Six sigma

Orientation

© All Rights Reserved TreQna 2005

 expectatio
ns •What is Quality?
•Know Six Sigma
•Awareness with respect to
origin and history of Six
Sigma.
•The utility and benefits
•Introduction to Six Sigma as
methodology
•The Six Sigma organization

© All Rights Reserved TreQna 2005

 What is Quality?

© All Rights Reserved TreQna 2005

Evolution of Quality

Reactive Quality
Proactive Quality
Quality Checks (QC) - Taking the
“Create process that will produce
defectives out of what is produced
less or no defects”

Historically Contemporary

© All Rights Reserved TreQna 2005

Segments in Quality

Methodologies Standards Capability Models

•Six Sigma •ISO 9000, ISO •eSCM

•Lean 14000 etc. •CMM
•COPC •CMMI
•Malcolm Baldrige

Sharing
Scientific way Best practices
Benchmarked
to improve to build
practices-
capability? capability
“Standardizing”

© All Rights Reserved TreQna 2005

What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at
high standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique

Six Sigma is not:

• A standard
• A certification
• Another metric like percentage

© All Rights Reserved TreQna 2005

Two Meanings of Sigma

σ
• The term “sigma” is used to designate the distribution or spread
about the mean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that

indicates how well that process is performing. The higher the sigma
capability, the better. Sigma capability measures the capability of
the process to produce defect-free outputs. A defect is anything that
results in customer dissatisfaction.

© All Rights Reserved TreQna 2005

Path to Six Sigma

6 Sigma 3.4 Defects

Sigma levels and

Defects per million
opportunities
(DPMO)
5 Sigma 233 Defects

4 Sigma 6,210 Defects

3 Sigma 66,807 Defects

2 Sigma 308,537 Defects

© All Rights Reserved TreQna 2005

What it means to be @ Six Sigma
Is 99% (3.8σ) good enough? 99.99966% Good – At 6σ

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15 One minute of unsafe drinking

minutes each day water every seven months

5,000 incorrect surgical 1.7 incorrect surgical operations

operations per week per week

2 short or long landings at most One short or long landing at major

major airports daily airports every five years

200,000 wrong drug prescriptions 68 wrong drug prescriptions each

each year year

Example quoted from GE Book of Knowledge - copyright GE

© All Rights Reserved TreQna 2005

Origin of Six Sigma

Motorola
the company that invented Six Sigma

• The term “Six Sigma” was coined by Bill Smith, an engineer with
Motorola

• Late 1970s - Motorola started experimenting with problem solving

through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

© All Rights Reserved TreQna 2005

The Growth of Six Sigma

GE
the company that perfected Six Sigma

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for

management promotions

• 2002/03 - Green Belt certification became the criteria for promotion

to management roles

© All Rights Reserved TreQna 2005

The Growth of Six Sigma

The GE model for process improvements

Define Measure Analyze Improve Control

Combination of change management & statistical

analysis

© All Rights Reserved TreQna 2005

The Growth of Six Sigma

© All Rights Reserved TreQna 2005

Three Methodologies of Six Sigma

BPMS
Business Process Management System

DMAIC
Six Sigma Improvement Methodology

DMADOV
Creating new process which will perform @ Six
Sigma

© All Rights Reserved TreQna 2005

 BPMS
Business Process Management
System

© All Rights Reserved TreQna 2005

The Need of BPMS

• To understand the process; it’s mission, flow and scope

• To know the customers and their expectations

• To identify, monitor and improve correct performance measures for

the process

© All Rights Reserved TreQna 2005

The Methodology

Map process MSA, DCP, Service

steps, indicators excellence
identify and monitors and process
input/ output excellence
measures
Identify
Define Process Develop
Map Process VOC and VOP Build PMS Improvement
Mission Dashboards
Opportunities

Define Identify Visual

purpose of Critical to representatio
the process, Quality and n of
its goal and Critical to performance
its process
boundaries
The DMAIC
cycle
© All Rights Reserved TreQna 2005
 DMAIC
Six Sigma Improvement
Methodology

© All Rights Reserved TreQna 2005

What is DMAIC ?

• A logical and structured approach to problem solving and process

improvement

• An iterative process (continuous improvement)

• A quality tool with focus on change management

E = Q x A
Effectiveness Quality Acceptance
Improvement

© All Rights Reserved TreQna 2005

The Approach

Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution

© All Rights Reserved TreQna 2005

Methodology

D Identify and state the practical problem

Define

Validate the practical problem by collecting data

M
Measure
Convert the practical problem to a statistical one,
A define statistical goal and identify potential statistical
Analyze solution

I Confirm and test the statistical solution

Improve

C Convert the statistical solution to a practical solution

Control

© All Rights Reserved TreQna 2005

Define

D VoC - Who wants the project and why ?

Define

M The scope of project / improvement

Measure

A Key team members / resources for the project

Analyze

I
Critical milestones and stakeholder review

D
Improve

C
Control Budget allocation

© All Rights Reserved TreQna 2005

Measure

D Ensure measurement system reliability

Define
- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same
M way ?
Measure

A Prepare data collection plan

Analyze - How many data points do you need to collect ?
- How many days do you need to collect data for ?
I - What is the sampling strategy ?
Improve - Who will collect data and how will data get stored ?

M
- What could the potential drivers of variation be ?

C
Control Collect data

© All Rights Reserved TreQna 2005

Analyze

D Understand statistical problem

Define

M
Measure Baseline current process capability

A
Analyze
Define statistical improvement goal
I
Improve

C
Control
A
Identify drivers of variation (significant factors)

© All Rights Reserved TreQna 2005

Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)

• A brainstorming tool that helps define and display major causes, sub
causes and root causes that influence a process

• Visualize the potential relationship between causes which may be

creating problems or defects

Primary
Cause Secondary
Cause

Backbon Proble

A
e m

Root
Cause
© All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Control – Impact Matrix

• A visual tool that helps in separating the vital few from the trivial many

Control

Vital Few Cost Ineffective

High Control – High
Low Control – High Impact
Impact
Impact

Cost Ineffective
High Control – Low Impact
Trivial Many
Low Control – Low ImpactA
© All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Pareto Chart

• Pareto principle states that disproportionately large percentage of

defects are caused due to relatively fewer factors (generally, 80%
defects are caused by 20% factors)
35 100%
30
80%
25
20 60%
15 40%
10
20%
5

A
0 0%
L K A F B C G R D

Frequency Cumulative Frequency

© All Rights Reserved TreQna 2005

Analyze – Identify Drivers of Variation
Process Map Analysis

• Visually highlights hand off points / working relationships between

people, processes and organizations

• Helps identify rework loops and non value add steps

Customer Process A Process B Vendor

A
© All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Hypothesis Testing

• A statistical tool used to validate if two samples are different or

whether a sample belongs to a given population

Null Hypothesis (Ho) is the statement of the status quo

Alternate Hypothesis (Ha) is the statement of difference

Homogeneity of One way ANOVA

Variance Moods Median

Chi-Square Regression
A
© All Rights Reserved TreQna 2005
Improve

D Map improved process

Define

M
Measure

Pilot solution
A
Analyze

I
Improve

C
Control
I
Identify operating tolerance on significant factors

© All Rights Reserved TreQna 2005

Control

D
Ensure measurement system reliability for
Define significant factors
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?
M
Measure
Improved process capability
A
Analyze

I
Improve Sustenance Plan

C
Control
- Statistical Process Control
- Mistake Proofing
- Control Plan
C
© All Rights Reserved TreQna 2005
Control – Sustenance Plan
Control Plan

• Have the new operating procedures and standards been

documented ?

• What Statistical Process Control (SPC) tools will be used to monitor

the process performance ?

• Who will review the performance of the output variable and

significant factors on closure of the project and how frequently ?

• What is the corrective action or reaction plan if any of the factors

were to be out of control ?

C
© All Rights Reserved TreQna 2005
 Six Sigma Organization

© All Rights Reserved TreQna 2005

Six Sigma - Three Dimensions
Customer Process A Process B Vendor

Define Measur Analyze Improve Control

e

Driven
by
custom
er
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt
••••••••••
Upper/Lower
specification
• •
••• •
•
•••••••
••••••
limits
Organization Tools
•
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5

Process variation 0 0%

Enabled by quality
L K A F B C G R D

Frequency Cumulative Frequency

team.
Pareto Chart

© All Rights Reserved TreQna 2005

The Quality Team

Master Black Belt - Thought Leadership

- Expert on Six Sigma
- Mentor Green and Black Belts

- Backbone of Six Sigma Org

Black Belt Black Belt - Mentor Green Belts
- Full time resource
- Deployed to complex or
“high risk” projects
Green Belt
Green Belt
- Part time or full time
resource
Green Belt
- Deployed to less complex
projects in areas of functional
expertise
© All Rights Reserved TreQna 2005
Six Sigma – Career Option!
• Basic - Six Sigma Awareness
• Green Belt Projects
Green Belt (GB) • Participate in Black Belt Projects
• Assist business functions with day to day
activities
• Mentor/Train Green Belts
• Black Belt Projects
Black Belt (BB) • Change Agents
• Work along with the business owners

• Mentor/ Train Black Belts

• Run Strategic projects
Master Black Belt (MBB) • More Strategic than tactical role

Highly paid!
Work like a Consultant!
Huge demand in the industry!

Overall…A high flying Career!!

© All Rights Reserved TreQna 2005

 Thank You

© All Rights Reserved TreQna 2005