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Six Sigma - Understanding the Basics 1 Demystifying 6

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Six Sigma - Understanding the Basics 2 What is Six Sigma? Disciplined Process Management A Set of Tools Using Objective Data to Measure and Meet Customer Requirements A Method of Measuring Output A 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.

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Six Sigma - Understanding the Basics 3 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. What is Six Sigma?

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Six Sigma - Understanding the Basics 4 18 th Letter in the Greek Alphabet - A statistical method of measuring the distribution or spread about the mean (average). What is a Sigma?

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Six Sigma - Understanding the Basics 5 The 6th Standard Deviation (Sigma) = 3.4 in 1million What is Six Sigma?

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Six Sigma - Understanding the Basics 6 The 6th Standard Deviation (Sigma) = 3.4 in 1Million Translates to 3.4Defects in 1 Million Opportunities What is Six Sigma? 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.

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Six Sigma - Understanding the Basics 7 Why Six Sigma? 3,660 Passengers With Misplaced Luggage Every Day 340 Passengers With Misplaced Luggage Every Day 12 Passengers With Misplaced Luggage Every Day 6 Passengers With Misplaced Luggage Every Month ,800 6, % % % % SigmaBaggage Handling DPMO% Yield

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Six Sigma - Understanding the Basics 8 Example of Defects / Sigma Measurement Using Exhibit C Claim Payments Must Be Made Within 5 Business Days (Voice of the Customer / Critical to Quality) Number of Opportunities Per Item Processed Is 1 Each Claim Paid After 5 Days Is a Defect Dividing 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 Sigma What is Six Sigma? It Is Possible for an Item to Have More Than 1 Opportunity for a Defect

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Six Sigma - Understanding the Basics 9 Project Methodologies DMAIC - most common and used for improving existing processes DMADV / DFSS - used to build a new process PIE - used to enhance or develop new products DFT - used to measure capacity Multiple Methodologies - Same Philosophy

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Six Sigma - Understanding the Basics 10 DMAIC - Project Methodology D - Define M - Measure A - Analyze I - Improve C - Control

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Six Sigma - Understanding the Basics 11 Training DMAIC Generally Divided Into 3 Waves With Each Wave Consisting of a Week-long Class. Advanced Classes Available Roles Green Belt - Someone Who Has Been Trained on DMAIC and Has Completed a Six Sigma Project Black 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.

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Six Sigma - Understanding the Basics 12 Define Measure Analyze Improve Control

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Six Sigma - Understanding the Basics 13 Define Measure Analyze Improve Control Project Charter –Business Case –Problem / Goal Statements –Roles Determine Output Requirements –Identify Customer and Needs –Translate Needs Into CTQs (Measurable Output That Is Critical to Quality) Map the Process As Is –SIPOC/R –Find Non-Value Added Steps

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Six Sigma - Understanding the Basics 14 Define Measure Analyze Improve Control Customer 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 we do better? How does my customer view my process?

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Six Sigma - Understanding the Basics 15 Define Measure Analyze Improve Control Select Key Output Measures or Ys InputProcessOutput Develop Data Collection Plan Measure and Describe Variation - In God We Trust - All Others Bring Data – Histograms, Pareto Charts, Run Charts Calculate Process Sigma Always Focus On Customer Requirements

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Six Sigma - Understanding the Basics 16 Define Measure Analyze Improve Control Interpret Data / Construct Visual Displays Regression Analysis Pareto Charts Control Charts Box Plots Frequency Plots Statistical Packages Such As MiniTab Used in Analysis

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Six Sigma - Understanding the Basics 17 Define Measure Analyze Improve Control What It Should Be...What It Could Be...What It Really Is.. Identify the Root Causes Process Map Analysis What You Think It Is...

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Six Sigma - Understanding the Basics 18 Define Measure Analyze Improve Control Generate Solutions –Solution Criteria –Identify All Possible Solutions Evaluate Solutions –Cost / Benefit Analysis –Should-Be Process Mapping –Piloting Implement Plan / Change Management Solutions Should Not Be A Part Of The Process Until The Improve Stage

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Six Sigma - Understanding the Basics 19 Define Measure Analyze Improve Control Monitor Process –Set Standards / Controls –Set Measures Documentation –Procedures –Training Institutionalize –Prevent Rubber-Banding –Control / Run Charts

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Six Sigma - Understanding the Basics 20 Benefits of Six Sigma Customer Focused Tollgates At Each Stage Insures Buy-In / Acceptance Prior To Moving To The Next Stage Decisions Based On Fact and Not Anecdotal Information Using Sigmas to Measure Processes Provides A Common Means To Compare Dissimilar Processes

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Six Sigma - Understanding the Basics 21 QUESTIONS ???

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