# Demystifying 6.

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Demystifying 6

Disciplined Process Management
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.”

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.”

What is a “Sigma?” 18th Letter in the Greek Alphabet - “” A statistical method of measuring the distribution or spread about the mean (average).

The 6th Standard Deviation (Sigma) = 3.4 in 1million
What is Six Sigma? The 6th Standard Deviation (Sigma) = 3.4 in 1million

What is Six Sigma? The 6th Standard Deviation (Sigma) = 3.4 in 1Million Translates 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.

Why Six Sigma? 3 s 4 s 5 s 6 s Sigma Baggage DPMO % Yield Handling
3,660 66,800 % Passengers With Misplaced Luggage Every Day 4 s 6,210 % 340 Passengers With Misplaced Luggage Every Day 5 s 12 Passengers 230 % With Misplaced Luggage Every Day 6 s 6 Passengers 3.4 % With Misplaced Luggage Every Month

Example of Defects / Sigma Measurement Using Exhibit C
What is Six Sigma? 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 It Is Possible for an Item to Have More Than 1 Opportunity for a Defect

Multiple Methodologies - Same Philosophy
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

DMAIC - Project Methodology
D - Define M - Measure A - Analyze I - Improve C - Control

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.

Define Measure Analyze Improve Control

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

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 we do better? How does my customer view my process?

Always Focus On Customer Requirements
Define Measure Analyze Improve Control Select Key Output Measures or “Y’s” Input Process Output 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

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

Identify the Root Causes
Define Measure Analyze Improve Control Process Map Analysis What You Think It Is... What It Really Is.. What It Should Be... What It Could Be... Identify the Root Causes

Solutions Should Not Be A Part Of The Process Until The Improve Stage
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

Define Measure Analyze Improve Control Monitor Process
Set Standards / Controls Set Measures Documentation Procedures Training Institutionalize Prevent “Rubber-Banding” Control / Run Charts

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

QUESTIONS ???