1. What is Six Sigma?

2. 6 sigma is a management methodology of which the goal is to improve dramatically the performance and the quality of all your processes, services and products. It is:
Customer centric
Based on data/measurements/statistics
A pragmatic & disciplined approach
Business oriented, providing high returns
Focused on reducing variability & defects

3. 6 sigma crash course If there is an output, there is a process!
If there is a process there is a performance variation
If there is variation there is a probability of defect (missing our customer specifications or our contractual obligations!)
The customer feels always the output process variation. This is how he perceives your quality!
A 6 sigma process produces only 3.4 defects per million of operations

4. 6 sigma crash course Lets take an example:
The cycle time of a distribution company, from customer order to customer delivery should not exceed 3 days (our contractual terms & conditions)
Customers complain.
Competitors are better than us. They never exceed 3 days
Management says “we are loosing money”
Team in place says “we despatch in average the same day we receive the order and we always use a 24 hours delivery carrier”

5. 6 sigma steps (DMAIC) Define your business problem
Measure
Analyze
Improve
Control
Define your business problem
Measure your process (Y) performance
Find the root causes (X’s) of the problem
Improve, implement new solution
Deliver Y performance over time

6. Define process as felt by the customer Lead time is the measurement
Pb statement: we miss our contractual obligations of delivering in less than 3 days
Process in which we have a business problem:
process as felt by the customer
Supplier =
My Company
My Customer
Receipt of
order
from Customer
Collect Order &
Forward
to delivery deptmnt
Procurement
Ship
to Customer & Bill
Consumes
Input
Order
Output
Unit delivery
Lead time is the measurement
Definition
Specification
Performance
limit
Targets/goal
CTQ*
Lead time
3 days
99.99% < 3 days
*Critical To Quality

7. Measure Measure your problem and your defects Lead time distribution
nb of
occurences
Trend
Contractual/Customer
Specification
Limit 50
Observed probability
of defects=12.03%
26/216
defects 10
Variation
Time from
order to delivery
in days
1 day
2 days
3 days
Histogram

8. Defects per million of opportunities
Measure conclusion
I observed a probability of defect of 12.03%!
My performance is 2.67 σ. We have a problem!
6 sigma goal is to reach % of probability of defect!
Defects per million of opportunities
308537
66807
6210
233
3.4
σ value*
2 σ
3 σ
4 σ
5 σ
6 σ
% defects %
6.6807%
0.6210%
0.0233% %
2.67 σ
12.03%
* For short term data

9. Analyze Analysis – finding the root causes (Xs)!
Pareto chart of the 26 defects 20
77%
Miss 3 pm
carrier for
outside
The
region 4
15%
Incomplete
shipping
address 2 8%
Other
2 causes represent 92% of my defects

10. Improve 2 actions taken: σ 6xσ
Process “Outside the region” orders first & organize an earlier transfer to shipping department
Change address format and control at order taking time
New Cycle time from order to delivery distribution μ
nb of
occurences
Contractual/Customer
Specification
Limit 50 σ
Observed probability
of defects=0%
Expected performance: 6 σ
I can place 6 σ between μ
and the spec. limit and the distribution is normal! 10
6xσ
defects
Time from
order to delivery
in days
1 day
2 days
3 days
Histogram

11. Control
2003 Delivery time performance

12. Six Sigma business contribution
Contribution to growth through:
Customer satisfaction increase
Introduction of quality products & services
Productivity gains:
Product quality improvement
Higher service performance
Process efficiency

13. Six Sigma deployment process
Continuous quality
Market
/Customer
expectations
Design
Company strategy
6 Sigma initiatives
CTQ*
Product
Service
Process
Select 6 Sigma projects
Select, train & coach people
Improve/Fix
Demonstrate financial results
*Critical To Quality

14. Six Sigma deployment - People
Top Management
Quality Manager/
Master Black Belt
Black Belt
Green Belt
Engage/promote 6 sigma
Select initiatives aligned with the Company strategy
Drive one big initiative. Train and coach. Change agent.
Deliver main projects. Full time project leader.
Deliver contributing projects

15. 6 sigma history
6 sigma started at Motorola in 1989 – manufacturing only
6 sigma was applied successfully at TI and Allied Signal
6 sigma started at GE in 1995
6 sigma expanded to all functions at GE in 1996