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© All Rights Reserved TreQna 2005 Six sigma Orientation
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Six Sigma Orientation

May 06, 2015

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Siddharth Nath

Six Sigma Orientation
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Page 1: Six Sigma Orientation

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Six sigma Orientation

Page 2: Six Sigma Orientation

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expectations •What is Quality?

•Know Six Sigma

•Awareness with respect to origin and history of Six Sigma.

•The utility and benefits

•Introduction to Six Sigma as methodology

•The Six Sigma organization

Page 3: Six Sigma Orientation

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What is Quality?

Page 4: Six Sigma Orientation

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Evolution of Quality

Historically

Proactive Quality“Create process that will produce less or no defects”

Contemporary

Reactive QualityQuality Checks (QC) - Taking the defectives out of what is produced

Page 5: Six Sigma Orientation

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Segments in Quality

Methodologies Standards Capability Models

•Six Sigma•Lean

•ISO 9000, ISO 14000 etc.•COPC•Malcolm Baldrige

•eSCM•CMM•CMMI

Scientific way to improve capability?

Sharing Benchmarked

practices- “Standardizing”

Best practices to build

capability

Page 6: Six Sigma Orientation

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What is Six Sigma?

• It is a methodology for continuous improvement

• It is a methodology for creating products/ processes that perform at high standards

• It is a set of statistical and other quality tools arranged in unique way

• It is a way of knowing where you are and where you could be!

• It is a Quality Philosophy and a management technique

Six Sigma is not:

• A standard

• A certification

• Another metric like percentage

Page 7: Six Sigma Orientation

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• The term “sigma” is used to designate the distribution or spread about the mean (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. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

Two Meanings of Sigma

Page 8: Six Sigma Orientation

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Path to Six Sigma

4 Sigma 6,210 Defects

2 Sigma 308,537 Defects

3 Sigma 66,807 Defects

5 Sigma 233 Defects

6 Sigma 3.4 Defects

Sigma levels and Defects per million

opportunities (DPMO)

Page 9: Six Sigma Orientation

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What it means to be @ Six SigmaIs 99% (3.8) good enough? 99.99966% Good – At 6

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15 minutes each day

One minute of unsafe drinking water every seven months

5,000 incorrect surgical operations per week

1.7 incorrect surgical operations per week

2 short or long landings at most major airports daily

One short or long landing at major airports every five years

200,000 wrong drug prescriptions each year

68 wrong drug prescriptions each year

Example quoted from GE Book of Knowledge - copyright GE

Page 10: Six Sigma Orientation

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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 through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

Origin of Six Sigma

MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma

MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma

Page 11: Six Sigma Orientation

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• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for management promotions

• 2002/03 - Green Belt certification became the criteria for promotion to management roles

The Growth of Six Sigma

GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma

GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma

Page 12: Six Sigma Orientation

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The GE model for process improvements

The Growth of Six Sigma

DefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

Combination of change management & statistical analysis

Page 13: Six Sigma Orientation

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The Growth of Six Sigma

Page 14: Six Sigma Orientation

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BPMSBPMSBusiness Process Management SystemBusiness Process Management System

BPMSBPMSBusiness Process Management SystemBusiness Process Management System

DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology

DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology

DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six

SigmaSigma

DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six

SigmaSigma

Three Methodologies of Six Sigma

Page 15: Six Sigma Orientation

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BPMSBPMSBusiness Process Management Business Process Management

SystemSystem

BPMSBPMSBusiness Process Management Business Process Management

SystemSystem

Page 16: Six Sigma Orientation

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• To understand the process; it’s 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

Page 17: Six Sigma Orientation

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The Methodology

Define Process Mission

Map Process VOC and VOP Build PMSDevelop

Dashboards

Identify Improvement Opportunities

Define purpose of the process, its goal and its boundaries

Identify Critical to Quality and Critical to process

Visual representation of performance

Map process steps, identify input/ output measures

MSA, DCP, indicators and monitors

Service excellence and process excellence

The DMAIC cycle

Page 18: Six Sigma Orientation

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DMAICDMAICSix Sigma Improvement Six Sigma Improvement

MethodologyMethodology

DMAICDMAICSix Sigma Improvement Six Sigma Improvement

MethodologyMethodology

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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 ?

EEEffectiveness

= QQQuality

Improvement

x AAAcceptance

Page 20: Six Sigma Orientation

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The Approach

Practical Problem

StatisticalProblem

Statistical Solution

Practical Solution

Page 21: Six Sigma Orientation

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DDefine

MMeasure

AAnalyze

IImprove

CControl

Identify and state the practical problem

Validate the practical problem by collecting data

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

Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Methodology

Page 22: Six Sigma Orientation

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D

VoCVoC - 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

IImprove

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

IImprove

CControl

Page 24: Six Sigma Orientation

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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

IImprove

CControl

Page 25: Six Sigma Orientation

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A

Root Cause Analysis (fish bone)

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

• Visualize the potential relationship between causes which may be creating problems or defects

Problem

Backbone

Primary Cause Secondary

Cause

Root Cause

Analyze – Identify Drivers of Variation

Page 26: Six Sigma Orientation

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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 IneffectiveCost IneffectiveLow Control – High ImpactLow Control – High Impact

Cost IneffectiveCost IneffectiveHigh Control – Low ImpactHigh Control – Low Impact

Trivial ManyTrivial ManyLow Control – Low ImpactLow Control – Low Impact

ControlControl

Imp

act

Imp

act

Analyze – Identify Drivers of Variation

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A

Pareto Chart

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

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

Analyze – Identify Drivers of Variation

Page 28: Six Sigma Orientation

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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 ACustomerCustomerVendorVendorProcess 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 a sample belongs to a given population

Null Hypothesis (HNull Hypothesis (Hoo)) is the statement of the status quo

Alternate Hypothesis (HAlternate Hypothesis (Haa)) is the statement of difference

Analyze – Identify Drivers of Variation

One way ANOVA

Regression

Homogeneity of Variance Moods Median

Chi-Square

Page 30: Six Sigma Orientation

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I

Map improved process

Pilot solution

Identify operating tolerance on significant factors

Improve

DDefine

MMeasure

AAnalyze

IImprove

CControl

Page 31: Six Sigma Orientation

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C

Ensure measurement system reliability for significant 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

IImprove

CControl

Page 32: Six Sigma Orientation

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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 process performance ?

• Who will review the performance of the output variable and significant factors on closure of the project and how frequently ?

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

Control – Sustenance Plan

Page 33: Six Sigma Orientation

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Six Sigma OrganizationSix Sigma OrganizationSix Sigma OrganizationSix Sigma Organization

Page 34: Six Sigma Orientation

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Six Sigma - Three Dimensions

ToolsOrganization

Methodology

Process variation

LSL USL

Upper/Lower specification

limits

Regression•••••••• •••• •••

••••

•••• •• ••

••• ••••

••••• ••

•••••

Driven by

customer

needs

Enabled by quality team.

Led by Senior Mgmt

Define Measure

Analyze Improve ControlVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

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

Page 35: Six Sigma Orientation

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The Quality Team

Master Black BeltMaster Black Belt

Black BeltBlack Belt Black BeltBlack Belt

Green BeltGreen Belt

Green BeltGreen Belt

Green BeltGreen Belt

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

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

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or

“high risk” projects

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or

“high risk” projects

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

Page 36: Six Sigma Orientation

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Six Sigma – Career Option!• Basic - Six Sigma Awareness• Green Belt Projects• Participate in Black Belt Projects• Assist business functions with day to day

activities

• Mentor/Train Green Belts• Black Belt Projects• Change Agents• Work along with the business owners

• Mentor/ Train Black Belts• Run Strategic projects• More Strategic than tactical role

Green Belt (GB)Green Belt (GB)

Black Belt (BB)Black Belt (BB)

Master Black Belt (MBB)Master Black Belt (MBB)

Highly paid!Highly paid!Work like a Consultant!Work like a Consultant!

Huge demand in the industry!Huge demand in the industry!

Overall…A high flying Career!!Overall…A high flying Career!!

Page 37: Six Sigma Orientation

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Thank YouThank YouThank YouThank You