1 Six Sigma Overview Six Sigma Overview
2Six Sigma Overview
Objective
• Understand the objective of Six Sigma
• Understand the Six Sigma measurement
• Gain an understanding of the Six Sigma terminology
• Introduce the DMAIC process/methodology
• Understand the objective of each of the 5 phases (DMAIC) of Six Sigma methodology
• Discuss the differences between Six Sigma and other corporate initiatives.
In This Module We Will….
4Six Sigma Overview
99% Accuracy
Practical Meaning of “99% Good”
• 20,000 lost articles of mail per hour
• Unsafe drinking water almost 15 minutes each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports each day
• 200,000 wrong drug prescriptions each year
• No electricity for almost 7 hours each month
99% Is NOT Good Enough Anymore
5Six Sigma Overview
6 – The Measurement
99.0% = 3.85
99.9996% = 6
Is there really a big difference between 99.0% & 99.9996%?
6Six Sigma Overview
Facts
• All work is a process
• All processes have variation and waste
• Variation causes defects waste causes loss
• Processes can be improved by understanding the nature of the variation and waste
7Six Sigma Overview
Methodologies
Six Sigma
Lean DFSSWaste Elimination Design For
Growth
Variation Elimination
ISO
8Six Sigma Overview
Lean Philosophy
Anything the customer will not pay for is Non-Value Added
80% of Non-Value Added is waste
9Six Sigma Overview
Six Sigma
Culture Methodology66Common Language
Department Link
Change
Roles and Commitment
Process Project Focus
DMAIC
DFSS (IDOV or DMADV)
Tool Kit
Defect Elimination
Variation Reduction
10Six Sigma Overview
Change Management
Culture Methodology66DMAIC
Tool Kit
Defect Elimination
Variation Reduction
Common Language
Department Link
Change
Roles and Commitment
Culture Methodology66Culture Methodology66DMAIC
Tool Kit
Defect Elimination
Variation Reduction
Common Language
Department Link
Change
Roles and CommitmentChange
• New Way of Looking at Problems
• Fact Based Decision Making
• Not Relying on “Gut Feel”
• Change Management
Six Sigma Incorporates Change Management
11Six Sigma Overview
Six Sigma Methodology is Change
Six Sigma Is…
• Structured Problem Solving
• Fact Based Decision Making
• Rigorous Methodology
• Management By Fact
• Statistically Based
• Team Driven
“Six Sigma Is Not…
• Gut Feel
• Reliance On “Best” Customer
• That Won’t Work Here”
• Opinion
• “We’ve Tried That”
• Firefighting
12Six Sigma Overview
The Methodology
Culture Methodology66DMAIC
Tool Kit
Defect Elimination
Variation Reduction
Common Language
Department Link
Change
Roles and Commitment
Culture Methodology66Culture Methodology66DMAIC
Tool Kit
Defect Elimination
Variation Reduction
Common Language
Department Link
Change
Roles and Commitment
Methodology• Scalable to the depth
and breadth of the organization
• Applicable to all business regardless of size or industry
• Project focused depending upon the strategic direction of the organization
14Six Sigma Overview
Inspection Exercise
Instructions:
Count the number of times the 6th letter of the English Alphabet appears on the next slide.
F f
15Six Sigma Overview
The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeeneie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition.
16Six Sigma Overview
The MacFeenie Company was founded by Fannie MacFeenie of Fredericksburg, Florida. The MacFeenie Company finds first the finest freshest fish for feeding hungry people. The MacFeenie Company can compete with Florida’s finest fish foundries because Fannie MacFeenie who is the founder of the company deployed Six Sigma five years ago. Now The MacFeenie Company finds defects caused by variation and removes them from processes. This helps the MacFeenie Company satisfy their customers first, thereby facilitating valuable market share from fierce fish foundry competition.
17Six Sigma Overview
Number MissedDPMO Sigma Value* Yield(%)
27027 3.4 97.3%
81081 2.9 91.9%
135135 2.6 86.5%
216216 2.3 78.4%
270270 2.1 73.0%
324324 1.95 67.6%
405405 1.75 59.5%
1
3
5
8
10
12
15Total # F (f): 37, Opportunity: 1 slideDPMO Calculations = (# missed/Total # F) * 1,000,000/# OpportunitiesSigma Calculation: Normal Distribution Z Table with 1.5 sigma shiftYield (%) = # Correct / Total # FNOTE: Sigma Level and Yield above are approximate short term calculations
F Exercise Sigma Level
18Six Sigma Overview
The Goals Of Six Sigma
Defect Reduction
Yield Improvement
Improved Customer Satisfaction
Higher Net Income
20Six Sigma Overview
Process Vs. Customer
DefectsDefects Acceptable
LSL USL
Customer Requirement
Process Performance
Process Performance And Customer Requirement Often Do Not Match
21Six Sigma Overview
6 Sigma – The Basic Process
1. Understand the Customer Requirements
2. Reduce Variation Waste Within The Process To Reduce the Defects
3. Center the Process Around The Customer Requirements
4. Control The Process
22Six Sigma Overview
DMAIC - 5 Phase Approach
The Six Sigma Projects Are Completed By Following A 5 Phase Approach
Define
Measure
Analyze
Improve
Control
23Six Sigma Overview
Define Phase Objectives
Define
Measure
Analyze
Improve
Control
• Identify customer requirements
• Identify corresponding process
• Determine relationship between process and customer
• Scope project
• Identify problem statement
• Identify team
• Develop project contract
24Six Sigma Overview
Measure Phase Objectives
• Identify process input and output variables
• Identify steps in process
• Remove waste from process
Define
Measure
Analyze
Improve
Control
ToolsProcess Mapping
25Six Sigma Overview
Analyze Phase Objective
• Identify sources of variation
• Identify sources of waste
• Identify key variables
Define
Measure
Analyze
Improve
Control
ToolsC&E Fishbone
26Six Sigma Overview
Improve Phase Objective
• Optimize process by making improvements
Define
Measure
Analyze
Improve
Control
ToolsBrainstorming
27Six Sigma Overview
Control Phase Objective
• Control the optimized process
Define
Measure
Analyze
Improve
Control
ToolsStandard Operating ProcedureMistake Proofing
28Six Sigma Overview
Six Sigma Tool Box
Define Measure Analyze Improve Control
Benchmarking Value Stream Map
Fishbone Diagrams
Modeling SPC Charts
Process Flow Mapping
Cause & Effect FMEA Tolerance Control
Performance Metrics
Flow charts Defect Metrics Root Cause Analysis
Defect Control Multiple Regression
Project Charter as a Team
Statistical Analysis
ANOVA Design Changes
Train
Set Up a Plan & Guidelines for Team
Data Collection
Run Charts, Time Series Chars, Time Value Charts, Pareto Charts
Cause & Effect Diagram
Piloting
Review Existing Data
Sampling Scatter Plots Best Practices
SIPOC
30Six Sigma Overview
Enterprise Wide Six Sigma Roles
Executives
Senior Champion
Project Champion
Black Belts
Green Belts
Project Team
Members
6Finance
Champion
All departments have processes
All processes can be improved
All departments should implement Six Sigma
Most “low hanging fruit” can be found outside of
manufacturing