We will cover: • Why every company needs Six Sigma implementation • How processes are improved by using Six Sigma • Real benefits in profits, and reductions in defects Presenter: This webinar will be presented by M.Youssef.K, Executive Consultant & Trainer at Six Sigma Associates - SSA.

1. Six Sigma - Achieve business excellence through the power of Six
Sigma
Six Sigma - Achieve business excellence through the power of Six
Sigma
Six Sigma

2. 99% is already VERY GOOD
But what could happen at a quality level of 99% in our everyday Lives.
• More than 3000 newborns accidentally falling
from the hands of nurses or doctors each year
• 4000 wrong medical prescriptions each year
• 400 letters per hour which never arrive at their destination
• Two long or short landings at American airports each day
How good is good enough?

3. How can we get these results
• 13 wrong drug prescriptions per year
• 10 new born babies dropped by doctors/nurses per year
• Two short or long landings per year in all the airports in
the U.S.
• One lost article of mail per hour

4. The answer is
Six Sigma

5. 5
Another Look of 6s Performance
99%
Good
99.99966%
Good
20,000
5,000
200,000
7 hr
per month
Lost articles of mail per hour 7
Incorrect surgeries per wk 1.7
Wrong prescriptions each yr 68
Hours without electricity 1 hr
per 34 years

6. Why use 6 Sigma?
• 6 Sigma delivers:
– Customer Satisfaction
– Cost Improvement results FASTER
– Sustain the Improvement
– Simply Put:
• For every ($1.00) Dollar you spend
• You get ($4.00) For Dollars in return

7. 7 2000
Why Use Six Sigma?Why Use Six Sigma?
• SS is the CPI industry standard
Increase throughput
Shorten cycle times
Reduce defects
Lower costs
1992 1995 Today
Motorola
ABB
TI
IBM
DEC
Kodak
AlliedSignal
GE
Siebe Foxboro
Lockheed Martin
Bombardier
John Deere
Whirlpool
GenCorp
Nokia
Sony
Siemens
Compaq
Seagate
PACCAR
Toshiba
DuPont
Dow Chemical
Maytag
Praxair
Ford
Air Products
Honeywell
Johnson Controls
Johnson & Johnson
Fannie Mae
Bank Of America
Intuit
AXA Equitable
United Health Group
Cardinal Health
Blue Cross
Providence Health
Home Depot
US DoD
Wells Fargo
Robert Half
Fifth Third Bank
CitiGroup

8. Critical to Success
QUALITY / COST / DELIVERY
Process Improvement Projects
Strategic Objectives
Key Processes
Metrics
Must be able to tell us if
we are meeting
objectives
Strategy/Tactics
Prioritize initiatives according to their impact on the
Mission Objectives
that are most important to the achievement of our
Strategic Objectives.
Mission Vision
Performance Management

9. A Vision and Philosophical commitment to our consumers to
offer the highest quality, lowest cost products
A Metric that demonstrates quality levels at 99.9997%
performance for products and processs
A Benchmark of our product and process capability for
comparison to ‘best in class’
A practical application of statistical Tools and Methods to
help us measure, analyze, improve, and control our process
What is Six Sigma

10. Six Sigma as a Philosophy
Internal &
External
Failure
Costs
Prevention &
Appraisal
Costs
Old Belief
4s
Costs
Internal &
External
Failure Costs
Prevention &
Appraisal
Costs
New Belief
Costs
4s
5s
6s
Quality
Quality
Old Belief
High Quality = High Cost
New Belief
High Quality = Low Cost
s is a measure of how much variation
exists in a process

11. Six Sigma
Methods Production
Design
Service
Purchase
HRM
Administration
Quality
Depart.
Management
Education
IT
Where can Six Sigma be applied?

12. Focus: The End User
• Customer: Internal or External
• Consumer: The End User
the “Voice of the Consumer” (Consumer Cue)
must be translated into
the “Voice of the Engineer” (Technical Requirement)

13. Perspectives of Six Sigma

14. Six Sigma as a Metric
1
)( 2
−
−
=
∑
n
xxi

σ
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
Axis graduated in Sigma
68.27 %
95.45 %
99.73 %
99.9937 %
99.999943 %
99.9999998 %
result: 317300 ppm outside
(deviation)
45500 ppm
2700 ppm
63 ppm
0.57 ppm
0.002 ppm
between + / - 1
between + / - 2
between + / - 3
between + / - 4
between + / - 5
between + / - 6
 =

15. What is Six Sigma

16. Define Phase of Six Sigma

17. Measure Phase of Six Sigma

18. Six Sigma Analyze Phase

19. Six Sigma Improve Phase

20. Six Sigma Control Phase

21. Statistical background
Target = m
Some Key measure

22. +/- 3 s
Statistical background
Target = m
‘Control’ limits

23. +/- 3 s
L S L U S L
Statistical background
Required Tolerance
Target = m

24. +/- 3 s
+/- 6 s
L S L U S L
Statistical background
Tolerance
Target = m
Six-Sigma

25. +/- 3 s
+/- 6 s
L S L U S L
pp m
1 350
pp m
1 350
Statistical background
Tolerance
Target = m

26. +/- 3 s
+/- 6 s
L S L U S L
pp m
0.00 1
pp m
1 350
pp m
1 350
pp m
0.00 1
Statistical background
Tolerance
Target = m

27. Statistical background
• Six-Sigma allows for un-foreseen ‘problems’ and
longer term issues when calculating failure error or
re-work rates
• Allows for a process ‘shift’

28. L S L
0 p p m p p m
3. 4
1 .5 s
U S L
p p m
3. 4p p m
66803
m
+/ - 6 s
Statistical background
Tolerance

29. Performance Standards
2
3
4
5
6
308537
66807
6210
233
3.4
σ PPM
69.1%
93.3%
99.38%
99.977%
99.9997%
Yield
Process
performance
Process
performance
Defects per
million
Defects per
million
Long term
yield
Long term
yield
Current standardCurrent standard
World ClassWorld Class

30. Number of processesNumber of processes 3σ3σ 4σ4σ 5σ5σ 6σ6σ
1
10
100
500
1000
2000
2955
1
10
100
500
1000
2000
2955
93.32
50.09
0.1
0
0
0
0
93.32
50.09
0.1
0
0
0
0
99.379
93.96
53.64
4.44
0.2
0
0
99.379
93.96
53.64
4.44
0.2
0
0
99.9767
99.77
97.70
89.02
79.24
62.75
50.27
99.9767
99.77
97.70
89.02
79.24
62.75
50.27
99.99966
99.9966
99.966
99.83
99.66
99.32
99.0
99.99966
99.9966
99.966
99.83
99.66
99.32
99.0
First Time Yield in multiple stage process
Performance standards

31. Benefits of 6s approach w.r.t. financialsBenefits of 6s approach w.r.t. financials
σ-level Defect rate
(ppm)
Costs of poor quality Status of the
company
6 3.4 < 10% of turnover World class
5 233 10-15% of turnover
4 6210 15-20% of turnover Current standard
3 66807 20-30% of turnover
2 308537 30-40% of turnover Bankruptcy
Financial Aspects

32. “….No amount of experimentation can prove me right; a
single experiment can prove me wrong”.
“….Science can only ascertain what is, but not what should
be, and outside of its domain value judgments of all kinds
remain necessary.”
- Albert Einstein

33. 33
The Six Sigma TollgateThe Six Sigma Tollgate
 Project Charter
Problem Statement
Defined Benefits
Business Case
 Process Map  Potential Xs  “To Be” Process Map  Transition Plan
 Measurable Y
Customer Specs/VOC
 Data Collection Plan
Data Collected
 Critical Xs  Improvement Strategy
Improvement Model
“X” Improvement Target
 QC Chart
 Cross Functional Team  Data Presentation
Run Chart; Histogram;
Mean/Stand. Dev.
 Required Data Display:
 Pareto Charts; Fish
Bone / C&E; Histograms;
 Mistake-Proofing  Communication to
Impacted Areas
 Timeline  Updated CTQs/CTPs  Optional Data Display:
 Descriptive Stats.; Time
Series Plots; Control Charts;
Box Plots
 FMEA  Project Documentation
 SIPOC  “Y” Performance Target  XY Matrix  Risk Analysis & Risk
Mitigation Plan
I accept the Define
Tollgate. Signed:
I accept the Measure
Tollgate. Signed:
I accept the Analyze
Tollgate. Signed:
I accept the Improve
Tollgate. Signed:
I accept the Control
Tollgate. Signed:
(Sponsor) (Sponsor) (Sponsor) (Sponsor) (Sponsor)
(Process Owner) (Process Owner) (Process Owner) (Process Owner) (Process Owner)
(MBB ) (MBB ) (MBB ) (MBB ) (MBB )
(Finance Owner) (Finance Owner) (Finance Owner)
Define Measure Analyze Improve Control
Involve, Align and Empower

34. Champion
Top Leadership
Identify key business issues
Allocate resources - Drive accountability
Visibly support overall program
Black Belt
Full-time project team leader
Full Lean Six Sigma training
Skilled in tools/techniques
Change leaders
Green BeltGreen Belt
Has a “regular” job
DMAIC trained - Applies to daily work
Executes projects relating to role
Know most tools/techniques
Master Black Belt
Leads overall program within a business unit
Mastery of tools and techniques
Teach, train & mentor Lean Six Sigma
Change leaders
Process Owner
Day-to-day process responsibility
Support and assist project teams
Own implementation and acceptance
Maintain the improvement
Finance
Assist in opportuntiy definition
Supports project teams
Validate impacts
Ongoing audit and control
Six Sigma Roles

35. Keys to Success
• Leadership Engagement and Integration
• The Right People - Not Just the “Lean Six Sigma” Experts
• Being “smart” isn’t the same as being “effective”
• Simplify…Adapt…and Use What Works
It’s Never Too Late to Get Smarter...
• Balance Leadership and Technical skills
There is no one-size-fits-allThere is no one-size-fits-all

36. Motorola ROI
1987-1994
• Reduced in-process defect levels by a factor of 200.
• Reduced manufacturing costs by $1.4 billion.
• Increased employee production on a dollar basis by 126%.
• Increased stockholders share value fourfold.
AlliedSignal ROI
1992-1996
• $1.4 Billion cost reduction.
• 14% growth per quarter.
• 520% price/share growth.
• Reduced new product introduction time by 16%.
• 24% bill/cycle reduction.
Six Sigma Gain

37. General Electric ROI
1995-1998
• Company wide savings of over $1 Billion.
• Estimated annual savings to be $6.6 Billion by the year 2000.