1. Six Sigma

2. Six Sigma What is Six Sigma?
Methodology for minimizing mistakes and maximizing value
Every mistake has a cost
Philosophy for improvement
Goes beyond production floor all the way to upper management / CEO

3. Six Sigma Why “Six Sigma”? What does the term mean?
Six standard deviations between process mean and nearest specification limit
To achieve 6σ, a process must produce fewer than 3.4 defects per million opportunities
Will have process capability Cpk=2 in short term

4. Six Sigma Development Developed at Motorola in the 1980s
Popularized by GE in the 1990s
Saved companies millions (billions) of dollars

5. Six Sigma Goal: Bring scientific methods to management
Reduce variability in all business processes, not just manufacturing
Use of statistical methods vs. hunches/guesses

6. Management principles
Return on Investment
Focus on ROI
Improve process to save money/improve profit
Accountability
Leadership and management must be committed to projects
Individuals managers must be accountable

7. Management principles
Customer focus
Understand who customers are and what they need/want
VOC – Voice of the customer
Metrics
Performance measures that are accessible and visible to everyone

8. Management principles
Process orientation
Think about how processes work within business
Project Focus
Optimize process by doing projects
Leadership identifies projects

9. Management principles
Tools and technology
Software for statistical analysis, management software
Statistical tools (e.g. DOE, ANOVA, magnificent seven, control charts)
Business tools (e.g. cost-benefit analysis, market analysis)

10. Management principles
Infrastructure for change
Personnel, communications, documentation
Culture of change
Everyone in the organization can understand customer

11. Project Strategy: DMAIC
Define – context and objectives
Who are the customers? Suppliers?
Break down the process into steps; What inputs are needed? What are the outputs?
Measure – baseline performance
What needs to be measured?
Develop and validate measurement systems (Gauge R & R)
Where are we now?

12. Project Strategy: DMAIC
Analyze – understand cause and effect relationships in the process
Analyze data collected in the M step
Identify special cause variability
Improve – modify process to improve
Identify potential solutions
Evaluate to determine final solution
Verify final solution

13. Project Strategy: DMAIC
Control – establish plans to maintain improvement
Ongoing process management plans
Plans to monitor and control critical processes
What to do if process goes out of control

14. The belts
Yellow Belts – everyone in the organization that is not at higher level
 Green Belts – trained in statistical methods, solve problems
Apply six sigma to their process
 Black Belts – most highly trained experts
Implement Six Sigma projects
Master Black Belts – teach and mentor black belts