Six sigma

"THERE IS A BETTER WAY TO RUN YOUR
ORGANIZATION."

Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects (driving toward six
standard deviations between the mean and the nearest
specification limit) in any process – from manufacturing to
transactional and from product to service.
Six Sigma is a set of techniques, and tools for process
improvement.
The word Sigma is a statistical term that measures how
far a given process deviates from perfection.
WHAT IS SIX SIGMA?

 Since the 1920's the word “sigma”(s) has been used by
mathematicians and engineers as a symbol for achievement of
Measurement in product quality variation.
 In the mid-1980's engineers in Motorola in the USA used “Six
Sigma”(S) an informal name for an in-house initiative for
reducing defects in production processes, because it
represented a suitably high level of quality.
HISTORY
4

 In the late-1980's Motorola extended the Six Sigma methods
to its critical business processes, became a formalized
'branded' name for a performance improvement
methodology, i.e, beyond purely 'defect reduction’.
 In 1991 Motorola certified its first 'Black Belt' Six Sigma
experts, which indicates the beginnings of the formalization of
the accredited training of Six Sigma methods.
 By the year 2000, Six Sigma was effectively established as
an industry in its own right, involving the training,
consultancy and implementation of Six Sigma
methodology.
5

 A six sigma process is one in which 99.9999966% of the
products manufactured are statistically expected to be free
of defects (3.4 defects per million).
 Six Sigma's aim is to eliminate waste and inefficiency, thereby
increasing customer satisfaction by delivering what the customer is
expecting.
 Six Sigma is a data driven methodology, and requires accurate
data collection for the processes being analyzed.
 Six Sigma is about putting results on Financial Statements.
FEATURES OF SIX SIGMA
6

 Six Sigma follows a structured methodology, and has defined
roles for the participants.
 Six Sigma is a business-driven, multi-dimensional structured
approach for:
-Improving Processes
- Lowering Defects
- Reducing process variability
- Reducing costs
- Increasing customer satisfaction
- Increased profits
7

FATHER OF SIX SIGMA
Sir Bill Smith
“ the Father of six sigma”
8

KEY CONCEPTS OF SIX SIGMA
CRITICAL TO
QUALITY:
Attributes most
important to the
customer.
PROCESS
CAPABILITY:
What your
process can
deliver.
DEFECT: Failing
to deliver what
the customer
wants.
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.
9

KEY ELEMENTS OF SIX SIGMA
CUSTOMERS PROCESSES EMPLOYEES
Customers define
quality. They expect
performance,
reliability, competitive
prices, on-time
delivery, service,
clear and correct
transaction
processing and
more.
By understanding the
transaction lifecycle
from the customer's
needs and
processes, we can
discover what they
are seeing and
feeling.
Company must
provide opportunities
and incentives for
employees to focus
their talents and
ability to satisfy
customers.
10

ORGANIZATION OF SIX SIGMA
Leadership
Sponsor
Implementation Leader
Coach
Team Leader
Team member
Process Owner
11

EXTENDED DEFINITIONS OF ROLES IN
SIX SIGMA(BELT COLORS)
Black Belt Green BeltMaster Black Belt
The individual
designated as a
Black Belt has
completed a
thorough internal
training program
and has the
experience of
working on
several projects.
The Master Black
Belt is available
to answer
procedural
questions and to
resolve the
technical issues
that come up.
A Green Belt is
less experienced
than a Black Belt
but is cast in a
key role within
the team.
12

IS SIX SIGMA RIGHT FOR AN
ORGANIZATION?
Is the strategic course clear
for the company?
What other change efforts
or activities might conflict
with or support Six Sigma
initiative?
Is there a strong theme or
vision for the future of the
organization that is well
understood and consistently
communicated?
How effective are your
current improvement and
change management
systems?
Is the organization good at
responding effectively and
efficiently to new
circumstances?
Is the business healthy
enough to meet the
expectations of analysts
and investors?
13

There are generally two ways to generate projects:
PROJECT GENERATION FOR SIX
SIGMA
TOP-DOWN: This
approach is
generally tied to
business strategy
and is aligned with
customer needs.
The major weakness
is they are too broad
in scope to be
completed in a
timely manner
BOTTOM-UP: In this
approach, Black Belts
choose the projects
that are well suited for
the capabilities of
teams. A major
drawback of this
approach is that,
projects may not be
tied directly to strategic
concerns of the
management.
14

METHODOLOGY OF SIX SIGMA
DMAIC: It refers to a data-
driven quality strategy for
improving processes. This
methodology is used to
improve an existing
business process.
DMADV: It refers to a
data-driven quality strategy
for designing products and
processes. This
methodology is used to
create new product designs
or process designs in such
a way that it results in a
more predictable, mature
and defect free
performance.
Six Sigma has two key methodologies:
15

DMAIC METHODOLOGY
This methodology consists of the following five steps.
Define Measure Analyze
ImproveControl
16

 DEFINE: Define the problem or project goal that needs to
be addressed.
 MEASURE: Measure the problem and process from which
it was produced.
 ANALYZE: Analyze data and process to determine root
cause of defects and opportunities.
 IMPROVE: Improve the process by finding solutions to fix,
diminish, and prevent future problems.
 CONTROL: Implement, control, and sustain the
improvement solutions to keep the process on the new
course.
17

DMADV METHODOLOGY
This methodology consists of the following five steps.
Define Measure Analyze
DesignVerify
18

 DEFINE : Define the Problem or Project Goal that needs to
be addressed.
 MEASURE: Measure and determine customers’ needs and
specifications.
 ANALYZE: Analyze the process to meet the customer
needs.
 DESIGN: Design a process that will meet customers’
needs.
 VERIFY: Verify the design performance and ability to meet
customer needs. 19

The first step is Define. During the Define phase four major tasks
are undertaken.
DEFINE PHASE
1- Project Team Formation
4- Develop The SIPOC Process Map3- Develop A Project Charter
2- Document Customers Core
Business Processes
20

During the Measure Phase, the overall performance of the Core
Business Process is measured. There are three important parts
of Measure Phase:
MEASURE PHASE
Data Collection
Plan And Data
Collection
Data
Evaluation
FMEA 21

A data collection plan is prepared to collect the required data. This
plan includes what type of data needs to be collected, what are
the sources of data, etc.
You collect data from three primary sources:
Data Collection Plan And Data Collection
INPUT OUTPUTPROCESS
22

At this stage, the collected data is evaluated and sigma is
calculated. It gives an approximate number of defects.
-A Six Sigma defect is defined as anything outside of
customer specifications.
-A Six Sigma opportunity is the total quantity of chances for a
defect.
First we calculate Defects Per Million Opportunities (DPMO), and
based on that a is decided from a predefined table:
Number of defects
DPMO = -------------------------------------------------------- x 1,000,000
Number of Units X Number of opportunities
Data Evaluation
23

The food ordering delivery project team examines 50 deliveries
and finds out the following:
-Delivery is not on time (13)
-Ordered food is not according to the order (3)
-Food is not fresh (0)
So now, DPMO will be as follows:
13 + 3
DPMO = ----------- x 1,000,000 = 103,666.7
50 x 3
EXAMPLE
According to the Yield to Sigma Conversion Table, 106,666.7 defects
per million opportunities is equivalent to a sigma performance of between
2.7 and 2.8.
This is the method used for measuring results as we proceed through a
project. This beginning point enables us to locate the cause and effect of
those processes.
24

EXAMPLE
It refers to preventing defects before they occur. The FMEA
process usually includes rating possible defects, or failures, in
three ways:
 The likelihood that something might go wrong.
 The ability to detect a defect.
 The level of severity of the defect.
Failure Mode And Effects Analysis (FMEA)
Rate each of these three areas from 1 to10, with 1 being the
lowest FMEA level and 10 being the highest. The higher the level
,the more severe the rating. Hence, a high FMEA indicates the
need to devise and implement improved measuring steps within the
overall process. This would have the
effect of preventing defects.
26

There are five specific types of analyses that help to promote
the goals of the project.
ANALYZE PHASE
SOURCE ANALYSIS
PROCESS ANALYSIS
DATA ANALYSIS
RESOURCE ANALYSIS
COMMUNICATION ANALYSIS 27

This is also called root cause analysis. It attempts to find
defects that are derived from the sources of information or
work generation. After finding the root cause of the problem,
attempts are made to resolve the problem before we expect to
eliminate defects from the product.
SOURCE ANALYSIS
28

PROCESS ANALYSIS
-Analyzing the numbers to find out how well or poorly the
processes are working, compared to what's possible and what
the competition is doing.
-Process analysis includes creating a more detailed process
map, and analyzing the more detailed map, where the greatest
inefficiencies exist.
-The process refers to the precise movement of materials,
information, or requests from one place to another.
29

DATA ANALYSIS
-Many a times the data itself may have defect.
-There may be a case when products or delivery do not provide
all the needed information.
-Data is analyzed to find out defects and attempts are made to
resolve the problem before it is expected to eliminate defects
from the product.
30

RESOURCE ANALYSIS
-It is also needed to ensure that employees are properly trained in
all departments that affect the process.
-Resources include raw materials needed to manufacture,
process, and deliver the goods.
For example,
If the Accounting Department is not paying vendor bills on time
and, consequently, the vendor holds up a shipment of shipping
supplies, it becomes a resource problem.
31

COMMUNICATION ANALYSIS
-One problem common to most processes high in defects is poor
communication.
-The classic interaction between a customer and a retail store is
worth studying because many of the common communication
problems are apparent.
For example,
A vendor wants payment according to agreed-upon terms, but the
Accounting Department wants to make its batch processing
uniform and efficient. Between these types of groups, such
disconnects demonstrate the importance of communication
analysis.
32

IMPROVE PHASE
• Improvement breakthroughs,
•Identify high gain
alternatives,
•Select preferred approach,
•Design the future state,
•Determine the new sigma level,
•Perform cost/benefit analysis,
•Design
dashboards/scorecards, and
•Create a preliminary
implementation plan.
The objective of Improve phase is to identify:
33

CONTROL PHASE
-This is the phase where one ensures that the processes
continues to work well, produce desired output results, and
maintain quality levels.
-This phase is concerned with four specific aspects of control,
which are as follows.
Quality control Standardization
Control
methods and
alternatives
Responding
when defects
occur 34

TECHNICAL TOOLS
The technical tools are those tools which a Six Sigma team
member needs to master as they progress through any one of the
methodology.
The Cause-Effect Diagram
The Scatter Diagram
The Affinity Diagram
The Run Chart
The Control Chart
Critical to Quality CTQ tree
The Process Map
The Histogram
The Pareto Chart
The Process Summary Worksheet
35

Tool #1 – The Critical to
Quality (CTQ) Tree
· Identify the
customer of
the process
targeted for
improvement.
· Identify the
need of the
customer.
· Identify the
first level of
requirements
of the need.
· Drill down to
more detailed
level(s) of the
requirement if
necessary.
The steps in creating a CTQ tree are as follows:
36

Tool #2 – The Process Map
-A process map is a picture of the current steps in the process
targeted for improvement.
A process map has five major categories of work:
The identification of the suppliers of the process,
The inputs the suppliers provide,
The name of the process,
The output of the process,
The customers of the process.
38

Tool #3 – Histogram
Data is of two types - Discrete data (go/no go, fail or pass) and
Continuous data(time, height etc.).
The data should be organized into graphs or charts, which makes it
easier to understand, what the data is saying about the process.
39

Tool #4 – The Pareto Chart
When the data is discrete, Pareto chart is used.
PARETO PRINCIPLE: An Italian economist Vilfredo Pareto, in the sixteenth
century proved mathematically that 80 percent of the world's wealth was
controlled by 20 percent of the population.
This 80-20 rule eventually proved applicable in arenas other than
economics.
40

Tool #5 – The Process
Summary Worksheet
The process summary worksheet is a "roll-up" of the sub process map
indicating which steps add value in the process and which steps don't
add value.
41

Tool #6 – The Cause-Effect
Diagram
This tool captures all the ideas of the project team relative to what they
feel are the root causes behind the current sigma performance and
finally help in finding a root cause of the problem.
FISH-BONE DIAGRAM
42

Tool #7 – The Scatter Diagram
Once ideas have been prioritized after use of the cause-effect
diagram, the most important thing the project team does is to validate
the remaining ideas with fact and data.
43

Tool #8– The Affinity Diagram
An affinity diagram is used to help sort and categorize a large
number of ideas into major themes or categories.
 It is especially useful when the team is ready to brainstorm
solutions.
44

Tool #9– The Run Chart
The run chart is similar to a camcorder, recording some process
element over time.
45

Tool #10– The Control Chart
Similar to a run chart, a control chart uses the data from a run chart
to determine the upper and lower control limits.
These limits are mathematically calculated and indicated by dotted
lines.
46

BENEFITS OF SIX SIGMA( )
.Generates sustained success
· Sets a performance goal for everyone
· Enhances value to customers
· Accelerates the rate of improvement
· Promotes learning and cross-pollination
· Executes strategic change
47

MYTHS ABOUT SIX SIGMA( )
· Six Sigma is only concerned with reducing defects.
· Six Sigma is a process for production or engineering.
· Six Sigma cannot be applied to engineering activities.
· Six Sigma uses difficult-to-understand statistics.
· Six Sigma is just training.
48

“COMPANIES” WHO HAVE
IMPLEMENTED SIX SIGMA( )
3M.
Amazon.com.
BAE Systems.
Bank of America.
BD Medical.
Bechtel Corporation.
Boeing.
Caterpillar Inc.
Telco
Tisco
Ford
Visteon
Wipro
and many more…….!!! 49

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