Company Introduction to sIX 6 SIGMA

1. EBSL
Intro to Six Sigma
EBSL Technologies Int'l
www.ebsltechnologies.com
internal consultant training
IT Operations
Training
Presented by
Jon CRG Shende FBCS CITP
Director IT Services
October 2008

2. EBSL
Six (6) Sigma- History
Sigma as a measurement standard can be traced back to Carl Frederick Gauss
(1777-1885). He introduced the concept of the normal curve
Sigma as a measurement standard i.e. product variation, can be traced to
Walter Shewhart in the 1920's who demonstrated that three sigma from the
mean is the point where a process requires correction
However credit for coining of the term “Six Sigma” goes to a Motorola
engineer named Bill Smith
Other prominent contributors to 6 sigma are, Mikel Harry, the Japanese,
Unisys Corp in 1988 & Asea Brown Boveri(ABB) in 1993
ABB gave Six Sigma its final finishing touch by putting emphasis on
customer satisfaction
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3. EBSL
What is Six (6) Sigma?
Six(6) Sigma is a highly statistical methodology which provide an
organization with tools to improve business processes
It prioritizes projects and aligning resources to support key strategic
initiatives
Six (6) Sigma aims to increase performances and decrease process variations
leading to
- defect reductions
- improvement in profits
- improved employee morale and
- improving an organization's quality of product or services
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4. EBSL
Six (6) Sigma
Six (6) Sigma is a customer-centric process which can
1. Yield major returns on investment from projects
2. Changes how management functions
3. Increase customer satisfaction e.g. a 5% increase in customer retention
has shown to increase profits by more than 25%
There is an estimate that companies lose 15-20% of revenues each year
due to ineffective and inefficient processes
4. Conduct measurable tracking to show what processes are working and
which are not – speeding up significant improvement
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5. EBSL
EBSL & Six (6) Sigma
Improve and increase customer acquisition
Build a culture of ownership and empowerment
Ensure a seamless integration of organizational processes
Accelerate revenue growth and sustain our profitability in the long term
Implementation
Focus on customer driven service and excellence
Improve customer satisfaction level
Improve customer referral
Ensure quality in deliverables
Manage cost of quality
Six Sigma can be used to achieve a
Quality Framework -iQMS
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6. EBSL
Roles and Responsibility
Deployment Identify and Prioritize Projects by Division
Manager Assign & review activities of Black Belts
Champions/ Facilitate Project Implementation & Key Stakeholder
Sponsors
Master Black Belts Mentor/coach Black Belts
Teach Six Sigma techniques
Black Belts Lead 4-6 strategic improvement projects/year
Seasoned expert in Six Sigma techniques
Help local organization in Six Sigma disciplines
Green Belts Domain Experts-Spend 20-30% time on a Project
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7. EBSL
6 Sigma Methodologies
Two basic methodologies are DMAIC & DMADV
Define, Measure, Analyze, Improve and Control most common method
DMAIC is robust,provides a framework and checklist to prevent critical steps
from being missed. It also defines CTQs 1st
CTQs key drivers provides data on process performance
This data can be used to improve process performance
Define project Measure current situation Analyze to identify causes
Improve Control
DMAIC Flow Diagram 7

8. EBSL
DMAIC Flow
Define Measure Analyze Improve Control
Value Stream Map Ops Definitions Pareto Charts Brainstorming Control Charts
Financial Analysis Data Collection Plan C&E Matrix Benchmarking Standard Operating
Charter Form Pareto Chart Fishbone Diagrams Process Improvement Procedures (SOP’s)
Stakeholder Analysis Histogram Brainstorming Techniques Training Plan
Communication Plan Box Plot Detailed ‘As-Is’ Process Line Balancing Communication Plan
SIPOC Map Stat Sampling Maps Process Flow Implementation Plan
High-Level Process Measurement System Basic Statistical Tools Improvement Visual Process
Map Analysis Non Value-Added Constraint Control
Non-Value Added Setup Reduction Analysis Identification Mistake-Proofing
Analysis Kaizen Hypothesis Testing Operations Planning Process Control Plans
VOC and Kano Control Charts Confidence Intervals FMEA Project
Analysis Process Capability FMEA Solution Selection Commissioning
Lean Quality Function Simple & Multiple Matrix Project Replication
Deployment (QFD) Regression Process Maps Plan-Do-Check-Act
RACI & Quad Charts One way ANOVA Simulation
Supply Chain Analysis Piloting
Adapted from Lean Six Sigma for Service by Michael George 8

9. EBSL
Some 6 Sigma Tools
CTQ Diagram
CTQs influenced by VOC and customers view of quality
It is specific and measurable
Can be defined via specification to determine whether CTQ characteristic has
been met
VOC
CTQ
Need CTQ
Driver CTQ CTQ
CTQ
CTQ
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10. EBSL
Some 6 Sigma Tools
Ishikawa (Fishbone) Diagram
A visual tool used to logically organize and brainstorm possible causes to address a specific
problem or effect.
Ishikawa Diagram helps in identifying root causes
Primary Cause
Secondary Cause
Backbone Problem
Root Cause
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11. EBSL
Some 6 Sigma Tools
Parento Chart
A Parento Chart is a vertical bar graph where the y axis represents the frequency or impact of
problems. They are arranged in descending order of height from left to right.
This chart addresses Causal Analysis and Resolution and helps to identify vital causes
responsible for 80% of the defects
35 100%
30
80%
25
20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D
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Frequency Cumulative Frequency

12. EBSL
Some 6 Sigma Tools
Control Chart: This is a graphical plot of a parameter over time used to identify assignable
variations allowing adjustments to the process being monitored
They are the primary tools used for Statistical process Control and can be used to
quantitatively manage a project’s defined process. This to achieve a project’s established
quality and process-performance objectives
We can use this in tandem with a Control – Impact Matrix
Control
Vital Few Cost Ineffective
High Control – High Low Control – High Impact
Impact
Impact
Cost Ineffective Trivial Many
High Control – Low Impact Low Control – Low Impact
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13. EBSL
Some 6 Sigma Tools
- The Potential-Problem Analysis (PPA) method provides a challenging analysis of a
developed idea or action in order to pre-empt any potential for going wrong
PPA helps in addressing areas within Risk Management by listing possible causes for
each potential problem and developing preventive actions and contingency plans
- FMEA helps achieve specific goals of Risk Management. It identifies potential failure
modes and rates the severity of their effect. It outputs an objective evaluation of cause
occurrence with an ability to detect when those causes occur. It ranks the order of
potential product and process deficiencies and focuses on eliminating product and
process concerns
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14. EBSL
FMEA
Failure Mode
The manner in which a service does not meet a customer’s expectations
Effects Analysis
A study of the effects of failure on the function or purpose of a service.
Increases the likelihood that potential failures, their effects and causes are considered prior to a
final execution of product or services, by ensuring proper planning of preventive actions
Key to its success are effective time management, focusing on decisions driven by data, using
this data to verify the relationships between root causes as well as establishing criteria ratings
and mapping effective preventive actions
An FMEA can also be used as to gauge the starting point for later control plans, trouble-
shooting guides or preventive maintenance plans and is best applied in an iterative process
containing detailed information about a product or process
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15. EBSL
6 Sigma as a Management System
Management should implement 6 Sigma as a means of responding to critical
organizational needs by integrating proactive, customer-focused management
into our daily routine.
Six Sigma as a management system is not owned by senior or middle
management
It is a discovery processes integrating solutions, ideas, and improvements
that take place at the front lines of the organization
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16. EBSL
Practical Exercise
-Define Suppliers-Inputs-Process-Ouputs-Customers ( SIPOC) & CTQs
SIPOC can be seen as a high-level process map; process is defined as [Y = f(X)]
-Prioritize SIPOC Input & Output
Define Processes (Value Added Chain Diagram- VACD / BPMN)
Generate RA(S)CI Chart [role and responsibility reporting]
-Navigate to Fishbone
-Assign & define details for Critical Factor
-Allocate Critical Factors to processes (VACD / BPM)
-- Design Critical to Quality-Tree(CTQ-Tree)
-- Improve processes
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