# six sigma introduction

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- 1. INTRODUCTION TO SIX SIGMA HAWTHORN 6SIGMA QUALITY SOLUTIONS [email_address] [email_address] WWW.HSQS.IN

2. TOPICS (SESSION 1)

- Understanding Six Sigma

- History of Six Sigma

- Six Sigma Methodologies & Tools

- Roles & Responsibilities

- How Six Sigma can be Beneficial forYou

3. What is Six Sigma ? The term " Sigma " is used to designate the distribution or spread about the mean (average) of any process or procedure. For a business or manufacturing process, the sigma value is a metric that indicates how well that process isperforming. The higher the sigma value, the better. Sigma measures the capability of the process to perform defect-free-work. Adefectis anything that results in customer dissatisfaction. 4. With Sig Sigma, the common measurement index is "defects-per-unit," where a unit can be virtually anything--- a component, piece of material, line of code, administrative form, time frame, distance, etc. The Sigma value indicates how often defects are likely to occur. The higher the sigma value, the less likely a process will produce defects. As sigma increases, costs go down, cycle time goes down, and customer satisfaction goes up. What is Six Sigma ? 5. SIX SIGMA IS. . .

- A performance goal, representing 3.4 defects for every million opportunities to make one.

- A series of tools and methods used to improve or design products, processes, and/or services.

- A statistical measure indicating the number of standard deviations within customer expectations.

- A disciplined, fact-based approach to managing a business and its processes.

- A means to promote greater awareness of customer needs, performance measurement, and business improvement.

6.

- Features that set Six Sigma apart from previous quality improvement initiatives include:

- A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.

- An increased emphasis on strong and passionate management leadership and support.

- A special infrastructure of "Champions," "Master Black Belts," "Black Belts," "Green Belts", etc. to lead and implement the Six Sigma approach.

- A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.

7. WHATS IN A NAME?

- Sigma is the Greek letter representing the standard deviation of a population of data.

- Sigma is a measure ofvariation

- (the data spread)

8. WHAT DOES VARIATION MEAN?

- Variation means that aprocess does not producethe same result (the Y)

- every time.

- Some variation will exist inall processes.

- Variation directly affects customer experiences.

Customers donotfeel averages! 9. MEASURING PROCESS PERFORMANCE THE PIZZA DELIVERY EXAMPLE. . .

- Customers want their pizzadelivered fast!

- Guarantee = 30 minutes or less

- What if we measured performance and found an average delivery time of 23.5 minutes?

- On-time performance is great, right?

- Our customers must be happy with us, right?

10. HOW OFTEN ARE WE DELIVERING ON TIME? ANSWER:LOOK ATTHE VARIATION!

- Managing by the average doesnt tell the whole story.The averageand the variationtogether show whats happening.

s 0 10 20 30 40 50 x 30 min. or less 11. REDUCE VARIATION TO IMPROVE PERFORMANCE HOW MANY STANDARDDEVIATIONS CAN YOUFIT WITHINCUSTOMEREXPECTATIONS?

- Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s).

s 0 10 20 30 40 50 x 30 min. or less 12. MANAGING UP THE SIGMA SCALE Sigma % Good % Bad DPMO 1 30.9% 69.1% 691,462 2 69.1% 30.9% 308,538 3 93.3% 6.7% 66,807 4 99.38% 0.62% 6,210 5 99.977% 0.023% 233 6 99.9997% 0.00034% 3.4 13. EXAMPLES OF THE SIGMA SCALE

- In a world at 3 sigma. . .

- There are 964 U.S. flight cancellations per day.

- The police make 7 false arrests every 4 minutes.

- In MA, 5,390 newborns are dropped each year.

- In one hour, 47,283 international long distance calls are accidentally disconnected.

- In a world at 6 sigma. . .

- 1 U.S. flight is cancelled every 3 weeks.

- There are fewer than 4 false arrests per month.

- 1 newborn is dropped every 4 years in MA.

- It would take more than2 years to see the same number of dropped international calls.

14. TOPICS

- Understanding Six Sigma

- History of Six Sigma

- Six Sigma Methodologies & Tools

- Roles & Responsibilities

- How Six Sigma can be Beneficial forYou.

15. THE SIX SIGMA EVOLUTIONARY TIMELINE 1736 :French mathematician Abraham de Moivre publishes an article introducing the normal curve. 1896 :Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution inCours dEconomie Politique . 1924 :Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1941 :Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for brainstorming. 1949 :U. S. DOD issues Military Procedure MIL-P-1629,Procedures for Performing a Failure Mode Effects and Criticality Analysis . 1960 :Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1818 :Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1970s :Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality. 1986 :Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola 1994 :Larry Bossidy launches Six Sigma at Allied Signal. 1995 :Jack Welch launches Six Sigma at GE. 16. SIX SIGMA COMPANIES 17. SIX SIGMA AND FINANCIAL SERVICES 18. TOPICS

- Understanding Six Sigma

- History of Six Sigma

- Six Sigma Methodologies & Tools

- Roles & Responsibilities

- How Six Sigma can be Beneficial forYou

19. DMAIC THE IMPROVEMENT METHODOLOGY D efine M easure A nalyze I mprove C ontrol Objective : DEFINE the opportunity Objective : MEASURE current performance Objective : ANALYZE the root causes of problems Objective : IMPROVE the process to eliminate root causes Objective : CONTROL the processto sustain the gains.

- Key Define Tools :

- Cost of Poor Quality (COPQ)

- Voice of the Stakeholder (VOS)

- Project Charter

- As-Is Process Map(s)

- Primary Metric (Y)

- Key Measure Tools :

- Critical to Quality Requirements (CTQs)

- Sample Plan

- Capability Analysis

- Failure Modes and Effect Analysis (FMEA)

- Key Analyze Tools :

- Histograms, Boxplots, Multi-Vari Charts, etc.

- Hypothesis Tests

- Regression Analysis

- Key Improve Tools :

- Solution Selection Matrix

- To-Be Process Map(s)

- Key Control Tools :

- Control Charts

- Contingency and/or Action Plan(s)

20. DEFINE DMAIC PROJECT WHAT IS THE PROJECT?

- What is the problem?The problem is theOutput (a Y in a math equation Y=f(x1,x2,x3) etc).

- What is the cost of this problem

- Who are the stake holders / decision makers

- Align resources and expectations

Project Charter Voice of the Stakeholder Six Sigma $ Cost ofPoorQuality 21. DEFINE CUSTOMER REQUIREMENTS WHAT ARE THE CTQS? WHAT MOTIVATES THE CUSTOMER? Voice of the Customer Key Customer Issue Critical to Quality SECONDARY RESEARCH PRIMARY RESEARCH Surveys OTM Industry Intel Listening Posts MarketData Industry Benchmarking Focus Groups Customer Service Customer Correspondence Obser-vations 22. MEASURE BASELINES AND CAPABILITY WHAT IS OUR CURRENT LEVEL OF PERFORMANCE?

- Sample some data / not all data

- Current Process actuals measured against the Customer expectation

- What is the chance that we will succeed at this level every time?

23. ANALYZE POTENTIAL ROOT CAUSES WHAT AFFECTS OUR PROCESS? y = f (x 1 , x 2 , x 3. . . x n ) Ishikawa Diagram (Fishbone)Six Sigma 24. ANALYZE VALIDATED ROOT CAUSES WHAT ARE THE KEY ROOT CAUSES? y = f (x 1 , x 2 , x 3. . . x n ) Critical Xs Process Simulation Data Stratification Regression Analysis Six Sigma 25. IMPROVE POTENTIAL SOLUTIONS HOW CAN WE ADDRESS THE ROOT CAUSES WE IDENTIFIED?

- Address the causes, not the symptoms.

Decision y = f (x 1 , x 2 , x 3. . . x n ) Critical Xs Evaluate Clarify Generate Divergent|Convergent 26. IMPROVE SOLUTION SELECTION HOW DO WE CHOOSE THE BEST SOLUTION? Solution Implementation Plan Solution Selection Matrix Solution Sigma Time CBA Other Score Time Quality Cost Six Sigma Nice Try Nice Idea X Solution RightWrong Implementation BadGood 27. CONTROL SUSTAINABLE BENEFITS HOW DO WE HOLD THE GAINS OF OUR NEW PROCESS?