Six sigma awareness

SIX SIGMA GREEN BELT Certification
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Module 1: SIX SIGMA AWARENESS
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Contents
1
MakeMeWise. All Rights Reserved
Visit our website: www.makemewise.org
1. SIX SIGMA OVERVIEW
2. SIX SIGMA FUNDAMENTALS
3. KNOW YOUR CUSTOMER
4. OVERVIEW OF DMAIC
5. OVERVIEW OF DMADV
6. DRIVING CHANGE AND MAKING IT LAST – CAP
7. INTRODUCTION TO LEAN

2©2015 MakeMeWise. All Rights Reserved.
1. SIX SIGMA OVERVIEW

Six Sigma Quotes
•If we can’t express what we know in the form of numbers, we really don’t know
much about it
•If we don’t know much about it, we can’t control it
•If we can’t control it, we are at the mercy of chance
Mikel J. Harry President & CEO Six Sigma Academy, Inc.
•“...will bring GE to a whole new level of quality in a fraction of the time it would
have taken to climb the learning curve on our own”
John F. Welch, Jr. 1995 GE Annual Report

Six Sigma Themes
4
Simply understand your customer. Improvements are measured by customer
satisfaction and value.Genuine Focus on the
Customer.
Define key metrics to gauge business performance. With Data, problems can be
effectively defined, analyzed and resolved, permanently.
Data- and Fact-Driven
Management.
Focus on the process rather than the end result. Focus on Problems rather than
Symptoms. (eg: Symptom: Employee Dissatisfaction, Problem: Poor Management)
Processes Are Where the
Action Is.
Instead of reacting to change, shift to being proactive. Prevent Problems rather than
Correcting it later.Proactive Management.
A term coined by GE’s CEO Jack Welch. All parts of the organization including vendors
and partners need to keep their focus on the customer in mind. If everyone works
towards the same goal, the boundaries will disappear.
Boundary-less
Collaboration.
Manage Risk. Nothing new ever comes without risk. Learn from mistakes and evolve
continuously. Tolerate failure by learning from those mistakes and continue your goal
towards perfection
Strive for Perfection,
Tolerate Failure:

Multiple Facets of Six Sigma
Metric
• A metric that demonstrates quality levels at 99.99967%
performance for products and processes
Benchmark • A benchmark for product and process capability on a quality basis
Tool
• A practical application of statistical “tools” to help measure,
analyze, improve, and control the processes
`Commitment
• A commitment to customers to offer the highest quality, lowest cost
products
Sigma is a letter in
the Greek Alphabet

Optimizing process performance

Multiple meanings of Six Sigma
6
• View processes / measures completely from a customer point
of view
• Continual improvement
• Integration of quality and daily work
• Completely satisfying customer needs profitably
6 = Management philosophy
• A statistical measure of a process’ ability to meet customer
requirements (CTQs)
• Process Sigma Zst = 6; equates to 3.4 Defects Per Million
Opportunities
 = Process capability
• The Greek symbol ‘sigma’ which means standard deviation. It
is a measure of variation
 = Standard Deviation

Benefits of Six Sigma
7
End
customer
• Improved products and services
• Greater synergy with Service provider
• Cost benefit
Organization
• Process Improvement in every sphere
• Hard data for every business decision
• Alignment with customer methodology
• Sharper customer focus
Employee
• A quality driven work environment
• The satisfaction of meeting client needs
• A structured thought process
• Self Improvement in the way of working

Remember, Six Sigma is NOT…
8
× A new Quality initiative
× Going to change WHAT we do
× A completely new way of doing things
× A departure from existing quality processes
× A practice that generates increased paperwork
× A Quality Control process
× An end in itself
× A replacement for engineering, scientific or process knowledge
× Applicable to every problem in its entirety
× A set of tools only

2. SIX SIGMA FUNDAMENTALS

The Normal Curve
Infinity
• Curve theoretically does not reach zero
Symmetry
• Curve can be divided in half with equal pieces falling
either side of the most frequently occurring value
Centering
• The peak of the curve represents the center of the
process
Process Totality
• The area under the curve represents virtually 100% of the
product the process is capable of producing
Definition:
The normal curve is a probability
distribution that forms the basis for many
decisions we will make about our
processes. The curve is noted by its
“bell-shaped” nature, where most of
the values fall in the middle and fewer
values fall in either direction. The curve
has several important characteristics as
seen on right side.

Normal curve – specific characteristics
-3s -2s -1s X +1s +2s +3s
68.26%
95.46%
99.73%
34.13% 34.13%
13.60% 13.60%
2.14% 2.14%
0.13% 0.13%
68.26% of data fall Within +- 1 Standard Deviation
Sigma Level Percent Defects per Million Opportunities
6 99.9999998 .002
5 99.999943 .57
4 99.9937 63
3 99.73 2700
2 95.46 45,500
1 68.26 317,300

Normal curve with customer specifications
• Let’s assume you own a Lunchtime Pizza Delivery Shop.
• You have a lunch time special where you will deliver the Pizza between 11:45am and 12:15pm, guaranteed.
• If you don’t meet that window (earlier or later where the customers do not need the Pizza), you deliver the
Pizza for free to the customer order.
• Anything outside this 30-minute window we will consider a “defect” because it doesn’t meet our delivery
guarantee.
• In the normal curve below, we have included all the deliveries for the past month and marked off our goal
time period. The curve shows us how many deliveries are within that goal and how many fell outside the goal
time.

Normal curve with customer specifications
• We have seen that 68% of the data falls within the area of -1 Sigma and +1 Sigma on either side of
the mean.
• The area between the red lines in figure 2 indicates +/- 1 Sigma, or 68% of the data.
• So if you deliver your Pizza on time 68% of the time, you could call yourself a 1 Sigma Pizza Delivery
shop.
• If you deliver your Pizza on time 95% of the time you are at a 2 sigma level where you would still have
approximately 45,500 defects! Imagine a credit card company sending one million bills each month
and 45,500 were late each month! This is the impact that Six Sigma Quality can have on the bottom line
of a company!
• How about on-time deliveries of 99.73%? That’s only operating at a 3 sigma level.
• Don’t think you can get much better? In order to be at a six sigma level you would have to deliver on
time 99.9997% of the time.
• So that means for every million deliveries made, you would only be late 2 or 3 times. What an operation!

Six Sigma process capability
98.930%Good (3.8 Sigma)
20,000 lost articles of mail per hour
Unsafe drinking water for almost 15 minutes each day
5,000 incorrect surgical operations per week
Two short or long landings at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost seven hours each month
99.99966% Good(6 Sigma)
Seven articles lost per hour
One unsafe minute every seven months
1.7 incorrect operations per week
One short or long landing every five years
68 wrong prescriptions per year
One hour without electricity every 34 years

3. KNOW YOUR CUSTOMERS

Know your customer
What does my
customer need from
our process?
How is our process
performance from the
customer
perspective?
How does my
customer measure
my process?
How does my
customer view my
process?
What can we do
better?
How would my
customer like for our
process to perform?

Outside-in Perspective
Service Provider’s Traditional View
Of Its Contribution
Customer View
Of Service Provider’s Contribution
The Eye Of The Beholder
• Regardless of whether we can control or
impact portions of the customer’s process
today, we are often judged based on the
performance of the customer’s process.
• We may perfect our process so that we
perform consistently and without defects.
But the customer may see us as part of a
broader process that does not perform to
their expectations.
Process
Process
A B C
• We must understand the
customer’s perspective and
expectations regardless of how
much of it we currently own or
control.

Understanding key terms
• The item produced or processedUnit
• Any event that does not meet the
specifications of a CTQ
Defect
• Any event which can be measured that
provides a chance of not meeting a
customer requirement
Defect Opportunity
• A unit with one or more defectsDefective
• Customer performance requirements of a
product or service
Critical to Quality (CTQ)
Application
Critical Field
with missing
Info.
# Critical Fields
on the
Application
1 Defective Unit
with 3 Defects
out of 7 Defect
opportunities

VoC to CTQ
Consumer Cue
• Renovated Code
must reach at
specified time
• Call-takers must be
available to answer
calls
Technical requirements
• 99% of times the
schedules should
be adhered to.
• A call-taker must
answer 95% of all
incoming calls
(Telephone
promptness)
CTQ or System of CTQs
• Schedule
Adherence
• Answer rate (% of
incoming calls
answered)
Before a Six Sigma Project can begin, the “Voice of the Customer”
must be translated into the Technical Requirement - CTQ.

CTQ Flowdown
• Deliver Services and Quality
meeting GE needs
• e-GDC
• First Time Right
• Link
• Time To Resolution
• Delivery Variance
• Security audit score
• Transition promises kept
• Job monitoring
# of resources meeting the
skills/Total # of people
# of hardware software resources
meeting reqt/total # of reqt of
hardware software
# of projects with
documentation/Total # of
maintenance & production
project
# of accepted CVs/Total # of CVs
Voice Of
The Shareholder
Business Big Ys
Process Ys
Y
Y
Y
Y
Project Y
X1
X2
X3
Any parameters that
influence the Y
Key project metric defined
from the customer
perspective
Key output metrics that
summarize process
performance
Key output metrics that are
aligned with the strategic
goals/objectives of the business.
Big Ys provide a direct measure
of business performance
Bigger Ys
Voice Of
The Employee
Voice Of
The Customer

Arriving at process sigma
Identify the CTQs
Define defect opportunities
Look for defects in products or services
Arrive at DPMO
Convert DPMO to Sigma
2
3
4
5
6
308,537
66,807
6,210
233
3.4
PPM
Defects per
Million of
Opportunity
Sigma
Level

Methodologies to achieve Six Sigma
Design
•DMADV – Design
for Six Sigma
Management
•Ongoing Process
Management
Improvement
•DMAIC – Improve
to Six Sigma

DMAIC or DMADV?
• Customer need
• Business process pain
• Productivity loss
Do you
know
solution?
Are you
sure it’s
best
solution?
Just do it !
Not a Six Sigma
project
Baseline
process
exists?
Are
incremental
benefits
sufficient to
meet
objective?
Do DMAIC
Do DMADV
Yes
No
Yes
No
Yes
Yes
`Consider alternate
solutions
No

4. OVERVIEW OF DMAIC

What is DMAIC
Define Measure Analyze Improve Control
•A Five-step approach to process improvement
•Can be used for both incremental and exponential improvement projects

Define in DMAIC
Team Chartering
• Project charter
• Project scope
• Milestones
• Roles
Customer focus
• Translate VOC to
requirements
• Translate
requirements
• CTQs
Process mapping
• SIPOC

Measure in DMAIC
Measures
• Input measures
• Process
measures
• Output
measures
Data collections
• 4 step data
collection
process
Variation
• Graphical
display of data
6Sigma and
process
capability
• Calculate
process
capability

Analyze in DMAIC
Identify possible
causes
• Data stratification
• Process map
analysis
• Cause and effect
diagrams
Narrow to root
causes
• Hypothesis testing
• Regression
analysis
Quantify the
opportunity
• Determine the
financial benefits

Improve in DMAIC
Identify and test
solutions
• Generate ideas
• Synthesize
solutions
• Screen solutions
Refine solutions
• Potential
problem analysis
• Error proofing
• Robust design
• FMEA
Pilot solutions
• Pilot planning
Verification of
results
Justify solution
• Cost benefit
analysis
• Sr. management
approval

Control in DMAIC
Control plan
• Process
documentation
• Monitoring plan
• Response plan
Implementation plan
• Implementation plan
• Implement solution
• Monitor the process
• Control charts and
new process baselines
Close project
• Transition to the
process owner
• Translate learnings
• Project closure

5. OVERVIEW OF DFSS AND
DMADV

What is DMADV or DFSS
Define Measure Analyze Design Verify
•Design for Six Sigma (DFSS) is a systematic methodology which includes tools, training,
and measurements which enables us to design products and processes that meet
customer expectations and can be produced at a 6 Sigma level.
•DMADV is the methodology used to implement Design For Six Sigma (DFSS) process. This
is Mapped to the SDLC Phases

Define in DMADV
Business Objective
• Project Charter
• New product /
service concept
• Business case
Project scope
• Multi Generation
Project Plan
• Project Budget
Project
Management
• Project Plan
• Design package
• Change
Acceleration
Process Plan
• Communication
plan
SDLC equivalent – Initial feasibility study

Measure in DMADV
Determine
customer needs
• Voice of the
customer
• Customer
Research plan
• Interviews, Focus
Groups, surveys
Observations
Prioritize and
specify CTQs
• Quality Function
Deployment
• Performance
Benchmarking
Customer / Internal
Risk
• Failure Mode &
Effects Analysis
SDLC equivalent – Requirement gathering and freezing

Analyze in DMADV
Develop product /
Service
• Functional Analysis
• Benchmarking
• Brainstorming
Prioritize and specify
CTQs
• Process maps
• Information System
design
• Human system
design
• Parameter &
Tolerance Design
Customer / Internal
risk
• Alternative
Selection
• Cost/ Benefit
analysis
• Failure mode &
effects analysis
• Simulation
• Design Review
• Product / Service
Risk assessment
SDLC equivalent – High level design and functional specification

Design in DMADV
Detailed process design
• Functional Analysis
• Structure trees
• Benchmarking
• Process maps
• Layout diagrams
• Information system design
• Human system design
• Parameter & Tolerance
Design
Simulation and Reviews
• Alternative selection
• Cost/ Benefit analysis
• Failure mode & effects
analysis (FMEA)
• Simulation
• Design Review
• Product/ Service Risk
assessment
Control and verification
planning
• Pilot Test Plan
• Control Plan
• Process Management Chart
• Risk assessment
SDLC equivalent – Low level design / Technical specifications

Verify in DMADV
Pilot Test and
Analysis
• Pilot Testing and
Evaluation
• Implementation
planning
• Transition plan
Production process
Implementation
• Communication plan
• Stability and capability
evaluations
• Defect, DPMO*, DPU*,
opportunity
• Yield
Transition to
Process Owners
• Control Plans
• Process Management
Charts
• Standards and
Procedures
• Run/ Control Charts
• MGPP
SDLC equivalent: SDLC – Construction, Testing, Implementation & Maintenance

DMAIC vs DMADV
DMAIC
• Define - Determine Project Objectives,
Scope, Resources, Constraints, collect
VOC, AS-IS process map
• Measure - Determine CTQ’s, Gage
R&R, Obtain Data To Quantify Process
Performance
• Analyze - Analyze Data To Identify
Root Causes Of Defects
• Improve - Intervene In The Process To
Improve Performance
• Control - Implement A Control System
To Maintain Performance Over Time
DMADV
• Define - Determine Project Objectives,
Scope, Resources, Constraints
• Measure - Determine CTQ’s, Gage
R&R
• Analyze - Develop Design Concepts,
And High-Level Design
• Design - Develop Detailed Design,
Implementation and Integration
• Verify - Check Completed Design,
Transition to Customer

6. DRIVING CHANGE AND
MAKING IT LAST - CAP

Change Acceleration Process – The Need
* Quality of Six Sigma solution times its Acceptance = Effectiveness
CAP Complements Technical Strategy With
Cultural Tools To Achieve The Change Initiative
Technical
Change
Organization
or Cultural
change
Business
Results
Q * A = E

7. INTRODUCTION TO LEAN

What is lean?
Accelerates the velocity of a process bringing out faster results
Reduces the cost of any process (service or manufacturing) by
removing waste
• Control the activities / steps / flows in a process
• Reduce the number of activities / steps / flows
• Reduce the quantity of activities / steps / flows in a process
• Eliminate NVA cost driven by those activities / steps / flows
Contains a well-defined set of tools to

Lean principles
• Value is defined by the customer and expressed in
terms of a specific product, which meets the
customer's needs at a specific price at a specific time.
Value
• The value stream is the set of all the specific actions
required to bring a specific product from input to
output
Value Stream
• Make the value creating steps move continuously.
Perform Work Balancing, Leveling and Standardization.
Flow
• Let the customer pull the product as needed.
Opposite to the Push method which would result in
more Inventory
Pull
• Continuously seek to improve value, make flow more
continuous, and the ability of the customer to pull
faster.
Perfection

7 Wastes defined in lean
• Unnecessary movements of goods/product due to poor layout etc.
1. Transport
• Finished and/or unfinished goods that are not having value added to them.
2. Inventory
• Unnecessary movement of people/machines when working in a process.
3. Motion
• Unnecessary waiting of people, machines or goods in a process.
4. Waiting
• Processing to a standard that exceeds the requirement of the customer.
5. Over processing
• To produce at a faster rate than the customer actually requires.
6. Overproduction (leads to all the other Wastes!)
• Poor quality, scrap, rework etc.
7. Defects

Six Sigma Vs Lean
Six Sigma
• Six sigma attacks problems with a range of
statistically based, problem solving tools. Six
sigma has no inherent pull-versus-push
philosophy or inventory reduction foundation
built into it.
• Six Sigma is focused on reducing variation and
achieving uniform process results, which leads to
less waste, less throughput time and less
inventory
• Six Sigma = Reduced process variation
• Understand customer requirements
• Focus on critical to quality variables
Lean
• Lean installs a philosophy and practice of waste
reduction that attacks all of the wastes with the
intent to create a self-regulating, pull system that
has minimal inventory.
• Lean is primarily concerned with eliminating
waste, shortening lead time and improving flow,
which leads to less variation, uniform output and
less inventory
• Lean = Improved process flow and reduce waste
• Understand what customer sees as “value”
• Eliminate everything that does not add value

Six Sigma Vs Lean
Six Sigma
• Six Sigma is most closely associated with
defects and quality
• Six Sigma does not contain any tools to control
lead time (e.g., Pull systems), or tools specific to
the reduction of lead time (e.g., setup
reduction).
• Six Sigma reduces variation of value added
(Accuracy)
• Six Sigma has an expert model- Yellow belt,
Green Belt, Black belt, Master Black belt
Lean
• Lean is linked to speed, efficiency, and waste.
• Lean provides tools to reduce lead-time of any
process and eliminate non-value add cost.
• Lean exposes NVA/VA and makes value
added flow (Speed).
• Lean does not have an expert model.

Need for Lean Six Sigma
The combination of Six Sigma and Lean can fulfil all three goals
Speed
Accuracy
Performance
The processes of all companies and
organizations must:
• Become faster and more responsive to
customers.
• Achieve Six Sigma capability .
• Operate at world class cost
Lean exposes NVA/VA and makes value
added flow (Speed). Six Sigma reduces
variation of value added (Accuracy).
Thus, the combination of Six Sigma and Lean
can fulfill all three goals.

Need for Lean Six Sigma
Most companies using both methodologies began by applying basic lean-manufacturing
techniques -- the 5Ss, standardized work and the elimination of waste. As the organizations
reduced waste and cycle time , they discovered the need for even more advanced
methods of uncovering the root cause of abnormalities.
Once lean techniques eliminate much of the noise from a process, Six Sigma offers a
sequential problem-solving procedure using statistical tools so that potential causes are not
overlooked, and viable solutions to chronic problems can be discovered.
"If you do just Six Sigma, you're not going to maximize the potential of your organization. You
have to do both," --- Mike Carnell, President of Six Sigma Applications.

End of Module 1:
SIX SIGMA
AWARENESS
No part of this document may be reproduced in any form
without the written permission of MakeMeWise Education
Services Pvt Ltd.
Permission can be requested at support@makemewise.org
For more information:
Visit our website
www.makemewise.org
Email us at
support@makemewise.org

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