Defining Six Sigma

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This presentation will define Six Sigma and describe the benefits of incorporating Six Sigma methods to company business practices and processes. Six Sigma methods & strategies have been known to improve business services, processes and ROI by as much as 70 percent. Can be deployed in all industry types and sizes.

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  • Also B of A saved hundreds of millions in 3 yrs, cut cycle times by half and dramatically reduced the number of processing errors.
  • Defining Six Sigma

    1. 1. Defining Six Sigma<br />
    2. 2. What is Six Sigma?<br /><ul><li> Six Sigma is…
    3. 3. Most effective problem-solving methodology available for improving business & org performance.
    4. 4. Performance is the statistical term for a process that produces fewer than 3.4 defects (or errors) per million opportunities.
    5. 5. Improvement is when the key outcomes of a business or work process are improved dramatically, often by 70% or more.</li></li></ul><li><ul><li>Deployment is the prescriptive rollout of the Six Sigma methodology across an organization.
    6. 6. Organization uses Six Sigma methods and tools to improve performance:
    7. 7. lower costs, grow revenue, improve customer satisfaction,increase capacity & capability, reduce complexity, lower cycle time, minimize defects and errors.</li></li></ul><li><ul><li>Six Sigma is a methodology for minimizing mistakes and maximizing value!
    8. 8. Every mistake made has a cost.
    9. 9. Lost customer
    10. 10. Rework
    11. 11. Replacement parts
    12. 12. Time or material wasted
    13. 13. Efficiency lost
    14. 14. Productivity squandered</li></li></ul><li><ul><li>Waste & mistakes cost many organizations as much as 20-30% of their revenue.
    15. 15. All business organizations have room to improve!
    16. 16. By nature, organizations tend to become messy or sloppy as they grow.
    17. 17. Processes, technology, systems, and procedures become cluttered with bottlenecks
    18. 18. Work performed incorrectly or the outcome is flawed.
    19. 19. Product/service takes too long to produce/deliver.</li></li></ul><li>Why Six Sigma?<br />The sigma scale is a universal measurement of how well a critical characteristic performs compared to it’s requirements.<br />The higher the sigma score, the more capable the characteristic.<br />For example: <br />If a critical characteristic is defective 31% of the time, you say that this characteristic operates at two sigma.<br />
    20. 20. * DPMO = Defects per million opportunities<br />
    21. 21. How good is good?<br />
    22. 22. When safety or human life is involved, companies are able to produce six sigma quality in their final products, services, and transactions.<br />For example:<br />Did you know that you are about 2,000 times more likely to reach your destination when you fly than your luggage is? <br />
    23. 23. Radical Corporate Success<br /><ul><li>GE profited between $7 to $10 billion from Six Sigma in 5 yrs!
    24. 24. DuPont added $1 billion to its bottom line in 2 yrs and $2.4 billion within 4 yrs!
    25. 25. Honeywell achieved record operating margins and savings of more than $2 billion in direct costs!
    26. 26. Motorola saved $2.2 billion in 4 yrs!</li></li></ul><li>Six Sigma is the Bridge…<br /><ul><li>Between science and leadership:
    27. 27. Six Sigma culminates in the predictability and control of performance in a business or business process.</li></li></ul><li>How long to implement?<br /><ul><li>Six Sigma team projects typically will take 1 to 3 months (or longer) depending on the complexity of the problem. </li></li></ul><li>What can Six Sigma do for your organization?<br /><ul><li>Six Sigma delivers management results:
    28. 28. Improve Return on Investment (ROI)
    29. 29. Can improve a business characteristic by 70% or more.
    30. 30. The initiatives and projects have a direct, measureable financial focus and impact.
    31. 31. Customer focus (VOC)
    32. 32. Improved productivity of employees
    33. 33. Improved problem solving skills</li></li></ul><li><ul><li>Reduced costs
    34. 34. Reduced number of errors or mistakes
    35. 35. Standard continuous improvement methodology
    36. 36. Fact based decision making process
    37. 37. Common language throughout the organization</li></li></ul><li>Questions?<br />

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