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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
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What is Quality?
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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The Growth of Six Sigma
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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
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BPMSBPMSBusiness Process Management Business Process Management
SystemSystem
BPMSBPMSBusiness Process Management Business Process Management
SystemSystem
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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
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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
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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
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The Approach
Practical Problem
StatisticalProblem
Statistical Solution
Practical Solution
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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
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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
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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
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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
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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
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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
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I
Map improved process
Pilot solution
Identify operating tolerance on significant factors
Improve
DDefine
MMeasure
AAnalyze
IImprove
CControl
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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
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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
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Six Sigma OrganizationSix Sigma OrganizationSix Sigma OrganizationSix Sigma Organization
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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
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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
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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!!
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Thank YouThank YouThank YouThank You