at Six Sigma examples Six Sigma Scale Why Six Sigma
Sigma Methodologies & Tools
WHAT’S IN A NAME?
Sigma is the Greek letter representing the standard deviation of a population of data. Sigma is a measure of standard deviation (the data spread)
SIX SIGMA IS …
A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities
A defect is anything that results in customer dissatisfaction Six Sigma is a methodology and a symbol of quality
HOW OFTEN ARE WE DELIVERING ON TIME?
If the target time is 30 Mins, the graphs below show two curves with average at 25 Mins
x 30 2 sigma
x 30 4 sigma
How many standard deviations can you “fit” within customer expectations? Managing by the average doesn’t tell the whole story. The average and the variation together show what’s happening.
MANAGING UP THE SIGMA SCALE
Sigma 1 2 3 4 5 6
% Good % Bad
EXAMPLES OF THE SIGMA SCALE
In a world at 3 sigma. . .
In a world at 6 sigma. . .
There are 964 U.S. flight cancellations per day.
The police make 7 false arrests every 4 minutes.
1 U.S. flight is cancelled every 3 weeks.
There are fewer than 4 false arrests per month.
In one hour, 47,283 international long distance calls are accidentally disconnected.
It would take more than 2 years to see the same number of dropped international calls.
WHY SIX SIGMA?
At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone
Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort AlliedSignal reports saving $ 1,5 billion through Six Sigma.
Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications
How are these savings realized?
cost of scrap?
cost of rework?
cost of excessive cycle times and delays?
Benefits of added capacity and man-hours
DMAIC – THE IMPROVEMENT METHODOLOGY
Objective: DEFINE the opportunity
Measure Analyze Improve Control
Objective: Objective: Objective: MEASURE current ANALYZE the root IMPROVE the performance causes of problems process to eliminate root causes Key Measure Tools: • Critical to Quality Requirements (CTQs) • Sample Plan • Capability Analysis • Failure Modes and Effect Analysis (FMEA) Key Analyze Tools: • Histograms, Boxplots, MultiVari Charts, etc. • Hypothesis Tests • Regression Analysis 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 Improve Key Control Tools: Tools: • Solution Selection • Control Charts Matrix • Contingency • To-Be Process and/or Action Map(s) Plan(s)
DEFINE – DMAIC PROJECT
WHAT IS THE PROJECT?
Cost of Poor Quality
Voice of the Stakeholde r
What is the problem? The “problem” is the Output What is the cost of this problem Who are the stake holders / decision makers Align resources and expectations
DEFINE – CUSTOMER REQUIREMENTS
WHAT ARE THE CTQS? WHAT MOTIVATES CUSTOMER?
Voice of the Customer
Key Customer Issue
Critical to Quality
Listening Posts Industry Intel