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Brief IntroductionBrief Introduction

to Six Sigmato Six Sigma

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Introduction to Six SigmaIntroduction 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 ithas 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.

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Introduction to Six SigmaIntroduction to Six Sigma

What can Six Sigma do for your organization?

If your organization is focused on customer satisfaction, then Six Sigma willoffer you a method and some tools for the identification and improvement of both internal and external process problems to better meetcustomer needs byidentifying the variations in your organization’s processes that might influencethe 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. SixSigma refers to an organisation’s measure of quality that strives for near 

perfection.

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

There has been a tremendous amount of discussion around definingSix Sigma within businesses and organizations.

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

I start the explanation with……..

1Customer Focus

Ensuring all outputs meet

customer specifications.

2

Data Driven

Data is necessary toidentify input, processand output areas for improvement.

3

Robust Methodology

Data alone cannot solve allyour customer or businessissues. A methodology for defect definition,measurement, analysis,improvement and control.

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Brief Introduction to Six SigmaBrief 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

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Brief Introduction to Six SigmaBrief 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.

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

Six Sigma -- Practical Meaning

99.99966% Good (6 Sigma)99% Good (3.8 Sigma)

• Seven articles lost per hour 

• One unsafe minute every seven

months

• 1.7 incorrect operations per week

• One short or long landing everyfive years

• 68 wrong prescriptions per year 

• One hour without electricity

every 34 years

• 20,000 lost articles of mail per hour 

• Unsafe drinking water for 

almost 15 minutes each day

• 5,000 incorrect surgical

operations per week

• Two short or long landings atmost major airports each day

• 200,000 wrong drug

prescriptions each year 

• No electricity for almost seven

hours each month

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

Six Sigma Road Map;

• Measure the businessProcess performance

• What are the key

metrics for thisbusiness process?

• Are metrics valid andreliable?

• Do we have adequatedata on this process?

• How will I measureprogress?

• How will I measureproject success?

• Determine rootcauses/opportunities

• Current state analysis

• Cost benefit Analysis?• Who will help make

changes?• Resource

requirements• What could cause this

change effort to fail?• What major obstacles

do I face in?completing thisproject?

• Define our customer,CTQ’s and coreBusiness processes

• What is the BusinessCase for the Project?

• Identify The Customer • Current state map• Future State map• Recommendations &

benefits

• Implement Solutions• Generate, design and

implement

improvements toimprove productivityand service levels

• re-integrate thevarious subprojects?

• Reinvest/Or Keep thesaves made

• Institutionalizeimprovement &implement ongoing

monitoring• control risk, quality,

cost, schedule, scope,and changes to theplan

• Monitor and reportservices

• Monitor availability

against SLA’s• Monitor Security.

Define Analyse Implement ControlMeasure

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

With Six Sigma companies have seen stunning improvements ….

Company ROI Time Frame

Allied Signal $1.2 billion 2 YearsGeneral Electric $1.1 billion 9 Months

Polaroid $100 million 1 Year  Lockheed Martin $10 million 9 MonthsSiebe PLC $100 million 9 monthsCrane's $10 million 1 Year  

Source: Six Sigma Academy 

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Brief Introduction to Six SigmaBrief Introduction to Six Sigma

So How Do You Make Six Sigma Work?

Cleaning company example

Anyone hiring you to perform cleaning services is your customer.

Who is your customer?

What are their requirements? These should be specified in the request for eachcustomer. (SLA)

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Brief Introduction to Six SigmaBrief 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

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Brief Introduction to Six SigmaBrief 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?

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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.

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Brief Introduction to Six SigmaBrief 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