Six Sigma Awareness

Programme
Contents
What is Quality
Why Six Sigma
What is Six Sigma
Variation, and Six Sigma basics
The DMAIC cycle


Completely satisfying agreed
customer requirements at the
lowest internal cost.
What is quality ?
Customer Focus
Meeting customer requirements
Achieve complete customer satisfaction
Measure level of achievement
Customer is the ultimate judge
Customer Centric Quality
View quality externally
Customer Perspective
Meet all customer commitments
Continuous improvement
Systematic
Scientific
Fact based
Attitude & Discipline
Quality Culture
ISO 9000
Total Quality Management
Robust Designs
CMM
Six Sigma
Popular Quality Initiatives
What does our customer want from us?
On Time Delivery
Quality
Reliability
Competitive
Product
Six sigma - the most effective tool to drive customer benefits
Why Pursue Six Sigma?
Proven
Motorola (1987)
Texas Instruments (1988)
Asea Brown Boveri (1993)
Allied Signal (1993)
GE

Comprehensive
Philosophy
Tools
Business Metrics

Flexible
Finance / Information Management
Manufacturing / Design
Sales / Service
Consistent
Six Sigma Is A Journey . Not A Destination
Sigma is a statistical unit of measure that reflects on the process
capability.

The sigma value is a metric which indicates how well a process is
performing -- it measures the capability of a process to perform
defect-free work.

The higher the sigma capability, the better.

Six Sigma means having as less as 3.4 defects when provided with
an opportunity to create one million defects.

Six Sigma is a rigorous, focused and highly effective implementation
of proven quality principles and techniques

What is 6 ?
Six Sigma: Changing Focus from Output to Process
Y = f (X)
Y Effect
Dependent Symptom
Output Monitor
X1XN Cause
Independent Problem
Input-Process Control
Identifying and fixing root causes
will help us obtain the desired output
Y
Dependent
Output
Effect
Symptom
Monitor
X1 . . . XN
Independent
Input-Process
Cause
Problem
Control
f(X) Y=
To get results, should we focus
our efforts on the Y or X ?
The Focus of Six Sigma
From
Pockets of controls

Spotty use of QI tools
Ship & Fix Attitude
Ignore cost of poor Qual.

Function focused values
mind set & practices
Guess work in decisions

Change the scene
To
Customer recognized quality at all
levels
Disciplined and consistent use of
proven tools
Do it right first time
Calculate and communicate to all
employees.
Process focused values mind set &
practices
Measure and analyze objective data
to help decision making.
Eighty-Five percent of the reasons for failure to
meet customer expectations are related to
deficiencies in systems and processes Rather
than the Employee.




The role of Management is to change the process
rather than badgering individuals to do better.
So says Deming
To
Target
X X X X X X X X X
X X
X
X
X
X X
X
X
X
X
X
X
X
X
X
X X
X
X
X
X X X
X X
X X X
X X
X
X
X
Every Human Activity Has Variability...
Six Sigma Concept
Customer
Specification
defects
Understanding Variability
& Customer Specification
I s The Essence of Six Sigma
6 Key Terms
Concept
Critical to Quality
characteristics (CTQs)
Unit

Defect

Defect Opportunities


Definition
Customer Performance req. of
a product or service.
The Item Produced Or
Processed
Any event that does not meet
the specification of CTQ
Any event that can be measured
that provides a chance of not
meeting a customer
requirement.
DPMO - Defects Per Million Opportunities
Order of Magnitude








Sigma
3

Spelling
1.5 misspelled words
per page in a book

Money
$2.7 million debt per
$1 billion assets

Time
3 1/2 months per
century

DPMO
66,807


4

1 misspelled word per
30 pages in a book

$63000 debt per $1
billion assets

2 1/2 days per century


6,210


5

1 misspelled word in
the set of
encyclopedias
$570 debt per $1
billion assets

30 minutes per century


233


6

1 misspelled word in
all the books of a small
library
$2 debt per $1 billion
assets

6 seconds per century


3.4


Leaders
Team coaches
Team leaders
Team Members
All Associates
Champions
Master Black Belt
Black Belt
Improvement Team
Awareness
Skills are differentiated for each audience
Skill Levels
Management
Process management
Two Ways About it
Define
Measure
Analyze
Improve
Control
The DMAIC Cycle
Define Measure Analyze Improve Control
Define The Customers, Their CTQs, The Team Charter
And The Core Business Process
Team charter documented reviewed and reviewed with Sponsor
Customer CTQs derived and documented
Validate high level process map completed
Define Measure Analyze Improve Control
Measure the core business process performance
Identified key measures
Developed data collection plan
Executed plan and documented results
Process variation displayed with various charts
Calculated baseline sigma performance
Define Measure Analyze Improve Control
Analyze the data to determine the root causes / opportunities
Complete detailed process maps for sub-processes
Identify process streamlining opportunities
Identify, verify and quantify root causes
Establish improvement targets
Quantify opportunity
Define Measure Analyze Improve Control
Generate, select, design and implement improvements
solution design developed and documented
Solution validated and cost benefit proposal presented to
management
Solution tested on a pilot program
Implementation plan developed and executed.
Define Measure Analyze Improve Control
Institutionalize the improvement and implement ongoing
monitoring
Developed, documented and implemented ongoing/monitoring plan
Standardized process
Procedures documented
Response plan developed and displayed.
Team Chartering Customer Focus Process mapping
The business case Types of customers Process definition
Problem goal statements Understanding customer
needs
Benefits of process mapping
Project scope Methods of collecting
customer inputs
The SIPOC model
Mile stones Voice of the customer
analysis
Levels of process
Roles Translate customer needs to
specific requirements
Process boundaries
Prioritizing needs Mapping guidelines
Define Measure Analyze Improve Control
Define
Measure
Analyze
Improve
Control
The Define Phase
What is A Charter?




A Charter is A Document
That Provides Purpose
And Goals For An
Improvement Team







Five Major Elements Of A Charter
1. Business Case
Explanation Of Why To Do This Project

2. Problem And Goal Statements
Description Of The Problem/Opportunity And Objective
in Clear, Concise And Measurable Terms

3. Project Scope
Process Dimensions, Available Resources

4. Milestones
Key Steps and Dates To Achieve Goal

5. Roles
People, Expectations, Responsibilities
Problem And Goal Statements



The Purpose Of The Problem Statement
Is To Describe What Is Wrong



The Goal Statement Then Defines
The Teams Improvement Objective






What is wrong or not meeting
our customer needs?
When and where do
problems occur?
How big is the problem?
What is the impact?
Problem Statement

Definition of the improvement the team is
trying to accomplish.

Start with a verb (Reduce, Eliminate,
Control, Increase)

Tends to start broadly - eventually should
include measurable target and completion date.

Must not assign blame, Presume cause, or
prescribe solution.

Goal Statement
SMART Problem and Goal Statements

Specific

Measurable

Attainable

Relevant

Time Bound

Poor Example
Our customers are angry with us and late in paying
their bill
Better Example
In the last 6 months 20% of our repeat customers are
late (over 60 days) in paying our invoices. The current
rate of late payments is up from 10% and represents
30% of our outstanding. This negatively affects our
cash flow.
Project Scope

What Process Will the Team Focus On?

What Are The Boundaries Of the Process We Are To Improve?
Start Point? Stop Point?

What Resources Are Available To The Team?

What (If Anything) Is Out Of Bounds For The Team?

What (If Any) Constraints Must The Team Work Under?

What Is The Time Commitment Expected Of Team
Members?

What Will Happen To Our Regular Jobs While We are Doing
The Project?
Roles

How Do You Want The Champion To Work With The Team?

Is The Teams Role To Implement Or Recommend?

When Must The Team Go To The Champion For Approval?
What Authority Does The Team Have To Act Independently?

What And How Do You Want To Inform The Champion About
The Teams Progress?

What Is The Role Of The Team Leader(Black Belt) And The
Team Coach (Master Black Belt)?

Are The Right Members On The Team? Functionally?
Hierarchically?

Milestones


A Preliminary, High level Project Plan
With Dates

Tied To Phases Of DMAIC Process

Should Be Aggressive (Dont Miss
Window Of Opportunity)

Should Be Realistic (Dont Force
Yourselves Into Band-Aid Solution)



Los Angeles
50 Miles

Long Beach
30 Miles

Define
Measure
Analyze
Improve
Control
Obtaining Information On Customer Needs
Focus Groups

Interviews

Customer Observation

Market Research

Be A Customer

Customer Complaints

Surveys (e.g., Walker Surveys)

Voice Of The Customer

Sample Comments/Data


Im Tired Of Having To Write A Check For This Loan Every Two Weeks

The Survey Shows 47% Of Customers Rate Our Response Time As
Fair Or Poor

Why Dont You Guys Get Your Act Together?!

The Phone Must Have Rung Six Times Before I Got An Answer

Im Not That Satisfied With Your Service




How Do We Take Action On VOC Input?
Understanding Customer Needs
Gather input on
customer needs
(Listen to the voice of
the Customer)
Analyze and translate
VOC input into
meaningful terms
Define requirements
for the processes,
products or service
Process for understanding needs
Translating VOC to requirement
Voice of the
customer
Key Issues Requirement
I am always on hold or
transferred to wrong
person
Want to talk to right
person quickly
Add additional menu items
to voice system
Customer gets the right
person the first time.
I am getting my bills at
different times of the
month
Consistent monthly bills Customer wants timely bill
Customer bill received same
day of the month.
Take too long to process
the application
Speed up loan Customer wants quick loan
Customer receives loan
approval on customer
request date.
Definition Of A Process




A Process Is A Collection Of
Activities That Takes One Or
More Kinds Of Input And
Creates Output That Is Of
Value To The Customer




Process Mapping

Objectives

Learn The Definition Of Process Mapping

Understand Business Processing Mapping And Its
Application To Completely Satisfying Customer
Requirements

Learn The Key Process Elements

Learn The Importance Of Process Boundaries And Process
Owners

Understand The Benefits Of Process Mapping

Understand The Steps Of Process Mapping

Business Process Mapping
Requirements Requirements
S I P O C
Suppliers Inputs Process Outputs Customers
Measures Measures
Process
Map
Measurement


Objectives

To Understand That The Focus Of The Measure Step
Is To Establish The Current Process Defect Level

To Understand The Definition And Rationale For Measures

To Understand The Difference Between Input, Process,
And Output Measures And How Different Measures
Relate To Each Other

To Understand Effectiveness vs. Efficiency Measures



Input, Process And Output Measures
















Input
Measures
Process
Measures
Output
Measures



The Key Quality
And Delivery
Requirements
Placed On
Your Suppliers




Measures That Are
Intended To Your
Process. They Include
Quality and Delivery
Measures Important To
Your Internal
Customers As Well
AS Waste And Cycle
Time Measures. They
Are Correlated To
The Pertinent
Output Measures



Output Measures
Are Measures Used
To Determine How
Well Customer
Needs And
Requirements
Are Met


Quality Measurement
There Are Two Types Of Measures

Effectiveness Measures:
The Degree To Which Customer Needs And
Requirements Are Met And Exceeded

Some Examples:
Percent Defective Billing Accuracy
Response Time

Efficiency Measures:
The Amount Of Resources Allocated In Meeting
And Exceeding Customer Requirements

Some Examples:
Cost Per Transaction Time Per Activity
Turnaround Time Amount Of Rework

Principles Of Good Measures


List Of Criteria To Use In Evaluating Measurement

The Measure Must Be Important

The Measure Must Be Easy To Understand

The Measure Is Sensitive To The Right Things
And Insensitive To Other Things

The Measure Promotes Appropriate Analysis
And Action

Data Needed Must Be Easy To Collect

Data Defined






Raw Facts - Qualitative Or Quantitative -
Obtained By Observing A Population,
Product, Process Or Service




5-Step Data Collection Process














Clarify Data
Collection
Goals

Develop
Operational
Definitions And
Procedures
Plan For Data
Consistency
And Stability


Begin Data
Collection

Continue
Improving
Measurement
Consistency
Sampling
Objectives

To Know What Sampling Is And When To Use It

To Recognize When And Where Different Types Of Bias May Be
Introduced Into Common Sampling Situations and Understand The
Importance

To Recognize That There Are Two Different Uses For Sampling,
Population And Process, And That The Primary Purpose And
Considerations For Sampling Are Different For Each Use

To Have An Awareness Of The Different Types Of Approaches To
Random Sampling

To Giant Experience In Asking The Appropriate Questions To
Ensure Sampling Is Implemented Effectively And Efficiently
Define
Measure
Analyze
Improve
Control
Variation

Objectives

Understand That Variation In The Data Represents The Voice
Of The Process

Know The Two Types Of Variation - Common Cause And
Special Cause And The Implication Of The Different
Causes

Use Appropriate Tools To Study Variation In Discrete And
Continuous Situations

Know How To Use And Interpret Run Charts And Control
Charts And Take Appropriate Action Based On The
Charts


5 Ms & 1 P
P
R
O
C
E
S
S
Machines

Materials

Methods

Measurement

Mother Nature

People
Types Of Data

Anything That Results From Being Measured On A
Continuum Or Scale

Example:
Continuous measure (Time To process)

Anything That Can Be Categorized
Or Designated As Either/Or

Examples:
Male/Female Accept/Reject
Off/On Yes/No
Defect/No Defect Democrat/Republican
Day Of Week (M/T/W/Th/F)


Variable
Or
Continuous
Attribute
Or
Discrete
Two Types of Variation
Type Definition
Common Cause No Undue
Influence By
One Of The
5 Ms and 1P
Expected
Normal
Random
Special Cause Undue
Influence
Of The
5Ms and 1P
Unexpected
Not Normal
Not Random
-3s -2s -1s
X
1s 2s 3s
Normal Curve and Sigma
0.13%
2.14%
13.60%
34.13% 34.13%
13.60%
2.14%
0.13%
68.26%
95.46%
99.73%
1 Sigma
2 Sigma
3 Sigma
6 Sigma implies
+ 6 not + 3
Improvement Focussed Scale
















Percent
DPMO

93%
98%
99%
99.87%
99.9997%
66,807
22,750
6,210
1,350
3.4
3.0
3.5
4.0
4.5
6.0
Calculating Process Sigma
Number Of Units Processed N = 500
Number Of Defects Made D = 57
Number Of Defect Opportunities Per Unit O = 3

Solve For Defects Per Million Opportunities D * 1000000
N * O
57 * 1000000
500 * 3
38,000
Looked up in Sigma Conversion Table 3.3
Tools of Analysis - Histograms
# Of
Occurances
# Of Days
Tools of Analysis - Pareto Chart
# Of
Occurances
# Of Days






Tools of Analysis - Run Charts
Voltage
Hour of Day

















Tools of Analysis - Run Charts
Voltage
Hour of Day

















Root Cause Analysis
What Is It?

Root Cause Analysis Allows The Team To
Focus On The Vital Few

Objectives Of Root Cause Analysis

Determine, With Reasonable Confidence, What Is
Creating The Problem(s) In a Process

Allows Development Of Focussed Permanent Solutions


Cause & Effect Diagrams














Effect
Y
Measurement Methods Machinery
Mother Nature People
Materials
Potential Causes (Xs)
Value-Added Analysis


What Constitutes Value-Added Work?

1. The Thing Passing Through The
Process Is Physically Changed

2 The Customer Is Willing To Pay For It.

3. It Is Done Right The First Time



Define
Measure
Analyze
Improve
Control
Road Map: Improve
Generate
Solutions
Select
Solutions
Plan
Implementation

Generate Ideas

Assumption Busting

Synthesize Solutions


Narrow List of Solutions

Solution Criteria

Validated Solution

Piloting


Project Planning

Change Management

Potential Problem
Analysis

Improvement Targets



Good Targets Include A Desired Performance
Level And Point In Time Frame For Its Achievement

All Targets Are Moving, What Is Good Enough
Next Year Probably Will Not Be Good Enough
The Following Year



DMAIC OR DFSS
Define
Improve
Verify
Design
Analyze
Measure
Control
Measure
Analyze
Does A
Process
Exist?
Is Incr.
Improvement
Enough?
Yes
No
Yes
No
Scamper

S = Substitute
C = Combine
A = Adapt
M = Modify
P = Put To Other Use
E = Eliminate
R = Rearrange
Define
Measure
Analyze
Improve
Control
Control

Institutionalize The Improvement And Implement
Ongoing Monitoring
Developed, Documented And Implemented An
Ongoing Process Monitoring Plan
Standardize The Process
Procedures Documented
Response Plan Developed And Deployed
T h e W a y W e W o r k
Thanks for your time