performance.
A formal plan is established to
An Excerpt From TAB # 31
Taking the Mystery out
of the Methodology
Six Sigma is an information-
driven methodology for reducing
waste, increasing customer-
satisfaction, and improving
processes, with a focus on
financially-measurable results. First
developed at Motorola Corporation
in the 1980's Six Sigma is now
considered to be a world-class
measure of excellence and
efficiency.
In statistics, 'sigma' refers to variation.
Six Sigma methodology focuses on reducing
variation as a way to improve processes. In
particular, it uses sigma to measure the
performance of a process to produce defect-free
results. A defect is anything that causes
customer dissatisfaction, such as a product that
doesn't meet the customer's specifications, poor
service, or a price tag that's too high.
A Company operating at Six Sigma
quality produces 3.4 defects per million
opportunities; that is, the work is 99.99966 %
defect free. Today most organizations operate
between 2 and 3 sigma. Operating at a higher
level of quality not only results in happier
customers, but also saves money by reducing
waste and rework and by decreasing cycle time.
Six Sigma methodology does not apply
only to manufacturing or technical processes. In
order to successfully implement Six Sigma,
virtually every facet of an organization, from
administration to finance, is examined for
opportunities to optimize output and improve
identify the overall program goals and timeline.
Most companies develop a long-term plan that
outlines the move from current performance
levels to Six Sigma performance levels, with
tangible, short-term goals in between.
Once an organization decides to begin a
Six Sigma program, one requirement for success
is the organization's ability to effectively deploy
information about the concepts and company
target goals to employees. Involvement of top
management and alignment of company
leadership are critical. Ideally, training is
provided to all employees at all levels to ensure
that a common language and standard approach
exist throughout the organization. A common set
of tools and techniques is internalized and
everyone must be working toward the same
objectives. Some companies establish a reward
and recognition system for all employees that are
based on meeting target goals and an
infrastructure that supports the plan. Company
leadership must be willing to give teams the
tools and the authority to apply Six Sigma
concepts to their day-to-day activities.
Employees assess how they can contribute to the
organization through improvements made with
respect to their own jobs. Individual quality
goals are set to tie in with the overall company
quality-improvement goals.
Projects are selected that support the
company's overall plan. The size of the project is
evaluated carefully so as to provide meaningful
benefits to the company while also staying
confined to a manageable size and reasonable
time frame. The focus is usually tied to a
tangible organizational performance measure
such as reduction in the number of defects or
cycle time. Many companies prefer to select
projects that will save at least $100,000. The
resources and tools to accomplish the goal must
be provided. These include manpower, training
and endorsement by a member of management.
Once a process is selected as a candidate
for improvement, a problem statement is
developed and the objective or desired outcome
is defined. Progress measures are established and
a cost/benefit analysis is performed. Next, a map
or flowchart of the entire process is created. The
purpose of this is to clarify the sequence of steps
in the process as it currently exists and to
identify all of the response variables within each
step. This process "dissection' provides
documentation of the process and an opportunity
to resolve any misunderstandings of the process.
Each step is then classified as critical, major, or
minor – and ranked with respect to its impact on
the output. A schedule is developed that outlines
the strategy to take the process from its current
state to one that is within statistical control and
in line with the company's Six Sigma goals.
Data are then collected related to the
process from many sources including scrap and
defect reports, yield charts, product returns, etc.
A (MINITAB) Gage R & R functions may be
used to help to determine the precision and
accuracy of the measuring system. The data are
then categorized and studied for trends. Potential
sources of variation are identified [using
MINITAB tools including Pareto Charts, Cause
and Effect Diagrams, Regression and Analysis of
Variance (ANOVA)].
When potential key characteristics are
identified, the use of control charts may be
incorporated to monitor these input variables.
Statistical evaluation of the data identifies key
areas to focus process improvement efforts on,
which can have an adverse effect on product
quality if not controlled. Special cause variation
can also be documented at this stage.
To prove causation, (MINITAB) Design
of Experiments (DOE) is used to generate and
analyze experimental designs. Designs can
include both controllable and environmental
factors, which allows the user to choose the best
settings for individual environmental or client
conditions.
Once the potential causes for variation
are identified, an action plan must be selected
and implemented to bring the process into
control. This step usually involves a cost/ benefit
analysis of the planned action. Control charts can
be used to show sustainability of the process.
MINITAB has a wide variety of attribute and
control charts from which to choose.
Specification limits are set and process stability
is monitored. A process control plan is
developed that summarizes all of the elements
used to control variation within the process.
Once the process is considered stable, a
capability analysis study (Cpk) is performed to
determine the process capability. Advanced
problem-solving techniques and tools such as
DOE, ANOVA, and Regression Analysis are
used to improve processes.
Process changes are documented along
with benefits realized. A cost/ benefit analysis is
conducted to determine impact of the project on
the organization. Opportunities for further
improvement are identified and the cycle
continues.
Business has recognized the importance
of incorporating quality improvement practices
in their strategy to remain competitive in a global
marketplace. Colleges and universities around
the world are also recognizing the importance of
exposing students to the basic tools and
techniques used in quality improvement
programs such as Six Sigma. The road to
perfection requires time and commitment.
A Six Sigma program will not change the
business overnight. In fact, it is an initiative that
requires long-term investment of time and effort
from the organization, particularly from
management. Effective implementation of the
tools and techniques equals rewards for both the
customers and the bottom line.
An Excerpt From TAB # 31