Six Sigma Intro

A brief overview on the breakthrough
       methodology for Quality
            Management
What is hidden behind
“Six Sigma”?

A strange word and a blurred
image, that is the most
widespread knowledge on Six-
Sigma.

There is lot of confusion on what
is the real meaning of “Six Sigma”:
• does it deal with statistics?
• does it deal with numbers?
• can only big companies run it?
• is it quality-driven?
• is it money-driven?
•…



Let’s clarify what Six Sigma
SHOULD be for a company.

                                 Matteo Casadio Strozzi - all rights reserved   2
What is Six Sigma?
    Project          DMAIC (Define, Measure, Analyze, Improve, Control ) is nothing
                      but a PM method to build and manage strong and effective
  Management
                                              projects.

                   Six Sigma applies statistics to business case to enforce the reliability
 Data driven DSS
                                                  of choices.

   Economic
    project        Every project must be also evaluated for the economic impact, thus
                             driving the improvement on the real priorities.
   selection

  Training path     Only skilled person can be effective on projects. Belts, Champions
                         are people that must be trained to follow the projects.


                    Improvement are economically evaluated and weighted. Cost and
 Money saving
                                  benefits can be easily compared.


                    Matteo Casadio Strozzi - all rights reserved                        3
What is Six Sigma?
    Project
                                                              Organization
  Management




                         Tool box




               Matteo Casadio Strozzi - all rights reserved            4
Why “Six Sigma”?
                                                                                                 2
                                                                                       ( xi     x)
 Sigma =    = Deviation                                                                 n 1
 ( Square root of variance )

                                                                           Axis graduated in Sigma
                   -7
                        -6
                             -5
                                  -4
                                       -3
                                            -2
                                                 -1


                                                           1
                                                                2
                                                                    3


                                                                              5
                                                                                   6
                                                                                        7
                                                       0




                                                                         4
       between   +/-                              68.27 %                            result: 317300 ppm outside
      1                                                                              (deviation)
      between    +/-                               95.45 %                                    45500 ppm
      2
      between    +/-                                  99.73 %                                 2700
      3
                                                                                              ppm
      between    +/-                              99.9937 %                                     63 ppm
      4
      between    +/-5                            99.999943 %                                   0.57 ppm

      between + / - 6                            99.9999998 %                                 0.002
                                                                                              ppm


                                   Matteo Casadio Strozzi - all rights reserved                                   5
What is Six Sigma goal?


                                       Stop the waste of money
                                    managing changes through team
                                                work.




          Better use of resources
Is Six Sigma risk-free?
Implementing Six Sigma, as well as any other changing management system (i.e
Lean) is not risk free:
1. Organizational changes: Six Sigma needs an internal structure to sustain the
   improvement projects (Master Black Belt, Black Belt, Green Belt…) and this is a
   long-term project;
2. Long term commitment: like any other long term changing process, the reached
   goal is only a new starting point. Struggle to reach the best is the real push to be
   better, every day.
3. Failure: …the worst project is a never-ending one. It is better to celebrate failure
   rather than never close a project at all. Failure happens, that is why project
   selection is a focus phase at the beginning. Choosing the easy-to-go project can
   be a good trigger for empowering changing.
4. Holistic vision: if not sure, do not start. Six Sigma is a big, challenging and
   intense journey. Six Sigma is a incredible saving machine that (after all) needs
   fuel to work. A test-project is worth only to tune the effort, not if you still need
   to decide whether or not start.
Is Six Sigma flexible?
Every company needs to have its own standard to implement Six Sigma.
Even if there are some basics to “respect”, there is not a certified Six Sigma path
or any ribbon to wear.
Lean Six Sigma is the proof that not all the Company can follow GE or Motorola
approach.

ISO has started an international work for standardizing the Six Sigma approach:
is it still quite doubtful if or when it will deliver.

Every company should focus on what is needed to improve processes, then
approach an improvement system.

No certification is worldwide acknowledge.
Six Sigma and projects
Mainly related on energy saving projects and improving test and R&D cost and time,
Six Sigma project in Chemical Industry are now a reality.

Industry     Project        LT                     Investment             Savings                 PBT
Chemical     Air control    20 wks                 1.500 €                13.500 € /yr

Chemical     N2 use         16 wks                 5.000 €                20.00 € /yr             3 monthes

Chemical     Drying air     34 wks                 50.000 €               76.000 € /yr            8 monthes
             Plant
Compound                    16 wk *                70.000 €               20.000 € /yr            3,5 yrs
             improvement
                                                                                    * Improvement and Control phase excluded.



Every process (operative and not) can be improved, Six Sigma is the breakthrough
innovative system to manage changing from INSIDE.
Six Sigma provides the structure, the methods, the tools to handle changing and
improvement management.
                           Matteo Casadio Strozzi - all rights reserved                                                  9
Six Sigma: pro and cons
  Is Quality improvement necessary to compete?


    Is Six Sigma mandatory to improve Quality?


   Is Lean or TPS mandatory to improve Quality?

Is Six Sigma a structured system developed through
experience to help companies to reach best-in-class
                      standards?

                 Is Six Sigma free?

Is Six Sigma worth?
                         Matteo Casadio Strozzi - all rights reserved   10
Thank you for attention.
www.matteocasadiostrozzi.it
info@matteocasadiostrozzi.it
Skype: matteo.casadio.strozzi


                  Matteo Casadio Strozzi - all rights reserved   11

Six sigma introduzione

  • 1.
    Six Sigma Intro Abrief overview on the breakthrough methodology for Quality Management
  • 2.
    What is hiddenbehind “Six Sigma”? A strange word and a blurred image, that is the most widespread knowledge on Six- Sigma. There is lot of confusion on what is the real meaning of “Six Sigma”: • does it deal with statistics? • does it deal with numbers? • can only big companies run it? • is it quality-driven? • is it money-driven? •… Let’s clarify what Six Sigma SHOULD be for a company. Matteo Casadio Strozzi - all rights reserved 2
  • 3.
    What is SixSigma? Project DMAIC (Define, Measure, Analyze, Improve, Control ) is nothing but a PM method to build and manage strong and effective Management projects. Six Sigma applies statistics to business case to enforce the reliability Data driven DSS of choices. Economic project Every project must be also evaluated for the economic impact, thus driving the improvement on the real priorities. selection Training path Only skilled person can be effective on projects. Belts, Champions are people that must be trained to follow the projects. Improvement are economically evaluated and weighted. Cost and Money saving benefits can be easily compared. Matteo Casadio Strozzi - all rights reserved 3
  • 4.
    What is SixSigma? Project Organization Management Tool box Matteo Casadio Strozzi - all rights reserved 4
  • 5.
    Why “Six Sigma”?  2 ( xi x) Sigma = = Deviation n 1 ( Square root of variance ) Axis graduated in Sigma -7 -6 -5 -4 -3 -2 -1 1 2 3 5 6 7 0 4 between +/- 68.27 % result: 317300 ppm outside 1 (deviation) between +/- 95.45 % 45500 ppm 2 between +/- 99.73 % 2700 3 ppm between +/- 99.9937 % 63 ppm 4 between +/-5 99.999943 % 0.57 ppm between + / - 6 99.9999998 % 0.002 ppm Matteo Casadio Strozzi - all rights reserved 5
  • 6.
    What is SixSigma goal? Stop the waste of money managing changes through team work. Better use of resources
  • 7.
    Is Six Sigmarisk-free? Implementing Six Sigma, as well as any other changing management system (i.e Lean) is not risk free: 1. Organizational changes: Six Sigma needs an internal structure to sustain the improvement projects (Master Black Belt, Black Belt, Green Belt…) and this is a long-term project; 2. Long term commitment: like any other long term changing process, the reached goal is only a new starting point. Struggle to reach the best is the real push to be better, every day. 3. Failure: …the worst project is a never-ending one. It is better to celebrate failure rather than never close a project at all. Failure happens, that is why project selection is a focus phase at the beginning. Choosing the easy-to-go project can be a good trigger for empowering changing. 4. Holistic vision: if not sure, do not start. Six Sigma is a big, challenging and intense journey. Six Sigma is a incredible saving machine that (after all) needs fuel to work. A test-project is worth only to tune the effort, not if you still need to decide whether or not start.
  • 8.
    Is Six Sigmaflexible? Every company needs to have its own standard to implement Six Sigma. Even if there are some basics to “respect”, there is not a certified Six Sigma path or any ribbon to wear. Lean Six Sigma is the proof that not all the Company can follow GE or Motorola approach. ISO has started an international work for standardizing the Six Sigma approach: is it still quite doubtful if or when it will deliver. Every company should focus on what is needed to improve processes, then approach an improvement system. No certification is worldwide acknowledge.
  • 9.
    Six Sigma andprojects Mainly related on energy saving projects and improving test and R&D cost and time, Six Sigma project in Chemical Industry are now a reality. Industry Project LT Investment Savings PBT Chemical Air control 20 wks 1.500 € 13.500 € /yr Chemical N2 use 16 wks 5.000 € 20.00 € /yr 3 monthes Chemical Drying air 34 wks 50.000 € 76.000 € /yr 8 monthes Plant Compound 16 wk * 70.000 € 20.000 € /yr 3,5 yrs improvement * Improvement and Control phase excluded. Every process (operative and not) can be improved, Six Sigma is the breakthrough innovative system to manage changing from INSIDE. Six Sigma provides the structure, the methods, the tools to handle changing and improvement management. Matteo Casadio Strozzi - all rights reserved 9
  • 10.
    Six Sigma: proand cons Is Quality improvement necessary to compete? Is Six Sigma mandatory to improve Quality? Is Lean or TPS mandatory to improve Quality? Is Six Sigma a structured system developed through experience to help companies to reach best-in-class standards? Is Six Sigma free? Is Six Sigma worth? Matteo Casadio Strozzi - all rights reserved 10
  • 11.
    Thank you forattention. www.matteocasadiostrozzi.it info@matteocasadiostrozzi.it Skype: matteo.casadio.strozzi Matteo Casadio Strozzi - all rights reserved 11