1. Our Goal Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

2. Key Learning Point  Six Sigma capability is our Goal

3.  A process operating at “Six Sigma” Capability means: 3.4 ppm 3.4 Defects per Million Opportunities (DPMO)

4. QuotationQuotation “I often say that when you can measure what you are speaking about and express it in numbers, you know something about it. When you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind.”  Lord Kelvin

5. What is “Sigma” ? What is “Sigma” ?  Letter in the Greek Alphabet.  Used to describe the variation within any dataset. Standard deviation of sample data.  The “Sigma Value” is a capability metric. It indicates how well a process is performing.  “Six Sigma” is a philosophy aimed at increasing the capability of all business processes.  Letter in the Greek Alphabet.  Used to describe the variation within any dataset. Standard deviation of sample data.  The “Sigma Value” is a capability metric. It indicates how well a process is performing.  “Six Sigma” is a philosophy aimed at increasing the capability of all business processes.  

6. Average Company Performance 3  Capability 93.319 % 66,810 ppm Defects Good Company Performance 4  Capability 99.379 % 6,210 ppm Defects World Class Performance 6  Capability 99.99966 % 3.4 ppm Defects Long Term Performance Optimized (Peak) Performance  Sets a world class target  Does not merely compare with competitors  Does not simply compare to history

7.  200,000 wrong drug prescriptions each year  Unsafe drinking water for 15 minutes each day  20,000 lost articles of mail per hour  5,000 incorrect surgical operations per week  2 long or short landings at most major airports daily Practical Meaning of 99% Good (Operating at a 4  capability.)

8. Example of 99% Good (Operating at a 4  capability.)  A Bill of Material with 100 line items  One line item is incorrect  Detected at final inspection  Potential Results (COPQ)  Delay, Penalty, Late Payment, Scrap, Re- specify, Re-purchase, Premium Replacement Cost, Overtime, Customer Dissatisfaction, Loss of Credibility, Potential Loss of Future Business  A Bill of Material with 100 line items  One line item is incorrect  Detected at final inspection  Potential Results (COPQ)  Delay, Penalty, Late Payment, Scrap, Re- specify, Re-purchase, Premium Replacement Cost, Overtime, Customer Dissatisfaction, Loss of Credibility, Potential Loss of Future Business

9. Use of Data How would you grade your operation based on the following: FOur organization only uses tribal knowledge. We do not use data. EOur organization collects data simply to say “we collect data.” D Our organization does collect data. And we sometimes look at the numbers. C Our organization logically groups the data. We form charts. B Our organization uses sample data along with basic statistics. AOur organization uses sample data along with inferential statistics. A+Our organization quantifies processes via prediction equations. Your Grade: ______ How would you grade your operation based on the following: FOur organization only uses tribal knowledge. We do not use data. EOur organization collects data simply to say “we collect data.” D Our organization does collect data. And we sometimes look at the numbers. C Our organization logically groups the data. We form charts. B Our organization uses sample data along with basic statistics. AOur organization uses sample data along with inferential statistics. A+Our organization quantifies processes via prediction equations. Your Grade: ______

10. 1 - 2  33 44 5  6  Use of Tools  Tools:  Design for manufacturability  Tools:  Designed experiments  Failure modes and effects  Multi vari analysis  JIT, Kanban  Tools:  Fishbone diagrams  Pareto diagrams  Tools:  Common sense  Tools:  Design for manufacturability  Tools:  Designed experiments  Failure modes and effects  Multi vari analysis  JIT, Kanban  Tools:  Fishbone diagrams  Pareto diagrams  Tools:  Common sense  6-sigma tolerancing  Process mapping  Measurement systems analysis  Capability studies  TOC  Kaizen Events  Brainstorming  SPC charts  Tribal knowledge Your Level: ________

11. Our Goal Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training