SIX SIGMA

ORIGINS & DESTINATIONS,

SUSTAINABILITY & QUALITY CULTURE

DEPARTMENT OF STATISTICS
REDGEMAN@UIDAHO.EDU OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT
SIX SIGMA from PRODUCTS to POLLUTION to PEOPLE:
MIGRATION from ENGINEERING & BUSINESS to the
NATURAL and SOCIAL ENVIRONMENTS

DR. RICK L. EDGEMAN, PROFESSOR & CHAIR & SIX SIGMA BLACK BELT
DEPARTMENT OF STATISTICS, UNIVERSITY OF IDAHO

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REDGEMAN@UIDAHO.EDU
 SIX SIGMA
IS A HIGHLY STRUCTURED STRATEGY FOR ACQUIRING,
ASSESSING, AND ACTIVATING CUSTOMER, COMPETITOR, AND
ENTERPRISE INTELLIGENCE LEADING TO SUPERIOR PRODUCT,
SYSTEM, OR ENTERPRISE INNOVATIONS AND DESIGNS THAT
PROVIDE A SUSTAINABLE COMPETITIVE ADVANTAGE.

DEPARTMENT OF STATISTICS
“Often,problems are knots
with many strands, &
looking at those
strands can make
make a problem
seem different.”

Mr. Rogers
ORIGIN

DESTINATION
ORIGIN
How?

s
D

rn
ep

ce
Ethical
lo

on

Moral
y

rC
m
en

de
t

ol
eh
tak
gS
By When pe
tin
m
Co

Legal DESTINATION
 Consider the difficulty
- in the material sense -
of making something out of nothing.
Our generation consistently makes inefficient use
of resources, human and natural alike.
It may well be possible to make something
- and make it better - out of less.
 Define
Define the problem and
customer requirements.

Measure defect rates and

document the process in its
current incarnation.
Control Measure
Analyze process data and
determine the capability of
the process.

Improve the process and

remove defect causes.

Improve Analyze
Control process performance &
ensure that defects do not recur.

INNOVATION & THE DMAIC ALGORITHM

DESIGN FOR SIX SIGMA (DFSS)
Define
Define customer requirements and
goals for the process, product or service.

M easure and match performance

Measure to customer requirements.
Verify
Analyze and assess the design for
the process, product or service.

Design and implement the array of

new processes required for the new
process, product or service.

Verify results and maintain

Design Analyze performance.
 DEPARTMENT OF STATISTICS

BUSINESS Six Sigma Innovation

and Design Origins ENGINEERING

Figure 1. Early intellectual focus of Six Sigma Innovation & Design wherein
application and development occur primarily in business and engineering but
with methodologies borrowed liberally from, e.g., statistics, the so-called seven
“old” or statistical tools of quality, and the seven “new” tools of quality. Initial
thrust: improve quality and financial results with melded disciplines such as
Engineering Management or Management of Technology attempting to bring
these together in identifiable academic homes.
 SSID
Curriculum
Deployment

Figure 2. The Magnet instructional model deploys a Six Sigma Innovation & Design
(SSID) curriculum via central control at the unit, departmental, or college level –
typically as an initiative emanating from one of statistics, business, or engineering – first
for its own students, but also to attract students from other, targeted fields from across
the institution.
 SCIENCE &
TECHNOLOGY-
INTENSIVE
FIELDS

BUSINESS 
EXPANDING ENGINEERING
SIX SIGMA
Figure 3. Six Sigma Innovation & Design as solutions provider with limited
expansion of SSID to new fields as well as some new learning within SSID from other
fields as depicted by the two-way arrow and the semi-permeability of the inner-circle.
New areas, e.g., Systems & Entrepreneurial Engineering (SEE) are identified.
 SSID
Core

Figure 4. The radiant instructional model has a core of courses in Six Sigma
Innovation & Design provided by the central unit, but with elective SSID courses in
“boundary crossing” and “discipline specific” areas offered to students from and in
other technology-intensive fields across the institution. Other fields follow.
SIX SIGMA INNOVATION & DESIGN COLLABORATION
Interdisciplinary Teams & Projects

Intelligent Systems Innovation & Design.

Concept  Technical Feasibility  Commercial Feasibility.
Disciplinary Breadth
Product & Systems Innovation & Design

Technical Feasibility

Commercial Feasibility

Selling the Solution

Project Management

Figure 5. Six Sigma Innovation & Design’s Core Curricular Trajectory

SIX SIGMA INNOVATION & DESIGN COLLABORATION
University Requirements:
Disciplinary Breadth

Quality Innovation & Design Statistics

Office of Technology Commercialization

Innovation & Design

Entrepreenurship Program

Entrepreneurial Mentors:

Academic Major:
Functional Depth
Intellectual Property

Technology / Entrepreneurship Six Sigma Innovation

Systems
Design for Six Sigma Legal Environment
Six Sigma Mentors

Innovation & Design Capstone

Quality Innovation & Design Mentors

Technical Feasibility & Project Management
Interdisciplinary Teams & Projects:
Disciplinary Integration
Mentor’s Mentor:
Program Management
Figure 6. An Six Sigma Innovation & Design curriculum featuring a common
core and extensive intra- and extra-program engagement.
 SIX SIGMA INNOVATION & DESIGN COLLABORATION
Interdisciplinary Teams & Projects

Functional Depth
Disciplinary Integration
Innovation & Design
Entrepreneurial Mentors
Mentors
Intellectual Property / Mentor’s
Tech. Commercialization Mentors

Faculty Mentors Six Sigma Mentors

Public Sector Private Sector

Six Sigma Black Belts

Corporate Mentors

Figure 7. The people providing core level breadth and depth in an academic
Six Sigma Innovation & Design program. The model is both intra- and extra-
institutional.
 Gather Intelligence
Initiate
Leverage: Outreach
Your friend is my friend
Learn & Inform
Su amigo es
mi amigo Exchange
Raise Friends:
Extend: A Core Expansion and Fusion
Broaden, Deepen, Lengthen Strategy Built on CRM Invite
Applications will Reciprocate
Deliver:
Provide the Win-Win Follow
RESULT
Engage
Enrich
Deepen the Win-Win Vision

Establish
Formalize
Figure 8. Spreading the Six Sigma Innovation & Design Gospel
 SCIENCE &
ENVIRONMENTAL
TECHNOLOGY- MANAGEMENT &
INTENSIVE ENGINEERING
FIELDS
SIX SIGMA
AND

BUSINESS RECIPROCITY ENGINEERING

HEALTH &
LEGAL & SOCIETAL
BIOMEDICAL
APPLICATIONS
FIELDS
Figure 9. Mutual enrichment of Six Sigma Innovation & Design and other fields as
indicated by increasingly permeable boundaries and two-way arrows. Stimulated by
interdisciplinary intra- and entrepreneurial innovation and invention and creation of
new markets encourages SSID to both lend to and borrow from other fields.
 SCIENCE &
TECHNOLOGY- ENVIRONMENTAL
INTENSIVE MANAGEMENT &
FIELDS ENGINEERING

BUSINESS
SIX SIGMA ENGINEERING
FUSION
SOCIETAL HEALTH &
APPLICATIONS BIOMEDICAL
FIELDS
Figure 10. Anno Domini 2020 Vision for Six Sigma: Boundary-less model for
fusion of Six Sigma Innovation & Design with other fields wherein increasingly
free exchange of information, methods and strategies concurrently expands the
frontiers of multiple fields and blurs their boundaries.
 • Extract Fossil Fuels & Minerals, and Produce Persistent
Substances Foreign to Nature, at Rates that are not Faster than
Their Slow Redeposit into the Earth’s Crust
• Reduce the Use of the Four Generic Resources Used in Construction:
Energy, Water, Materials and Land.
• Maximize Resource Reuse and / or Recycling
• Use Renewable Resources in Preference to Non-Renewable Resources
• Minimize Air, Land and Water Pollution at Global and Local Levels
• Create a Healthy, Non-Toxic Environment
• Maintain and Restore the Earth’s Vitality and Ecological Diversity
• Minimize Damage to Sensitive Landscapes, Including Scenic,
Cultural, Historical and Architectural
 Ensure Financial Affordability for Intended Beneficiaries
Promote Employment Creation
Enhance Competitiveness in the Marketplace by Adopting
Policies and Practices that Advance Sustainability
Use Full-Cost Accounting and Real-Cost Pricing to
Set Prices & Tariffs
Choose Socially & Environmentally Responsible Suppliers
and Contractors
Invest Some of the Proceeds from the Use of Non-Renewable
Resources In Social and Human-Made Capital to Maintain
the Capacity to Meet the Needs of Future Generations
 Ancient Jewish
Conception:
Profit as Residue
that which remains after the
meeting of all obligations.
 Improve the Quality of Human Life,
Including Poverty Alleviation
Make Provision for Social Self-Determination and
Cultural Diversity in Development Planning
Protect and Promote Human Health Through a
Healthy & Safe Working Environment
Implement Skills Training and Capacity Enhancement of
Disadvantaged People
Seek Fair or Equitable Distribution of the
Social Costs of Development
Seek Equitable Distribution of the Social Benefits of
Development
Seek Intergenerational Equity
 Construct Durable, Reliable and Functional Structures
Pursue Quality in Creating the Built Environment
Use Serviceability to Promote Sustainable Construction
Humanize Larger Buildings
Fill in and Revitalize Existing Urban Infrastructure with a Focus
On Rebuilding Mixed-Use Pedestrian Neighborhoods
 Su
sta
in
Generational Equity Plan

ab
ili
ty
@
α
Inter- and Intra

Figure 11. BEST Sustainability Model

 r -
lde Leadership
o n
eh Pla

s
k

Pa People
a r

ce
St ste

rtn
d a

our
e
nc en M

er
a
l iv

Res
a

sh
B Dr Policy & Strategy

ip
Processes

va eti ble
nce
Society

ag e
Ad mp ina
e

nt tiv
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op

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a
Results

Co sta
form
Orientat
Pe

Su
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Custo
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Figure 12: Business Excellence and the EFQM Criteria

Figure 13. BEST Business Excellence
ORIGIN

DESTINATION
HTTP://WWW.WEBPAGES.UIDAHO.EDU/~REDGEMAN/RLE/EDGEMAN-Q&P-2005-CONF.PPT
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 DESIGN FOR
S IX SIGMA
CUSTOMER & COMPETITIVE INTELLIGENCE FOR
SYSTEMS INNOVATION & DESIGN

DEPARTMENT OF STATISTICS
REDGEMAN@UIDAHO.EDU OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT
 What is Quality?
“To Satisfy Customer’s Requirements
Continuously”
What is Quality
Management?
“To Achieve Quality at Low Cost.”
What is Total Quality
Management?
“To Obtain Total Quality by Involving
Everyone’s Daily Commitment.”
What is the Objective of
Total Quality
Management?
The Objective of TQM is to Improve
Continuously Each and Every Activity in
the Company, Focusing on the Customer.

Quality is:
Defined by the
Customer!!!
Five Principles of a New
Culture
● The TQM philosophy derives from one foundational
idea: everything must be geared towards customer
satisfaction, the engine which drives the company
and on which its future survival depends.
● The quality of a product or a service is the value
assigned to it by customers, that is, the amount
they are prepared to pay. That’s all.
● Anything which is not in line with this expectation,
anything unnecessary or redundant should be
discarded.
Five Principles of a New
Culture
● TQM aims to trim this non-value added
“fat” by complete overhaul of the
management system, using continual
improvement as a guideline.
● To this end, people must be empowered
and must become part of cohesive work
systems; they must be given the means
to do what they do best: in addition to
nails, they must also be given a hammer.
Cultural Principles
● The processes, that is the operating
procedures at all levels of the
company, must be thoroughly brought
under control and optimized. The
consistency of the whole is more
important than the optimization of
each individual unit.
● Management must be guided by this
concern for consistency.
Cultural Principles
● This synergy makes it possible to better control the three
elements of Quality, Cost and Delivery (QCD) which are
the three components of a response tailor-made to meet
customer expectations.
● This applies within the company as well, where the
customer-supplier relationship is fundamental in each link
of the chain.
● Anything which is not customer-driven, within or outside
the company, is merely waste.
What is a Process?
● A process is a set of successive operations targeting a
specific result.
● It involves input (data, materials, products in various
stages of completion) from suppliers or previous
processes, which it transforms and transmits either to
a process downstream, or to a customer.
● In other words, a process is a series of tasks
performed with specific resources.
In-House Customers and Outside
Customers
● The expectations of the outside customer, the buyer or
user of the product, may be seen in the context of in-
house customer / supplier relationships, which play a
vital role in improving company performance.
● The in-house supplier is the product, service or advice,
which represents the end-product of one stage in the
process.
● The in-house customer is the office, shop or service
which carries out the next stage.
In-House Customers and Outside
Customers
● Each acts as supplier and customer with
respect to and for the other.
● A HOUSE DIVIDED AGAINST ITSELF CANNOT
STAND PRINCIPLE: This relationship
encourages useful activity.
● GET YOUR OWN HOUSE IN ORDER
PRINCIPLE: The in-house customer /
supplier relationship is one of the keys to
satisfying the outside customer.
1. The Customer is the Ultimate
Judge of Value
● Customers assign a value to the product or service in
accordance with their needs and desires, either expressed or
implicit.
● In exchange for this value, they pay and often go into debt, and
this constitutes the sole source of income for the business.
● We need to move away from a strategy based on marketing
products to one based on delighting customers.
● We need to know how to anticipate their needs, even to the
point of influencing the ways their needs change.
● We have to provide customers with the service and the
reliability they expect at a competitive price with the timing
and conditions which are most convenient for them.
 2. Search for a “Lean”
Approach
● Improving output means serving customers better,
faster, and less expensively by consuming fewer
resources.
● Anything which does not contribute either directly
or indirectly to customer satisfaction must be
eliminated.
● Identify and eliminate everything except that which
is “lean” or “just enough” in all sectors and all levels
of activity with the goal of continual improvement:
● causes of rework,
● poorly calculated investments,
● excessive inventory,
● skills under-utilized or poorly utilized.
● This step will lead to a streamlining or an overhaul
of all processes.
 3. Controlling the Process Means
Reducing Dispersion
● Improving the process through greater control
means first and foremost controlling dispersion in
the quality of products and services offered.
● This means adhering to a permanent standard of
quality within the limits acceptable to the
customer, either within the company or outside it.
● Only then can we attempt to do even better by
enhancing or modifying the process.
● This is a preliminary step towards challenging
existing processes.
4. Involving and Empowering
People
● Employees are a company’s most precious resource
and the only one which can take control of processes
and identify and reduce anything which does not
meet the “lean” or “just enough” standard.
● For that reason, people must be involved and
empowered and their value recognized.
● Initiative and creativity must be developed in order to
encourage problem-solving.
● Human resource development involves acquisition of
experience linked with a training component, which
must focus on the importance of cooperation and
team work as incentives for better quality,
productivity and safety.
 5. The Spiral of Continual
Improvement
● The Goal of TQM is progress - not perfection - there is no
ideal state which, once reached, will allow the company to
rest from its endeavors.
● What matters is the degree of progress achieved and its
rapidity: progress is based on the S-PDSA Cycle (or, better,
modified Deming Cycle)
● Along with innovation, continual improvement focuses on
solving problems and finding reliable solutions.
● This includes daily progress in routine matters as well as
large-scale cross-functional improvements, without
necessarily resorting to additional investment.
 Edgeman’s Modification of
Deming’s
DO S-PDSA Cycle ACT
(implement)

HOLD THE GAIN

STUDY

STANDARDIZE
PLAN

S-Establish
Baseline
 Quality
People
Processes Cu
Sa stom
Reducing Waste ti s
fac er
Progress Through S-PDSA Cost ti o
n

Delivery
 Model
UNIT OPTIMIZATION

Suggestion Systems
Self-Directed Work Teams
7 QC Quality Circles
Tools / Cont. Imp.&
Statistics Standardization V
H E
O Info. Daily Control A
I Organ- R
R Systems L
N izational T
I I
T Cross Break- I
Z Audit Functional Customer Through C G
E Tools N
O
G Management Driven A
N Hoshin Seven M
R Master Manage- L
T QCDP Planning E
A Customer/ Plan Ment & N
A Planning
T Supplier T
L Tools
I
Senior
O Vertical
Executive
N Teams Teams &
Q.A./ Horizontal
QFD Coordination
 Control
● Daily Control is the application of PDSA to
daily incremental continuous improvement:
● Hoshin Planning draws information from the
ongoing data collection and analysis of the Daily
Control process to identify broad system problems
in which breakthrough is needed.
● Once breakthroughs have occurred, they can

become the focus of daily continuous

improvement.
 Cross-Functional
Management
● Cross-functional management concerns the systems by
which functions & departments work together to achieve
common organizational targets such as quality, cost,
delivery & product (QCDP).
● Quality Function Deployment (QFD) or “listening to the voice
of the customer” can identify areas for planning breakthrough
● The Hoshin Planning process often requires cooperation across

functions as well as vertical alignments.

 Hoshin
Planning
Hoshin Planning

The Destination
that we MUST
Reach
Where We Are

● Hoshin --- “That by which we navigate” - The

organizational NORTH STAR.
● Policy Management --- Policy Deployment
● Focused Planning
● Hoshin Kanri
 Hoshin
Planning
Hoshin Planning is a method that
●

captures and concretizes strategic

goals and flashes of insight about the
future and that develops the means to
bring these into reality.
● The intent of Hoshin Planning is to
integrate an entire organization’s daily
activities with its long term goals.
 Hoshin Planning
Definition
● Hoshin Planning is that part of an
organization’s strategic planning
system which identifies, develops,
deploys, audits, and modifies a
specific plan to focus the
organization’s efforts on the
breakthroughs of developments
required to achieve the strategic
vision of the organization.
LEADER SHIP

Hosh

AL
in Pla

T ON
Customer-Driven

EN TI
Master

EM NC
Plan

AG -FU
n n in g Sustainable

AN S
TRO
Competitive

M OS
Advantage

CR
DAILY CON
 UNIT OPTIMIZATION
“Daily Control”
● Within this arena are the so-called “Seven
Traditional Tools of Quality”, even though
there is not perfect agreement on what
those seven tools are. Among these:
● Histograms & Pareto Diagrams;
● Scatter Diagrams; Boxplots;
● Cause & Effect Diagrams;
● Process Flow Diagrams;
● Control Charts and Run Charts;
● Check Sheets; and
● Stem-and-Leaf Plots.
VERTICAL ALIGNMENT
“Hoshin Planning”
● Hoshin Planning
● “Management & Planning
Tools”:
● Affinity Diagrams;
● Brainstorming;
● Nominal Group Technique;
● Matrix Diagrams;
● Radar Charts;
● Force Field Analysis;
● Prioritization Matrices.
 INTEGRATION
“Cross-Functional
Management”
● “Listening to the Voice of the
Customer” or
● QUALITY FUNCTION
DEPLOYMENT (QFD).
Quality Culture at
AT&T
A Case Study
 AT&T Cultural Change
Mechanisms
Focus
Focus From Traditional To Quality
From Traditional To Quality
Plan Short-range budgets Future Strategic Issues

Organize Hierarchy Participation/Emancipation

Communication Top Down Top Down & Bottom Up

Decisions Ad hoc/Crisis Management Planned Change

Functional Parochial, Competitive Cross-Functions, Management

Integrative

Quality Fixing / One-Shot Preventive / Continuous

Management all Functions & Processes
 AT&T Quality Policy
 Quality excellence is the foundation for
the management of our business and the
keystone of our goal of customer
satisfaction. It is, therefore, our policy to:
 Consistently provide products and services
that meet the quality expectations of our
customers.
 Actively pursue ever-improving quality
through programs that enable each
employee to do his or here job right the first
time.
AT&T Quality Principles
 The customer comes first.
 Quality happens through people.
 All work is part of a process.
 Suppliers are an integral part of our
business.
 Prevention is achieved through
planning.
 Quality improvement never ends.
Total Quality Management:
“Turning Principles into Practice”
AT&T’s Fundamental Total Quality
Approach
Process
Supplier Management Customer
Partnership and Improvement Focus

Supplier Process Customer

People
Leadership & Involvement
AT&T Network Services
Division (NSD)
Quality Management
System
NSD VISION: We provide our customers
the best network services in the world.

NSD MISSION: The mission of NSD is to

support the individual Business Units in the
achievement of their goals by providing
premises-to-premises network services, both
now and for the future:

*That are positively differentiated from our

competitors in customer-perceived quality,

reliability, innovation, timeliness, and
performance

*At a cost that is lower than our competitors

*By a professional, motivated, customer-

focused winning team.
 Process
Supplier Management Customer
Partnership and Improvement Focus

Supplier Process Customer

People
Leadership & Involvement NSD
People

s
sse
Le
ad

ce
er

Pro
sh
ip
QMS
 Identification Statement &
Strategic Business Unit


Customers.
Consumers and businesses are AT&T’s external customers. They
ultimately consume and pay for the products & services we deliver.

 The SBU’s are NSD’s internal customers. They supply us with the
requirements for products and services, fund NSD for those services,
and represent the voice of the external customer.

 We aspire to evolve customer/supplier relationships within NSD, with
its suppliers, and with the SBUs to a set of true partnerships, based
upon the AT&T Common Bond.

 Data Communication Services 800 and Business Application Services

 Business Long Distance BCServices-Federal Systems

 Consumer Long Distance Away from Home & Office

 Directory Services Accessible Communications Services.
 QMS
Information
Information, represented by arrows in
the model:
Integrates the elements of QMS;
Permits fact-based decision making;
And must be:
Readily available;
Easily accessible;
Consistently presented;
Relevant & meaningful.
QMS Leadership
 Create the vision;
 Achieve the mission;
 Live our common bond;
 Establish quality policy;
 Lead the planning process;
 Set key goals / initiatives;
 Champion deployment;
 Measure progress;
 Celebrate successes.
 NSD - Our Common Bond -
People:
We commit to these values to guide our
decisions & behavior
●Respect for individuals
Respect for individuals
● Dedication to helping customers

● Highest standards of integrity

● Innovation

● Teamwork

● Utilize our human performance system as a key enabling

mechanism for our quality management system (QMS).
● Recognize & support behavior that is consistent with our QMS.
● Foster an environment where people are skilled and supported to
be successful.

By living these values, AT&T aspires to set a standard of

excellence worldwide that will reward our shareholders,
our customers and all AT&T people.
 QMS Processes
●
●
Manage by process;
●
●
Define goals;
●
●
Instill a spirit of continuous improvement;
●
●
Use Process Quality Management Improvement
(PQMI) as the foundation;
●
●
Achieve excellence in customer relationship
management;
●
●
Develop effective supplier management.
 Process Management Roles &
Responsibilities
●
●
Process Champion: ensures process efforts are linked with overall business
strategies and goals and advocates process breakthrough initiatives for at least
one QMS process.
●
●
Process Owner: provides process vision, commits to customers’ primary
requirements and is ultimately accountable for results of at least one QMS
process.
●
●
Process Leader: manages process on a daily basis, establishes process-specific
goals, charts PMT activity, manages funding process and interfaces with
customers and suppliers.
●
●
PMT Leader: leads effort to develop and implement initiatives to improve
process capability and achieve process results.
●
● PMT Member: analyzes and recommends improvements to the process.
●
● Support Manager: manages the execution of current process and implements
process improvement to achieve process results.
●
● Process Associate: executes current process and implements process
improvements to achieve process results.
 Process
Champions, Owners and
Leaders
Strategic &
Operational
NSD Planning
People
s

QMS & Organization

se
Le
ad

Model Development
es
er

and Implementation
Pro
sh
ip

QMS
Assessment Audit &
Benchmarking Studies
Assessing & Improving NSD’s QMS with the
PDSA Cycle
Plan for Addressing Improvement Opportunities

Plan
NSD
Act on Results People
of Assessment Implement
Identify
Act Do Improvement Plans

s
Le

sse
ad

Improvement

ce
er

Opportunities
Pro
his
p

QMS
Study
ASSESSMENT:AT&T CQA
ISO 9001 AOS
 SIX SIGMA
ORIGINS & DESTINATIONS,

SUSTAINABILITY & QUALITY CULTURE

End of Session

DEPARTMENT OF STATISTICS
REDGEMAN@UIDAHO.EDU OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT