1. Six Sigma - the Latest Approach in the Ongoing Development of Strategies for Business Improvement • Use of analytical methods has grown steadily for over 80 years • Statistical quality control (origins in 1920, explosive growth during WW II, 1950s) • Operations research (1940s) • Value engineering, zero defects (1950s, 1960s) • FDA, EPA in the 1970’s • TQM (Total Quality Management) movement in the 1980’s • Reengineering of business processes (late 1980’s) • Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)

2. Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact • A process is an organized sequence of activities that produces an output that adds value to the organization • All work is performed in (interconnected) processes • Easy to see in some situations (manufacturing) • Harder in others • Any process can be improved • An organized approach to improvement is necessary • The process focus is essential to six sigma

3. The original six sigma concept (Motorola)

4. Six-Sigma • A disciplined and analytical approach to process and product improvement • Specialized roles for people; GBs, BBs, MBBs, Champions, etc • Top-down driven (Champions from each business) • BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) • Involves a five step process (DMAIC) : • Define • Measure • Analyze • Improve • Control

5. Six-Sigma • DMAIC is closely related to the Shewhart cycle (variously called the Deming cycle, or the PDCA cycle) Walter A. Shewhart, 1891 - 1967

6. What makes it work? • Successful implementations characterized by: • Committed leadership • Use of top talent • Supporting infrastructure • Formal project selection process • Formal project review process • Dedicated resources • Financial system integration

7. Six Sigma • Similarities/differences with: • TQM • Largely a failure • Focus on training without getting business results • No top management commitment • Lack of a project focus • Advice from the “guru’s” of quality • Deming • Juran • Others (lesser gods)

8. W. Edwards Deming (1900 – 1993) • Taught engineering, physics in the 1920s, finished PhD in 1928 • Met Walter Shewhart at Western Electric • Long career in government statistics, USDA, Bureau of the Census • During WWII he worked with US defense contractors, deploying statistical methods • Sent to Japan after WWII to work on the census • The rest is history • The 14 points, the ‘deadly diseases” • Probably the most influential of the Gurus Deming, about 1980

9. Joseph M. Juran • Born in Romania (1904), immigrated to the US • Worked at Western Electric, influenced by Walter Shewhart • Emphasizes a more strategic and planning oriented approach to quality than does Deming • Juran Institute is still an active organization promoting the Juran philosophy and quality improvement practices

10. The Juran Trilogy • Planning • Control • Improvement • These three processes are interrelated • Control versus breakthrough • Project-by-project improvement

11. Statistical Thinking • Integral aspect of Six-Sigma • Fundamentally different from statistical methods • In the usual context, the definition needs to be broadened to include: • Operations research tools • Discrete event simulation • Etc.

12. The Future of Six Sigma • Three “generations” so far: • Generation I – focus on defect elimination (Motorola, 1987-1993) • Generation II – focus on cost reduction (GE, Allied Signal/Honeywell, 1994-1999) • Generation III – focus on value creation (Dupont, 2000-present) • What’s next – eight sigma, ten sigma?

13. Part of the future is integration of six sigma into the educational infrastructure • The ASU six sigma program • Graduate level program • Designed by IE and the ASU Committee on Statistics • Open to any ASU graduate student that satisfies the prerequisites: • calculus-based statistics course • linear algebra

14. Three statistics courses: • Design of Experiments (IEE 572) • Statistical Process Monitoring & Control (IEE 570) • Regression Modeling (IEE 578) • The Six Sigma Methods Course • Integration of the statistical tools • Soft skills (leadership principles, teams, facilitation, consulting, making presentations) • Lean methods overview • Transactional business & six sigma • Applied Projects – BB project

15. Graduates receive two credentials • The ASU Graduate Certificate in Statistics • The Ira A. Fulton School of Engineering BB Certificate • All courses may be taken on-line • Program is open to non-matriculating students • All 15 credits can be applied to the MEng degree in Quality/Reliability Engineering