This is a partial preview of the document found here: https://flevy.com/browse/business-document/six-sigma-89 Description: This is detailed document explaining Six Sigma, include the tools and methodologies used in Six Sigma analysis. This training presentation has been adopted from the ones used at global consulting firms

1. Six Sigma

2. Some definitions of Six Sigma
Process Critical
SIX SIGMA Focus Variables
 Six Sigma is a methodology that adds value
by improving process efficiency through use Variation SPC
of specific Tools Software
6 Sigma
 Allows to take the current process
Tools &
performance to its true potential level Methods
 “…Six Sigma consists of developing a Facts Statistical
culture that demands perfection and provides and Data Tools
executives with the tools to measure
performance and implement
Quality
improvements…” Jack Welch 1995 DMAIC
Tools
Define Measure Analyze Improve Control
Define
Determine Identify Obtain Validate Control
Problem, Identify Implement
Current Possible Root Cause & Continue
team, scope, Opportunities Improvement
Performance Root Cause Causes Data & Effect Improving
process
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3. Continuous Improvement and Six Sigma go hand in hand
 Six Sigma seeks for  Six Sigma ties the results  Six Sigma enables
excellence based on of improvement effort to
the bottom line –Capabilities
measures and
Development
structured approach –Solves issues related
–Brings wide range of Customers and Business –Professional growth
powerful tools Strategy
–Mechanism to manage –Improves rational fact
initiatives & base decision making
collaboration –Improves focus &
–Integrates company prioritization
–Solves complex –Builds on the success of
problems existing initiatives
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4. Six Sigma Basic Concept
It’s all about Variability Statistical Meaning
 Measure the same process many times
and you will find differences…we call
that variation
 There is variation between every
product, every service…everything
 If you don’t believe me, try this
experiments:
- Put 6 bottles of beer right next to each
other and see if they all have exactly
the same level
- Close the doors of your car one after
another and see if they require the
same effort
 Six Sigma is a measure of performance
 It means 3.4 defects per million products or services delivered
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5. Some Examples
Specification Limits
Defects Defects
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
US Mail: 1 letter lost per hour
Water: 3 minutes of non drinkable water per year
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6. Agenda
 What is Six Sigma
 A closer look at the Methodology
 A few words about control charts
 The Six Sigma Green Belt Training
 How to get certified
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7. The DEFINE phase focuses on finding a refined description of the main
problems
The DEFINE phase involves the following steps:
 Identify Team Members
 Define Project Objective
 Define Project Scope
 Obtain an accurate description of the problems
 Identify ―Customer‖ y its needs
 Launch project
 Planning
Tools & Techniques used in this phase:
 Project Charter
 Project Plan
 SIPOC Diagram
 Process Map
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8. The ANALYZE phase focuses on validating the hypotheses and
suggesting a plan to mitigate the root causes
The ANALYZE phase involves the following steps:
 Analyze Interaction between potential causes and CTQ
variables based on data collected on previous phase
(Analysis of Variance, Test of Hypothesis, Regression,
etc)
 Brainstorming session to identify potential interim and
long term corrective and preventive actions
Tools & Techniques used in this phase:
 Cause-Effect Statistical Analysis (CTQ vs. Potential
People/Organization Process Metrics
Causes)
Metrics do not allow to
Recommended ―IMPROVE‖ action plan
predict SLA performance

Amount of Data sent
Frequency of SLA metric
is not measured monitoring is low (Every 3
hours)
A significant amount
of additional orders Percentage of 03-
are sent in the 4th 06 outbound
Budget not updated
quarter of the year transmissions
when scope changed
Failure Mode and Effects Analysis (FMEA)
within SLA has
decreased from
92% to 66% and the
trend shows that is
keeps decreasing

GXS data transmission
capacity doesn’t seem to
be aligned with the 4th
quarter volume
Technology Environment
 Regression Analysis
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Scatterplot of Average Time Y vs Segments (MM)
 Multi-Variate Analysis
50
40
Average Time Y
30
20
10
0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Segments (MM)
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9. The CONTROL phase focuses on verifying that the improvements were
effective
The CONTROL phase involves the following steps:
 Control process to verify that improvement is sustainable
 Determine if improvement actions can be replicated in other
areas
 Identify lessons learned
Tools & Techniques used in this phase:
 Project Scorecard
 Process books
Process Capability Sixpack of On Time Ship
I Chart Capability Histogram
 Project Management charts
UCL=112.48
Individual Value
100 6
_
X=87.65
80
60
5 LCL=62.82
2 4 6 8 10 12 14 16 18 20 22 70 80 90 100 110
Moving Range Chart Normal Prob Plot
UCL=30.50 AD: 1.135, P: < 0.005
30
Moving Range
15
__
MR=9.34
0 LCL=0
2 4 6 8 10 12 14 16 18 20 22 50 75 100 125
Last 23 Observations Capability Plot
Within
95 Within Overall
StDev 8.27692 StDev 11.06137
Values
85 Cp * Overall
Pp *
Cpk -0.30 Ppk -0.22
75
CCpk -0.30 Cpm *
Specs
0 5 10 15 20 25
Observation
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10. Control charts are line charts that plot a key variable (like EDI
transmission time) over time on a continuous basis
 Control Charts use Control Limits to monitor the process
 Control Limits are Pre-Calculated values that indicate when you need to take actions to
correct the process
 They help detect when a process is going out of control, before it goes out of spec
 Control Limits are not Specifications
2.40
2.30
2.20
Measured Variable
2.10
Process
2.00
Average
1.90
1.80
1.70
1.60
1.50
1 6 11 16 21 26 31 36 41 46 51 56 61
Time
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11. The variation within control limits can only be reduced by changing the
fundamentals of the process
Normal Process Variation
 The plots move within the control limits and there are no signs of instability
 The plots vary due to “common” causes; the level of variation is a result of process design
 A process could vary a lot and still be under control
2.40
2.30
2.20 Examples to attack
common causes:
2.10
2.00  Change process
1.90  Improve
infrastructure
1.80
1.70
1.60
1.50
1 6 11 16 21 26 31 36 41 46 51 56 61
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12. Agenda
 What is Six Sigma
 A closer look at the Methodology
 A few words about control charts
 The Six Sigma Green Belt Training
 How to get certified
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13. The consulting approach accelerates results delivery and ensures
sustainable knowledge transfer
Provides organizational and cultural knowledge
Provides reality checks for implementation
Provides access to & mobilization of the organization
Reinforces message for change
Opportunity leadership & Project management support
coordination
Provide leading practices
Drive change management Process from relevant industries and
and overcome obstacles Owner integrate into results delivery
Technical and content Analytic support
knowledge
Change management and
6 Sigma method & value chain expertise
experience 6 Sigma
Consult- 3rd party objectivity and
Black
Rigor in results tracking ing tenacity…consulting firms
Belt
typically do more than bring
Leverage into business units’
six sigma critical success
performance
PROJECT TRIADS MODEL factors to clients – we help
you bring them together
The Triad provides an integrated approach to design and implementation, linkage of strategic, tactical and operational
issues, and overall program management as the umbrella for driving individual projects.
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