1. Who is Using Six Sigma in the Twin Cities
Seagate, Medtronic, Donalson, Honeywell, American Express, Ceridian, 3M

2. What is Six Sigma?
Six Sigma - The Initiative
Process
Systematic approach to reducing defects which affect what is important to the customer
Tools
Qualitative, statistical and instructional Devices for “observing” process variables and their relationships as well as “managing” their character

3. Six Sigma - Aggressive Goal
PPM
Process
Capability
Defects per
Million Opp.
Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

4. Six Sigma -- Practical Meaning
% Good (6 Sigma)
20,000 lost articles of mail per hour
Unsafe drinking water for 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 drug prescriptions each year
No electricity for almost seven hours each month
Seven articles lost per hour
One unsafe minute every seven months
1.7 incorrect operations per week
One short or long landing every five years
68 wrong prescriptions per year
One hour without electricity every 34 years
99% Good (3.8 Sigma)

5. How Does Six Sigma Make the Difference?
Vision
Philosophy
Aggressive goal
Breakthrough improvement
Focus
Customer focus
Problem focus
Process focus
Metric (standard of measurement)
Method

6. Improved Customer Satisfaction
The Goals of Six Sigma
Defect Reduction
Yield Improvement
Improved Customer Satisfaction
Higher Net Income

7. What’s the Strategy Know what’s important to the Customer
Reduce defects
Center around target
Reduce Variation

8. Six Sigma Vision
The Vision of Six Sigma is to delight customers by delivering world-class quality products through the achievement of Six Sigma levels of performance in everything we do.

9. Six Sigma Philosophy
The Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.

10. Where Does Industry Stand?
1,000,000
100,000
10,000
1,000
100 10 1
PPM
IRS - Tax Advice
(phone-in)
(140,000 PPM)
Restaurant Bills
Doctor Prescription Writing
Payroll Processing •
Order
Write-up
Journal Vouchers
Wire Transfers
Airline Baggage Handling
Purchased Material
Lot Reject Rate
Best-in-Class
Average
Domestic Airline Flight
Company
Fatality Rate
(0.43 PPM) 3 4 5 6 2 1 7
Sigma Scale of Measure

11. Six Sigma - Performance Target
Long-Term Yield
Standard
3 Sigma
93.32 %
Historical
4 Sigma %
Current
5 Sigma %
Intermediate
6 Sigma %
Long-Run

12. Six Sigma - Why? To deal with a world of declining product prices
To compete successfully with the best companies in the world
To establish standard language and approaches across functions and across businesses
To develop our next generation of leaders
To accelerate our rate of quality and productivity improvement faster than our competitors

13. Six Sigma Basics ...What If...?
That Is
Six Sigma !
You Could Select One of Your Most Highly Leveraged Problems ?
Identify One of Your Best People to Work on It ?
Provide That Person With All of the Training, Tools, and Resources They Need to Fix It ?
Guarantee Them Uninterrupted Time and Focus to Work on It ?
And Get a Well Thought Out, Data Driven Solution ?

14. The People Who Make it Happen
DFSS
Employees
Green Belts &
All Employees
Business
Champions
Hands on
Champions
Six Sigma Directors &
Six Sigma Executive
Finance Reps
Master
Black Belts
Black Belts

15. Six Sigma - Approaches to Improvement
Breakthrough Strategy
Continuous Improvement
-Trained & Dedicated
Individuals
-Analytical Expertise
->70% Improvement
per Project
-Current Tools
-Kaizen
-Lean Manufacturing
-Reengineering
-Typical TQM
Time in Years 1 2 3 4 5
The problem with continuous improvement as the only goal….
Organization sees improvement BUT loses the game.
Six Sigma Enables Breakthrough Level Improvement!

16. Focus on X rather than Y, as done historically
The Focus of Six Sigma
KPIV(s) Y=
f (X)
KPOV(s)
Focus on X rather than Y, as done historically
Metrics
KPOV = Key Process Output Variable
KPIV = Key Process Input Variable
Defect
(Gap)
Critical To The Customer *

17. Six Sigma as a Problem Solving System
Six Sigma employs the Breakthrough Strategy, which is a multi-step problem solving and process improvement methodology.
1. Measure
2. Analyze
3. Improve
4. Control
0. Define
5. Realize

18. FMEA Fishbone; other methods Rolled Throughput Yield
Six Sigma Road Map - Define & Measure
Problem Statement
Cause and Effect
FMEA Fishbone; other methods
MSA
Process Map
CTQs
COPQ est.
Identify:
process inputs
process outputs
Link KPIV & KPOV
prioritize inputs to attack
Is Measurement good
enough to detect
process variation?
(see improvement!)
Define the
Situation
Generates/Determines
Create with
Team
with team
Root Causes
Strong Links
Check Gauges &
Data Collection
Devices & Procedures
Define/Measure
Rolled Throughput Yield
Determine:
opportunities for improvement
Defect Rate
per Step

19. Six Sigma Road Map - Measure & Analyze
Generates/Determines
Gather Historical
Data or Sample
(Size & Subgroup)
Indicators:
Performance & Entitlement
DPMO; Sigma Score
Cp Pp Cpk Ppk
Process Capability
Study
Measure
Determine
Cost of Quality
Review Internal &
External Costs
Potential Benefits
Analytical Tools
Trends & Behaviors in KPIV/KPOV relationships
Minitab
Analyze
Confidence Intervals
Applies throughout

20. Six Sigma Road Map - Analyze
Generates/Determines
Answers:
Difference in Means?
One Pop. to Another;
Before/After; to Spec
Hypothesis for Variables - Means
(t-tests)
Variables Data
Hypotheses for
Variables - Std. Dev.
(Chi Sq., F-Test, Homogeneity of Variance)
Answers:
Difference in Spread?
One Pop. to another;
to baseline; multiple
Pops.
Variables Data
Analyze
Answers:
Differences in % Def.
Between pop.;
Diff. in % Def. from
overall mean
Hypotheses for
Attributes
(Contingency Tables,
Non-parametric study)
Proportion Defects
Proportion Defectives
Collecting data on
several variables
at the same time
Points to variables
warranting further
analyses
Multi-Vari Studies

21. Six Sigma Road Map - Analyze
Generates/Determines
Variables Data
Answers:
Difference in Means?
One Variable (Factor)
Multiple Types
ANOVA
Analyze
For pairs of
continuous
Data Variables
Correlation & Regression
Answers:
If know X; Predict Y
Strength & Direction
This completes the Characterize phase
confirming which Input Variables most directly affect the Output Variables:
Move on to Optimize - Settings or Procedures

22. Six Sigma Road Map - Improve
Generates/Determines
Known Relationships
between KPIVs & KPOVs
Design of
Experiment
Answers:
How to Set “X” to get
Best “Y”
Answers:
What’s the Best
Combination of the “Xs’
for producing the Best “Y”
Testing Variables
at 2 Levels
(High/Low)
Full Factorial
Simple 2K
Improve
Tests Multiple
Variables, at
Various Levels
(High/Low)
Answers:
What’s the Best Combination of ALL Variables (X) to give the Best Output (Y)
Full Factorial
Multiple Variables
Answers:
Same as Above - But . ..
Less Information; More Risk - but, requires less experimentation
Tests Multiple Variables But Not
All; Not All Levels
Conserves Resources
Fractional Factorial

23. Six Sigma Road Map - Improve
Generates/Determines
Isolates Parts of Data from other Parts
Clarifies Results when
Interacting Variables
“Confound” the Results
DOE- Blocking
Improve
Improves Current EHS
Situation and/or Identifies
Issues to be Managed Up-Front
Reviews Affects on
the Environment,
Health & Safety
EHS Review
Now We have established the parameters and procedures for
operating the improved process
Keep it in Control !

24. “Process” Control Plans Instructions & Training
Six Sigma Road Map - Control
Generates/Determines
Real-time Process
Results; Trends;
Control Limits
SPC
Indicates if Process is Operating as Expected (In-Control); If Not, What Corrections to Make
Outlines:
Parameters of Operations, Responsibilities, Actions, Measurements, etc.
CTQs, Specs,
Measurements,
Actions
“Process” Control Plans
Control
Outlines:
Checking, Maintenance,
Care & Periodic Review of Data Collection Devices & Methods
Gauge/Measurement
Stability & Control
Gauges, Forms &
Data Collection
Methods
Outlines:
How Employees “Do” Procedures - Standard & Consistent, Opportunity for Understanding & Verification of Understanding
Employees,
Documented Proc.
Learning Events
Instructions & Training
Spare Parts; System
Back-Ups; Scheduled
Downtime, etc.
Preventive
Maintenance
Plan
Outlines:
Indicators to Monitor; Actions to
Prevent Failures, Resources
Needed On-Hand

25. Six Sigma Road Map - Control & DFSS
Generates/Determines
Inputs Affecting
Project; Others
Affected by Project
Outlines:
Procedures for Making Changes; Predictions of Change Affects
Change Control
Cost to Control
vs CTQ Attainment
& Benefits Achieved
Checks:
Project Controls Appropriate for Achieving CTQs and Benefits
Control
Cost Review
Sustained Process Will Meet Customers Expectations
All Agree and Commit to the
Control Strategy as the Means
of sustaining the Defect Reductions
DFSS
DFSS = Design for Six Sigma
Yes
Functional Team Sign-Off
&
Celebrate! No
Re-Design

26. Provide Intense Training
Six Sigma - How Does It Work?
Select the Right
People
Provide Intense Training
Select Key
Problem Areas
Assign Projects to
Black Belts
Obtain
Results
Champions
Master BB’s
Black Belts
Brown Belts
Strong
Analytical Skills
Strong Problem
Solving Skills
People &
Leadership Skills
Critical to
Success
Chronic or Systemic
Fastest or
Largest Return
Lead Focused
Effort
Apply Skills and
Tools
Determine
Causes and
Solutions
Reduce Variability
Preventative &
Proactive Vs
Appraisal &
Reaction
Fewer Trials
Faster
Accurate
Solutions

27. Six Sigma Basics
Six Sigma Provides a Disciplined Method for Reducing Defects.
Customers Define Their Critical to Satisfaction Measures (CTS’s).
Champions Define Key Outputs of a Process Whose Defects Most Significantly Impact the CTS’s & Assign Projects to Black/Green Belts.
Black/Green Belts Identify the Process Inputs That Most Significantly Influence the Outputs.
They Then Eliminate the Root Causes of Variation in the Inputs and Put in Controls to Prevent Reoccurrence of the Problem.
Design For Six Sigma Engineers Identify and Exploit Areas of Decreased Sensitivity to the Input Variables in Order to “Design In” Quality.

28. Six Sigma Reference www.isixsigma.com
The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance by Peter S. Pande et al, Robert P. Neuman, Roland R. Cavanagh.
The Six Sigma Handbook: A Complete Guide for Greenbelts, Blackbelts, & Managers at All Levels by Thomas Pyzdek