Six Sigma For Managers

Six Sigma for
Managers
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Contents :
Six Sigma : An Overview
What is Six Sigma?
Why Six Sigma?
Six Sigma Phases : Define, Measure, Analyze,
Improve and Control
Tools and Key Roles for Six Sigma
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Why Six Sigma?
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What is Sigma ?
Sigma
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A term used in statistics to represent

standard deviation, an indicator of the
degree of variation in a set of a process
What is Six Sigma?
Six
Sigma
A statistical concept that measures a

process in terms of defects at the six
sigma level, there 3.4 defects per
million opportunities
A philosophy and a goal : as perfect as
practically possible
A methodology and a symbol of quality
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Sigma Level
Sigma Level
(Process
Capability)
Defects per Million

Opportunities
308,537
66,807
6,210
233
3.4
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Sigma Level
Six Sigma =
99,9997%
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Sigma Level
Why not Four
Sigma or
99.379% ?
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Every hour the postal service

would lose 20,000 pieces of mail
Every day our drinking water would
be unsafe for almost 15 minutes
Every week there would be 5,000
surgical operations that go wrong
in some way
Every month we would be without
electricity for almost seven hours
Why Six Sigma?

Money
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Quality
Customer
Satisfaction
Competitive
Advantage
Growth
Employee Pride
Why Six Sigma?

At GE, Six Sigma added more than $ 2 billion to the
bottom line in 1999 alone
Motorola saved more than $ 15 billion in the first 10
years of its Six Sigma effort
AlliedSignal reports saving $ 1,5 billion through Six
Sigma.
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10
Why Six Sigma?

Six Sigma is about practices that help you
eliminate defects and always deliver
products and services that meet customer
specifications
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Cost of Poor Quality

What is cost of scrap?
What is cost of rework?
What is cost of excessive cycle times and
delays?
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Cost of Poor Quality

What is cost of business lost because
customers are dissatisfied with your
products or services?
What is cost of opportunities lost because
you didnt have time or the resources to take
advantage of them?
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13
Critical-to-Quality (CTQ)
Elements of a process that significantly affect
the output of that process. Identifying these
elements is figuring out how to make
improvements that can dramatically reduce
costs and enhance quality.
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14
Six Sigma Phases
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15
Six Sigma Phases

Define
Measure Analyze
Improve
DMAIC
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Control
16
Six Sigma Phases

Define
Define the project goals and customer

(internal and external) deliverables
Measure
Measure the process to determine current

performance
Analyze
Analyze and determine the root cause(s)

of the defects
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17
Six Sigma Phases

Improve the process by eliminating defects
Improve
Control
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Control future process performance
18
Six Sigma Phases

Define Customers and Requirements (CTQs)
Define
Develop Problem Statement, Goals and

Benefits
Identify Champion, Process Owner and Team
Define Resources
Evaluate Key Organizational Support
Develop Project Plan and Milestones
Develop High Level Process Map
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Six Sigma Phases

Define Defect, Opportunity, Unit and Metrics
Measure
Detailed Process Map of Appropriate Areas

Develop Data Collection Plan
Validate the Measurement System
Collect the Data
Begin Developing Y=f(x) Relationship
Determine Process Capability and Sigma
Baseline
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20
Six Sigma Phases

Define Performance Objectives
Analyze
Identify Value/Non-Value Added Process

Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x's, Y=f(x) Relationship
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Six Sigma Phases

Perform Design of Experiments
Improve
Develop Potential Solutions

Define Operating Tolerances of Potential
System
Assess Failure Modes of Potential
Solutions
Validate Potential Improvement by Pilot
Studies
Correct/Re-Evaluate Potential Solution
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22
Six Sigma Phases

Control
Define and Validate Monitoring and Control

System
Develop Standards and Procedures
Implement Statistical Process Control
Determine Process Capability
Develop Transfer Plan, Handoff to Process Owner
Verify Benefits, Cost Savings/Avoidance, Profit
Growth
Close Project, Finalize Documentation
Communicate to Business, Celebrate
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Define
Measure
Analyze
Improve
Control
Deliverables :
Fully trained team is formed, supported, and
committed to work on improvement project.
Team charter developed, customers identified and
high impact characteristics (CTQs) defined, business
process mapped.
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Define
Measure
Analyze
Improve
Control
Checkpoints for Readiness

Team Readiness :
Team is sponsored by a champion or business leader.
Team formed and team leaders assigned.
Improvement team members fully trained on Six Sigma and DMAIC.
Team Charter :
Completed project management charter, including business case,

problem and goal statements, project scope, milestones, roles and
responsibilities, communication plan.
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Define
Measure
Analyze
Improve
Control

Customers
Customer(s) identified and segmented according to their different

needs and requirements.
Data collected and displayed to better understand customer(s) critical

needs and requirements.
Business Process Mapping
Completed, verified, and validated high-level 'as is' (not 'should be' or
'could be') business process map.
Completed SIPOC representation, describing the Suppliers, Inputs,

Process, Outputs, and Customers.
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Define
Measure
Analyze
Improve
Control
Deliverables :
Key measures identified, data collection planned and
executed, process variation displayed and communicated,
performance baselined, sigma level calculated.
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27
Define
Measure
Analyze
Improve
Control

Key Measures Identified
Key measures identified and agreed upon.
High impact defects defined and identified in the business process.
Data Collection Planned and Executed
Solid data collection plan established that includes measurement

systems analysis.
Data collected on key measures that were identified.
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28
Define
Measure
Analyze
Improve
Control

Process Variation Displayed/Communicated
Process variation components displayed/communicated using

suitable charts, graphs, plots.
Long term and short term variability accounted for.
Performance Baseline/Sigma Calculation
Measure baseline process performance (capability, yield,

sigma level).
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29
Define
Measure
Analyze
Improve
Control
Deliverables :
Data and process analysis, root cause analysis,
quantifying the gap/opportunity.
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30
Define
Measure
Analyze
Improve
Control

Data and Process Analysis
Identify gaps between current performance and the goal

performance.
Root Cause Analysis
Generate list of possible causes (sources of variation).
Segment and stratify possible causes (sources of variation).
Prioritize list of 'vital few' causes (key sources of variation).
Verify and quantify the root causes of variation.
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31
Define
Measure
Analyze
Improve
Control

Quantifying the Gap/Opportunity
Determine the performance gap.
Display and communicate the gap/opportunity in financial terms.
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32
Define
Measure
Analyze
Improve
Control
Deliverables :
Generate (and test) possible solutions, select the best
solutions, design implementation plan.
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Define
Measure
Analyze
Improve
Control

Generating (and Testing) Possible Solutions
Possible solutions generated and tested.
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Define
Measure
Analyze
Improve
Control

Selecting The Best Solution(s)
Optimal solution selected based on testing and analysis.
New and improved process ('should be') maps developed.
Cost/benefit analysis of optimal solution(s).
Small-scale pilot for proposed improvement(s).
Pilot data collected and analyzed.
Improved process ('should be') maps modified based on pilot data

and analysis.
Project impact on utilizing the best solution(s).
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Define
Measure
Analyze
Improve
Control

Designing Implementation Plan
Solution implementation plan established, including schedule/work

breakdown structure, resources, risk management plan,
cost/budget, and control plan.
Contingency plan established.
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Define
Measure
Analyze
Improve
Control
Deliverables :
Documented and implemented monitoring plan,
standardized process, documented procedures, response
plan established and deployed, transfer of ownership
(project closure).
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Define
Measure
Analyze
Improve
Control

Monitoring Plan
Control plan in place for sustaining improvements (short and longterm).
Process Standardization
New process steps, standards, and documentation are ingrained into
normal operations.
Documented Procedures
Operating procedures are consistent.
Knowledge gained on process is shared and institutionalized.
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Define
Measure
Analyze
Improve
Control

Response Plan
Response plans established, understood, and deployed.
Transfer of Ownership (Project Closure)
Transfer ownership and knowledge to process owner and process
team tasked with the responsibilities.
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39
Tools and Roles for

Six Sigma
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40
Tools for Six Sigma

Creating flowcharts of the step in a process
operations, decision points, delays,
movements, handoffs, rework, loops, and
controls or inspections.
A process map is illustrated description of
how a process work.
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Process
Mapping
41
Tools for Six Sigma

DOE is a structured, organized method for
determining the relationship between
factors (Xs) affecting a process and the
output of that process (Y).
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Design of
Experiments
or DOE
42
Tools for Six Sigma

A group of rows and columns, with one set
of increments marked along the X
(horizontal) axis and another set of
increments marked along the Y (vertical)
axis.
The purpose of using XY matrix is to study
and understand the relationship between
what you are putting into a process and
what your customer is getting out of it.
The XY matrix allows the team to identify
gaps, areas for improvement.
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XY Matrix
43
Tools for Six Sigma

The goal of this tool is to ensure that your
measurement system is statically confident
that its both accurate and precise each
and every time it is used.
Undertaken during Measure phase, your
MSA determines whether or not you can
take a certain measurement and repeat or
reproduce it among different people who
take the same measurement.
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Measurement
System
Analysis
44
Tools for Six Sigma

Process capability tool is the measure of a
process being able to meet specification
requirements and fulfill customer CTQ
needs on a long term basis.
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Process
Capability
Tool
45
Tools for Six Sigma

Investigating a theory about the suspected
cause (s) of a particular effect in a process
to determine if it is correct.
Its a compass that points you directly to the
vital few factors that are most affecting your
process.
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Hypothesis
Testing
46
Tools for Six Sigma

The manner in which a part or process can
fail to meet a specification, creating a
defect or non-conformance, and the impact
on the customer if that failure mode is not
prevented or corrected.
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Failure
Mode Effect
Analysis
47
Tools for Six Sigma

A detailed assessment and guide for
maintaining all the positive changes you,
your black belt, and the project team have
made.
It ensures that all your analysis and efforts
stay in effect and that you have information
at your disposal to prevent backsliding or a
return to less than optimal performance
standard.
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Control
Plan
48
Key Roles for Six Sigma

Executive
Leadership
Includes CEO and other key top management

team members. They are responsible for setting
up a vision for Six Sigma implementation.
Champions
Are responsible for the Six Sigma

implementation across the organization in an
integrated manner. Champions also act as
mentor to Black Belts.
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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.
Black Belts
Operate under Master Black Belts to apply Six

Sigma methodology to specific projects. They
primarily focus on Six Sigma project execution.
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Green Belts
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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.
51
Six Sigma Dos

Do communicate the commitment companywide
Do demonstrate the commitment of company
leaders
Do empower your key human resources
Do provide on-site mentoring for black belts
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52
Six Sigma Dos

Do be patient at the inception of you six Sigma
initiative
Do claim and advertise early wins
Do benchmark
Do establish project baseline and goals
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Recommended Further Readings:

1.
Greg Brue, Six Sigma for Managers, McGraw Hill
2.
George Eckes, Six Sigma for Everyone, John Wiley and Sons
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End of Material
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Six Sigma for

If you find this presentation useful, please consider telling others

Why Six Sigma?

A term used in statistics to represent

What is Six Sigma?

A statistical concept that measures a

Defects per Million

Every hour the postal service

Why Six Sigma?

Why Six Sigma?

Why Six Sigma?

Cost of Poor Quality

Cost of Poor Quality

Six Sigma Phases

Six Sigma Phases

Six Sigma Phases

Define the project goals and customer

Measure the process to determine current

Analyze and determine the root cause(s)

Six Sigma Phases

Control future process performance

Six Sigma Phases

Develop Problem Statement, Goals and

Six Sigma Phases

Detailed Process Map of Appropriate Areas

Six Sigma Phases

Identify Value/Non-Value Added Process

Six Sigma Phases

Develop Potential Solutions

Six Sigma Phases

Define and Validate Monitoring and Control

Checkpoints for Readiness

Team is sponsored by a champion or business leader.

Team formed and team leaders assigned.

Improvement team members fully trained on Six Sigma and DMAIC.

Completed project management charter, including business case,

Checkpoints for Readiness

Customer(s) identified and segmented according to their different

Data collected and displayed to better understand customer(s) critical

Business Process Mapping

Completed SIPOC representation, describing the Suppliers, Inputs,

Checkpoints for Readiness

Key measures identified and agreed upon.

High impact defects defined and identified in the business process.

Data Collection Planned and Executed

Solid data collection plan established that includes measurement

Data collected on key measures that were identified.

Checkpoints for Readiness

Process variation components displayed/communicated using

Long term and short term variability accounted for.

Performance Baseline/Sigma Calculation

Measure baseline process performance (capability, yield,

Checkpoints for Readiness

Identify gaps between current performance and the goal

Root Cause Analysis

Generate list of possible causes (sources of variation).

Segment and stratify possible causes (sources of variation).

Prioritize list of 'vital few' causes (key sources of variation).

Verify and quantify the root causes of variation.

Checkpoints for Readiness

Checkpoints for Readiness

Possible solutions generated and tested.

Checkpoints for Readiness