Transcript Slide 1
Six Sigma
By: Tim Bauman
April 2, 2007
Overview
What is Six Sigma?
Key Concepts
Methodologies
Roles
Examples of Six Sigma
Benefits
Criticisms
What is Six Sigma?
Improve customer satisfaction by producing
virtually free processes and products
To achieve Six Sigma a process must not
produce more than 3.4 defects per million
opportunities
6 standard deviations between the mean and
the nearest specification limit
Developed by Bill Smith at Motorola in 1986
as a way to standardize the way defects are
counted
Key Concepts
Critical to Quality: Attributes most important to
the customer
Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer sees and feels
Stable Operations: Ensuring consistent,
predictable processes to improve what the customer
sees and feels
Design for Six Sigma: Designing to meet
customer needs and process capability
Methodologies
DMAIC
Improvement system for existing processes
DMADV
Improvement system for developing new
processes or products
Methodologies: DMAIC
Define – “the project goals and deliverables
for both internal and external customers”
Measure – “the process to determine current
performance”
Analyze – “and determine the root cause(s)
of the defects”
Improve – “the process by eliminating
defects”
Control – “future process performance”
Methodologies: DMAIC
Define
Identify the Critical To Quality
characteristics
Create a map of the process to be
improved with defined and measurable,
deliverables, and goals
Tools: Benchmark, Baseline, Voice of the
Customer and Business, Quality Function
Deployment, Process Flow Map
Methodologies: DMAIC
Measure
Establish valid and reliable metrics to monitor the
progress of the project
Input, process, and output indicators are identified
Determine the impact of defects from each input
on the CTQs
Once reasons for input failure are determined,
preventative actions are put into place
Tools: Defect Metrics, Data Collection, Sampling
Techniques
Methodologies: DMAIC
Measure
Defects Per Million Opportunities
(DPMO) =
(Total Defects / Total
Opportunities) * 1,000,000
Defects (%) =
(Total Defects / Total
Opportunities)* 100%
Yield (%) =
100 - %Defects
Process Sigma (type this
formula into Excel):
=NORMSINV(1-(total defects /
total opportunities))+1.5
http://www.isixsigma.com/sixsigm
a/six_sigma_calculator.asp
Methodologies: DMAIC
Analyze
Identify the gap between existing
performance and desired performance
Root Cause Analysis – finding the causes of
defects
Process Improvement Scenarios
Tools: Cause and Effect diagrams,
Decision and Risk Analysis, Control Charts
Methodologies: DMAIC
Improve
Create new improvement solutions for each
root cause
Cost/Benefit Analysis
What happens if improvements are not made
or improvements take too long to implement
Process experimentation and simulation
Implement and adapt to these solutions
and the results from these changes
Methodologies: DMAIC
Control
A monitoring plan with proper change
management methods
Implement the lesson learned
Put tools in place to maintain process
improvement gains
Training
Document the project
New procedures and lessons learned are maintained and
give a solid example
Identify future Six Sigma improvement
opportunities
Methodologies: DMAIC
Extra Step: Synergize
Integrate and institutionalize the
improvements throughout the whole
organization
Create a learning organization
Multiply the gains achieved by Six Sigma
Methodologies: DMAIC
Checklists
http://www.americanheart.org/presenter.jht
ml?identifier=3039772
Methodologies: DMADV
First three steps are the same
Define – “the project goals and deliverables for both
internal and external customers”
Measure – “and determine customer needs and
specifications”
Analyze – “the process options to meet the customer
needs”
Design – “the process to meet the customer needs”
Verify – “the design performance and ability to meet
customer needs”
Methodologies: DMADV
Design
Specification Limits
Simulation model
Test Plan
Measurement and Control Plan
Methodologies: DMADV
Verify
Pilot runs
Training
Implementing the processes
Document the processes
Roles
Yellow Belt or Team Member
Professional who works on project
Awareness of Six Sigma, but no training
Roles
Green Belt
Part time professional
Receives direction from Black Belts
Works with a Black Belt’s project or leads
smaller projects
Two weeks of training in methods and
basic statistical tools
Roles
Black Belt
Full time professional
Team Leader on Six Sigma projects
Four to Five weeks of training in:
Methods
Statistical tools
Team skills
Roles
Master Black Belt
Expert in Six Sigma methods and tools
Mentors other belts on complex issues
Responsible for training others to the
Green and Black belt levels
Assists the Champion with deployment
Roles
Champion
Middle or Senior level executive who helps
a specific Six Sigma project
In charge of making sure resources are
available
Resolves cross-functional issues
Roles
Leader
Senior level executive responsible for
implementing Six Sigma throughout the
business
Sponsor
Senior executive in charge of the overall
Six Sigma Initiative
Examples of Six Sigma
Current average industry runs at 4
sigma
Domestic airline flights run at a rate
higher than 6 sigma
Non competitive companies typically run
at a sigma level of 2
Examples of Six Sigma
Companies currently using Six Sigma
Motorola
General Electric
Allied Signal
Citibank
Microsoft
Many others
Benefits
Save Money
Black Belts save companies approximately
$230,000 per project
General Electric has estimated benefits of
$10 billion in the first five years of its
implementation
Raise customer satisfaction
Benefits
Save lives
Health Care
Intensive care results from 53 minutes to 22
minutes
Reduce error rates for patient controlled pumps
to administer pain medication
Airplane Industry
Criticism
Cost of training at Motorola
Green Belt Certification: $2,950
Black Belt Certification: $12,950
Cost of infrastructure
Creating the roles and responsibilities
Criticism
Six Sigma does not always work
Need active leadership
Align with organizational strategy
Need aggressive performance tracking and
accountability for results
Green and Black belts need to be process oriented
and willing to learn and use statistical tools
Pay more attention to steps than the actual result
Sources
[1] Functional Methods. “DMADV (Define, Measure, Analyze,
Design, Verify) Roadmap.” 2004. Retrieved 25 March 2007
<http://www.functionalmethods.com/DMADV%20Roadmap.pdf
>.
[2] General Electric. “What is Six Sigma?” 2007. Retrieved 23
March 2007
<http://www.ge.com/en/company/companyinfo/quality/whatis.h
tm>.
[3] ISixSigma LLC. “Six Sigma – What is Six Sigma.” 2007.
Retrieved 24 March 2007
<http://www.isixsigma.com/sixsigma/six_sigma.asp>.
[4] Motorola, Inc. “Motorola Univerisity, Six Sigma in Action.”
2007. Retrieved 22 March 2007
<http://www.motorola.com/motorolauniversity.jsp>.
Sources
[5] Peterka, Peter. “The DMAIC Method in Six Sigma.” 25 October
2007. Retrieved 25 March 2007.
<http://www.buzzle.com/editorials/10-24-2005-79640.asp>.
[6] “Roles.” 2007. Retrieved 25 March 2007
<http://www.onesixsigma.com/node/2485>.
[7] Siviy, Jenannine. “Six Sigma.” 11 January 2007. Retrieved 22
March 2007
<http://www.sei.cmu.edu/str/descriptions/sigma6_body.html>.