SESSION 1: WHAT IS SIX SIGMA

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SESSION 1 WHAT IS SIX SIGMA?

• INTRODUCTION TO
• IMPROVING BUSINESS PERFORMANCE SIX SIGMA, LEVEL
  1
• APRIL 16 - 18, 2007

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SESSION OBJECTIVE

• Define and Introduce
• Six Sigma a methodology for Improving Business
  Performance

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• A billion here, a billion there, and pretty
  soon youre talking real money
• Senator Everett M. Dirksen,
• Minority Leader,
• US Senate
• 1959-69

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• Dont sweat the small stuff
• Mark Mantell, 1988
• BUT SMALL STUFF ADDS UP!!

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THINK YOUR ORGANIZATION

• A Thousand here, a Thousand there and pretty
  soon you are talking millions
• Greg Brue and Rod Howes,
• 2006

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SIX SIGMA BENEFITS

• What Benefits
• Financial
• Benefits for Customers
• Benefits for Employees
• Quality Advantages

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FINANCIAL BENEFITS

• MOTOROLA Saved more than 15 billion in first 10
  years from deploying six sigma
• ALLIED SIGNAL (HONEYWELL)
• Reduced costs by 1.4 billion in 4 years
• Cut new product introduction time by 16
• DUPONT Saved 1.6 billion in 4 years
• CITY OF FORT WAYNE Cut costs by over 3million
• MOUNT CARMEL HEALTH CARE Invested 600,000 in
  training/consulting and has realized over 35.8
  million in savings

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SIX SIGMA RETURN ON INVESTMENT

• Appropriate use of Six Sigma will typically
  provide a return on investment of some 3 to 4
  times the cost of implementation at a minimum
• Greg Brue

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BENEFITS FOR THE CUSTOMER

• How important are your customers?
• There is only valid definition of business
  purpose to create a customer
• Peter Drucker

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CUSTOMER BENEFITS

• Six Sigma requires focus on those factors that
  are vital to Customer Satisfaction and Customer
  Retention
• Improving customer retention 5 can boost profit
  by 25 85
• Greater Customer Satisfaction results in
  increased Customer Equity
• Customer Equity (NPV of a customer) is the basis
  for Shareholder Value

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EMPLOYEE BENEFITS

• Six Sigma
• promotes better employee morale and a higher self
  esteem by involving employees
• instills a culture and attitude by emphasizing
  the importance of viewing what our employees from
  the perspective of a customer remember
  employees are customers too!!!
• promotes professional development
• concentrates on systematic process improvement

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QUALITY ADVANTAGES

• Quality
• helps create a market image that customers seek
• promotes and attracts investors

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SIX SIGMA ADVANTAGES

• A company that, reduces its costs of doing
  business, while meeting expectations of its
  customers more effectively and efficiently, and
  inspires its employees by fostering a culture of
  dedication and pride in customer satisfaction,
  will gain a positive reputation and certainly
  enjoy a strategic advantage over its
  competitors.

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So, What is Six Sigma?

• Simply put, Six Sigma is a management
  philosophy and problem-solving methodology that
  reduces costs and improves customer satisfaction
  by improving quality through greatly reducing
  waste in all processes involved in the creation
  and delivery of your products and service(s)
• Source Greg Brue, Six Sigma For Small Business

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Six Sigma Fundamentals

• Management Philosophy Customer-based approach
  that recognizes that defects greatly reduce
  customer satisfaction
• Problem Solving Methodology Can be applied to
  any process to eliminate the root causes of
  defects and their associated costs.
• Level of Quality Achieving Six Sigma means that
  processes only produce 3.4 defects per million
  opportunities we are nearly working perfectly