Week 13 - Introduction To Six Sigma

MG 4082
Quality Management systems

Week 13
1
SIX SIGMA
"Delivering Tomorrow's Performance Today"
2
Background
The term “Six Sigma” was coined by Bill Smith,
an engineer with Motorola
Late 1970s - Motorola started experimenting
with problem solving through statistical
analysis
1987 - Motorola officially launched it’s Six
Sigma program
3
History
4
COMPANIES USING
Six Sigma is in use in all
industries around the
world. Some of companies
can be listed as:
Motorola
Ericsson
General Electric
Sony
Ford Motor Co.
CITI bank
5
WHAT IS SIGMA "σ"?
A term (Greek) used in statistics to
represent standard deviation from mean value,
an indicator of the degree of variation in a set
of a process.
Sigma measures how far a given process
deviates from perfection.
6
WHAT IS SIX SIGMA?
Six Sigma - A highly disciplined process that
enables organizations deliver nearly perfect
products and services.
A statistical concept that measures a process in

terms of defects – at the six sigma level, there
3.4 defects per million opportunities.
Contd…
7
WHAT IS SIX SIGMA
Six Sigma is not:
•A standard
•A certification
•Another metric like percentage
Rather!
It is a Quality Philosophy and the way of
improving performance by knowing where you are
and where you could be.
Methodology to measure and improve company’s
performance, practices and systems
8
WHY SIX SIGMA ?
Six Sigma emerged as a natural evolution in
business to increase profit by eliminating defects
The Current business environment now demands
and rewards innovation more than ever before due
to:
 Customer Expectations
 Technological Change
 Global Competition
 Market Fragmentation
9
SIGMA LEVELS
Sigma Level ( Process Defects per Million
Capability) Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
10
SIX SIGMA METHODOLOGY
(It takes money to save money)
BPMS
 Business Process Management System
DMAIC
 Six Sigma Improvement Methodology
DMADV
 Creating new process which will perform at Six
Sigma
11
BUSINESS PROCESS MANAGEMENT
SYSTEM:
BPM strategies emphasize on process improvement
and automation to derive performance
Combining BPM strategies with sigma six is most
powerful way to improve performance
Both strategies are not mutually exclusive but some
companies produced dramatic results by combining
them.
12
WHAT IS DMAIC?
(Define,Measure,Analyse,Improve.Control)
A logical and structured
approach to problem solving
and process improvement.
An iterative process

(continuous improvement)
A quality tool which focus

on change management
style.
13
PHASES
Phases of Six Sigma are:
Define specific goals to achieve outcomes,
consistent with customers demand and
business strategy
Measure reduction of defects
Analyze problems ,cause and effects must
be considered
Improve process on bases of measurements
and analysis
Control process to minimize defects
14
WHAT IS DMADV?
Define the project
Measure the opportunity
Analyze the process
options
Design the process
Verify the performance
15
WHEN SHOULD SIX SIGMA BE USED?
Its usage depends on the type of business. In general,
“If there are processes that generate a lot of negative

customer feedback, whether that customer is
internal or external, the components of Six Sigma
should be considered as a means to study and rectify
the problem.”
16
BENEFITS OF SIX SIGMA
Generates sustained success
Sets performance goal for everyone
Enhances value for customers
Accelerates the rate of improvement
Promotes learning across boundaries
Executes strategic change
17
Barriers to implementation
Barrier #1: Engineers and managers are not interested in

mathematical statistics
Barrier #2: Statisticians have problems communicating
with managers and engineers
Barrier #3: Non-statisticians experience “statistical
anxiety” which has to be minimized before learning can
take place
Barrier # 4: Statistical methods need to be matched to
management style and organizational culture
KEY ROLES FOR SIX SIGMA
Six Sigma identifies several key roles for its successful
implementation:
Top
Executive leadership
Champions
Master Black Belts (Identify projects& functions)
Black Belts (Identify non value added activities)
Green Belts ( works on small projects )
Bottom
19
SIX SIGMA BELTS
The Six Sigma Belts denote the different levels an
individual can achieve in Six Sigma, a business
management approach that was at the onset
advanced by Motorola's manufacturing division in the
USA in 1986.
It has its basis on attentive and meticulous planning
and constant determined application that can be
made exclusive in dealing with issues that concern a
business so as to improve on the marketability of
their products and services.
20
SIX SIGMA BELTS
Top
Bottom
21
SIX SIGMA BELTS
The master, or master black belt is a person who is
at the highest level of expertise on the subject.
They are fully devoted to the process and have no
other job responsibilities outside the methodology.
They are involved in every aspect of training and
mentoring of all of the lower belt ranks.
22
SIX SIGMA BELTS
A certified Black Belt exhibits team leadership,
understands team dynamics, and assigns their team
members with roles and responsibilities.
They have a complete understanding of the DMAIC
model in accordance with the Six Sigma principles,
have a basic knowledge of lean enterprise concepts,
and they can quickly identify "non-value-added"
activities.
Black Belts primarily focus on project execution.
23
SIX SIGMA BELTS
Green Belt has emphasis on the DMAIC (Define,
Measure, Analyze, Improve and Control) model.
Six Sigma Green Belt certification helps the employee
serve as a trained team member within his or her
function-specific area of the organization.
This focus allows the Green Belt to work on small,
carefully defined Six Sigma projects, requiring less
than a Black Belt's full-time commitment to Six Sigma
throughout the organization.
24
TOOLS & TECHNIQUES
7QC tools
Check Sheets (collect data to make improvements)
Pareto Charts( define problem and frequency)
Cause and effect diagram (Identify possible causes to
solve problem)
Histogram (Bar charts of accumulated data to
evaluate distribution of data)
Scatter diagram (plots many data points and pattern
between two variables)
Flow Chart (Identify unwanted steps)
Control charts (Control limits around mean value)
25

Week 13 - Introduction To Six Sigma

Uploaded by

Copyright:

Available Formats

Week 13 - Introduction To Six Sigma

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Week 13 - Introduction To Six Sigma

Uploaded by

Copyright:

Available Formats

MG 4082

Quality Management systems

A statistical concept that measures a process in

An iterative process

A quality tool which focus

“If there are processes that generate a lot of negative

Barrier #1: Engineers and managers are not interested in

You might also like