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Six Sigma

Matthew Stangel. Six Sigma. What is Six Sigma?. Engineering process Not specific to software Designed to keep defects at a minimum Named for the goal of minimum six standard deviations between mean and nearest specification limit Equates to 3.4 defects per million opportunities. Key Terms.

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Six Sigma

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  1. Matthew Stangel Six Sigma

  2. What is Six Sigma? • Engineering process • Not specific to software • Designed to keep defects at a minimum • Named for the goal of minimum six standard deviations between mean and nearest specification limit • Equates to 3.4 defects per million opportunities

  3. Key Terms • Defect – any kind of undesired result, including failure to meet customer requirements • Opportunity – anywhere a defect could be produced • Standard Deviation – a measurement of spread for data • Square root of the variance for a set of data

  4. What is Six Sigma? – Why 6?

  5. Other Sigmas

  6. History • Created in the late 1980’s by Motorola • Proposed by Bill Smith in 1986 • Adopted by Motorola CEO in 1987 • Soon adapted by other companies • Introduced to General Electric in 1995 • Introduced to Honeywell in 1998 • Introduced to Ford in 2000

  7. How Six Sigma is Used • Not a process • Used to improve other processes • Two types • DMAIC – Used to improve existing processes • DMADV – Used to improve a process being created

  8. DMAIC • “Solving a problem with an unknown solution” • Define • Measure • Analyze • Improve • Control

  9. DMAIC - Define • Identify the project based on objectives • Determine the aspects that are “critical to quality” • Define the scope of the project • Define what is considered a defect

  10. DMAIC - Measure • Determine how to measure the problem • Create metrics to measure defects • Input, output, and process are identified • Determine how the inputs affect critical processes • Determine what would happen if things go wrong

  11. DMAIC - Measure

  12. DMAIC - Analyze • Determine the causes of the problem in the process that needs improvement • Determine how to fix the problem in order to achieve the desired results • Done by determining what places are most likely to cause problems

  13. DMAIC - Improve • Find ways to improve the process • Determine what happens if the improvements are not made or take too long

  14. DMAIC - Control • Implement results of the last four phases • Monitor the changes made • Ensure that the changes made had the desired impact

  15. DMAIC Example • http://www.6sigma.us/SixSigmaProject.html

  16. DMADV • Also called DFSS (Design For Six Sigma) • Used when creating a new process • Define • Measure • Analyze • Design • Verify

  17. DMADV – Define, Measure, and Analyze • Define - Same as DMAIC • Only step identical in both processes • Measure - similar to DMAIC Measure • Instead of measuring the current process, measure customer specifications • Analyze – similar to DMAIC Analyze • Analyze options rather than defects

  18. DMADV – Design and Verify • Design – Design the process to meet customer needs • Verify – Verify that the process meets customer needs

  19. Learning Six Sigma • “Belt” system of proficiency • Yellow Belt – uses Six Sigma, but is not trained • Green Belt – proficient with Six Sigma, has some training • Black Belt – highly proficient with Six Sigma, has received extensive training • Master Black Belt – devoted to Six Sigma work, trains other black belts

  20. Learning Six Sigma - Costs • Green belt – approximately $3500 to certify • Black Belt – an additional approximately $4000 to certify • Master Black Belt – an additional approximately $5000 to certify

  21. Benefits of Six Sigma • “It has been estimated that less than Six Sigma quality, i.e., the three-to-four Sigma levels that are average for most U.S. companies, can cost a company as much as 10-15% of its revenues.” • -1996 GE annual report • Estimated $11.2-16.7 billion worth of savings for GE in 2001

  22. Criticisms • Unoriginal • New jargon for basic quality process • Arbitrary standards • 3.4 defects per million opportunities • Always applicable? • 1.5 sigma shift • After shift, still six sigma?

  23. Criticisms

  24. Criticisms • “Belt” system • Large investment - approximately $7500 per black belt, $3500 per green belt • Belt training industry • Process hyped up by people who want money to train belts

  25. Criticisms • Narrow application • Can improve processes, but is not good at making new ones • Can’t guarantee improvement • Ford showed no noticeable improvement

  26. References • Adams, Cary W.; Gupta, Praveen (2003). “Six Sigma Deployment”. Burlington, MA: Butterworth-Heinemann •  Ideal Meadia LLC. i Six Sigma. Retrieved 1/17/2010. <http://www.isixsigma.com/>

  27. References • Peterka, Peter. 2007. “The DMAIC Method in Six Sigma”. Retrieved 1/17/2010. <http://www.buzzle.com/editorials/10-24-2005-79640.asp> • Huesing, Tina. “Six Sigma Through The Years”. Motorola, 2008. Retrieved 1/17/2010. <http://6sigmaexperts.com/presentations/Six_Sigma_Through_the_Years.pdf>

  28. References • Peterka, Peter; Weed, Dr. Harrison; Wexler, Joseph; Jackson, Jeffery. Six Sigma us. Retrieved 1/17/2010. <http://www.6sigma.us/six-sigma.php>

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