1. Six Sigma By: Jensen Agcaoili

2. What is Six Sigma? Six Sigma Definitions: A management driven, scientific methodology for product and process improvement which creates breakthroughs in financial performance and Customer satisfaction. Source: Motorola A methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale and quality of product. Source: ASQ

3. History 1970’s - Motorola found itself unable to compete in the consumer products with Japanese companies. 1980’s – Bill Smith invented Six Sigma concept and was recognized as “The father of Six Sigma” 1987 – Motorola founded Six Sigma and received first Malcolm Baldrige National Quality Award in 1988.

4. Six Sigma Curve

5. Savings by Company CompanySavings ($billions) Motorola (1986-2001) 16 GE (1996-1991) 4.4 Honeywell (1999-2000) 1.8 Ford (2000-2002) 1

6. Strengths & Goals Simple and effective management structure Reduces variation in system process Ability to identify, analyze, and monitor errors Six Sigma Goal Near elimination of defects from any process Numerical goal of 3.4 defects/million opportunities

7. Six Sigma Implementation CEO - The driving force Champion - Responsible for the success of the project, providing resources and breaking down organizational barriers Black Belt - Project leader Green Belts - Project team members Master Black Belts - Train and mentor new Black Belts in the organization

8. Not only in manufacturing Six Sigma has been successfully applied to many processes outside of manufacturing. Transactional processes such as insurance, health care, software coding, billing, and customer support

9. Integrating Six Sigma With Total Quality Management: A Case Example for Measuring Medication Errors Article provided by Journal of Healthcare Management by Revere and Black. (2003)

10. Background The institute of Medicine estimated between 44,000 and 98,000 deaths occur each year from medical errors (2002) Medical errors cost between $17 to $29 billion GE Medical Systems reported over 31% of post-heart-attack patients receive improper medications and 30% percent of mammograms are incorrect (2001)

11. Sis Sigma in Healthcare Reduce medication error Reduce inventory of surgical equipment Improve patient satisfaction Reduce length of stay Improve staff scheduling Reduce patient wait times Many more..

12. Case Example: Medication Error Three categories of errors and opportunities Prescribing Dispensing Administering

13. How to determine Sigma level Use Medication Error Ratio to determine sigma level Medication Error Ratio = Number of Medication Errors Number of Opportunities for Error

14. Solution: Medication Error Ratio = Number of Medication Errors Number of Opportunities for Error Medication Error Ratio = 79/180,000 = 0.000439 Convert the number of medication errors per million opportunities 0.000439 x 1,000,000 = 439 Six sigma level = 4.7

15. Any Questions?