Six Sigma Defined:Six Sigma Defined:

Quality management program developed by Motorola in Quality management program developed by Motorola in the 1980s.the 1980s.

Management philosophy focused on business process Management philosophy focused on business process improvements to:improvements to:• Eliminate waste, rework, and mistakesEliminate waste, rework, and mistakes• Increase customer satisfactionIncrease customer satisfaction• Increase profitability and competitivenessIncrease profitability and competitiveness

Statistical measure to objectively evaluate processes.Statistical measure to objectively evaluate processes.

GOAL: Reach Six Sigma QualityGOAL: Reach Six Sigma Quality

The Statistical Tools of Six The Statistical Tools of Six Sigma:Sigma:

The Statistical Tools of Six The Statistical Tools of Six Sigma:Sigma:

The Statistical Tools of Six The Statistical Tools of Six SigmaSigma

Another way to look at it:Another way to look at it:

1.1. Clearly define the customer’s explicit Clearly define the customer’s explicit requirements--CTQrequirements--CTQ

2.2. Count the number of defects that occur.Count the number of defects that occur.

3.3. Determine the yield-- percentage of items Determine the yield-- percentage of items without defects.without defects.

4.4. Use the conversion chart to determine DPMO Use the conversion chart to determine DPMO and Sigma.and Sigma.

Sigma Conversion Table:Sigma Conversion Table:

If your yield is:If your yield is: Your DPMO is:Your DPMO is: Your Sigma is:Your Sigma is:

30.9%30.9% 690,000690,000 1.01.0

62.9%62.9% 308,000308,000 2.02.0

93.393.3 66,80066,800 3.03.0

99.499.4 6,2106,210 4.04.0

99.9899.98 320320 5.05.0

99.999799.9997 3.43.4 6.06.0

People Power:People Power:

Executive Leader

Champion/Sponsor

Master Black Belt

Black Belt

Green Belt Green Belt Green Belt

Executive Leader Roles:Executive Leader Roles:

• High Level Executive committed to Six High Level Executive committed to Six Sigma SuccessSigma Success

• Knowledgeable in Six Sigma ProcessKnowledgeable in Six Sigma Process• Assign key individuals to the Assign key individuals to the

Champion/Sponsor Position.Champion/Sponsor Position.

Champion/Sponsor Roles:Champion/Sponsor Roles:

• High Level Executive High Level Executive • Oversee the Black Belt positionsOversee the Black Belt positions• Provide resources to complete the jobProvide resources to complete the job• Assist Black Belts to select projectsAssist Black Belts to select projects• Benchmark with other organizationsBenchmark with other organizations

Master Black Belt Roles:Master Black Belt Roles:

• Resource for the Black Belts-experts on Resource for the Black Belts-experts on the mathematical theory of statistical the mathematical theory of statistical methodsmethods

• Experts on the Six Sigma processExperts on the Six Sigma process• Works with the Champion/Sponsor to Works with the Champion/Sponsor to

select projects.select projects.

Black Belt Roles:Black Belt Roles:

• Leaders of the Six Sigma processLeaders of the Six Sigma process• Management and technical skillsManagement and technical skills• Bring the project vision to realityBring the project vision to reality• Solely dedicated to Six Sigma ProgramSolely dedicated to Six Sigma Program• Oversee Green BeltsOversee Green Belts

Green Belt Roles:Green Belt Roles:

• Project LeadersProject Leaders• Support the Black Belt to complete the Support the Black Belt to complete the

projectproject

Process Power:Process Power:DMAIC—Five Step ProcessDMAIC—Five Step Process

Define

Measure

AnalyzeImprove

Control

Define:Define:

• Clearly identify the problemClearly identify the problem• Utilize numerical definitionUtilize numerical definition• Focus on process that creates the Focus on process that creates the

problem not on the outcomeproblem not on the outcome

Measure:Measure:

• BenchmarkBenchmark• Capability of a given processCapability of a given process• Focus on CTQFocus on CTQ

Analyze:Analyze:

• Current process resultsCurrent process results• What is possible compared to what the What is possible compared to what the

competition is doingcompetition is doing

Improve:Improve:

• Implement changesImplement changes• Be creative to find new ways to do Be creative to find new ways to do

things better, cheaper, or fasterthings better, cheaper, or faster

Corporations Practicing Six Corporations Practicing Six Sigma:Sigma:

• General ElectricGeneral Electric• MotorolaMotorola• Allied SignalAllied Signal• SonySony• PolaroidPolaroid

Specific Success Story: GESpecific Success Story: GE

• 1995 Operating margin—13.5%1995 Operating margin—13.5%• 1998 Operating margin—16.7%1998 Operating margin—16.7%• Result: $600million bonusResult: $600million bonus

““The most important initiative GE The most important initiative GE has ever undertaken”has ever undertaken”

--Jack Welch, CEO General Electric--Jack Welch, CEO General Electric

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USAGE OF SIX SIGMAUSAGE OF SIX SIGMA

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COMPANIES COMPANIES USING USING

• MotorolaMotorola• EricssonEricsson• General ElectricGeneral Electric• SonySony• Ford Motor Co.Ford Motor Co.• CITI bankCITI bank