1 - Define - Understanding Six Sigma

Definition of Six Sigma
Six Sigma is a lot of things…..
Methodology Business Strategy

Tools and Tactics
Six
Sigma
Philosophy of Process Measurement
Operational Excellence and Management
OSSS LSS Green Belt v11.0 XL - Define Phase 1 © Open Source Six Sigma, LLC
What is Six Sigma…as a Methodology?
Six Sigma as a Methodology provides an organized, specific, repeatable

means of assessing and resolving challenges through a process titled….
D M A I C
De M An Im Co
fin ea a pr n tr
e su ly ov ol
re ze e
This
Thisapproach
approachyields
yieldsaafocus
focuson
oncause
causeand
andeffect
effectwith
with
analytical
analyticalproblem
problemsolving
solvingtools
toolswithin
withinaamanagement
management
structure
structuretotoassure
assureresults.
results.
What is Six Sigma…as a Business Strategy?
Six Sigma as a Business Strategy links the outputs of the processes

conducted within a company to the expectations of the customers……
*LSL – Lower Spec Limit

*USL – Upper Spec Limit
-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
By
Byreducing
reducingwaste
wasteandandvariation
variationexpenses
expensesare
arereduced
reduced
and
andcustomer
customersatisfaction
satisfactionincreases
increasesthus
thusimproving
improving
operating
operatingmargins
marginsby byas
asmuch
muchasas50%.
50%.
What is Six Sigma…as a Philosophy?
Six Sigma as a Philosophy is based on the theory that reducing

variation in process output to stay within limits defined by the
customer will yield great returns.
Defects are expensive. Competitive Advantage is gained by
meeting customer expectations…Six Sigma has been proven to
accomplish just that objective.
Six Sigma Program &

Process Performance
have a
Positive Correlation
The Six Sigma philosophy is that of Continuous Improvement through the use
of data and specific variation reduction techniques.
What is Six Sigma…as Process Measurement?
Six Sigma as a Process Measurement system uses accurate data to

analyze process performance and find Root Causes of defects….
• Defects
• Defects per unit (DPU)
• Parts per million (PPM)
• Defects per million opportunities
(DPMO)
• First Time Yield (FTY)
• Sigma value
A process oriented approach where the metrics for significant inputs

and outputs are measured, monitored and managed.
What is Six Sigma…as a Benchmark?
A Sigma value allows us to Benchmark performance against other

processes.
Yield PPMO COPQ Sigma
99.9997% 3.4 <10% 6 World Class Benchmarks
99.976% 233 10-15% 5 10% GAP
99.4% 6,210 15-20% 4 Industry Average
93% 66,807 20-30% 3 10% GAP
65% 308,537 30-40% 2 Non Competitive
50% 500,000 >40% 1

Source: Journal for Quality and Participation, Strategy and Planning Analysis
What does 20 - 40% of Revenue represent to your Organization?
What is Six Sigma…as a Tool?
Six Sigma utilizes specific Tools for business problem solving.

Six Sigma tools are used to scope and select projects, modify
and/or design new processes, improve current processes,
decrease downtime and improve customer response time.
Fishbone
Control Chart
FMEA
High Variability
A
SPC
Data Analysis Histogram
What is Six Sigma…as a Project?
.
Practical
Problem
Six Sigma
Finding the solution of Y = f(X)

Project
Statistical
Problem
Statistical
Solution
Control
Plan
Practical
Solution
Results
Conventional Strategy
Conventional definitions of quality focused on conformance to

standards.
Requirement Requirement
or or
LSL
Target USL
Bad Good Bad
Conventional strategy was to create a product or service that met

certain specifications.
• Assumed that if products and services were of good quality.
then their performance standards were correct.
• Rework was required to ensure final quality.
Problem Solving Strategy
The Problem Solving Methodology focuses on:

• Understanding the relationship between independent variables and the
dependant variable.
• Identifying the vital few independent variables that effect the dependant
variable.
• Optimizing the independent variables so as to control our dependant
variable(s).
• Monitoring the optimized independent variable(s).
There are many examples to describe dependant and independent
relationships.
• We describe this concept in terms of the equation:
Y=f (Xi)
This simply states that Y is a function of the X’s. In other
words Y is dictated by the X’s.
Y=f(X) Exercise
Exercise: Consider establishing a Y = f(X) equation for

a simple everyday activity such as producing a cup
of espresso. In this case our output, or Y, is
espresso.
Espresso =f( X , 1 X2 , X3 , X4 , Xn )
Six Sigma Strategy
We use a variety of Six Sigma tools to

help separate the “vital few” variables (X1)
effecting our Y from the “trivial man (X10) (X4)
y.”
Some processes contain many, many (X7) (X8)
variables. However, our Y is not
effected equally by all of them.
(X3)
By focusing on the vital few we (X5)
instantly gain leverage.
(X9)
Archimedes said: “ Give me a lever big enough and
fulcrum on which to place it and I shall move the world.”
(X6)
(X2)
Archimedes not
shown actual size!
Breakthrough Strategy
Bad 6-Sigma
6-Sigma
Breakthrough
Breakthrough UCL
Old Standard
Performance
LCL
UCL
New Standard
LCL
Good
Time Juran’s Quality Handbook by Joseph Juran
By utilizing the DMAIC problem solving methodology to identify and

optimize the vital few variables we will realize sustainable
breakthrough performance
VOC, VOB, VOE
The foundation of Six Sigma requires Focus on the voices of the Customer, the Business and the Employee which provides:
VOC is Customer Driven

VOB is Profit Driven
– Awareness of the needs that are Critical to the Quality (CTQ) of our products and services
– Identification of the gaps between “what is” and “what should be”
– Identification of the process defects that contribute to the “gap”
VOE is Process Driven
– Knowledge of which processes are “most broken”
– Enlightenment as to the unacceptable Costs of Poor Quality (COPQ)
Six Sigma Roles and Responsibilities
There are many Roles and Responsibilities for successful

implementation of Six Sigma.
• Executive Leadership
MBB • Champion/Process Owner
Black Belts • Master Black Belt

• Black Belt
Green Belts
• Green Belt
Yellow Belts • Yellow Belt
Executive Leadership
Not all Six Sigma deployments are driven from the top by Executive
Leadership. The data is clear, however, that those deployments that are
driven by executive management are much more successful than those
that aren’t.
• Makes decision to implement the Six Sigma initiative and

develop accountability method
• Sets meaningful goals and objectives for the corporation
• Sets performance expectations for the corporation
• Ensures continuous improvement in the process
• Eliminates barriers
Champion/Process Owner
Champions identify and select the most meaningful projects to

work on, they provide guidance to the Six Sigma belt and open the
doors for the belts to apply the process improvement technologies.
• Own project selection, execution control, implementation and

realization of gains
• Own Project selection
• Obtain needed project resources and eliminates roadblocks
• Participate in all project reviews
• Ask good questions…
• One to three hours per week commitment
Master Black Belt
MBB should be well versed with all aspects of Six Sigma, from technical
applications to Project Management. MBBs need to have the ability to
influence change and motivate others.
• Provide advice and counsel to Executive Staff
• Provide training and support

– In class training
– On site mentoring
• Develop sustainability for the business
• Facilitate cultural change
Black Belt
Black Belts are application experts and work projects within the
business. They should be well versed with The Six Sigma
Technologies and have the ability to drive results.
• Project team leader
• Facilitates DMAIC teams in applying Six Sigma methods to

solve problems
• Works cross-functionally
• Contributes to the accomplishment of organizational goals
• Provides technical support to improvement efforts
Green Belt
Green Belts are practitioners of Six Sigma Methodology and

typically work within their functional areas or support larger Black
Belt Projects.
• Well versed in the definition & measurement of critical processes

– Creating Process Control Systems
• Typically works project in existing functional area
• Involved in identifying improvement opportunities
• Involved in continuous improvement efforts

– Applying basic tools and PDCA
• Team members on DMAIC teams

– Supporting projects with process knowledge & data collection
Yellow Belt
Yellow Belts apply the Six Sigma Methodology to their own work
responsibilities and serve on project teams.
• Provide support to Black Belts and Green Belts as needed
• May be team members on DMAIC teams

– Supporting projects with process knowledge and data collection

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Definition of Six Sigma

Six Sigma is a lot of things…..

Methodology Business Strategy

Six Sigma as a Methodology provides an organized, specific, repeatable

Six Sigma as a Business Strategy links the outputs of the processes

*LSL – Lower Spec Limit

Six Sigma as a Philosophy is based on the theory that reducing

Six Sigma Program &

Six Sigma as a Process Measurement system uses accurate data to

A process oriented approach where the metrics for significant inputs

A Sigma value allows us to Benchmark performance against other

99.9997% 3.4 <10% 6 World Class Benchmarks

99.976% 233 10-15% 5 10% GAP

99.4% 6,210 15-20% 4 Industry Average

93% 66,807 20-30% 3 10% GAP

65% 308,537 30-40% 2 Non Competitive

50% 500,000 >40% 1

What does 20 - 40% of Revenue represent to your Organization?

Six Sigma utilizes specific Tools for business problem solving.

Finding the solution of Y = f(X)

Conventional definitions of quality focused on conformance to

Bad Good Bad

Conventional strategy was to create a product or service that met

The Problem Solving Methodology focuses on:

Exercise: Consider establishing a Y = f(X) equation for

We use a variety of Six Sigma tools to

Time Juran’s Quality Handbook by Joseph Juran

By utilizing the DMAIC problem solving methodology to identify and

VOC is Customer Driven

There are many Roles and Responsibilities for successful

Black Belts • Master Black Belt

• Makes decision to implement the Six Sigma initiative and

• Sets meaningful goals and objectives for the corporation

• Sets performance expectations for the corporation

• Ensures continuous improvement in the process

Champions identify and select the most meaningful projects to

• Own project selection, execution control, implementation and

• Own Project selection

• Obtain needed project resources and eliminates roadblocks

• Participate in all project reviews

• Ask good questions…

• One to three hours per week commitment

• Provide advice and counsel to Executive Staff

• Provide training and support

• Develop sustainability for the business

• Facilitate cultural change

• Project team leader

• Facilitates DMAIC teams in applying Six Sigma methods to

• Contributes to the accomplishment of organizational goals

• Provides technical support to improvement efforts

Green Belts are practitioners of Six Sigma Methodology and

• Well versed in the definition & measurement of critical processes

• Typically works project in existing functional area

• Involved in identifying improvement opportunities

• Involved in continuous improvement efforts

• Team members on DMAIC teams

• Provide support to Black Belts and Green Belts as needed

• May be team members on DMAIC teams

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