σ 1 Six Sigma

σ 2 Introduction to Six Sigma

3 Ground Rules Lets make it interactive, funny and informative If you have a question at any time, ask! Thanks for keeping your mobile silent

4 Expectations You will have a better understanding of Six Sigma What are your expectations for this session?

5 Index Understanding Six Sigma Six Sigma Methodologies & Tools Roles & Responsibilities Six Essential Improvement Themes

6 Six Sigma is... The application of the scientific method to the design and operation of management systems and business processes which enable employees to deliver the greatest value to customers and owners. A philosophy, or understanding, that defects cost money defect free  lower cost  higher profits & loyal customers A means to promote greater awareness of customer needs, performance measurement, and business improvement.

7 Six Sigma is... A performance metric. Meaning that the product or service is performing at a level where the chances of a defect are less than 3.4 in a million opportunities. A series of tools and methods used to improve or design products, processes, and/or services.

8 Managing Up the Sigma Scale Sigma% Good% BadDPMO %69.1%691, %30.9%308, %6.7%66, %0.62%6, %0.023% % %3.4

9 Examples of the Sigma Scale In a world at 3 sigma... There are 964 U.S. flight cancellations per day. The police make 7 false arrests every 4 minutes. In MA, 5,390 newborns are dropped each year. In one hour, 47,283 international long distance calls are accidentally disconnected. In a world at 6 sigma... 1 U.S. flight is cancelled every 3 weeks. There are fewer than 4 false arrests per month. 1 newborn is dropped every 4 years in MA. It would take more than 2 years to see the same number of dropped international calls.

10 A way to focus on satisfying customer needs Applicable to any business process Relevant to any employee or customer A continuous improvement mind-set and a decided-way of doing business No Pain No Gain Is Six Sigma? A replacement for existing quality programs Just for manufacturing For executives only A stand-alone initiative A magic touch

11 μ σ What’s in a name? Sigma is the Greek letter representing the standard deviation of a population of data. Sigma is a measure of variation (the data spread)

12 What does variation mean? Variation means that a process does not produce the same result (the “Y”) every time. Some variation will exist in all processes. Variation directly affects customer experiences. Customers do not feel averages!

13 Measuring Process Performance The pizza delivery example... Customers want their pizza delivered fast! Guarantee = “30 minutes or less” What if we measured performance and found an average delivery time of 23.5 minutes? –On-time performance is great, right? –Our customers must be happy with us, right?

14 How often are we delivering on time? Answer: Look at the variation! Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening. s x 30 min. or less

15 Reduce Variation to Improve Performance How many standard deviations can you “fit” within customer expectations? Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s). s x 30 min. or less

16 The Six Sigma Evolutionary Timeline 1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve. 1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique. 1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”. 1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis. 1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality. 1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola 1994: Larry Bossidy launches Six Sigma at Allied Signal. 1995: Jack Welch launches Six Sigma at GE.

17 Six Sigma Companies

18 Index Understanding Six Sigma Six Sigma Methodologies & Tools Roles & Responsibilities Six Essential Improvement Themes

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20 Index Understanding Six Sigma Six Sigma Methodologies & Tools Roles & Responsibilities Six Essential Improvement Themes

21 Leadership –CEO and other top management –Set up vision for Six Sigma –Choose Champions

22 Champion –Usually senior manager –Driving force behind organization’s 6σ implementation –Mentor to other Black Belts –At some companies, may be known as “Quality Leader”

23 Master Black Belt –Identified by Champions –Act as an in-house expert coach for Six Sigma –Supports many improvement teams, not limited to a certain number of projects –Recruits and trains other Black Belts and Green Belts –Deploy Six Sigma across various functions and departments

24 Black Belt –Focuses on 1-3 projects –Full time –Has specific projects –Focus on project execution –Direction comes from Master Black Belt

25 Green Belt –Focuses on 1-2 projects, part time Have other job responsibilities –Direction comes from Black Belt –Skilled at project management –Responsible for project progress –Lead planning teams

26 Sponsors : -Owners of processes and systems who initiate and coordinate Six Sigma improvements activities in their area of responsibilities. Financial Controllers: -Ensure validity and reliability of financial figures used by Six Sigma project teams -Assist in development of financial components of initial business case and final cost-benefit analysis Other Roles

27 Understanding Six Sigma Six Sigma Methodologies & Tools Roles & Responsibilities Six Essential Improvement Themes Index

28 Focus on the Customer. Data Fact Driven Management Process Improvement. Proactive Management. “No Boundaries” Collaboration. Drive for World Class Performance and Perfection Six Essential Improvement Themes

29 Questions?

30 Thank you