10 six sigma

Kaizen and Six Sigma

Kaizen

Kaizen is...... a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership

Kaizen was created in Japan following World War II. The word Kaizen means "continuous improvement". It comes from the Chinese characters 改 ("kai") which means "change" or "to correct" and 善 ("zen") which means "good".

Kaizen (Continuous Improvement) Focus on gradual and continuous

improvement A whole business philosophy Importance of EVERYONE buying into

the concept and the vision

Six Sigma Methodology

Six Sigma relies heavily on advanced statistical methods that complement and reduce the process and product variations. It is a new way of doing business that would eliminate the existing defects efficiently and would prevent defects from occurring.

Coined by Motorola Engineer Bill Smith Now a major influence on production

methods and quality assurance Data and statistical driven approach to

eliminate defects in production Aims to improve processes and reduce

variations in quality Necessitates organisational change,

training and planning

What Is Six Sigma? 7

"Zero Defect" "Defect" – any product or service that

does not conform to the set standards or satisfaction of the customer.

Now, Six Sigma is a concept that tries to achieve a near zero defect with 3.4 defects in a million events.

Early adopters include Bank of America, Caterpillar, Honeywell International (previously known as Allied Signal), Raytheon, Merrill Lynch and General Electric.


What is Six Sigma? A methodology to improve a business process by

constantly reviewing, updating and re-tuning the existing process.

Six Sigma improves the process performance, decreases variation and maintains consistent quality of the process output. This leads to defect reduction and improvement in profits, employee morale, product quality and finally customer satisfaction.

Six Sigma Strives for perfection. It allows for only 3.4 defects per million opportunities for each product or service transaction.

Six Sigma relies heavily on statistical techniques to reduce defects and measure quality.


Evolution of Six Sigma Japan has been credited with the evolvement of

Quality Systems like TQM, Kanban, Kaizen, etc. Pioneered in the U.S. by Bill Smith at Motorola in

1986; originally used as a metric for measuring defects for improving quality; a methodology to reduce defect levels <3.4 Defects Per Million Opportunities (DPMO). Motorola has reported >US$17b savings as of 2006.

Early adopters include Bank of America, Caterpillar, Honeywell International (previously known as Allied Signal), Raytheon, Merrill Lynch and General Electric.

Six Sigma was originally centered around manufacturing improvements. The reason for this was knowledge of the statistical tools in the manufacturing functions and the ease with which we can quantify the benefits.


Six Sigma levels and Process The Greek letter for Sigma, , represents one

standard deviation from the normal or average. The higher the sigma level the better the quality level.

Levels of Sigma Performance


Three levels of Six Sigma: As a Metric As a Methodology As a Management system

Essentially, Six Sigma is all three at the same time.

is a registered service mark and trademark of Motorola, Inc.


1. As a Metric The term “Sigma” is often used as a

scale for levels of "goodness" or quality. Equates to 3.4 defects per one million

opportunities (DPMO). Six Sigma started as a defect reduction

effort in manufacturing and was then applied to other business processes for the same purpose.


2. As a Methodology A business improvement

methodology that focuses an organization on: Understanding and managing customer

requirements Aligning key business processes to

achieve those requirements Utilizing rigorous data analysis to

minimize variation in those processes Driving rapid and sustainable

improvement to business processes


The DMAIC model Motorola developed a five phase approach to the Six

Sigma Process called DMAIC which is a continuous process as the diagram shows until the highest level in the Six Sigma is achieved, i.e., 3.4 defects per million.


At the heart of the methodology is the DMAIC model for process improvement Define opportunity Measure performance Analyze opportunity Improve performance Control performance


3. As a Management system A top-down solution to help organizations:

Align their business strategy to critical improvement efforts

Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are

sustained Framework to prioritize resources for

projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.


Levels of Six Sigma Implementation1. Six Sigma Champion: Champions undergo five

days of training and are taught how to manage projects and act as advisors to various project teams.

2. Green Belts: They undergo two weeks of training that includes project-oriented tasks. They act as team members to the Six Sigma project team. Their cooperation and involvement is necessary for projects success.

3. Black belts: They receive four weeks of trainings and are directly involved in the implementation of Six Sigma Projects. They are the project leaders and go through in-depth training on Six Sigma approach and tools and work full time on the project.

4. Master Black Belts: These are the people who conduct Six Sigma Training and also have on the job training and experience

Some Six Sigma Tools


Quality Function Deployment QFD helps Six Sigma Black Belts drive

customer-focused development across the design process.

QFD is a system and set of procedures to identify, communicate, and prioritize customer requirements.

Did you know? With QFD, Six Sigma teams can more effectively focus on the activities that mean the most to the customer, beat the competition, and align with the mission of the organization.


Cause and Effect Matrix The C&E Matrix helps Six Sigma project

leaders facilitate team decision-making. The C&E Matrix is a tool that helps Six Sigma

teams select, prioritize, and analyze the data they collect over the course of a project to identify problems in that process.

Six Sigma teams typically use the C&E Matrix in the Measure phase of the DMAIC methodology.

The C&E Matrix is particularly great for obtaining team consensus on the potential relationships between factors that affect a process and the output of that process.


Failure Modes Effects Analysis FMEA helps Six Sigma teams to identify and

address weaknesses in a product or process, before they occur.

Before implementing new products, processes, or services, Six Sigma teams use FMEA to identify ways their new introductions might fail, and then to develop preventative measures targeted at the failure scenarios.

Did you know? An effective FMEA identifies corrective actions required to prevent failures from reaching the customer and will improve performance, quality, and reliability.


t-test The t-test helps Six Sigma teams validate

test results using small sample sizes. The t-test is used to determine the statistical

difference between two groups, not just a difference due to random chance. Six Sigma teams might use it to determine if a plan for a comparative analysis of patient blood pressures, before and after they receive a drug, is likely to provide reliable results.

Did you know? Guinness Brewery is the work environment that led to W.S. Gossett's creation of the t-test. While an executive at the brewery in Dublin, Gossett created the t-test to help select the best barley for Guinness beer.


Control Charts Six Sigma teams use Control Charts to

assess process stability. Control Charts are a simple but highly

effective tool for monitoring and improving process performance over time because they help Six Sigma teams to observe and analyze variation.

The three basic components of any control chart are a centerline, upper and lower statistically determined control limits, and performance data plotted over time.


Design of Experiments DOE helps Six Sigma Black Belts make the

most of valuable resources. DOE is a statistical technique that

encompasses the planning, design, data collection, analysis and interpretation strategy used by Six Sigma professionals.

Did you know? Six Sigma teams use DOE to determine the relationship between factors (Xs) affecting a process and the output of that process (Y).

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