1. CONFIDENTIAL Six Sigma – What, Why & How?

2. CONFIDENTIAL 2 What is Six Sigma? Six Sigma combines a system and set off tools designed to improve processes. Focuses on data and statistics rather than opinions. It can: –Improve efficiency (reduce waste – LEAN) –Fix broken processes (identify gaps) –Cut costs "Six Sigma is many things, and it would perhaps be easier to list all the things that Six Sigma quality is not. Six Sigma can be seen as: a vision; a philosophy; a symbol; a metric; a goal; a methodology." Geoff Tennant, from Six Sigma: SPC and TQM

3. CONFIDENTIAL 3 Six Sigma – Timeline / History Carl Frederick introduces the concept of a normal curve Carl Frederick introduces the concept of a normal curve 1855 Walter Shewart relates sigma variation to industrial processes; Shows that 3 sigma variation from the mean is where a process requires correction 1920 Dr. Mikel Harry, an engineer at Motorola, begins to experiment with problem solving through statistical analysis and starts development of Six Sigma methodology 1975 Dr. Harry, along with Richard Schroeder, also of Motorola, create a combination of change management and data-driven methodology, transforming Six Sigma from a quality management tool to a way of doing business 1975 - 1980 Many measurement standards developed (e.g., zero defects, cpk)

4. CONFIDENTIAL 4 Six Sigma – Timeline / History Bill Smith, an engineer at Motorola, coins the term “Six Sigma” 1980 Bob Galvin, Chairman of Motorola, pushes company to develop and embrace the methodology and the needed culture change to successfully implement this new rigorous business philosophy 1980 - 1985 Jack Welch of GE, and Larry Bossidy of Honeywell adopt Six Sigma methodology into their organizations 1980s - 1990s

5. CONFIDENTIAL 5 Goal of Six-Sigma Center Process on Target Reduce Variation Customer target Eliminate Defects Reduce Variation Customer target Defects GOAL Meet Customer Target and Specifications Customer target USL LSL USL LSLUSL Cost Taguchi Loss Function Customer target

6. CONFIDENTIAL 6 Goal of Six-Sigma Process Capability σ st Defects per Million Opportunities It Long Term Yield 2308,53769.15% 366,80793.32% 46,21099.38% 523399.98% 63.499.99966%

7. CONFIDENTIAL 7 Customer Orientated View Done right the first time “Critical to” Quality (CTQ) On-time “Critical to” Delivery (CTD) Something the customer is willing to pay for - AKA it adds value “Critical to” Cost (CTC)

8. CONFIDENTIAL 8 Six Sigma – Examines Inputs / Outputs and the relationship to the Process Process X1X1 X2X2 Y (VOP) “Correct” (In-Spec.) XnXn X3X3 Process Input Variables (PIV) Process Output Variables (POV) Customer’s Needs & Expectations (VOC) Critical To Satisfaction (CTS) Cost Quality Delivery Y = ƒ(X)

9. CONFIDENTIAL 9 Six Sigma – Who’s Who Project Champion – Resources / Project ID & Review Master Black Belt – Training / Mentoring / Large Projects Black Belt (BB) – Site Projects / GB supervision Green Belt (GB) – Dept Projects / Project suggestion Financial Analyst – Approving Financial benefits Process Owner – Resources / Sustain project gains Team Members – Experts on the process & Supports the GB/BB on projects (Do not confuse BB’s and GB’s with one of these)

10. CONFIDENTIAL 10 Six Sigma - Methodology Define Measure Analyze Improve Control í Identify Critical to Satisfaction Attributes (Quality, Delivery, Cost) í Problem Statement, Metric definition, defect definition, benefits í Understand process as is (Process Mapping) í High level Cause and Effect Diagram í Baseline current Process using the metric (“Y”) í Validated Measurement System í Data Collection and initial graphical representation of the “Y” í Performance Capability to “Y” í Identify all Critical “X’s” that drive “Y” í Prioritize “X’s” and identify top “X’s” í Quantify financial opportunities í Confirm Vital “X’s” í Propose Optimized Solution addressing critical “X’s” í Confirm Proposed solution í Risk Assessment Plan í Evaluate sustainability of solution (Mistake Proofing) í Standardize Process í Translate learning to other businesses D M A I C

11. CONFIDENTIAL 11 DMAIC - Define Project Charter –Statement identifying the problem –Decide on the main output metric (Big ‘Y’). –Definition of a defect –What the goal of the project is Establish resources Form project Team Begin Process Mapping (SIPOC) Define Customer’s needs (Critical to Satisfaction tree)

12. CONFIDENTIAL 12 DMAIC – Define – Charter (example) Problem Statement: Currently the cycle time for Dispensary data to reach Toxicology reporting is 21.5 days (median) against a target of 14 days. Defect Definition: CT greater than 7 days after necropsy Project Metric “Y”:. Data delivery CT Project Benefits: Reducing the time taken to deliver data and the report will aid in the on time production of study reports. Project Objective: To reduce the cycle time of the delivery of Dispensary data and the Formulations Analysis report by at least 50% VOC – Need data by 7 days after necropsy – now intended to achieve an average of this

13. CONFIDENTIAL 13 DMAIC - Measure Detailed Process Map Data collection (Baseline Data) Validate Measurement system (MSA) Cause and Effect Diagrams Should begin to identify ‘Critical X’s’

14. CONFIDENTIAL 14 DMAIC – Measure - MSA Validation of the measuring technique Consideration of error Repeatability Reproducibility Needed at all?!

15. CONFIDENTIAL 15 DMAIC – Measure – Types of Process Map Simple Flow Diagram Value Stream Map Swim Lane Diagram High Level Swim Lane Diagram of Study Start Up

16. CONFIDENTIAL 16 DMAIC – Measure – Detailed Process Map

17. CONFIDENTIAL 17 DMAIC – Measure – Data Collection What to Measure Type of Measure (Input or Output?) Type of Data (Continuous or Discrete? Oper. Def’n Data Collection form Sampling (How much? Rational Subgroups?) Baseline measure Use a Data Collection Plan What sort of data? Continuous (variable) vs Discrete (attribute)? Continuous Discrete $ $ Sparse Information Rich With Information

18. CONFIDENTIAL 18 DMAIC - Analyze “To determine and validate the root causation of the project team’s original problem” Use Statistics to show significant variation and differences Review by Champion or Master Black Belt If you’ve done the measure phase well, the analyse phase should point you in the direction of the improvements……. Define, Measure and Analyse Leading Too IMPROVEMENT!

19. CONFIDENTIAL 19 DMAIC - Analyze Analysis from 36 days: Delta = Date of check finish – End of in-life date. Stats show significant difference between Supervisor 4 and the rest – P value = 0.001, Supervisor’s Median = 5.0 – within target! Reflects process variation in map. (No other significant differences found) Sup 1 Sup 2 Sup 3 Sup 4

20. CONFIDENTIAL 20 DMAIC - Improve Generate and validate improvements Brainstorming exercises? Design of Experiment? (DOE) Future State Process Map Validation with a FMEA (Failure Modes Effect Analysis)? Collection of post improvement data

21. CONFIDENTIAL 21 DMAIC - Improve Future State Process Map Eliminated process variation Utilise other resources

22. CONFIDENTIAL 22 DMAIC - Control Analysis to show improvement(s) having a statistically significant effect Prepare and implement Control Plan Final review by Champion / Master Black Belt Hand over to Process Owner Bask in the glory of achievement

23. CONFIDENTIAL 23 DMAIC – Control – Control Plan To ensure that improvements stick and the process does not become poor again Use Control Charts to monitor Continue to gather data Realise cost savings – Financial Model

24. CONFIDENTIAL 24 Dispensary Projects Improvement of Dose Delivery Performance –Perception of poor performance by Animal House –Data showed Dispensary was meeting targets! –Improvements included: Better communication of due times to staff Labelling of doses with destination (colour coded) Departure Lounge

25. CONFIDENTIAL 25 Dispensary Projects Reduction in Materials Costs –Materials costs running above budget –New purchasing system + review of usage of some materials –A few alternative suppliers –Some articles bought at bulk for cheaper price Materials expenditure reduced to 0.5% below budget. Happy bosses!

26. CONFIDENTIAL 26 LEAN Six Sigma LEAN – Reduction of Waste in a Process All represent NON VALUE ADDED! Waste can take various forms: 1.Waiting 2.Overprocessing 3.Rework 4.Motion 5.overProduction 6.Inventory 7.Intellect 8.Transportation

27. CONFIDENTIAL 27 LEAN - Tools Waste Walks Value Stream Maps Loading Charts Poka Yoka Visual Controls 5S Kanban Spaghetti Charts SMED Tak Time Pull vs Push Time Observation 5 Why’s WIP

28. CONFIDENTIAL 28 LEAN – Tools – Five S’s Sort Straighten Shine MAY JUNE JULY StandardizeSustain

29. CONFIDENTIAL 29 Six Sigma Summary Follow a DMAIC structure with defined roles Data based system to improve processes. No more guesswork or opinions! Statistical analysis to prove improvements are having an effect Control to ensure improvements stick Implement to fix process or reduce waste