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Six Sigma - Understanding the Basics 1 Demystifyi ng 6
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Page 1: Six Sigma - Understanding the Basics 1 Demystifying 6.

Six Sigma - Understanding the Basics

1

Demystifying

6

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What is Six Sigma?

• Disciplined Process Management

• A Set of Tools Using Objective Data to Measure and Meet Customer Requirements

• A Method of Measuring Output

• A Systemic, Scientific, and Fact-Based Method for Making Decisions

“The Six Sigma strategy involves the use of statistical tools within a structured, disciplined methodology for gaining the knowledge needed to produce better quality products and services faster and at at significantly lower costs by reducing variation, rework, scrap, waste, downtime, and other losses.”

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“Six Sigma embodies the principles of total quality management that W. Edwards Deming sought to establish in every industry he touched. Six Sigma methodology also focuses on measuring results by reducing product or service failure rates to 3.4 per million.”

What is Six Sigma?

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• 18th Letter in the Greek Alphabet - “”

• A statistical method of measuring the distribution or spread about the mean (average).

What is a “Sigma?”

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The 6th Standard Deviation (Sigma) = 3.4 in 1million

What is Six Sigma?

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The 6th Standard Deviation (Sigma) = 3.4 in 1Million

Translates to 3.4“Defects” in 1 Million Opportunities”

What is Six Sigma?

Defect - Any Event That Does Not Meet Customer Requirements.

Opportunity - Any Event That Can Be Measured That Provides A Chance Of Not Meeting The Customer Requirements.

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Why Six Sigma?

3,660 Passengers

With Misplaced Luggage Every

Day

340 Passengers With Misplaced Luggage Every

Day

12 Passengers With Misplaced Luggage Every

Day

6 Passengers With Misplaced Luggage Every

Month

3

4

5

6

66,800

6,210

230

3.4

93.32000%

99.3490%

99.97700%

99.99966%

Sigma Baggage Handling

DPMO % Yield

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Example of Defects / Sigma Measurement Using Exhibit C• Claim Payments Must Be Made Within 5 Business Days (Voice of the

Customer / Critical to Quality)

• Number of Opportunities Per Item Processed Is 1

• Each Claim Paid After 5 Days Is a Defect

• Dividing the Number of Defects by the Number Processed (Opportunities) Will Yield a Ratio Which Can Be Translated to a Sigma.

• Assume 2,000 Claims Paid (Opportunities) With 1 Paid After 5 Days (Defect). This Equals Approximately 50 Defects Per 100,000 Opportunities Which Yields Approximately a 4.8 Sigma

What is Six Sigma?

It Is Possible for an Item to Have More Than 1 Opportunity for a Defect

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Project Methodologies

• DMAIC - most common and used for improving existing processes

• DMADV / DFSS - used to build a new process

• PIE - used to enhance or develop new products

• DFT - used to measure capacity

Multiple Methodologies - Same Philosophy

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DMAIC - Project Methodology

• D - Define

• M - Measure

• A - Analyze

• I - Improve

• C - Control

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Training• DMAIC Generally Divided Into 3 “Waves” With Each Wave

Consisting of a Week-long Class.• Advanced Classes Available

Roles• Green Belt - Someone Who Has Been Trained on DMAIC and

Has Completed a Six Sigma Project• Black Belt - Someone Trained in Six Sigma, Has Run Six

Sigma Projects, and Who Has Passed a Certification Exam.• Master Black Belt - Black Belt Who Has Taken Additional

Advanced Courses and Passed a Certification Exam.

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Define Measure Analyze Improve Control

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Define Measure Analyze Improve Control

• Project Charter– Business Case– Problem / Goal Statements– Roles

• Determine Output Requirements– Identify Customer and Needs– Translate Needs Into CTQs (Measurable Output That Is “Critical

to Quality”)• Map the Process As Is

– SIPOC/R– Find Non-Value Added Steps

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Define Measure Analyze Improve Control

CustomerWhat does my customer need

from the process?

How is our process

performance from the customer

perspective?

How does my customer

measure my process?

How would my customer like for our process to

perform?

What can we do better?

How does my customer view my process?

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Define Measure Analyze Improve Control

•Select Key Output Measures or “Y’s”

Input Process Output

•Develop Data Collection Plan

•Measure and Describe Variation - “In God We Trust - All Others Bring Data”

– Histograms, Pareto Charts, Run Charts

•Calculate Process SigmaAlways Focus On Customer Requirements

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Define Measure Analyze Improve Control

Interpret Data / Construct Visual Displays

• Regression Analysis• Pareto Charts • Control Charts• Box Plots• Frequency Plots

Statistical Packages Such As MiniTab Used in Analysis

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Define Measure Analyze Improve Control

What It Should Be... What It Could Be...What It Really Is..

Identify the Root Causes

Process Map Analysis

What You Think It Is...

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Define Measure Analyze Improve Control

• Generate Solutions– Solution Criteria– Identify All Possible Solutions

• Evaluate Solutions– Cost / Benefit Analysis– Should-Be Process Mapping– Piloting

• Implement Plan / Change Management

Solutions Should Not Be A Part Of The Process Until The Improve Stage

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Define Measure Analyze Improve Control

• Monitor Process– Set Standards / Controls– Set Measures

• Documentation– Procedures– Training

• Institutionalize– Prevent “Rubber-Banding”– Control / Run Charts

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Benefits of Six Sigma

• Customer Focused

• “Tollgates” At Each Stage Insures Buy-In / Acceptance Prior To Moving To The Next Stage

• Decisions Based On Fact and Not Anecdotal Information

• Using Sigmas to Measure Processes Provides A Common Means To Compare Dissimilar Processes

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QUESTIONS ???