2 Disciplined Process Management What is Six Sigma?Disciplined Process ManagementA Set of Tools Using Objective Data to Measure and Meet Customer RequirementsA Method of Measuring OutputA Systemic, Scientific, and Fact-Based Method for Making Decisions“The Six Sigma strategy involves the use of statistical tools within a structured, disciplined methodology for gaining the knowledge needed to produce better quality products and services faster and at at significantly lower costs by reducing variation, rework, scrap, waste, downtime, and other losses.”
3 What is Six Sigma?“Six Sigma embodies the principles of total quality management that W. Edwards Deming sought to establish in every industry he touched. Six Sigma methodology also focuses on measuring results by reducing product or service failure rates to 3.4 per million.”
4 What is a “Sigma?”18th Letter in the Greek Alphabet - “”A statistical method of measuring the distribution or spread about the mean (average).
5 The 6th Standard Deviation (Sigma) = 3.4 in 1million What is Six Sigma?The 6th Standard Deviation (Sigma) = 3.4 in 1million
6 What is Six Sigma?The 6th Standard Deviation (Sigma) = 3.4 in 1MillionTranslates to 3.4“Defects” in 1 Million Opportunities”Defect - Any Event That Does Not Meet Customer Requirements.Opportunity - Any Event That Can Be Measured That Provides A Chance Of Not Meeting The Customer Requirements.
7 Why Six Sigma? 3 s 4 s 5 s 6 s Sigma Baggage DPMO % Yield Handling 3,66066,800%PassengersWith MisplacedLuggage EveryDay4s6,210%340 PassengersWith MisplacedLuggage EveryDay5s12 Passengers230%With MisplacedLuggage EveryDay6s6 Passengers3.4%With MisplacedLuggage EveryMonth
8 Example of Defects / Sigma Measurement Using Exhibit C What is Six Sigma?Example of Defects / Sigma Measurement Using Exhibit CClaim Payments Must Be Made Within 5 Business Days (Voice of the Customer / Critical to Quality)Number of Opportunities Per Item Processed Is 1Each Claim Paid After 5 Days Is a DefectDividing the Number of Defects by the Number Processed (Opportunities) Will Yield a Ratio Which Can Be Translated to a Sigma.Assume 2,000 Claims Paid (Opportunities) With 1 Paid After 5 Days (Defect). This Equals Approximately 50 Defects Per 100,000 Opportunities Which Yields Approximately a 4.8 SigmaIt Is Possible for an Item to Have More Than 1 Opportunity for a Defect
9 Multiple Methodologies - Same Philosophy Project MethodologiesDMAIC - most common and used for improving existing processesDMADV / DFSS - used to build a new processPIE - used to enhance or develop new productsDFT - used to measure capacityMultiple Methodologies - Same Philosophy
10 DMAIC - Project Methodology D - DefineM - MeasureA - AnalyzeI - ImproveC - Control
11 TrainingDMAIC Generally Divided Into 3 “Waves” With Each Wave Consisting of a Week-long Class.Advanced Classes AvailableRolesGreen Belt - Someone Who Has Been Trained on DMAIC and Has Completed a Six Sigma ProjectBlack Belt - Someone Trained in Six Sigma, Has Run Six Sigma Projects, and Who Has Passed a Certification Exam.Master Black Belt - Black Belt Who Has Taken Additional Advanced Courses and Passed a Certification Exam.
13 DefineMeasureAnalyzeImproveControlProject CharterBusiness CaseProblem / Goal StatementsRolesDetermine Output RequirementsIdentify Customer and NeedsTranslate Needs Into CTQs (Measurable Output That Is “Critical to Quality”)Map the Process As IsSIPOC/RFind Non-Value Added Steps
14 Customer Define Measure Analyze Improve Control What does my customer need from the process?How is our process performance from the customer perspective?How does my customer measure my process?How would my customer like for our process to perform?What can wedo better?How does my customer view my process?
15 Always Focus On Customer Requirements DefineMeasureAnalyzeImproveControlSelect Key Output Measures or “Y’s”InputProcessOutputDevelop Data Collection PlanMeasure and Describe Variation - “In God We Trust - All Others Bring Data”Histograms, Pareto Charts, Run ChartsCalculate Process SigmaAlways Focus On Customer Requirements
16 Define Measure Analyze Improve Control Interpret Data / Construct Visual DisplaysRegression AnalysisPareto ChartsControl ChartsBox PlotsFrequency PlotsStatistical Packages Such As MiniTab Used in Analysis
17 Identify the Root Causes DefineMeasureAnalyzeImproveControlProcess Map AnalysisWhat YouThinkIt Is...What ItReallyIs..What ItShouldBe...What ItCouldBe...Identify the Root Causes
18 Solutions Should Not Be A Part Of The Process Until The Improve Stage DefineMeasureAnalyzeImproveControlGenerate SolutionsSolution CriteriaIdentify All Possible SolutionsEvaluate SolutionsCost / Benefit AnalysisShould-Be Process MappingPilotingImplement Plan / Change ManagementSolutions Should Not Be A Part Of The Process Until The Improve Stage
19 Define Measure Analyze Improve Control Monitor Process Set Standards / ControlsSet MeasuresDocumentationProceduresTrainingInstitutionalizePrevent “Rubber-Banding”Control / Run Charts
20 Benefits of Six SigmaCustomer Focused“Tollgates” At Each Stage Insures Buy-In / Acceptance Prior To Moving To The Next StageDecisions Based On Fact and Not Anecdotal InformationUsing Sigmas to Measure Processes Provides A Common Means To Compare Dissimilar Processes