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Six sigma

Introduction

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expectatio
ns

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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contents
Six Sigma Intro
BPMS
DMAIC

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15 min

Two Meanings of Sigma

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.

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Origin of Six Sigma


Motorola

the company that invented Six Sigma


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 its Six Sigma program

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The Growth of Six Sigma


GE

the company that perfected Six Sigma


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

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The Growth of Six Sigma

The GE model for process improvements

Define

Measure Analyze Improve Control

Combination of change management & statistical


analysis

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The Growth of Six Sigma

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BPMS

Business Process Management


System

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The Need of BPMS


To understand the process; its mission, flow and scope
To know the customers and their expectations
To identify, monitor and improve correct performance measures for
the process

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The Methodology
Map process
steps,
identify
input/ output
measures
Define Process
Mission

Define
purpose of
the process,
its goal and
its
boundaries

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MSA, DCP,
indicators
and monitors

Map Process

VOC and VOP

Identify
Critical to
Quality and
Critical to
process

Service
excellence
and process
excellence

Build PMS

Develop
Dashboards

Visual
representatio
n of
performance

The DMAIC
cycle

Identify
Improvement
Opportunities

DMAIC

Six Sigma Improvement


Methodology

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What is DMAIC ?
A logical and structured approach to problem solving and process
improvement
An iterative process (continuous improvement)
A quality tool with focus on change management

Effectiveness

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Quality
Acceptance
Improvement

The Approach
Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution

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Methodology
D
Define
M
Measure
A
Analyze

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

I
Improve

Confirm and test the statistical solution

C
Control

Convert the statistical solution to a practical solution

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Define
D
Define

VoC - Who wants the project and why ?

M
Measure

The scope of project / improvement

A
Analyze

Key team members / resources for the project

I
Improve

Critical milestones and stakeholder review

C
Control

Budget allocation

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Measure
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
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Ensure measurement system reliability


- Is tool used to measure the output variable flawed ?
- Do all operators interpret the tool reading in the same
way ?

Prepare data collection plan


-

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 ?

Collect data

Analyze
D
Define
M
Measure

Understand statistical problem

Baseline current process capability

A
Analyze
I
Improve
C
Control
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Define statistical improvement goal

Identify drivers of variation (significant factors)

Analyze Identify Drivers of Variation


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
Primary
Cause

Secondary
Cause

Proble
m

Backbon
e

Root
Cause
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Analyze Identify Drivers of Variation


Control Impact Matrix
A visual tool that helps in separating the vital few from the trivial many

Control

Impact

Vital Few

Cost Ineffective

High Control High


Impact

Low Control High Impact

Cost Ineffective

Trivial Many

High Control Low Impact

Low Control Low Impact

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Analyze Identify Drivers of Variation


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)
35

100%

30
25

80%
60%

20
15

40%

10
5

20%

0%
L

Frequency
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Cumulative Frequency

Analyze Identify Drivers of Variation


Process Map Analysis
Visually highlights hand off points / working relationships between
people, processes and organizations
Helps identify rework loops and non value add steps
Customer

Process A

Process B

Vendor

A
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Analyze Identify Drivers of Variation


Hypothesis Testing
A statistical tool used to validate if two samples are different or
whether a sample belongs to a given population
Null Hypothesis (Ho) is the statement of the status quo
Alternate Hypothesis (Ha) is the statement of difference
Homogeneity of
Variance

Chi-Square

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One way ANOVA


Moods Median

Regression

Improve
D
Define

Map improved process

M
Measure
A
Analyze
I
Improve
C
Control
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Pilot solution

Identify operating tolerance on significant factors

Control
D
Define
M
Measure

Ensure measurement system reliability for


significant factors
- Is tool used to measure the input / process variables flawed ?
- Do all operators interpret the tool reading in the same way ?

Improved process capability

A
Analyze
I
Improve
C
Control
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Sustenance Plan
- Statistical Process Control
- Mistake Proofing
- Control Plan

Control Sustenance Plan


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 ?

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Six Sigma Organization

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Six Sigma - Three Dimensions


Customer

Define

Measur
e

Analyze

Improve

Process B

Vendor

Control

Driven
by
custom
er
needs

Process Map Analysis


LSL

Led by
Senior
Mgmt

Process A

Methodology

Organization

Tools

US
L

Regression

Upper/Lower
specification
limits

35

100%

30
25

80%
60%

20
15

Enabled by quality
team.

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Process variation

40%

10
5

20%

0%
L

Frequency

Cumulative Frequency

Pareto Chart

The Quality Team


Master Black Belt

- Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black Belts

- Backbone of Six Sigma Org


Black Belt
- Full time resource
- Deployed to complex or
high risk projects

Black Belt

Green Belt

Green Belt
Green Belt

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- Part time or full time


resource
- Deployed to less complex
projects in areas of functional
expertise

Thank You

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