What is Six Sigma?

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What is Six Sigma?
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Six Sigma Quotes

• "... the most powerful breakthrough management
  tool ever devised"
• Mikel Harry and Richard SchroederSix Sigma The
  BREAKTHROUGH Management Strategy Revolutionizing
  the World's Top Corporations
• "Six Sigma is arguably the most important
  business and industry initiative that has
  involved statistical thinking and methods."
• Ronald D. Snee"Impact of Six Sigma on Quality
  Engineering"Quality Engineering Volume 12,
  Number 3, 2000
• "Six Sigma has spread like wildfire across the
  company and its transforming everything we do."
• Jack Welch, CEO, GE Business Week special
  reportJune 8, 1998

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Six Sigma Vs. Lean Manufacturing

• Six sigma and lean manufacturing are methods to
  improve business and manufacturing processes and
  drive profitability of companies.  Both six sigma
  and lean manufacturing, are proven concepts and
  have saved companies billions of dollars and are
  the leading continuous improvement methods
  utilized today. 
• Lean Manufacturing Focuses on eliminating the 7
  or 8 wastes and is based on the philosophy of
  getting all levels of an organization involved.
  It was developed by Toyota in the late 1950s.
• Six sigma is a philosophy of doing business with
  a focus on eliminating defects through
  fundamental process knowledge.  Six sigma methods
  integrate principles of business, statistics and
  engineering to achieve tangible results.

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7 or 8 Wastes of Lean

• 1. Defects 2. Overproduction3.
  Transportation4. Waiting5. Inventory6.
  Motion7. Processing8. Skills Not utilizing
  peoples talents

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Six Sigma Vs. Lean Manufacturing

• Huge difference between "lean Tools" and Six
  Sigma tools.
• Lean Improved process flow and the elimination
  of waste in a continual mode of improvement
• Any of the following mean Lean Manufacturing
• Continuous Improvement, Kaizen, Lean
  Manufacturing, JIT
• Six Sigma Reduced process variation
• Six Sigma holds the improvement process in the
  hands of a select group of belted individuals

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Six Sigma

• In 1986, Bill Smith, a senior engineer and
  scientist at Motorola, introduced the concept of
  Six Sigma to standardize the way defects are
  counted.
• Six Sigma provided Motorola the key to addressing
  quality concerns throughout the organization,
  from manufacturing to support functions. The
  application of Six Sigma also contributed to
  Motorola winning the Malcolm Baldrige National
  Quality award in 1988.
• Since then, the impact of the Six Sigma process
  on improving business performance has been
  dramatic and well documented by other leading
  global organizations, such as General Electric,
  Allied Signal, and Citibank.
• Today, Motorola continues to implement Six Sigma
  throughout its own enterprise, and extends the
  benefit of its Six Sigma expertise to other
  organizations worldwide through Motorola
  University.
• Six Sigma was derived from the statistical term
  of sigma which measures deviations from perfection

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Six Sigma History

• 1986 Motorola Defines Six Sigma and in 1987
  Chief Executive declares Motorola will be at 6s
  by 1992 (5-year goal)
• 1988 Six Sigma consortium is formed
• Motorola, Raytheon, ABB, CDI, Kodak
• 1989/1990 IBM, DEC try Six Sigma -- and fail
• 1993 AlliedSignal adds a new level to Six Sigma
  Dedicated Black Belts with a supporting
  infrastructure
• 1995 Jack Welch of General Electric adopts Six
  Sigma
• 1996-1998 Six Sigma implementation expands
  significantly as companies observe the success of
  Allied and GE Siebel, Bombardier, Whirlpool,
  Navistar, Gencorp, Lockheed Martin,
  Polaroid,Sony, Nokia, John Deere
• Siemens, BBA, Seagate, Compaq, PACCAR, Toshiba,
  McKesson, AmEx...
• 1999 Starting to see exponential growth. Formal
  Six Sigma training begins at ASQ Johnson
  Johnson, Air Products, Maytag, Dow Chemical,
  DuPont, Honeywell, PraxAir, Ford, BMW, Johnson
  Controls, Samsung

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Sigma Levels

• Sigma LevelA value from 1 to 6 that signifies
  the maximum number of defects per million1
  Sigma 690,000 defects/million 31 accurate2
  Sigma 308,537 defects/million 69.1463
  accurate3 Sigma 66,807 defects/million
  93.3193 accurate4 Sigma 6,210 defects/million
  99.3790 accurate5 Sigma 233 defects/million
  99.9767 accurate6 Sigma 3.4 defects/million
  99.999997 accurate

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Six Sigma Key Concepts

• At its core, Six Sigma revolves around a few key
  concepts.
• Critical to Quality Attributes most important to
  the customer
• Defect Failing to deliver what the customer
  wants
• Process Capability What your process can deliver
• Variation What the customer sees and feels
• Stable Operations Ensuring consistent,
  predictable processes to improve what the
  customer sees and feels
• Design for Six Sigma (DFSS) Designing to meet
  customer needs and process capability

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Six Sigma Methodology

• Six Sigma has two key methodologies
• DMAIC and DMADV.
• DMAIC is used to improve an existing business
  process.
• DMADV is used to create new product designs or
  process designs in such a way that it results in
  a more predictable, mature and defect free
  performance.

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Statistical Process Control Methodology

• Statistical process control is an important part
  of Six Sigma methodology, which proceeds through
  the following steps, also called DMAIC (Define,
  Measure, Analyze, Improve and Control)
• 1. Define - benchmarking, process flow mapping,
  flowcharts
• 2. Measure - defect metrics, data collection,
  sampling
• 3. Analyze - Fishbone diagrams, failure analysis,
  root cause analysis
• 4. Improve - modeling, tolerance control, defect
  control, design changes
• 5. Control - SPC control charts, performance
  management

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Six Sigma Five Phases

• Basic methodology consists of the following five
  phases DMADV (Define, Measure, Analyze, Design,
  and Verify)
• Define - formally define the goals of the design
  activity that are consistent with customer
  demands and enterprise strategy.
• Measure - identify CTQs (Critical to Quality),
  product capabilities, production process
  capability, risk assessment, etc.
• Analyze - develop design alternatives, create
  high-level design and evaluate design capability
  to select the best design.
• Design - develop detail design, optimize design,
  and plan for design verification. This phase may
  require simulations.
• Verify - verify design, setup pilot runs,
  implement production process and handover to
  process owners. This phase may also require
  simulations.

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Six Sigma Key People Roles

• Executive Leadership includes CEO and other key
  top management team members. They are responsible
  for setting up a vision for Six Sigma
  implementation. They also empower the other role
  holders with the freedom and resources to explore
  new ideas for breakthrough improvements.
• Champions are responsible for the Six Sigma
  implementation across the organization in an
  integrated manner. The Executive Leadership draws
  them from the upper management. Champions also
  act as mentor to Black Belts.
• Master Black Belts, identified by champions, act
  as in-house expert coach for the organization on
  Six Sigma. They devote 100 of their time to Six
  Sigma. They assist champions and guide Black
  Belts and Green Belts. Apart from the usual rigor
  of statistics, their time is spent on ensuring
  integrated deployment of Six Sigma across various
  functions and departments.
• Black Belts operate under Master Black Belts to
  apply Six Sigma methodology to specific projects.
  They devote 100 of their time to Six Sigma. They
  primarily focus on Six Sigma project execution,
  whereas Champions and Master Black Belts focus on
  identifying projects/functions for Six Sigma.
• Green Belts are the employees who take up Six
  Sigma implementation along with their other job
  responsibilities. They operate under the guidance
  of Black Belts and support them in achieving the
  overall results.

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Recognized Training

• GE
• Motorola
• ASQ American Society for Quality
• Six Sigma Academy
• Institute of Industrial Engineers
• ISSSP International Society of Six Sigma
  Professionals