Six Sigma Overview

Six Sigma Overview

Objective
In This Module We Will.
Understand the objective of Six Sigma
Understand the Six Sigma measurement
Gain an understanding of the Six Sigma
terminology
Introduce the DMAIC process/methodology
Understand the objective of each of the 5 phases
(DMAIC) of Six Sigma methodology
Discuss the differences between Six Sigma and
other corporate initiatives.
Six Sigma Overview

Is 99% Good ?

Six Sigma Overview

99% Accuracy
Practical Meaning of 99% Good
20,000 lost articles of mail per hour

Unsafe drinking water almost 15 minutes each day

5,000 incorrect surgical operations per week
2 short or long landings at most major airports each
day
200,000 wrong drug prescriptions each year
No electricity for almost 7 hours each month
99% Is NOT Good Enough Anymore
Six Sigma Overview

6 s The Measurement

99.0% = 3.85 s
99.9996% = 6 s
Is there really a big difference
between 99.0% & 99.9996%?

Six Sigma Overview

Facts
All work is a process
All processes have variation and waste
Variation causes defects waste causes
loss
Processes can be improved by
understanding the nature of the variation
and waste

Six Sigma Overview

Methodologies
ISO

DFSS

Lean
Waste Elimination

Design For
Growth

Six Sigma
Variation Elimination

Six Sigma Overview

Lean Philosophy
Anything the customer will not
pay for is Non-Value Added

80% of Non-Value Added is waste

Six Sigma Overview

Six Sigma
Culture

6s

Common
Language

Methodology

Process
Focus

Project

DMAIC

Department Link

DFSS (IDOV or DMADV)

Change

Tool Kit

Roles and
Commitment

Defect Elimination
Variation Reduction
Six Sigma Overview

Change Management

Culture

6s

New Way of Looking at

Problems
Methodology

Fact Based Decision Making

Common Language

DMAIC

Department Link

Tool Kit

Change
Roles and Commitment

Defect Elimination

Change

Not Relying on Gut Feel

Variation Reduction

Change Management

Six Sigma Incorporates Change Management

Six Sigma Overview

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Six Sigma Methodology is

Change
Six Sigma Is

Six Sigma Is Not

Structured Problem
Solving

Gut Feel
Reliance On Best
Customer

Fact Based Decision

Making

That Wont Work

Here

Rigorous
Methodology

Opinion

Management By Fact

Statistically Based

Weve Tried That

Firefighting

Team Driven
Six Sigma Overview

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The Methodology

Culture

6s

Methodology
Methodology

Common Language

DMAIC

Department Link

Tool Kit

Change

Defect Elimination

Roles and Commitment

Variation Reduction

Six Sigma Overview

Scalable to the depth

and breadth of the
organization
Applicable to all
business regardless
of size or industry
Project focused
depending upon the
strategic direction of
the organization
12

Getting to Six Sigma

How far can insp

ection get us?

Six Sigma Overview

13

Inspection Exercise
Instructions:

Count the number of times the 6th

letter of the English Alphabet
appears on the next slide.

Ff
Six Sigma Overview

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The MacFeenie Company was founded by Fannie

MacFeenie of Fredericksburg, Florida. The
MacFeenie Company finds first the finest freshest
fish for feeding hungry people. The MacFeenie
Company can compete with Floridas finest fish
foundries because Fannie MacFeeneie who is the
founder of the company deployed Six Sigma five
years ago. Now The MacFeenie Company finds
defects caused by variation and removes them from
processes. This helps the MacFeenie Company
satisfy their customers first, thereby facilitating
valuable market share from fierce fish foundry
competition.
Six Sigma Overview

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The MacFeenie Company was founded by Fannie

MacFeenie of Fredericksburg, Florida. The
MacFeenie Company finds first the finest freshest
fish for feeding hungry people. The MacFeenie
Company can compete with Floridas finest fish
foundries because Fannie MacFeenie who is the
founder of the company deployed Six Sigma five
years ago. Now The MacFeenie Company finds
defects caused by variation and removes them from
processes. This helps the MacFeenie Company
satisfy their customers first, thereby facilitating
valuable market share from fierce fish foundry
competition.
Six Sigma Overview

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F Exercise Sigma Level

Number Missed

DPMO

Sigma Value*

Yield(%)

27027

3.4

97.3%

81081

2.9

91.9%

135135

2.6

86.5%

216216

2.3

78.4%

10

270270

2.1

73.0%

12

324324

1.95

67.6%

15

405405

1.75

59.5%

Total # F (f): 37, Opportunity: 1 slide

DPMO Calculations = (# missed/Total # F) * 1,000,000/# Opportunities
Sigma Calculation: Normal Distribution Z Table with 1.5 sigma shift
Yield (%) = # Correct / Total # F
NOTE: Sigma Level and Yield above are approximate short term calculations

Six Sigma Overview

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The Goals Of Six Sigma

Defect Reduction

Yield Improvement

Improved Customer Satisfaction

Higher Net Income

Six Sigma Overview

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Six Sigma The Methodology

Six Sigma Overview

19

Process Vs. Customer

LSL

Defects

USL

Acceptable

Defects

Customer Requirement

Process Performance
Process Performance And Customer Requirement Often Do Not Match
Six Sigma Overview

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6 Sigma The Basic Process

1. Understand the Customer Requirements

2. Reduce Variation Waste Within The Process To Reduce the

Defects

3. Center the Process Around The Customer Requirements

4. Control The Process

Six Sigma Overview

21

DMAIC - 5 Phase
Approach
Define

Measure

Analyze

Improve

Control

The Six Sigma Projects Are Completed By Following A 5 Phase Approach

Six Sigma Overview

22

Define Phase Objectives

Define

Identify customer requirements

Identify corresponding process

Measure

Analyze

Determine relationship between process

and customer
Scope project
Identify problem statement

Improve

Identify team
Develop project contract

Control

Six Sigma Overview

23

Measure Phase Objectives

Define

Identify process input and output variables

Measure

Identify steps in process

Remove waste from process

Analyze

Improve

Tools
Process Mapping

Control

Six Sigma Overview

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Analyze Phase Objective

Define

Identify sources of variation

Measure

Identify sources of waste

Identify key variables

Analyze

Improve

Tools
C&E Fishbone

Control

Six Sigma Overview

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Improve Phase Objective

Define

Measure

Optimize process by making

improvements

Analyze

Improve

Tools
Brainstorming

Control

Six Sigma Overview

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Control Phase Objective

Define

Measure

Control the optimized process

Analyze

Improve

Control

Tools
Standard Operating Procedure
Mistake Proofing

Six Sigma Overview

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Six Sigma Tool Box

Define

Measure

Analyze

Improve

Control

Benchmarking

Value Stream
Map

Fishbone
Diagrams

Modeling

SPC Charts

Process Flow
Mapping

Cause & Effect

FMEA

Tolerance
Control

Performance
Metrics

Flow charts

Defect Metrics

Root Cause
Analysis

Defect Control

Multiple
Regression

Project Charter
as a Team

Statistical
Analysis

ANOVA

Design
Changes

Train

Set Up a Plan
& Guidelines
for Team

Data Collection Cause & Effect

Diagram
Run Charts,
Time Series
Chars, Time
Value Charts,
Pareto Charts

Piloting

Review
Existing Data

Sampling

Best Practices

Scatter Plots

SIPOC
Six Sigma Overview

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Six Sigma Infrastructure

Six Sigma Overview

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Enterprise Wide Six Sigma Roles

Executives
Project
Team
Members

Senior
Champion

All departments have

processes
Green
Belts

All processes can be improved

6s

All departments should

implement Six Sigma

Project
Champion

Most low hanging fruit can

be found outside of
manufacturing
Finance
Champion

Black Belts

Six Sigma Overview

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