1. An Introduction LSSU - IAB
creating value for our customers
An Introduction
LSSU - IAB
30 January 2002
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2. What is it?
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3. “Six Sigma”: What is it?
“A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and reinventing business processes.”
Sustained performance!!! Customer needs!!
-- The Six Sigma Way, by Pande, Newman and Cavanaugh
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4. Six Sigma: What is it? Specifically –
Customer-focused, fact and data-based decision making driving out waste and defects which creates value for our customers.
It is just NOT Supply Chain or Manufacturing
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5. Six Sigma: What is it?
A culture that rapidly drives our key activities* to be defect free 999,997 times out of 1,000,000.
< 3.4 defects per million opportunities.
* Valued by or critical to our customer.
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6. What is Sigma? s
Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data.

7. Number of Samples Cure Time of Silicone Sealant
Lower Specification Limit
(LSL)
Upper Specification Limit
(USL)
Number of Samples
 Notes:None
Cure Time of Silicone Sealant

8. x x Lower Specification Limit (LSL) Upper Specification Limit (USL)

9. Lower Specification Limit Upper Specification Limit
(LSL)
Upper Specification Limit
(USL) x

10. Putting Six Sigma in Perspective!
If you played 100 rounds of golf per year, and played at:
2 sigma - you'd miss 6 putts per round
3 sigma - you'd miss 1 putt per round
4 sigma - you'd miss 1 putt every 9 rounds
5 sigma - you'd miss 1 putt every 2.33 years
6 sigma - you'd miss 1 putt every 163 years!
We are currently operating at between 3.0 – 3.5 Sigma.
Given this information, how satisfied are we at operating at this level?
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11. Putting Six Sigma in Perspective!
Four Sigma quality (6210 DPMO) means…
99.370% right…but…..
20,000 lost articles of mail every hour.
Power outages seven hours each month. .
5,000 incorrect surgical procedures each week for a major healthcare provider.
Unsafe drinking water nine minutes every day.
Two long / short airport landings every day.
We are currently operating at between 3.0 – 3.5 Sigma.
Given this information, how satisfied are we at operating at this level?
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12. Putting Six Sigma in Perspective!
Six Sigma quality (< 3.4 DPMO).
Airline passenger safety ~ 8.2 s
Currently at 2.6 DPMO (incidents per million takeoffs and landings).
Airline baggage handling ~ 3 s.
Airline fatalities are at 6.2 sigma.
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13. Impact of Six Sigma creating value for our customers
Six Sigma is 20,000 times better than 3 sigma.
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14. It all began at…..Motorola…not G.E.
1987 Motorola introduced Quality Program now known as Six Sigma.
Allied Signal picked it up.
G.E. Success….
Capital Services
Medical Systems (CAT Scan)
Dozens of others…...
Learned the highest quality producer is also the lowest cost producer.
Learned customer loyalty of a Six Sigma company is ~3X that of the average company.
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15. Who else is doing Six Sigma?
Avery Dennison
Dow
DuPont
Foxboro
Sony
Deere & Co. (John Deere)
Delphi
Allied Signal
Ford
Johnson & Johnson
Caterpillar
Lockheed Martin
IBM
CitiGroup (Visa/MasterCard)
G.E.
J.P. Morgan
ServiceMaster
Key customers and key competitors……and shareholders.
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16. How does Six Sigma work? Why is it different?
Top down, executive led.
Customer focused (VOC).
Project oriented
Led by “Black Belts”.
3-5 months long.
Ave. yearly impact $ K/project.
Consistent methodology. X1 X2 X3
Process
Controls
X4, X5, X6…
Output Y
Critical to
Customer
Six Sigma
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17. What is the “Methodology”?
Define
Measure
Analyze
Improve
Control
D M A I C
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18. What are the “The Tools”?
Six Sigma is a discipline using these tools:
7 Tools of Quality
Advanced analysis tools (Design of Experiment, Linear Regression, etc.)
Re-engineering
Lean manufacturing
Supply chain improvements
Design for Six Sigma (DFSS)
For development of new products, new services, new processes, and new workflows.
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19. Who are the other “Key Players”?
Senior Champion – Owns Six Sigma for the Business.
Champion – Identifies and resources projects.
Master Black Belt – Serves as coach to the Black Belt and project team.
Black Belt – Leads the project team, full time.
Green Belts – Team members (part-time) from the organization sponsoring the project
Project Sponsors – Team leaders.
Process Owners – Owns the process / workflow.
Executive Six Sigma Steering Committee – Oversees progress, resolves issues, ensures success enterprise-wide.
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20. Summary “take aways”
Customer focused….Driven by the Voice of the Customer.
Strong top management leadership, commitment, and involvement. Very Key!
Project orientation with measurable financial results.
Consistent methodology for all work. Time driven.
Time driven….more accountable.
Six Sigma - is a discipline not an “add on” or “program”.
- NOT a supply chain/manufacturing activity.
- No new tools….new ways to apply them!
Goals
Value for the Customer (i.e. no defects or waste & low cost)
Improved productivity = profitability.
Customer success and satisfaction + Profitability = Growth
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21. References……
The Six Sigma Way (ISBN ) by Pande, Neuman, and Cavanaugh
The Power of Six Sigma (ISBN ) by Subir Chowdhury
Six Sigma (ISBN ) by Harry and Schroeder.
The Six Sigma Handbook (ISBN ) by Pyzdek is more technical and becoming the 'handbook' for Black Belts.
You can get them through Amazon, in a couple of days.
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22. References…… Also...you might consider: www.6-sigma.com
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