1. Group Members Luis Alacan Paola del Valle Jandro Roque Chen Wang
SIX SIGMA
Group Members
Luis Alacan
Paola del Valle
Jandro Roque
Chen Wang

2. WHAT IS SIX SIGMA?
A statistical concept that represents amount of variation present in a process
Corresponds to being % defect free
Produce at defect levels below 3.4 DPMO
Refers to a business philosophy of focusing on continuous improvement
Methodology that an organization uses to ensure that it is improving its key processes

3. WHAT IS IT USED FOR?
Having a measurable way to track performance improvements
Focusing attention on process management at all organizational levels
Improving customer relationships by addressing defects
Improving the efficiency and effectiveness of processes by aligning them with your customer needs

4. SIX SIGMA PROGRAM DEVELOPMENT
Bill Smith introduced the concept of Six Sigma to Motorola in the mid-1980s
Mikel Harry began to study the variations in the various processes within Motorola
Motorola began focusing on creating strategies to reduce defects in its products
Achieved the Malcolm Baldridge National Quality Award in 1988

5. SIX SIGMA TODAY Six Sigma has evolved Lean Six Sigma
Design for Six Sigma (DFSS)
DMAIC methodology
CTQs
Certifications
Yellow, Green, Black Belts
Overall has achieved greater awareness

6. SIX SIGMA METHODOLOGY

7. NORMAL DISTRIBUTION

8. REGIONS
About 68% of the area under the curve falls within 1 standard deviation of the mean
About 95% of the area under the curve falls within 2 standard deviations of the mean
About 99.7% of the area under the curve falls within 3 standard deviations of the mean

9. PROCESS SHIFT

10. INDICES
Cp = USL – LSL 6σ
Cp > 2 indicates process is in good statistical control
Cpk = Min [ USL – μ USL – μ ]
3σ , σ
Cpk < 1.33 indicates process is not capable of
producing repeatable products

11. METRICS Defect Rate in parts per million (ppm)
Sigma Levels (1σ, 2σ, 3σ, 4σ, 5σ, 6σ)
Process Capability Index
Cpk= 0.5 means you've crunched nearest the door edge
Cpk=1 means you're just touching the nearest edge
Cpk=2 means your width can grow 2 times before touching
Cpk=3 means your width can grow 3 times before touching
Defects per unit (average number of defects observed when sampling a population)
Yield (percentage of a process that is free of defects)

12. LEVELS Defects (in ppm) Sigma Level % Acceptable 690,000 1σ 31.0000%
308,000 2σ %
66,800 3σ %
6,210 4σ %
230 5σ %
3.4 6σ %

13. SIX SIGMA – PRACTICAL MEANING

14. SIX SIGMA ROADMAP 1. Identifying core processes and key customers
2. Defining customer requirements
3. Measuring customer performance
4. Prioritizing, analyzing, and implementing improvements
5. Expanding and integrating the Six Sigma system

15. SIX SIGMA PLAYERS

16. FOSTERING SIX SIGMA CULTURE
Six Sigma Overview – 4-8 hours in length
Business process management – 3 days
Green Belt for Champions – 3 or 8 days
Black/Green Belt Training – 12 days
Change Management – 3 days
Facilitative Management – 2 days
Individual Tools Clinic – Depend on tool or technique

17. WHAT IS NEEDED FOR A SUCCESSFUL SIX SIGMA PROGRAM?
Have management lead your improvement efforts.
Actively support a focus on delighting your customers.
Provide the sigma improvement team with access to experts who can offer ongoing guidance and coaching.
Encourage open discussion about defects. People should not be afraid to point out that something is wrong. The airline industry for instance, studies crashes and “near-misses” to improve safety.
Value and use the data you gather.
Help employees work effectively by providing a team-based, cooperative environment.

18. PITFALLS TO AVOID Failure to achieve quick success
Clear your agendas of competing distractions
Unrealistic timeframes
Ignore previous quality efforts
Poor Six Sigma cultural planning and follow through
Cultural development cannot be delegated or seen as an one-time event
No culture goals and objectives
Not allowing for unexpected interruptions
False positive readings that you have achieved Six Sigma cultural transformation
Underestimate resource allocation

19. MOTOROLA: REASONS WHY SIX SIGMA MAY FAIL
Lack of senior Sponsorship
Lack of Alignment to a clear strategy
Lack of tracking and Accountability
Failure to link to the Bottom-Line
Insufficient or ineffective allocation of Human Resources
Over-emphasizing on Rigid Approach

20. BALDRIGE AWARD AND SIX SIGMA
Baldrige criteria is used as a management tool
Most organizations that use the Baldrige criteria never apply for an award
Baldrige Criteria as a method of establishing a “culture of excellence,” assessing performance, and prioritizing initiatives
Six Sigma can be used to drive deep into root causes to solve the organization’s highest-impact problems

21. BALDRIGE AND SIX SIGMA ALIGNMENT
Sigma encourages a focus on meeting customer requirements (Baldrige Category 3)
Leadership-driven initiative (Baldrige Category 1)
Alignment of improvement projects to the organization’s strategy (Baldrige Item 2.2)
Effective development and training of human resources (Baldrige Item 5.2)
Data-driven decision-making (Baldrige Category 4)

22. BALDRIGE /LEAN THINKING /SIX SIGMA ALIGNMENT

23. STARWOOD HOTELS

24. STARWOOD HOTELS
Starwood has found Six Sigma's strengths can promote innovation, not stifle it.
Starwood has been successful, in part, because it began with a culture of creativity before introducing the management tool
Programs developed using six sigma techniques delivered more than $100 million in profit to its bottom line
Since the program launched in 2001, more than 150 employees have been trained as "black belts" and more than 2,700 as "green belts"

25. STARWOOD HOTELS The process begins when hotel teams pitch a new idea
A Six Sigma council then evaluates an idea's merit based on the division's priorities and the project's expected payoff.
If the council approves a project, black belts and green belts are deployed like swat teams to the hotels to execute the project.
After rolling out a prototype, green belts shift into analytical mode. At that point they spend a lot of time with the E-Tool, a proprietary Web-based system that allows Starwood to monitor a slew of performance metrics to gauge the success or failure of a new project. .

27. QUESTIONS?