What is Six Sigma…
Six Sigma is a business concept that answers customers’ demand for high quality and defect-free business processes.
Six Sigma was born when Motorola published its Six Sigma quality program in 1987.
Six Sigma is a unified approach to process excellence.
Six Sigma has transformed some of the most successful companies in the world (Motorola, Allied Signal, GE).
Six Sigma is a target (Fewer than 3.4 defects or errors per million opportunities -99.99966 perfection).
Six Sigma is an approach to aiming at that target by changing the culture of a company. It involves everyone in the company.
What is Six Sigma…
Six Sigma can be used to design in excellence and then make continuous improvements.
Six Sigma is used to bring new products and services to market (Define, Measure, Analyze, Design, Validate) by methodically laying everything out first.
Six Sigma identifies problems in a process, sets up projects within the process, evaluates the process and works through the projects (Define, Measure, Analyze, Improve, Control) to improve the process.
Six Sigma aims to raise customer satisfaction by reducing the number of defects in a process, thereby raising the Sigma rating.
Six Sigma is a culture which permeates a company in the desire of all staff to achieve targets, increase customer satisfaction, lower costs and improve profitability.
Measure of variation
aka: standard deviation
Process Quality Measurement
Six Sigma Precepts
Customer and process focused
Focus is on the things that matter
Data driven decisions
Act on fact
Reduced variation in process performance
Variation is the enemy
Reduction in cycle time
Faster is usually better
Prevention of defects
Proactive not reactive
A new perspective of performance
99% is not good enough
Core Principles of Six Sigma
Prioritization of improvements
Process-driven approach to managing the business
DMADV / DMAIC
Near Perfection as a goal of performance
Teamwork draws on experience, knowledge and dedication
Recognition – expression of respect for employee contribution
The Six Sigma Difference
Assigns and trains improvement experts
Involves all/most organizational members
Targets significant and lasting improvements
Requires the use of proven statistical tools
Attacks the root cause of problems
Focuses on improvements that have financial impact
Provides a single measure to compare disparate processes
Pushes processes to achieve near-perfect quality levels
Six Sigma is a permanent long-term program
Six Sigma DMAIC Model
Using Successive Projects for Cycle Time and Defect Reduction
What is important?
How are we doing?
What is wrong?
Fix what’ s wrong
Ensure gains are maintained to guarantee performance
Identify our internal and external customers
Determine what our customers want
Identify our suppliers
Determine what we need from our suppliers
Identify the process that contributes to the problems
Identify improvement opportunities
Scope the improvement project
Select the right players
Set goals and objectives
Review the current process
Identify key inputs and outputs
Develop baseline and entitlement metrics
Collect and organize data
Evaluate the performance of the process
Assess the amount of variation
In the process
In the measurement system
Identify issues that occur at each step in the process
Assess customer impact of problems
Prioritize most critical inputs
Assess the effect on outputs or performance
Determine root causes
Select most likely solutions
Develop Action Items
Determine best combination of inputs and controls
Capture and quantify benefits of the process improvements
Document the project
Communicate for organizational learning
Recognize the team’ s efforts and success
Monitor and manage to hold gains
Adjust for continuous improvement
Tools & Templates by DMAIC Phase
Tools & Templates by DMAIC Phase continued
Define – Team Charter
What is the focus of the team’ s efforts?
What are the boundaries of the effort?
What is the expected outcome?
Why is this important?
Who are the key players?
Define – Thought Process Map
What is the problem?
Do we have any data and information on the problem?
What processes are being considered?
What are the key questions that need to be answered?
Define – Top Level Process Map
What is the starting point of the process?
What is the end point of the process?
What are the major steps in the process?
Who is involved in the process?
Measure – DPMO and Sigma
What is the output volume of the process?
What are the opportunities for error?
How many defects are produced?
What is the performance level of the process?
Measure – Descriptive Statistics
Is our data normally distributed?
What are the confidence intervals?
Can we use our data for further analysis?
Measure – Control Charts
What are the performance trends?
Is variation within the normal range?
Is the process stable?
Is the process capable?
Measure – Detailed Process Map
Who are the suppliers and customers?
What are the inputs and outputs?
Which inputs are controllable?
Where do we have issues?
What impacts cycle time?
Is there a hidden factory?
What % of the steps add value?
Measure – Issues List
What goes wrong at each step in the process?
Where are the majority of the problems?
What functional areas are most affected?
Analyze – Cause and Effect Matrix
What are the most important customer requirements?
What is the relationship of major process steps and inputs to customer requirements?
Where should we focus our improvement efforts?
Analyze – Ishikawa (Fishbone)
Which of the process inputs are likely to contribute to the problem?
What are the categories of root causes?
What are the most likely root causes within each category?
Analyze – Pareto
What is the frequency of occurrence of each potential root cause?
Which root causes are likely to contribute most to our defects?
Which root causes should we focus on first?
Analyze – FMEA
How can our product, service or process fail?
What are the consequences of failure?
How likely is the failure to occur?
How likely is the customer to be affected?
Analyze – Components of Variation (COV)
Where are the major sources of variation?
How much variation is present at each level of the hierarchy?
Where should we focus our efforts to reduce the variation?
Improve – MSE
How real is the variation that we observe in our process?
Does the measurement system contribute to the variation?
Is the measurement system adequate?
Improve – DOE
Which of the improvement ideas identified with other tools represent the largest payback with respect to the CBI?
Do multiple improvements work in concert to produce a better result?
Improve – Action Items
Which of the validated improvements are we going to implement?
What is the expected benefit?
What are the key deliverables?
What is the implementation schedule?
How will we know that the Action Item was successfully implemented?
Control – Control and Reaction Plan
Do the key outputs meet the performance standard?
What are the most likely causes of an out-of-standard condition?
What actions need to be taken?
Who is responsible to take the actions?
Control – Control Charts
What are the performance trends?
Are we holding the gains from our process improvements?
Is any further action required?
Control – Business Impact (ABM)
What is the business impact of the process improvement?
How should the savings be reflected in the current plan or forecast?
Does the improvement free up capacity to satisfy new demand?
Control – 4 Up
What is the CBI that we are addressing?
What are the Issues?
What are the Action Items?
What is the status of the project?
Some Final Thoughts About Tools
Select tools based on what you need to do
Use of tools is a good way to share knowledge among team members
The sequence of tool use documents the team’ s thought process
Never use a tool that’ s more complex than the problem that you’ re trying to solve
Use enough tools to guarantee the success of the project
But Don’ t become a slave to the tools
Some Last Thoughts on Six Sigma
In many areas, Six Sigma is not reasonably attainable.
Regardless, a goal of every performance improvement project should be to raise the Sigma rating.
Six Sigma is about continuous improvement.
In the words of Jack Welch, former Chairman of GE: It’ s the only program I’ ve ever seen where customers win, employees are engaged and satisfied, and shareholders are rewarded.