What is Six Sigma ?

1. Overview of Six Sigma History of Six Sigma What is Six Sigma? Why Six Sigma? Benefits of Six Sigma to you 2. Six Sigma as a Quality Level (Measurement) 1. 6s = 3.4 Defects Per Million Opportunities 2. Variation in the process 3. Six Sigma as a Method following A Structured Problem-Solving Approach 1. Define, Measure, Analyse, Improve, Control 4. Six Sigma as An Initiative that facilitates change 1. Dedicated, Trained employees 2. Critical Projects 3. Teams - Process Owners 5. Six Sigma as A Business Philosophy 1. Helps focus on Customer Critical Criteria (VOC) 2. Fact-driven (data), Measurement-based, Statistically structured 3. Rigor and discipline into the business
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History of Six Sigma

Creators of SIX SIGMA In 1986 Bill Smith a senior engineer designed Six Sigma. Dr Mikel Harry and Schroeder applied Six Sigma in Motorola. In 1990 Motorola, IBM, Zerox and Texas Instruments created the concepts of Black Belts. Six Sigma first a quality initiative, became a breakthrough strategy only in 1993. * Motrorola received the Malcolm Baldridge award for quality in 1988
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Other users of the Six Sigma methodology

Which companies have benefited from Six Sigma (6)?

History of Six Sigma

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History of Six Sigma

Products/Manufacturing
Mikel Harry Bob Galvin (1985)

Cost/Finance
Lawrence Bossidy (1994)

Products/Costs
Jack Welch (1995)

Products/Cost/Growth /Cash
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Jim McNerney (2001)

History of Six Sigma Six Sigma is a proven methodology that has resulted in significant benefit in major Organisations Six Sigma brings process improvement rigour and discipline in how Organisations work

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What is Six Sigma?

Bottom line: Six Sigma
Defines the Voice of the Customer Defines the goals of the business Defines performance metrics that tie to the business goals Identifies projects using performance metrics that will yield clear business results Applies advanced quality and statistical tools to achieve breakthrough financial performance that will reduce variation and increase customer satisfaction 6
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Why do Organisations Embrace Six Sigma?

Right Process for Business Decisions within organisation Provides Common Approach to Problem Solving Common Goals Institutes a common language throughout the organisation, with suppliers, and customers Develops transferable skills to all levels Provides Leadership Development throughout all disciplines within the organisation Most effective way to increase and accelerate business performance and customer quality
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What is Six Sigma? Definition of Six Sigma Six Sigma is a methodology for pursuing continuous quality improvement and reducing inherent variability. It requires a thorough process and product understanding and is clearly focused on customer driven expectations.
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What Does this Mean to your Stakeholders..

Six Sigma: Supporting Company Goals
Customers
Better Products Meet Needs Responsiveness

Employees
Development of Talent Energizing organisation

Shareholders
Growth Productivity Cost Cash EVA

Driving Six Sigma to the Bottom Line

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Course content
1. Overview of Six Sigma History of Six Sigma What is Six Sigma? Why Six Sigma? Benefits of Six Sigma to you 2. Six Sigma as a Quality Level (Measurement) that reduces variation 1. 6s = 3.4 Defects Per Million Opportunities 2. Reducing variation in a process 3. Six Sigma as a Method following A Structured Problem-Solving Approach 1. Focus on the Customer (VOC) 1. Define, Measure, Analyse, Improve, Control (DMAIC) 4. Six Sigma as An Initiative that facilitates change 1. Dedicated, Trained employees 2. Critical Projects 3. Teams - Process Owners 5. Six Sigma as A Business Philosophy 1. Helps focus on Customer Critical Criteria (VOC) 2. Fact-driven (data), Measurement-based, Statistically structured 3. Rigor and discipline into the business
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Six Sigma as a Quality Metrics

Six Sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a companies performance by identifying and eliminating "defects" in all operational and service- related processes Commonly defined as 3.4 defects per million opportunities. Implementing and improving quality control systems and procedures in the organisation
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A Quality level 6s = 3.4 Defects Per Million Opportunities

A sigma value is a metric used to relate the ability of a process to perform defect free work. The higher the sigma value the better the process is performing. As the sigma value of a process increases, Costs decrease Defects decrease Cycle time decreases

PPM PPM

2 3 4 5 6

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Sigma is a letter 12 in the Greek Alphabet

308,537 66,807 6,210 233 3.4

Is 99% 3.8 Sigma Good Enough?

3.8 Sigma 99% Good
20,000 lost articles of mail per hour Unsafe drinking water 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 prescriptions each year
RX

Six Sigma a Quality Metrics

Six Sigma

99.99966% Good
Seven articles lost per hour Unsafe drinking for one minute every seven months 1.7 incorrect operations per week One short or long landing every five years 68 wrong prescriptions each year

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Variation in a process
Everything we do involve a process, In every process whether it involves products or clients there is variation

Variation in the process is a very important for understanding Six Sigma.

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Why is Industry at 2- 3 Sigma The Problem

Off-Target
X XXX X X XX XXX X X

Variation
X X X X X X X X X X

On-Target
XXX XXX XXX X X XX X

Center Process

Reduce Spread

Six SixSigma Sigmamethodology methodologyidentifies identifiesprocesses processesthat thatare areoff-target, off-target, and/or have a high degree of variation, and corrects and/or have a high degree of variation, and correctsthe theprocess process

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Why is Industry at 2- 3 Sigma The Statistical view

Off-Target
X XXX X X XX X X XX
LSL USL

Variation
X X X
LSL

X X X X X X X
USL X

On-Target
XXX XXX XXX X X XX X
LSL

Center Process

Reduce Spread
USL

LSL = Lower spec limit USL = Upper spec limit

The statistical view of a problem

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Course content
1. Overview of Six Sigma History of Six Sigma What is Six Sigma? Why Six Sigma? Benefits of Six Sigma to you 2. Six Sigma as a Quality Level (Measurement) that reduces variation 1. 6s = 3.4 Defects Per Million Opportunities 2. Variation in the Process Six Sigma as a Method following A Structured Problem-Solving Approach 1. Focus on the Customer (VOC) 2. Define, Measure, Analyse, Improve, Control (DMAIC) Six Sigma as An Initiative that facilitates change 1. Dedicated, Trained employees 2. Critical Projects 3. Teams - Process Owners Six Sigma as A Business Philosophy 1. Helps focus on Customer Critical Criteria (VOC) 2. Fact-driven (data), Measurement-based, Statistically structured 3. Rigor and discipline into the business

3.

4.

5.

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Voice of the Customer (VOC) vs Voice of the Business (VOB)

Business Products
Disconnected Barrier

Business Processes

VOB

VOC

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Capability to meet Voice-of-the-Customer Requirements

Comes from great Marketing
Performance (VOC) Tolerances Natural (VOP) Tolerances

Comes from great Engineering

LSL

LCL

UCL

USL
VOP = Voice of the Physics githin the Product or Mfg. Process

Level of Product Robustness

USL - LSL = Cp = 2 6

VOP
What the customer wants

VOC

What Organisations will deliver

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Structured Problem solving through DMAIC methodology

A Structured Problem-Solving Approach
Define, Measure, Analyse, Improve, Control (DMAIC)

Six Sigma is compiled of a powerful set of tools and techniques that Follow strict guidelines to ensure the correct causes of difficulties are identified and the best solutions developed and implemented to solve any complex problem in the organisation

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Project selection
Breaking the pain or opportunity into manageable project

Strategy

Business Plan

Project Plan

Project Idea

Where we Want to be

Where we Are today

Project Selection
Focus Areas

GAP

BB Project
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Prioritisation

GB Project
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Project selection
Goal Tree PLANNING

Strategy

Business Plan
G1
G1A G1B G1C G1D G1E

Project Plan
Aa Ab Ac Ad Ae Af 1 2 3 4 5 6
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Strategy

GROWTH

G2 G3

COST

CASH

EXECUTION
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Data driven decision making

Practical Practical Problem Problem Statistical Statistical Problem Problem

y = f ( x1 , x2 ,..., x k )
Practical Practical Solution Solution Statistical Statistical Solution Solution
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The Filtering Effect.. Sifting through the Xs.

Bus ine s sC ase

DMAIC problem solving methodology

Xs = Key Process Input Variables

Tools
Project Charter Process Map MSA

Ys = Key Process Output Variables

Yield Rate Waste Sales EVA

Define Measure Analyse Improve Control

Many Xs
C&E Matrix Gage R&R

Reduced Xs
Few Key Xs
2-3 Critical Xs

FMEA Multi-Vari DOE

Initial Capability

Y=f(X)
Effectiveness Efficiency

Process simulation Process Improvement

Control Plan 24

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Optimized Process

The DMAIC Roadmap

Benefits to you..
Fully Integrative approach Tool Integration Training material as well as application tools integrated Training build around 2 case studies Application in real life projects Aligned to Registered Unit Standards
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1. Overview of Six Sigma

Course content

History of Six Sigma What is Six Sigma? Why Six Sigma? Benefits of Six Sigma to you 2. Six Sigma as a Quality Level (Measurement) that reduces variation 1. 6s = 3.4 Defects Per Million Opportunities 2. Variation in the process 3. Six Sigma as a Method following A Structured Problem-Solving Approach 1. Focus on the Customer (VOC) 2. Define, Measure, Analyse, Improve, Control (DMAIC) 4. Six Sigma as An Initiative that facilitates change 1. Dedicated, Trained employees 2. Critical Projects 3. Teams - Process Owners 5. Six Sigma as A Business Philosophy 1. Helps focus on Customer Critical Criteria (VOC) 2. Fact-driven (data), Measurement-based, Statistically structured 3. Rigor and discipline into the business
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A Change Initiative
An Initiative
Dedicated, trained employees to drive the change. Leading change setting the environment for organisation to improve their business performance

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Six Sigma Training

Te ch nic Si x a l D Sig ime m ns a ion

(C

ce im Ac ural D
ult

Six Six Sigma Sigma eProjects ) nc s Projects ion a t n p e

You cant focus only on the technical dimensions of a change process, but also on the sociopolitical and cultural dimensions
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Using Project Teams at every level in the Organisation

Master Black Belts
Deployment leaders, manage and coach BB BBs. Lead deployment effort

Black Belts
Project leaders, coach GB GBs lead huge organisational projects

Executives/Champions
Executive Executives Accountability for Six Sigma results

Green Belts
Lead Individual GB projects in own are of focus

Team Members
Supporting Strategic Projects. Process Experts 29 Copyright Novel Idea 2004

Six Sigma DNA

Define Phase: Identify the key internal process that Influences CTQs

Making Change Last

Technical Dimension

Acceptance

(6)

(Cultural)

Tool
Project Charter with project metrics High level view of the process Elevator Speech

Culture Change
VOC & CTQ Process Thinking Entitlement/ Best State Thinking Problem needs to be scoped Performance Metrics
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Six Sigma DNA

Measure Phase: Measure the defects generated relative to identified CTQs

Making Change Last

Technical Dimension

Acceptance

(6) Tools
Process Mapping C & E Matrix MSA Initial Capability Study Stakeholder Analysis

(Cultural)

Culture Change Process Thinking Prioritisation Need data for decision making Is data trust-worthy? What is my current ability? Dealing with Human Nature and Resistance
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Six Sigma DNA

Analyze Phase: Identify key variables that cause the defects

Making Change Last

Technical Dimension

Acceptance

(6) Tools FMEA Null Hypotheses/ Alternative Hypotheses Multi-Vari Study

(Cultural)

Culture Change Prevention and contingency plan Decision based on data analysis not by intuition / experience Identify the root cause of 32 failure

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Six Sigma DNA

Improve Phase: Modify the process to stay within the Acceptable ranges

Making Change Last

Technical Dimension

Acceptance

(6)

(Cultural)

Tools
DOE, Simulation and Optimisation Process Improvement

Culture Change
Experiment before full scale Implementation

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Six Sigma DNA

Control Phase: Ensure the modified process with new key Variables stay within the acceptable ranges

Making Change Last

Technical Dimension

Acceptance

(6)

(Cultural)

Tools
Control plan Process Optimisation Final capability

Culture Change
Sustain the gains Process variation reduction What is my new ability?
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A Simple Approach to Breakthrough Performance

The right metrics and projects + The right people + The right roadmap and tools + The right support = The right results
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Presented by

Annetjie Russell, Statsoft SA

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General Overview
Established in 1984 Represented in all major markets, on all continents, with 20 overseas offices Estimated user base of over 600,000

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Offices
Headquarters: Tulsa, OK USA

20 overseas offices on all continents

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Customer Base
Research and Development Social Science Finance & Investment Engineering Quality Control and Improvement Market Research Telecommunications and countless others
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Customer Base
BP Amoco, TotalFinaElf, BASF(Chem R&D, Man SPC) GlaxoSmithkline, Merck, McNeill(Pharma R&D, SPC, DM) Schlumberger(Man SPC, Six Sigma) Caterpillar, John Deere(Capital Equip Man, WebSPC) Intel, Texas Instruments (Semiconductor Man)
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Representative Subset of Analyses

General Linear Models Multiple Regression Time Series Analysis Principal Components Neural Networks Quality Control Charts Process Capability Design of Experiments Weibull Analysis Gage R&R

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Enterprise-wide Integrated Systems

STATISTICA Enterprise-wide Data Mining System (Data Miner)

STATISTICA Enterprise-wide Data Analysis System (SEDAS)

STATISTICA Enterprise-wide SPC System (SEWSS)

WebSTATISTICA Server applications

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Enterprise-wide Integrated Systems

STATISTICA Document Management System(SDMS) STATISTICA OLAP STATISTICA Data Warehouse STATISTICA Monitoring and Alerting Server STATISTICA Knowledge Portal STATISTICA Interactive Knowledge Portal
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Services
Training Consulting Technical Support Custom Programming System Integration
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Summary
Peerless software solutions for 19 years Unprecedented review history Worldwide training, sales and support Comprehensive selection of enterprise and desktop solutions

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