SIX SIGMA OVERVIEW

Six Sigma is a disciplined process which

systematically reduces defects which are most
important to the customer.
It provides qualitative statistical and instructional
methods and devices for observing and managing
critical process variables as well as the
relationship between them.
The Many Facets of Six Sigma
Sigma is a letter in the Greek alphabet.
The term sigma is used to designate the distribution or spread about the mean
(average) of any process or procedure.
For a business or manufacturing process, the sigma value is a metric that
indicates how well that process is performing. The higher the sigma value, the
better. Sigma measures the capability of the process to perform defect-free work.
A defect is anything that results in customer dissatisfaction.
With Six Sigma, the common measurement index is defects-per-unit, where a
unit can be virtually anything -- a component, piece of material, line of code,
administrative form, time frame, distance, etc.
The sigma value indicates how often defects are likely to occur. The higher the
sigma value, the less likely a process will produce defects. As sigma increases,
costs go down, cycle time goes down, and customer satisfaction goes up.
What is a Sigma?
A sigma value is a metric commonly used to relate the
ability of a process to perform defect-free work.
The higher the sigma value the better the process is
performing and the lower the probability that a defect will
occur.
As the sigma value of a process increases,
Costs decrease
Defects decrease
Cycle time decreases
Measurement of Quality
2 308,537
3 66,807
4 6,210
5 233
6 3.4
s
Process
capability
Defects per
million
PPM
Variation is the
enemy; it must
be controlled
Measurement of Quality
The Traditional Standard
(+/- 3 s)
93.3193% Probability

3s = 66,807 Defects per Million Opportunities
What Is Six Sigma?
Six Sigma = 3.4 Defects Per Million Opportunities
What is Practical Meaning?
99% Good (3.8 Sigma)
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 at most
major airports each day
200,000 wrong drug prescriptions
each year
No electricity for almost seven
hours each month
Seven articles lost per hour
One unsafe minute every seven
months
1.7 incorrect operations per week
One short or long landing every
five years
68 wrong prescriptions per year
One hour without electricity every
34 years
99.99966% Good (6 Sigma)
The Goals of Six Sigma
DEFECT REDUCTION
PROCESS YIELD IMPROVEMENT
IMPROVED CUSTOMER DELIGHT
BUSINESS SUCCESS
Six Sigma Comparison
Focus on prevention
Low cost/high throughput
Poka yoke control strategies
Stable/predictable processes
Proactive
Low failure rates
Focus on long term
Efficient
Manage by metrics and analysis

Focus on firefighting
High cost/low throughput
Reliance on test and inspection
Processes based on random probability
Reactive
Low failure rates
Focus on short term
Efficient
Manage by seat of the pants
Six Sigma Traditional
Six Sigma takes us from fixing products so they are excellent,
to fixing processes so they produce excellent products.
Dr. George Sarney, President, Invensys Intelligent Automation Division
Six Sigma Values
The Customer Defines Quality
so, delight the customer. Meet their future needs today.
Customer Focus and Service Excellence
A vision for becoming a world- class business, defect reduction.
Service and Process Excellence
Be the best we can be today process stability (step 0)
then make continuous improvement MAIC 12 steps.
Eliminate Variability
This improves quality and reduces cost. Variability is the enemy.
Knowledge Empowers Us to Improve
Acting on fact means doing the right things.
Vision and communication make us a team.
Have Fun, While Making Money
Work smarter, not harder, enjoy your success.
Quality is Needed in Both Product and Service

Executive champions and process leaders provide focus,
leadership and commitment
Dedicated resource of highly skilled and focused individuals
(Master Black Belts and Black Belts) lead and perform
improvement efforts
Customer focused based on critical to quality (CTQ) definitions
Process of selecting key improvement projects, tracking and
quantification of results
Focused on solutions and captured gains
Dedicated resources deploy and support their functional
organizations
Six Sigma: How Does it Work?
Systematic Method of Step Function Improvements
Across all Business Functions
Improvement Road Map
Define the problem and verify the
primary and secondary
measurement systems.
Identify the few factors which are
directly influencing the problem.
Determine values for the few
contributing factors which
resolve the problem.
Determine long-term control
measures which will ensure that
the contributing factors remain
controlled.
Objective
Its Not Over Until Its Under Control
In Pursuit of Six Sigma
1985-1992 1993-1994 1994-1996 1996-1997 1997-1999
TI ABB Allied Signal Bombardier Lockheed Martin
Motorola General Electric General Electric Korea Heavy Industries
Nokia Mobile Phones Sony
Crane
Polaroid Corporation
Avery Dennison
Shimaro
McKesson
Dow
DuPont
Seagate Technology
American Express
BBA Group PLC
Toshiba
Period of Design
Period of
Refinement
Period of Results
Period of
Competitive
Awareness
Period of
New Technology
Breakthrough Strategy is Becoming the
Competitive Tool of Industry
Driving Success
Six Sigma will be the biggest, the most personally
rewarding and, in the end, the most profitable
undertaking in our history.
Jack Welch, Chairman and Chief
Executive Officer, GE
Leadership Drives Performance
Six Sigma only works when leadership is
passionate about excellence and willing to change.
Fundamentals of leadership
Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
Six Sigma is a catalyst for leaders
Everyone has the will to win, few have the will to work to win.
Bobby Knight
Why are Most Companies 3-4 Sigma?
3 sigma 4 sigma 5 sigma 6 sigma
B
A
R
R
I
E
R
Most
Companies
Past success has bred arrogance
Dependence on inspection and rework
Reliance on trial and error
(also called one-factor-at-a-time (OFAT) analysis)
Reward firefighting behavior
Little focus on quality measurements
Functional silos inhibit collaboration
Leap Toward Operation Excellence
Conviction in the opportunity
Belief in the methodology
Openness to challenge status quo
New skills, tools, and information
New behaviors for management
3 sigma 4 sigma 5 sigma 6 sigma
B
A
R
R
I
E
R
Most
Companies
Whats needed to make the leap?
The customer problem
Hypothesis:
Customers will not repurchase a companys
product if they are not satisfied with the
performance of a current version of that
companys product.

Corollary:
The stronger the degree of satisfaction with a
companys current product, the greater the
likelihood that a customer will repurchase similar
products from that company in the future.
What is Critical to Customer Enthusiasm?
Delivery
&
Service
Process
Throughput
Zero
Defect
Quality
Customer
Value
Drive out constraints!
Respond
Faster! Better!
Drive down cycle times and lead times!
Drive out variation! Flawless reliability!
Maximizing Customer Alignment
Supplier strives for performance on cycle time, cost and
defects to meet customers increasing expectations on
delivery, price and quality
Getting it Right the First Time
We have passed the point where brute force and
intimidation will solve the problems.
Frustrated line supervisor
Classic Factory Quality
Quality through inspection
Measure yield at final inspection
Maximize yield through re-work
Scrap rejected parts
Low customer returns defines good quality
No Longer Good Enough...
Redefining Quality - Not Just Meeting Specs
Reduce waste in entire value stream
Scrap and rework
In-service failures
Excess inventory
Overtime
Customer/supplier inefficiency
Increase customer satisfaction
Design
Price
Reliability
Delivery
Meet Customer
Requirements and
Expectations
Absence of Waste Over
Product Life Cycle
Highest Quality Producer Has Lowest Cost
Data Driven
Communicate in an objective manner
Collect quantifiable facts about an object or process
Establish baseline information regarding a problem, part or
process
Facilitate cost-benefit analysis of proposed solutions and
improvements
Quantify the lasting impact of a solution through
comparison
Allow an extension of a specific solution across many
areas
Data allows us to establish a common language throughout the
organization:
The Role of Statistics in Six Sigma
We dont know what we dont know
If we dont have data, we dont know
If we dont know, we cannot act
If we cannot act, the risk is high
If we do know and act, the risk is managed
If we do know and do not act, we deserve the loss.

To get data, we must measure
Data must be converted to information
Information is derived from data through statistics
Dr. Mikel J. Harry
Establish Meaningful Metrics
Quality = Performance = Customer
Performance Metric
(First-pass-yield) x (Up-time) x (Efficiency)
First-pass-yield Up-time Efficiency
Quality issues
Rework
Retest requirements
Scrap
Customer defects
Cost of operation
Supplier quality
Machine run time
Maintenance
Replacement
Repair
Capital issues
Constraint
Training needs
Process flow
Maintenance
Hidden rework
ROA issues
Use Six Sigma Tools to Solve Problems Across the Board
Use the Right Metrics to Measure Progress
Getting Started
The organization becomes aware
of the Six Sigma concept and
seeks additional information.
Management makes the decision to
take the next step by selecting a key
executive as their Six Sigma Senior
Champion.
Contact
An executive briefing provides
management insights on how Six
Sigma can be implemented and
applied within their business.
Briefing
Decision
Deploying the Program
The deployment plan spells out
the details of how Six Sigma
will be implemented.
The Six Sigma deployment and project champions oversee and
guide the overall Six Sigma initiative. They understand all of the
implementation and application details associated with Six Sigma
and develop a comprehensive deployment plan.
Black Belts are trained in the strategies, tactics and application
tools of Six Sigma. Once the training experience is complete,
they are certified. Back on the job, they guide and assist project
teams in pursuit of process improvement goals.
Plan
Champions
Black Belts
Lear Structure Established to Implement
the Six Sigma Process
Role of Champions
Create the vision
Select meaningful business impact projects
Ensure adequate resources are available
Support and mentor the Black Belts
Ensure finance values the projects appropriately
Sustain the gains
Role of Black Belts
Use the tools to quickly and efficiently drive
improvement
Share recognition with team members
Work with Champion to define additional opportunities
for Black Belt projects
Work with Champion to resolve any resource or
implementation issues
Keep Champion apprised of project(s) status and
issues
Help the team learn and understand the Six Sigma
tools and techniques
Role of Project Teams
Learn the Six Sigma tools and methods
Keep Black Belt informed on any relevant issues
Conduct experiments and gather data
Design solutions which are low maintenance
Analyze and solve problems
Roles and Responsibilities
The Impact on Costs
Ten to 50 percent of a typical companys costs are wasted on
inspection, scrap, rework, warranty issues, crisis fire fighting, and
recurring corrective actions. In addition, untold losses are incurred
when customers are lost.
Price to customer
Cost to business
Profit
Overhead
Material and labor costs
Higher Quality and Increased Margin
Market Advantage as the Low Cost Provider
The Fundamental Logic
Some corporations are experiencing significant gains
in profitability and quality.
Breakthrough in costs and defects is achieved by
reducing variation in key business processes.
Variation in key process is driven down through
Six Sigma.
Six Sigma is attained through focused projects,
which follow the breakthrough strategy.
Focused Six Sigma breakthrough projects are led by
Black Belts.
Progress is made completing projects.