1. 6 Sigma Presented by : Galing Priyatna Franky Mangihut Tua
Bernadine Niken
Bambang Wijarnako

2. Historical Development of Process Improvement
Source :

3. Quality Management Development
Quality Planning
Quality Assurance
Quality Control
Sources :

4. TQM vs 6 Sigma TQM 6 Sigma Based on worker empowerment and teams
Owned by business leader champion
Department and Workplace focus
Cross functional project
Simple improvement tools
Rigorous and Advance statistical tools
Little financial accountability
Requires verifiable return on investment

5. What is 6 Sigma ?
6 Sigma is Quality management methodology that uses different theories and tools to improve upon the process of a certain business
Seeks to find and eliminate cause of defects and errors in manufacturing and service processes

6. What is 6 Sigma ?
‘Sigma’ (σ) is a Greek letter used to represent the statistical term ‘standard deviation’ which measures the deviations from average in a particular business process.
Focuses on output that are critical to customers and clear financial return to the organization.

7. Pioneered by Motorola in the Mid- 1980s
What is 6 Sigma ?
Pioneered by Motorola in the Mid- 1980s
Popularized by the success of General Electric
Aims at producing no more than 3.4 ppm defects.

8. The Sigma Scale
Source : (Craig Gygi et al, : 3)

9. 6 Sigma Philosophy
The application of the scientific method to the design and operation of management systems and business processes which enable employees to deliver the greatest value to customers and owners

10. D M A I C 6 Sigma Methodology
Set the context and objectives for the project
efine M
Get the baseline performance and capability of the process or system being improved
easure A
Use data and tools to understand the cause-and-effect relationship in process or system
nalyze I
mprove
Develop the modifications that lead to a validated C
Establish plans and procedures to ensure the improvements are sustained.
ontrol

11. 6 Sigma Breakthrough Strategy
Write the problem statement, the objective statement, priorities and launch the project
Define
Measure
Understand the process, validate the data accuracy, and determine process capability.
Analyze
Determine the relationship of Y = ƒ(X) + σ, and screen for the potential causes
Improve
Determine, validate, and implement solutions to achieve the objective Statement.
Control
Implement process control methods and monitor performance to sustain result.

12. 6 Sigma Role and Responsibility

13. 6 Sigma Role and Responsibility
Six Sigma Champion
senior or middle level executive
choosing and sponsoring specific projects.
ensures the availability of resources.
knows the business at hand inside and out as well as the Six Sigma Methodology
Six Sigma Master Black Belt
has been able to gain experience in managing several project
has a deep expertise and knowledge base in the tools and methods of Six Sigma

14. 6 Sigma Role and Responsibility
Six Sigma Black Belt
thorough knowledge of Six Sigma philosophies and principles (including supporting systems and tools).
exhibits team leadership
understands team dynamics
assigns their team members with roles and responsibilities.
Six Sigma Green Belt
helps an employee
serve as a trained team member within his or her function-specific area of the organization.
work on small, carefully defined Six Sigma projects
requiring less than a Black Belt's full-time commitment

15. 6 Sigma Role and Responsibility
Six Sigma Yellow Belt
integrate Six Sigma methodologies for the improvement of production and transactional systems to better meet customer expectations and bottom-line objectives of their organization.
has a basic knowledge of Six Sigma
not lead projects on their own.

16. 6 Sigma Tools – Technical
The Critical to Quality (CTQ) Tree
The Process Map (SIPOC Diagram)
The Histogram
The Pareto Chart
The Process Summary Worksheet
The Cause-Effect Diagram
The Scatter Diagram
The Affinity Diagram
The Run Chart
The Control Chart

17. 6 Sigma Tools – Technical
The Stakeholder Analysis Chart
Planning for Influence Chart
The Threat/Opportunity Matrix
The Pay-Off Matrix
The Solution Vision Statement
The Team Meeting Agenda
Ground Rules
The Parking Lot
The Plus Delta Review of Each Team Meeting
Activity Reports

18. 6 Sigma Success Story
General Electric profited between $7 to $10 billion from 6 sigma in about 5 years
Dupont added $1 billion to its bottom line within two years of initiating its 6 sigma program , and that number increased to about $2.4 billion within four years.
Bank of America saved hundreds of million of dollar within three years launching of 6 sigma, cut cycle times by more than half, and reduced the number of processing errors by an order of magnitude.
Honeywell achieved record operating margins and savings of more than $2 billion in direct cost
Motorola, the place where six sigma began, saved $ 2.2 billion in four year time frame.
(Craig Gygi et al, : 12)

19. 6 Sigma Case Study The Planning of Six Sigma Implementation in PT ”X”
(Mining Contracting Company)

20. About the Company

21. 6 Sigma Deployment Timeline
Source : Thomas Pyzdex & Paul Keller, 2010 : 14

22. Project Candidates
Variation in Mining Operation

23. Project Candidates
Variation in Mining Operation
Individual Production

24. Project Candidates
Variation in Plant Department

25. Project Candidates
Variation in Plant Department

26. Project Candidates
Variation in Plant Department

27. Project Selection Process
Cost and Benefit Analysis
Pareto Priority Index (PPI) (Juran and Gryna)
𝐏𝐏𝐈 = 𝑆𝑎𝑣𝑖𝑛𝑔 𝑥 𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑠𝑢𝑐𝑐𝑒𝑠𝑠 𝐶𝑜𝑠𝑡 𝑥 𝑡𝑖𝑚𝑒 𝑡𝑜 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑖𝑜𝑛 (𝑦𝑒𝑎𝑟𝑠)
Sample of PPI

28. 6 Sigma Framework

29. DEFINE
Define the goals of the improvement activity, and incorporate into a Project Charter. Obtain sponsorship and assemble team.
Define project Scope, Objective & Schedule
Define Process (top level) and Stakeholder
Select Team Members
Obtain Authorization from Sponsor
Assemble and Train Team
… Project charter
… VOC tools (surveys, focus groups, letters, comment cards)
… Process map
… QFD
… SIPOC
… Benchmarking
… Project planning and management tools
… Pareto analysis

30. MEASURE
Measure the existing system. Establish valid and reliable metrics to help monitor progress toward the goal(s) defined at the previous step. Establish current process baseline performance using metric.
Define Process
Define Metric
Establish Process Baseline
Evaluate Measurement System
Measurement systems analysis
… Process behavior charts (SPC)
… Exploratory data analysis
… Descriptive statistics
… Data mining
… Run charts
… Pareto analysis

31. ANALYZE
Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal. Use exploratory and descriptive data analysis to help you understand the data. Use statistical tools to guide the analysis.
Benchmark against best in class
Determine Process Drivers
Analyze Sources of Variation
Analyze Value Stream
… Cause-and-effect diagrams
… Tree diagrams
… Brainstorming
… Process behavior charts (SPC)
… Process maps
… Design of experiments
… Enumerative statistics (hypothesis tests)
… Inferential statistics (Xs and Ys)
… Simulation

32. IMPROVE
Improve the system. Be creative in finding new ways to do things better, cheaper, or faster. Use project management and other planning and management tools to implement the new approach. Use statistical methods to validate the improvement.
Evaluate for Risks and Failure Modes
Optimize Process
Define New Process
Priorities Improvement Opportunities
… … Force field diagrams
… FMEA
… 7M tools
… Project planning and management tools
… Prototype and pilot studies
… Simulations

33. CONTROL
Control the new system. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, MRP, budgets, operating instructions and other management systems. You may wish to utilize standardization such as ISO 9000 to ensure that documentation is correct. Use statistical tools to monitor stability of the new systems.
Evaluate for Risks and Failure Modes
Optimize Process
Define New Process
Priorities Improvement Opportunities
… … … SPC
… FMEA
… ISO 900 ×
… Change budgets, bid models, cost estimating models
… Reporting system

34. Thank You