Six Sigma is a data-driven methodology for improving processes by reducing variability and defects. It was developed by Motorola in the 1980s and aims for near-perfect process outputs. The objectives of Six Sigma are to understand and reduce variation in processes. It uses various quality tools like cause-and-effect diagrams, control charts, and value stream mapping. A key benefit is increased business performance through stable and consistent processes. Establishing a no-blame culture is important for Six Sigma, with a focus on accountability, teamwork, and continuous improvement.
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Six Sigma: Improving Business Processes
1. SIX SIGMA
• Business Processes
• Overview
• History
• Benefits
• Objectives
• Value Stream Mapping(VSM)
• Culture
2. Business Processes
“A business process is an activity or set of activities that can accomplish a specific organizational
goal. Business processes should have purposeful goals, be as specific as possible and have
consistent outcomes.”
• Most business processes will produce outputs that are defect free.
• However every business process will produce some
number of outputs that are either considered to have defects or be defective.
• When a part contains a defect or is considered
defective it has deviated from a standard which is tracked in six sigma.
3. Six Sigma - Overview
Six Sigma is a disciplined and quantitative approach involving setting up a system
and process for the improvement of defined metrics in manufacturing, service,
or financial processes.
It’s a improvement system for existing process falling below specification and looking
for incremental improvements.
Six Sigma is a management methodology which allows companies to use data to
eliminate defects in any process.
Six Sigma is a strategy that gives organizations a structured means to improve
business processes and solve problems.
4. What does the term mean?
• Six Sigma defined technically refers to achieving a performance level that
is 6σ rated, in other words producing no more than 3.4 defects per million
opportunities.
• Sigma – Used to denote variance from a mean
oran average. Literally translated means “Standard Deviation.”
5. Six Sigma : History
“Bill Smith, Father of Six Sigma”
In the early and mid-1980s with Chairman Bob Galvin at the helm, Motorola engineers
decided that the traditional quality levels — measuring defects in thousands of
opportunities – didn’t provide enough granularity. Instead, they wanted to measure the
defects per million opportunities. Motorola developed this new standard and created the
methodology and needed cultural change associated with it. Six Sigma helped Motorola
realize powerful bottom-line results in their organization – in fact, they documented more
than $16 Billion in savings as a result of our Six Sigma efforts.
Six Sigma has evolved over time. It’s more than just a quality system like TQM or
ISO. It’s a way of doing business. As Geoff Tennant describes in his book Six
Sigma: SPC and TQM in Manufacturing and Services: “Six Sigma is many things,
and it would perhaps be easier to list all the things that Six Sigma quality is not.
Six Sigma can be seen as: a vision; a philosophy; a symbol; a metric; a goal; a
methodology.” We couldn’t agree more.
6. Six Sigma - Benefits
Increased Business Performance
Reduced Defects
Reduced Variation
Improved use of Resources
Stable and Consistent Processes
Meet Customer Demands
More Market Share and Capital Growth
7. Six Sigma : Objective(s)
Skills to predict, prevent and control defects in a
process.
Skills to understanding of the elements of waste
in a process.
Skills to achieve sustainable quality
improvement
Skills to understand tools of process discovery.
Skills to understand of variation in processes.
Skills to understand how to reduce variation in
processes and achieve predicted outcomes.
Skills to identify, measure and analyze process
potential.
8. Six Sigma : Quality Tools
Mainly 7 Tools that are used for quality improvements in any business process
Cause and Effect Diagram
Check Sheet
Flow Chart
Histogram
Pareto Diagram
Control Chart
Scatter Diagram
9. Six Sigma : Tools
Tool Description
Cause-and-effect diagram Identifies many possible causes for an effect or problem and sorts ideas
into useful categories.
Check sheet A structured, prepared form for collecting and analyzing data; a generic
tool that can be adapted for a wide variety of purposes.
Control charts Graphs used to study how a process changes over time. Comparing current
data to historical control limits leads to conclusions about whether the
process variation is consistent (in control) or is unpredictable (out of
control, affected by special causes of variation).
Histogram The most commonly used graph for showing frequency distributions, or how
often each different value in a set of data occurs.
Pareto chart Shows on a bar graph which factors are more significant.
Scatter diagram Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
Stratification A technique that separates data gathered from a variety of sources so that
patterns can be seen (some lists replace “stratification” with “flowchart”
or “run chart”).
10. Six Sigma : Measuring a Process via VSM
In Six Sigma Process is measured via “VALUE STREAM Mapping”
Verify or define priorities and team
Accept or define charter
Look at the waste
Understand the current state
Shape the future state
Target the ideal state
Reveal Action Plan
Establish a value stream coach
Announce and share
Map everything
11. Six Sigma : Benefits of VSM
Shows the entire flow of the value stream as it happens.
Makes value and non value in a process visible.
Helps plan improvements/Kaizen events.
A value stream map shows material and information flows
Helps us see the flow of activities from customer perspective.
12. Six Sigma : Culture
Lean Six Sigma Culture focusses on Process over People where there is NO BLAME GAME
13. Six Sigma : Culture
Tips for establishing a no blame game…..
Create Positive Situations : Create positive situations for workers to think and
feel empowered.
Minimize Competition : Minimize the competition aspect of roles.
Build a team culture.
Define Accountability : Clearly define responsibilities and accountability.
Train Employees : Develop and train employees regularly.
14. Six Sigma : Culture : How to start….
Develop and Follow Standard Work
Work Productively ; Minimize Waste
Handle or Communicate Abnormalities
Participate in Process Improvement
Update/Train Work Standards
Respect the Customer – Act on Problems