ISSN: 1829-9466 ©2007 Journal of the Indonesian Oil and Gas Community.

Published by “Komunitas Migas Indonesia”

Six Sigma Methodology: An Introduction

Wisnu Sri Bandono1 and Sadono2

1
Siemens Power Generation, Cilegon. E-mail: wisnusb@gmail.com
2
Chevron IndoAsia SBU. E-mail: sadono@gmail.com

Abstract. Six Sigma is generally known as a method to 3. Applications in Oil and Gas
improve quality of processes and business culture. It
provides tools and roadmap to achieve business benefit. Typical project scope in oil and gas upstream sectors:
Present article gives a basic understanding and ƒ Oil/water/gas processing
implementation sectors in oil & gas industries. ƒ Enhanced oil recovery: secondary and tertiary
ƒ Well testing
Keywords: Six Sigma, quality of process, business ƒ Drilling and completion
ƒ Well service
ƒ Reliability/maintenance
1. Definition ƒ Supply chain management
ƒ Transportation
Six Sigma has been known as a process of continuous ƒ Information technology
improvement method since 1980s. This method came in
after a series of process improvement methods or
systems such as Statistical Process Control, Total As is condition Potential Improvement
Quality Management, Malcolm Baldrige, Quality High rejection rate Reduction of certain level
circles, Kaizen, Juran etc. The latest development of Six of reject rate/rework
Sigma is the combination of Six Sigma with Lean High down time Improve reliability
Concept, or known as Lean Six Sigma or Lean Sigma. Long delivery time Speed up delivery time
This latest development methodology improves Highly inventory level Reduce capital investment
business process.

Six Sigma is a data driven methodology, which aims to 4. Comparison between Traditional
improve business and management processes by
focusing on eliminating defects, faults, waste, rework,
Quality Approach and Six Sigma
and improving business culture, as final impact for
Comparison between traditional quality approach and
increasing business profitability.
Six Sigma can be listed below:
Sigma is a Greek letter used to designate standard
deviation. It is a measurement used to define how good
or bad a process performance is. Reduce process Traditional Approach Six Sigma
variation methodology has also been spread out to other
industries; from healthcare, aerospace, finance, Usually driven by Start with specific business
transactional service to oil and gas. isolated incident problem
Systematic method, data
Non-systematic method
driven
2. How It Works Quality Common understanding of
compartmentalized, quality in all areas of the
From supplier – customer standpoint, there are two segmented business
main techniques for every process output: Do not include financial Links to business finance
1. Centering the Process Project based, measurable
2. Reducing Variation Quick fixed
and sustainable result

5. Six Sigma Methodology

Six Sigma is method for reducing process variation as
the main enemy in any process. There are five sub
phases, and they are known as structured, discipline,

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 ISSN: 1829-9466 ©2007 Journal of the Indonesian Oil and Gas Community. Published by “Komunitas Migas Indonesia”

rigorous approaches to process improvement - Reliability modeling

methodology. The sub phases are abbreviated as
DMAIC phases or Define, Measure, Analysis, Improve,
Control (Figure 1).
- Economic analysis
Improve. In this phase, project team should already
know how to develop, implement and evaluate solution
target at verified cause. The goal is to demonstrate
solutions on how to solve problem that leads to
improvement.

The tools are:

- Brainstorming
- Creativity technique-consensus
Figure 1. DMAIC: Define, Measure, Analyze, Improve - FMEA’s action plan
and Control - Planning Tools
- Hypothesis testing
Define. The first phase (Define) concerns with project’s - Design of experiments
purpose and scope. In this phase, all background
information of process and customer are collected. Control. “Control” is to ensure a problem stay fixed,
and new method can be further improved over time.
The tools are:
- Project Charter The tools are:
- SIPOC (Supplier Input Process Output Customer) - Control charts (individual charts, X-bar, R charts
- VOC (Voice of Customer) covered on Measure Phase)
- Affinity Diagram - Data collection (covered, Measure Phase)
- Kano Model - Flow Diagram (covered , Analyze Phase)
- CTQ (Critical to Quality) tree - Charts to compare before and after such frequency
- Quality Fitness Review plots, pareto charts)
- Quality control Process Chart
Measure. “Measure” focuses on improvement effort by - Standardization
gathering information in the current situation. The - Reliability plans
outputs of measure are:
- Baseline data on current process performance
- Data that pinpoints problem location or occurrence
- A more focused problem statement 6. Critical Success Factors in
Six Sigma
The tools are:
- Data Collection Plan There are three main factor for successful Six Sigma
- Data Collection Form deployment: committed leadership, full time
- Control Chart deployment facilitator and deployment infrastructure.
- Frequency Chart Those factors will be described briefly in the following
- Gauge R&R sections.
- Pareto Chart
- Prioritization Matrix 6.1 Committed leadership
- FMEA (Failure Mode Effect Analysis)
- Process Capabilities Leadership plays important role for successful Six
- Process Sigma Sigma deployment, as it recognizes as top-down
- Benchmarking program. Organization leadership should have its own
- Cause & Effect continuous process improvement mindset. Leadership
should give commitment and personal involvement by
Analyze. “Analyze” produces baseline performance of a developing accountability process, implementing
process by having stratified data in the baseline scorecard and reviewing process regularly.
performance. It is possible to pinpoint the location of
source of problem. 6.2 Full time deployment facilitator
The tools are: This person has main responsibility in facilitating Six
- Affinity Diagram Sigma project, whose business objective is to complete
- Brainstorming certain projects with financial benefit target per annum.
- Cause and Effect Diagram with CNX Position of facilitator has two types: internal and outside
- Control Chart resources.
- Design of Experiment
- Hypothesis test

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 ISSN: 1829-9466 ©2007 Journal of the Indonesian Oil and Gas Community. Published by “Komunitas Migas Indonesia”

6.3 Deployment infrastructure There are three categories of financial benefit:

Deployment infrastructure provides system and tool in ƒ Cost saving

implementing Six Sigma initiatives. Deployment Cost saving will be gained from improving the process
infrastructure includes governance system, project and sustaining the improvement of project in certain
prioritization metrics, deployment templates, period.
deployment tracking system and database as intellectual
source for deployment exchange within organization. ƒ Revenue increase
Typically includes any financial benefit from
7. Terminology accelerating the production from improving system
reliability and comes from reducing cycle time of
There are several terminologies in Six Sigma capital project.

Leadership: a top management (director level) that ƒ Capital avoidance

ensures support and implementation of project Any financial benefit that can be realized by eliminating
improvement the need or reducing the capital required.

Deployment Leader: managing deployment effort in 9. References

setting vision, goal, deployment advisory, project
tracking, training plan and infrastructure development.
Green Belt: a project leader who directs a project using
Sigma roadmaps, Sigma tools and methodology of Six
Sigma.
[1] Rath and Strong, “Six Sigma Pocket Guide”,
2002K. Hwang, Computer Arithmetic, John Wiley,
1997.
[2] GOAL/QPC, Memory JoggerII Six Sigma, 2002.
[3] Siemens, Module Green Belt Training, 2006.

Black Belt: experienced Green Belt person who has

certain skill in enhancing Six Sigma tools (e.g. design of 10. Biographies
experiments). Black Belt functions to guide and
supervise the Green Belt. Wisnu Sri Bandono is a welding
engineer. His task also includes project
Master Black Belt: a person at the top of the business quality management system. He
organization who develops vision and mission of quality received BSc degree in ocean
improvement, supervises Black Belt and Green Belt and engineering from Sepuluh Nopember
ensures the utilization of right and approved Institute of Technology (ITS) Surabaya
methodology during phase of project in 1997.

Financial Verificator: a commercial person, who will Sadono is working as Lean Sigma
verify the financial benefit made by Six Sigma project. Deployment Leader at Chevron
IndoAsia SBU. He received BSc
Project Charter: a statement that mentions project degree in electrical engineering from
name, working team, problem statement (cost of poor Trisakti University. Currently, he is
quality), project period and projection of project benefit. also studying business management
with MBA – Institute of Technology Bandung.

8. Project Scope and Financial Benefits

Any Six Sigma project initiatives should make add-
value creation. There are several project selection
guidelines:

- Clear connection to business priorities

- Solution to problems in an organization
- Reasonable scope
- Clear quantitative measure of success
- Support and approval from management

Six Sigma project period is usually set for less than one
year. This period ensures project manageability both in
scope and in complexity.

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