Professional Documents
Culture Documents
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Introduction
Chapter 2 :
Chapter 3:
focus on processes and the existence of a company-wide language for describing the
capability of processes.
Six Sigma is an important structured program for improving business
Processes and, as many voices pretend, it represents the latest incarnation of the quality
movement. The program, grounded in efforts to improve manufacturing quality during the
1980s, brings the methods and analytic tools of engineers to bear on the questions, what is
really important for customers? And where will changes to work processes must
improve these points? The basic idea behind the Six Sigma philosophy is to continuously
reduce product and process variation. Therefore an important part of Six Sigma work is to
define and measure variation with the intent of discovering its causes and to develop efficient
operational means to control and reduce the variation. The expected outcomes of Six Sigma
efforts are:
1) Faster and more robust product development,
2) Imore efficient and capable manufacturing processes,
3) More confident overall business performance.
In order to reduce the variation to a very low level, the first step is to "design
for productivity". This means that designers configure a product in such a manner that its
performance is "shielded" against variation. By doing this, the organization can be sure that
its products will consistently perform to the specified levels as so all of the product will be on
target with minimum differences between units of product. The next step is to find out,
control and eventually eliminate all main causes of variation in the manufacturing processes
involved in both the supplied parts and the final assembly. This is done using statistical
process control and other tools including
1) Computer simulation,
2) Short cycle manufacturing,
3) Part standardization and supplier qualification,
4) Supplier statistical process control,
5) Participative management practices,
6) Design of experiments, measurement system analysis,
7) Failure mode and effect analysis.
With this basement already built, it can be considered that
The Six Sigma companies are concerned with the reduction of variation and
with the reduction of defective products and services. However, they often focus on defects
per million opportunities or DPMO as metric, and their performance standards are:
1. A 3 Sigma process produces less than 66 810 DPMO.
2. A 4 Sigma process produces less than 6 210 DPMO.
3. A 5 Sigma process produces less than 233 DPMO.
4. A 6 Sigma process produces less than 3.4 DPMO.
But, as a Polaroid executive pointed out, Six Sigma practitioners do not simply focus on
defects, they concentrate on improvement of the processes that produce the defects. This
focus demonstrates the amount of change required and the kind of improvement in quality
that has to be achieved by firms.
Chapter 4:
* Why Sigma ? *
Sigma, (...,is a letter in the Greek alphabet. It is used as a symbol to denote
the standard deviation of a process (standard deviation is a measure of variation). A process
with six sigma capability means having six standard deviations between the process mean
and either specification limit. Essentially, process variation is reduced so that no more than
3.4 parts per million fall outside the specification limits. Hence, as a metric, the higher the
number of sigmas, the better. In most companies, processes operate between Three and Four
Sigmas. At the Three Sigma level, there are about 66,800 dpmo or defects per million
opportunities (as in opportunities for error). At Four Sigma, it is 6,210 dpmo. And at Six
Sigma, it is 3.4 dpmo. The table above compares the Sigma level with yield and dpmo from
One Sigma to Six Sigma. (Table1)
Chapter 5:
* The Methodologies *
Six Sigma methodology breaks down into 12 steps:
a) MEASURE
1. Select the characteristic critical-to-quality (CTQ)
2. Define performance standards
3. Validate measurement system
b) ANALYZE
4. Establish product capability
5. Define performance objectives
6. Identify variation sources
c) IMPROVE
7. Screen potential causes
8. Discover variable relationship
9. Establish operating tolerances
d) CONTROL
10. Validate measurement system
11. Determine process capability
12. Implement process controls
There are basically two Six Sigma methodologies. One for improvement, and
one for the design of a product, service or process. Six Sigma Improvement follows
The D-M-A-I-C cycle, as follows:
1:- Define identifying, prioritizing, and selecting the right project(s)
2:- Measure key product, service or process characteristics, parameters and
performance
finance, marketing and information technology. During their two to three year stint as fulltime Black Belts, they report to Master Black Belts, and there are Green Belts to support
them in their project work. Literally everything a company does is a candidate for Six Sigma.
Whether it is design, yield, productivity, communication, paperwork, training, response time,
attitude or organizational structure it is all of those and more. Six Sigma is already making
a strong impact in a wide range of functions and processes, including design and
manufacturing processes, supply chain and e-business processes, and transactional processes
such as procurement, writing an insurance policy or training new workers. At Honeywell, its
Six Sigma implementation is called Six Sigma Plus. It is positioned as the companys
principal engine for driving growth and productivity across all its businesses, as well as
administrative functions. Honeywell has realized $2.2 billion in cumulative savings from Six
Sigma-related activities. It saved more than $600 million in 2000 and this year it expects Six
Sigma Plus cost savings to total at least as much. At its corporate website, Honey-well states,
Through Six Sigma Plus, Honeywell empowers its employees with the skills and tools
necessary to create more value for its customers; improve its processes, products, and
services, and grow the company by capitalizing on the power of the Internet through eBusiness. For instance, a Six Sigma Plus team met a critical customer need by creating the
first and largest Internet auction site for used truck and automotive parts. The site could
generate more than $100 million in additional high margin revenue for Honeywell within five
years. Another Six Sigma Plus team uses the Internet to accelerate the retrieval of customer
payments.
By using Six Sigma Plus methodologies, it has seen an improvement in cash
flow worth $6 million over 14 months. The possibilities for improvement and cost savings
are significant, but Six Sigma requires a commitment of time, talent, dedication, disciplined
persistence and of course, financial investment. It is a pervasive effort that creates
unprecedented focus and teamwork at all levels throughout a company.
Chapter 6:
* Implementation *
Six Sigma can be a great success or an expensive failure, depending on how it is deployed.
Successful implementation should be viewed as on going process of infusing the Six Sigma
methodology into an organizations culture such that employees use Six Sigma techniques when they
approach their everyday work
Six Sigma implementation process (fig 1), requires up front work to develop awareness and
generate buy in before projects are started. The key steps in overall process are: -
1) Executive Level Training: The process of implementing Six Sigma begins with the training of executives. For true
success with Six Sigma, Executive Level leadership is needed
That asks the right questions leading to a wise application of statistical tools & other Six Sigma
methodology across organizational boundaries. Six Sigma should not be considered just another
initiative but should integrate other programs as an overall business strategy at executive level
2) Establish A Customer Focus Mindset : Establishing a customer focus mindset within organization goes hand in hand with senior
management leadership when creating a successful Six Sigma business strategy
Every complaint from customer should be viewed as an opportunity for growth and
increased market share, a spot light on areas needing process improvement focus. The key to
success in this initial step is to make it easy for your customers comments to be heard. Learning
through customer feedback of what works & what does not will help to established a mindset of
continual process improvement within your organization
3) Define Strategic Goals :Six Sigma must be viewed as a method to meet strategic goals, these goals need to be
measurable & have the focus of executive management. It requires communicative to your
employees what is strategic & why & following up those statements with executive focus & metrics
Six Sigma should create an infrastructure that offers a tactical approach to determine the
best solution for a given project. There has to be accountability.
There must be enthusiasm. It is just similar to self-help program. What you put into it is what you
will get out of it. If it is utilized as a business strategy, it becomes a focused approach for meeting
the strategic goals defined by management, allowing the application of resources in critical areas to
the bottom line.
Many companies attempt to improve products with numerous small changes, however
changes are frequently not documented & the associated results not reported. Substantial results are
rarely obtained with this halfhearted method of change. When employees in this type of corporate
culture hear of a new initiative such as Six Sigma
They wonder what will be different.
Companies who not only master the technical side of Six Sigma but also overcome the
cultural challenges associated with change can realize bottom line benefits. Launching Six Sigma
business strategies is an excellent opportunity to access current culture in organization by verifying
the following things
How does your company historically dealt with change initiatives?
Does company make consistent changes that doesnt last?
How effective are your project teams?
Are you frequently focusing on the same problem?
How do your employees attack problems & conduct their daily work?
What is required within your company culture to make continual process improvement a lasting
change?
What will prevent your company from achieving success with Six Sigma?
A Force Field Diagram can be created to facilitate the understanding of how well Six
Sigma integrates with current culture in an organization (fig2)
By evaluating and weighting the key cultural drives and restraints to embracing Six
Sigma, organization can develops action plans that enhance key drivers and mitigate critical restraints.
Organization need to have a direction that ingrains a process focused productive mindset into the way of
all your employees who approach their everyday work. When successful Six Sigma becomes part of
your culture.
5) Determining Strategic Six Sigma Metrics : There is no one size fits all metric applicable to every Six Sigma project effective
metrics are cross functional, providing a holistic view of the process an contributing insight to the
project team. Many resources can be wasted if Six Sigma metrics are not applied wisely.
a. Sigma Quality Level: A basic goal of a Six Sigma program might be to produce at least
99.99966 %
quality at process step or part level within an assembly .A Sigma Quality Level Metric can
be deceiving. Determining the number of opportunities for any given process can be
dramatically different individuals.
The Sigma Quality Level Metric can only be determine when there are
specifications so it is not useful in service or transactional situation
b. Process Capability Indices: Another Six Sigma Metric that is used to describe how well a process meets
requirement is process capability. A Six Sigma Quality level process is set to translate to
process capability index value requirement of 2.0
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Six Sigma training should also address the wise use of statistical
Methodologies, providing insight to how one can best determine what is truly causing
problem.
6)
Project Execution : -
From the process map it is evident that there is much upfront work required to establish a
support infrastructure and strategic goals before project work begins. It is the job of executive & the
steering committee to integrate the voice of customer into strategic goals of organization. Much
work is done before project are even started to transform comprehensive customer feedback &
internal business goals into strategic Six Sigma goals.
* Implementation Strategies :There are three general strategies of Six Sigma deployment:
1 - Six Sigma organization;
2 - Six Sigma engineering organization;
3 - Strategically selected projects and individuals.
The first strategy, "Six Sigma organization" uses a methodology of training all
individuals, in all areas, in the fundamental concepts and tools involved in the application of
Six Sigma. Using this method, a high level of awareness can be created throughout an
organization, and a common language and problem-solving approach adopted. The "Six
Sigma engineering organization" strategy focuses on training and development within the
design and manufacturing engineering departments of the firm. In this case, resources are
more focused and there is an emphasis on project applications. The third category, "Strategic
selection", refers to the development of strategically - selected employees. "These individuals
are assigned complex projects identified by needs and objectives critical to the site or
organization"
Here there is a great amount of flexibility in training in comparison to the
previous two approaches. Training is provided as required by the very strong project focus.
As with other quality programs such as TQM, defining SIX Sigma varies between
organizations. For some firms, implementing SIX Sigma means solely using the specific
problem-solving stages involved; others use one or more of the strategies outlined in Table I,
while other companies may have different ways of deploying SIX Sigma concepts and tools.
Following the examination of how different companies approach SIX Sigma implementation
it will attempt to categorize the companies in one or other of the above categories. In order to
set the discussions of the companies in context it will be first examined what is meant in
general by a "Six Sigma Black Belt".
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Master Black Belts and Green Belts :Perhaps the most striking feature of the Six Sigma companies is that they
have among their employees a high profile group known as Black Belts. (Most of the
companies also have Master Black Belts and Green Belts). The term Six Sigma Black Belt
was first introduced by the Motorola Corporation to describe employees who are trained and
experienced in applying statistical techniques to business processes and procedures so that
they can make major positive contributions to the bottom line . A Black Belt devotes much, if
not all, of his/her time to the important task of leading process improvement projects. Black
Belts are high potential employees who have received extensive training in statistics,
interpersonal skills, problem solving, project management, etc. Black Belt trained employees
are used to assist in measuring how well their present business strategies are meeting
company objectives, as well as developing strategies to reduce costs, cycle times and defects
while increasing profitability and competitive advantage . Typically, the Black Belt training
has duration of four weeks: it may consist of 2 two-week courses, or 4 one-week courses, or a
succession of shorter courses. In many cases, the Black Belt does not become qualified until
he/she has completed the training and also led one or two projects to a successful conclusion.
Training to become a Black Belt includes a rigorous learning schedule of different statistical
techniques, as well as the practice of applying these tools in real-life business situations .
Allied to these criteria, before being awarded Black Belt status, the person must demonstrate
problem-solving, project management and team leadership skills. The systematic training
approach followed typically involves the five (sometimes only the last four are mentioned)
problem solving-steps of: define, measure, analyze, improve and control . Black Belts use the
five-step approach to instigate cost-saving projects as follows :
1. definition of problem,
2. measurement of characteristics that are critical-to-quality (CTQ),
3. analysis using benchmarking and gap studies,
4. improvement
5. control.
As with the introduction of TQM and other projects involving major change,
the way in which Six Sigma Black Belts are trained and utilized has important repercussions
for the success or otherwise of the initiative. Black Belt projects often last for four to eight
months, with each Black Belt having two or more projects running in parallel. Many Black
Belts appear to enjoy high job satisfaction and high status within their company. But it does
not last forever. It may well be company policy that a certified Black Belt should move on
after two years. A small number would become Master Black Belts, but many would return to
line management with enhanced prospects of promotion. Consequently, the most noticeable
features of the Six Sigma companies are the company-wide discussion of process capability
and the existence of Black Belts who are charged with the responsibility for improving the
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processes. If these were the only characteristics shared by these successful companies,
anybody would wonder if Six Sigma was the root cause of this success. However, a closer
examination of the less visible features reveals, in every case, a company culture that strongly
supports the work of the Black Belts and their project team members.
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14
Index
1
Introduction
W hy Sigma ?
Methodologies
Implementations
Certification
Conclusion
10
References
Chapter 10:
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* References *
*
Sr
No
Papers :Publication
Paper
Paper Name
Author
G.Michael Smith
SAE
2001-01-1117
Forrest W.Breyfogle
Becki Meadows
SAE
2001-01-1109
Hans J. Bajaria
SAE
2001-01-1116
D.H.Stamatis
R.A.Munro.
SAE
2002-01-0895
Joseph A DeFeo
Juran
Institute
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* Websites:www.juran.com
www.isixsigma.com
www.qualityamerica.com
www.smartersolutions.com
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Fig 1.
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Chapter 8:
Point 1:Short term PPM associated with six sigma is 0.001 long term PPM is 3.4.
Key Idea 1:The principal idea is to solve problems rather than becoming to concerned
about reporting achievements in terms of process sigma lever.
Counterpoint 3:Robustness can altogether eliminate the need for reducing variation.
Point 4:Six sigma techniques in include a wide variety of methods that can handle
any problem situation.
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Counterpoint 5:Industry evils, which have consuming large amounts of money, are not even
considered.
Key Idea 5:Six sigma strategy has not been directed at creating a breakthrough in the
class of industry money gobblers. Any breakthrough strategy must in include
attack on industry evils.
Point 6:Six sigma is a vertical system. It starts with situation to be resolved and ends
with permanent solution. Simultaneously, it proves that the benefits of such
an encounter far outweigh the resources expended.
Counterpoint 6:Creators of six sigma system have never discussed the difference between
horizontal systems and vertical systems. Industries need a well defined and
well managed balance between the two.
Key Idea 6:Organizations actually need both vertical and horizontal systems. Vertical
system acts as drivers whereas horizontal systems are driven. Vertical
systems solve problems. Horizontal systems hold solution in place.
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Chapter 7:
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Chapter 9:
* Conclusion *
Six sigma is a long term commitment treating deployment as a process allows objective
analysis of all the aspects of the process including project selection and scooping projects should be
selected that meet the goals of an organizations business strategy six sigma can then be utilized as a
roadmap to effectively meet those goals.
Utilizing lessons learned and incorporating them into subsequent waves of an
implementation plan creates a closed feedback loop and real opportunities for improvement. Deploying
six sigma through projects, can lead to dramatic bottom line benefits. If organization inverts the time
and executive energy necessary to implement a process to create a successful six sigma infrastructure.
Through wise implementation of six sigma, the success of individual projects can build
upon each other gaining the sustained attention of executive management and resulting in a corporate
culture change from a reactive or fire fighting environment to a learning organization. Understanding
threats and recognizing new opportunities for growth, not only to survive but to actually thrive within
competitive environments.
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