Six SigmaGreen Belt
-6 -4 -2 0 2 4 6
Six Sigma OverviewSix Sigma Overview- What is Six Sigma?- What is Six Sigma?
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen BeltSix Sigma Includes…Six Sigma Includes…
Master Black Belts, Black Belts, Green Belts
Training
Sponsors/Champions
Business Process Council
Rewards, Recognition, Promotions, Bonuses:NOT OPTIONAL!
Change Acceleration
Teams
DASHBOARDS that Drive to Achieve Strategy
Sigma Calcs
ACTIVELeadership
StrategyProcessesProjects
Six Sigma can seem overwhelming! What IS 6?
DOE
DMAIEC
DFSS
Lean Sigma
Six SigmaGreen BeltSigma Is a Measure of Process Capability...Sigma Is a Measure of Process Capability...
…that focuses on the average and variation of the output.
Sigma
123456
DPMO
680,000298,00067,000
6,0004003.4
CustomerRequirement
12
3
45
6
DPMO – Defects per Million Opportunities
Six SigmaGreen BeltImportance of Reducing VariationImportance of Reducing Variation
To increase a process performance, you have to decrease variation
Less variation provides
� Greater predictability in the process
� Less waste and rework, which lowers costs
� Products and services that perform better and last longer
� Happier customers
Defects Defects
Too early Too late
Delivery Time
Reduce variation
Delivery Time
Too early Too late
Spread of variation too wide compared
to specifications
Spread of variation narrow compared to
specifications
Six SigmaGreen BeltWhat Is the Goal?What Is the Goal?
Six Sigma is about satisfying customer needs profitably
From GE Capital’s Six Sigma Vision
Six SigmaGreen Belt
Six SigmaSix SigmaSix SigmaSix Sigma
Desig
n Fo
r Six
Sig
ma
DMAIEC
Process Management
Improve existing processes so that their outputs meet
customer requirements
Control and Manage cross-functional processes to meet business goals
Design new products and processes that meet customer needs
Six Sigma’s MethodologiesSix Sigma’s Methodologies
Alignment & Linkage to Business Strategy & Transformation Objectives
Six SigmaGreen BeltHow Can Six Sigma Help Us?How Can Six Sigma Help Us?
Provides a standard toolkit to improve business processes
Makes processes transparent, manageable
Enables fact-based decision making
Provides a platform for profitable growth
Aligns organizational and process goals
Helps establish customer focus
Establishes a common language
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen BeltWhat Is Sigma?What Is Sigma?
Sigma is the scale that compares the output of a process to customer or design specifications.
70 80 90 95 100
FR
EQ
UE
NC
Y
Dimension
Getting better requires reducing the variation andGetting better requires reducing the variation andmoving the average away from the spec limit.moving the average away from the spec limit.
Getting better requires reducing the variation andGetting better requires reducing the variation andmoving the average away from the spec limit.moving the average away from the spec limit.
70 80 90 95 100
FR
EQ
UE
NC
Y
Dimension
Customerspec
Customerspec
Six SigmaGreen BeltSigma AdvantagesSigma Advantages
Which process is performing best?
PROCESS PERFORMANCE
Call servicing 32 seconds vs goal of 35
Manufacturing Cable 98% defect free
Accounts Receivable 33 days average aging vs goal of 40
Customer Service 82% rated 4 or 5 on responsiveness
The Sigma Scale provides a common metric for comparison.The Sigma Scale provides a common metric for comparison.The Sigma Scale provides a common metric for comparison.The Sigma Scale provides a common metric for comparison.
Six SigmaGreen Belt
Percent
93% 3.0
98% 3.5
99% 4.0
99.87% 4.5
99.9997% 6.0
DPMODPMO
66,800
22,700
6,210
1,350
3.4
Sigma AdvantagesSigma Advantages
99% seems outstanding; but 6,210 DPMO reveals 99% seems outstanding; but 6,210 DPMO reveals significant room for improvement. significant room for improvement.
99% seems outstanding; but 6,210 DPMO reveals 99% seems outstanding; but 6,210 DPMO reveals significant room for improvement. significant room for improvement.
Six SigmaGreen BeltCalculating the “Sigma Level” Calculating the “Sigma Level”
“Counting Defects” Approach: A packaging process is required to put at least 5 kg. of fertilizer in each bag.
In addition, the fill date must be stamped on the bag. Last weeks performance:
� Bags produced (units) – 10,000
� Under-filled bags – 62
� Fill dates missing – 21
� Number of defect opportunities - 2 Sigma Calculation:
415010000,102
2162
10..
6
6
DPMO
unitsnooppsno
defectsDPMO
From Sigma Table:
Sigma Level ~ 4.1
Six SigmaGreen BeltSigma Conversion TableSigma Conversion Table
Long-Term Process Yield (%)
Short-Term Sigma
DPMO
6.68 0 933,193
8.08 0.1 919,243
9.68 0.2 903,199
11.51 0.3 884,930
13.57 0.4 864,334
15.87 0.5 841,345
18.41 0.6 815,940
21.19 0.7 788,145
24.20 0.8 758,036
27.43 0.9 725,747
30.85 1 691,462
34.46 1.1 655,422
38.21 1.2 617,911
42.07 1.3 579,260
46.02 1.4 539,828
50.00 1.5 500,000
53.98 1.6 460,172
57.93 1.7 420,740
61.79 1.8 382,089
65.54 1.9 344,578
69.15 2 308,538
72.57 2.1 274,253
75.80 2.2 241,964
78.81 2.3 211,855
81.59 2.4 184,060
84.13 2.5 158,655
86.43 2.6 135,666
88.49 2.7 115,070
90.32 2.8 96,801
91.92 2.9 80,757
93.32 3 66,807
94.52 3.1 54,799
95.54 3.2 44,565
96.41 3.3 35,930
97.13 3.4 28,716
97.73 3.5 22,750
98.21 3.6 17,864
98.61 3.7 13,903
98.93 3.8 10,724
99.18 3.9 8,198
99.38 4 6,210
99.53 4.1 4,661
99.65 4.2 3,467
99.74 4.3 2,555
99.81 4.4 1,866
99.87 4.5 1,350
99.90 4.6 968
99.93 4.7 687
99.95 4.8 483
99.97 4.9 337
99.98 5 233
99.98 5.1 159
99.989 5.2 108
99.9927 5.3 72
99.9951 5.4 48
99.9968 5.5 32
99.9979 5.6 21
99.99866 5.7 13
99.99914 5.8 8.5
99.99946 5.9 5.4
99.99966 6 3.4
Six SigmaGreen BeltCalculating the “Sigma Level” Calculating the “Sigma Level”
When Process Data is Continuous: A packaging process is required to put at least 5 kg. of fertilizer in each bag. Last weeks performance:
� Bags produced (units) – 10,000
� Mean Fill Weight: 5.1 kg.
� Standard Deviation of Fill Weight: 0.03 kg. Sigma Calculation:
33.303.0
0.51.5
s
LSLXZ
“Short-Term Sigma Level
Six SigmaGreen Belt
PRACTICALPRACTICALPROBLEMPROBLEM
PRACTICALPRACTICALSOLUTIONSOLUTION
In some cases, effective . . . But can result in fire fighting and in In some cases, effective . . . But can result in fire fighting and in recurring problems.recurring problems.
In some cases, effective . . . But can result in fire fighting and in In some cases, effective . . . But can result in fire fighting and in recurring problems.recurring problems.
NEXT PROBLEMNEXT PROBLEM
Attacking Problems—Pre-Six SigmaAttacking Problems—Pre-Six Sigma
Six SigmaGreen BeltThe Six Sigma Way to Attack ProblemsThe Six Sigma Way to Attack Problems
NEXT PROBLEMNEXT PROBLEMNEXT PROBLEMNEXT PROBLEM
STATISTICALSTATISTICALSOLUTIONSOLUTION AnalyzeAnalyze
PRACTICALPRACTICALSOLUTIONSOLUTION
IdentifyIdentify
PRACTICALPRACTICALPROBLEMPROBLEMDefineDefine STATISTICALSTATISTICAL
PROBLEMPROBLEM MeasureMeasure
ControlControl
What Factors Drive Performance?
How Can We Prevent Problem Reoccurrence?
What Factors Drive Performance?
How Can We Prevent Problem Reoccurrence?
ExecuteExecute
Six SigmaGreen BeltThe Power of the DMAIEC . . .The Power of the DMAIEC . . .
Common language and synergy Common language and synergy of employing a standard of employing a standard improvement approachimprovement approach
Common language and synergy Common language and synergy of employing a standard of employing a standard improvement approachimprovement approach
• DoE• Regression• ANOVA• t-tests• Process Analysis
Analyze
• Charter• VOC• SIPOC• CE Matrix
Define• Data Collection Plan• Gage R&R• Control Chart• Capability Analysis
Measure
• Select Solutions• Risk Analysis
Improve
• QC Chart• Documentation• Monitoring
ControlNot just an assortment of tools, but what to do at Not just an assortment of tools, but what to do at each step of the improvement process. each step of the improvement process.
Not just an assortment of tools, but what to do at Not just an assortment of tools, but what to do at each step of the improvement process. each step of the improvement process.
• Planning • Piloting• Planning• Implementation
Execute
Six SigmaGreen BeltThe DMAIEC Way to Attack ProblemsThe DMAIEC Way to Attack Problems
PRACTICALPRACTICALPROBLEMPROBLEM
DEFINE:DEFINE:We are not consistently achieving “Ready for Control” (Y). We are not consistently achieving “Ready for Control” (Y).
STATISTICALSTATISTICALPROBLEMPROBLEM
MEASURE:MEASURE:There was a lot of variation in “Y” - poor performance (RFC = There was a lot of variation in “Y” - poor performance (RFC = 35%, 1.135%, 1.1). Determined RFC was a function of (1) boiler tube ). Determined RFC was a function of (1) boiler tube failures, (2) excessive cooldown (previous shutdown), (3) failures, (2) excessive cooldown (previous shutdown), (3) turbine first-stage metal temperature control, and (4) turbine first-stage metal temperature control, and (4) operator errors. The boiler tube failures and temperature operator errors. The boiler tube failures and temperature control were major contributorscontrol were major contributors
STATISTICALSTATISTICALSOLUTIONSOLUTION
ANALYZE:ANALYZE:Pareto Analysis & Weibull Analysis of boiler tube failures Pareto Analysis & Weibull Analysis of boiler tube failures revealed inadequate water/steam flow in the ends of the waterwall revealed inadequate water/steam flow in the ends of the waterwall tubesheettubesheet
PRACTICALPRACTICALSOLUTIONSOLUTION
IDENTIFY/EXECUTE AND CONTROL:IDENTIFY/EXECUTE AND CONTROL:Design changes improving flow distribution were implemented Design changes improving flow distribution were implemented and process is currently achieving RFC 91% of the time (2.7and process is currently achieving RFC 91% of the time (2.7) ) (other countermeasures also contributing).(other countermeasures also contributing).
Six SigmaGreen BeltDesign For Six Sigma (DFSS)…What is it??Design For Six Sigma (DFSS)…What is it??
A process - a more structured approach to design A tool set An enhancement to our current design process A tool for assessing and mitigating risk Teamwork Customer focused A culture change
“…a continuation of the six sigma tool set being applied specifically to process, product, or service design.”
Six SigmaGreen BeltDFSS – “50,000 foot” ViewDFSS – “50,000 foot” View
• Launch The Project
Define Outcomes
Scope Project
Identify Stakeholders
Select Team
Determine Project Approach
Create Project Plan
Define Project Controls
• Identify Customers
Define State of Current Customer Knowledge
Develop & Implement Customer Research Plan
Translate Customer Needs to Product/ Service CTQ’s
Specify Targets, Tolerance Limits & Sigma Targets
• Develop Product/ Service Necessary Functions
Develop Conceptual Product/ Service Designs
Develop High-Level Production Processes
Predict Capability & Evaluate Gaps
• Develop Detailed Product & Service Designs
Develop Detailed Production Processes
Refine Capability & Gap Evaluation, Perform Tradeoffs
Develop Process Control & Validation Plans
• Build Pilot Processes
Validate Pilot Readiness
Perform Pilot Testing
Analyze Gaps, Determine Root Causes
Evaluate Scale-up Potential
Develop Implementation & Transition Plans
• Build Full-Scale Processes, Train Staff
Perform Start-up Testing
Analyze Gaps, Determine Root Causes
Transition to Process Owners
Evaluate & Close Design Project
DefineDefine MeasureMeasure Explore Explore Design Design Validate Validate Implement Implement
- Design Review
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen BeltSix Sigma’s Broad ApplicationSix Sigma’s Broad Application
Sigma often reveals that less than 10% of total service process time is devoted to value-added work.
Measuring the “soft stuff” becomes not only possible but profitable.
� Quality of Deal teams. VOC says experience in industry and size of deal were the decisive factors in which firm to engage for an IPO. Quantified & easily measured.
� Quality of Communications in a leasing business. Do you notify me of changes in schedule, do I have a designated rep, do you return calls, emails etc within 8 hours? Quantified & easily measured.
� Quality of Customer Contact. “10, 5, first and last” teller measures. Quantified & easily measured
• J&J over $1 Billion in 2 years
• GE Capital over $1 Billion in value in 1996.
• JP Morgan created $510 Million in value in year one
• AIG found $38 million in revenue from one of first nine projects
SixSigma Results
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen BeltSix Sigma ChallengesSix Sigma Challenges
New (?) Ways of Thinking... Customer Thinking (customer specs) Process Thinking (leading indicators) Statistical Thinking (variation) Causal Thinking [y = (x1, x2, x3 … xn)]
Experimental Thinking (data-driven hypothesis testing) Control Thinking Stretch Thinking Adopting Common language/way of thinking about problems Accountability Thinking
The real Six Sigma advantage…The real Six Sigma advantage…the transformation of the culture.the transformation of the culture.The real Six Sigma advantage…The real Six Sigma advantage…
the transformation of the culture.the transformation of the culture.
Six SigmaGreen Belt
What is Six Sigma?What is Six Sigma?• What is it?What is it?
• How does it work?How does it work?
• What are the Benefits?What are the Benefits?
• What are the Main Challenges?What are the Main Challenges?
• What will it take?What will it take?
Six SigmaGreen Belt
“Senior leadership, especially Jack Welch, provided unyielding commitment to get the initiative going and ensure its continued success. This will not be easy for other companies to copy.”
Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE,” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35-44.
General Electric – The Benchmark!General Electric – The Benchmark!
Six SigmaGreen Belt
“Six Sigma was directed toward specific, tangible objectives, including financial objectives. The culture changed as a result of delivering tangible benefits, not because of a focus on the culture itself.”
Hoerl, Roger (2002), “An Inside Look at Six Sigma at GE,” Six Sigma Forum Magazine, Vol. 1, No. 3, May, pages 35-44.
General Electric – The Benchmark!General Electric – The Benchmark!
Six SigmaGreen BeltSix Sigma At 3MSix Sigma At 3M
500 Black Belts and Master Black Belts “for ever and ever” Each has a two-year assignment. All 28,000 salaried and technical people trained at least at
Green Belt level. Many hourly people selected also for Green Belt training.
Major goal is to have for first time common approach to problem solving, new product development, and measurement across entire company.
W. James McNerney, Jr. CEO, 3M Company, 25 June 2002
Six SigmaGreen BeltTwenty Key Lessons LearnedTwenty Key Lessons Learned
Gerald J. Hahn, “20 Key Lessons Learned,” Six Sigma Forum Magazine, May 2002, pages 28-34.
1. The time is right.2. The enthusiastic commitment of top management is
critical.3. Develop an infrastructure.4. Commit top people.5. Invest in relevant hands-on training.6. Select initial projects to build credibility quickly.7. Make it all pervasive, and involve everybody.8. Emphasize DFSS.9. Don’t forget design for reliability.10.Focus on the entire system.
Six SigmaGreen BeltTwenty Key Lessons LearnedTwenty Key Lessons Learned
Gerald J. Hahn, “20 Key Lessons Learned,” Six Sigma Forum Magazine, May 2002, pages 28-34.
11.Emphasize customer CTQs (critical to quality).12. Include commercial quality improvement.13.Recognize all savings.14.Customize to meet business needs.15.Consider the variability as well as the mean.16.Plan to get the right data.17.Beware of dogmatism.18.Avoid nonessential bureaucracy.19.Keep the tool box vital.20.Expect Six Sigma to become a more silent partner.
Six SigmaGreen Belt
Six Sigma
Methodologies
& Tools
Voice of
the Customer
Process
Management
Business
Dashboards
Shareholder Value
Customer Loyalty/Revenue Growth
Cost/Working Capital Reduction
The Essential Role of Leadership
Change
Management
Six SigmaGreen BeltThe Strategic Process-Management Approach The Strategic Process-Management Approach
1. Identify Core Business Processes and Strategic Opportunities
2. Define Process Goals that lead to Competitive Advantage
3. Determine the Process Measures needed to evaluate Process Performance
Identify & Prioritize Performance Gaps
Identify Priority Projects
Charter, Launch and Support Projects
Develop Process Goals & Dashboards
Validate Measurement & CausalRelationships
Assign and Build Accountabilities
5. Project Selection 4. Process Management
Six SigmaGreen BeltSix Sigma Companies - CharacteristicsSix Sigma Companies - Characteristics
Start with a prioritized list of customer and business requirements and specifications
Have a clear sense of process owners
Track performance over time
Analyze causes of process and output variation with statistical and process analysis tools
Think systematically about solutions and determine financial return (the ROI may not be there to move from 4.5 to 6.0 Sigma)
Standardize processes to hold the gains
Six Sigma is prioritized, disciplined problem solving to Six Sigma is prioritized, disciplined problem solving to deliver on-target performance with minimum variation.deliver on-target performance with minimum variation.Six Sigma is prioritized, disciplined problem solving to Six Sigma is prioritized, disciplined problem solving to deliver on-target performance with minimum variation.deliver on-target performance with minimum variation.
Six SigmaGreen BeltSix Sigma SummarySix Sigma Summary
Six Sigma IS’s: A Framework to Improve
Performance Applicable to Every Function
and Business About Business
Performance
Six Sigma NOT’s: The Solution for Everything Applicable Only to
Manufacturing It’s Just About Statistics
Six SigmaGreen Belt
1. Large Group Discussion: What are the Your Company Business Objectives/Opportunities?
2. As a small group, discuss how the Six Sigma Approach can help Your Company Achieve the Business Objectives.
3. What will Six Sigma not achieve, relative to the Objectives?
4. Summarize your team conclusions on a flipchart and be prepared to discuss your list with the large group.
Using 6 to Achieve Your Co’s Objectives