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Process Excellence : Six Sigma
EEPTM of International Institute of Business Analysis [IIBA®], Canada
REP of International Requirements Engineering Board [IREB®], Germany
Presenter Venkadesh Narayanan, BSME, MBA, CBAP®, PMI-PBA®, CBPP®
Principal Consultant Former Indian Civil Servant [IRAS 2001 Batch]
LinkedIn Profile
Objective of this Presentation
Overview of Six Sigma
1. What is Six Sigma
2. What Sigma and Six Sigma
3. History of Six Sigma
4. Objective and Application area of Six Sigma
5. Implementation of Six Sigma
Six Sigma integrate with BA
Difference between Lean and Six Sigma
Six Sigma Production System(In Motorola)
1.Overview of Six Sigma
What is Six Sigma?: It is a methodology that provides businesses with the tools to improve the
capability of their business processes.
This increase in performance and decrease in process variation.
It leads to defect reduction and improvement in profits, employee morale and
quality of product.
Overview of Six Sigma
It is process Improvement method/Tool
By Using Techniques and Tools
Target : 3.4 DPMO
What is Six Sigma?:
Sigma(σ) is a Symbol of Standard Deviation
Standard Deviation(σ): A dispersion of average variance from the required value in a set of data.
What is Sigma(σ )?
Overview of Six Sigma
What is Six Sigma (6σ)?
Overview of Six Sigma
Opportunities ⇔ Variation / Defects
Origin of Six Sigma:
In the late 1860s, Francis Galton conceived of a measure to quantify normal variation: the standard deviation
1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems
In 1986, Bill Smith – then a senior scientist at Motorola – introduced the concept of Six Sigma to standardize the way defects are counted.
Father of Six Sigma
Father of Statistical Quality
Overview of Six Sigma
Overview of Six Sigma
Objectives of 6σ : Improve customer satisfaction (Internal and External)
Improve the quality of product and service
Reduce the process cycle time
Overall cost saving up to 30%
Development of staff skill
Where it is used: Manufacturing and service industries
Sales and Marketing
Accounting and Financing
Overview of Six Sigma
Implementation of Six Sigma: Six Sigma Methodology inspired by Deming's Plan-Do-Check-Act Cycle
PDCA + Scientific Method / Tools
Start End
1. Define Define the problem or project goal that needs to be addressed.
2. Measure Measure the current Performance in various aspects. It is a data collection step.
FMEA Process Flow Chart Value Added Flow Chart
MSA SPC Histogram and Pareto Chart
Overview of Six Sigma
D - Tools
M - Tools
Implementation of Six Sigma:
3. Analysis Analyse the process to determine root causes of variation, poor performance (defects)..
4. Improve Improve process performance by addressing and eliminating the root causes.
DoE Why – 5 Cause and Effect Diagram
5S TPM Kaizen Poka-Yoke
Overview of Six Sigma
I - Tools
A - Tools
Implementation of Six Sigma:
5. Control Control the improved process and future process performance.
Control Plan Standardize Work Check Sheet SPC
Overview of Six Sigma
C - Tools
Implementation of Six Sigma:
Overview of Six Sigma
Duration
6σ A
ctiv
ities
Implementation of Six Sigma:
1
3
2
Integrate Six Sigma with BA
Six Sigma Business Analysis
D Define to what is the exact Problem
Define what the exact business or project objective
M Measure the rate/amount/ frequency of Problem
Measure the current situation of internal and external of firm
A Analyze the root cause of the problem
Analyze the requirements Elicitation/Evaluation
I Improve on area of the problem Improve the project/business by implementing solution or model
C Control the new process by reviewing and monitoring
Control the project from deviation till the end of it.
Difference between Lean and Six Sigma
1.Eliminate/Reduce the waste 2.Improve the process flow
Focus on
Using Tools
Goal
1.Eliminate/Reduce the Variation 2. Improve the process capability
1. Focused on Flow Cost, Speed, Time
1. Focused on Problem/Defect/Variation
1. Kaizen 2. 7 Waste 3. Kanban (Visual) 4. Gemba (As in Place)
1. Control Chart 2. R and R 3. DoE 4. SPC
Lean Six Sigma
Six Sigma Production System
6σ Companies:
In Motorola System
Six Sigma in three different levels: 1. As a Metric 2. As a Methodology 3. As a Management system 1. Six Sigma as a Metric: 1. The term "Sigma" is often used as a scale for levels of 'goodness' or quality.
Using this scale, 'Six Sigma' equates to 3.4 defects per one million opportunities (DPMO).
2. Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.
2. Six Sigma as a Methodology: Six Sigma is a business improvement methodology that focuses an organization on: Understanding and managing customer requirements
Aligning key business processes to achieve those requirements
Utilizing rigorous data analysis to minimize variation in those processes
Driving rapid and sustainable improvement to business processes.
In Motorola System
3. Six Sigma Management System: Motorola ensures that process metrics and structured methodology are applied to improvement opportunities that are directly linked to the organizational strategy. When practiced as a management system, Six Sigma is a high performance system for executing business strategy. Six Sigma is a top-down solution to help organizations: Align their business strategy to critical improvement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
Govern efforts to ensure improvements are sustained
In Motorola System
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