Six Sigma Kevin Curry TQM December 6, 2007

Six Sigma is a proven disciplined approach for improving measurable results Six Sigma is a proven disciplined approach for improving measurable results Sigma is a Greek letter used to designate standard deviation, which is a measure of variation within a process Sigma is a Greek letter used to designate standard deviation, which is a measure of variation within a process Teaches your employees how to improve the way do business, scientifically and fundamentally Teaches your employees how to improve the way do business, scientifically and fundamentally Originally formulated in 1986 by Bill Smith Originally formulated in 1986 by Bill Smith

The higher the sigma value, the fewer defects you have, six being virtually perfect The higher the sigma value, the fewer defects you have, six being virtually perfect One Sigma: you are making a mistake 700,000 times out of one million One Sigma: you are making a mistake 700,000 times out of one million Six Sigma: you are making 3.4 mistakes per one million attempts Six Sigma: you are making 3.4 mistakes per one million attempts

Six Sigma has two keys methodologies: Six Sigma has two keys methodologies: DMAIC DMAIC DMADV DMADV Both were inspired by W. Edward Deming’s Plan- Do-Check-Act cycle Both were inspired by W. Edward Deming’s Plan- Do-Check-Act cycle

DMAIC Broken down into 5 steps: Broken down into 5 steps: 1. Define 1. Define 2. Measure 2. Measure 3. Analyze 3. Analyze 4. Improve 4. Improve 5. Control 5. Control

DMADV Also broken down into 5 steps: Also broken down into 5 steps: 1. Define 1. Define 2. Measure 2. Measure 3. Analyze 3. Analyze 4. Design 4. Design 5. Verify 5. Verify

Six Sigma uses martial arts ranking terminology to develop a hierarchy Six Sigma uses martial arts ranking terminology to develop a hierarchy Executive Leadership Executive Leadership Champions Champions Master Black Belts Master Black Belts Experts Experts Black Belts Black Belts Green Belts Green Belts Yellow Belts Yellow Belts

Executive Leadership – CEO and top management Executive Leadership – CEO and top management Champions – responsible for setting up a vision for Six Sigma implementation Champions – responsible for setting up a vision for Six Sigma implementation Master Black Belts – in-house expert coaches Master Black Belts – in-house expert coaches Experts – work across company boundaries improving services, processes, and products for their suppliers and customers Experts – work across company boundaries improving services, processes, and products for their suppliers and customers Black Belts – work directly under Master Black Belts & devote 100% of their time to Six Sigma Black Belts – work directly under Master Black Belts & devote 100% of their time to Six Sigma Green Belts – Responsible for Six Sigma implementation along with other job duties Green Belts – Responsible for Six Sigma implementation along with other job duties Yellow Belts – have been trained in Six Sigma techniques but are not expected to actively engage in quality improvement activities Yellow Belts – have been trained in Six Sigma techniques but are not expected to actively engage in quality improvement activities

Who uses Six Sigma? Bank of America Bank of America Caterpillar Caterpillar Merrill Lynch Merrill Lynch GE GE