Definition of Six Sigma

Six Sigma is a lot of things…..

Methodology Business Strategy

Tools and Tactics

Six
Sigma
Philosophy of Process Measurement
Operational Excellence and Management

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 What is Six Sigma…as a Methodology?

Six Sigma as a Methodology provides an organized, specific, repeatable

means of assessing and resolving challenges through a process titled….

D M A I C
De M An Im Co
fin ea a pr n tr
e su ly ov ol
re ze e

This
Thisapproach
approachyields
yieldsaafocus
focuson
oncause
causeand
andeffect
effectwith
with
analytical
analyticalproblem
problemsolving
solvingtools
toolswithin
withinaamanagement
management
structure
structuretotoassure
assureresults.
results.
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 What is Six Sigma…as a Business Strategy?

Six Sigma as a Business Strategy links the outputs of the processes

conducted within a company to the expectations of the customers……

*LSL – Lower Spec Limit

*USL – Upper Spec Limit

-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

By
Byreducing
reducingwaste
wasteandandvariation
variationexpenses
expensesare
arereduced
reduced
and
andcustomer
customersatisfaction
satisfactionincreases
increasesthus
thusimproving
improving
operating
operatingmargins
marginsby byas
asmuch
muchasas50%.
50%.
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 What is Six Sigma…as a Philosophy?

Six Sigma as a Philosophy is based on the theory that reducing

variation in process output to stay within limits defined by the
customer will yield great returns.
Defects are expensive. Competitive Advantage is gained by
meeting customer expectations…Six Sigma has been proven to
accomplish just that objective.

Six Sigma Program &

Process Performance
have a

Positive Correlation

The Six Sigma philosophy is that of Continuous Improvement through the use
of data and specific variation reduction techniques.
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 What is Six Sigma…as Process Measurement?

Six Sigma as a Process Measurement system uses accurate data to

analyze process performance and find Root Causes of defects….

• Defects
• Defects per unit (DPU)
• Parts per million (PPM)
• Defects per million opportunities
(DPMO)
• First Time Yield (FTY)
• Sigma value

A process oriented approach where the metrics for significant inputs

and outputs are measured, monitored and managed.

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 What is Six Sigma…as a Benchmark?

A Sigma value allows us to Benchmark performance against other

processes.
Yield PPMO COPQ Sigma

99.9997% 3.4 <10% 6 World Class Benchmarks

99.976% 233 10-15% 5 10% GAP

99.4% 6,210 15-20% 4 Industry Average

93% 66,807 20-30% 3 10% GAP

65% 308,537 30-40% 2 Non Competitive

50% 500,000 >40% 1

Source: Journal for Quality and Participation, Strategy and Planning Analysis

What does 20 - 40% of Revenue represent to your Organization?

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 What is Six Sigma…as a Tool?

Six Sigma utilizes specific Tools for business problem solving.

Six Sigma tools are used to scope and select projects, modify
and/or design new processes, improve current processes,
decrease downtime and improve customer response time.
Fishbone

Control Chart
FMEA
High Variability
A

SPC
Data Analysis Histogram
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 What is Six Sigma…as a Project?

.
Practical
Problem

Six Sigma

Finding the solution of Y = f(X)

Project

Statistical
Problem

Statistical
Solution

Control
Plan

Practical
Solution

Results
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 Conventional Strategy

Conventional definitions of quality focused on conformance to

standards.
Requirement Requirement
or or
LSL
Target USL

Bad Good Bad

Conventional strategy was to create a product or service that met

certain specifications.
• Assumed that if products and services were of good quality.
then their performance standards were correct.
• Rework was required to ensure final quality.

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 Problem Solving Strategy

The Problem Solving Methodology focuses on:

• Understanding the relationship between independent variables and the
dependant variable.
• Identifying the vital few independent variables that effect the dependant
variable.
• Optimizing the independent variables so as to control our dependant
variable(s).
• Monitoring the optimized independent variable(s).
There are many examples to describe dependant and independent
relationships.
• We describe this concept in terms of the equation:

Y=f (Xi)
This simply states that Y is a function of the X’s. In other
words Y is dictated by the X’s.
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 Y=f(X) Exercise

Exercise: Consider establishing a Y = f(X) equation for

a simple everyday activity such as producing a cup
of espresso. In this case our output, or Y, is
espresso.

Espresso =f( X , 1 X2 , X3 , X4 , Xn )

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 Six Sigma Strategy

We use a variety of Six Sigma tools to

help separate the “vital few” variables (X1)
effecting our Y from the “trivial man (X10) (X4)
y.”
Some processes contain many, many (X7) (X8)
variables. However, our Y is not
effected equally by all of them.
(X3)
By focusing on the vital few we (X5)
instantly gain leverage.
(X9)
Archimedes said: “ Give me a lever big enough and
fulcrum on which to place it and I shall move the world.”

(X6)
(X2)
Archimedes not
shown actual size!

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 Breakthrough Strategy

Bad 6-Sigma
6-Sigma
Breakthrough
Breakthrough UCL

Old Standard
Performance

LCL

UCL
New Standard
LCL
Good

Time Juran’s Quality Handbook by Joseph Juran

By utilizing the DMAIC problem solving methodology to identify and

optimize the vital few variables we will realize sustainable
breakthrough performance

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 VOC, VOB, VOE

The foundation of Six Sigma requires Focus on the voices of the Customer, the Business and the Employee which provides:

VOC is Customer Driven

VOB is Profit Driven
– Awareness of the needs that are Critical to the Quality (CTQ) of our products and services
– Identification of the gaps between “what is” and “what should be”
– Identification of the process defects that contribute to the “gap”
VOE is Process Driven
– Knowledge of which processes are “most broken”
– Enlightenment as to the unacceptable Costs of Poor Quality (COPQ)

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 Six Sigma Roles and Responsibilities

There are many Roles and Responsibilities for successful

implementation of Six Sigma.

• Executive Leadership
MBB • Champion/Process Owner

Black Belts • Master Black Belt

• Black Belt
Green Belts
• Green Belt
Yellow Belts • Yellow Belt

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 Executive Leadership

Not all Six Sigma deployments are driven from the top by Executive
Leadership. The data is clear, however, that those deployments that are
driven by executive management are much more successful than those
that aren’t.

• Makes decision to implement the Six Sigma initiative and

develop accountability method

• Sets meaningful goals and objectives for the corporation

• Sets performance expectations for the corporation

• Ensures continuous improvement in the process

• Eliminates barriers

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 Champion/Process Owner

Champions identify and select the most meaningful projects to

work on, they provide guidance to the Six Sigma belt and open the
doors for the belts to apply the process improvement technologies.

• Own project selection, execution control, implementation and

realization of gains

• Own Project selection

• Obtain needed project resources and eliminates roadblocks

• Participate in all project reviews

• Ask good questions…

• One to three hours per week commitment

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 Master Black Belt

MBB should be well versed with all aspects of Six Sigma, from technical
applications to Project Management. MBBs need to have the ability to
influence change and motivate others.

• Provide advice and counsel to Executive Staff

• Provide training and support

– In class training
– On site mentoring

• Develop sustainability for the business

• Facilitate cultural change

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 Black Belt

Black Belts are application experts and work projects within the
business. They should be well versed with The Six Sigma
Technologies and have the ability to drive results.

• Project team leader

• Facilitates DMAIC teams in applying Six Sigma methods to

solve problems

• Works cross-functionally

• Contributes to the accomplishment of organizational goals

• Provides technical support to improvement efforts

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 Green Belt

Green Belts are practitioners of Six Sigma Methodology and

typically work within their functional areas or support larger Black
Belt Projects.

• Well versed in the definition & measurement of critical processes

– Creating Process Control Systems

• Typically works project in existing functional area

• Involved in identifying improvement opportunities

• Involved in continuous improvement efforts

– Applying basic tools and PDCA

• Team members on DMAIC teams

– Supporting projects with process knowledge & data collection

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 Yellow Belt

Yellow Belts apply the Six Sigma Methodology to their own work
responsibilities and serve on project teams.

• Provide support to Black Belts and Green Belts as needed

• May be team members on DMAIC teams

– Supporting projects with process knowledge and data collection

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