Kaizen and Six Sigma
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Kaizen and Six Sigma
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Six Sigma Methodology
Six Sigma relies heavily on advanced statistical methodsthat complement and reduce the process and productvariations. It is a new way of doing business that wouldeliminate the existing defects efficiently and would
prevent defects from occurring.
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Coined by Motorola Engineer Bill
Smith
Now a major influence on productionmethods and quality assurance
Data and statistical driven approach toeliminate defects in production
Aims to improve processes and reduce
variations in quality Necessitates organisational change,
training and planning
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What Is Six Sigma? 4
What is Six Sigma?
A methodology to improve a business process by
constantly reviewing, updating and re-tuning theexisting process.
Six Sigma improves the process performance,decreases variation and maintains consistent qualityof the process output. This leads to defect reductionand improvement in profits, employee morale,
product quality and finally customer satisfaction. Six Sigma Strives for perfection. It allows for only
3.4 defects per million opportunities for each productor service transaction.
Six Sigma relies heavily on statistical techniques to
reduce defects and measure quality.
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What Is Six Sigma? 5
Evolution of Six Sigma
Japan has been credited with the evolvement of
Quality Systems like TQM, Kanban, Kaizen, etc. Pioneered in the U.S. by Bill Smith at Motorola in
1986; originally used as a metric for measuringdefects for improving quality; a methodology toreduce defect levels <3.4 Defects Per MillionOpportunities (DPMO). Motorola has reported
>US$17b savings as of 2006. Early adopters include Bank of America, Caterpillar,
Honeywell International (previously known as AlliedSignal), Raytheon, Merrill Lynch and General Electric.
Six Sigma was originally centered around
manufacturing improvements. The reason for thiswas knowledge of the statistical tools in themanufacturing functions and the ease with which wecan quantify the benefits.
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What Is Six Sigma? 6
Six Sigma levels and Process
The Greek letter for Sigma, , represents one
standard deviation from the normal or average. Thehigher the sigma level the better the quality level.
Levels of Sigma Performance
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What Is Six Sigma? 7
Three levels of Six Sigma:
As a Metric
As a Methodology
As a Management system
Essentially, Six Sigma is all three atthe same time.
is a registered service mark andtrademark of Motorola, Inc.
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What Is Six Sigma? 8
1. As a Metric
The term “Sigma” is often used as a
scale for levels of "goodness" orquality.
Equates to 3.4 defects per one millionopportunities (DPMO).
Six Sigma started as a defect reductioneffort in manufacturing and was thenapplied to other business processes forthe same purpose.
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What Is Six Sigma? 9
2. As a Methodology
A business improvement
methodology that focuses anorganization on:
Understanding and managing customerrequirements
Aligning key business processes toachieve those requirements
Utilizing rigorous data analysis to
minimize variation in those processes Driving rapid and sustainable
improvement to business processes
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What Is Six Sigma? 10
The DMAIC model
Motorola developed a five phase approach to the Six
Sigma Process called DMAIC which is a continuousprocess as the diagram shows until the highest levelin the Six Sigma is achieved, i.e., 3.4 defects permillion.
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What Is Six Sigma? 11
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What Is Six Sigma? 12
3. As a Management system
A top-down solution to help organizations:
Align their business strategy to criticalimprovement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
Govern efforts to ensure improvements aresustained
Framework to prioritize resources forprojects that will improve the metrics, and itleverages leaders who will manage theefforts for rapid, sustainable, and improvedbusiness results.
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What Is Six Sigma? 13
Levels of Six Sigma Implementation1. Six Sigma Champion: Champions undergo five
days of training and are taught how to manageprojects and act as advisors to various projectteams.
2. Green Belts: They undergo two weeks of trainingthat includes project-oriented tasks. They act asteam members to the Six Sigma project team. Theircooperation and involvement is necessary for
projects success.3. Black belts: They receive four weeks of trainings
and are directly involved in the implementation of Six Sigma Projects. They are the project leaders andgo through in-depth training on Six Sigma approachand tools and work full time on the project.
4. Master Black Belts: These are the people whoconduct Six Sigma Training and also have on the jobtraining and experience
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Some Six Sigma Tools
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What Is Six Sigma? 15
Quality Function Deployment
QFD helps Six Sigma Black Belts drive
customer-focused development across thedesign process.
QFD is a system and set of procedures toidentify, communicate, and prioritize
customer requirements. Did you know? With QFD, Six Sigma teams
can more effectively focus on the activitiesthat mean the most to the customer, beat
the competition, and align with the missionof the organization.
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What Is Six Sigma? 16
Cause and Effect Matrix
The C&E Matrix helps Six Sigma project
leaders facilitate team decision-making. The C&E Matrix is a tool that helps Six
Sigma teams select, prioritize, and analyzethe data they collect over the course of aproject to identify problems in that process.
Six Sigma teams typically use the C&EMatrix in the Measure phase of the DMAICmethodology.
The C&E Matrix is particularly great for
obtaining team consensus on the potentialrelationships between factors that affect aprocess and the output of that process.
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What Is Six Sigma? 17
Failure Modes Effects Analysis
FMEA helps Six Sigma teams to identify and
address weaknesses in a product or process,before they occur.
Before implementing new products,processes, or services, Six Sigma teams useFMEA to identify ways their newintroductions might fail, and then to developpreventative measures targeted at thefailure scenarios.
Did you know? An effective FMEA identifies
corrective actions required to preventfailures from reaching the customer and willimprove performance, quality, and reliability.
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What Is Six Sigma? 18
Control Charts
Six Sigma teams use Control Charts to
assess process stability. Control Charts are a simple but highly
effective tool for monitoring and improvingprocess performance over time because they
help Six Sigma teams to observe andanalyze variation.
The three basic components of any controlchart are a centerline, upper and lower
statistically determined control limits, andperformance data plotted over time.
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What Is Six Sigma? 19
Design of Experiments
DOE helps Six Sigma Black Belts make the
most of valuable resources. DOE is a statistical technique that
encompasses the planning, design, datacollection, analysis and interpretation
strategy used by Six Sigma professionals. Did you know? Six Sigma teams use DOE to
determine the relationship between factors(Xs) affecting a process and the output of
that process (Y).