Six Sigma is a methodology that uses statistical tools and lean principles to reduce costs and improve processes. It aims to reduce defects and variation and improve quality through disciplined project management. Companies implement Six Sigma through deployments that involve training employees in Six Sigma roles and tools. Successful deployments require executive commitment, selecting strategic projects, and tracking results to drive culture change and sustain improvements.

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The ABCs of Six Sigma
Six Sigma Methodology in today’s
corporate environment

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A to Z for today
• Why are companies interested?
• What is Six Sigma (basic)?
• History
• Methodology
• What is a deployment?
• Critical Success Factors
• WIIFM

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Why Today’s Six Sigma?
• Cost Reduction
– Resource Allocation, Project Prioritization
• Revenue Growth
– Customer Retention
• Culture Change
– Data-based Decision Making
– Project Management Skills
• Leadership Development
• Execution Capability

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What is Six Sigma?
– Methodology that helps companies
reduce costs and accelerate growth
through discipline and long-term culture change
– Improves business processes companywide, by
using tools to build process capability, by reducing
variation, and improving quality
– Focus is on delighting the customer (voice of the
customer) & providing excellent service in all
business functions, not just manufacturing

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What is Six Sigma?
• Work is completed in a Project Team
– Led by a company’s employee who is a
trained Six Sigma expert. These project
managers have titles related to their
level of Six Sigma training, such as Black
Belt or Green Belt.
– The team is populated with members
who also have some basic Six Sigma
training, such as yellow or white belts.

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Six Sigma Tools
• Process MappingProcess Mapping
• Failure Mode & Effect AnalysisFailure Mode & Effect Analysis
• Measurement System EvaluationMeasurement System Evaluation
• Statistical ToolsStatistical Tools
• Design of ExperimentsDesign of Experiments
• Control PlanControl Plan
• Quality Function Deployment (QFD)Quality Function Deployment (QFD)
• Activity Based ManagementActivity Based Management
• Enterprise Resource PlanningEnterprise Resource Planning
• Lean EnterpriseLean Enterprise
• Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)

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Implementation Road MapImplementation Road Map
Identify Core processes and Key CustomersIdentify Core processes and Key Customers
Defining Customers RequirementsDefining Customers Requirements
Measuring Current Performance.Measuring Current Performance.
Six Sigma Process Improvements.Six Sigma Process Improvements.
Six Sigma Process Design/ Redesign.Six Sigma Process Design/ Redesign.
Expending and Integrating theExpending and Integrating the
Six Sigma SystemSix Sigma System

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Identify Core processes and Key CustomersIdentify Core processes and Key Customers
Identify core and Support ProcessesIdentify core and Support Processes
Define output and Key CustomersDefine output and Key Customers
Create high level process Maps.Create high level process Maps.

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Defining Customers RequirementsDefining Customers Requirements
Gather Customer Data, DevelopGather Customer Data, Develop
voice of the customer’ Strategy.voice of the customer’ Strategy.
–Develop performance standardsDevelop performance standards
and requirement statements.and requirement statements.
Analyze and prioritizeAnalyze and prioritize
requirements.requirements.

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Measuring Current Performance.Measuring Current Performance.
Plan and execute measurePlan and execute measure
of performanceof performance
against customer requirements.against customer requirements.
Develop baseline defectDevelop baseline defect
measure andmeasure and
identify improvement opportunities.identify improvement opportunities.

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Six Sigma Process Improvements/Six Sigma Process Design RedesignSix Sigma Process Improvements/Six Sigma Process Design Redesign ..
Select Improvement Projects &
Develop project Rationale
Design /Redesign and implement
effective new work process
Analyze, develop & implement
Root cause focused solution.

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Expending and Integrating the Six Sigma System
Implement ongoing measures
& actions to sustain the improvement.
Define Responsibility for
process ownership & management.
Execute “closed-loop” management
And drive to Six Sigma.

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Six Sigma is also a measure of variability. It is a name given to
indicate how much of the data falls within the customers’ requirements.
The higher the process sigma, the more of the process outputs,
products and services, meet customers’ requirements – or, the fewer
the defects.
Sigma is the Greek letter that is a statistical
unit of measurement used to define the
standard deviation of a population. It measures
the variability or spread of the data.
Statistically Speaking

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σ
2
3
4
5
6
308,537
66,807
6,210
233
3.4
69.2%
93.32%
99.379%
99.977%
99.9997%
Yield
Defects per
Million Opportunities
DPMO
Statistically Speaking

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• Six Sigma Black Belt methodology began in late 80’s/early 90’s
– Motorola popularized corporate use of methodology
• Next wave of companies to utilize Six Sigma:
– GE
– Allied Signal
– Bombardier
– Sony
• Current deployments in Six Sigma have been broader in application and
industry
– Caterpillar – across enterprise and into dealer / supplier
– USAA Financial Services
– Starwood Hotels and Resorts
– Home Depot
– 3M
• Common characteristics
– Involves use of statistical tools on projects that yield high ROI.
– Top-down program with Executive leadership
– Utilizes full-time, Six Sigma trained project managers
History

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Six Sigma is a System
 DMAIC improves existing processes, products, services, designs, plants, etc.
 DFSS generates new processes, products, services, plants, etc.
 Deployment & Infrastructure Management is the system that:
 Prioritizes organizational action on the right things
 Drives effective action
 Ensures sustainability and consistency
Improvement
Methodology
Design/
Redesign
Methodology
Deployment &
Infrastructure
Management
Define &Define &
MeasureMeasure
Define &Define &
MeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControl
Initiate &Initiate &
DefineDefine
Initiate &Initiate &
DefineDefine DesignDesignDesignDesign OptimizeOptimizeOptimizeOptimize VerifyVerifyVerifyVerify
DMAIC Methodology for Process Improvement
DFSS Methodology for Process/Product Design

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Deployment Process for
Driving Sustainable Results
StrategyStrategy
IntegrationIntegration
Quality of
Thinking
Commitment
Focus
ExecutionExecution
BuildingBuilding
InfrastructureInfrastructure
Prioritize the value
streams with the
best
alignment to
Strategy
Train and Deploy
Six Sigma teams
on the highest
priority
projects
Management engagement, resource
commitment, productive teams

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Analyze ControlImproveMeasureDefine
• Project ID Tools
• Project Definition Form
• Value of Cycle Time
• Net Present Value Analysis
• Internal Rate of Return Analysis
• Discounted Cash Flow Analysis
• PIP Management Process
• RACI
• Quad Charts
• Process Mapping
• Value Stream Mapping
• Process Cycle Efficiency
• Lean Six Sigma Metrics
• Process Sizing
• Kaizen Events
• Multi-Voting Techniques
• Pareto Charts
• C&E/Fishbone Diagrams
• FMEA
• Check Sheets
• Run Charts
• Control Charts
• Gage R&R
• Subjective Measurement Systems
• Cp & Cpk
• SupplyChainAccelerator
S
M
Time Trap Analysis
• Analytical Batch Sizing
• Multi-Vari
• Box Plots
• Interaction Plots
• Regression
• ANOVA
• C&E Matrices
• FMEA
• Brainstorming, Affinity
• Benchmarking
• Kaizen Events
• Pull Systems
• Generic
• Replenishment
• Part Stratification
• Setup Reduction
• TPM, 5S
• Process Flow
• Line Balancing
• DOE
• Hypothesis Testing
• Force Field
• Tree Diagrams
• Gantt Charts
• Check Sheets
• Run Charts
• Histograms
• Scatter Diagrams
• Control Charts
• Visual Control Tools
• Poka-Yoke
• Pareto Charts
• Interactive Reviews
Lean tools highlighted in red
Lean & Six Sigma Tools

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What’s the difference?
• Infrastructure and System
• Burning Platform
• Executive Driven - Visibility
• Complete Company Involvement
• Full-time Resources (getting most attention)
• Project Management Methodology
– Chartering and Scoping
• Measurement and Tracking

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Deployment Components
• What’s the strategy?
– How fast, how deep, how broad
• Who are the key players?
• What curriculum and training partner?
• Project Selection
• Communication
• Training and Certification
• Tracking and Reporting

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Deployment Must Haves
1. Full executive commitment (CEO and direct reports)
2. P&L/Business owners must be accountable for results and
should own and commit resources – typically 1% of population as
Black Belts
3. Select projects to support business needs (strategic, financial
objectives, customers)
4. Broad-based training in Six Sigma tools and team leadership
skills
5. Actively manage PIP (Projects in Process) to keep project cycle
times short and show results quickly
6. Rigorously measure and track results (projects and deployment)
7. Drive culture change from both top-down and bottom-up
perspective – The Soft Stuff is the Hard Stuff
8. Use A -Team for deployment (consultants, program managers, 1st
wave belts)

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Three Potential Deployment
Alternatives – Pro’s and Con’s
Global
Deployment
• Overwhelms organizational opposition
• Largest mass to generate results and
momentum
• Highest ROI from economies of scale on
cost and acceleration of benefits
• Requires top level headroom
and commitment
• Intense planning effort upfront
• Required effort is
underestimated
Staged
Deployment
• Provides critical mass necessary to
generate results and momentum
• Can adjust as waves follow (DMAIC –
DFSS)
• Faster start-up (less intense design, not
tied to open-class schedule)
• Total transformation may be
slowed
Train a Few
Black Belts
• Low total cost
• Exposure to other organizations’
application of process
• Good approach if “experimentation”
is a key objective
• Small/No business impact
• High risk of organization
“rejection” because
organization does not
think management is
serious
AlternativeAlternative Pro’sPro’s Con’sCon’s

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All Employees
• Understand vision
• Apply concepts to their
job and work area
• Owns vision, direct,
integration, results
• Leads change
• Project owner
• Implements solutions
• Owns financial results
• Part time as part of job
• Trains and coaches
Black Belts and Six
Sigma Green Belts
• Leads large/complex
projects
• Full time
• Leads and Facilitates
problem solving
• Trains and coaches
Project Teams
• Full-time
• Participate on Black
Belts teams and/or lead
small projects
• Part time on projects
• Provide project-
specific support
• Part time
• Leads business unit
performance improvement
• Full time
DeploymentDeployment
ChampionsChampions
ProjectProject
SponsorsSponsors
MasterMaster
Black BeltsBlack Belts
Project TeamProject Team
MembersMembers
Executives /Executives /
BU LeadershipBU Leadership
Green BeltsGreen Belts Black BeltsBlack Belts
Six Sigma Commitment
Required at Every Level

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Applying Six Sigma
to
Service
and
Manufacturing

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Six Sigma in ServicesSix Sigma in Services
• Start with the processStart with the process
 Investigate and rediscover your processInvestigate and rediscover your process
• Fine-tune the problemFine-tune the problem
 Problem definition and scaling of the project.Problem definition and scaling of the project.
• Making good use of facts and data to reduceMaking good use of facts and data to reduce
ambiguity.ambiguity.
• Don’t overemphasize statisticsDon’t overemphasize statistics
 Many service groups are not ready for detailedMany service groups are not ready for detailed
statistics at the outset, timing is very important.statistics at the outset, timing is very important.

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Six Sigma in ManufacturingSix Sigma in Manufacturing
• Adopting a broader perspectiveAdopting a broader perspective
- Communication and coordination all along theCommunication and coordination all along the
critical process not production in isolation.critical process not production in isolation.
• Moving past “certification” to ImprovementMoving past “certification” to Improvement
- Not focusing on just certification andNot focusing on just certification and
documentation, but improving the processes.documentation, but improving the processes.
• Adapting tools to your manufacturingAdapting tools to your manufacturing
environmentenvironment
- Select, apply, and adapt methods and ideas to fit- Select, apply, and adapt methods and ideas to fit
your organization.your organization.

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Obvious AreasObvious Areas
forfor
ImprovementImprovement

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Internal DefectsInternal Defects
• Any scrap produced by your processesAny scrap produced by your processes
• Any item reworked in a process (sales contracts,Any item reworked in a process (sales contracts,
invoices, surgeries, software, etc.)invoices, surgeries, software, etc.)
• Any process with high variation in the productAny process with high variation in the product
outputoutput
• Any process with high variation in the materialAny process with high variation in the material
consumptionconsumption
• Any process with many “hand-offs” betweenAny process with many “hand-offs” between
individuals or business groupsindividuals or business groups

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External DefectsExternal Defects
• Audits (customer, regulatory or internal )Audits (customer, regulatory or internal )
discovering non-compliance issuesdiscovering non-compliance issues
• Any out of specification (customer,Any out of specification (customer,
regulatory or internal) outputregulatory or internal) output
• Any inspection process in yourAny inspection process in your
organizationorganization

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Efficiency/Capacity IssuesEfficiency/Capacity Issues
• Processes producing less than expectedProcesses producing less than expected
• Processes requiring overtime not requested by aProcesses requiring overtime not requested by a
customercustomer
• Processes requiring cycle times in excess ofProcesses requiring cycle times in excess of
expectationsexpectations
• Processes with computer/machine downtimeProcesses with computer/machine downtime
• Process requiring expedited shipping andProcess requiring expedited shipping and
associated costs due to delayed outputassociated costs due to delayed output
productionproduction
• Any process that has added labor to make theAny process that has added labor to make the
required cyclerequired cycle

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Understanding Process VariationUnderstanding Process Variation
• How much variation is there in your incoming materialsHow much variation is there in your incoming materials
and/or process parameters and how does this affect yourand/or process parameters and how does this affect your
output?output?
• Where do you need the input controlled to always have aWhere do you need the input controlled to always have a
good output?good output?
• Can you scientifically adjust your process to compensateCan you scientifically adjust your process to compensate
for changing material, weather, etc.?for changing material, weather, etc.?
• Can your Black Belt help your supplier do a project toCan your Black Belt help your supplier do a project to
control the incoming product where you need it?control the incoming product where you need it?
• Does understanding your inputs allow you to produce aDoes understanding your inputs allow you to produce a
good part using less materialgood part using less material

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Certification
• Common certification process for Master Black Belt, Black Belt,
Green Belt
• Based on training, testing, experience and successful projects
– Participates in all SS training and passes all exam work
– Successfully complete two projects
– Endorsement from Trainer of successful completion of classroom
portion of training
– Endorsement from Coach confirming application of SS principles
in project work
– Endorsement from all Project Sponsors stipulating to the effective
use of SS in completion of projects.
– Endorsement from Deployment Champion as to the application of
SS principles through the control phase for the projects assigned

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Time Implications
• Actual training time
– Black Belt: 5 weeks within 5 months
– Green Belts: 2 weeks within 2 months
– Yellow Belt: 1 week
– Project Management Classes: as needed
– Software Training: determined by individual need
• Mentoring Time
– Between each set of training weeks, the belt candidate receives
4-8 hours of individual mentoring
• Project Work
– Black Belt: Full-time
– Green Belt: 25% of their time (on average)
– Yellow Belt: depends on project

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Characteristics of a
Good Black Belt
• Team Facilitation – Strong ability to lead effective teams
• Problem Solving – Proven orientation to be a problem solver
• Process Orientation – Demonstrated ability to understand and
identify process vs. functions
• Change Facilitation – Demonstrated ability to drive change across
functional boundaries
• Communication Skills – Ability to engage a wider audience
through a variety of media, but including presentation
• Computer Knowledge – Ability to effectively utilize technology,
including Microsoft Office applications, or applicable, and the web
• Financial Skills – Ability to understand basic financial documents
(I.e Income statement and balance sheet) and develop project
based cost/benefit analysis
• Program and Project Management – Ability to develop a workplan
and actively lead a team through it’s completion

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WIIFM
(What’s In It For Me?)
• Six Sigma Certification
– Internal / external
• Manage Six Sigma Resources
• Internal Collaboration Role
• Help stakeholders understand how various
project tools, reporting requirements, teams,
and methods can work together and enhance
results
• General knowledge

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Six Sigma Benefits
• Delivers shareholder valueDelivers shareholder value
• Generates very high return on investmentGenerates very high return on investment
• Translates strategic goals into resultsTranslates strategic goals into results
• Delivers dramatic performance improvementsDelivers dramatic performance improvements
within monthswithin months
• Increases revenue and reduces costsIncreases revenue and reduces costs
simultaneouslysimultaneously
• Drives core processes and customer serviceDrives core processes and customer service
excellenceexcellence
• Developers and entrepreneurial cultureDevelopers and entrepreneurial culture

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Thank
You