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Introduction to Six Sigma

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A very basic introduction to Six Sigma from www.treqna.com
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Page 1: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

Six sigma Introduction

Page 2: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

expectations •Awareness with respect to

origin and history of Six Sigma.

•The utility and benefits

•Introduction to Six Sigma as methodology

•The Six Sigma organization

Page 3: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

contents

Six Sigma Intro 15 minBPMSDMAIC

Page 4: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

• 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.

Two Meanings of Sigma

Page 5: Introduction to Six Sigma

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• 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

Origin of Six Sigma

MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma

Page 6: Introduction to Six Sigma

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• 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

The Growth of Six Sigma

GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma

Page 7: Introduction to Six Sigma

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The GE model for process improvements

The Growth of Six Sigma

DefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

Combination of change management & statistical analysis

Page 8: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

The Growth of Six Sigma

Page 9: Introduction to Six Sigma

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BPMSBPMSBusiness Process Management Business Process Management

SystemSystem

Page 10: Introduction to Six Sigma

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• 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

The Need of BPMS

Page 11: Introduction to Six Sigma

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The Methodology

Define Process Mission Map Process VOC and VOP Build PMS Develop

DashboardsIdentify

Improvement Opportunities

Define purpose of the process, its goal and its boundaries

Identify Critical to Quality and Critical to process

Visual representation of performance

Map process steps, identify input/ output measures

MSA, DCP, indicators and monitors

Service excellence and process excellence

The DMAIC cycle

Page 12: Introduction to Six Sigma

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DMAICDMAICSix Sigma Improvement Six Sigma Improvement

MethodologyMethodology

Page 13: Introduction to Six Sigma

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• A logical and structured approach to problem solving and process improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

What is DMAIC ?

EEEffectiveness

= QQQuality

Improvement

x AAAcceptance

Page 14: Introduction to Six Sigma

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The Approach

Practical Problem

StatisticalProblem

Statistical Solution

Practical Solution

Page 15: Introduction to Six Sigma

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DDefine

MMeasure

AAnalyze

IImprove

CControl

Identify and state the practical problem

Validate the practical problem by collecting data

Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution

Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Methodology

Page 16: Introduction to Six Sigma

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D

VoCVoC - Who wants the project and why ?

The scope of project / improvement

Key team members / resources for the project

Critical milestones and stakeholder review

Budget allocation

DefineD

Define

MMeasure

AAnalyze

IImprove

CControl

Page 17: Introduction to Six Sigma

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M

Ensure measurement system reliability

Prepare data collection plan

Collect data

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

- How many data points do you need to collect ?- How many days do you need to collect data for ?- What is the sampling strategy ?- Who will collect data and how will data get stored ? - What could the potential drivers of variation be ?

MeasureD

Define

MMeasure

AAnalyze

IImprove

CControl

Page 18: Introduction to Six Sigma

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A

Understand statistical problem

Baseline current process capability

Define statistical improvement goal

Identify drivers of variation (significant factors)

AnalyzeD

Define

MMeasure

AAnalyze

IImprove

CControl

Page 19: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

A

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

Problem

Backbone

Primary Cause Secondary

Cause

Root Cause

Analyze – Identify Drivers of Variation

Page 20: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

A

Control – Impact Matrix

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

Vital FewHigh Control – High

Impact

Cost IneffectiveCost IneffectiveLow Control – High ImpactLow Control – High Impact

Cost IneffectiveCost IneffectiveHigh Control – Low ImpactHigh Control – Low Impact

Trivial ManyTrivial ManyLow Control – Low ImpactLow Control – Low Impact

ControlControl

Impa

ctIm

pact

Analyze – Identify Drivers of Variation

Page 21: Introduction to Six Sigma

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A

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)

05

101520253035

L K A F B C G R D0%

20%

40%

60%

80%

100%

Frequency Cumulative Frequency

Analyze – Identify Drivers of Variation

Page 22: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

A

Process Map Analysis

• Visually highlights hand off points / working relationships between people, processes and organizations

• Helps identify rework loops and non value add steps

VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

Analyze – Identify Drivers of Variation

Page 23: Introduction to Six Sigma

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A

Hypothesis Testing

• A statistical tool used to validate if two samples are different or whether a sample belongs to a given population

Null Hypothesis (HNull Hypothesis (Hoo)) is the statement of the status quo

Alternate Hypothesis (HAlternate Hypothesis (Haa)) is the statement of difference

Analyze – Identify Drivers of Variation

One way ANOVA

Regression

Homogeneity of Variance Moods Median

Chi-Square

Page 24: Introduction to Six Sigma

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I

Map improved process

Pilot solution

Identify operating tolerance on significant factors

ImproveD

Define

MMeasure

AAnalyze

IImprove

CControl

Page 25: Introduction to Six Sigma

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C

Ensure measurement system reliability for significant factors

Improved process capability

Sustenance Plan

- Is tool used to measure the input / process variables flawed ?- Do all operators interpret the tool reading in the same way ?

- Statistical Process Control- Mistake Proofing- Control Plan

ControlD

Define

MMeasure

AAnalyze

IImprove

CControl

Page 26: Introduction to Six Sigma

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C

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 ?

Control – Sustenance Plan

Page 27: Introduction to Six Sigma

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Six Sigma OrganizationSix Sigma Organization

Page 28: Introduction to Six Sigma

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Six Sigma - Three Dimensions

ToolsOrganization

Methodology

Process variation

LSL USL

Upper/Lower specification

limits

Regression•••••••• •••• •••••

••

•••• •• ••

• •• ••••••••• •

•••••

Driven by

customer

needs

Enabled by quality team.

Led by Senior Mgmt

Define Measure

Analyze Improve ControlVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

Process Map Analysis

05

101520253035

L K A F B C G R D0%

20%

40%

60%

80%

100%

Frequency Cumulative Frequency

Pareto Chart

Page 29: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

The Quality Team

Master Black BeltMaster Black Belt

Black BeltBlack Belt Black BeltBlack Belt

Green BeltGreen Belt

Green BeltGreen Belt

Green BeltGreen Belt

- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Backbone of Six Sigma Org- Full time resource- Deployed to complex or

“high risk” projects

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

Page 30: Introduction to Six Sigma

© All Rights Reserved TreQna 2005

Thank YouThank You


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