Introduction to Six Sigma[1]

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    Six sigmaIntroduction

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    expectationsAwareness with respect to originand history of Six Sigma.

    The utility and benefits

    Introduction to Six Sigma asmethodology

    The Six Sigma organization

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    contents

    Six Sigma Intro 15 min

    BPMS

    DMAIC

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    The term sigma is used to designate the distribution or spread about themean (average) of any process or procedure.

    For a process, the sigma capability (z-value) is a metric that indicates how well

    that process is performing. The higher the sigma capability, the better. Sigmacapability measures the capability of the process to produce defect-freeoutputs. A defect is anything that results in customer dissatisfaction.

    Two Meanings of Sigma

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    The term Six Sigma was coined by Bill Smith, an engineer with Motorola

    Late 1970s - Motorola started experimenting with problem solving throughstatistical analysis

    1987 - Motorola officially launched its Six Sigma program

    Origin of Six Sigma

    Motorolathe company that invented Six Sigma

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    Jack Welch launched Six Sigma at GE in Jan,1996

    1998/99 - Green Belt exam certification became the criteria for managementpromotions

    2002/03 - Green Belt certification became the criteria for promotion tomanagement roles

    The Growth of Six Sigma

    GEthe company that perfected Six Sigma

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    The GE model for process improvements

    The Growth of Six Sigma

    Define Measure Analyze Improve Control

    Combination of change management & statistical analysis

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    The Growth of Six Sigma

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    BPMSBusiness Process Management System

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    To understand the process; its mission, flow and scope

    To know the customers and their expectations

    To identify, monitor and improve correct performance measures for the process

    The Need of BPMS

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    The Methodology

    Define ProcessMission

    MapProcess

    VOC andVOP

    BuildPMS

    DevelopDashboar

    ds

    Identify

    Improvement

    Opportunities

    Define purposeof the process,its goal and its

    boundaries

    Identify Criticalto Quality andCritical to

    process

    Visualrepresentationof performance

    Map processsteps, identifyinput/ outputmeasures

    MSA, DCP,indicators andmonitors

    Serviceexcellence andprocessexcellence

    The DMAICcycle

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    DMAICSix Sigma Improvement Methodology

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    A logical and structured approach to problem solving and process improvement

    An iterative process (continuous improvement)

    A quality tool with focus on change management

    What is DMAIC ?

    EEffectiveness

    = QQuality

    Improvement

    x AAcceptance

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    The Approach

    PracticalProblem

    StatisticalProblem

    StatisticalSolution

    PracticalSolution

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    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

    Identify and state the practical problem

    Validate the practical problem by collecting data

    Convert the practical problem to a statistical one, definestatistical goal and identify potential statistical solution

    Confirm and test the statistical solution

    Convert the statistical solution to a practical solution

    Methodology

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    D

    VoC - Who wants the project and why ?

    The scope of project / improvement

    Key team members / resources for the project

    Critical milestones and stakeholder review

    Budget allocation

    Define

    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

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    M

    Ensure measurement system reliability

    Prepare data collection plan

    Collect data

    - Is tool used to measure the output variable flawed ?

    - Do all operators interpret the tool reading in the same way ?

    - How many data points do you need to collect ?

    - How many days do you need to collect data for ?

    - What is the sampling strategy ?

    - Who will collect data and how will data get stored ?- What could the potential drivers of variation be ?

    Measure

    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

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    A

    Understand statistical problem

    Baseline current process capability

    Define statistical improvement goal

    Identify drivers of variation (significant factors)

    Analyze

    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

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    A

    Root Cause Analysis (fish bone)

    A brainstorming tool that helps define and display major causes, sub causes androot causes that influence a process

    Visualize the potential relationship between causes which may be creating

    problems or defects

    ProblemBackbone

    Primary CauseSecondary Cause

    Root Cause

    Analyze Identify Drivers of Variation

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    A

    Control Impact Matrix

    A visual tool that helps in separating the vital few from the trivial many

    Vital FewHigh Control High Impact

    Cost IneffectiveLow Control High Impact

    Cost IneffectiveHigh Control Low Impact

    Trivial ManyLow Control Low Impact

    Control

    Impa

    ct

    Analyze Identify Drivers of Variation

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    A

    Pareto Chart

    Pareto principle states that disproportionately large percentage of defects arecaused due to relatively fewer factors (generally, 80% defects are caused by 20%factors)

    05

    10

    15

    20

    25

    30

    35

    L K A F B C G R D

    0%

    20%

    40%

    60%

    80%

    100%

    Frequency Cumulative Frequency

    Analyze Identify Drivers of Variation

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    A

    Process Map Analysis

    Visually highlights hand off points / working relationships between people,processes and organizations

    Helps identify rework loops and non value add steps

    VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

    Analyze Identify Drivers of Variation

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    A

    Hypothesis Testing

    A statistical tool used to validate if two samples are different or whether asample belongs to a given population

    Null Hypothesis (Ho) is the statement of the status quo

    Alternate Hypothesis (Ha) is the statement of difference

    Analyze Identify Drivers of Variation

    One way ANOVA

    Regression

    Homogeneity ofVariance Moods Median

    Chi-Square

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    I

    Map improved process

    Pilot solution

    Identify operating tolerance on significant factors

    Improve

    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

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    C

    Ensure measurement system reliability forsignificant factors

    Improved process capability

    Sustenance Plan

    - Is tool used to measure the input / process variables flawed ?

    - Do all operators interpret the tool reading in the same way ?

    - Statistical Process Control

    - Mistake Proofing

    - Control Plan

    Control

    DDefine

    MMeasure

    AAnalyze

    I

    Improve

    CControl

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    C

    Control Plan

    Have the new operating procedures and standards been documented ?

    What Statistical Process Control (SPC) tools will be used to monitor the processperformance ?

    Who will review the performance of the output variable and significant factorson closure of the project and how frequently ?

    What is the corrective action or reaction plan if any of the factors were to beout of control ?

    Control Sustenance Plan

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    Six Sigma Organization

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    Six Sigma - Three Dimensions

    ToolsOrganization

    Methodology

    Processvariation

    LSL USL

    Upper/Lowerspecification

    limits

    Regression

    Drivenby

    customerneeds

    Enabled by qualityteam.

    Led bySeniorMgmt

    Define Measure Analyze Improve Control

    VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

    Process Map Analysis

    0

    5

    10

    15

    20

    25

    30

    35

    L K A F B C G R D

    0%

    20%

    40%

    60%

    80%

    100%

    Frequency Cumulative Frequency

    Pareto Chart

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    The Quality Team

    Master Black Belt

    Black Belt Black Belt

    Green Belt

    Green Belt

    Green Belt

    - Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

    - Backbone of Six Sigma Org- Full time resource- Deployed to complex or high

    risk projects

    - Part time or full time resource- Deployed to less complex projectsin areas of functional expertise

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    Thank You

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