02 of 08 lean six sigma overview - perspectives of lean six sigma
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02 of 08 Lean Six Sigma Overview - Perspectives Of Lean Six SigmaFor access tovideos, blogs, discussions and experts refer http://network.kinduz.com/TRANSCRIPT
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Enabling Sustained Business Excellence
Lean Six Sigma Practice @ KINDUZ
Part 2 of 8 - Perspectives of Lean Six Sigma
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Historical Perspective
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1979: Motorola Starts Six
Sigma Initiative
1986: Motorola
Saves ~$16 Billion
1995: Jack Welch
Initiates Six Sigma in GE
1998: Allied Signal
Saves ~$1.2 Billion
2000: GE Saves ~$2
Billion Annually
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Mean vs. Variation
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Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
A defect is any value that falls outside Customer Specifications
Statistical Perspective
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Mean = 20
17 20 23
= 0.5(Upper Specification)
(6 s)
(s)
(6 s)
(Lower Specification)
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Quantitative Perspective
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99.99966% Right (6 Sigma)
No electricity for 1 hour every 34 years
1.7 incorrect operations per week
68 wrong prescriptions per year
99% Right (3.8 Sigma)
No electricity for 7 hours per month
5,000 incorrect operations per week
20,000 wrong prescriptions per year
σDefects per Million
Opportunities
1 697,672.15
2 308,770.21
3 66,810.63
4 6,209.70
5 232.67
6 3.40
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Quantitative Perspective
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Two Sigma
308,770 PPM
Three Sigma 66,810 PPM
Four Sigma 6,209 PPM
Five Sigma 233 PPM
World Class, Six Sigma 3.4 PPM
Airline fatality rate 0.52 PPM
Motorola 1990
Hospital fatality rate due to mistakesRestaurant billsDoctor prescriptionsPayroll processingAirline baggage handling
1:100
1:1,000,000
Sigma (s)
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Customers Perspective
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Six Sigma Starts and Ends with Customers
CUSTOMERS
What do the customers
expect out of the process?
What is my customers view of the process?
What is my customers
definition of a defect?
How do my customers
measure the process?
Are my
customers
referring and
buying again?
Is my customer
satisfaction increasing?
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Operational Perspective
Measure
ControlDefine
Analyze
Improve
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Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
Contact
10
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Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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