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Six Sigma Methodology
DUBTECH CONFERENCE
Second GCC Forum
Philbhert Suresh - Consultant
TransLogistique Canada
January 14, 2003

www.translogistique.org 2
Who is TransLogistique
Canada?
“Our mission is to become the leading provider of training
in logistics and supply chain management that supports
professional development of and effectively in the
networked- economy.”

Six Sigma - History
• History will record how
this elegant process
changed our world and
gave new meaning to the
term “Quality”
• Father of Six Sigma – Bill
Smith – a senior engineer
and scientists in Motorola
Company.
• Malcolm Baldridge
National Quality Award

Sigma
The term sigma is Greek alphabet letter 
It describes variability, where a classical measurement unit
consideration of the program is defects per unit.
A sigma quality level offers an indicator of how often defects are
likely to occur, where higher sigma quality level indicates
A process that is less likely to create defects.
A six sigma quality level is said to equate to
3.4 defects per million opportunities ( DPMO).

What is Six Sigma
• Six Sigma is a rigorous and
disciplined methodology that
uses data and statistical
analysis to measure and
improve a company's
operational performance by
identifying and eliminating
"defects" in manufacturing and
service-related processes.
Commonly defined as 3.4
defects per million
opportunities, Six Sigma can be
defined and understood at three
distinct levels: metric,
methodology and philosophy..."

Six Sigma Metric
Metric: 3.4 Defects Per Million Opportunities.
DPMO allows you take complexity of
product/process into account. Rule of thumb is to
consider at least three opportunities for a physical
part/component - one for form, one for fit and
one for function, in absence of better
considerations. Also you want to be Six Sigma in
the Critical to Quality characteristics and not
the whole unit/characteristics.

Critical To Quality (CTQ)
Critical To Quality - CTQ
CTQs (Critical to Quality) are the key measurable characteristics of a
product or process whose performance standards or specification limits
must be met in order to satisfy the customer. They align improvement or
design efforts with customer requirements.
To put it in layman's terms, CTQs are what the customer expects of a
product... the spoken needs of the customer. The customer may often
express this in plain English, but it is up to us to convert them to
measurable terms using tools such as DFMEA, etc.

CTQ
• CTQs represent the product or
service characteristics that are
defined by the customer
(internal or external). They
may include the upper and
lower specification limits or any
other factors related to the
product or service. A CTQ
usually must be interpreted
from a qualitative customer
statement to an actionable,
quantitative business
specification.

CTQ
To put it in layman's terms, CTQs are what the
customer expects of a product... the spoken needs
of the customer. The customer may often express
this in plain English, but it is up to us to convert
them to measurable terms using tools such as
DFMEA, etc.

Six Sigma Methodology
Methodology: DMAIC/DMADV / DFSS
structured problem solving roadmap and tools.
Six Sigma is a methodology that provides
businesses with the tools to improve the
capability of their business processes. This
increase in performance and decrease in process
variation leads to defect reduction and vast
improvement in profits, employee morale and
quality of product.

Six Sigma Methodology -
Similarities
The Similarities of DMAIC and DMADV
Let's first look at the DMAIC and DMADV methodologies and talk about how
they're alike. DMAIC and DMADV are both:
Six Sigma methodologies used to drive defects to less than 3.4 per
million opportunities.
Data intensive solution approaches. Intuition has no place in Six
Sigma -- only cold, hard facts.
Implemented by Green Belts, Black Belts and Master Black Belts.
Ways to help meet the business/financial bottom-line numbers.
Implemented with the support of a champion and process owner.

Six Sigma - Methodology -
DMAIC
DMAIC
Define
Define the project goals and customer (internal and external)
deliverables
Measure
Measure the process to determine current performance
Analyze
Analyze and determine the root cause(s) of the defects
Improve
Improve the process by eliminating defects
Control
Control future process performance

Six Sigma Methodology -
DMADV
DMADV
Define
Define the project goals and customer (internal and external)
deliverables
Measure
Measure and determine customer needs and specifications
Analyze
Analyze the process options to meet the customer needs
Design
Design (detailed) the process to meet the customer needs
Verify
Verify the design performance and ability to meet customer

Six Sigma Methodology - Use
• When To Use
DMAIC
The DMAIC methodology,
instead of the DMADV
methodology, should be
used when a product or
process is in existence at
your company but is not
meeting customer
specification or is not
performing adequately.

Six Sigma Methodology - Use
• When To Use DMADV
The DMADV methodology,
instead of the DMAIC
methodology, should be used
when:
• A product or process is not in
existence at your company and
one needs to be developed
• The existing product or
process exists and has been
optimized (using either DMAIC
or not) and still doesn't meet
the level of customer
specification or six sigma level

Black Belt
According to the Six Sigma Academy, Black Belts save
companies approximately $230,000 per project and can
complete four to 6 projects per year. General Electric, one
of the most successful companies implementing Six
Sigma, has estimated benefits on the order of $10 billion
during the first five years of implementation. GE first
began Six Sigma in 1995 after Motorola and Allied Signal
blazed the Six Sigma trail. Since them, thousands of
companies around the world have discovered the far
reaching benefits of Six Sigma.

Who is a
Master Black Belt?
Master Black Belt - This is the highest level of technical and
organizational proficiency. This is the highest level of technical and
organizational proficiency. Because master black belts train black belts, they
must know everything the black belts know, as well as understand the
mathematical theory on which the statistical methods are based. Masters must
be able to assist black belts in applying the methods correctly in unusual
situations. Whenever possible, statistical training should be conducted only
by master black belts. If it's necessary for black belts and green belts to
provide training, they should only do so under the guidance of master black
belts. Because of the nature of the master's duties, communications and
teaching skills should be judged as important as technical competence in
selecting candidates.

Who is a Black Belt?
Candidates for technical leader (black belt) status are technically oriented
individuals held in high regard by their peers. They should be actively involved in
the organizational change and development process. Candidates may come from a
wide range of disciplines and need not be formally trained statisticians or
engineers. However, because they are expected to master a wide variety of
technical tools in a relatively short period of time, technical leader candidates will
probably possess a background in college-level mathematics, the basic tool of
quantitative analysis. College-level course work in statistical methods should be a
prerequisite.
Six sigma technical leaders work to extract actionable knowledge from an
organization's information warehouse. Successful candidates should understand
one or more operating systems, spreadsheets, database managers, presentation
programs and word processors. As part of their training they will be required to
become proficient in the use of one or more advanced statistical analysis software
packages.

Who is a Green Belt?
Green belts are six sigma team leaders capable of forming and facilitating
six sigma teams and managing six sigma projects from concept to
completion. Typically, green-belt training consists of five days of
classroom training and is conducted in conjunction with six sigma team
projects. Training covers facilitation techniques and meeting
management, project management, quality management tools, quality
control tools, problem solving, and exploratory data analysis. Usually, six
sigma black belts help green belts choose their projects prior to the
training, attend training with their green belts and assist them with their
projects after the training.
www.iqfnet.org - online certification program in Six Sigma

Six Sigma Philosophy
Philosophy: Reduce variation in your
business and take customer-focused,
data driven decisions

Six Sigma Curriculum
Education is a key component of
your Six Sigma initiative. Below is a
recommendation of what should be
included in your training, whether
conducted in-house or by a third-party
consultant.

Six Sigma Body of Knowledge
•Overview of Six Sigma
• DMAIC Methodology
•Overview DMAIC Versus DMADV (Design for Six Sigma)
•Overview Financial Benefits of Six Sigma
•The Impact of Six Sigma to The Organization
•The Six Sigma Language Project Prioritization Launching a Six Sigma Initiative
•Roles of the Six Sigma Organization
•Selecting and Developing Black Belts and Master Black Belts
•Lessons Learned from Prior Six Sigma Implementations
•Human Resources for Six Sigma Reward and Recognition System
•Leading Organizational Change

Six Sigma - Curriculum
Define
•Overview of Define
•Project Definition
•Project Charter
•Gathering Voice of the Customer
•Translating Customer Needs into Specific Requirements (CTQs)
• SIPOC Diagram Questions to Ensure a Successful Define Phase

Measure
•Overview of Measure
•Process Mapping (As-Is Process)
•Data Attributes (Continuous Versus Discrete)
•Measurement System Analysis
•Gage Repeatability and Reproducibility
•Measuring Process Capability
•Calculating Process Sigma Level
•Visually Displaying Baseline Performance
•Questions to Ensure a Successful Measure Phase

Analyze
•Overview of Analyze
•Visually Displaying Data (Histogram, Run Chart, Pareto Chart,
Scatter Diagram)
•Value-Added Analysis Cause and Effect Analysis (a.k.a.
Fishbone, Ishikawa)
•Verification of Root Causes
•Determining Opportunity (Defects and Financial) for
Improvement
•Project Charter Review and
•Revision Questions to Ensure a Successful Analyze Phase

Improve
•Overview of Improve
•Brainstorming
•Quality Function Deployment (House of Quality)
•Failure Modes and Effects Analysis (FMEA)
•Piloting Your Solution
•Implementation
•Planning Culture Modification Planning For Your Organization
•Questions to Ensure a Successful Improve Phase

Control
•Overview of Control
•Statistical Process Control (SPC) Overview
• Developing a Process Control Plan
•Documenting the Process
•Questions to Ensure a Successful Control Phase

Six Sigma Concepts
Design of Experiments ( DOE )
Response Surface Methods ( RSM)
Reliability Testing
Statistical Process Control (SPC)
Quality Function Deployment (QFD)

Six Sigma Case - QPR Solution
QPR Management Software helps to model,
measure, analyze, and control processes.
This case shows how you can model and
analyze the process by using QPR Process
Guide. The case includes a top-level
model showing the key processes and two
simple simulation models that visualize
the luggage handling on an international
airport before and after the implementation
of the Six Sigma project.
Six Sigma Case – Luggage Handling on an
International Airport

Thank you for your attention
Implement
Six Sigma Strategy
in your organization
Attend the Fujairah Logistics Conference
February 22, 2003
Contact French Vision -
Anne Gineste ( 050-614-0292) or
email agja1@hotmail.com
to register and learn more about
Six Sigma In Supply Chain Process

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