What is Six What is Six Sigma?Sigma?

Six Sigma QuotesSix Sigma Quotes "... the most powerful breakthrough "... the most powerful breakthrough

management tool ever devised"management tool ever devised"Mikel Harry and Richard SchroederMikel Harry and Richard Schroeder

Six Sigma: The BREAKTHROUGH Management Strategy Revolutionizing the World's Top Six Sigma: The BREAKTHROUGH Management Strategy Revolutionizing the World's Top Corporations Corporations

"Six Sigma is arguably the most important "Six Sigma is arguably the most important business and industry initiative that has involved business and industry initiative that has involved statistical thinking and methods."statistical thinking and methods."

Ronald D. SneeRonald D. Snee"Impact of Six Sigma on Quality Engineering""Impact of Six Sigma on Quality Engineering"Quality EngineeringQuality Engineering Volume 12, Number 3, 2000 Volume 12, Number 3, 2000

"Six Sigma has spread like wildfire across the "Six Sigma has spread like wildfire across the company and its transforming everything we do."company and its transforming everything we do."

Jack Welch, CEO, GE Jack Welch, CEO, GE Business Week special reportBusiness Week special reportJune 8, 1998June 8, 1998

Six Sigma Vs. Six Sigma Vs. Lean ManufacturingLean Manufacturing

Six sigma and lean manufacturingSix sigma and lean manufacturing are methods to improve are methods to improve business and manufacturing processes and drive profitability business and manufacturing processes and drive profitability of companies.  Both six sigma and lean manufacturing, are of companies.  Both six sigma and lean manufacturing, are proven concepts and have saved companies billions of dollars proven concepts and have saved companies billions of dollars and are the leading continuous improvement methods utilized and are the leading continuous improvement methods utilized today.  today. 

Lean Manufacturing Lean Manufacturing Focuses on eliminating the 7 or 8 Focuses on eliminating the 7 or 8 wastes and is based on the philosophy of getting all levels of wastes and is based on the philosophy of getting all levels of an organization involved. It was developed by Toyota in the an organization involved. It was developed by Toyota in the late 1950’s. late 1950’s.

Six sigma is a philosophy of doing business with a focus on Six sigma is a philosophy of doing business with a focus on eliminating defects through fundamental process knowledge.  eliminating defects through fundamental process knowledge.  Six sigma methods integrate principles of business, statistics Six sigma methods integrate principles of business, statistics and engineering to achieve tangible results. and engineering to achieve tangible results.

7 or 8 Wastes of Lean7 or 8 Wastes of Lean1. Defects 1. Defects 2. Overproduction2. Overproduction3. Transportation3. Transportation4. Waiting4. Waiting5. Inventory5. Inventory6. Motion6. Motion7. Processing7. Processing8. Skills – Not utilizing people’s talents8. Skills – Not utilizing people’s talents

Six Sigma Vs. Six Sigma Vs. Lean ManufacturingLean Manufacturing

Huge difference between "lean Tools" and Six Sigma tools.

Lean = Improved process flow and the elimination of waste in a continual mode of improvement

Any of the following mean Lean Manufacturing:Continuous Improvement, Kaizen, Lean Manufacturing, JIT

Six Sigma = Reduced process variation Six Sigma holds the improvement process in Six Sigma holds the improvement process in

the hands of a select group of “belted” the hands of a select group of “belted” individualsindividuals

Six SigmaSix Sigma In 1986, Bill Smith, a senior engineer and scientist at In 1986, Bill Smith, a senior engineer and scientist at

Motorola, introduced the concept of Six Sigma to Motorola, introduced the concept of Six Sigma to standardize the way defects are counted.standardize the way defects are counted.

Six Sigma provided Motorola the key to addressing quality Six Sigma provided Motorola the key to addressing quality concerns throughout the organization, from manufacturing concerns throughout the organization, from manufacturing to support functions. The application of Six Sigma also to support functions. The application of Six Sigma also contributed to Motorola winning the Malcolm Baldrige contributed to Motorola winning the Malcolm Baldrige National Quality award in 1988.National Quality award in 1988.

Since then, the impact of the Six Sigma process on Since then, the impact of the Six Sigma process on improving business performance has been dramatic and well improving business performance has been dramatic and well documented by other leading global organizations, such as documented by other leading global organizations, such as General Electric, Allied Signal, and Citibank. General Electric, Allied Signal, and Citibank.

Today, Motorola continues to implement Six Sigma Today, Motorola continues to implement Six Sigma throughout its own enterprise, and extends the benefit of its throughout its own enterprise, and extends the benefit of its Six Sigma expertise to other organizations worldwide Six Sigma expertise to other organizations worldwide through Motorola University.through Motorola University.

Six Sigma was derived from the statistical term of sigma Six Sigma was derived from the statistical term of sigma which measures deviations from perfectionwhich measures deviations from perfection

Six Sigma HistorySix Sigma History 1986: Motorola Defines Six Sigma and in 1987 Chief Executive declares

Motorola will be at 6σ by 1992 (5-year goal) 1988: Six Sigma consortium is formed:

Motorola, Raytheon, ABB, CDI, Kodak 1989/1990: IBM, DEC try Six Sigma -- and fail 1993: AlliedSignal adds a new level to Six Sigma : Dedicated Black Belts

with a supporting infrastructure 1995: Jack Welch of General Electric adopts Six Sigma 1996-1998: Six Sigma implementation expands significantly as companies

observe the success of Allied and GE :Siebel, Bombardier, Whirlpool, Navistar, Gencorp, Lockheed Martin, Polaroid,Sony, Nokia, John DeereSiemens, BBA, Seagate, Compaq, PACCAR, Toshiba, McKesson, AmEx...

1999: Starting to see exponential growth. Formal Six Sigma training begins at ASQ: Johnson & Johnson, Air Products, Maytag, Dow Chemical, DuPont, Honeywell, PraxAir, Ford, BMW, Johnson Controls, Samsung

Sigma LevelsSigma LevelsSigma LevelSigma Level

A value from 1 to 6 that signifies the maximum A value from 1 to 6 that signifies the maximum number of defects per million:number of defects per million:1 Sigma = 690,000 defects/million = 31% accurate1 Sigma = 690,000 defects/million = 31% accurate2 Sigma = 308,537 defects/million = 69.1463% 2 Sigma = 308,537 defects/million = 69.1463% accurateaccurate3 Sigma = 66,807 defects/million = 93.3193% 3 Sigma = 66,807 defects/million = 93.3193% accurateaccurate4 Sigma = 6,210 defects/million = 99.3790% accurate4 Sigma = 6,210 defects/million = 99.3790% accurate5 Sigma = 233 defects/million = 99.9767% accurate5 Sigma = 233 defects/million = 99.9767% accurate6 Sigma = 3.4 defects/million = 99.999997% accurate6 Sigma = 3.4 defects/million = 99.999997% accurate

Six Sigma Key ConceptsSix Sigma Key Concepts At its core, Six Sigma revolves around a few key At its core, Six Sigma revolves around a few key

concepts.concepts. Critical to QualityCritical to Quality: : Attributes most important to Attributes most important to

the customerthe customer DefectDefect: : Failing to deliver what the customer wantsFailing to deliver what the customer wants Process CapabilityProcess Capability: : What your process can What your process can

deliverdeliver VariationVariation: : What the customer sees and feelsWhat the customer sees and feels Stable OperationsStable Operations: : Ensuring consistent, Ensuring consistent,

predictable processes to improve what the predictable processes to improve what the customer sees and feelscustomer sees and feels

Design for Six Sigma (DFSS)Design for Six Sigma (DFSS): : Designing to meet Designing to meet customer needs and process capabilitycustomer needs and process capability

Six Sigma MethodologySix Sigma Methodology Six Sigma has two key methodologies: Six Sigma has two key methodologies: DMAIC and DMADV. DMAIC and DMADV. DMAIC is used to improve an existing DMAIC is used to improve an existing

business process. business process. DMADV is used to create new product DMADV is used to create new product

designs or process designs in such a designs or process designs in such a way that it results in a more way that it results in a more predictable, mature and defect free predictable, mature and defect free performance. performance.

Statistical Process Control Statistical Process Control MethodologyMethodology

Statistical process control is an important part of Six Statistical process control is an important part of Six Sigma methodology, which proceeds through the Sigma methodology, which proceeds through the following steps, also called following steps, also called DMAICDMAIC (Define, Measure, (Define, Measure, Analyze, Improve and Control):Analyze, Improve and Control):

1. Define1. Define - benchmarking, process flow mapping, - benchmarking, process flow mapping, flowchartsflowcharts

2. Measure2. Measure - defect metrics, data collection, sampling - defect metrics, data collection, sampling 3. Analyze3. Analyze - Fishbone diagrams, failure analysis, root - Fishbone diagrams, failure analysis, root

cause analysiscause analysis 4. Improve4. Improve - modeling, tolerance control, defect control, - modeling, tolerance control, defect control,

design changesdesign changes 5. Control 5. Control - SPC control charts, performance - SPC control charts, performance

management management

Six Sigma Five PhasesSix Sigma Five PhasesBasic methodology consists of the following five phases Basic methodology consists of the following five phases DMADVDMADV (Define, Measure, Analyze, Design, and Verify): (Define, Measure, Analyze, Design, and Verify):

Define - Define - formally define the goals of the design activity formally define the goals of the design activity that are consistent with customer demands and enterprise that are consistent with customer demands and enterprise strategy. strategy.

Measure - Measure - identify identify CTQs CTQs (Critical to Quality), product (Critical to Quality), product capabilities, production process capability, risk capabilities, production process capability, risk assessment, etc. assessment, etc.

Analyze - Analyze - develop design alternatives, create high-level develop design alternatives, create high-level design and evaluate design capability to select the best design and evaluate design capability to select the best design. design.

Design - Design - develop detail design, optimize design, and plan develop detail design, optimize design, and plan for design verification. This phase may require simulations. for design verification. This phase may require simulations.

VerifyVerify - verify design, setup pilot runs, implement - verify design, setup pilot runs, implement production process and handover to process owners. This production process and handover to process owners. This phase may also require simulations. phase may also require simulations.

Six Sigma Key People Six Sigma Key People RolesRoles

Executive LeadershipExecutive Leadership includes CEO and other key top management includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma team members. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough freedom and resources to explore new ideas for breakthrough improvements. improvements.

ChampionsChampions are responsible for the Six Sigma implementation across the are responsible for the Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws organization in an integrated manner. The Executive Leadership draws them from the upper management. Champions also act as mentor to them from the upper management. Champions also act as mentor to Black Belts. Black Belts.

Master Black BeltsMaster Black Belts, identified by champions, act as in-house expert , identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from the usual rigor of statistics, their time is spent on Belts. Apart from the usual rigor of statistics, their time is spent on ensuring integrated deployment of Six Sigma across various functions ensuring integrated deployment of Six Sigma across various functions and departments. and departments.

Black BeltsBlack Belts operate under Master Black Belts to apply Six Sigma operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. for Six Sigma.

Green BeltsGreen Belts are the employees who take up Six Sigma implementation are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results. guidance of Black Belts and support them in achieving the overall results.

Recognized TrainingRecognized Training GEGE MotorolaMotorola ASQ American Society for QualityASQ American Society for Quality Six Sigma AcademySix Sigma Academy Institute of Industrial EngineersInstitute of Industrial Engineers ISSSP International Society of Six ISSSP International Society of Six

Sigma ProfessionalsSigma Professionals