Six Sigma Black Belt Training Overview

1. Six Sigma Black Belt Training Overview

2. What is Six Sigma? • Technically it has been defined at 3.4 defects per million opportunities (DPMO) • Six Sigma has been called: • Vision • Strategy • Process • Metric • Six Sigma is a structured problem solving process aimed at improving quality of a product, or process

3. What is Six Sigma? • The Six Sigma Process • Project based • Defined by 5 phases • Define (D) – What are we doing? What is the goal? • Measure (M) – What are the key characteristics? • Analyze (A) – How do they impact the system? • Improve (I) - Where should they be set? • Control (C) – How do I maintain the gains? • DMAIC

4. What is Six Sigma? • The Six Sigma Process What are trying to do? Define Measure What are the key characteristics? Project Analyze Improve How should they bet set and controlled? Control

5. What is Six Sigma? • Six Sigma is data driven and fact based • Heavy use of statistics to ensure we are a highly confident in our decisions • While this may seam “the long way” it is, in fact, the quickest path to rapid, significant, sustained improvement • Avoid “shoot from the hip” / “ready – fire –fire – fire approaches” • They rely on luck • Even if we solve the problem, we are not sure why, and often “retake the same ground” year after year

6. What is Six Sigma? • Six Sigma = Quality • Drive out defects • Products • Processes • Reduce Variation • Predictable results • If you are “thinking” about “lean” • High quality is a pre-requisite to becoming lean • Without high and a predictable process you will never be “lean” • Always find “just in case inventory”

7. What is Six Sigma? • Let’s talk about Six Sigma as 3.4 DPMO (Defects per Million Opportunities) • 3.4 DPMO = 99.99966% Quality 99.99966% 0.00034% 6 Sigma

8. What is Six Sigma? • Pick up any popular Six Sigma text and read about Six Sigma and you’ll get all sorts of examples like 3 Sigma is …. Luggage bags … 6 Sigma …. • Most of those are (and to quote Guy Kawasaki) “Bull Shiitake” • The airplane accident example. Wrong metric. If you ever read Freakanomicsyou’ll read that if you were to measure passenger miles vs. car miles that the accident rates are closer than you think. • The point is “I have never seen a 6 sigma process” and it really doesn’t matter… the point is to get better everyday. • The 6 sigma metric (Defects per Million Operations) is nice but it’s not the only metric you should be using

9. What is Six Sigma? • A word about Six Sigma and 3.4 DPMO • If you use Excel and enter this formula to get the sigma level (z score) for a given quality level • You will get this result • Hey that’s not 6 sigma?

10. What is Six Sigma? • What gives? Why does Excel tell me 3.4 DPMO = 4.5 Sigma? • Read the footnote of Dr. Harry’s book • 6 Sigma mean a Long Term Sigma = 3.4 DPMO • Over the Long Term processes will drift • On average the drift is 1 ½ sigma • Hence 6- 1 ½ = 4 ½ • That mean’s your short term sigma must be 0.0009 DPMO so when it drifts 1.5 std deviations you will be now worse than 3.4 dpmo • CONFUSING ISN’T IT? * For more information read Six Sigma ProducibilityAnalysis and Product Characterization by Mikel Harry and J Ronald Lawson, Motorola University Press, 1992.

11. What is Six Sigma? • We’ll discuss this more but… • Long Term data includes every source of potential variation exhibited to it’s full potential • Short Term data generally excludes all outside potential sources of variation • Represents the current entitlement or best the process can ever be at this moment in time • Most of the time we are dealing with Short Term variation • So if your process happens to be at 3.4 DPMO using Short Term data that’s a 4.5 Sigma process • Why? Because once we throw in all the sources of variation we expect it to drive 1.5 Sigma so over time your 3.4 DPMO becomes 1350 DPMO

12. What is Six Sigma? • Still really confusing, isn’t it. • For the remainder of this training we’ll be ignoring all of this and only dealing with s as calculated without any 1.5 s shifts • Why? • The value is in knowing where you are vs. where you need to be and driving a step change improvement is what we’re aiming at. • We seem to get hung up on the number. How many times have you seen metrics gamed just so we can report a “90” higher up the chain. If you find yourself doing this – get out of the game. You’re missing the point

13. What is Six Sigma? • Six Sigma is based on execution and results • Black Belt expectation • 4 to 6 completed projects per year • It’s not uncommon for a full time Black Belt to have four projects on-going simultaneously (one in each phase) • While simultaneously identifying new opportunities (Defining potential new projects) • Expecting a 67% improvement per project* • If you address the same issue every 2-3 years that’s a 10x improvement • Expect results to be sustained without Black Belt’s involvement * You may have heard or read that the average savings is $250,000 per project. I avoid that. Not because money isn’t important but it tends to focus all the efforts in a few areas. Part of management’s role is to select the proper projects that provide the greatest impact to the overall organization

14. What is Six Sigma? • A Word about training and Black Belts • Training is supposed to be tough • If it’s been awhile since you studied statistics get ready for a crash course at the college engineering level • The smallest part of the training is about the math though. It’s about learning to execute and effectively lead teams to get something done. • It’s about leadership both up and down the organization

15. What is Six Sigma? • The training • Coincident with training you will be doing a project • One week of training…three to four weeks of project • You will be required to “out brief” the class on your progress • Progress is expected • You will be tested

16. What is Six Sigma • How the training breaks down • Week #1 • Define and Measure • Week #2 • Analyze • Week #3 • Improve • Week #4 • Control

17. What is Six Sigma? • Week #1 – Define and Measure • Problem Statement • Primary/Secondary Metrics and Metric Tracking • SIPOC and Process Map • Introduction to Minitab and Quality Companion • The Normal Curve and Data Transformation • Measurement System Analysis • Capability Analysis • RTY, DPMO

18. What is Six Sigma? • Week #2 - Analyze • FMEA • Cause and Effect Matrix • Hypothesis Testing • Graphical Analysis • Parametric Tests • Non Parametric Tests • Regression Analysis

19. What is Six Sigma? • Week #3 - Improve • Design of Experiments • Full Factorial • 2k • 2k-n • EVOP • Response Surface Methodology • Mixture Design

20. What is Six Sigma? • Week #4 - Control • Control Plan • Control Methods • Management Standard Work • Audit • Statistical Process Control

21. What is Six Sigma? • This is a class on Six Sigma • What about Lean? • Very important • Very few, if any, successfully combine Lean and Six Sigma training • Traditional Six Simga-ists usually “pepper” in Lean randomly to the training and the message is lost • Traditional Lean disciples usually flip flop that and blend the Six Sigma into lean and the message is lost • Why? • Lean is the natural product extension of Six Sigma and visa versa • But … while both “skills” are necessary in today’s world they focus on two outcomes • Yes, high quality is pre-requisite of lean • But, lean is not a pre-requisite of high quality • I think a better way is to learn them separately.

22. What is Six Sigma? • Final words before we begin… • Six Sigma, Lean Six Sigma will not save the world • They are but part of the repertoire of the continuous improvement expert, along with • Industrial Engineering • Operations Management • Operations Research • Product Design and Development • Etc… • You can be a “Lean Six Sigma” and still fail • No disrespect intended … but look what happened to Allied, Motorola, Toyota • But at the same time other quiet “Lean Six Sigma” companies excelled • Honda and Nissan (made money when Toyota didn’t) • Michelin Tire (never heard any Bridgestone stories about them did you?) • Danaher • At the same time nobody will ever accuse Apple of “six sigma” but they are pretty successful (6397% stock rise over it’s life isn’t bad) • That doesn’t mean “Lean Six Sigma” is a failure but that it is just part of tool box - you still have to manage the whole business

23. What is Six Sigma? • So if Six Sigma isn’t going to save the world, cure hunger and drive my stock through the roof why do it? • First, Six Sigma didn’t invent any of the “tools” I showed in the training overview • But they are part of the bread and butter of a continuous improvement professional – so why not learn them and how to apply them • Successful organizations and people know the “project” is the cornerstone of getting things done – Six Sigma is project based! • Some people treat “Six Sigma” as a religion that must be strictly followed. Take the tools and process and apply them to your organization. Even Six Sigma must continuously improve. Think of this as master’s level continuous improvement • Primary and Secondary Education: Rote, Repeat and Regurgitate • Undergraduate Degree: Learn, Understand and Apply • Master’s Level: Expand an existing body of knowledge • Doctoral Level: Contribute new knowldedge