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1- Six Sigma through Case Studies Certification

Congratulations on making the decision to enter one of the fastest growing occupations in
today's time - the management occupation! According to the U.S. Bureau of Labor
Statistics, the employment in this area is expected to grow by 17 percent through 2018,
which is faster than the average for all occupations. The Bureau notes that though the
overall demand for professionals in the industrial production will not see an increase, project
managers who oversee and execute projects in almost every industry will enjoy good job
prospects. Since it is important that production meets output and quality goals while
remaining within budget, there is a lot of scope in this job for project managers with
knowledge and experience of 'Six Sigma' production techniques. With things looking bright
for managers with good communication and interpersonal skills, backed with the knowledge
of new production technologies and management practices, this is indeed an opportune
time to become a Six Sigma certified project manager and reap the benefits that a welldirected and dedicated effort can bring.

The ExpertRating Six Sigma Through Case Studies Program has been developed by
ExpertRating Ltd, a leader in online testing and certification with over 200,000 certified

professionals in over 40 countries and in over 100 different skill areas. This certification
program is one of the most comprehensive programs available till date and can
successfully guide you towards your goal of becoming a Certified Six Sigma Project
Manager.
You have made the right decision!

Not only have you chosen a Project Management Certification Program that is well
recognized, but you have also made an important and wise decision to enter the
management occupation as a Certified Six Sigma Project Manager. The diversity in the
type of manufacturing, invention of new management techniques and stringent quality
practices will increase the demand for more project managers who are well informed of
these techniques and practices. To remain competitive, Project Managers who keep
themselves updated with the latest management practices and seek to improve the
quality of process outputs by minimizing variability in manufacturing and business
processes using various quality management tools such as Six Sigma, Total Quality
Management, Master Black Belt Management and ISO 9000 will definitely find good job
opportunities.

1.1 The Final Certification Test

After you have gone through the complete program material and revised it, you can appear
for the final test. You must appear for the test without referring to the text material, and it is
advisable that you should be well prepared for the test. The specifications of the test are
mentioned below:
The ExpertRating Exam Format

Type of Exam - Multiple choice with one or more correct answers


Duration - 40 minutes to 1 hour
Number of Questions - 40-60
Question Weightage - All questions carry equal marks.
Navigation - You can go back and answer unanswered questions.

Answer Reviews - You can review the questions at the end of the exam by going back
and answering marked questions.
Exhibits - Some exams will require you to answer a question based upon an exhibit.
Pass marks - 50%
Retake Policy - You can retake the test any number of times by paying the required
retake fee.
Note: Some exams may follow a different format. Please read the exam details carefully
before registering.
All successful candidates will receive a hardcopy Certificate of Accomplishment stating
that they have completed all the requirements of the "Six Sigma through Case Studies"
Program process. This certificate can be used as an instrument for marketing your
project management services as well as for seeking a job. It will take about 3 weeks to
get your certificate through registered post. You will also get an online transcript that you
can immediately use to display your test marks and highlight the areas you are
proficient in. You can link to the online transcript from your website or ask friends,
relatives or business associates to look it up on the internet.

1.2 About The Author

"Mary Adams holds an MBA from McGill University and a PhD in Anthropology. She has
been a business researcher and writer for the past 10 years. Mary has held leadership
positions in private and public organizations across a number of industries such as Health
Canada. In addition to teaching business statistics and evaluative science, Mary has
consulted as a Business Analyst and Management Consultant."

2 Fundamentals of Six Sigma

Overview

Six Sigma methodology encompasses cumulative knowledge and organizational


practice in quality management. While many other quality management methodologies
exist, Six Sigma focuses on preventing product defects instead of simply detecting
them. With numerous qualitative and quantitative tools to address process problems,
Six Sigma is a rigorous methodology that requires the commitment of all members of an
organization.
The main principles of Six Sigma are focused on current process analysis, process
improvement, and defect elimination. To apply these principles to organizational
problems, leadership in a company must implement Six Sigma methodology such as
DMAIC. DMAIC means that project members define, measure, analyze, improve, and
control processes. Each company within an industry must tailor this methodology to its
needs.
The goal behind this course is to expand on Six Sigma principles and methodology
through case studies. The case studies will be drawn from different industries as
follows:
Manufacturing
Service
Finance
Sales and Marketing
Information Technology (IT)
Health Care
Human Resources

The course will also examine organizational transformation as well reporting quality
improvement within organizations.
The learning objectives of this chapter are as follows:
History of Six Sigma
Current process analysis
Process improvement
Defect elimination
DMAIC methodology

Keywords
Input
Output

Process
Shewhart
Gauss
Smith
Welch
Defects
DMAIC
2.1 History of Six Sigma

Six Sigma is both a philosophy and a problem-solving methodology that encompasses the
principles of todays quality management. Unlike numerous existing quality improvement
methodologies, Six Sigma is designed to yield measurable and quantifiable financial returns
and an emphasis on strong leadership and mentorship. They are also designed to give
ownership of certain skills to individuals within the organization, developing distinct
expertise. Finally, Six Sigma is used to improve both current and future business processes.
Six Sigma methodology involves a number of quality management tools as well as
statistical tools creating special designations for individuals within an organization (Green,
Belt) that reflect expertise in these tools and methods.
The evolution of Six Sigma methodology followed a tradition of quality management that
began with the industrial age in the early 19th century. As economies shifted from purely
agrarian to manufacturing ones, production capabilities and efficiency became an interest of
businesses. Quality control can be traced to that time although a methodical approach did
not develop until the beginning of the 20thcentury. The following is a time-line of notable
precedents to Six Sigmas historical development (other precedents also exist):

Figure 2.1 - Six Sigmas Historical Highlights

Historical highlights
Early 19th century Carl Gauss and the normal curve

German Mathematician Carl Frederick Gauss introduces the normal curve for error
analysis in measurements. The normal curve would be used by Shewhart nearly a
century later as a measurement tool in the assessment of process capability.
1924 Dr. Walter A. Shewhart and his work at Bell Telephone

Dr. Shewhart works with Bell Telephone engineers to improve the performance of the
Laboratories began what is termed today as Process Quality Control. One of most
important innovations that he used in controlling processes was his assignment of
problems into assignable-cause and chance-cause. In other words, he aimed to
categorize process inefficiencies that lead to errors into those caused by identifiable
factors and those caused by chance.
1980s Six Sigma beginnings at Motorola

Motorola develops Six Sigma in 1981 to improve the quality and effectiveness of
business and manufacturing processes. Engineer Bill Smith coins the term in 1986 after
realizing that the companys methods for detecting errors did not have sufficient
granularity for their needs. To Smith and other engineers at Motorola, the widely used
method of calculating the number of errors per one thousand opportunities was not
sufficient. For instance, engineers would count the number of defective integrated
circuits produced per 1,000 opportunities. Instead, they expanded it to count the number
of errors per one million opportunities.

This was the launch of a methodology that expanded into Six Sigma. Bill Smith is the
individual credited with advancing the approach that profits can be significantly and
predictably increased if an organization reduces product defects from every process.
Late 1995 Introduction of Six Sigma at General Electric

The CEO of General Electric (GE), Jack Welch, decides to introduce Six Sigma
methodology into GE projects. Welch begins with 200 projects and numerous intensive
training programs for managers and employees. In 1996, Welchs initiative meant that
3,000 Six Sigma projects and many more training programs were in place at the
company. By 1997, the number of projects grew to over 6,000 and many more training
programs were offered to GE managers and employees.
Welchs vision far exceeded his goal of increased productivity and profits to the tune of
$150 million. GEs Six Sigma projects lead to the company gaining over $320 million in
increased productivity and profits. GEs company-wide implementation of Six Sigma
methodology made it the most exciting quality management methodology at the time,
especially given the spectacular results shown by the company. Other companies
followed suit and Six Sigma became widely used by industries from manufacturing and
service to Information Technology (IT) and health care.
Present Six Sigma across industries

Todays corporations and organizations are using Six Sigma to increase productivity and
profits while reducing errors. Six Sigma methodology is implemented across industries
that include manufacturing, service, health care, IT, finance, and non-profit. For
instance, Bank of America uses principles of DMAIC (Define-Measure-Analyze-ImproveControl) to improve the implementation of their learning solutions. Managers and
frontline employees use the principles to improve program management and daily
operations.
Nation-wide companies such as Home Depot use the principle of Voice of the Customer
(VOC) to improve services offered to customers. The goal of VOC is to incorporate
customer requirements into design specifications for both products and services.