1. By S.Pragash Date : 9 th Nov 2013

2. What is Six Sigma???? A term (Greek) used in statistics to represent standard deviation from mean value, an indicator of the degree of variation in a set of a process. Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services. The figure of six arrived statistically from current average maturity of most business enterprises A philosophy and a goal: as perfect as practically possible. A methodology and a symbol of quality. “Why do we call Six Sigma as Six Sigma and not Four or Five Sigma or Eight Alpha (another Greek symbol)? Sigma is a statistical term that measures process deviation from process mean or target. Mean is also referred as average in common language. The figure of six was arrived statistically by looking at the current average maturity of most business enterprises. We would like to revise this figure to 8 or may be 9 provided the world becomes a more orderly and predictable (even with increasing entropy or chaos) place to live!”

3. What is Six Sigma???? A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits, employee morale and quality of product.

4. What is Six Sigma???? Six Sigma is not: A standard A certification Another metric like percentage Rather! It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be. Methodology to measure and improve company’s performance, practices and systems Six Sigma is a rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance, practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness.

5. 5 Six Sigma Definitions Business Definition A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business. Technical Definition A statistical term signifying 3.4 defects per million opportunities.

6. μ σ What’s in a name? Sigma is the Greek letter representing the standard deviation of a population of data. Sigma is a measure of variation (the data spread)

7. What does variation mean? Variation means that a process does not produce the same result (the “Y”) every time. Some variation will exist in all processes. Variation directly affects customer experiences. Customers do not feel averages!

8. Examples of the Sigma Scale In a world at 3 sigma... There are 964 U.S. flight cancellations per day. The police make 7 false arrests every 4 minutes. In MA, 5,390 newborns are dropped each year. In one hour, 47,283 international long distance calls are accidentally disconnected. In a world at 6 sigma... 1 U.S. flight is cancelled every 3 weeks. There are fewer than 4 false arrests per month. 1 newborn is dropped every 4 years in MA. It would take more than 2 years to see the same number of dropped international calls.

9. Six-Sigma Quality “Six-sigma” is a philosophy which reflects the goal of eliminating defects in the products. Seeks to reduce variation in the processes that lead to product defects The name, “six sigma” refers to the variation that exists within plus or minus six standard deviations of the process outputs Statistically speaking a process in “six-sigma” control limits will only produce 2 defects per billion units.

10. Focus of Six Sigma Y = f (X) Where. Y = Output, F = function, (X) = Input Most of the activities of six sigma are focused on establishing the defining equation for the process of interest. Once this equation is determined and understood, the process can be re- targeted, and variation reduced and controlled.

11. A scientific and practical method to achieve improvements in a company Scientific: Structured approach. Assuming quantitative data. Practical: Emphasis on financial result. Start with the voice of the customer. “Show me the data” ”Show me the money” Six Sigma

12. Six Sigma Methods Production Design Service Purchase HRM Administration Quality Depart. Management IT Where can Six Sigma be applied?

13. ‘Six Sigma’ companies Companies who have successfully adopted ‘Six Sigma’ strategies include:

14. Six Sigma Applications Motorola Saved $17 Billion from 1986 to 2004 GE Saved $750 million by the end of 1998 Allied Signal/Honeywell Initiated in 1992, saved more then $600 million a year by 1999 Ford Added $300 million to the bottom line in 2001 American Standard Saved $35 million in 2001 through increased quality and efficiency

15. 15 BENEFITS OF SIX SIGMA Generates sustained success Sets performance goal for everyone Enhances value for customers Accelerates rate of improvement Promotes learning across boundaries Executes strategic change

16. 16 WHEN SHOULD SIX SIGMA BE USED? Its usage depends on the type of business. In general, “If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.”

17. “At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions…. How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in cumulative manufacturing cost savings of over 11 billion dollars”*. Robert W. Galvin Chairman of the Executive Committee Motorola, Inc. MOTOROLA *From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998

18. Why 6 sigma??? Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects The Current business environment now demands and rewards innovation more than ever before due to: Customer Expectations Technological Change Global Competition Market Fragmentation “The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty.”

19. Goals of Six Sigma Improve Performance Service reduce defects stabilize processes customer satisfaction Reduce Costs improve efficiency eliminate waste reduce cost of poor quality

20. 20 WHAT IS DMAIC? ( Define,Measure,Analyse,Improve.Control) A logical and structured approach to problem solving and process improvement. An iterative process (continuous improvement) A quality tool which focus on change management style.

21. Six Sigma Process Practical Problem Define & Measure Control Practical Solution Improve Statistical Solution Statistical Problem Analyze

22. DMAIC – The Improvement Methodology DefineMeasureAnalyzeImproveControl Objective: DEFINE the opportunity Objective: MEASURE current performance Objective: ANALYZE the root causes of problems Objective: IMPROVE the process to eliminate root causes Objective: CONTROL the process to sustain the gains. Key Define Tools: Cost of Poor Quality (COPQ) Voice of the Stakeholder (VOS) Project Charter As-Is Process Map(s) Primary Metric (Y) Key Measure Tools: Critical to Quality Requirements (CTQs) Sample Plan Capability Analysis Failure Modes and Effect Analysis (FMEA) Key Analyze Tools: Histograms, Boxplots, Multi- Vari Charts, etc. Hypothesis Tests Regression Analysis Key Improve Tools: Solution Selection Matrix To-Be Process Map(s) Key Control Tools: Control Charts Contingency and/or Action Plan(s)

23. What is the problem? The “problem” is the Output (a “Y” in a math equation Y=f(x1,x2,x3) etc). What is the cost of this problem Who are the stake holders / decision makers Align resources and expectations Define – DMAIC Project What is the project? Six Sigma Projec t Charte r Voice of the Stakeholde r $ Cost of Poor Quality

24. Process Power: DMAIC—Five Step Process Define Measure AnalyzeImprove Control

25. Deployment (Define) phase Topics covered include  Team Roles  Presentation skills  Project management skills  Group techniques  Quality  Pitfalls to Quality Improvement projects  Project strategies  Minitab introduction Clearly identify the problem Utilize numerical definition Focus on process that creates the problem not on the outcome

26. Define – As-Is Process How does our existing process work? Does EVERYONE agree how the current process works? Define the Non Value Add steps

27. Define – Customer Requirements What are the CTQs? What motivates the customer? Voice of the Customer Key Customer Issue Critical to Quality SECONDARY RESEARCH PRIMARY RESEARCH Survey s OTM Market Data Industry Intel Listening Posts Industry Benchmarking Focus Groups Customer Service Customer Correspondence Obser- vations

28. Define Concept: Process and Y= f(x) Definition of Process : a series of actions or operations conducing to an end THE PROCESS: The Series of Actions The OUTPUT(s): Ys CTQs Dependent Effects Response The INTPUT(s): Xs Independent Causes Explanation Processes are Everywhere !

29. Measurement phase Topics covered include:  Quality Tools  Risk Assessment  Measurements  Capability & Performance  Measurement Systems Analysis  Quality Function Deployment  FMEA Benchmark Capability of a given process Focus on CTQ

30. Example - QFD A method for meeting customer requirements Uses tools and techniques to set product strategies Displays requirements in matrix diagrams, including ‘House of Quality’ Produces design initiatives to satisfy customer and beat competitors

32. Lead-times - the time to market and time to stable production Start-up costs Engineering changes QFD can reduce

33. Measure – Baselines and Capability What is our current level of performance? Sample some data / not all data Current Process actuals measured against the Customer expectation What is the chance that we will succeed at this level every time?

34. Measure – Failures and Risks Where does our process fail and why? Subjective opinion mapped into an “objective” risk profile number

35. Measure Concept: Gathering Process Knowledge Gather Subjective Knowledge of the Team Gather Objective Knowledge of the Process TIME PROCESS KNOWLEDGE Initial Subjective Knowledge Proved some wrong Proved some correct +

36. Measure Concept: Measurement Systems INPUTS Actual Process OUTPUTS INPUTS Measurement Process OUTPUTS This is what we WANT to see This is what we DO see What happens when we try to measure something ?

37. Measure Concept: Measurement Systems Do we measure the process the same way as our customers ? Examples : –Airline Arrival and Departure –Full cup of coffee Does the measurement consider the customer?

38. Measure Concept: Measurement Systems Variation is real! Will you always get the same answer measuring the same output a 2 nd, 3 rd, 4 th time ? Examples : Timing a recorded 100 meter dash with a hand held stop watch 3 different individuals interviewing a candidate Is the measurement consistent?

39. Analysis phase Topics include:  Hypothesis testing  Comparing samples  Confidence Intervals  Multi-Vari analysis  ANOVA (Analysis of Variance)  Regression Current process results What is possible compared to what the competition is doing

40. Six Sigma Analyze – Potential Root Causes What affects our process? y = f (x 1, x 2, x 3... x n ) Ishikawa Diagram (Fishbone)

41. Analyze – Validated Root Causes What are the key root causes? Six Sigma y = f (x 1, x 2, x 3... x n ) Critical Xs Process Simulati on Data Stratification Regression Analysis

42. Improvement phase Topics include:  History of Design of Experiments (DoE)  DoE Pre-planning and Factors  DoE Practical workshop  DoE Analysis  Response Surface Methodology (Optimisation)  Lean Manufacturing Implement changes Be creative to find new ways to do things better, cheaper, or faster

43. Improve – Potential Solutions How can we address the root causes we identified? Address the causes, not the symptoms. y = f (x 1, x 2, x 3... x n ) Critical Xs Decision Evaluate Clarify Generate Divergent | Convergent

44. Improve – Solution Selection How do we choose the best solution? Time Qualit y Cost SolutionSigmaTimeCBAOtherScore Six Sigma Solution Implementati on Plan Solution Selection Matrix ☺ Nice Try Nice Idea X Solution Right Wrong Implementation Bad Good

45. Example - Design of Experiments What can it do for you? Minimum cost Maximum output

46. What does it involve? Brainstorming sessions to identify important factors Conducting a few experimental trials Recognising significant factors which influence a process Setting these factors to get maximum output

47. Improve Concept: What Makes a Good Solution? Consider the 7 Aspects of Good Solutions  Takes the root cause out of the process  Cost effective  Minimum negative impact on any part of the system  Innovative “Upstream” fix  Employs “Poka-yoke”*  Involves the Customer/Next in Process Recipient  Allows you to meet your performance target *Poka-yoke – The concept of designing a process so it cannot fail. An example would be “required screens” when entering data in a system. If the fields are not completed, the system will not accept the “enter” command.

48. Control phase Topics include:  Control charts  SPC case studies  EWMA  Poka-Yoke  5S  Reliability testing  Business impact assessment Lock in successes Implement measures to keep variables within the new operating limits

49. Control – Sustainable Benefits How do we ”hold the gains” of our new process? Some variation is normal and OK How High and Low can an “X” go yet not materially impact the “Y” Pre-plan approach for control exceptions

50. Example - SPC (Statistical Process Control) - reduces variability and keeps the process stable Disturbed process Natural process Temporary upsets Natural boundary

51. Control Concept : Ensure ongoing success What measurements are in place to monitor ongoing performance?