six sigma

Six Sigma Management

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

Why Six Sigma?

What is Sigma ?

Sigma A term used in statistics to represent

standard deviation, an indicator of the degree of variation in a set of a process

What is Six Sigma?

Six Sigma

A statistical concept that measures a process in terms of defects – at the six sigma level, there

3.4 defects per million opportunities

A philosophy and a goal : as perfect as practically possible

A methodology and a symbol of quality

Sigma Level

Sigma Level (Process

Capability)

Defects per Million Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

Administration

Field of Application

Six Sigma = 99,9997%Six Sigma Methods

Management

HRM IT

Production

Purchase

DesignService

Quality Department

Why Six Sigma?

Money

Customer Satisfaction

Growth

Quality

CompetitiveAdvantage

Employee Pride

• 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 Six Sigma.

Why Six Sigma?

Why Six Sigma?

Six Sigma is about practices that help you eliminate defects and always deliver products

and services that meet customer specifications

Cost of Poor Quality

What is cost of scrap?

What is cost of rework?

What is cost of excessive cycle times and delays?

Cost of Poor Quality

What is cost of business lost because customers are dissatisfied with your products or services?

What is cost of opportunities lost because you didn’t have time or the resources to take advantage of them?

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.

Companies Implemented Six Sigma

o 3Mo Air Canadao Amazon.Como Bank of Americao Boeingo Caterpillar, Inc.o Corningo Dello DHLo Eastman Kodak Companyo Fordo General Electric

o GlaxoSmithKlineo HSBC Groupo LG Groupo Motorolao Samsung Groupo Siemens AGo McGraw-Hill Companieso US Air Force, US Navy, US Marine Corps o Vodafoneo Whirlpoolo Xerox

Six Sigma Phases

Define Measure Analyze

Improve

Control

Six Sigma Phases

D M A I C

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

Improve

Control

Six Sigma Phases

Control future process performance

Improve the process by eliminating defects

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

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

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

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

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, Profit Growth• Close Project, Finalize Documentation• Communicate to Business, Celebrate

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.

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.


Team Charter :• Completed project management charter, including business case, problem

and goal statements, project scope, milestones, roles and responsibilities, communication plan.



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.


Deliverables :• Key measures identified, data collection planned and executed, process

variation displayed and communicated, performance baselined, sigma level calculated.



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.



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).


Deliverables :• Data and process analysis, root cause analysis, quantifying the

gap/opportunity.



Data and Process Analysis• Identify gaps between current performance and the goal performance.

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.



Quantifying the Gap/Opportunity• Determine the performance gap.• Display and communicate the gap/opportunity in financial terms.


Deliverables :• Generate (and test) possible solutions, select the best solutions, design

implementation plan.



Generating (and Testing) Possible Solutions• Possible solutions generated and tested.



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).



Designing Implementation Plan• Solution implementation plan established, including schedule/work

breakdown structure, resources, risk management plan, cost/budget, and control plan.

• Contingency plan established.


Deliverables :• Documented and implemented monitoring plan, standardized process,

documented procedures, response plan established and deployed, transfer of ownership (project closure).



Monitoring Plan• Control plan in place for sustaining improvements (short and long-term). Process Standardization• New process steps, standards, and documentation are ingrained into

normal operations.

Documented Procedures• Operating procedures are consistent.• Knowledge gained on process is shared and institutionalized.



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.

Tools and Roles for Six Sigma

• Creating flowcharts of the step in a process – operations, decision points, delays, movements, handoffs, rework,

loops, and controls or inspections. • A process map is illustrated description of how a process

work.

Tools for Six Sigma

Process Mapping

• DOE is a structured, organized method for determining the relationship between factors (Xs) affecting a process

and the output of that process (Y).

Tools for Six Sigma

Design of Experiments or

DOE

• A group of rows and columns, with one set of increments marked along the X (horizontal) axis and another set of

increments marked along the Y (vertical) axis. • The purpose of using XY matrix is to study and understand

the relationship between what 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

Technical Skills

Soft Skills

StatisticiansMaster Black

Belts

Black Belts

Quality Improvement Facilitators

BBMBB

• The goal of this tool is to ensure that your measurement system is statically confident – that it’s both accurate and

precise 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 or reproduce it among different people who take

the same measurement.

Tools for Six Sigma

Measurement System Analysis

• Process capability tool is the measure of a process being able to meet specification requirements and fulfill

customer CTQ needs on a long term basis.

Tools for Six Sigma

Process Capability Tool

• Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct. • It’s a compass that points you directly to the vital few

factors that are most affecting your process.

Tools for Six Sigma

Hypothesis Testing

• The manner in which a part or process can fail to meet a specification, creating a defect or non-conformance, and

the impact on the customer if that failure mode is not prevented or corrected.

Tools for Six Sigma

Failure Mode Effect Analysis

• A detailed assessment and guide for maintaining all the positive changes you, your black belt, and the project

team have made. • It ensures that all your analysis and efforts stay in effect

and that you have information at your disposal to prevent backsliding or a return to less than optimal performance

standard.

Tools for Six Sigma

Control Plan

Champions Are responsible for the Six Sigma implementation across the organization in an integrated 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

Black Belts Operate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily 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.


Master Black Belts

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.


Green Belts

Six Sigma Do’s

• 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

Six Sigma Do’s

• 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

Recommended Further Readings:

1. Greg Brue, Six Sigma for Managers, McGraw Hill

2. George Eckes, Six Sigma for Everyone, John Wiley and Sons

Thank you...!!!!

six sigma

Business

sigma o

sigma management

sigma baseline

sigma phases measure

sigma phases d

o air canada o amazon

process owner

statistical process