Six Sigma An Introduction

History of Six Sigma Motorola (1987) Motorola (1987) Texas Instruments (1988) Texas Instruments (1988) IBM (1990) IBM (1990) ABB (1993) ABB (1993) Allied Signal (now Honeywell) and Kodak (1994) Allied Signal (now Honeywell) and Kodak (1994) GE (1995) GE (1995) Whirlpool, PACCAR, Siebe, Iomega, Polaroid, Sony, Home Depot, Penske (1996/99) Whirlpool, PACCAR, Siebe, Iomega, Polaroid, Sony, Home Depot, Penske (1996/99)

What Is Six Sigma? Basically it is a statistically based methodology for process improvement.

Six Sigma: A Philosophy Continuous improvement Continuous improvement Virtually defect-free Virtually defect-free New way of doing business New way of doing business Innovation and creativity Innovation and creativity Reduce variability with the process. Reduce variability with the process. Based on precision and accuracy-leading to data driven decisions Based on precision and accuracy-leading to data driven decisions

Six Sigma: Where and What Can It Be Used For? Currently used in: Currently used in: –Manufacturing –Military –Sales –Transactional services

Six Sigma: A Measure Sigma (  ) Level Defects per Million Opportunities (ppm) 2308, ,807 46,

Upper Spec Lower Spec +3+3 +3+3 Process Tolerance 3 Sigma Level Process: No Mean Shift

+3  Lower SpecUpper Spec Process Tolerance Six Sigma Level Process: No Mean Shift

99% versus % Pretty much the same. Right?

99% Good % Good Practical Meaning U.S. Postal System 20,000 lost articles / hr 7 lost articles / hr

99% Good % Good Practical Meaning Medical Profession 200,000 Wrong Drug Prescriptions/Year 68 Wrong/Year

99% Good % Good Practical Meaning Airline System 2 short/long landings / day 1 short/long / 5 years

The Goal of Six Sigma The Reduction of VARIATION! The Reduction of VARIATION!

Sources of Variation Machines Machines Materials Materials Methods Methods Manpower Manpower Measurement Measurement Mother Nature Mother Nature

Optimized Process 30+ Inputs Found Critical X’s Controlling Critical X’s All X’s 1st “Hit List” Screened List Measure Analyze Improve Control The Funneling Effect Define

Six Sigma Breakthrough Six Sigma Breakthrough 3 Sigma Level 6 Sigma Level Performance BAD GOOD Time

Let’s Look At A Common Example.

The Dreaded Fast Food Drive Thru!

What’s The Most Important Thing At The Drive Thru? THE WAIT TIME!

Let’s Look At Current Drive Thru Wait Times.

What Does The Data Show Us? The average wait time for the drive thru is over 6 minutes!

Lean Six Sigma: A Powerful Methodology (DMAIC) MeasureDefineImproveAnalyzeControl what is important to the customer: Project Selection Team Formation Establish Goal how well we are doing: Collect Data Construct Process Flow Validate Measurement System the process: Analyze Data Identify Root Causes the process gains: Ensure Solution is Sustained the process performance measures: Prioritize root causes Innovate pilot solutions Validate the improvement

Six Sigma: A Powerful Methodology (DMAIC) MeasureDefineImproveAnalyzeControl what is important to the customer: Project Selection Team Formation Establish Goal how well we are doing: Collect Data Construct Process Flow Validate Measurement System the process: Analyze Data Identify Root Causes the process gains: Ensure Solution is Sustained the process performance measures: Prioritize root causes Innovate pilot solutions Validate the improvement

Six Sigma is a philosophy of continuous improvement. Six Sigma is a philosophy of continuous improvement. Six Sigma measures defects in a process. Six Sigma measures defects in a process. One can expect 3.4 defects per million opportunities in a six sigma level process. One can expect 3.4 defects per million opportunities in a six sigma level process. Six Sigma is a methodology that includes defining, measuring, analyzing, improving, and controlling a process. Six Sigma is a methodology that includes defining, measuring, analyzing, improving, and controlling a process. Summary of Key Points