Six Sigma Performance

Six Sigma is a scientific methodology that strives to achieve perfect quality in the eyes (a.k.a.
Voice) of the Customer.

It's a structured performance improvement process that has nothing to do with martial arts
other than the names were taken to dictate the levels of expertise. The terms Yellow Belt, Green
Belt, Black Belt, and Master Black Belt are terms given to individuals that practice the Six Sigma
methodology.

The methodology is a combination of traditional tools with recent breakthroughs in conjunction

with statistics organized in a disciplined structure. Six Sigma strives to:

 understand and reduce variation

 improve performance
 improve customer satisfaction

Technically...

Perfect takes on various standards depending on the industry, process, service, or customer. Six
Sigma performance is generally considered the standard for perfection but this level of
performance may not always meet the customer expectations. Having a defect rate of six sigma
can represent perfection in some areas and not for others. If the process involves life dependent or
critical products then this rate of defects is not going to be acceptable, it is not good enough. In
other cases the unnecessary precision may be too expensive to achieve at least six sigma
performance.

Quality has a wide array of definitions, it can relate to reducing defects, reducing inventory,
improving scorecards, morale, and creating new products and services.

Customer also has a diverse scope consisting of the end-users, downstream operators, the
company, and lost or potential end-users.
Six Sigma programs
Working as a Six Sigma project leader can be a very rewarding and well-paying career. Often
Green Belts and Yellow Belts are trained in the principles but retain their original job while using
the basic principles in their daily work. The Master Black Belt is a subject matter expert and the
Yellow Belt is the novice.

Six Sigma programs aim to be proactive by applying an array of statistical tools to understand the
impact of all key input variables causing the variation of a process (in the case for DMAIC project)
or create a defect free, minimal variation product or process at inception (in the case for a DFSS -
Design for Six Sigma).

With the tools, a Green Belt or Black Belt, can guide the cross functional team to focus their efforts
around controlling the critical inputs to deliver repetitive, customer satisfying, low-cost products,
processes, and services.

The tools (and correct interpretation) will help direct the team's decisions to the most effective and
efficient improvements. This avoids losing valuable time on the lesser significant inputs to not only
improve the process but in an very efficient way.

Sigma is a measure of the process variability or spread. The higher the sigma level the fewer
defects the process creates.

Six sigma performance is a long term (future) process that creates a level of 3.4 defects per
million opportunities (DPMO). If the area under the normal curve represents one million
opportunities then approximately 3.4 of them would be outside of the customer specification
limit(s) when shifted 1.5 sigma to account for all the short term shifts.

A six sigma process refers to the process short-term performance or how it is performing
currently. When referring to DPMO of the process, we are referring to long-term or projected
performance behavior.

A six sigma level of performance has 3.4 defects per million opportunities (3.4 DPMO). A current
six sigma process now will have a estimated shift of 1.5 sigma (lower) in the future and will
perform at a 4.5 sigma level, which produces 3.4 DPMO.

A typical process has been proven to have a shift in its average performance of up to +/- 1.5
sigma over the long term. A long term Six Sigma process that is rated at 4.5 sigma is considered
to have a short term sigma score of 6 sigma. The combination of all the short term samples that
make up the long term performance will create no more than 3.4 defects per million opportunities.

A process, product, or service would need to create conformance

999,996.6 times for every 1,000,000 opportunities

and sustaining a process mean shift of up to 1.5 standard deviations (sigma).

The methodology focuses on variation reduction within a process and designing new processes or
products that will perform at a near perfect and consistent level over the long term.
Six Sigma is about improving the Bottom Line
The real motivation for implementing a Six Sigma program is to make more money. Six Sigma
strives to improve customer satisfaction, increase sales, reduce defects but all those are leading
indicators to profitability which is the real goal..the output.

The methodology not only strives to maximize profits but ensures stability in those returns and
predictability. It alerts companies if conditions are going out of control before the bottom line goes
out of control.

Y = f (x1,x2,x3.....xn)
The above formula simply states that a process output (Y) is a function of it inputs. Too often
companies measure the Y to heavily and focus on controlling just the Y rather than focus the
inputs and this can create conflicting focus across the company on too many inputs or not the
most vital inputs.

Y = an ouput, the effect, or the symptom (there is one output)

X = an input to the process, a cause, a variable (likely many inputs)

While the outputs are important, Six Sigma focuses on controlling the inputs to get an output the
has minimal variation, is on target, and meets the customer specifications.

There may be a few to several thousand inputs. The Six Sigma team's job is to identify and
prioritize them through subjective and statistical analysis for improvement opportunities. Then, a
relentless drive to improve and SUSTAIN the improvements prior to closing the charter.

The Principle
Not every process will end up at 3.4 DPMO (6 sigma) and it may not be necessary or it also may
not be good enough, depending on industry and critical nature of process. However, by controlling
the KPIV (key process input variables) the team makes a fundamental shift to meet and exceed
customer expectations and most important, SUSTAINS the gains.