1 Russ Albright, Director

2 Overview Vision and motivation What is Six Sigma?

3 External Six Sigma Results CompanyAnnual Savings General Electric$2.0+ billion JP Morgan Chase*$1.5 billion (*since inception in 1998) Texas Instruments$600 million Johnson & Johnson$500 million Honeywell$600 million Sun has launched a Six Sigma program “SunSigma” focused on improving product quality and reliability (software & hardware)

4 What Is Six Sigma? Six Sigma is a project based problem solving approach that focuses on reducing/preventing defects resulting in increased customer satisfaction and lower costs. Key components are: Project Selection People Disciplined project methodology  DMAIC- Problem solving  DMADI- Product design and Prevention Data analysis and collection tools

5 Project Selection Attributes of a good Six Sigma project: Strong tie to business deliverables  Enhances customer satisfaction and loyalty  Strategic importance  Impact on profit (hard and soft benefits) Results are visible or easily link to a key executive metric  Meaningful results within 6 months (DMAIC only)  Goals can be quantified and measured Project is feasible  Team can commit time to project  Potential solutions are relatively low cost

6 Six Sigma People Executive sponsorship  Clear link between project and critical business goal  Executive is visible and supportive of team efforts  Executive breaks down barriers to improvement Dedicated project manager  Black Belt for large or difficult projects, or projects that require statistical analysis  Green Belt for a smaller project within her/his team Virtual team  Represents the people directly impacted by the problem and will be involved in the improvements  Cross-discipline and cross-group as needed  Data driven decisions greatly enhance cross-group work

7 Six Sigma Project Methodology Control Define Measure Analyze Improve  Lock in the results (control plan) Mistake proofing Control points Monitoring Plan Positive hand off of control plan  Financial impact of the project  Project selection  Project charter  Critical to Customer (CTQ) needs  High level process map  Key output variables (metrics or Y’s)  Possible causes of defects (X’s)  Data collection and presentation plan  Current Performance  Internal/ external benchmarking  Key causes (vital few) of defects (X’s)  Improvement strategy  Prioritize solutions  Tested & measured solutions  Final solutions Project Phases and Deliverables

8 Design for Six Sigma Methodology Implement Define Measure Analyze Design  Implement product/ service  Validated product/ service  Project closure  Final control plan  Product opportunity  Project charter/goals  Project plan  Secondary and primary customer research  Critical customer requirements  Key Product/Service requirements  Product performance  Competitive benchmarks  Conceptual design(s)  Risk assessment  Customer  Implementation  High level implementation process  Functional design  Resource plan  Simulation  Design Scorecard TDPU  Control plan  Test plan  Risk mitigation Project Phases and Deliverables

9 Six Sigma Toolbox Green Belt tools Benchmarking Brainstorming Cause- Effect diagrams Critical to Customer Tree Data Collection Plan FMEA( Failure modes and effect) Improvement strategy Interviews/ Precision questioning Prioritization matrices Project Charter Project plan template SIPOC- Process flow Surveys Workflow mapping Black Belt tools Activity analysis Affinity diagram Data Presentation  Histogram  Box Plot  Line Graphs  Run Charts  Control Charts  Pareto Chart  Bar Graphs  Stacked Bar Graphs  Pie Charts Design of experiments  Full factorial  Reduced fractions  Screening designs Hypothesis tests  t- test  Paired t-test  ANOVA  Chi Square Process sigma Kano modeling Quality Functional Deployment(QFD) Regression Rolled throughput and final yield Sampling Stratification

10 Project Best Practices Projects impact the business scorecard, key initiative, lowlights Executive sponsor status updates at the end of each project phase Weekly updates with Business Process owner and team Dedicated resources (Black/Greenbelts) to manage the project Detailed project plans developed and communicated to team and sponsors Project status on a website to share learning