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Six sigma
                                    Orientation




© All Rights Reserved TreQna 2005
expectations
                                    •What is Quality?
                                    •Know Six Sigma
                                    •Awareness with respect to origin
                                     and history of Six Sigma.
                                    •The utility and benefits
                                    •Introduction to Six Sigma as
                                     methodology
                                    •The Six Sigma organization



© All Rights Reserved TreQna 2005
What is Quality?


© All Rights Reserved TreQna 2005
Evolution of Quality



    Reactive Quality
                                         Proactive Quality
    Quality Checks (QC) - Taking the
                                         “Create process that will produce
    defectives out of what is produced
                                         less or no defects”




   Historically                                                   Contemporary




© All Rights Reserved TreQna 2005
Segments in Quality


    Methodologies                        Standards         Capability Models


•Six Sigma                           •ISO 9000, ISO       •eSCM
•Lean                                14000 etc.           •CMM
                                     •COPC                •CMMI
                                     •Malcolm Baldrige

                                            Sharing
       Scientific way                                        Best practices
                                         Benchmarked
        to improve                                              to build
                                           practices-
        capability?                                            capability
                                        “Standardizing”




 © All Rights Reserved TreQna 2005
What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at high
  standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique


Six Sigma is not:
• A standard
• A certification
• Another metric like percentage


 © All Rights Reserved TreQna 2005
Two Meanings of Sigma



                                       σ
• 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. Sigma
  capability measures the capability of the process to produce defect-free
  outputs. A defect is anything that results in customer dissatisfaction.



 © All Rights Reserved TreQna 2005
Path to Six Sigma


                                           6 Sigma          3.4 Defects


                    Sigma levels and
                   Defects per million
                      opportunities
                        (DPMO)
                                         5 Sigma          233 Defects




                                    4 Sigma            6,210 Defects




                               3 Sigma               66,807 Defects




             2 Sigma                               308,537 Defects


© All Rights Reserved TreQna 2005
What it means to be @ Six Sigma
       Is 99% (3.8σ) good enough?                            99.99966% Good – At 6σ


      20,000 lost mails per hour                          7 lost mails per hour


      Unsafe drinking water almost 15                     One minute of unsafe drinking
      minutes each day                                    water every seven months

      5,000 incorrect surgical                            1.7 incorrect surgical operations
      operations per week                                 per week


      2 short or long landings at most                    One short or long landing at major
      major airports daily                                airports every five years

      200,000 wrong drug prescriptions                    68 wrong drug prescriptions each
      each year                                           year



Example quoted from GE Book of Knowledge - copyright GE


  © All Rights Reserved TreQna 2005
Origin of Six Sigma


                                          Motorola
                              the company that invented Six Sigma


• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola


• Late 1970s - Motorola started experimenting with problem solving through
  statistical analysis


• 1987 - Motorola officially launched it’s Six Sigma program



 © All Rights Reserved TreQna 2005
The Growth of Six Sigma


                                             GE
                             the company that perfected Six Sigma


• Jack Welch launched Six Sigma at GE in Jan,1996


• 1998/99 - Green Belt exam certification became the criteria for management
  promotions


• 2002/03 - Green Belt certification became the criteria for promotion to
  management roles


 © All Rights Reserved TreQna 2005
The Growth of Six Sigma


The GE model for process improvements




     Define                          Measure   Analyze   Improve   Control


   Combination of change management & statistical analysis




 © All Rights Reserved TreQna 2005
The Growth of Six Sigma




© All Rights Reserved TreQna 2005
Methodology

        D                           Identify and state the practical problem
      Define

                                    Validate the practical problem by collecting data
      M
    Measure
                                    Convert the practical problem to a statistical one, define
       A                            statistical goal and identify potential statistical solution
     Analyze

       I                            Confirm and test the statistical solution
    Improve

        C                           Convert the statistical solution to a practical solution
      Control

© All Rights Reserved TreQna 2005
Define

        D                           VoC - Who wants the project and why ?
      Define


      M                             The scope of project / improvement
    Measure

       A                            Key team members / resources for the project
     Analyze

       I
                                    Critical milestones and stakeholder review


                                                                                 D
    Improve

        C
      Control                       Budget allocation

© All Rights Reserved TreQna 2005
Measure

        D                           Ensure measurement system reliability
      Define
                                    - Is tool used to measure the output variable flawed ?
                                    - Do all operators interpret the tool reading in the same way ?
      M
    Measure

       A                            Prepare data collection plan
     Analyze                        -   How many data points do you need to collect ?
                                    -   How many days do you need to collect data for ?
       I                            -   What is the sampling strategy ?
    Improve                         -   Who will collect data and how will data get stored ?


                                                                                           M
                                    -   What could the potential drivers of variation be ?

        C
      Control                       Collect data

© All Rights Reserved TreQna 2005
Analyze

        D                           Understand statistical problem
      Define


      M
    Measure                         Baseline current process capability

       A
     Analyze
                                    Define statistical improvement goal
       I
    Improve

        C
      Control                       Identify drivers of variation (significant factors)   A
© All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Root Cause Analysis (fish bone)

•     A brainstorming tool that helps define and display major causes, sub causes and
      root causes that influence a process

•     Visualize the potential relationship between causes which may be creating
      problems or defects

            Primary Cause
                                                          Secondary Cause


       Backbone                                                     Problem



                                                   Root Cause
                                                                        A
    © All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Control – Impact Matrix

•     A visual tool that helps in separating the vital few from the trivial many

                                                            Control


                                        Vital Few               Cost Ineffective
                            High Control – High Impact         Low Control – High Impact
Impact




                                   Cost Ineffective
                                High Control – Low Impact
                                                                   Trivial Many
                                                               Low Control – Low Impact    A
    © All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Process Map Analysis

•     Visually highlights hand off points / working relationships between people,
      processes and organizations

•     Helps identify rework loops and non value add steps

                                        Customer   Process A   Process B   Vendor




                                                                                    A
    © All Rights Reserved TreQna 2005
Analyze – Identify Drivers of Variation
Hypothesis Testing

•     A statistical tool used to validate if two samples are different or whether a
      sample belongs to a given population

Null Hypothesis (Ho) is the statement of the status quo

Alternate Hypothesis (Ha) is the statement of difference


          Homogeneity of                                                 One way ANOVA
             Variance                                Moods Median



                                        Chi-Square                  Regression
                                                                                 A
    © All Rights Reserved TreQna 2005
Improve

        D                           Map improved process
      Define


      M
    Measure

                                    Pilot solution
       A
     Analyze

       I
    Improve

        C
      Control
                                                                                      I
                                    Identify operating tolerance on significant factors



© All Rights Reserved TreQna 2005
Control

        D
                                    Ensure measurement system reliability for
      Define                        significant factors
                                    - Is tool used to measure the input / process variables flawed ?
                                    - Do all operators interpret the tool reading in the same way ?
      M
    Measure
                                    Improved process capability
       A
     Analyze

       I
    Improve                         Sustenance Plan

        C
      Control
                                    - Statistical Process Control
                                    - Mistake Proofing
                                    - Control Plan
                                                                                    C
© All Rights Reserved TreQna 2005
Control – Sustenance Plan
Control Plan

•     Have the new operating procedures and standards been documented ?

•     What Statistical Process Control (SPC) tools will be used to monitor the process
      performance ?

•     Who will review the performance of the output variable and significant factors
      on closure of the project and how frequently ?

•     What is the corrective action or reaction plan if any of the factors were to be
      out of control ?




                                                                          C
    © All Rights Reserved TreQna 2005
Six Sigma Organization



© All Rights Reserved TreQna 2005
Six Sigma - Three Dimensions
                                                                                                       Customer           Process A        Process B         Vendor




                                     Define   Measure     Analyze     Improve        Control



                         Driven by
                         customer
                          needs
                                                                                                               Process Map Analysis
                                                                                        LSL     US
                                                                                                 L
                                                        Methodology
Led by
Senior
 Mgmt                                                                                  Upper/Lower
                                                                                                                                              •
                                                                                       specification                                    • ••••
                                                                                                                                     •••••••••••
                                                                                                                                             •
                                              Organization          Tools
                                                                                          limits                                  ••••••
                                                                                                                                  •••••
                                                                                                                                     ••
                                                                                                                                   Regression


                                                                                                          35                                                 100%
                                                                                                          30
                                                                                                                                                             80%
                                                                                                          25
                                                                                                          20                                                 60%
                                                                                                          15                                                 40%
                                                                                                          10
                                                                                                                                                             20%
                                                                                                           5

                                                                            Process variation              0                                                 0%


        Enabled by quality
                                                                                                                  L   K     A     F   B   C   G    R    D



              team.
                                                                                                                      Frequency       Cumulative Frequency


                                                                                                                      Pareto Chart




© All Rights Reserved TreQna 2005
The Quality Team

                    Master Black Belt                 - Thought Leadership
                                                      - Expert on Six Sigma
                                                      - Mentor Green and Black Belts



                                                      -   Backbone of Six Sigma Org
   Black Belt                            Black Belt   -   Mentor Green Belts
                                                      -   Full time resource
                                                      -   Deployed to complex or “high
                                                          risk” projects
  Green Belt
                                    Green Belt
                                                      - Part time or full time resource
                                                      - Deployed to less complex projects
                            Green Belt
                                                        in areas of functional expertise


© All Rights Reserved TreQna 2005
Six Sigma – Career Option!
                                                        •   Basic - Six Sigma Awareness
                                                        •   Green Belt Projects
                              Green Belt (GB)           •   Participate in Black Belt Projects
                                                        •   Assist business functions with day to day
                                                            activities
                                                        •   Mentor/Train Green Belts
                                                        •   Black Belt Projects
                               Black Belt (BB)          •   Change Agents
                                                        •   Work along with the business owners


                                                        • Mentor/ Train Black Belts
                                                        • Run Strategic projects
                      Master Black Belt (MBB)
                                                        • More Strategic than tactical role




                                              Highly paid!
                                         Work like a Consultant!
                                       Huge demand in the industry!

                                      Overall…A high flying Career!!


© All Rights Reserved TreQna 2005
Thank You



© All Rights Reserved TreQna 2005

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Six sigma orntn

  • 1. Six sigma Orientation © All Rights Reserved TreQna 2005
  • 2. expectations •What is Quality? •Know Six Sigma •Awareness with respect to origin and history of Six Sigma. •The utility and benefits •Introduction to Six Sigma as methodology •The Six Sigma organization © All Rights Reserved TreQna 2005
  • 3. What is Quality? © All Rights Reserved TreQna 2005
  • 4. Evolution of Quality Reactive Quality Proactive Quality Quality Checks (QC) - Taking the “Create process that will produce defectives out of what is produced less or no defects” Historically Contemporary © All Rights Reserved TreQna 2005
  • 5. Segments in Quality Methodologies Standards Capability Models •Six Sigma •ISO 9000, ISO •eSCM •Lean 14000 etc. •CMM •COPC •CMMI •Malcolm Baldrige Sharing Scientific way Best practices Benchmarked to improve to build practices- capability? capability “Standardizing” © All Rights Reserved TreQna 2005
  • 6. What is Six Sigma? • It is a methodology for continuous improvement • It is a methodology for creating products/ processes that perform at high standards • It is a set of statistical and other quality tools arranged in unique way • It is a way of knowing where you are and where you could be! • It is a Quality Philosophy and a management technique Six Sigma is not: • A standard • A certification • Another metric like percentage © All Rights Reserved TreQna 2005
  • 7. Two Meanings of Sigma σ • 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. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction. © All Rights Reserved TreQna 2005
  • 8. Path to Six Sigma 6 Sigma 3.4 Defects Sigma levels and Defects per million opportunities (DPMO) 5 Sigma 233 Defects 4 Sigma 6,210 Defects 3 Sigma 66,807 Defects 2 Sigma 308,537 Defects © All Rights Reserved TreQna 2005
  • 9. What it means to be @ Six Sigma Is 99% (3.8σ) good enough? 99.99966% Good – At 6σ 20,000 lost mails per hour 7 lost mails per hour Unsafe drinking water almost 15 One minute of unsafe drinking minutes each day water every seven months 5,000 incorrect surgical 1.7 incorrect surgical operations operations per week per week 2 short or long landings at most One short or long landing at major major airports daily airports every five years 200,000 wrong drug prescriptions 68 wrong drug prescriptions each each year year Example quoted from GE Book of Knowledge - copyright GE © All Rights Reserved TreQna 2005
  • 10. Origin of Six Sigma Motorola the company that invented Six Sigma • The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola • Late 1970s - Motorola started experimenting with problem solving through statistical analysis • 1987 - Motorola officially launched it’s Six Sigma program © All Rights Reserved TreQna 2005
  • 11. The Growth of Six Sigma GE the company that perfected Six Sigma • Jack Welch launched Six Sigma at GE in Jan,1996 • 1998/99 - Green Belt exam certification became the criteria for management promotions • 2002/03 - Green Belt certification became the criteria for promotion to management roles © All Rights Reserved TreQna 2005
  • 12. The Growth of Six Sigma The GE model for process improvements Define Measure Analyze Improve Control Combination of change management & statistical analysis © All Rights Reserved TreQna 2005
  • 13. The Growth of Six Sigma © All Rights Reserved TreQna 2005
  • 14. Methodology D Identify and state the practical problem Define Validate the practical problem by collecting data M Measure Convert the practical problem to a statistical one, define A statistical goal and identify potential statistical solution Analyze I Confirm and test the statistical solution Improve C Convert the statistical solution to a practical solution Control © All Rights Reserved TreQna 2005
  • 15. Define D VoC - Who wants the project and why ? Define M The scope of project / improvement Measure A Key team members / resources for the project Analyze I Critical milestones and stakeholder review D Improve C Control Budget allocation © All Rights Reserved TreQna 2005
  • 16. Measure D Ensure measurement system reliability Define - Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same way ? M Measure A Prepare data collection plan Analyze - How many data points do you need to collect ? - How many days do you need to collect data for ? I - What is the sampling strategy ? Improve - Who will collect data and how will data get stored ? M - What could the potential drivers of variation be ? C Control Collect data © All Rights Reserved TreQna 2005
  • 17. Analyze D Understand statistical problem Define M Measure Baseline current process capability A Analyze Define statistical improvement goal I Improve C Control Identify drivers of variation (significant factors) A © All Rights Reserved TreQna 2005
  • 18. Analyze – Identify Drivers of Variation Root Cause Analysis (fish bone) • A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process • Visualize the potential relationship between causes which may be creating problems or defects Primary Cause Secondary Cause Backbone Problem Root Cause A © All Rights Reserved TreQna 2005
  • 19. Analyze – Identify Drivers of Variation Control – Impact Matrix • A visual tool that helps in separating the vital few from the trivial many Control Vital Few Cost Ineffective High Control – High Impact Low Control – High Impact Impact Cost Ineffective High Control – Low Impact Trivial Many Low Control – Low Impact A © All Rights Reserved TreQna 2005
  • 20. Analyze – Identify Drivers of Variation Process Map Analysis • Visually highlights hand off points / working relationships between people, processes and organizations • Helps identify rework loops and non value add steps Customer Process A Process B Vendor A © All Rights Reserved TreQna 2005
  • 21. Analyze – Identify Drivers of Variation Hypothesis Testing • A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (Ho) is the statement of the status quo Alternate Hypothesis (Ha) is the statement of difference Homogeneity of One way ANOVA Variance Moods Median Chi-Square Regression A © All Rights Reserved TreQna 2005
  • 22. Improve D Map improved process Define M Measure Pilot solution A Analyze I Improve C Control I Identify operating tolerance on significant factors © All Rights Reserved TreQna 2005
  • 23. Control D Ensure measurement system reliability for Define significant factors - Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ? M Measure Improved process capability A Analyze I Improve Sustenance Plan C Control - Statistical Process Control - Mistake Proofing - Control Plan C © All Rights Reserved TreQna 2005
  • 24. Control – Sustenance Plan Control Plan • Have the new operating procedures and standards been documented ? • What Statistical Process Control (SPC) tools will be used to monitor the process performance ? • Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? • What is the corrective action or reaction plan if any of the factors were to be out of control ? C © All Rights Reserved TreQna 2005
  • 25. Six Sigma Organization © All Rights Reserved TreQna 2005
  • 26. Six Sigma - Three Dimensions Customer Process A Process B Vendor Define Measure Analyze Improve Control Driven by customer needs Process Map Analysis LSL US L Methodology Led by Senior Mgmt Upper/Lower • specification • •••• ••••••••••• • Organization Tools limits •••••• ••••• •• Regression 35 100% 30 80% 25 20 60% 15 40% 10 20% 5 Process variation 0 0% Enabled by quality L K A F B C G R D team. Frequency Cumulative Frequency Pareto Chart © All Rights Reserved TreQna 2005
  • 27. The Quality Team Master Black Belt - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts - Backbone of Six Sigma Org Black Belt Black Belt - Mentor Green Belts - Full time resource - Deployed to complex or “high risk” projects Green Belt Green Belt - Part time or full time resource - Deployed to less complex projects Green Belt in areas of functional expertise © All Rights Reserved TreQna 2005
  • 28. Six Sigma – Career Option! • Basic - Six Sigma Awareness • Green Belt Projects Green Belt (GB) • Participate in Black Belt Projects • Assist business functions with day to day activities • Mentor/Train Green Belts • Black Belt Projects Black Belt (BB) • Change Agents • Work along with the business owners • Mentor/ Train Black Belts • Run Strategic projects Master Black Belt (MBB) • More Strategic than tactical role Highly paid! Work like a Consultant! Huge demand in the industry! Overall…A high flying Career!! © All Rights Reserved TreQna 2005
  • 29. Thank You © All Rights Reserved TreQna 2005

Editor's Notes

  1. Setting the expectation of audience. Following are the topics which would be covered not necessarily in the same order.