SIXSIGMA
An IntroductionAn Introduction
LSSU - IABLSSU - IAB
30 January 200230 January 2002
creating value for our custome...
SIXSIGMA
What is it?What is it?
creating value for our customers
SIXSIGMA
““Six Sigma”Six Sigma”: What is it?: What is it?
““A comprehensive and flexible system forA comprehensive and fle...
SIXSIGMA
Six SigmaSix Sigma: What is it?: What is it?
Specifically –
• Customer-focused, fact and data-based
decision maki...
SIXSIGMA
• AA cultureculture that rapidly drives our key activities* tothat rapidly drives our key activities* to
be defec...
SIXSIGMA
Sigma - the lower case Greek letter that
denotes a statistical unit of measurement
used to define the standard de...
SIXSIGMA
Cure Time of Silicone Sealant
NumberofSamples
Lower Specification Limit
(LSL)
Upper Specification Limit
(USL)
SIXSIGMA
Upper Specification Limit
(USL)
Lower Specification Limit
(LSL)
x
x
Lower Specification Limit
(LSL)
Upper Specifi...
SIXSIGMA
Upper Specification Limit
(USL)
Lower Specification Limit
(LSL)
x
SIXSIGMA
Putting Six Sigma in Perspective!Putting Six Sigma in Perspective!
creating value for our customers
If you played...
SIXSIGMA
Putting Six Sigma in Perspective!Putting Six Sigma in Perspective!
• 20,000 lost articles of mail20,000 lost arti...
SIXSIGMA
Putting Six Sigma in Perspective!Putting Six Sigma in Perspective!
• Airline passenger safety ~ 8.2Airline passen...
SIXSIGMA
Impact of Six SigmaImpact of Six Sigma
The Cost of Poor Quality
Sigma Level Defects per Million Opportunities Cos...
SIXSIGMA
• 1987 Motorola introduced Quality Program now known as1987 Motorola introduced Quality Program now known as
Six ...
SIXSIGMA
Who else is doing Six Sigma?Who else is doing Six Sigma?
• Avery DennisonAvery Dennison
• DowDow
• DuPontDuPont
•...
SIXSIGMA
How does Six Sigma work?How does Six Sigma work?
Why is it different?Why is it different?
 Top down, executive l...
SIXSIGMA
What is the “Methodology”?What is the “Methodology”?
DDefineefine
MMeasureeasure
AAnalyzenalyze
IImprovemprove
CC...
SIXSIGMA
• What are the “The Tools”?What are the “The Tools”?
Six Sigma is aSix Sigma is a disciplinediscipline using thes...
SIXSIGMA
Who are the other “Key Players”?Who are the other “Key Players”?
• Senior ChampionSenior Champion – Owns Six Sigm...
SIXSIGMA
Summary “take aways”Summary “take aways”
Customer focused….Driven by the Voice of the Customer.Customer focused…...
SIXSIGMAcreating value for our customers
References……
• The Six Sigma Way (ISBN 0-07-135806-4) by Pande,
Neuman, and Cavan...
SIXSIGMAcreating value for our customers
References……
Also...you might consider:
•www.6-sigma.com
•www.sixsigma.co.uk
•www...
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Six sigma

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  • Sustained performance!!! Customer needs!!
  •  Notes:None
  • We are currently operating at between 3.0 – 3.5 Sigma.
    Given this information, how satisfied are we at operating at this level?
  • We are currently operating at between 3.0 – 3.5 Sigma.
    Given this information, how satisfied are we at operating at this level?
  • Airline fatalities are at 6.2 sigma.
  • Six Sigma is 20,000 times better than 3 sigma.
  • Key customers and key competitors……and shareholders.
  • Six sigma

    1. 1. SIXSIGMA An IntroductionAn Introduction LSSU - IABLSSU - IAB 30 January 200230 January 2002 creating value for our customers creating value for our customers
    2. 2. SIXSIGMA What is it?What is it? creating value for our customers
    3. 3. SIXSIGMA ““Six Sigma”Six Sigma”: What is it?: What is it? ““A comprehensive and flexible system forA comprehensive and flexible system for achieving, sustaining and maximizing businessachieving, sustaining and maximizing business success. Six Sigma is uniquely driven by closesuccess. Six Sigma is uniquely driven by close understanding of customer needs, disciplined useunderstanding of customer needs, disciplined use of facts, data and statistical analysis, and diligentof facts, data and statistical analysis, and diligent attention to managing, improving and reinventingattention to managing, improving and reinventing business processes.”business processes.” -- The Six Sigma Way, by Pande, Newman and Cavanaugh creating value for our customers
    4. 4. SIXSIGMA Six SigmaSix Sigma: What is it?: What is it? Specifically – • Customer-focused, fact and data-based decision making driving out waste and defects which creates value for our customers. It is just NOT Supply Chain or Manufacturing creating value for our customers
    5. 5. SIXSIGMA • AA cultureculture that rapidly drives our key activities* tothat rapidly drives our key activities* to be defect free 999,997 times out of 1,000,000.be defect free 999,997 times out of 1,000,000. • < 3.4 defects per million opportunities.< 3.4 defects per million opportunities. * Valued by or critical to our customer. Six SigmaSix Sigma: What is it?: What is it? creating value for our customers
    6. 6. SIXSIGMA Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data. What is Sigma?What is Sigma? σ
    7. 7. SIXSIGMA Cure Time of Silicone Sealant NumberofSamples Lower Specification Limit (LSL) Upper Specification Limit (USL)
    8. 8. SIXSIGMA Upper Specification Limit (USL) Lower Specification Limit (LSL) x x Lower Specification Limit (LSL) Upper Specification Limit (USL)
    9. 9. SIXSIGMA Upper Specification Limit (USL) Lower Specification Limit (LSL) x
    10. 10. SIXSIGMA Putting Six Sigma in Perspective!Putting Six Sigma in Perspective! creating value for our customers If you played 100 rounds of golf per year, and played at: • 2 sigma - you'd miss 6 putts per round • 3 sigma - you'd miss 1 putt per round • 4 sigma - you'd miss 1 putt every 9 rounds • 5 sigma - you'd miss 1 putt every 2.33 years • 6 sigma - you'd miss 1 putt every 163 years!
    11. 11. SIXSIGMA Putting Six Sigma in Perspective!Putting Six Sigma in Perspective! • 20,000 lost articles of mail20,000 lost articles of mail every hour.every hour. • Power outages seven hoursPower outages seven hours each month.each month. .. • 5,000 incorrect surgical procedures5,000 incorrect surgical procedures each weekeach week for a major healthcare provider.for a major healthcare provider. • Unsafe drinking water nine minutesUnsafe drinking water nine minutes every day.every day. • Two long / short airport landingsTwo long / short airport landings every dayevery day.. FourFour SigmaSigma quality (quality (6210 DPMO)6210 DPMO) means…means… 99.370% right…but…..99.370% right…but….. creating value for our customers
    12. 12. SIXSIGMA Putting Six Sigma in Perspective!Putting Six Sigma in Perspective! • Airline passenger safety ~ 8.2Airline passenger safety ~ 8.2 σσ – Currently at 2.6 DPMO (incidents per millionCurrently at 2.6 DPMO (incidents per million takeoffs and landings).takeoffs and landings). • Airline baggage handling ~ 3Airline baggage handling ~ 3 σ.σ. SixSix SigmaSigma quality (quality (< 3.4 DPMO).< 3.4 DPMO). creating value for our customers
    13. 13. SIXSIGMA Impact of Six SigmaImpact of Six Sigma The Cost of Poor Quality Sigma Level Defects per Million Opportunities Cost of Poor Quality 2 398,537 (Noncompetitive Companies) Not applicable 3 66,807 25-40% of sales 4 6,210 (Industry Average) 15-25% of sales 5 233 5-15% of sales 6 3.4 (World Class) < 1% of sales Each sigma shift provides a net income improvement which equals 10% of sales. Six Sigma, by Harry and Schroeder, p. 17 creating value for our customers
    14. 14. SIXSIGMA • 1987 Motorola introduced Quality Program now known as1987 Motorola introduced Quality Program now known as Six SigmaSix Sigma.. • Allied Signal picked it up.Allied Signal picked it up. • G.E. Success….G.E. Success…. – Capital ServicesCapital Services – Medical Systems (CAT Scan)Medical Systems (CAT Scan) • Dozens of others…...Dozens of others…... – Learned the hLearned the highestighest qqualityuality pproducer is also theroducer is also the llowestowest ccostost pproducer.roducer. – Learned customer loyaltyLearned customer loyalty of a Six Sigma company isof a Six Sigma company is ~3X~3X thatthat of theof the averageaverage companycompany.. It all began at…..Motorola…not G.E.It all began at…..Motorola…not G.E. creating value for our customers
    15. 15. SIXSIGMA Who else is doing Six Sigma?Who else is doing Six Sigma? • Avery DennisonAvery Dennison • DowDow • DuPontDuPont • FoxboroFoxboro • SonySony • Deere & Co.Deere & Co. (John Deere)(John Deere) • DelphiDelphi • Allied SignalAllied Signal • FordFord • Johnson & JohnsonJohnson & Johnson • CaterpillarCaterpillar • Lockheed MartinLockheed Martin • IBMIBM • CitiGroupCitiGroup (Visa/MasterCard)(Visa/MasterCard) • GG..EE.. • J.P. MorganJ.P. Morgan • ServiceMasterServiceMaster creating value for our customers
    16. 16. SIXSIGMA How does Six Sigma work?How does Six Sigma work? Why is it different?Why is it different?  Top down, executive led.  Customer focused (VOC).  Project oriented • Led by “Black Belts”. • 3-5 months long. • Ave. yearly impact $150-250K/project. • Consistent methodology. creating value for our customers Process Controls X4, X5, X6… X1 X2 X3 Output Y Critical to Customer Six Sigma
    17. 17. SIXSIGMA What is the “Methodology”?What is the “Methodology”? DDefineefine MMeasureeasure AAnalyzenalyze IImprovemprove CControlontrol D M A I C creating value for our customers
    18. 18. SIXSIGMA • What are the “The Tools”?What are the “The Tools”? Six Sigma is aSix Sigma is a disciplinediscipline using these tools:using these tools: – 7 Tools of Quality7 Tools of Quality – Advanced analysis tools (Design of Experiment,Advanced analysis tools (Design of Experiment, Linear Regression, etc.)Linear Regression, etc.) – Re-engineeringRe-engineering – Lean manufacturingLean manufacturing – Supply chain improvementsSupply chain improvements – Design for Six Sigma (DFSS)Design for Six Sigma (DFSS) – For development of new products, new services,For development of new products, new services, new processes, and new workflows.new processes, and new workflows. creating value for our customers
    19. 19. SIXSIGMA Who are the other “Key Players”?Who are the other “Key Players”? • Senior ChampionSenior Champion – Owns Six Sigma for the Business.– Owns Six Sigma for the Business. • ChampionChampion – Identifies– Identifies and resourcesand resources projectprojects.s. • MasterMaster BBlacklack BBeltelt – Serves as coach– Serves as coach to the Black Beltto the Black Belt and project team.and project team. • BlackBlack BBeltelt – Leads the project team, full time– Leads the project team, full time.. • GreenGreen BBeltselts – Team members (part-time) from the– Team members (part-time) from the organization sponsoring the projectorganization sponsoring the project • Project SponsorsProject Sponsors – Team leaders.– Team leaders. • Process OwnersProcess Owners – Owns the process / workflow.– Owns the process / workflow. • Executive Six Sigma Steering CommitteeExecutive Six Sigma Steering Committee – Oversees– Oversees progress, resolves issues, ensures success enterprise-progress, resolves issues, ensures success enterprise- wide.wide. creating value for our customers
    20. 20. SIXSIGMA Summary “take aways”Summary “take aways” Customer focused….Driven by the Voice of the Customer.Customer focused….Driven by the Voice of the Customer. Strong top management leadership, commitment, andStrong top management leadership, commitment, and involvement. Very Key!involvement. Very Key! Project orientation with measurable financial results.Project orientation with measurable financial results. Consistent methodology for all work.Consistent methodology for all work. Time driven.Time driven. Time driven….more accountable.Time driven….more accountable. • Six Sigma - is aSix Sigma - is a disciplinediscipline not an “add on” or “program”.not an “add on” or “program”. -- NOTNOT a supply chain/manufacturing activity.a supply chain/manufacturing activity. -- No new toolsNo new tools….new ways to apply them!….new ways to apply them! • GoalsGoals – Value for the Customer (i.e. no defects or waste & low cost)Value for the Customer (i.e. no defects or waste & low cost) – Improved productivity = profitability.Improved productivity = profitability. – Customer success and satisfaction + Profitability = GrowthCustomer success and satisfaction + Profitability = Growth creating value for our customers
    21. 21. SIXSIGMAcreating value for our customers References…… • The Six Sigma Way (ISBN 0-07-135806-4) by Pande, Neuman, and Cavanaugh • The Power of Six Sigma (ISBN 0-7931-4434-5) by Subir Chowdhury • Six Sigma (ISBN 0-385-49437-8) by Harry and Schroeder. • The Six Sigma Handbook (ISBN 0-07-137233-4) by Pyzdek is more technical and becoming the 'handbook' for Black Belts. You can get them through Amazon, http://www.amazon.com/ in a couple of days.
    22. 22. SIXSIGMAcreating value for our customers References…… Also...you might consider: •www.6-sigma.com •www.sixsigma.co.uk •www.sixsigmasystems.com •www.isixsigma.com
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