TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universitt Mnchen

Background and Meaning of Six Sigma

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 1
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Learning Objectives
Understand the origins of the Motorola Six Sigma methodology.
List the six main themes of Six Sigma
List the phases of the DMAIC process improvement cycle
Understand the Six Sigma Roadmap and the problem solving strategy
Y(Critical-to-Quality Parameters) = f(key X-influencing parameters: x1,
x2, x3)

Holly Ott 2
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

The Six Sigma System

The Six Sigma system is a comprehensive and flexible system for

achieving, sustaining and maximizing business success.
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 3
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Six Sigma Origins and Development

The term Six Sigma was coined by Bill Smith at Motorola.
Dr. Mikel Harry: Motorolas Six sigma Research Institute.
1987 Motorola officially launched its Six Sigma program.
Achieve a near-perfect, 6, quality the defect rate in the production of
each component will not be more than 3.4 parts per million.
1988 Motorola won the Malcolm Baldridge Award for Business
Excellence
Adoption by General Electric and Allied Signal (Honeywell)

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Motorola's Six 2012 from "A First Course in Quality

Engineering: Integrating Statistical and
Management Methods of Quality" by K.S.
Sigma Capability Krishnamoorthi. Reproduced by
permission of Taylor and Francis Group,
LLC, a division of Informa plc.

Holly Ott 5
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Six Sigma Terminology

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 the process. Sigma capability
measures the capability of the process to produce defect-free outputs.
A defect occurs during any process step when the outcome of the process
step is not the expected outcome.
The expected outcome means that the conditions of the outcome are
specified in advance.

Holly Ott 6
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer

All images sed with permission from Kopschitz Kerzen

and the European Candle Association.

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 7
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer
Data and Fact-Driven Management

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 8
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer
Data and Fact-Driven Management
Process Focus

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 9
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer
Data and Fact-Driven Management
Process Focus
Proactive Management

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 10
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer
Data and Fact-Driven Management
Process Focus
Proactive Management
Boundaryless Collaboration

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 11
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universitt Mnchen

Themes of Six Sigma

Focus on the Customer
Data and Fact-Driven Management
Process Focus
Proactive Management
Boundaryless Collaboration
Drive for Perfection (with tolerance for failure)
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott 12