© 2002 Six Sigma Academy Eliminate Waste Reduce Variability Growth Six Sigma Elements Six Sigma is a business philosophy that employs a client-centric, fact-based approach to reducing variation in order to dramatically improve quality by eliminating defects and, as a result, reducing cost. Variation Reduction Report-Out Questions and Key Concepts  Document procedures  Standardize Process C CONTROL PHASE  What process controls are being implemented to ensure we “sustain the gains”?  Who is the process owner? Is he or she present? Are they fully aware that they are responsible for maintaining the process after your team has completed its project?  Is there a plan to revisit this process in the future to ensure the new capability level is maintained?  What is the expected improvement in terms of cost reduction? Has finance been involved in the project?  What new tools have you learned that were used in the phase of the project?  Are you satisfied with the level of cooperation and support that you received during the project? What should we do differently to better support the next project? For the control stage of your project: Six Sigma Key Concepts Putting it in Perspective *Defects Per Million Opportunities  Create the solution design  Validate and pilot the solution  Implement improvement plan  Test solutions I IMPROVE PHASE  What new tools have you used in this phase and how were they helpful?  What are the possible root causes of defects?  What product or process design changes are required to achieve your improvement goals?  What are your next steps toward achieving your improvement targets?  Has Finance been involved in the project to fully understand the cost implications of your improvement plans?  Are you satisfied with the level of cooperation and support that you are getting?  What other support actions or activities do you need to accelerate your progress? For the improve stage of your project: Six Sigma Key Concepts Rolled Throughput Yield Typically, we measure the equality of a given process by calculating the number of transactions that “pass” the final step in the process. However, Rolled Throughput Yield accurately measures the cumulative defect rate across all critical steps in a process. Y=f(X 1,X 2,X 3,X 4,X 5 …)

© 2002 Six Sigma Academy  Quantify process performance  Calculate Sigma level  Measure key steps / inputs M MEASURE PHASE  Have you determined what type of data (KPOV’s) is available and how has it been collected?  Baseline control charts over time of the KPOV’s?  Have you completed a process map (flowchart) and who was involved in its development?  Have you determined the categories of defects as shown in your Pareto analysis?  Have you determined if a technology problem is indicated? If yes, what do you think it will take to improve it? Are there any other alternatives?  What did you learn when you verified the measurement system on this project? How did you employ measurement system analysis to your project and what were your takeaways?  Did you identify your next steps?  Are you satisfied with the level of cooperation and support that you are getting?  Have you determined the Entitlement of the Process? What process did you use to determine the Entitlement?  Have you finalized performance objectives and project scope?  Update project in Tracking System? For the measure stage of your project:  Identify the problem  Define client requirements D DEFINE PHASE  Who are your key customers and their critical requirements (CTS’s)?  What are your key process metrics (KPOV’s or Y’s) and key deliverables objectives and milestones?  Have you created a high-level process map?  Has team been initiated (kick-off)?  Have you identified areas where you need to collect data?  What is your plan for getting started with your project? What steps will you take first?  Have you selected the key players associated with the project?  Has Finance been involved (approved) in the project?  What is the objective of the project... Vision of the area management team?  Review with process owner, IT and Finance?  Project definition refined?  Project entered in Tracking System? For the define stage of your project: Six Sigma Key Concepts Average vs. Variation  Average tells little about client experience. The average is hidden within the variation of the data. Within the variation of a process are the defects, which prevent you from consistently achieving your Entitlement. Six Sigma Key Concepts Entitlement  Demonstrated examples of superior performance represent your Entitlement.  Entitlement is a statistical term that refers to the short-term capability of a process... That is referred to the best you have been in the process  Identify, verify and quantify root causes  Establish improvement targets  Validate hypothesis ANALYZE PHASE  What tools have you used in this phase and how were they helpful?  What interim actions have you taken to contain defects until a final solution can be developed and implemented? Has an FMEA (Failure Modes and Effects Analysis) been completed?  What are your improvement plans and next steps to get there (including timing, responsibility and expected results)?  Are you satisfied with the level of cooperation and support that you are getting?  What other support actions or activities do you need to accelerate your progress?  Is your project statistically a “Mean” issue, a “Variation” issue or both?  Update project in Tracking System? For the analyze stage of your project: Six Sigma Key Concepts Defects  Various statistical models uncover the critical factors, which prevent the majority from performing at the Entitlement.  Process change removes the defects and allows performance to shift to the Entitlement. A