1. DEFINING SIX SIGMA
What isSigma?
Sigmais a Greeksymbol representedby"σ".
The term “sigma”indicates the mean(average) of anyprocessorprocedure.
Sigmacapabilitymeasuresthe capabilityof the processtoproduce zero-defectoutputs.
A defectis anythingthatresultsincustomerdissatisfaction.
What isSix Sigma?
Why dowe call Six Sigmaas Six Sigmaandnot Four or Five Sigmaor EightAlpha(anotherGreek
symbol)?Sigmaisastatistical termthat measuresprocessdeviationfromprocessmeanor target.
The figure of six was arrivedstatisticallybylookingatthe currentaverage maturityof most business
enterprises.
It isa systematicmethodforprocessandproductimprovement
It measuresperformance variation.
It evaluatesperformance quality
It isa standardof excellence
It enablesorganizationstodelivernearlyperfectproductsandservices
The philosophybehindSix Sigmais‘asperfectas practicallypossible’
It isa methodologyandasymbol of quality
Historical Background
Startedby Motorolain 1987 byBill SmithandusedinMotorola’s manufacturingdivision
Made famousbyJack Welchwhenhe made it successful atGeneral Electricin1995
Today itis usedinmanyindustrial sectors
Why Six Sigma?
The goal of Six Sigmais to increase profitsbyeliminatingvariability,defectsandwaste that
undermine customerloyalty.
The importance to understandthe needof Six Sigmaisbasedonthe currentbusinessenvironment
whichnowdemandsandrewardsinnovationmore thaneverbefore due to:
CustomerExpectations
Technological Change
Global Competition
Market Fragmentation
2. Whento Use Six Sigma
Its usage dependsonthe type of business.
If there are processesthatgenerate alotof negative customerfeedback,whetherthat
customerisinternal orexternal
The componentsof Six Sigmashouldbe consideredasa meansto studyand rectifythe
problem.
SIX SIGMAMETHODOLOGIES
You can't expecttosignificantlyreduce costsandincrease salesusingSix Sigmawithoutinvestingin
training,organizationalinfrastructure andculture evolution.
BusinessProcessManagementSystem (BPMS)
DMADV - CreatingnewprocesswhichwillperformatSix Sigma
DMAIC - Six SigmaImprovementMethodology
BusinessProcessManagementSystem(BPMS)
One way toimprove businessperformanceiscombiningbusinessprocessmanagement
(BPM) strategieswithSix Sigmastrategies.
BPMstrategiesemphasize processimprovementsandautomationtodrive performance,
while Six Sigmausesstatistical analysistodrive qualityimprovements.
The two strategiesare notmutuallyexclusive,however,andsome savvycompanieshave
discoveredthatcombiningBPMandSix Sigmacan create dramatic results.
DMADV
The applicationof DMADV is usedwhenaclientor customerrequiresproductimprovement,
adjustment,orthe creationof an entirelynew productorservice.
The applicationof these methods isaimedatcreatingahigh-qualityproductkeepinginmind
customerrequirementsateverystage of the game.
3. The Acronymstands for:
Define the project
Measure the opportunity
Analyze the processoptions
Designthe process
Verifythe performance
The applicationsof these methodologiesare generallyrolledoutoverthe course of manymonths,or
evenyears.
The end resultisa productor service thatis completelyalignedwithcustomerexpectations,wants
and needs.
DMAIC PROCESS
A logical andstructuredapproachto problemsolvingandprocessimprovement.
An iterative process(continuousimprovement)
A qualitytool whichfocusonchange managementstyle.
The AcronymStands for:
Define processgoalsintermsof keycritical parameters(i.e.critical toqualityorcritical to
production) onthe basisof customerrequirementsorVoice Of Customer(VOC)
Measure the current processperformance incontextof goals
Analyze the current scenariointermsof causesof variationsanddefects
Improve the processbysystematicallyreducingvariationandeliminatingdefects
Control future performance of the process
DMAIC isa basiccomponentof the Six Sigmamethodology- awayto improve workprocessesby
eliminatingdefects.
4. SIX SIGMAORGANISATIONS
The Six SigmaBelts(Green,Black,andMaster Black) denote the differentlevelsanindividualcan
achieve inSix Sigma,abusinessmanagementapproachthatwasat the onsetadvancedby
Motorola'smanufacturingdivision.
It has itsbasison attentive andmeticulousplanningandconstantdeterminedapplicationthatcan
be made exclusive indealingwithissuesthatconcerna businesssoasto improve onthe
marketabilityof theirproductsandservices.
Master Black Beltis a personwhoisat the highestlevel of expertise onthe subject.
Theyare fullydevotedtothe processandhave no otherjobresponsibilitiesoutside the
methodology.
Theyare involvedineveryaspectof trainingandmentoringof all of the lowerbeltranks.
A certified BlackBeltexhibitsteamleadership,understandsteamdynamics,andassigns
theirteammemberswithrolesandresponsibilities.
Theyhave a complete understandingof the DMAICmodel inaccordance withthe Six Sigma
principles,have abasicknowledge of leanenterprise concepts,andtheycanquicklyidentify
"non-value-added"activities.
5. Black Beltsprimarilyfocusonprojectexecution,whereasChampionsandMasterBlackBelts
focuson identifyingprojectsandfunctionsforSix Sigma.
GreenBelthas emphasisonthe DMAIC(Define,Measure,Analyze,ImproveandControl)
model.
Six SigmaGreenBeltcertificationhelpsthe employee serve asatrainedteammember
withinhisorher function-specificareaof the organization.
Thisfocusallowsthe GreenBeltto workon small,carefullydefinedSix Sigmaprojects,
requiringlessthanaBlack Belt'sfull-time commitmenttoSix Sigmathroughoutthe
organization.
A YellowBelttypicallyhasabasic knowledgeof Six Sigma,butdoesnotleadprojectson
theirown,as doesa GreenBeltor Black Belt.
It isoftenresponsible forthe developmentof processmapstosupportSix Sigmaprojects.
A YellowBeltparticipatesasa core team memberorsubjectmatterexpert(SME) ona
projector projects.
In addition,YellowBeltsmayoftenbe responsibleforrunningsmallerprocessimprovement
projectsusingthe PDCA (Plan,Do,Check,Act) methodology.
These smallerYellowBeltprojectsoftengetescalatedtothe GreenBeltor BlackBeltlevel
where a DMAICmethodologyisusedto maximizecostsavingsusingStatisticalProcess
Control.
TOOLS AND TECHNIQUES USED IN SIX SIGMA
SevenQualityTools
CheckSheets(collectdatato make improvements)
ParetoCharts( define problemandfrequency)
Cause and effectdiagram(Identifypossiblecausestosolve problem)
Histogram(Bar charts of accumulateddata to evaluate distributionof data)
Scatter diagram(plotsmanydatapointsand patternbetweentwovariables)
FlowChart (Identifyunwantedsteps)
Control charts (Control limitsaroundmeanvalue)
6. BENEFITS OF SIX SIGMA
Generatessustainedsuccess
Setsperformance goal foreveryone
Enhancesvalue forcustomers
Acceleratesrate of improvement
Promoteslearningacrossboundaries
Executesstrategicchange
CONCLUSION
To sum up, Six Sigmais methodologyusedfor:
Aligningkeybusinessprocessestoachieve those requirements.
Utilizingrigorousdataanalysistominimize datavariationinthose processes.
Drivingrapidandsustainable improvementtobusinessprocesses.