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					Brief Introduction
  to Six Sigma
Introduction to Six Sigma

Six Sigma was the expression given as a synonym by Motorola in 1986 for
their quality program. Since then, a general definition has developed, and it
has become a useful technique for measuring quality. It has become a tool
used particularly among technology driven companies such as Allied Signal,
General Electric, Kodak and Texas Instruments.

What is Six Sigma?
Six Sigma is a statistical measurement of only 3.4 defects per million –

Six Sigma is a management philosophy focused on eliminating mistakes,
waste and rework. It establishes a measurable status to achieve and
embodies a strategic problem-solving method to increase customer
satisfaction and dramatically reduce cost and increase profits.

Six Sigma gives you discipline, structure, and a foundation for solid decision-
making based on simple statistics. The real power of Six Sigma is simple
because it combines people power with process power.
Introduction to Six Sigma

What can Six Sigma do for your organization?

If your organization is focused on customer satisfaction, then Six Sigma will
offer you a method and some tools for the identification and improvement of
both internal and external process problems to better meet customer needs by
identifying the variations in your organization’s processes that might influence
the customer’s point of view, negatively.

What does it mean to be “Six Sigma” anyway?

It’s goal is to reduce output variability through process improvement. Six
Sigma refers to an organisation’s measure of quality that strives for near
perfection.
  Introduction to Six Sigma

    What Is SIX SIGMA?                It’s a philosophy for working            What Can It Do For Your Organization?
                                      smarter, not harder, through
                                      reducing variation, improving     If your organization is focused      talking. In other words, the
    Six   Sigma      has     three
                                      process capability and having     on customer satisfaction, then       quality of our products can
    elements.                                                           Six Sigma will offer you a
                                      fewer defective products.                                              tell us how capable our
    It represents a statistical                                         method and some tools for            processes really are.
    measurement on how good           Six Sigma has significantly       identification and improvement
                                      improved quality, image, and      of both internal and external
    products,      services    and
                                      customer satisfaction while       process problems to better
    processes actually are. For                                         meet customers’ needs by
    example      a    Six   Sigma     providing bottom line savings
                                                                        identifying the variations in
    process has 3.4 defects per       to companies world wide:
                                                                        your organisation’s processes
    million, while a three Sigma        Motorola: $2.2 Billion in 2-3   that might influence the
    process has 66,807 defects         years . General Electric: $1.2   customer’s point of view
    per million.                       Billion in 1 year. Honeywell :   negatively. The measurement
                                         $1.2 Billion in 2 Years        and improvement of our
    It’s a business Strategy. If                                        processes is absolutely
                                      Texas Instruments :$600,000
    you improve the sigma rating                                        essential if we are to achieve
                                       Million in 2 Years. Polaroid
    of a process, the product                                           operational excellence and the
                                         :$100 Million in 1 Year        ideals of total quality. To do so,
    quality improves and the
    costs go down.                                                      we must ensure our products
                                                                        do the



What can Six Sigma do for your organization?

If your organization is focused on customer satisfaction, then Six Sigma will offer you a method and some tools for the identification and
improvement of both internal and external process problems to better meet customer needs by identifying the variations in your
organization’s processes that might influence the customer’s point of view, negatively.

What does it mean to be “Six Sigma” anyway?

It’s goal is to reduce output variability through process improvement. Six Sigma refers to an organisation’s measure of quality that strives
for near perfection.
Brief Introduction to Six Sigma

There has been a tremendous amount of discussion around defining
Six Sigma within businesses and organizations.
Brief Introduction to Six Sigma

                    I start the explanation with……..



              1                       2                          3
      Customer Focus             Data Driven             Robust Methodology

 Ensuring all outputs meet   Data is necessary to      Data alone cannot solve all
                             identify input, process   your customer or business
 customer specifications.
                             and output areas for      issues. A methodology for
                             improvement.              defect definition,
                                                       measurement, analysis,
                                                       improvement and control.
Brief Introduction to Six Sigma

Six Sigma is :

The symbol for a statistical measure called the standard deviation.

  This measure helps describe the shape of a bell curve like the one below.




When one knows the average ( X) and standard deviation (σ) of a process,
           one can improve that process to near perfection
Brief Introduction to Six Sigma

A 3σ- sigma level translates to ;

     Airline crashes each week.
     15,000 dropped newborn babies per year.
     Banks would lose thousands of cheques daily.




3σ quality literally costs businesses between 25-40% of their annual operating
                            income in waste and rework.
 Brief Introduction to Six Sigma

Six Sigma -- Practical Meaning

     99% Good (3.8 Sigma)            99.99966% Good (6 Sigma)
• 20,000 lost articles of mail per    • Seven articles lost per hour
  hour

• Unsafe drinking water for           • One unsafe minute every seven
  almost 15 minutes each day            months

• 5,000 incorrect surgical
  operations per week                 • 1.7 incorrect operations per week

• Two short or long landings at       • One short or long landing every
  most major airports each day          five years

• 200,000 wrong drug
                                      • 68 wrong prescriptions per year
  prescriptions each year

• No electricity for almost seven     • One hour without electricity
  hours each month                      every 34 years
Brief Introduction to Six Sigma

c




    Define                    Measure                  Analyse                 Implement                   Control

• Define our customer,    • Measure the business    • Determine root           • Implement Solutions    • Institutionalize
  CTQ’s and core            Process performance       causes/opportunities     • Generate, design and     improvement &
  Business processes      • What are the key        • Current state analysis     implement                implement ongoing
• What is the Business      metrics for this        • Cost benefit Analysis?     improvements to          monitoring
  Case for the Project?     business process?       • Who will help make         improve productivity   • control risk, quality,
• Identify The Customer   • Are metrics valid and     changes?                   and service levels       cost, schedule, scope,
• Current state map         reliable?               • Resource                 • re-integrate the         and changes to the
• Future State map        • Do we have adequate       requirements               various subprojects?     plan
• Recommendations &         data on this process?   • What could cause this    • Reinvest/Or Keep the   • Monitor and report
  benefits                • How will I measure        change effort to fail?     saves made               services
                            progress?               • What major obstacles                              • Monitor availability
                          • How will I measure        do I face in?                                       against SLA’s
                            project success?          completing this                                   • Monitor Security.
                                                      project?
 Brief Introduction to Six Sigma

With Six Sigma companies have seen stunning improvements ….


Company               ROI              Time        Frame

Allied Signal         $1.2 billion     2           Years
General Electric      $1.1 billion     9           Months
Polaroid              $100 million     1           Year
Lockheed Martin       $10 million      9           Months
Siebe PLC             $100 million     9           months
Crane's               $10 million      1           Year


                      Source: Six Sigma Academy
Brief Introduction to Six Sigma

So How Do You Make Six Sigma Work?

Cleaning company example


Who is your customer?

Anyone hiring you to perform cleaning services is your customer.



What are their requirements? These should be specified in the request for each
customer. (SLA)
Brief Introduction to Six Sigma

What are the correct metrics?
Remember, you can't improve what you don't measure.

What's important to your customer?

     Ask them.
     Interview them.
     Create a written survey and allow them to return the survey to you anonymously.

Here are a few ideas about what I require from my cleaning company on a daily basis:

       All rubbish removed
       All glass & mugs cleaned
       All rugs completely dirt free
       All floors shiny
       No dust on desk surfaces
       All movable objects (chairs, wastebaskets, tables, etc.) replaced in proper position
Brief Introduction to Six Sigma

How do you measure these requirements?

       Define a unit, opportunity and defect.
       Measure your process.
       Randomly pick a day a week and visit the facility
        when the cleaning group is done…




Then ask yourself…

      Is every wastebasket empty?
      Is every pane of glass and counter-top clean?
      Can you flip over a rug and see dirt on the floor?
      How well a cleaning process is running?
Brief Introduction to Six Sigma

  How do you improve your processes?

  1. Look at what is causing your defects.
  2. Create a pareto diagram of your defects.
  3. Focus on the major issues using the Six Sigma DMAIC methodology.
Brief Introduction to Six Sigma


With Six Sigma a company can;

              Measure how many “defects” it has in a process.
              It can systematically figure out how to eliminate them.
              Reduce costs
              Improve productivity
              Increase market share,

         ………………………and achieve other positive results..


The best organizations are at about 3 to 4 sigma, which is about 6,200
                  defects per million opportunities

				
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posted:4/10/2012
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