Six Sigma

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creating value for our customers
An Introduction LSSU - IAB 30 January 2002
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What is it?
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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
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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.
• lt 3.4 defects per million opportunities.

Valued by or critical to our customer.
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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.
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Lower Specification Limit (LSL)
Upper Specification Limit (USL)
Number of Samples
Cure Time of Silicone Sealant
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Upper Specification Limit (USL)
Lower Specification Limit (LSL)
Lower Specification Limit (LSL)
Upper Specification Limit (USL)
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Upper Specification Limit (USL)
Lower Specification Limit (LSL)
x
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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!
•  

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Putting Six Sigma in Perspective!
Four Sigma quality (6210 DPMO) means 99.370
rightbut..

• 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.

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Putting Six Sigma in Perspective!
Six Sigma quality (lt 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.

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Impact of Six Sigma
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It all began at..Motorolanot 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.

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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

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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
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What is the Methodology?

• Define
• Measure
• Analyze
• Improve
• Control

D M A I C
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• What are the The Tools?

• Six Sigma is a discipline using 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.

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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.

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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

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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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