Enabling Sustained Business Excellence
Part 2 of 8 - Perspectives of Lean Six Sigma
Lean Six Sigma Practice @ KINDUZ
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Historical Perspective
1979:
Motorola 1995: Jack 2000: GE
Starts Six Welch Saves ~$2
Initiates Six Billion
Sigma
Initiative Sigma in GE Annually
1986: 1998: Allied
Motorola Signal
Saves ~$16 Saves ~$1.2
Billion Billion
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Mean vs. Variation
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Statistical Perspective
Mean = 20
(s)= 0.5
(Lower Specification) (Upper Specification)
(6 s) (6 s)
23
17
20
A defect is any value that falls outside Customer Specifications
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Quantitative Perspective
99.99966% Right (6 Sigma)
99% Right (3.8 Sigma)
No electricity for 1 hour every 34 years
No electricity for 7 hours per month
5,000 incorrect operations per week 1.7 incorrect operations per week
68 wrong prescriptions per year
20,000 wrong prescriptions per year
Defects per Million
σ
Opportunities
1 697,672.15
2 308,770.21
3 66,810.63
4 6,209.70
5 232.67
6 3.40
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Quantitative Perspective
Airline fatality rate 0.52 PPM
Sigma (s)
World Class, Six Sigma 3.4 PPM
1:1,000,000
Five Sigma 233 PPM
Motorola 1990
Four Sigma 6,209 PPM
Hospital fatality rate due to mistakes
Restaurant bills
1:100 Doctor prescriptions
Payroll processing
Airline baggage handling
Three Sigma 66,810 PPM
Two Sigma
308,770 PPM
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Customers Perspective
Six Sigma Starts and Ends with Customers
What is my
customers
view of the
process?
Are my What do the
customers customers
referring and expect out of
the process?
buying again?
CUSTOMERS
Is my How do my
customer customers
satisfaction measure the
process?
increasing?
What is my
customers
definition of
a defect?
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Operational Perspective
Control
Define
Improve
Measure
Analyze
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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Contact
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Email: services@kinduz.com
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Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
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