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SIX SIGMA QUALITY PROGRAMS. What is it?. “Six Sigma” : What is it?.

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SIX SIGMA

QUALITY PROGRAMS

slide3

“Six Sigma”: What is it?

“A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and reinventing business processes.”

-- The Six Sigma Way, by Pande, Newman and Cavanaugh

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Six Sigma: What is it?

  • Specifically –
  • Customer-focused, fact and data-based decision making driving out waste and defects which creates value for our customers.

It is just NOT Supply Chain or Manufacturing

six sigma what is it
Six Sigma: What is it?
  • A culture that rapidly drives our key activities* to be defect free 999,997 times out of 1,000,000.
  • < 3.4 defects per million opportunities.

* Valued by or critical to our customer.

slide6

What is Sigma?

s

Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data.

slide7

Lower Specification Limit

(LSL)

Upper Specification Limit

(USL)

Number of Samples

Cure Time of Silicone Sealant

slide8

x

x

Lower Specification Limit

(LSL)

Upper Specification Limit

(USL)

Lower Specification Limit

(LSL)

Upper Specification Limit

(USL)

slide9

Lower Specification Limit

(LSL)

Upper Specification Limit

(USL)

x

putting six sigma in perspective
Putting Six Sigma in Perspective!
  • If you played 100 rounds of golf per year, and played at:
    • 2 sigma - you\'d miss 6 putts per round
    • 3 sigma - you\'d miss 1 putt per round
    • 4 sigma - you\'d miss 1 putt every 9 rounds
    • 5 sigma - you\'d miss 1 putt every 2.33 years
    • 6 sigma - you\'d miss 1 putt every 163 years!
putting six sigma in perspective1
Putting Six Sigma in Perspective!

Four Sigma quality (6210 DPMO) means…

99.370% right…but…..

  • 20,000 lost articles of mail every hour.
  • Power outages seven hours each month. .
  • 5,000 incorrect surgical procedures each week for a major healthcare provider.
  • Unsafe drinking water nine minutes every day.
  • Two long / short airport landings every day.
putting six sigma in perspective2
Putting Six Sigma in Perspective!

Six Sigma quality (< 3.4 DPMO).

  • Airline passenger safety ~ 8.2 s
    • Currently at 2.6 DPMO (incidents per million takeoffs and landings).
  • Airline baggage handling ~ 3 s.
it all began at motorola not g e
It all began at…..Motorola…not G.E.
  • 1987 Motorola introduced Quality Program now known as Six Sigma.
  • Allied Signal picked it up.
  • G.E. Success….
    • Capital Services
    • Medical Systems (CAT Scan)
  • Dozens of others…...
    • Learned the highest quality producer is also the lowest cost producer.
    • Learned customer loyalty of a Six Sigma company is ~3X that of the average company.
who else is doing six sigma
Avery Dennison

Dow

DuPont

Foxboro

Sony

Deere & Co. (John Deere)

Delphi

Allied Signal

Ford

Johnson & Johnson

Caterpillar

Lockheed Martin

IBM

CitiGroup (Visa/MasterCard)

G.E.

J.P. Morgan

ServiceMaster

Who else is doing Six Sigma?
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How does Six Sigma work?

Why is it different?

  • Top down, executive led.
  • Customer focused (VOC).
  • Project oriented
    • Led by “Black Belts”.
    • 3-5 months long.
    • Ave. yearly impact $150-250K/project.
    • Consistent methodology.

X1

X2

X3

Process

Controls

X4, X5, X6…

Output Y

Critical to

Customer

Six Sigma

what is the methodology
What is the “Methodology”?

Define

Measure

Analyze

Improve

Control

DMAIC

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What are the “The Tools”?

  • Six Sigma is a disciplineusing these tools:
    • 7 Tools of Quality
    • Advanced analysis tools (Design of Experiment, Linear Regression, etc.)
    • Re-engineering
    • Lean manufacturing
    • Supply chain improvements
    • Design for Six Sigma (DFSS)
      • For development of new products, new services, new processes, and new workflows.

creating value for our customers

who are the other key players
Who are the other “Key Players”?
  • Senior Champion – Owns Six Sigma for the Business.
  • Champion – Identifies and resources projects.
  • Master Black Belt – Serves as coach to the Black Belt and project team.
  • Black Belt – Leads the project team, full time.
  • Green Belts – Team members (part-time) from the organization sponsoring the project
  • Project Sponsors – Team leaders.
  • Process Owners – Owns the process / workflow.
  • Executive Six Sigma Steering Committee – Oversees progress, resolves issues, ensures success enterprise-wide.

creating value for our customers

summary take aways
Summary “take aways”
  • Customer focused….Driven by the Voice of the Customer.
  • Strong top management leadership, commitment, and involvement. Very Key!
  • Project orientation with measurable financial results.
  • Consistent methodology for all work. Time driven.
  • Time driven….more accountable.
  • Six Sigma - is a discipline not an “add on” or “program”.

- NOT a supply chain/manufacturing activity.

- No new tools….new ways to apply them!

  • Goals
    • Value for the Customer (i.e. no defects or waste & low cost)
    • Improved productivity = profitability.
    • Customer success and satisfaction + Profitability = Growth

creating value for our customers

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References……

  • The Six Sigma Way (ISBN 0-07-135806-4) by Pande, Neuman, and Cavanaugh
  • The Power of Six Sigma (ISBN 0-7931-4434-5) by Subir Chowdhury
  • Six Sigma (ISBN 0-385-49437-8) by Harry and Schroeder.
  • The Six Sigma Handbook (ISBN 0-07-137233-4) by Pyzdek is more technical and becoming the \'handbook\' for Black Belts.
  • You can get them through Amazon, http://www.amazon.com/ in a couple of days.
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References……

  • Also...you might consider:
  • www.6-sigma.com
  • www.sixsigma.co.uk
  • www.sixsigmasystems.com
  • www.isixsigma.com
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