The document discusses Six Sigma, which originated at Motorola to reduce defects to 3.4 parts per million. It aims to achieve business success through a flexible system focusing on customers, data-driven management, process improvement, proactive collaboration across boundaries, and driving for perfection. The document outlines Six Sigma's themes and phases of the DMAIC process improvement cycle to understand problem solving strategies in production and supply chain management.

1. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Background and Meaning of Six Sigma
Prof. Holly Ott
Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management
1
Holly Ott

2. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Learning Objectives
2
• Understand the origins of the Motorola Six Sigma methodology.
• List the six main themes of Six Sigma
• List the phases of the DMAIC process improvement cycle
• Understand the Six Sigma Roadmap and the problem solving strategy
Y(Critical-to-Quality Parameters) = f(key X-influencing parameters: x1,
x2, x3)
Holly Ott

3. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
The Six Sigma System
3
“The Six Sigma system is a comprehensive and flexible system for
achieving, sustaining and maximizing business success.”
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.
Holly Ott

4. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Six Sigma – Origins and Development
4
• The term “Six Sigma” was coined by Bill Smith at Motorola.
• Dr. Mikel Harry: Motorola’s Six sigma Research Institute.
• 1987 – Motorola officially launched its Six Sigma program.
• Achieve a near-perfect, 6σ, quality – the defect rate in the production of
each component will not be more than 3.4 parts per million.
• 1988 – Motorola won the Malcolm Baldridge Award for Business
Excellence
• Adoption by General Electric and Allied Signal (Honeywell)
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

5. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
5
©2012 from "A First Course in Quality
Engineering: Integrating Statistical and
Management Methods of Quality" by K.S.
Krishnamoorthi. Reproduced by
permission of Taylor and Francis Group,
LLC, a division of Informa plc.
Motorola's Six
Sigma Capability
Holly Ott

6. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Six Sigma Terminology
6
• The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.
• For a process, the sigma capability (z-value) is a metric that indicates how
well that process is performing.
• The higher the sigma capability, the better the process. Sigma capability
measures the capability of the process to produce defect-free outputs.
• A defect occurs during any process step when the outcome of the process
step is not the expected outcome.
• The expected outcome means that the conditions of the outcome are
specified in advance.
Holly Ott

7. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
7
• Focus on the Customer
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott
All images sed with permission from Kopschitz Kerzen
and the European Candle Association.

8. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
8
• Focus on the Customer
• Data and Fact-Driven Management
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

9. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
9
• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

10. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
10
• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

11. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
11
• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management
• Boundaryless Collaboration
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

12. TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München
Themes of Six Sigma
12
• Focus on the Customer
• Data and Fact-Driven Management
• Process Focus
• Proactive Management
• Boundaryless Collaboration
• Drive for Perfection (with tolerance for failure)
©2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Pande, P. S., R. P. Neuman, and R. L. Cavanagh. 2000.
The Six Sigma Way. New York, NY: McGraw-Hill.
Holly Ott