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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
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.
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.
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.
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)
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.

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SIX SIGMA

  • 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.