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Six Sigma for Managers
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Contents : Six Sigma : An Overview
What is Six Sigma?
Why Six Sigma?
Six Sigma Phases : Define, Measure, Analyze,
Improve and Control
Tools and Key Roles for Six Sigma
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Why Six Sigma?
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What is Sigma ?
Sigma
A term used in statistics to represent
standard deviation, an indicator of thedegree of variation in a set of a process
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What is Six Sigma?
SixSigma
A statistical concept that measures a
process in terms of defects at the sixsigma level, there 3.4 defects per
million opportunities
A philosophy and a goal : as perfect aspractically possible
A methodology and a symbol of quality
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Sigma LevelSigma Level
(Process
Capability)
Defects per MillionOpportunities
2 308,537
3 66,807
4 6,210
5 2336 3.4
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Sigma Level
Six Sigma =99,9997%
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Sigma Level Every hour the postal service
would lose 20,000 pieces of mail
Every day our drinking water
would be unsafe for almost 15
minutes
Every week there would be 5,000
surgical operations that go wrong
in some way
Every month we would be without
electricity for almost seven hours
Why not Four
Sigma or99.379% ?
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Why Six Sigma?
Money
CustomerSatisfaction
Growth
Quality
CompetitiveAdvantage
Employee Pride
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At GE, Six Sigma added more than $ 2 billion to the
bottom line in 1999 alone
Motorola saved more than $ 15 billion in the first 10
years of its Six Sigma effort
AlliedSignal reports saving $ 1,5 billion through SixSigma.
Why Six Sigma?
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Why Six Sigma?
Six Sigma is about practices that help you
eliminate defects and always deliver
products and services that meet customer
specifications
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Cost of Poor QualityWhat is cost of scrap?
What is cost of rework?
What is cost of excessive cycle times anddelays?
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Cost of Poor QualityWhat is cost of business lost because
customers are dissatisfied with your
products or services?
What is cost of opportunities lost because
you didnt have time or the resources to takeadvantage of them?
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Critical-to-Quality (CTQ)Elements of a process that significantly affect
the output of that process. Identifying these
elements is figuring out how to make
improvements that can dramatically reduce
costs and enhance quality.
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Six Sigma Phases
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Define Measure Analyze
Improve
Control
Six Sigma Phases
D M A I C
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Define
Measure
Analyze
Six Sigma Phases
Define the project goals and customer
(internal and external) deliverables
Measure the process to determine current
performance
Analyze and determine the root cause(s)
of the defects
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Improve
Control
Six Sigma Phases
Control future process performance
Improve the process by eliminating defects
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Six Sigma Phases
Define
Define Customers and Requirements (CTQs)
Develop Problem Statement, Goals and
Benefits
Identify Champion, Process Owner and Team
Define Resources
Evaluate Key Organizational Support
Develop Project Plan and Milestones
Develop High Level Process Map
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Six Sigma Phases
Measure
Define Defect, Opportunity, Unit and Metrics
Detailed Process Map of Appropriate Areas
Develop Data Collection Plan
Validate the Measurement System
Collect the Data
Begin Developing Y=f(x) Relationship Determine Process Capability and Sigma
Baseline
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Six Sigma Phases
Analyze
Define Performance Objectives
Identify Value/Non-Value Added Process
Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x's, Y=f(x)
Relationship
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Six Sigma Phases
Improve
Perform Design of Experiments
Develop Potential Solutions
Define Operating Tolerances of Potential
System
Assess Failure Modes of Potential
Solutions
Validate Potential Improvement by Pilot
Studies
Correct/Re-Evaluate Potential Solution
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Six Sigma Phases
Control
Define and Validate Monitoring and Control
System
Develop Standards and Procedures Implement Statistical Process Control
Determine Process Capability
Develop Transfer Plan, Handoff to Process Owner
Verify Benefits, Cost Savings/Avoidance, ProfitGrowth
Close Project, Finalize Documentation
Communicate to Business, Celebrate
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Define Measure Analyze Improve Control
Deliverables :
Fully trained team is formed, supported, and
committed to work on improvement project.
Team charter developed, customers identified and
high impact characteristics (CTQs) defined, business
process mapped.
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Checkpoints for Readiness
Team Readiness :
Team is sponsored by a champion or business leader.
Team formed and team leaders assigned.
Improvement team members fully trained on Six Sigma and DMAIC.
Define Measure Analyze Improve Control
Team Charter :
Completed project management charter, including business case,
problem and goal statements, project scope, milestones, roles and
responsibilities, communication plan.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Customers
Customer(s) identified and segmented according to their different
needs and requirements.
Data collected and displayed to better understand customer(s) critical
needs and requirements.
Business Process Mapping Completed, verified, and validated high-level 'as is' (not 'should be' or
'could be') business process map.
Completed SIPOC representation, describing the Suppliers, Inputs,
Process, Outputs, and Customers.
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Define Measure Analyze Improve Control
Deliverables :
Key measures identified, data collection planned and
executed, process variation displayed and communicated,
performance baselined, sigma level calculated.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Key Measures Identified
Key measures identified and agreed upon.
High impact defects defined and identified in the business process.
Data Collection Planned and Executed
Solid data collection plan established that includes measurement
systems analysis.
Data collected on key measures that were identified.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Process Variation Displayed/Communicated
Process variation components displayed/communicated using
suitable charts, graphs, plots.
Long term and short term variability accounted for.
Performance Baseline/Sigma Calculation
Measure baseline process performance (capability, yield,
sigma level).
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Define Measure Analyze Improve Control
Deliverables :
Data and process analysis, root cause analysis,
quantifying the gap/opportunity.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Data and Process Analysis
Identify gaps between current performance and the goalperformance.
Root Cause Analysis
Generate list of possible causes (sources of variation).
Segment and stratify possible causes (sources of variation).
Prioritize list of 'vital few' causes (key sources of variation).
Verify and quantify the root causes of variation.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Quantifying the Gap/Opportunity
Determine the performance gap.
Display and communicate the gap/opportunity in financial terms.
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Define Measure Analyze Improve Control
Deliverables :
Generate (and test) possible solutions, select the best
solutions, design implementation plan.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Generating (and Testing) Possible Solutions
Possible solutions generated and tested.
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Selecting The Best Solution(s)
Optimal solution selected based on testing and analysis.
New and improved process ('should be') maps developed.
Cost/benefit analysis of optimal solution(s).
Small-scale pilot for proposed improvement(s).
Pilot data collected and analyzed.
Improved process ('should be') maps modified based on pilot data
and analysis.
Project impact on utilizing the best solution(s).
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Designing Implementation Plan
Solution implementation plan established, including schedule/work
breakdown structure, resources, risk management plan,
cost/budget, and control plan.
Contingency plan established.
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Define Measure Analyze Improve Control
Deliverables :
Documented and implemented monitoring plan,
standardized process, documented procedures, responseplan established and deployed, transfer of ownership
(project closure).
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Define Measure Analyze Improve Control
Checkpoints for Readiness
Response Plan
Response plans established, understood, and deployed.
Transfer of Ownership (Project Closure)
Transfer ownership and knowledge to process owner and process
team tasked with the responsibilities.
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Tools and Roles forSix Sigma
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DOE is a structured, organized method for
determining the relationship between
factors (Xs) affecting a process and theoutput of that process (Y).
Tools for Six Sigma
Design of
Experiments
or DOE
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A group of rows and columns, with one set
of increments marked along the X
(horizontal) axis and another set ofincrements marked along the Y (vertical)
axis.
The purpose of using XY matrix is to study
and understand the relationship betweenwhat you are putting into a process and
what your customer is getting out of it.
The XY matrix allows the team to identify
gaps, areas for improvement.
Tools for Six Sigma
XY Matrix
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The goal of this tool is to ensure that your
measurement system is statically
confidentthat its both accurate andprecise each and every time it is used.
Undertaken during Measure phase, your
MSA determines whether or not you can
take a certain measurement and repeat orreproduce it among different people who
take the same measurement.
Tools for Six Sigma
Measurement
System
Analysis
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Process capability tool is the measure of a
process being able to meet specification
requirements and fulfill customer CTQneeds on a long term basis.
Tools for Six Sigma
Process
Capability
Tool
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Investigating a theory about the suspected
cause (s) of a particular effect in a process
to determine if it is correct. Its a compass that points you directly to
the vital few factors that are most affecting
your process.
Tools for Six Sigma
Hypothesis
Testing
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The manner in which a part or process can
fail to meet a specification, creating a
defect or non-conformance, and the impacton the customer if that failure mode is not
prevented or corrected.
Tools for Six Sigma
Failure
Mode Effect
Analysis
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A detailed assessment and guide for
maintaining all the positive changes you,
your black belt, and the project team havemade.
It ensures that all your analysis and efforts
stay in effect and that you have information
at your disposal to prevent backsliding or areturn to less than optimal performance
standard.
Tools for Six Sigma
Control
Plan
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Champions Are responsible for the Six Sigma
implementation across the organization in anintegrated manner. Champions also act as
mentor to Black Belts.
Includes CEO and other key top management
team members. They are responsible for setting
up a vision for Six Sigma implementation.
Key Roles for Six Sigma
Executive
Leadership
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Black Belts Operate under Master Black Belts to apply Six
Sigma methodology to specific projects. Theyprimarily focus on Six Sigma project execution.
Identified by champions, act as in-house expert
coach for the organization on Six Sigma. They
devote 100% of their time to Six Sigma.
Key Roles for Six Sigma
Master
Black Belts
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Are the employees who take up Six Sigma
implementation along with their other job
responsibilities. They operate under the guidance
of Black Belts and support them in achieving the
overall results.
Key Roles for Six Sigma
Green Belts
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Six Sigma Dos
Do communicate the commitment company-
wide
Do demonstrate the commitment of company
leaders
Do empower your key human resources
Do provide on-site mentoring for black belts
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Six Sigma Dos
Do be patient at the inception of you six Sigma
initiative
Do claim and advertise early wins
Do benchmark
Do establish project baseline and goals
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Recommended Further Readings:
1. Greg Brue, Six Sigma for Managers, McGraw Hill
2. George Eckes, Six Sigma for Everyone, John Wiley and Sons
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