Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste; combining lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste (muda): defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, extra-processing

1. CULTURE
METHODOLOGY
TOOLS
SUCCESS
1

2. Quality - Review
Which car is quality car?
Tata Nano Mercedes Benz
2

3. Quality - Review
Quality Definition
 Meeting customer need
 Fitness for Purpose
 Conformance to specification
3

4. Quality - Review
 Product Quality
 Ensure Quality by Final Inspection
 Example: Checking for unlevel and stains in finished cones
in finishing floor – packing zones.
 Process Quality
 Ensure quality by process control
 Example: Maintaining right temperature and pressure in
moulds for getting good cured product.
4

5. Customer Role In Business
Types of Customer
 External
 External Individuals or organizations, who uses your
product or service
 Internal
 Departments within the organization with input-output
relationship
 Regulatory
 Any government agency that has standards the
process or product conform to
5

6. Customer Role In Business
VOC to CTQ
6
VOC
(Voice of Customer)
Key Issue
(Packing Errors)
CTQ,s
(Critical to Quality)
Shortage of Zips
Wrong quantity
Number of Justified
packing related
customer complaints
Length mix up
Shade mix up
Wrong zip type

7. Lean Six Sigma Overview
 History of Lean
 Lean Started with Toyota
 Jim Womack and jones promoted the idea of Lean
Manufacturing.
 History of Six Sigma
 Developed by Motorola
 Popularized by General Electric
7

8. Lean Six Sigma Overview
 Benefits of Lean Six Sigma
 Improve Bottom Line by elimination waste and reducing
defects
 Align project team member with overall corporate goals
 Systematic approach to problem solving, improvement and
sustainment
 Emphasis on measurement and results
8

9. What is Lean Six Sigma?
 What is Lean?
 Goal: Eliminate waste ad increase process speed
 Method
 Genchi Genbutsu – Go and see the workplace (gemba)
 Kaizen (Change for better) workshops
9

10. What is Lean Six Sigma?
 What is Six Sigma?
 Goal – Reduce Variation to improve performance on
CTQs
 Method – DMAIC approach, DFSS
(DMAIC : DEFINE , MEASURE, ANALYSE, IMPROVE,
CONTROL)
10

11. 11

12. What is Lean Six Sigma?
12
Traditional Strategy Lean Six Sigma Strategy
Improved
product
quality
Longer
Delivery
Times
Higher
Product
Costs
Lower Product
Costs
Lean Six Sigma
Improved
Product
Quality
Shorter
Delivery
times
Lean Six Sigma

13. What is Lean Six Sigma?
Six Sigma Strategy Lean Strategy
Culture + Quality + Customer Speed + Low Cost + Flexibility
Structured frame work Visual Management
Dedicated infrastructure
Common Sense approach
Statistical Techniques
13

14. What is Lean Six Sigma?
 Benefits of Lean Six Sigma Combination
 Customer Loyalty and retention
 Shorter Customer Lead Time
 Downward price pressure: lower costs
 Lower invested capital
 Capacity expansion
 Unified focus
14

15. Lean Basic – Principles
1. Specify
Value
2. Map the
Value Stream
3. Establish
Flow
4. Implement
Pull
5. Work to
Perfection
15

16. LEAN
“A systematic approach to identifying and eliminating
waste (non-value added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.”
16

17. Lean - Goals
 Zero defects
 100% value-add
 Lot size of one
 Pull of the customer
17

18. Why Become Lean?
 PQCDSM
 Improve Customer
Satisfaction
 Increase Sales and
Profits
18
 Insure Long-term Health of Company
 Survival
 Create Sustainable Competitive Advantage

19. Key Principles of Lean Thinking
 VALUE - what customers are willing to pay for
 VALUE STREAM - the steps that deliver value
 FLOW - organizing the Value Stream to be continuous
 PULL - responding to downstream customer demand
 PERFECTION - relentless continuous improvement
(culture)
--- Lean Thinking, Womack and Jones, 1996
19

20. Lean Basic – Principles
Principle 1 – Specific Value
 Any Process that the customer would be willing to
pay for, considering it adds value to the product.
 Specific value from the standpoint of the end
customer
20

21. Lean Basic – Principles
Principle 2 - Value Steam Mapping
 Visualize the whole process
 It shows both material and
information flow
 It include all the steps
needed to take a product
from supplier to customer
 Helps to envision future
state
21

22. Lean Basic – Principles
 Principle 3 – Establish Flow
 The continuous movement of material as it is
transformed from raw material to a finished product.
 Require that every step in the process be:
 Capable – right every time
 Available – always able to run
 Adequate – with capacity to avoid bottlenecks and
overcapitalization (right-sized tools)
22

23. Lean Basic – Principles
 Principle 3 – Establish Flow
23
BAD FLOW
GOOD FLOW

24. 24

25. Lean Basic – Principles
 Principle 4 – Implement Pull
25
PUSH PULL
Based on forecasting Based on customer demand
No signal when to start or when
to stop
Kanban Card Used as Signal to
Start or Stop
High Customization
High Waste Low Waste
Suitable only for high volume
environment
Suitable for any Environment

26. 26

27. Lean Basic – Principles
 Principle 5 – Work to Perfection
 Process Stability, Inbuilt Quality, Meeting customer
Pull and Continual improvement are the building
blocks of perfection.
 Total employee involvement and management
commitment are indispensable.
 Producing Exactly What the customer wants, exactly
when and economically.
27

28. 28
Typical Results from Lean Conversions
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
Percentage of Benefits Achieved
0 25 50 75 100
Flexibility Skill Enhancement Visual Management

29. Value Added/Non-value Added
29
 Value-added:
 ANY ACTIVITY THAT PHYSICALLY CHANGES THE MATERIAL BEING WORKED
ON (not rework/repair!)
 Machining Knitting
 Drilling Spreading/Cutting
 Assembly Dying
 Painting Sewing
 Non-value added:
 ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACE BUT DOES NOT
PHYSICALLY CHANGE THE MATERIAL
 Sorting Stacking
 Counting Checking

30. Lean Basic – Type of Waste
 Learn to see Waste
 Waste is anything that adds cost or time without
adding VALUE.
 Waste is often hidden in the process or in the work
area
 The first goal is to “see” the waste… then eliminate
it.
30

31. Lean Basic – Type of Waste
 Learn to see “ Waste”
 Three Japanese Waste
 MUDA – Seven non value adding activities (waste)
 MURA - Unevenness
 MURI – Over burden / irrational expectation
31

32. Lean Basic – Type of Waste
 Transportation
 Definition: Irrational movement of material and
information.
 Effects:
 Poor Ergonomics
 Safety hazards
 Increased Lead time
32

33. Lean Basic – Type of Waste
 Inventory
 Definition:
 A company’s merchandise, raw materials, and finished and
unfinished products which have not yet been sold but
stored in different stages.
 Effects:
 Huge Investments Lock
33

34. Lean Basic – Type of Waste
 Motion:
 Definition:
 Any unnecessary motion of people
 Effects:
 Poor Ergonomics
 Very Low Productivity
34

35. Lean Basic – Type of Waste
 Waiting Time
 Definition:
 Man, Material and Machine waiting for information and
inputs.
 Effects:
 Process Delays
 Lot Delays
35

36. Lean Basic – Type of Waste
 Over Processing
 Definition:
 Providing or creating MORE than the customer specification
requirement
 Effects:
 Erosion of Profitability
 Increase in Inventory
36

37. Lean Basic – Type of Waste
 Defects:
 Definition:
 Producing bad Quality – parts, services or information
 Effects:
 Increase in production cost
 Results in rework
 Results in shortage
37

38. Lean Six Sigma Tool Box – 1
 Concept of Brainstorming
 Do’s
 Good ambience during brainstorming
 Give everybody the opportunity to speak
 Note keeper to record all the ideas
 Brain warming for 3 minutes
 Don’ts
 Criticism of ideas as they are expressed
 Getting into action with only one idea
 Get into details
38

39. Lean Six Sigma Tool Box – 1
 Cause & Effect Diagram
 It is qualitative technique used to identify potential
causes influencing a problem, outcome or effect.
 At least one subject matter expert needed in the
team.
 Done with the help of brainstorming/brain writing
 Idea are immediately sorted into 7 M groups
 Validate each potential cause to find significant
potential cause
 For each significant potential cause conduct WHY –
WHY analysis.
39

40. Lean Six Sigma Tool Box – 1
 Cause & Effect Diagram - Example
40

41. Lean Six Sigma Tool Box – 1
 Pareto Chart
 Is a shorted bar graph
 Used to differentiates vital few from trivial many
 Is also known as 80-20 rule
41

42. Lean Six Sigma Tool Box – 1
42
 Pareto Example

43. Time Chart
 푡푎푘푡 푡푖푚푒 = Time (Available seconds per working day)
Volume (Daily production requirement)
 Cycle time = Actual time required for a worker to
complete one cycle of this process
43
Set pace of production to match pace of sales.

44. Time Chart
44

45.  Line Balancing / Work Load Balance
Workload Balance is the distribution of total work cycle time, and the
pacing of that work content to the customer demand rate. This
process helps eliminate bottlenecks, unevenness in Flow (mura), and
overburdening of people and machines (muri). Workload Balance is
done through Cycle Time Bar Charts to identify imbalances in
equipment, workers, and process times. The chart on the left is
without Workload Balance and the chart on the right is with Workload
Balance.
45

46. Time Chart
46
 Line Balancing / Work Load Balance
Process Before
Line Balancing
Process After
Line Balancing

47.  You can see from the picture in previous slide that your goal
is to engineer staffing levels to utilize people at their fullest
capacity as close to Takt Time as you can.
 Here’s how it works: you plot the manual cycle times for
each operator (staff) on a bar chart against the upper limit
of the Takt Time. In principle, you have cycle times at or
below the Takt Time to assure you have the capacity to
service the demand rate of the customer.
47

48.  Ideal Manning Calculation
Every process requiring humans has to be staffed with people
who are capable of doing their respective jobs. But you never
want to understaff or overstaff, so it pays to use a formula to
determine your ideal manning levels. You determine your Ideal
Manning Levels by dividing the sum of your manual cycle times
(time required to perform a job) by your Takt Time (rate of
customer demand).
Ideal Manning = Ʃ 푀푎푛푢푎푙 퐶푦푐푙푒 푇푖푚푒
푇푎푘푡 푇푖푚푒
48

49. Summing cycle times provides the total work content time,
while Takt Time (customer demand rate) gives you the
number of people required to produce to that demand
rate. This is your Ideal Manning Level. The implication is
that you can’t achieve or sustain your Ideal Manning
Level without also addressing all causes of mura, or
unevenness in Flow. A process must be approaching near
zero downtime, zero rework, and zero defects to sustain
ideal manning.
49

50. Kaizen Overview
What is Kaizen?
 Kaizen is about continual improvement of people,
processes, procedures, and any other factors that
affect quality, cost and delivery.
 Kaizen Involves setting standards and then continually
improving those standards.
 Employee empowerment through suggestion schemes
is must for Kaizens.
 Look for systematic solutions.
50

51. Kaizen Overview
 Kaizen workshop
 Select team and define problem.
 Collect data and do time study.
 Brainstorm ideas to remove all waste.
 Come out with 1-2 solutions and make changes.
 Develop new SOPs (Standard Operating Procedures)
and present to project owner
51

52. Kaizen Overview
 Kaizen Newspaper
 It is a great visual management tool for any company,
and an essential part of kaizen activities or Lean
management on a daily basis.
 The kaizen newspaper is basically a list of improvement
actions that contains the following information as shown in
next slide : 7W (type of waste, to include energy,
space, safety and, environmental losses also), Problem &
Root cause Solution, Who, When, Status (stage of
completion in PDCA cycle)
52

53. 53

54.  Kaizen Newspaper
 A full kaizen newspaper is a good thing. The fact
that this is a concern might say something about the
quality of the action items rather than the quantity.
54

55. Kaizen Example
 Company A, optical instrument manufacturer, were doing
contract manufacturing. Since the main lines of its client
have been shifted to overseas, production for domestic
market declined more than half. Aiming to recover its
contract manufacturing business, Company A used
Hirayama Consulting Services.
55

56. Kaizen Example
56

57. Kaizen Example
 Issues
 Frequent production stops has affected the production
volume and equipment operational availability
 “achieve the planned production is not needed” mood
spreading
 Low Productivity awareness among technical personnel
 issues
57

58.  Analysis
 Assembly process workload reduction is not possible
with current line lay-out
 Assembly workers motion Workbenches and material
placement are cause of waste on Assembly workers
Motion.
 Parts Supply Equipment is not efficiently designed
58

59.  Implementation
 Planning and setting of semi-annual improvement
targets
 Monthly analysis on current situation: issues, kaizen
proposals, results.
 Daily Improvement tasks by Supervision Personnel
 Lay-out design review
 Workbench, parts, jig and tool placement review.
Reduction of worker motion, process review.
59

60.  Results
 Semi-annual targets achievement
 Practice of PDCA Cycle properly implemented and
 Formation of personnel with Waste finding and
elimination
 High Capacity to adapt to new models orders
60

61. Lean Six Sigma Tool Box 2
5 S
 5S is a Japanese concept of Workplace
Improvement
61
# Step Japanese Word 5S’s Word English
Translation
01 Seiri Sort Segregate
02 Seiton Set in Order Orderliness
03 Seiso Shine Cleanliness
04 Seiketshu Standardize Scheduling
05 Shitsuke Sustain Discpline

62. Lean Six Sigma Tool Box 2
5S
 Seri – Sort
 Zoning is a prerequisite for sorting
 Removes from the work place any item that is not needed
 Add any thing that is needed but not there
62

63. Lean Six Sigma Tool Box 2
 5S
 Seiton – Set in Order
 Place for everything and everything in its place.
 Arrange items so that they are easy to use.
 Mark and label these item so they are easy to find and
put away.
 Maximize the concept of Visual Management
63

64. Lean Six Sigma Tool Box 2
 5s
 Seiso – Sweep
 Set frequency of cleaning
 Define the methodology
 5 minute paint workshops
 Make sure every thing in the plant and offices, remain
clean.
64

65. Lean Six Sigma Tool Box 2
 5S
 Seiketsu – Standardize
 Create Unambiguous Standard Operating Procedure
(Learning Curve)
 Start Kaizen
 Assign Job Responsibility
 Create a 5S Audit System
65

66. Lean Six Sigma Tool Box 2
 5S
 Shitsuke - Self discipline
 Practice and repeat these procedures until they become a way
of life throughout the entire business
 Create a work environment for 5S
 Emphasize Team work
66

67. Lean Six Sigma Tool Box 2
 5S Failure Effects
 Unneeded items begin pilling up as soon as sorting is
completed.
 Tools and Jigs do not get returned to their designated
place after use.
 Dirty equipments
 Items are left protruding into walkways
 Dirty Machines start to malfunction and produce
defective goods
67

68. Lean Six Sigma Tool Box 2
 Visual Management
 Visual management displays are a hallmark of lean
enterprises. Whether it is scoreboards, production
control charts, team communication boards, or other
types, visual management displays keeps vital
information flowing between lean management and
employees, as well as between individuals, cells and
departments. They open communication and
information sharing within the lean enterprise.
68

69. Lean Six Sigma Tool Box 2
 Visual Management
 Visual management is the process of displaying critical
information “so that anyone entering a work place, even
those who are unfamiliar with the detail of the
processes, can very rapidly see what is going on,
understand it and see what is under control and what
isn’t. Essentially, the current status of the operation can
be assessed, at a glance.”
69

70. Lean Six Sigma Tool Box 2
 How does visual management improve efficiency?
 In any process, information is critical – it allows people to
know where they are, where they are going and if problems are
occurring that could be prevented. No one would consider
driving a car without a dashboard, and few would operate a
machine that wasn’t equipped with the appropriate indicator
lights, panel meters and LCD touchscreens. However, like a
car’s dashboard, panel meters and touchscreens are only for a
single operator. While both are forms of visual management,
they lack some of the phenomenon that occurs by having the
information publicly available.
70

71. Lean Six Sigma Tool Box 2
 By having key performance indicators on display, the
operators know what their performance is, but more
importantly, they know that everyone else knows what their
performance is. This allows the operator(s) to take pride of
ownership in their contribution to the company. It also
provides actionable information to supervisors, allowing them
to determine, in real time, areas that are in need of
improvement. And on messages that communicate process
problems across a facility ensure that everyone is aware of a
given issue, drastically reducing downtime.
71

72. Lean Six Sigma Tool Box 2
 Common KPIs and how to determine which indicators to
track
 The key performance indicators that a specific company
should use will of course vary. The following is a list of
common KPIs used on the plant floor:
 Count (Good or Bad): One of the most important metrics is how
much product has been produced thus far. The count can refer to the
amount of product produced since the last machine changeover or
for the entire shift or week. To invoke a competitive spirit in their
employees, many companies will compare each of the co-worker’s or
shift’s output against the others.
 Reject Ratio : Everyone’s process will occasionally produce scrap.
Knowing whether or not the amount of scrap product being
produced is within tolerable limits is critical to maintaining
profitability.
72

73. Lean Six Sigma Tool Box 2
 Rate: If your machine or process produces goods at a variable rate,
it’s important to know if the operators are maintaining an ideal
speed. Too slow, and profit drops; too fast, and quality issues may
arise.
 Targets : Properly motivated employees know exactly what’s
expected of them – plant floor personnel are no exception.
Therefore, many companies opt to display target values for output,
rate and quality.
 Takt Time : Takt time is the amount of time, or cycle time, for the
completion of a task. This could be the time it takes to produce a
product, but more likely it’s the cycle time of a specific operation on
the product. By displaying takt time, manufacturers can quickly
determine where the constraints or bottlenecks are within a process.
73

74. Lean Six Sigma Tool Box 2
 OEE – Overall Equipment Effectiveness : OEE is a metric that
indicates the utilization of resources. Production managers are
interested in seeing the value of this metric increase, as it indicates
more efficient utilization of the available personnel, machinery, etc.
The formula for OEE is
OEE = Availability x Performance x Quality
 Downtime : Whether it’s due to a breakdown, or simply a machine
changeover, downtime is one of the most important metrics that can
be displayed. When the machines are down, money isn’t being made
– reducing these periods is an easy way to increase profitability.
Many companies that track downtime require their operators to
enter a “reason code”, via keypad, pushbutton, or even a bar code
scanner, so that the information can be reviewed at a later time.
74

75. Lean Six Sigma Tool Box 2
 Kanban
 Kanban is a Japanese word it means CARD SIGNAL
 Kanban is developed by Toyota corporation for material
planning.
 Kanban (literally signboard or billboard in Japanese) is a
scheduling system for lean and just-in-time (JIT) production.
 Kanban is a system to control the logistical chain from a
production point of view, and is not an inventory control
system.
 Kanban was developed by Taiichi Ohno, at Toyota, as a system
to improve and maintain a high level of production.
 Kanban is one method through which JIT is achieved.
75

76. Lean Six Sigma Tool Box 2
 Kanban Principle
76

77. Lean Six Sigma Tool Box 2
 Kanban
 Kanban is not an inventory control system. Rather, it is a
scheduling system that tells
 What to produce
 When to produce, and
 How much to produce
77

78. Lean Six Sigma Tool Box 2
 Kanban Supply Chain
78

79. Lean Six Sigma Tool Box 2
 Kanban
 Types of Kanban Cards
 Production Kanban
 Withdrawal Kanban
 Supplier Kanban
79

80. Lean Six Sigma Tool Box 2
 Kanban
 Withdrawal (Conveyance) Kanban
The main function of a withdrawal Kanban is to pass the authorization for the movement of
parts from one stage to another.
Once it gets the parts from the preceding process and moves them to the next process,
remaining with the parts until the last part has been consumed by the next process.
The withdrawal Kanban then travels back to the preceding process to get parts thus creating the
cycle.
A withdrawal Kanban usually carries the following information:
o part number
o part name o location of the next process
o lot size o location of the preceding process
o routing process o container type
o name of the next process o container capacity
o name of the preceding process o number of containers released
The withdrawal Kanban layout can be designed many ways in order to display this information.
80

81. Lean Six Sigma Tool Box 2
 Kanban
 Production Kanban
The primary function of the production Kanban is to release an order to
the preceding stage to build the lot size indicated on the card.
The production Kanban card should have the following information :
o materials required as inputs at the preceding stage
o parts required as inputs at the preceding stage
o information stated on withdrawals Kanban
The first two pieces of information are not required on the withdrawal
Kanban as it’s only used for communicating the authorization of
movement of parts between work stations.
81

82. Lean Six Sigma Tool Box 2
 Kanban
 Supplier Kanban
 A supplier Kanban process is usually described as a
connection between external vendors and the Kanban System.
But also different locations of the same company can be
linked together into a supply-chain process via Kanban, based
on the same principle (sometimes it is called “Inter-Company
Kanban”).
82

83. Lean Six Sigma Tool Box 2
Kanban
 Other types of Kanbans
 We also found three other types of Kanbans that exist for special circumstances
only.
 They are discussed briefly as follows:
 1. Express Kanban - used when shortages of parts occur
 2. Emergency Kanban - used to replace defective parts and other uncertainties
such as machine failures or changes in production volumes
 3. Through Kanban - used when adjacent work centers are located close to each
other. It combines production and withdrawal Kanbans for both stages onto
one, through, Kanban
83

84. Lean Six Sigma Tool Box 2
 Standard Work
 Why Standard work is the foundation pillar for the lean?
 It ensure predictable results from the process.
 It create baseline for kaizen.
 It reduce cost
 It reduce process time
 It improve flexibility
84

85. Lean Six Sigma Tool Box 2
 Standard Work
 It is precise method of describing tasks to perform it
effectively, right first time, every time and time bound.
 Standard work applies at all levels of an operation.
 Three Components of Standard Work
 Takt Time
 Standard Sequence
 Standard work in Process
85

86. Lean Six Sigma Tool Box 2
Operational Definition (OD)
Clear & Concise definition of a measure
Benefits of OD
 Reduce measurement variation
 Helps to develop effective job instruction.
86

87. Lean Six Sigma Tool Box 2
 Operational Definition (OD)
 Steps to develop OD
1. List out the VOC
2. Convert the VOC into CTQ
3. Select the measuring instrument for CTQ.
4. Describe the method of measurement with necessary visual
aids (Pictures).
5. State the decision criteria.
87

88. Lean Six Sigma Tool Box 2
 Control Chart
88

89. Six Sigma Basics
 The term "Sigma" is often used as a scale for levels
of "goodness" or quality. Using this scale, "Six
Sigma" equates to 3.4 defects per one million
opportunities (DPMO). Therefore, Six Sigma
started as a defect reduction effort in
manufacturing and was then applied to other
business processes for the same purpose.
89

90. DMAIC Overview
90

91. Six Sigma as a management system
 When practiced as a management system, Six Sigma is a high performance
system for executing business strategy.
 Six Sigma is a top-down solution to help organizations:
 Align their business strategy to critical improvement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
 Govern efforts to ensure improvements are sustained
 The Six Sigma Management System drives clarity around the business strategy
and the metrics that most reflect success with that strategy.
 It provides the framework to prioritize resources for projects that will improve
the metrics, and it leverages leaders who will manage the efforts for rapid,
sustainable, and improved business results.
91

92. Six Sigma as a management system
92
VOICE OF...
• Market
• Customer
• Employee
• Business
STRATEGY
DFSS
(DMADV)
Fundamental Redesign
PROCESSES
TOOLS
SKILLS
TRAINING
LEAN SIGMA
(DMAIC +)
Integrated Improvement
RESULTS:
Top-Level
Indicators
(Dashboards)
Y1
y1
VOICE OF...
• Market
• Customer
• Employee
• Business
FEEDBACK
BUSINESS
OBJECTIVES
PROCESS
MAPS CORE & ENABLING PROCESSES
SYSTEMS
STRATEGY
If new product
or process
EXECUTION (PROCESS MANAGEMENT)
WORKOUT
SIX SIGMA
LEAN SIGMA
Big Y’s
Sub Y’s
PROCESS
D
R
I
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Flexible Problem Solving Models
PROCESS IMPROVEMENT
Projects
PROCESS
CONTROL
ALIGNMENT
SIX SIGMA
(DMAIC)
Incremental Improvement
GE WORKOUT
Quick Wins
Accelerated Improvement
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS

93. Six Sigma as a Methodology
 Six Sigma is a business improvement methodology that focuses
an organization on:
 Understanding and managing customer requirements
 Aligning key business processes to achieve those requirements
 Utilizing rigorous data analysis to minimize variation in those processes
 Driving rapid and sustainable improvement to business processes
 At the heart of the methodology is the DMAIC model for process improvement. DMAIC is
commonly used by Six Sigma project teams and is an acronym for:
 Define opportunity
 Measure performance
 Analyze opportunity
 Improve performance
 Control performance
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94. Six Sigma as a Methodology
Voice of the Customer
Measure Analyze Improve
Define Control
Institutionalization
The DMAICModel

95. Six Sigma Basics
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 Six Sigma as a metric

96. Six Sigma Basics
 Understanding Variation
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97. Six Sigma Basics
 Understanding Variation
 Measurement of Location
 Mean (μ)
 Measurement of spread
 Standard deviation (σ)
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98. Six Sigma Basics
 Understanding Variation
 Accuracy – how close is your average performance from
the target?
 Precision – how much is the dispersion around the
average?
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99. Six Sigma Basics
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100. Six Sigma Basics
 Sigma refers to standard
deviation, measure of
variation.
 Six sigma refers to a
process having six
standard deviations
between the process
mean and the nearest
specification limit
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101. Six Sigma Basics
 What is 99% quality
 20,000 lost articles of mail per hour
 5,000 incorrect surgical operations per week
 2 shorts or long landings at major airports each day
 200,000 incorrect filled prescriptions every year
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102. Six Sigma Basics
 Most products and services have multiple customer
requirements and there for there can be several
chances or opportunities for a defect to appear.
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103. Six Sigma Basics
퐷푃푂 =
푛표. 표푓 푑푒푓푒푐푡푠
푛표. 표푓 푢푛푖푡푠 x (푛표. 표푓 표푝푝표푟푡푢푛푖푡푖푒푠)
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104. Six Sigma Basics
퐷푃푀푂 = 퐷푃푂 x 106
퐷푃푀푂 =
푛표 표푓 푑푒푓푒푐푡푠 x 106
(푛표 표푓 푢푛푖푡푠) x (푛표 표푓 표푝푝표푟푡푢푛푖푡푖푒푠)
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105. Six Sigma Basics
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106. Abhay Yadav
Yadavabhay@gmail.com
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