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Copyright © 2001-2005Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.
Six Sigma Fundamentals
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Copyright © 2001-2005
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.
Six Sigma Fundamentals Pg 1
Module Objectives
By the end of this module, the participant should be able to:
• Describe the Six Sigma approach to solving problems
• Describe phases of the Six Sigma Breakthrough Strategy®
• Explain organizational Six Sigma Roles and Responsibilities
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Six Sigma Fundamentals Pg 2
What Is Sigma?
• Letter in the Greek alphabet
• Statistical unit of measure
• Metric
• Benchmark
- Measure of variation
- Measure of quality
- Measure of process capability
- Measure of performance
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Six Sigma Fundamentals Pg 3
What Does Six Sigma Mean To You?
•
•
•
•
•
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Six Sigma Fundamentals Pg 4
Six Sigma Is A Business Philosophy
“Six Sigma is not an improvement program. It is instead a business
philosophy that employs a step-by-step approach to reducing variation,increasing quality, customer satisfaction, and, in time, market share.”
“Six Sigma is about the quality of business, not the business of quality.”
-
Dr. Mikel Harry
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Six Sigma Fundamentals Pg 5
Six Sigma Is Different From Past QualityPrograms In That It…
• Aligns problem solvers to Customer needs and Business Goals driven from
the top
• Is an investment to develop employees with a problem solving skill set that
is acquired through:
- Comprehensive training
- Continuous application of methodology on consumer driven projects to
- Delivery of sustainable and statistically validated business results
• Is a systematic approach that monitors projects to successful closure
• Is data and metric driven
• Improves business measurements
• Improves competitiveness
…and is bottom line focused and led by executives to ensure success.
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Six Sigma Fundamentals Pg 6
Six Sigma Benefits
• Enables success in a world of intensified competition and declining
margins
• Ensures the quality necessary to satisfy increasingly demanding
customers
• Provides the means to become the best in the world
• Establishes a standard language and approach across all functions and
lines of business
• Develops employees with a comprehensive problem solving skill set on
the job
Develops Employees and it is directly linked with Customer needs andbusiness objectives.
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Six Sigma Fundamentals Pg 7
Premise Of Six Sigma
Consumer and Data-driven methodology:
- In-Process measurements linked to the Voice of the Customer
- Focused on strategic or core processes for Customer and
Employee Satisfaction to:
- Identify, quantify, eliminate and control key sources of
variation and defects
-Drive Continuous Improvement
Variation and defects are costly and non-value add.
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Six Sigma Fundamentals Pg 8
Value Defined By The Customer
• Customer defines value:
- For something to add value, it must
• Change the product or provide a service
• Meet quality requirements
• Be available when the customer needs it
• Be something the customer will pay for
• Six Sigma components of value:
- Cost – What the customer will pay, what is our margin
- Quality – What is the cost of poor quality
- Delivery – Characteristics of our process that impact delivery
Business survival is based on howwell we satisfy the customer.
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Six Sigma Fundamentals Pg 9
Process Focus Of Six Sigma
• Inputs (X1
, X2
. . . Xn
)
• Independent
• Cause
• Control
• Output
• Dependent on Input
• Effect
• Monitor
ProcessY = f(x)
X Y
Determining the critical Xs andcontrolling the Xs to guarantee the Ys.
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Six Sigma Fundamentals Pg 10
How Y=f(x) Relates To A Process
Process
X1
X2
YVoice Of Process
(VOP)
“Correct”
(Customer Acceptance Standards –> “In Spec”)
Xn
X3
Process Input
Variables
(PIV)
Process Output
Variables
(POV)
Customer’s
Needs and
ExpectationsVoice Of Customer
(VOC)
Critical To Satisfaction
(CTS)
Quality Cost Delivery
Control the INPUTS to achieve the desired OUTPUTSthat satisfy our customers’ expectations.
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Six Sigma Fundamentals Pg 11
“Voice Of Customer” vs.“Voice Of Process”
Defects
Voice Of Process
Inadequate
Design
Margin
Inadequate
Process
CapabilityUnstable/Unpredictable
Process
Defects Acceptable
LSL USL
Voice Of Customer
Voice Of Process must be predictable and acceptable over time todeliver the Voice Of Customer.
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Six Sigma Fundamentals Pg 12
GOAL
VOP Performance Relative to VOC:Getting To Six Sigma
Process Capability
Sigma
Defects per MillionOpportunities
Long Term Yield
2 308,537 69.15%
3 66,807 93.32%
4 6,210 99.38%5 233 99.98%
6 3.4 99.99966%
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Six Sigma Fundamentals Pg 13
Goals Of Six Sigma
Center Stable Process on TargetEliminate Defects
Customer target
Meet Customer Target
and Specifications
Customer target
Stabilize Process, Reduce VariationEliminate Defects
Customer target
Defects Defects
GOAL
USLLSL
LSLLSL USL USL
Defects
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Six Sigma Fundamentals Pg 14
Can We Tolerate Variability?
• There will always be variability present in any process
• We can tolerate variability if:
- The process is stable over time
- The process is on target (or at nominal)
- The total variability is predictable and acceptable within the
customer driven process specifications
C o s t
C o s t
LSL USLNom
LSL USLNom
Traditional
View Acceptable
Cost Function
View
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Six Sigma Fundamentals Pg 15
LSL USL
Six Sigma Performance:Robustness to Process Shift
In a Six Sigma process, Customer Satisfaction andBusiness Objectives are robust to process shifts.
6 Sigma Process
Average = 0
StDev. = 1
Tolerance = +/- 6
-3 -2 -1 0 1 2 3 -4 -5 -6 4 5 6
Shift the average 1.5
If a 6 process shifts 1.5 to the
right, 3.4 Defects per Million
Opportunities are created on the
right (note there are essentiallyzero defects on the left).
3 Sigma Process
Average = 0StDev. = 2
Tolerance = +/- 6
-2 0 2
Shift the average 1.5
-4 -6 4 6
If a 3 process shifts 1.5 to the
right, 66,807 Defects per Million
Opportunities are created on the
right (note there are still 1,300
DPMO on the left side).
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Six Sigma Fundamentals Pg 16
Why Are Most Companies At 3-4 Sigma?
• Past success has
bred arrogance
• Dependence on inspection and
rework
• Reliance on trial and error
• Non process focused
• Non-data driven decisions
• Rewarding fire –
fighting behavior
• Little focus on
quality metrics
• Functional silos
inhibit collaboration
3 S i g m a
4 S i g m a
5 S i g m a
6 S i g m a
B
A
R
R
IE
R
Most companies have
not achieved a QualityCulture
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Six Sigma Fundamentals Pg 17
Quality Culture
Needed to Make the
Leap
Taking The Breakthrough Strategy Leap
• Defects as opportunities
• Belief in
the methodology
• Openness to challenge “statusquo”
• Data Driven Decisions
• Process Focused
• Quality metrics focused
• New skills, tools,
and information
• New behaviors
for management
• Cross Functional 3 S i g m a
4 S i g m a
5 S i g m a
6 S i g m a
B
A
R
RI
E
R
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Six Sigma Fundamentals Pg 18
Is 99% Good Enough?
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
20,000 lost articles of mail per
hour (based on 2,000,000/hr)
7 articles lost per hour
Unsafe drinking water for
almost 15 minutes each day
1 unsafe minute every
7 months
5,000 incorrect surgicaloperations per week
1.7 incorrect operationsper week
2 short or long landings daily at
an airport with 200 flights/day
1 short or long landing
every 5 years
2,000,000 wrong drug
prescriptions each year
680 wrong prescriptions
per year
No electricity for almost 7 hours
each month
1 hour without electricity every
34 years
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Six Sigma Fundamentals Pg 19
Will Inspection Help?
Task: You have 60 seconds to count the number of times the 6th letter of
the alphabet appears in the following text:
The necessity of training farm hands for first class farms in the
fatherly handling of farm livestock is foremost in the eyes of farmowners. Since the forefathers of the farm owners trained the farm
hands for first class farms in the fatherly handling of farm
livestock, the farm owners feel they should carry on with the family
tradition of training farm hands of first class farmers in the fatherly
handling of farm livestock because they believe it is the basis of good fundamental farm management.
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Six Sigma Fundamentals Pg 20
DPMO
2 308,537
3 66,8074 6,2105 2336 3.4
(Distribution shifted ± 1.5)
How far can inspection get us ?
Getting to Six Sigma
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Six Sigma Methodologies and theSix Sigma Breakthrough Strategy ®
Si Si M th d l i
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Six Sigma Fundamentals Pg 22
DEFINE
ANALYZE
IMPROVE
CONTROL
MEASURE
REPLICATE
Design
Change
Six Sigma Methodologies:DMAICR and DCOV
Variability and defect reduction of
DMAICR (Find and Fix):
DEFINE
Optimize
Verify
Characterize
DCOV (Failure Mode Avoidance):Failure mode avoidance of existing/new processes of products and services to meet/exceed customer
expectationsexisting processes of products and services
New
Design
C S
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Six Sigma Fundamentals Pg 23
Define:
Identify GAP to Critical To CustomerSatisfaction (CTS) Characteristics &performance
Measure:
Create/validate measurement system tomeasure GAP.
Analyze: Identify critical sources of variation fromperformance objectives which result in GAP
Improve:
Reduce/Eliminate sources of variation throughImprovement Actions to reduce/eliminate GAP
Control:
Implement process controls & verify they areinstitutionalized
Replicate:Improvement actions are replicated to similarprocess where appropriate
DEFINE
ANALYZE
IMPROVE
CONTROL
MEASURE
REPLICATE
Design
Change
DMAICR Problem Solving Methodology:Find and Fix
DCOV
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Six Sigma Fundamentals Pg 24
Design
Change
D
C
O
V
The 12 Step Breakthrough Strategy
1. Select the Critical to Customer Satisfaction
Characteristic (CTS)
2. Define Performance Standards
3. Validate Measurement System
4. Establish Baseline Process Stability & Capability
5. Define Performance Objectives
6. Identify Variation Sources
7. Screen Potential Causes
8. Discover Variable Relationships
9. Establish Operating Tolerances & Implement
Improvements
10. Validate Measurement System
11. Determine Final Process Capability
12. Implement Process Controls & Replicate
DEFINE
ANALYZE
IMPROVE
CONTROL
MEASURE
REPLICATE&
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Six Sigma Fundamentals Pg 25
DMAICR Funnel Effect
Optimized Process
10-15 PIVs
8-10 PIVs
1-6 KPIVs
1-6 KPIVs
30-50 Inputs (X or PIV)
Define
Measure
Analyze
Improve
Control & Replicate
PIV = Process Input variable = an X
KPIV = Key Process Input Variable
The problem (defect(s)) that we are trying to solve
Sources of defect(s) and variability and baseline current state process
Screen for potential root causes/sources of defect(s) and variability
Future State Process with statistically validated root cause(s), KPIV(s)
KPIV(s) or critical Xs on new process to sustain gains and replicate
DCOV M th d l F il M d A id
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Six Sigma Fundamentals Pg 26
DEFINE
Optimize
Verify
Characterize
Define:
Synthesize customerneeds/wants & product/processhistory into objective CTSmeasurable characteristictargets
Characterize:Generate & select designs tomeet CTS measurablecharacteristic targets.
Optimize:
Identify best design for robustPerformance & manufacturability
Verify:
Validate with data that thebest design meets/exceeds CTSmeasurable characteristictargets with hardware
DCOV Methodology - Failure Mode Avoidance
DCOV Methodology training is available as a separate course
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Six Sigma Roles andResponsibilities
Si Si R l A d R ibiliti
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Six Sigma Fundamentals Pg 28
Six Sigma Roles And Responsibilities
All Employees
• Owns vision, direction,
integration, results
• Apply Breakthrough
Strategy to specific
projects, lead and
direct teams to
execute
projects
• Trains and coaches
Black Belts, Green
Belts and Leaders
• Identifies and
scopes projects
• Identifies, coaches
and develops
Black Belts
• Provides day-to-day
management and direction
of Six Sigma program
• Understand vision
• Apply concepts to their
job and work area
• Leads change
• Developsdeployment and
Strategy
• Supports cultural
change
Executive
Green Belts
Black Belts
Master Black BeltProject Champion
Deployment
Champion
Senior Champion
Process Owner
• Owns business process
• Ensures changes are sustained
• Support Black Belts onproject teams
• Work localized projects with
support from Black Belts
R l d R ibiliti f Bl k B lt
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Six Sigma Fundamentals Pg 29
Roles and Responsibilities of a Black Belt
• Lead team(s) to execute projects to successful completion
- Represent the Voice of the Customer (Quality Culture)- Quantify project scope and business impact
- Identify project resources required for success (project management)
• Align cross functional support and commitment from management to secure
participation of key resources required to drive successful business results
• Form team- Technical Six Sigma coach and teacher
• Reinforces the application and discipline of the 6-Sigma methodology
• Determine appropriate use of tools to apply
- Deliver results aligned to Customers requirements/Business Plan objectives
- Communicate progress and replication opportunities to management• Influence management and peers to drive a Quality Culture and role model the
behavior
Obj ti R i
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Six Sigma Fundamentals Pg 30
Objectives Review
The participant should be able to:
• Describe the Six Sigma approach to solving problems
• Describe phases of the Six Sigma Breakthrough Strategy®
• Explain organizational Six Sigma Roles and Responsibilities
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Six Sigma Fundamentals Pg 31
The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean®, Breakthrough Strategy®, Breakthrough Value Services®,
Breakthrough Change StrategySM, Breakthrough DesignSM, Breakthrough DiagnosisSM, Breakthrough ExecutionSM, Breakthrough Sigma LeanSM, Breakthrough Six SigmaSM,
Breakthrough Software DesignSM, FASTARTSM, Six Sigma Gold BeltTM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIMESM. Six Sigma is a federally
registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc.
VarTran is a federally registered trademark of Taylor Enterprises.
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