Six Sigma

• The term “Six Sigma” was coined by Bill Smith, an engineer with
Motorola

• Late 1970s - Motorola started experimenting with problem solving


through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

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The Growth of Six Sigma

GE
the company that perfected Six Sigma

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for


management promotions

• 2002/03 - Green Belt certification became the criteria for promotion


to management roles

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The Growth of Six Sigma

The GE model for process improvements

Define Measure Analyze Improve Control

Combination of change management & statistical


analysis

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The Growth of Six Sigma

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BPMS
Business Process Management
System

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The Need of BPMS

• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for


the process

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The Methodology

Map process MSA, DCP, Service


steps, indicators excellence
identify and monitors and process
input/ output excellence
measures
Identify
Define Process Develop
Map Process VOC and VOP Build PMS Improvement
Mission Dashboards
Opportunities

Define Identify Visual


purpose of Critical to representatio
the process, Quality and n of
its goal and Critical to performance
its process
boundaries
The DMAIC
cycle
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DMAIC
Six Sigma Improvement
Methodology

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What is DMAIC ?

• A logical and structured approach to problem solving and process


improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

E = Q x A
Effectiveness Quality Acceptance
Improvement

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The Approach

Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution

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Methodology

D Identify and state the practical problem


Define

Validate the practical problem by collecting data


M
Measure
Convert the practical problem to a statistical one,
A define statistical goal and identify potential statistical
Analyze solution

I Confirm and test the statistical solution


Improve

C Convert the statistical solution to a practical solution


Control

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Define

D VoC - Who wants the project and why ?


Define

M The scope of project / improvement


Measure

A Key team members / resources for the project


Analyze

I
Critical milestones and stakeholder review

D
Improve

C
Control Budget allocation

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Measure

D Ensure measurement system reliability


Define
- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same
M way ?
Measure

A Prepare data collection plan


Analyze - How many data points do you need to collect ?
- How many days do you need to collect data for ?
I - What is the sampling strategy ?
Improve - Who will collect data and how will data get stored ?

M
- What could the potential drivers of variation be ?

C
Control Collect data

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Analyze

D Understand statistical problem


Define

M
Measure Baseline current process capability

A
Analyze
Define statistical improvement goal
I
Improve

C
Control
A
Identify drivers of variation (significant factors)

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Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)

• A brainstorming tool that helps define and display major causes, sub
causes and root causes that influence a process

• Visualize the potential relationship between causes which may be


creating problems or defects

Primary
Cause Secondary
Cause

Backbon Proble

A
e m

Root
Cause
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Analyze – Identify Drivers of Variation
Control – Impact Matrix

• A visual tool that helps in separating the vital few from the trivial many

Control

Vital Few Cost Ineffective


High Control – High
Low Control – High Impact
Impact
Impact

Cost Ineffective
High Control – Low Impact
Trivial Many
Low Control – Low ImpactA
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Analyze – Identify Drivers of Variation
Pareto Chart

• Pareto principle states that disproportionately large percentage of


defects are caused due to relatively fewer factors (generally, 80%
defects are caused by 20% factors)
35 100%
30
80%
25
20 60%
15 40%
10
20%
5

A
0 0%
L K A F B C G R D

Frequency Cumulative Frequency

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Analyze – Identify Drivers of Variation
Process Map Analysis

• Visually highlights hand off points / working relationships between


people, processes and organizations

• Helps identify rework loops and non value add steps

Customer Process A Process B Vendor

A
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Analyze – Identify Drivers of Variation
Hypothesis Testing

• A statistical tool used to validate if two samples are different or


whether a sample belongs to a given population

Null Hypothesis (Ho) is the statement of the status quo

Alternate Hypothesis (Ha) is the statement of difference

Homogeneity of One way ANOVA


Variance Moods Median

Chi-Square Regression
A
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Improve

D Map improved process


Define

M
Measure

Pilot solution
A
Analyze

I
Improve

C
Control
I
Identify operating tolerance on significant factors

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Control

D
Ensure measurement system reliability for
Define significant factors
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?
M
Measure
Improved process capability
A
Analyze

I
Improve Sustenance Plan

C
Control
- Statistical Process Control
- Mistake Proofing
- Control Plan
C
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Control – Sustenance Plan
Control Plan

• Have the new operating procedures and standards been


documented ?

• What Statistical Process Control (SPC) tools will be used to monitor


the process performance ?

• Who will review the performance of the output variable and


significant factors on closure of the project and how frequently ?

• What is the corrective action or reaction plan if any of the factors


were to be out of control ?

C
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Six Sigma Organization

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Six Sigma - Three Dimensions
Customer Process A Process B Vendor

Define Measur Analyze Improve Control


e

Driven
by
custom
er
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt
••••••••••
Upper/Lower
specification
• •
••• •

•••••••
••••••
limits
Organization Tools

Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5

Process variation 0 0%

Enabled by quality
L K A F B C G R D

Frequency Cumulative Frequency

team.
Pareto Chart

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The Quality Team

Master Black Belt - Thought Leadership


- Expert on Six Sigma
- Mentor Green and Black Belts

- Backbone of Six Sigma Org


Black Belt Black Belt
- Full time resource
- Deployed to complex or
“high risk” projects

Green Belt
Green Belt
- Part time or full time
resource
Green Belt
- Deployed to less complex
projects in areas of functional
expertise
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Thank You

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