Quality Control with Six Sigma

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Quality Control with Six Sigma

• Dan Picciano
• Outsourcing Solutions Inc.
• Patrick OHara
• Outsourcing Solutions Inc.

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Quality Control with Six Sigma

• Dan Picciano
• Outsourcing Solutions Inc.
• Patrick OHara
• Outsourcing Solutions Inc.

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Six Sigma

• What is Six Sigma?
• Why Six Sigma?
• Six Sigma Overview
• Six Sigma Tools

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What is Six Sigma?

• Six Sigma Defined
• Sigma is a statistical concept that measure the
  variation in a process baselined to defined
  customer requirements.
• Six Sigma represents a process that has so little
  variation that the resulting output is 99.9997
  defect free.

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What is Six Sigma?

• Six Sigma Defined
• In addition to its statistical meaning, Six
  Sigma is a business philosophy that focuses on
• Continuous improvement based on customers needs
• Analyzing business processes
• Instituting appropriate measurement methods

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What is Six Sigma?

• Six Sigma is a systematic, scientific,
  fact-based, data driven, problem-solving PROCESS.

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What is Six Sigma?

• Six Sigma is a Process Capability of 3.4 Defects
  per Million

Six Sigma is the name of the process, not the
target
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Why Implement Six Sigma?

• An African Parable
• Every morning in Africa, a gazelle wakes up. It
  knows it must run faster than the fastest lion or
  it will die.
• Every morning in Africa, a lion wakes up. It
  knows it must run faster than the slowest gazelle
  or it will starve to death.
• It doesn't matter whether you are a lion or a
  gazelle when the sun comes up, you'd better be
  running.

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Why Implement Six Sigma?
Competition for the customer is at an all time
high. Every action we take matters.
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Why does Six Sigma matter?

• If 99 was good enough
• In our homes we would have one hour of unsafe
  drinking water every month.
• At Phoenix Sky Harbor airport there would be one
  unsafe landing each day.
• The post office would lose 16,000 pieces of mail
  every hour.

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Why does Six Sigma matter?

• If 99 was good enough
• In our nations hospitals there would be 500
  incorrect surgical procedures each week.
• Our banking system would deduct 22,000 checks
  from the wrong accounts each hour.

99 is rarely good enough for any business.
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Six Sigma Overview
The three dimensions of Six Sigma
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Six Sigma Overview
Six sigma road map
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Six Sigma Overview

• Voice of the customer
• Whos your Customer?
• What are their requirements?
• How do we validate these requirements?
• How do these impact your process?

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Six Sigma Overview
Research Methods

• Listening posts
• Be a customer
• Customer observation
• Interviews
• Focus groups
• Surveys
• Competitive comparison

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Six Sigma Tools
Tools ranging from the relatively common to the
advanced and complex are routinely used in Six
Sigma environments.

• Brainstorming
• Check Sheet
• Histogram
• SIPOC

• Affinity diagrams
• Detailed process flows
• Control charts
• Pareto analysis
• Cause and Affect diagram

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Six Sigma

• Dan Picciano
• Outsourcing Solutions Inc.
• Patrick OHara
• Outsourcing Solutions Inc.

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Business Process Management
Enterprise-wide approach to ensure the consistent
delivery of results for our clients based on
their voice
BUSINESS PROCESS MANAGEMENT
Voice of Customer (VOC) w/ Six Sigma
Management Operating System (MOS)
BUSINESS PROCESS MANAGEMENT
BUSINESS PROCESS MANAGEMENT
Dashboard Process
Next Step Forward Projects
BUSINESS PROCESS MANAGEMENT
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Approach to VOC

• OSI is building our business around individual
  customer Critical-to-Quality (CTQ) measures.
• CTQ measures simply translate the Voice of
  Customer (VOC) into defined metrics.
• Tools such as Be a customer and Competitive
  Comparison are used to ensure the alignment
• The outcome is a relentless focus on continuous
  process improvement resulting in real innovation
  suitable for a long term partnership.

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Approach to Value Proposition
Alignment of operations process ownership with
strategic business objectives of OSI and our
clients
Education Client

• Revenue

• Collections

• Expense

• Rehabs/Consolidations

• Partnership Index

• Fees

• Compliance

• Care and Service

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Approach to Processes
Client and industry knowledge and ownership with
a corporate process leadership format leverages
and focuses line and staff management
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Approach to Quality

• Developing a Culture of Quality
• Four levers of quality management
• Use learnings from existing clients
• Cross-functional continuous improvement teams
• Condensed DMAIC problem-solving model

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Approach to MOS
MOS provides management and associates a
consistent, measurable and sustainable business
model

• A structured forum for communication and metrics
• One standard approach to daily responsibilities
• Development to sustain proper behavior and skills
• Foundational to long-term profitability and
  retention
• Measurable link to OSI corporate values.

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Approach to MOS
Training and certification modules for leaders
and associates drive performance and results
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Approach to Measurement

• A Dashboard and drill-down process focuses on
  data and underlying drivers of performance
• Monthly business reviews
• Detail at multiple levels of process ownership
• Input Process Output model
• Trended Red-Yellow-Green conditions
• Drill down, root cause ID and action plans

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Dashboard Example
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Drill Down Example
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Approach to Process Improvement

• Provides direction to take the next step forward
  and achieve the desired outcome using Six Sigma
  tools
• Focused on eliminating Red measures or downward
  trends
• Orients the organization towards taking the next
  step forward
• The essence is captured in a Project Charter and
  work plan
• The plan leverages Six Sigma tools to accomplish
  the goal

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Project Charter Document
Provides direction, desired outcome and status
PROJECT CHARTER AND STATUS DOCUMENT
Team Member (Roles / Utilized / Name)
Process Owner Joe Owner (30) Members Judy
Operator (10) Sam Sales (5) Irene
Technology (5)

• Business Case
• Why are we doing this and what is the benefit

• Problem Statement
• Problem or opportunity statement

Stakeholders Who owns and has stakes in the
process?

• Goal Statement/Deliverables
• What are the goals and deliverables and when?

Processes Impacted What defined process is
impacted?
Project Status Project Start Date MM/DD/YY
Est. Completion Date MM/DD/YY High
Level Project Plan / Timeline and Milestones Step
A MM/DD/YY Step B MM/DD/YY Step C MM/DD/YY

• Scope/ Boundaries
• What is the scope and where will we go to get
  this accomplished

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Quality Control with Six Sigma
A continuous improvement effort
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Thank you!Please be sure to complete your 2005
DMC evaluation forms!

• Dan Picciano
• Outsourcing Solutions Inc.
• Patrick OHara
• Outsourcing Solutions Inc.