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Six Sigma

Six Sigma. By: Tim Bauman April 2, 2007. Overview. What is Six Sigma? Key Concepts Methodologies Roles Examples of Six Sigma Benefits Criticisms. What is Six Sigma?. Improve customer satisfaction by producing virtually free processes and products

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Six Sigma

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  1. Six Sigma By: Tim Bauman April 2, 2007

  2. Overview • What is Six Sigma? • Key Concepts • Methodologies • Roles • Examples of Six Sigma • Benefits • Criticisms

  3. What is Six Sigma? • Improve customer satisfaction by producing virtually free processes and products • To achieve Six Sigma a process must not produce more than 3.4 defects per million opportunities • 6 standard deviations between the mean and the nearest specification limit • Developed by Bill Smith at Motorola in 1986 as a way to standardize the way defects are counted

  4. Key Concepts • Critical to Quality: Attributes most important to the customer • Defect: Failing to deliver what the customer wants • Process Capability: What your process can deliver • Variation: What the customer sees and feels • Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels • Design for Six Sigma: Designing to meet customer needs and process capability

  5. Methodologies • DMAIC • Improvement system for existing processes • DMADV • Improvement system for developing new processes or products

  6. Methodologies: DMAIC • Define – “the project goals and deliverables for both internal and external customers” • Measure – “the process to determine current performance” • Analyze – “and determine the root cause(s) of the defects” • Improve – “the process by eliminating defects” • Control – “future process performance”

  7. Methodologies: DMAIC • Define • Identify the Critical To Quality characteristics • Create a map of the process to be improved with defined and measurable, deliverables, and goals • Tools: Benchmark, Baseline, Voice of the Customer and Business, Quality Function Deployment, Process Flow Map

  8. Methodologies: DMAIC • Measure • Establish valid and reliable metrics to monitor the progress of the project • Input, process, and output indicators are identified • Determine the impact of defects from each input on the CTQs • Once reasons for input failure are determined, preventative actions are put into place • Tools: Defect Metrics, Data Collection, Sampling Techniques

  9. Methodologies: DMAIC • Measure • Defects Per Million Opportunities (DPMO) = (Total Defects / Total Opportunities) * 1,000,000 • Defects (%) = (Total Defects / Total Opportunities)* 100% • Yield (%) = 100 - %Defects • Process Sigma (type this formula into Excel): =NORMSINV(1-(total defects / total opportunities))+1.5 http://www.isixsigma.com/sixsigma/six_sigma_calculator.asp

  10. Methodologies: DMAIC • Analyze • Identify the gap between existing performance and desired performance • Root Cause Analysis – finding the causes of defects • Process Improvement Scenarios • Tools: Cause and Effect diagrams, Decision and Risk Analysis, Control Charts

  11. Methodologies: DMAIC • Improve • Create new improvement solutions for each root cause • Cost/Benefit Analysis • What happens if improvements are not made or improvements take too long to implement • Process experimentation and simulation • Implement and adapt to these solutions and the results from these changes

  12. Methodologies: DMAIC • Control • A monitoring plan with proper change management methods • Implement the lesson learned • Put tools in place to maintain process improvement gains • Training • Document the project • New procedures and lessons learned are maintained and give a solid example • Identify future Six Sigma improvement opportunities

  13. Methodologies: DMAIC • Extra Step: Synergize • Integrate and institutionalize the improvements throughout the whole organization • Create a learning organization • Multiply the gains achieved by Six Sigma

  14. Methodologies: DMAIC • Checklists http://www.americanheart.org/presenter.jhtml?identifier=3039772

  15. Methodologies: DMADV • First three steps are the same • Define – “the project goals and deliverables for both internal and external customers” • Measure – “and determine customer needs and specifications” • Analyze – “the process options to meet the customer needs” • Design – “the process to meet the customer needs” • Verify – “the design performance and ability to meet customer needs”

  16. Methodologies: DMADV • Design • Specification Limits • Simulation model • Test Plan • Measurement and Control Plan

  17. Methodologies: DMADV • Verify • Pilot runs • Training • Implementing the processes • Document the processes

  18. Roles • Yellow Belt or Team Member • Professional who works on project • Awareness of Six Sigma, but no training

  19. Roles • Green Belt • Part time professional • Receives direction from Black Belts • Works with a Black Belt’s project or leads smaller projects • Two weeks of training in methods and basic statistical tools

  20. Roles • Black Belt • Full time professional • Team Leader on Six Sigma projects • Four to Five weeks of training in: • Methods • Statistical tools • Team skills

  21. Roles • Master Black Belt • Expert in Six Sigma methods and tools • Mentors other belts on complex issues • Responsible for training others to the Green and Black belt levels • Assists the Champion with deployment

  22. Roles • Champion • Middle or Senior level executive who helps a specific Six Sigma project • In charge of making sure resources are available • Resolves cross-functional issues

  23. Roles • Leader • Senior level executive responsible for implementing Six Sigma throughout the business • Sponsor • Senior executive in charge of the overall Six Sigma Initiative

  24. Examples of Six Sigma • Current average industry runs at 4 sigma • Domestic airline flights run at a rate higher than 6 sigma • Non competitive companies typically run at a sigma level of 2

  25. Examples of Six Sigma • Companies currently using Six Sigma • Motorola • General Electric • Allied Signal • Citibank • Microsoft • Many others

  26. Benefits • Save Money • Black Belts save companies approximately $230,000 per project • General Electric has estimated benefits of $10 billion in the first five years of its implementation • Raise customer satisfaction

  27. Benefits • Save lives • Health Care • Intensive care results from 53 minutes to 22 minutes • Reduce error rates for patient controlled pumps to administer pain medication • Airplane Industry

  28. Criticism • Cost of training at Motorola • Green Belt Certification: $2,950 • Black Belt Certification: $12,950 • Cost of infrastructure • Creating the roles and responsibilities

  29. Criticism • Six Sigma does not always work • Need active leadership • Align with organizational strategy • Need aggressive performance tracking and accountability for results • Green and Black belts need to be process oriented and willing to learn and use statistical tools • Pay more attention to steps than the actual result

  30. Sources [1] Functional Methods. “DMADV (Define, Measure, Analyze, Design, Verify) Roadmap.” 2004. Retrieved 25 March 2007 <http://www.functionalmethods.com/DMADV%20Roadmap.pdf>. [2] General Electric. “What is Six Sigma?” 2007. Retrieved 23 March 2007 <http://www.ge.com/en/company/companyinfo/quality/whatis.htm>. [3] ISixSigma LLC. “Six Sigma – What is Six Sigma.” 2007. Retrieved 24 March 2007 <http://www.isixsigma.com/sixsigma/six_sigma.asp>. [4] Motorola, Inc. “Motorola Univerisity, Six Sigma in Action.” 2007. Retrieved 22 March 2007 <http://www.motorola.com/motorolauniversity.jsp>.

  31. Sources [5] Peterka, Peter. “The DMAIC Method in Six Sigma.” 25 October 2007. Retrieved 25 March 2007. <http://www.buzzle.com/editorials/10-24-2005-79640.asp>. [6] “Roles.” 2007. Retrieved 25 March 2007 <http://www.onesixsigma.com/node/2485>. [7] Siviy, Jenannine. “Six Sigma.” 11 January 2007. Retrieved 22 March 2007 <http://www.sei.cmu.edu/str/descriptions/sigma6_body.html>.

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