01 What Is Six Sigma PDF
01 What Is Six Sigma PDF
01 What Is Six Sigma PDF
Six Sigma
Basics of Six Sigma
The common feature of any such process as shown above, is emphasis on input and
output
• Input is something put into a process or expended in its operation, to achieve an
output or a result
• Output is the final product or service delivered to an internal / external customer
• Output(s) of one process can be input(s) to another process 2
Basics of Six Sigma
Literally speaking, the 18th letter in the Greek alphabet, Sigma(σ) , is the symbol for
Standard Deviation
The 6 SIGMA measure of quality is 3.4 Defects Per Million Opportunities (DPMO).
The concept of DPMO will be discussed in the DEFINE phase in greater details.
What is Six Sigma
Six Sigma is a management methodology of which the GOAL is to improve the
performance and the quality of your processes, services & products dramatically.
5,000 incorrect surgical operations per week 1.7 incorrect operations per week
Two short or long landings at most major One short or long landing every five years
airports each day
200,000 wrong drug prescriptions each year 68 wrong prescriptions per year
No electricity for almost seven hours each One hour without electricity every 34 years
month
Why Six Sigma?
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History of Six Sigma
Motorola: In the 1980s, Motorola CEO Bob Galvin was struggling to compete with
foreign manufacturers, when Senior Sales Vice President Art Sundry admitted that
"our quality stinks,". Quality Engineer Bill Smith coined the expression “Six Sigma” to
indicate improvement measures. Motorola increased the measurement scale of
defects to parts per million, which prompted the use of the 'six sigma' terminology.
Dr. Mikel J. Harry played a vital role in formulating the DMAIC approach. Motorola
branded Six Sigma. Allied Signal
Johnson & Johnson,
Ford, Nissan,
Motorola
General Electric Honeywell
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History of Six Sigma (Continued…)
1986: Motorola Starts Six Sigma Initiative (By Mr. Bob Galvin, Chairman)
2001: Motorola Saves $16 Billion cumulatively
1995: Jack Welch Initiates Six Sigma at GE
1998: Allied Signal Saves $0.5 Billion
2000: GE Saves $2 Billion Annually
Motorola initiated Six Sigma for process improvement, thereby reducing defects to negligible levels
Motorola wins Malcolm Baldridge Quality Award
GE uses Six Sigma methodology to improve the entire Business System
Mikel Harry is acknowledged as the Father of Six Sigma; however, he confers the title on Bill Smith for devising
this methodology
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History of Continuous Improvement
Walter A. Shewhart
• Developed and used control chart
• Known as father of statistical process control
W. Edward Deming
• Emphasized the need for change
• Developed P-D-C-A cycle
Joseph M. Juran
• Developed three managerial processes
• Helped businesses understand continuous process improvement
Philip B. Crosby
• Originated the zero defects concept
• Established 14 steps to quality improvement
Armand V. Feigenbaum
• Originated concept of total quality control
• He served as ASQ president for two consecutive terms
Kaoru Ishikawa
• Developed the cause and effect diagram
• Part of JUSE
Genichi Taguchi
• Developed Law for Loss to Society
• Developed robustness concept for quality
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History of Continuous Improvement
Quality
circles Reengineering Benchmarking
Six Sigma
(1995-
Lean
Manufacturing
(1979- (1996-1997) (1988 -1996)
present)
(2000-
present)
1981)
Lean Six
Statistical
Process
ISO 9000
(1987-
Balanced
Scorecard
Baldrige
Award Criteria Sigma
Control (Mid-
1980s)
present)
(1990s –
present)
(1987-
present) (2002-
present)
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It has now been adopted in many different environments including the services industry
Consulting
Hospitality
Store retail
IT/IT IS/ ITES
Banking
Industrial products
High fashion
Automotive
Manufacturing
Toyota
Value and Foundations of Six Sigma
Six Sigma is a fact –based , data driven philosophy of improvement that values defect
prevention over defect detection.
Six Sigma is about creating a culture that demands perfection and that gives
employees the tools to enable them to pinpoint performance gaps and make the
necessary improvements.
Six Sigma does make use of the full range of statistical tools that are available for
analyzing and solving problems.
The primary objective of Six Sigma is to reduce Variability. Variability is the ally of
defects. Hence, as the variation reduces, the number of defects also comes down.