Six Sigma

Green Belt

Six Sigma Overview

- What is Six Sigma?

-6 -4 -2 0 2 4 6
 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
Six Sigma Includes… Green Belt

Master Black Belts, Black Belts, Green Belts

Business Process Council Training

Sponsors/Champions DFSS Teams

DMAIEC Sigma Calcs

Strategy
DASHBOARDS that Change Processes
Drive to Achieve Projects
Strategy Acceleration
Rewards, Recognition, ACTIVE
Promotions, Bonuses: DOE Leadership
NOT OPTIONAL! Lean Sigma

Six Sigma can seem overwhelming! What IS 6?

 Six Sigma
Sigma Is a Measure of Process Capability... Green Belt

Customer
Requirement 6
Sigma DPMO 5
4
1 680,000 3
2 298,000 2
3 67,000 1
4 6,000
5 400
6 3.4

DPMO – Defects per Million Opportunities

…that focuses on the average and variation of the output.

 Six Sigma
Importance of Reducing Variation Green Belt

 To increase a process performance, you have to decrease variation

 Less variation provides

• Greater predictability in the process
• Less waste and rework, which lowers costs
• Products and services that perform better and last longer
• Happier customers
 Six Sigma
What Is the Goal? Green Belt

Six Sigma is about satisfying

customer needs profitably

From GE Capital’s Six Sigma Vision

 Six Sigma
Six Sigma’s Methodologies Green Belt

Alignment & Linkage to Business

Strategy & Transformation Objectives

Design new products and Improve existing processes

processes that meet so that their outputs meet
customer needs customer requirements

Six Sigma
Process Management
Control and Manage cross-functional
processes to meet business goals
 Six Sigma
How Can Six Sigma Help Us? Green Belt

 Provides a standard toolkit to improve business processes

 Makes processes transparent, manageable

 Enables fact-based decision making

 Provides a platform for profitable growth

 Aligns organizational and process goals

 Helps establish customer focus

 Establishes a common language

 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
What Is Sigma? Green Belt

Sigma is the scale that compares the output of a process to customer or

design specifications.
Customer Customer
spec spec

FREQUENCY
FREQUENCY

70 80 90 95 100 70 80 90 95 100

Dimension Dimension

Getting better requires reducing the variation and

moving the average away from the spec limit.
 Six Sigma
Sigma Advantages Green Belt

Which process is performing best?

PROCESS PERFORMANCE

Call servicing 32 seconds vs goal of 35

Manufacturing Cable 98% defect free

Accounts Receivable 33 days average aging vs goal of 40

Customer Service 82% rated 4 or 5 on responsiveness

The Sigma Scale provides a common metric for comparison.

 Six Sigma
Sigma Advantages Green Belt

Percent DPMO 

93% 66,800 3.0

98% 22,700 3.5

99% 6,210 4.0

99.87% 1,350 4.5

99.9997%
3.4 6.0

99% seems outstanding; but 6,210 DPMO reveals

significant room for improvement.
 Six Sigma
Calculating the “Sigma Level” Green Belt

“Counting Defects” Approach:

 A packaging process is required to put at least 5 kg. of fertilizer in each bag.
In addition, the fill date must be stamped on the bag.
 Last weeks performance:
• Bags produced (units) – 10,000
• Under-filled bags – 62
• Fill dates missing – 21
• Number of defect opportunities - 2
 Sigma Calculation:

defects
DPMO  106
no. opps  no. units From Sigma Table:

62  21
DPMO  106  4150 Sigma Level ~ 4.1
2 10,000
 Six Sigma
Sigma Conversion Table Green Belt
Long-Term Process Yield Short-Term DPMO
(%) Sigma

94.52 3.1 54,799

6.68 0 933,193
95.54 3.2 44,565
8.08 0.1 919,243
96.41 3.3 35,930
9.68 0.2 903,199
97.13 3.4 28,716
11.51 0.3 884,930
97.73 3.5 22,750
13.57 0.4 864,334
98.21 3.6 17,864
15.87 0.5 841,345
98.61 3.7 13,903
18.41 0.6 815,940
98.93 3.8 10,724
21.19 0.7 788,145
99.18 3.9 8,198
24.20 0.8 758,036
99.38 4 6,210
27.43 0.9 725,747
99.53 4.1 4,661
30.85 1 691,462

34.46 1.1 655,422 99.65 4.2 3,467

38.21 1.2 617,911 99.74 4.3 2,555

42.07 1.3 579,260 99.81 4.4 1,866

46.02 1.4 539,828 99.87 4.5 1,350

50.00 1.5 500,000 99.90 4.6 968

53.98 1.6 460,172 99.93 4.7 687

57.93 1.7 420,740 99.95 4.8 483

61.79 1.8 382,089 99.97 4.9 337

65.54 1.9 344,578 99.98 5 233

69.15 2 308,538 99.98 5.1 159

72.57 2.1 274,253 99.989 5.2 108

75.80 2.2 241,964 99.9927 5.3 72

78.81 2.3 211,855 99.9951 5.4 48

81.59 2.4 184,060 99.9968 5.5 32

84.13 2.5 158,655 99.9979 5.6 21

86.43 2.6 135,666 99.99866 5.7 13

88.49 2.7 115,070 99.99914 5.8 8.5

90.32 2.8 96,801 99.99946 5.9 5.4

91.92 2.9 80,757 99.99966 6 3.4

93.32 3 66,807
 Six Sigma
Calculating the “Sigma Level” Green Belt

When Process Data is Continuous:

 A packaging process is required to put at least 5 kg. of fertilizer in each bag.
 Last weeks performance:
• Bags produced (units) – 10,000
• Mean Fill Weight: 5.1 kg.
• Standard Deviation of Fill Weight: 0.03 kg.
 Sigma Calculation:

X  LSL 5.1  5.0

Z   3.33
s 0.03

“Short-Term Sigma Level

 Six Sigma
Attacking Problems—Pre-Six Sigma Green Belt

PRACTICAL
PROBLEM

PRACTICAL
SOLUTION

NEXT PROBLEM

In some cases, effective . . . But can result in fire fighting and in

recurring problems.
 Six Sigma
The Six Sigma Way to Attack Problems Green Belt

PRACTICAL STATISTICAL
Define PROBLEM PROBLEM
Measure

Control

Execute PRACTICAL STATISTICAL

SOLUTION SOLUTION Analyze

Identify

What Factors Drive

NEXT PROBLEM Performance?
How Can We Prevent
Problem Reoccurrence?
 Six Sigma
The Power of the DMAIEC . . . Green Belt
Not just an assortment of tools, but what to do at Control
each step of the improvement process. • QC Chart
• Documentation
• Monitoring
Analyze
• DoE Improve
• Regression • Select Solutions
• ANOVA • Risk Analysis
• t-tests
• Process Analysis
Execute
• Planning
• Piloting
• Planning
• Implementation

Define Measure
• Charter • Data Collection Plan
• VOC • Gage R&R
• SIPOC • Control Chart
• CE Matrix • Capability Analysis

Common language and synergy

of employing a standard
improvement approach
 Six Sigma
The DMAIEC Way to Attack Problems Green Belt

PRACTICAL DEFINE:
PROBLEM We are not consistently achieving “Ready for Control” (Y).

MEASURE:
STATISTICAL There was a lot of variation in “Y” - poor performance (RFC
PROBLEM = 35%, 1.1). Determined RFC was a function of (1) boiler
tube failures, (2) excessive cooldown (previous shutdown),
(3) turbine first-stage metal temperature control, and (4)
operator errors. The boiler tube failures and temperature
control were major contributors
ANALYZE:
STATISTICAL Pareto Analysis & Weibull Analysis of boiler tube failures
SOLUTION revealed inadequate water/steam flow in the ends of the waterwall
tubesheet

IDENTIFY/EXECUTE AND CONTROL:

PRACTICAL
Design changes improving flow distribution were implemented
SOLUTION and process is currently achieving RFC 91% of the time (2.7)
(other countermeasures also contributing).
 Six Sigma
Design For Six Sigma (DFSS)…What is it?? Green Belt

 A process - a more structured approach to design

 A tool set
 An enhancement to our current design process
 A tool for assessing and mitigating risk
 Teamwork
 Customer focused
 A culture change

“…a continuation of the six sigma tool set being applied

specifically to process, product, or service design.”
 Six Sigma
DFSS – “50,000 foot” View Green Belt

Define Measure Explore Design Validate Implement

• Launch The • Identify • Develop • Develop Detailed • Build Pilot • Build Full-Scale
Project Customers Product/ Service Product & Service Processes Processes, Train
Necessary Designs Staff
Define Define State of Functions Validate Pilot
Outcomes Current Develop Detailed Readiness Perform Start-up
Customer Develop Production Testing
Scope Project Knowledge Conceptual Processes Perform Pilot
Product/ Service Testing Analyze Gaps,
Identify Develop & Designs Refine Capability Determine Root
Stakeholders Implement & Gap Evaluation, Analyze Gaps, Causes
Customer Develop High- Perform Tradeoffs Determine Root
Select Team Research Plan Level Production Causes Transition to
Processes Develop Process Process Owners
Determine Translate Control & Evaluate Scale-
Project Customer Needs Predict Validation Plans up Potential Evaluate & Close
Approach to Product/ Capability & Design Project
Service CTQ’s Evaluate Gaps Develop
Create Project Implementation
Plan Specify Targets, & Transition
Tolerance Limits Plans
Define Project & Sigma Targets
Controls

- Design Review
 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
Six Sigma’s Broad Application Green Belt

• J&J over $1 Billion in 2 years

Six • GE Capital over $1 Billion in value in 1996.
Sigma • JP Morgan created $510 Million in value in year one
Results
• AIG found $38 million in revenue from one of first nine projects

 Sigma often reveals that less than 10% of total service process time is
devoted to value-added work.
 Measuring the “soft stuff” becomes not only possible but profitable.
• Quality of Deal teams. VOC says experience in industry and size of
deal were the decisive factors in which firm to engage for an IPO.
Quantified & easily measured.
• Quality of Communications in a leasing business. Do you notify me of
changes in schedule, do I have a designated rep, do you return calls,
emails etc within 8 hours? Quantified & easily measured.
• Quality of Customer Contact. “10, 5, first and last” teller measures.
Quantified & easily measured
 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
Six Sigma Challenges Green Belt

New (?) Ways of Thinking...

 Customer Thinking (customer specs)
 Process Thinking (leading indicators)
 Statistical Thinking (variation)
 Causal Thinking [y = (x1, x2, x3 … xn)]
 Experimental Thinking (data-driven hypothesis testing)
 Control Thinking
 Stretch Thinking
 Adopting Common language/way of thinking about problems
 Accountability Thinking

The real Six Sigma advantage…

the transformation of the culture.
 Six Sigma
Green Belt

What is Six Sigma?

• What is it?
• How does it work?
• What are the Benefits?
• What are the Main Challenges?
• What will it take?
 Six Sigma
General Electric – The Benchmark! Green Belt

“Senior leadership, especially Jack

Welch, provided unyielding commitment
to get the initiative going and ensure its
continued success. This will not be easy
for other companies to copy.”

Hoerl, Roger (2002), “An Inside Look at Six

Sigma at GE,” Six Sigma Forum Magazine, Vol.
1, No. 3, May, pages 35-44.
 Six Sigma
General Electric – The Benchmark! Green Belt

“Six Sigma was directed toward specific,

tangible objectives, including financial
objectives. The culture changed as a
result of delivering tangible benefits, not
because of a focus on the culture itself.”

Hoerl, Roger (2002), “An Inside Look at Six Sigma

at GE,” Six Sigma Forum Magazine, Vol. 1, No. 3,
May, pages 35-44.
 Six Sigma
Six Sigma At 3M Green Belt

 500 Black Belts and Master Black Belts “for

ever and ever”
 Each has a two-year assignment.
 All 28,000 salaried and technical people trained
at least at Green Belt level. Many hourly people
selected also for Green Belt training.
 Major goal is to have for first time common
approach to problem solving, new product
development, and measurement across entire
company.

W. James McNerney, Jr. CEO, 3M Company, 25 June

2002
 Six Sigma
Twenty Key Lessons Learned Green Belt

1. The time is right.

2. The enthusiastic commitment of top management is
critical.
3. Develop an infrastructure.
4. Commit top people.
5. Invest in relevant hands-on training.
6. Select initial projects to build credibility quickly.
7. Make it all pervasive, and involve everybody.
8. Emphasize DFSS.
9. Don’t forget design for reliability.
10. Focus on the entire system.
Gerald J. Hahn, “20 Key Lessons Learned,” Six
Sigma Forum Magazine, May 2002, pages 28-34.
 Six Sigma
Twenty Key Lessons Learned Green Belt

11. Emphasize customer CTQs (critical to quality).

12. Include commercial quality improvement.
13. Recognize all savings.
14. Customize to meet business needs.
15. Consider the variability as well as the mean.
16. Plan to get the right data.
17. Beware of dogmatism.
18. Avoid nonessential bureaucracy.
19. Keep the tool box vital.
20. Expect Six Sigma to become a more silent partner.

Gerald J. Hahn, “20 Key Lessons Learned,” Six

Sigma Forum Magazine, May 2002, pages 28-34.
 Six Sigma
Green Belt

Shareholder Value
Customer Loyalty/Revenue Growth

Cost/Working Capital Reduction

Six Sigma
Business Voice of Change Process
Methodologies
Dashboards the Customer Management Management
& Tools

The Essential Role of Leadership

 Six Sigma
The Strategic Process-Management Approach Green Belt

1. Identify Core Business Processes and Strategic Opportunities

2. Define Process Goals that lead to Competitive Advantage

3. Determine the Process Measures needed to evaluate Process

Performance

5. Project Selection 4. Process Management

Identify & Prioritize Performance Gaps Develop Process Goals & Dashboards

Validate Measurement & Causal

Identify Priority Projects Relationships

Charter, Launch and Support Projects Assign and Build Accountabilities

 Six Sigma
Six Sigma Companies - Characteristics Green Belt

 Start with a prioritized list of customer and business requirements and

specifications

 Have a clear sense of process owners

 Track performance over time

 Analyze causes of process and output variation with statistical and process
analysis tools

 Think systematically about solutions and determine financial return (the ROI
may not be there to move from 4.5 to 6.0 Sigma)

 Standardize processes to hold the gains

Six Sigma is prioritized, disciplined problem solving to

deliver on-target performance with minimum variation.
 Six Sigma
Six Sigma Summary Green Belt

Six Sigma IS’s: Six Sigma NOT’s:

 A Framework to Improve  The Solution for Everything
Performance  Applicable Only to
 Applicable to Every Function Manufacturing
and Business  It’s Just About Statistics
 About Business
Performance
 Six Sigma
Using 6 to Achieve Your Co’s Objectives Green Belt

1. Large Group Discussion: What are the Your Company Business

Objectives/Opportunities?

2. As a small group, discuss how the Six Sigma Approach can help
Your Company Achieve the Business Objectives.

3. What will Six Sigma not achieve, relative to the Objectives?

4. Summarize your team conclusions on a flipchart and be prepared to

discuss your list with the large group.