SIX SIGMAIntroduction
WHAT IS SIX SIGMA?
• Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services – as defined by our customers.
• Why ”Sigma“? The word is a statistical term that measures how far a given process deviates from perfection.
• The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible.
KEY CONCEPTS OF SIX SIGMA
Critical to Quality:
Defect:
Process Capability:
Variation:
Stable Operations:
Attributes most important to the customer.
Failing to deliver what the customer wants.
What our process can deliver.
What the customer sees and feels.
Ensuring consistent, predictable processes to improve what the customer sees and feels.
SIX SIGMA ─ ELEMENTS OF QUALITY
Delighting Customers: In every attribute that influences customer perception, we know that just being good is not enough. Delighting our customers is a necessity. Because if we don’t do it, someone else will!
Outside-In Thinking: Quality requires us to look at our business from the customer’s perspective, not ours. With this knowledge, we can identify areas where we can add significant value or improvementfrom their perspective.
Leadership Commitment:People create results. Quality is the responsibility of every employee. Every employee must be involved, motivated and knowledgeable if we are to succeed.
Three key elements of quality: customer, process and employee.
GAUSSIAN DISTRIBUTION ─ BELL CURVE
-4 -3 -2 -1 0 -1 -2 -3 -4
68.26%
Number of standard deviations of average value
95.4%
99.74%
34.13% 34.13%
13.57% 13.57%
2.16% 2.16%
0.13% 0.13%
Reversal Point
To achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities.
SIGMA ERROR RATE DEFECTS PER MILLION* SUCCESS RATE (Y%)
1 69% 691.462 31
2 31% 308.538 69
3 6.7% 66.807 93.3
4 0.62% 6.210 99.38
5 0.023% 233 99.977
6 0.00034% 3.4 99.9997
7 0.0000019% 0.019
THE SIGMA-LEVELMeasuring Method to Determine Process Performance
The higher the value, the more efficient the process
SIX SIGMA AND CX
Our Customers Feel the Variance, Not the Mean
Often, our inside-out view of the business is based on average or mean-based measures of our recent past. Customers don’t judge us on averages, they feel the variance in each transaction, each interaction. Six Sigma focuses first on reducing experience and process variation and then on improving the process capability.
Customers value consistent, predictable business processes that deliver world-class levels of quality. This is what Six Sigma strives to produce.
BREAKTHROUGH-STRATEGY
DURATION IN YEARS31 2 54
IMP
RO
VEM
ENT
QU
OTA
BREAKTHROUGH-IMPROVEMENT
SIX SIGMA(Optimal Improvement)
STANDARD METHODS(Gradual Improvement)
GRADUAL IMPROVEMENT:
Kaizen Re-Engineering TQM Current Tools and Approaches
SOURCES FOR SIX SIGMA PROJECTSThe Following Methods are Applied
DMAIC
Improvement of existing processes(DMAIC-Cycle: Define, Measure, Analyze,Improve, Control)
CHANGE MANAGEMENT
Tools to initiate, support and control the necessary alteration processes
DFSS – DESIGN FOR SIX SIGMA
Creating new products and processes (DMADV-Cycle: Define, Measure, Analyze, Design, Verify)
PROJECT MANAGEMENT
Coordination and implementation of all initiated projects. Due to state of the art development tools companies operate faster, more individual, more rational
SIX SIGMA – SUCCESS FACTORSIncrease of Company Value through Customer Satisfaction and Customer Loyalty
SIXSIGMA
Evaluation + improvementof customer’s satisfaction
> DMAIC-Process
View through rearview mirror
Customer Loyalty through implementation
of critical improvements based oncustomer demands
DESIGN FOR SIX SIGMA
Detect + fulfill future important customer requirements
> DFSS
View through front window
DMAIC-CIRCLE / DMAIC-CYCLEDMAIC-Cycle to Measure Current Projects and Their Improvement
WHAT IS THE PROBLEMProblem description and definition
of project objective; initiation of project and planning of milestones
SEVERITY OF THE PROBLEMDetermination of causes
for actual problems and cause variables, quality, data and facts
REASONSProcessing of the results and problem analysis
SOLUTIONSelection of solution alternatives and implementation of a strategy to reach goals
IMPROVEMENT AND SUSTAINMENTImplementation of solution approach, monitoring, controllingand documenting
DEFINE – DEFINITION PHASETasks of the Six Sigma Champion
Preparation of project charters1
Focus on customer requirements and company interest2
Securing of sufficient project resources within the team (commitment of all participants)3
Strict separation from other projects4
5Consideration of economical value, probability of success and availability of resources
PROJECT ORGANIZATION AND ROLESDescription of roles and related skills
TEAM MEMBER
CONTROL CIRCUIT
CHAMPIONMASTER
BLACK BELTBLACK BELT GREEN BELT YELLOW BELT
Responsible for budget and resources; sponsor of Six Sigma
projects
Experienced senior project manager; management of cross-sectional strategic
projects
Project manager and Coach; executes
projects together with other business
divisions
Leads projects within his sector of responsibility;
implementation of smaller Six-Sigma projects
Part of the project team, which applies Six Sigma methods; supports execution
of projects
THREE IMPLEMENTATION APPROACHES
COMPANY WIDE STRATEGY
TOOLBOX
IMPROVEMENTPROGRAM
IMPLEMENTATION IN TOP-DOWN-PROCESS
Management makes decisionson the introduction of Six Sigma, which are transferred to all company levels
USE POTENTIALS
Internal improvement initiative, to use improvement potentials within
the day-to-day routine of the company
7X7-TOOLBOX
Success by integration of selected improvement tools from the 7x7-Toolbox
(mixture of techniques, methods and mental models)
RECAP – WHAT IS SIX SIGMA?
PROCESS IMPROVEMENTOperative and productive processes
QUALITY INITIATIVE Measurable success like increased
revenue and lowered costs
CUSTOMER REQUIREMENTSNot quality improvement at all costs
INDICATOR OF Efficiency of processes
TOOLBOXProcess, analysis, statistics,problem solving strategy
PROBLEM SOLVING METHODSystematically , data oriented, (DMAIC-Method, DMADV)
FEELING QUALITY (CX)
Practical Meaning of Process Performance