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Introduction to Six Sigma

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1 Introduction to Six Sigma
Six Sigma is a methodology which can be used to fulfill the goals of Continuous Improvement and Quality Management Continuous Improvement GOAL: To enhance the effectiveness, efficiency, and value of IT products, services, and processes. There is a “Policies, Objectives & Scope” document available within this toolkit.

2 Six Sigma

3 What is Six Sigma? A statistical measure of variation.
Full Six Sigma equals % accuracy. Methodology for improving key processes. A “tool box” of quality and management tools for problem resolution. A business philosophy focusing on continuous improvement. An organized process for structured analysis of data. Six Sigma is a methodology used in quality management and improvement. Fundamentally, the concepts and tools of Six Sigma are not new, but they have been packaged to support quality management more effectively and efficiently. This slide demonstrates the many different ways Six Sigma can be perceived.

4 History of Six Sigma Motorola developed the Six Sigma methodology in the mid-1980s as a result of recognizing that products with high first-pass yield rarely failed in use. Statistical terms date back to the 1800s (Carl Frederick Gauss). As mentioned before, the concepts and tools of Six Sigma have existed long before the methodology was officially packaged. Gauss statistics have been around since the 1800s, providing the mathematical foundation for quality management. As the industrial age progressed, quality programs and concepts flourished: you may know about Total Quality Management, Statistical Process Control, or Deming’s PDCA cycle. Quality itself is closely associated with continual improvement. In the late-1980s, the Motorola begin creating a reputation for themselves for manufacturing products which were extremely reliable and sturdy. Motorola was one of the first companies to provide wireless communication devices, such as walkie-talkies and cell phones. The reason for their rise in the market place was their commitment to quality which was paying off substantially: the result of this commitment was the in-house development of a quality control and improvement methodology called Six Sigma. Eventually, other companies started adopting the methodology. One of the most notorious implementations of Six Sigma is with General Electric under the leadership of Jack Welch.

5 Six Sigma Methodology D.M.A.I.C. (Define, Measure, Analyze, Improve, Control) Provides a logical sequence for applying existing problem solving tools and concepts. Repackaging of existing tools and concepts. Various quality/management tools applied at each step. Project sponsor review recommended at conclusion of each step before moving to next step. The evolution of Six Sigma has resulted in a five-stage process of control and improvement (its original inception was a four-step process that mirrored Deming’s PDCA cycle. Each stage of the methodology should be attended equally. Six Sigma can be run as a single project or as a program of projects. Each iteration of the Six Sigma methodology will typically focus on a specific process related to a product, service, customer group, or concern. The stages of the methodology, therefore, create the different phases of defining and executing the project successfully. From a project context, the stages are: Define – Obtains agreement on the scope, goals, and targets for the project. Measure – Determines the current state and gathers data relevant to the quality, speed, and costs for a scoped process. Analyze – Data is stringently reviewed to identify problems, deficiencies, or notable defects in process outputs which prevent the achievement of agreed goals and targets. Improve – Identifies and implements solutions to resolve problems. Control – Completes the project with an improved process and procedures for maintaining the process in its improved state. Within each stage of Six Sigma, different tools and methods may be utilized at the discretion of the organization. Formal Six Sigma programs will create a knowledgeable foundation of scores of tools to be used, how they can and should be applied to any given situation, and how to handle the results appropriately.

6 Process Management Everything we do can be considered a process or part of a process. Every process can be characterized by: Average performance. Variation. Processes are performing optimally when the result of the process is at the expected value (meaning there is minimal variation). Six Sigma is closely associated with manufacturing because of its obvious benefits for reducing the number of defects in tangible products. As a result, the methodology has historically been difficult to apply toward service industries, particularly IT. However, even in a factory setting, Six Sigma has been focused on the “process” not the product; the product simply is an indication of how well the process is executed. Given this context, the methodology can be implemented anywhere easily. As a result, Six Sigma has become also associated with business process management and control. Even in service industries, a process can be defined by its performance and the variation in its execution. The goal of Six Sigma is to reduce the level of variation and improve process performance. While costs are not a key focus, a by-product of Six Sigma is often a reduction in overall costs, or savings to the business. The contributing factor in costs saving is the reduction of defects which require re-work. Do it right the first time, and you don’t have to spend money to do it again.

7 Six Sigma Roadmap D M A I C Develop a vision Map the process
Collect baseline data on defects and possible cause Create focused problem statement Create possible solutions for root causes Develop & document standard practices Map the process Plot defect data over time & analyze for special causes Explore potential causes Select solutions Train staff teams Understand customer needs Create & stratify frequency plots & do Pareto analysis (80/20) Calculate starting sigma level Create detailed process maps Organize potential causes Collect data Use statistical methods to quantify cause & effect relationship Develop plans Pilot plans Implementation Measure results Evaluate Monitor performance Create process for updating procedures Summarize and communicate results Recommend future plans The table here illustrates a basic roadmap using Six Sigma to focus on specific tasks.

8 When to use Six Sigma? Unknown causes/situations
Problems are common place and not well-defined When “broad spectrum” approach is inappropriate When other problem solving methods fail In a complex situation with many variables Six Sigma can benefit any situation for a business; the influencing factor being the definition of a “process defect”. If a process has no defects, then Six Sigma will not succeed. Luckily for us, processes are rarely that perfect, and all that is needed is for well-defined processes is to reevaluate what a defect may look like. Here’s an example. Getting a meal completed by a specific time: 6:00pm. A defect could be defined as missing this time. But let’s say the methodology is applied successfully and every dinner meal is ready and served at 6:00pm. What’s next? With the variety of menu options, this result may be unlikely unless the same meal is made every night. How boring!!! At this point, the defect may be defined in terms of customer dissatisfaction. Or nutritional balance. Simply put, as you improve a process, other opportunities for improvement may open up where Six Sigma can be applied. To begin using Six Sigma, look for areas of the business which has any of the following characteristics: READ SLIDE

9 Six Sigma Belts 3 levels (or Belts)
Based on level of competence in understanding and applying related tools Green belt – basic analytical tools; works on less complex projects Black belt – emphasis on application and analysis; works projects with help from Green belts Master Black belt – understands application and statistical theory behind application; trains other belts; leads project reviews Actual definition and competencies for each belt can vary by organization and training institutions The adoption of Six Sigma has developed into a formal training programs. How Six Sigma is applied to the business is extremely importantly: while most people may have a nature desire to improve, they are not trained in making improvements. Adopting Six Sigma requires changes in behavior, culture, and perspective. An organization wishing to adopt Six Sigma formally will put its employees through training. Individuals may take this training to increase their value to the company. Individuals and organizations can become certified in Six Sigma as recognition for successfully completing and applying Six Sigma training. Training has three levels of competency, distinguished as belts. Green belt training provide a foundation in the concepts of Six Sigma and most employees will complete this training with no additional expectation or requirement to move forward. From a project perspective, the project team will be comprised of mostly green belts. If this is true, the project manager will most likely be a black belt. Black belts have more knowledge in how to apply the concepts of Six Sigma to meet a desired end. For example, a green belt may know how to use a Six Sigma Tool; a black belt knows when to use the tool. Master black belts, the third level of training, will know why the tool is used in a given situation. The above explanation between the different belts is very generic; that’s because the distribution, definition, and level of required competency may very across multiple organizations and training institutions providing instruction in Six Sigma.

10 Why adopt Six Sigma? Defined process for problem solving
Proven methodology to solve problems Consistency with results Focus on the “bottom line” which encourages credibility/support from the top of the organization READ SLIDE

11 It’s not all Plain Sailing!
Adoption requires a cultural change in order gain best results. Top Management must be patient – there is no quick fix. Six Sigma is about getting the right answer, not just any answer. Six Sigma can sometimes be frustrating, especially to someone who doesn’t understand the concepts and methods used. Six Sigma, like Continuous Improvement, cannot be simply a program which is adopted by an organization: it must be assimilated into every task, decision, and result of the organization to be effective. Some of the reasons why Six Sigma fails are detailed on the next slide.

12 There are more ways to fail than to succeed!
Points of Attention “Lies, damn lies, and statistics” CAVE people, (Citizens Against Virtually Everything) Internal Sabotage Lack of understanding Fear of Change There are more ways to fail than to succeed! READ SLIDE

13 Six Sigma Summary Its amazing what can be known when we look at data differently. DMAIC is not for every project When applied correctly, DMAIC will produce consistently better results than most other methods “New Culture” at many organizations today Very marketable A Six Sigma approach works! READ SLIDE


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