σ Six Sigma: Process Perfection Customer Satisfaction through Error Elimination

What is Six Sigma? 6 –Arabic numeral –One more than 5 –One less than 7 σ –Greek letter –English equivalent is “s” –Symbolizes standard deviation in statistics

6σ Overview Leadership commitment Making decisions with Data Training and Cultural chage

Standard Deviation Review Degree of dispersion from mean value σ = Standard Deviation N = Population of sample x i = value in population x = numerical average

Standard Deviation in Industry Comparison of expected results vs. those that fail Number of defects / number of operations

Standard Deviation Table

6σ = Near Perfection!

Examples of σ Geico: 97% customer satisfaction ~ 4σ USPS: 95% 1 st class mail delivered on time ~ 3σ 6σ Can be applied to any industry, service, approval rating

History of 6σ Initially developed at Motorola in 1986 by Bill Smith to standardize counting defects Mikel Harry also analyzed outcome variations in company’s internal operations Different by not only recognizing deviations, but strategy to eliminate them.

GE’s 6σ implementation Began in 1995 across entire organization Saved $320 million in first 2 years, $1 billion by First, what it is not. It is not a secret society, a slogan or a cliché. SixSigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services. … Six Sigma has changed the DNA of GE — it is now the way we work — in everything we do and in every product we design.

Tactics of 6σ: DMAIC + “Tollgates”

DMAIC: Define 1.Charter designed Why the 6σ program is in place? 2.Customers needs are defined Need vs. requirements to fulfill need 3.High level map of process is created “A picture is worth a thousand words”

DMAIC: Measure – Design Data Collection Plan 1.What to Measure 2.Type of Measure output input 3.At least 1 process 3.Data type 1.Discrete 2.Continuous 4.Operational definition 5.Targets / Specs 6.Data collection forms 7.Sampling

DMAIC: Measure – Implementing Data Collection Plan  Baseline σ Determine unit, defect, opportunity –Unit = Value of process, input, or output –Defect = Something wrong with a unit Too large Too small Not equal to –Opportunity = Way to fix the defect

DMAIC: Measure – Implementing Data Collection Plan  Baseline σ Defects / Million opportunities = Number of Defects x 1,000,000 Number of Units x Number of Opportunities

DMAIC: Analysis – Data Analysis Discrete –Pareto Chart: Horizontal bar graph showing percentages of defect occurrences –Pie Chart

DMAIC: Analysis Continuous Data Analysis Major factors effecting process –Machines –Materials –Methods –Mother Nature –Measurement itself –People 5M’s, 1P Common Cause –Bell shaped distribution of defects –Problems arise from combination of factors Special Cause –Defects do not tail off –Single or multiple factor has large influence on defects Frequency Distribution Check Sheet

DMAIC: Analysis – Process Analysis Subprocess Mapping –Start with High Level Process Map from Define phase –“Drill Down” 5-7 steps below High Level –Reduce or eliminate inefficient steps The Nature of Work –Analyze map for non-value added steps –Categorize non-value added steps Micro problem statements

DMAIC: Process Analysis – Root Cause Analysis Open: Brainstorm all explanations of current sigma process Narrow: Consolidate similar ideas and vote on most likely causes Close: Test theories with data

DMAIC: Improve Generating solutions –Create a solution for each verified root cause Selecting solutions –Implement solutions either individually or in groups –Recalculate sigma for each implementation

DMAIC: Control Determine Technical method of control –Based on throughput and standardization –Create plots of unit vs. time to look for patterns when out of consistent bounds Creating the response plan –What to look for when process exceeds consistent bounds

Levels of 6σ – Green Belt Focuses on 1-2 projects, part time Direction comes from Black Belt Skilled at project management Responsible for project progress Leads planning teams’ work

Levels of 6σ – Black Belt Focuses on 1-3 projects, full time Direction comes from Master Black Belt leadership Candidate selection driven by projects

Levels of 6σ – Master Black Belt Full time project responsibility Supports many improvement teams, not limited to a certain number of projects Experience over different areas Recruits and trains other Black Belts

Levels of 6σ – Champion Usually senior manager Driving force behind organization’s 6σ implementation Mentors to other Black Belts

6σ Advancement Process Green Belt –Classroom + on the job training –Complete a number of Six Sigma projects –Receive support from Black Belts on site Black Belt –Same process as Green Belt, more intense –Emerges as Six Sigma leader on site

List of Works Consulted Standard Deviation. Wikipedia. Accessed 11/29/05. About Motorola University: The Inventors of Six Sigma. Motorola, Inc. Accessed 11/29/05. Thomsett, Michael C. Getting Started in Six Sigma. Hoboken, N.J John Wiley & Sons, Inc. (US), Eckes, George. Six Sigma for Everyone. Hoboken, N.J. John Wiley & Sons, Inc. (US), The Sigma Belts – All you need to know. Onesixsigma.com. Accessed 11/30/05.