Six Sigma 1 Introduction to Six Sigma 2

σ Six Sigma 1

σ Introduction to Six Sigma 2

Ground Rules • Lets make it interactive, funny and informative • If you have a question at any time, ask! • Thanks for keeping your mobile silent 3

Expectations • You will have a better understanding of Six Sigma • What are your expectations for this session? 4

Index • Understanding Six Sigma • Six Sigma Methodologies & Tools • Roles & Responsibilities • Six Essential Improvement Themes 5

Six Sigma is. . . • The application of the scientific method to the design and operation of management systems and business processes which enable employees to deliver the greatest value to customers and owners. • A philosophy, or understanding, that defects cost money defect free lower cost higher profits & loyal customers • A means to promote greater awareness of customer needs, performance measurement, and business improvement. 6

Six Sigma is. . . • A performance metric. Meaning that the product or service is performing at a level where the chances of a defect are less than 3. 4 in a million opportunities. • A series of tools and methods used to improve or design products, processes, and/or services. 7

Managing Up the Sigma Scale Sigma % Good % Bad 30. 9% 69. 1% 1 69. 1% 30. 9% 2 93. 3% 6. 7% 3 99. 38% 0. 62% 4 99. 977% 0. 023% 5 99. 9997 0. 00034 6 % DPMO 691, 462 308, 538 66, 807 6, 210 233 3. 4 % 8

Examples of the Sigma Scale In a world at 3 sigma. . . In a world at 6 sigma. . . • There are 964 U. S. flight cancellations per day. • 1 U. S. flight is cancelled every 3 weeks. • The police make 7 false arrests every 4 minutes. • There are fewer than 4 false arrests per month. • In MA, 5, 390 newborns are dropped each year. • 1 newborn is dropped every 4 years in MA. • In one hour, 47, 283 international long distance calls are accidentally disconnected. • It would take more than 2 years to see the same number of dropped international calls. 9

Is Six Sigma? A replacement for existing quality programs A way to focus on satisfying customer needs Just for manufacturing Applicable to any business process For executives only Relevant to any employee or customer A stand-alone initiative A continuous improvement mind-set and a decided-way of doing business A magic touch No Pain No Gain 10

What’s in a name? • Sigma is the Greek letter representing the standard deviation of a population of data. • Sigma is a measure of variation (the data spread) σ μ 11

What does variation mean? • Variation means that a process does not produce the same result (the “Y”) every time. • Some variation will exist in all processes. • Variation directly affects customer experiences. Customers do not feel averages! 12

Measuring Process Performance The pizza delivery example. . . • Customers want their pizza delivered fast! • Guarantee = “ 30 minutes or less” • What if we measured performance and found an average delivery time of 23. 5 minutes? – On-time performance is great, right? – Our customers must be happy with us, right? 13

How often are we delivering on time? 30 min. or less Answer: Look at the variation! s x 30 40 50 • Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening. 0 10 20 14

Reduce Variation to Improve Performance How many standard deviations can you “fit” within customer expectations? 30 min. or less s x 30 40 50 • Sigma level measures how often we meet (or fail to meet) the requirement(s) of our customer(s). 0 10 20 15

The Six Sigma Evolutionary Timeline 1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve. 1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique. 1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis. 1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”. 1970 s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality. 1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola 1995: Jack Welch launches Six Sigma at GE. 1994: Larry Bossidy launches Six Sigma at Allied Signal. 16

Six Sigma Companies 17

Index • Understanding Six Sigma • Six Sigma Methodologies & Tools • Roles & Responsibilities • Six Essential Improvement Themes 18

19

Index • Understanding Six Sigma • Six Sigma Methodologies & Tools • Roles & Responsibilities • Six Essential Improvement Themes 20

Leadership – CEO and other top management – Set up vision for Six Sigma – Choose Champions 21

Champion – Usually senior manager – Driving force behind organization’s 6σ implementation – Mentor to other Black Belts – At some companies, may be known as “Quality Leader” 22

Master Black Belt – Identified by Champions – Act as an in-house expert coach for Six Sigma – Supports many improvement teams, not limited to a certain number of projects – Recruits and trains other Black Belts and Green Belts – Deploy Six Sigma across various functions and departments 23

Black Belt – Focuses on 1 -3 projects – Full time – Has specific projects – Focus on project execution – Direction comes from Master Black Belt 24

Green Belt – Focuses on 1 -2 projects, part time • Have other job responsibilities – Direction comes from Black Belt – Skilled at project management – Responsible for project progress – Lead planning teams 25

Other Roles Sponsors: - Owners of processes and systems who initiate and coordinate Six Sigma improvements activities in their area of responsibilities. Financial Controllers: - Ensure validity and reliability of financial figures used by Six Sigma project teams - Assist in development of financial components of initial business case and final cost-benefit analysis 26

Index • Understanding Six Sigma • Six Sigma Methodologies & Tools • Roles & Responsibilities • Six Essential Improvement Themes 27

Six Essential Improvement Themes • Focus on the Customer. • Data Fact Driven Management • Process Improvement. • Proactive Management. • “No Boundaries” Collaboration. • Drive for World Class Performance and Perfection 28

Questions? 29

Thank you 30