1. Six Sigma for Managers

2. Contents : Six Sigma : An Overview What is Six Sigma? Why Six Sigma?
Six Sigma Phases : Define, Measure, Analyze, Improve and Control
Tools and Key Roles for Six Sigma

3. Why Six Sigma?

4. What is Sigma ?
A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process
Sigma

5. What is Six Sigma? Six Sigma
A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per
million opportunities
Six Sigma
A philosophy and a goal : as perfect as practically possible
A methodology and a symbol of quality

6. Defects per Million Opportunities
Sigma Level
Sigma Level
(Process Capability)
Defects per Million Opportunities 2
308,537 3
66,807 4
6,210 5
233 6
3.4

7. Sigma Level
Six Sigma = %

8. Sigma Level Why not four Sigma or 99.379% ?
Every hour the postal service would lose 20,000 pieces of mail
Every day our drinking water would be unsafe for almost 15 minutes
Every week there would be 5,000 surgical operations that go wrong in some way
Every month we would be without electricity for almost seven hours
Why not four Sigma or % ?

9. Why Six Sigma? Money` Quality Customer Satisfaction Competitive
Advantage
Growth
Employee Pride

10. Why Six Sigma?
At General Motors, Six Sigma added more than $ 12 billion to the bottom line in 1999 alone
Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort
Allied Signal reports saving $ 15 billion through Six Sigma.

11. Why Six Sigma?
Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications

12. Cost of Poor Quality What is cost of scrap? What is cost of rework?
What is cost of excessive cycle times and delays?

13. Cost of Poor Quality
What is cost of business lost because customers are dissatisfied with your products or services?
What is cost of opportunities lost because you didn’t have time or the resources to take advantage of them?

14. Critical-to-Quality (CTQ)
Elements of a process that significantly affect the output of that process. Identifying these elements is figuring out how to make improvements that can dramatically reduce costs and enhance quality.

15. Six Sigma Phases

16. Six Sigma Phases
Define
Measure
Analyze
Improve
D M A I C
Control

17. Six Sigma Phases
Define the project goals and customer (internal and external) deliverables
Define
Measure the process to determine current performance
Measure
Analyze and determine the root cause(s) of the defects
Analyze

18. Six Sigma Phases Improve the process by eliminating defects Improve
Control future process performance
Control

19. Six Sigma Phases Define Define Customers and Requirements (CTQs)
Develop Problem Statement, Goals and Benefits
Identify Champion, Process Owner and Team
Define Resources
Evaluate Key Organizational Support
Develop Project Plan and Milestones
Develop High Level Process Map
Define

20. Six Sigma Phases Measure Define Defect, Opportunity, Unit and Metrics
Detailed Process Map of Appropriate Areas
Develop Data Collection Plan
Validate the Measurement System
Collect the Data
Begin Developing Y=f(x) Relationship
Determine Process Capability and Sigma Baseline
Measure

21. Six Sigma Phases Analyze Define Performance Objectives
Identify Value/Non-Value Added Process Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x's, Y=f(x) Relationship
Analyze

22. Six Sigma Phases Improve Perform Design of Experiments
Develop Potential Solutions
Define Operating Tolerances of Potential System
Assess Failure Modes of Potential Solutions
Validate Potential Improvement by Pilot Studies
Correct/Re-Evaluate Potential Solution
Improve

23. Six Sigma Phases Control
Define and Validate Monitoring and Control System
Develop Standards and Procedures
Implement Statistical Process Control
Determine Process Capability
Develop Transfer Plan, Handoff to Process Owner
Verify Benefits, Cost Savings/Avoidance, Profit Growth
Close Project, Finalize Documentation
Communicate to Business, Celebrate
Control

24. Define
Measure
Analyze
Improve
Control
Deliverables :
Fully trained team is formed, supported, and committed to work on improvement project.
Team charter developed, customers identified and high impact characteristics (CTQs) defined, business process mapped.

25. Define Measure Analyze Improve Control Checkpoints for Readiness
Team Readiness :
Team is sponsored by a champion or business leader. 
Team formed and team leaders assigned. 
Improvement team members fully trained on Six Sigma and DMAIC. 
Team Charter :
Completed project management charter, including business case, problem and goal statements, project scope, milestones, roles and responsibilities, communication plan.

26. Define Measure Analyze Improve Control Checkpoints for Readiness
Customers
Customer(s) identified and segmented according to their different needs and requirements.
Data collected and displayed to better understand customer(s) critical needs and requirements.
Business Process Mapping
Completed, verified, and validated high-level 'as is' (not 'should be' or 'could be') business process map.
Completed SIPOC representation, describing the Suppliers, Inputs, Process, Outputs, and Customers.

27. Define
Measure
Analyze
Improve
Control
Deliverables :
Key measures identified, data collection planned and executed, process variation displayed and communicated, performance baselined, sigma level calculated.

28. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Key Measures Identified
Key measures identified and agreed upon.
High impact defects defined and identified in the business process.
Data Collection Planned and Executed
Solid data collection plan established that includes measurement systems analysis.
Data collected on key measures that were identified.

29. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Process Variation Displayed/Communicated
Process variation components displayed/communicated using suitable charts, graphs, plots.
Long term and short term variability accounted for.
Performance Baseline/Sigma Calculation
Measure baseline process performance (capability, yield, sigma level).

30. Define
Measure
Analyze
Improve
Control
Deliverables :
Data and process analysis, root cause analysis, quantifying the gap/opportunity.

31. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Data and Process Analysis
Identify gaps between current performance and the goal performance.
Root Cause Analysis
Generate list of possible causes (sources of variation).
Segment and stratify possible causes (sources of variation).
Prioritize list of 'vital few' causes (key sources of variation).
Verify and quantify the root causes of variation.

32. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Quantifying the Gap/Opportunity
Determine the performance gap.
Display and communicate the gap/opportunity in financial terms.

33. Define
Measure
Analyze
Improve
Control
Deliverables :
Generate (and test) possible solutions, select the best solutions, design implementation plan.

34. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Generating (and Testing) Possible Solutions
Possible solutions generated and tested.

35. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Selecting The Best Solution(s)
Optimal solution selected based on testing and analysis.
New and improved process ('should be') maps developed.
Cost/benefit analysis of optimal solution(s).
Small-scale pilot for proposed improvement(s).
Pilot data collected and analyzed.
Improved process ('should be') maps modified based on pilot data and analysis.
Project impact on utilizing the best solution(s).

36. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Designing Implementation Plan
Solution implementation plan established, including schedule/work breakdown structure, resources, risk management plan, cost/budget, and control plan.
Contingency plan established.

37. Define
Measure
Analyze
Improve
Control
Deliverables :
Documented and implemented monitoring plan, standardized process, documented procedures, response plan established and deployed, transfer of ownership (project closure).

38. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Monitoring Plan
Control plan in place for sustaining improvements (short and long-term).
Process Standardization
New process steps, standards, and documentation are ingrained into normal operations.
Documented Procedures
Operating procedures are consistent.
Knowledge gained on process is shared and institutionalized.

39. Checkpoints for Readiness
Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness
Response Plan
Response plans established, understood, and deployed.
Transfer of Ownership (Project Closure)
Transfer ownership and knowledge to process owner and process team tasked with the responsibilities.

40. Tools and Roles for
Six Sigma

41. Tools for Six Sigma
Creating flowcharts of the step in a process – operations, decision points, delays, movements, handoffs, rework, loops, and controls or inspections.
A process map is illustrated description of how a process work.
Process Mapping

42. Design of Experiments or DOE
Tools for Six Sigma
DOE is a structured, organized method for determining the relationship between factors (Xs) affecting a process and the output of that process (Y).
Design of Experiments or DOE

43. Tools for Six Sigma
A group of rows and columns, with one set of increments marked along the X (horizontal) axis and another set of increments marked along the Y (vertical) axis.
The purpose of using XY matrix is to study and understand the relationship between what you are putting into a process and what your customer is getting out of it.
The XY matrix allows the team to identify gaps, areas for improvement.
XY Matrix

44. Measurement System Analysis
Tools for Six Sigma
The goal of this tool is to ensure that your measurement system is statically confident – that it’s both accurate and precise each and every time it is used.
Undertaken during Measure phase, your MSA determines whether or not you can take a certain measurement and repeat or reproduce it among different people who take the same measurement.
Measurement System Analysis

45. Process Capability Tool
Tools for Six Sigma
Process capability tool is the measure of a process being able to meet specification requirements and fulfill customer CTQ needs on a long term basis.
Process Capability Tool

46. Tools for Six Sigma
Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct.
It’s a compass that points you directly to the vital few factors that are most affecting your process.
Hypothesis Testing

47. Failure Mode Effect Analysis
Tools for Six Sigma
The manner in which a part or process can fail to meet a specification, creating a defect or non-conformance, and the impact on the customer if that failure mode is not prevented or corrected.
Failure Mode Effect Analysis

48. Tools for Six Sigma
A detailed assessment and guide for maintaining all the positive changes you, your black belt, and the project team have made.
It ensures that all your analysis and efforts stay in effect and that you have information at your disposal to prevent backsliding or a return to less than optimal performance standard.
Control
Plan

49. Key Roles for Six Sigma
Includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation.
Executive Leadership
Are responsible for the Six Sigma implementation across the organization in an integrated manner. Champions also act as mentor to Black Belts.
Champions

50. Key Roles for Six Sigma
Identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma.
Master Black Belts
Operate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily focus on Six Sigma project execution.
Black Belts

51. Key Roles for Six Sigma
Are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.
Green Belts

52. Six Sigma Do’s Do communicate the commitment company-wide
Do demonstrate the commitment of company leaders
Do empower your key human resources
Do provide on-site mentoring for black belts

53. Six Sigma Do’s
Do be patient at the inception of you six Sigma initiative
Do claim and advertise early “wins”
Do benchmark
Do establish project baseline and goals

54. Thank you