1 66 1 Six Sigma – Basic overview

2 66 2 WHAT IS THIS SIX SIGMA ? A Philosophy A Statistical Measurement A Metric A Business Strategy make fewer mistakes in all that we do. helps gage adequacy of product, process and services A measuring system good quality reduces cost Sigma is a Greek word which denotes Standard deviation

3 66 3 SIGMA RATING AND PPM ARE CORRELATED SIGMA RATING A PERFORMANCE MEASURE Sigma Rating PPM 1 691, , ,807 46, Process Defects per Capability Million Opportunities 6 SIGMA MEANS 3.4 DEFTS IN PER MILLION OPPORTUNITIES

4 66 4 Six sigma is when the inherent variability of the process is half that of the requirements LSLUSL 66 33 33 66 A WORD OF CAUTION: It is possible to achieve six sigma by widening specifications but the issue is that would the customer accept it. WHAT IS SIX SIGMA

5 66 5 Logic and intuition Quick hits-Kaizen Low hanging fruits Simple QC tools Bulk of fruits Process characterization and optimization Process limitations Sweet fruits DFSS Increase of sigma rating requires an exponential decrease in defect reduction

6 66 6 TO REDUCE VARIATION TO REDUCE DEFECTS TO IMPROVE YIELD TO ENHANCE CUSTOMER SATISFACTION TO IMPROVE THE BOTTOMLINE THE GOALS OF SIX SIGMA 6 Sigma is a customer driven process improvement system that: –puts our Customers (BOTH INTERNAL & EXTERNAL) and their requirements first 6 Sigma is THE change programme :

7 66 7 HOW THIS WORK GETS DONE

8 66 8 IDENTIFYING THE KEY PLAYERS There are four major roles that need to be filled for a successful project. –Black Belt/Green Belts –Team Members –Master Black Belt –Champion

9 66 9 Before Project During Project After Project Black Belt/ Green Belt (Project Leader) Review purpose project statement with sponsor/ champion Draft rest of charter Finalize team members Manage schedules Lead meetings Coordinate Communication Serve as liaison with MBB, champion(s), and stakeholders Keep records Lead team’s work See that documentation is completed and lessons captured Update dashboard Monitor implementation Monitor results Use improved methods Team Members Participate in meetings Carry out assignments Help in data collection Assist in piloting Contribute knowledge and expertise Learn necessary skills and methods Use improved methods PROJECT ROLES & RESPONSIBILITIES

10 66 To get results should we focus on Y or X? Y Dependent variable Output of the process Effect Symptom It is monitored X 1, X 2, …….., X n Independent variable Input to the process Cause Problem It is controlled Y = f(X) THE FOCUS OF SIX SIGMA

11 66 IMPACT ON COST OF QUALITY DPMO SIGMA Percent of Sales WHY 6 SIGMA FOR YOUR COMPANY

DMAIC approach : 5 steps to solve the problems

13 66 ROAD MAP Define Phase Why this Project ? – Business Case Project Charter SIPOC – to find process scope and inputs CTQ identification – to come down from Macro to micro objectives – CTQs have to be specific and measurable. Create CTQ specification table – Operational definition of measure – Specifications / defect definition – Kano status Review and Finalize Your Project Charter

14 66 Importance of Project Selection The process and the method we use to select Projects are critical success factors in the achievement of business results through 6 Sigma A good Project selection activity not only guarantees the successful completion of the Project itself, but improves resource productivity and maximizes the total impact for the business

15 66 Fundamentals of 6 Sigma Project Selection Must be driven by leadership Must be focused on opportunities that are real and important to the business Usually based on either business financial or customer performance Approach may be quantitative and scientific - is always logical Involves people who are familiar with and accountable for process performance Moves from broad and high-level to precise, narrow and specific Ends with a Project charter

16 66 Improvement ideas may come from a variety of sources customer complaint /feedback systems key competitive strategies business improvement initiatives suggestion boxes histories and observations Voice of the Customer systems periodic process evaluations existing Project pipelines or backlogs COPQ evaluations process “escapes” risk assessment Candidate improvement opportunities

17 66 Key considerations in selecting Projects What are the improvement objectives for our business? What sources of improvement ideas are available? What additional considerations need to be made? Which approaches to Project selection are best for us? How may this change over time? What processes do we focus on? Why? What criteria do we use to prioritize opportunities? To what extent do we rely on data to drive Project selection? Who should be involved in Project selection? How? How do we translate improvement ideas into defined, specific and chartered Projects for Belts?

18 66 CHARTER Charter Consist Problem statement Goal of project ( from to in which time span) Scope of project Measurable ( CTQs) Team and stakeholders ( BB/GBs/MBB/Effected parties) Benefit from the project Support required Schedule for project ( Milestones)

19 66 Problem Statement Criteria for a good problem statement –It must… be specific be quantifiable (measurable) state the effect/pain It should not… imply a cause imply a solution

20 66 Problem Statement Criteria Should not imply a cause — Avoid expressions such as “because of,” “due to,” etc. Should not imply a solution — Avoid expressions such as “a lack of,” “need to,” etc.

21 66 Problem Statement Criteria Be specific — Avoid terms which lend themselves to ambiguity, such as “quality,” “responsiveness,” “productivity,” etc. Quantify the problem — State explicitly when, how much, how long, how often, and what direction (magnitude/trend). State the effect/pain — states explicitly the effect the problem is having on the customer (how customers are affected or impacted).

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