What is Six Sigma ?A set of advanced tools/ techniques and methodologies which can be used to bringin rapid and breakthrough improvement in performance and/ orA business strategy used for bringing in enhanced customer focus in theorganization , increase fact based decision making and create an environment for“tangible improvement”
What is Six Sigma … in a nutshell…… ?High A Management system Start with the CTQ Dedicated Resources Business Impact Data Driven Decisions A process Improvement Methodology DMAIC A Metric 3.4 DPMOLow Literal Philosophical Definition Definition
Six Sigma Metric The term “Sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure For a business or manufacturing process, the Sigma level is a metric that indicates how well that process is performing. The higher the sigma level , the better/ sigma level measures the capability of the process to perform defect- free work. A defect is anything that results in customer dissatisfaction.As defects The SigmaGo down…. D σ Level goes up
DMAIC 1.0 2.0 3.0 4.0 5.0 Define Measure Analyze Improve Control Opportunities Performance Opportunity Performance PerformanceDefine the Measure the Improve the process Control the improved Analyze and by working Process performanceProject, process determine on the validated To ensure sustainableAssignment, to determine the root causes root causes resultsgoals and Current performance of the defectscustomer(internal Andexternal)deliverables An Improvement Methodology
Strategic Six Sigma – form strategy to actionDefine key Business Margin Earnings per Revenue GrowthPerformance Targets Improvement share Growth New Service Marketing Supply Brand ManagementArticulate Core Enterprise Development Effectiveness Reliability Market Share GrowthIssues & strategies Product Manufacturing Developing Reliability Productivity People Identify Strategic Grow Revenues Improve Yield Reduce Cycle time Develop & produce Improvement in key Markets by of product “X” of Key Process Product “Z” by YE’06 goals 20% by YE’s05 By 5% YE’05 “Y” 10% by YE’05Identify & Prioritize Specific Improvement ProjectsCreate active projectsLed by Black Belts/Green belts “Just Do It” “Lean Projects” “DMAIC Projects” “DFSS Projects”
Six Sigma is different from other traditional quality and processimprovement methodologies The extensive focus on customer requirement The direct link to business strategy and financial results The required commitment of top leadership up-front and continuously through years of implementation Each project delivers bottom line results in a short time The disciplined improvement methodology based on measurement and analysis Full-time Six Sigma team leaders who are extensively trained in statistical thinking as well as team and project skills The integration of Six Sigma thinking into the business infrastructure through incentives and rewards
Benefits of Six Sigma To Six sigma team Opportunity to hone skills in diverse areas of problem solving Knowledge on statistical tools, analytical methods, communications & leadership skill To Organization Rapid improvement in performance Enhanced customer focus Cultural change and a employee base dedicated to tangible performance improvement. Saving in bottom line To Customer Quality improvement, cost reduction ,
The Players in Six Sigma Focuses normally on one CTQ or Project Project goal. Sponsors Duration normally 3 – 6 month- can Training & Project guidance by extend in special cases. Central Quality Champions Team Executed by task force time team of 3 to 7 members (ideally 5). The project is deemed to be completed once appreciate improvement is Registered and sustenance is ensures Black Belts by monitoring over a reasonable period / Green Belts of time. Thereafter the CTQ is monitored and Yellow reported on on-going basis Belts e e cor Th eamFootnote: Six Sigma expertise hierarchy has no tMapping with organization hierarchy.
Sigma Improvement Process: DMAIC Y = f (X) 1. Define : Customer expectations of the process ? 2. Measure : What is the frequency of defects ? 3. Analyze : Why, when, and where do defects occur ? 4. Improve : How can we fix the process ? 5. Control : How can we make the process stay fixed ?
1.0 Define Opportunities 1.0 2.0 3.0 4.0 5.0 Define Measure Analyze Improve Control Performance Opportunity Performance Performance OpportunitiesObjective Main Activities Potential Tools and Techniques Key Deliverables• To identify and/or • Validate/Identify •VOC - Critical validate the Business Opportunity Customer improvement • Validate/Develop Team Requirements opportunity Charter• Develop the business • Identify and Map – CTQ processes Processes •Team Charter• Define critical • Identify Quick Win and customer Refine Process •Process Maps requirements, • Translate VOC into• Prepare themselves CCRs •Quick Win to be an effective • Develop Team Opportunities project team Guidelines & Ground •Project Plan• Develop a Project Rules Plan to Manage the • Develop •Team Project Communication and Resources Change Management Plan •Communicatio ns Plan
2.0 Measure Performance 1.0 2.0 3.0 4.0 5.0 Define Analyze Improve ControlOpportunities Measure Opportunity Performance Performance PerformanceObjective Main Activities Potential Tools and Techniques Key Deliverables•To identify critical measures that are •Identify Input, •Input, Process necessary to meet Process and and Output CCR’s•Develop a methodology Output Indicators to effectively collect data to measure Indicators •Operational process performance • Develop Operational Definitions•Understand the elements of the six Definition & Measurement Plan •Data Collection sigma calculation • Plot and Analyze Data Formats and•Establish baseline Plans sigma • Determine if Special•Understand the purpose Cause Exists •Baseline Six and outputs of Measure •Determine/Target Sigma Sigma Performance Performance • Collect Other Baseline Performance Data • Benchmarking
3.0 Analyze opportunity 1.0 2.0 3.0 4.0 5.0 Define Measure Improve ControlOpportunities Performance Analyze Performance Performance OpportunityObjective Main Activities Potential Tools and Techniques Key Deliverables•To stratify and analyze the •FMEA and opportunity •Stratify Process action plan•Identify a specific •Stratify Data & problem•Define an easily Identify Specific •Data Analysis understood problem Problem •Potential Root statement •Develop Problem Causes•To identify and Statement validate the root causes •Identify Root Causes •Validated Root •Design Root Cause Causes Verification Analysis •Validate Root Causes •Enhance Team Creativity & Prevent Group-Think
4.0 Improve Performance 1.0 2.0 3.0 4.0 5.0 Define Measure Analyze Control Opportunities Performance Opportunity Improve Performance PerformanceObjective Main Activities Potential Tools and Techniques Key Deliverables •Solutions• To identify, evaluate, and select the right •Generate •To Be Process improvement Solution Ideas Maps and solutions• Develop a change •Determine Solution Documentation Impacts: Benefits management plan •Implementatio •Evaluate and n Milestones Select •Improvement Solutions Impacts and •Develop Process Benefits Maps & High Level • Pilot plan and Plan pilot results •Run pilot and •Projected test results Process •Communicate performance Solutions to all (Sigma) Stakeholders
5.0 control Performance 1.0 2.0 3.0 4.0 5.0 Define Measure Analyze ImproveOpportunities Performance Opportunity Performance Control Performance Objective Main Activities Potential Tools and Techniques Key Deliverables •To understand the importance of •Verify planning and sustainability of the •Improved executing against the results Bottom Line plan • Identify if additional impact •Determine the solutions are necessary to approach to be taken to assure achieve Goal •Process Control achievement of the • Identify and Develop Systems & Plan targeted results Replication & •To understand how to Standardization •Standards and disseminate lessons Opportunities Procedures learned •Integrate and •Identify replication •Training Manage Solutions 1 and standardization •Change 2 3 in Daily 4 opportunities/ 5 Implementation 6 •Processes, and 7 Work Processes 8 9 develop related Plans plans. • Integrate Lessons Learned • Develop Communications •Replication Plans Opportunities • Transition Design • Develop Process Owner •Process Owner Transition Plan Transition Plan • Rewards and Recognition