2. INTRODUCTION
Six Sigma is a set of techniques and tools for
process improvement. It was introduced by engineer
Bill Smith while working at Motorola in 1986.
Jack Welch made it central to his business strategy
at General Electric in 1995.
Six Sigma seeks to improve the quality of the
output of a process by identifying and removing the
causes of defects and minimizing variability in
manufacturing and business processes.
3. It uses a set of quality management methods, mainly
empirical, statistical methods, and
creates a special infrastructure of people within the
organization, who are experts in these methods.
A six sigma process is one in which 99.99966% of all
opportunities to produce some feature of a part are
statistically expected to be free of defects (3.4 defective
features per million opportunities).
INTRODUCTION (Continue)
4. DOCTRINE
Six Sigma doctrine asserts:
Continuous efforts to achieve stable and predictable
process results (e.g. by reducing process variation) are
of vital importance to business success.
Manufacturing and business processes have
characteristics that can be defined, measured,
analyzed, improved, and controlled.
Achieving sustained quality improvement requires
commitment from the entire organization, particularly
from top-level management.
5. Features that set Six Sigma apart from previous
quality-improvement initiatives include:
A clear focus on achieving measurable and
quantifiable financial returns from any Six Sigma
project.
An increased emphasis on strong and passionate
management leadership and support.
A clear commitment to making decisions on the basis
of verifiable data and statistical methods, rather than
assumptions and guesswork.
DOCTRINE (Continue..)
6. Difference Between Related Concepts
Lean management and Six Sigma are two concepts
Share similar methodologies and tools.
Both programs are of Japanese origin.
but they are two different programs.
Lean management is focused on eliminating waste
and ensuring swift while
Six Sigma's focus is on eliminating defects and
reducing variability.
7. Methodologies
Six Sigma projects follow two project methodologies
inspired by Deming's Plan-Do-Check-Act Cycle. These
methodologies, composed of five phases each, bear the
acronyms DMAIC and DMADV.
DMAIC is used for projects aimed at improving an
existing business process.
DMADV is used for projects aimed at creating new
product or process designs.
9. DMAIC
The DMAIC project methodology has five phases:
Define the system, the voice of the customer and their
requirements, and the project goals, specifically.
Measure key aspects of the current process and collect
relevant data; calculate the 'as-is' Process Capability.
Analyze the data to investigate and verify cause-and-effect
relationships. Determine what the relationships are, and
attempt to ensure that all factors have been considered
10. Improve or optimize the current process based upon data
analysis using techniques such as design of experiments ,
poka yoke or mistake proofing, and standard work to create a
new, future state process. Set up pilot runs to establish process
capability.
Control the future state process to ensure that any deviations
from the target are corrected before they result in defects.
Implement control systems such as statistical process control,
production boards, visual workplaces, and continuously
monitor the process.
12. DMADV
The DMADV project methodology, known as DFSS
("Design For Six Sigma"), features five phases:
Define design goals that are consistent with customer
demands and the enterprise strategy.
Measure and identify CTQs (characteristics that are
Critical To Quality), measure product capabilities,
production process capability, and measure risks.
13. Analyze to develop and design alternatives
Design an improved alternative, best suited per analysis
in the previous step
Verify the design, set up pilot runs, implement the
production process and hand it over to the process
owner(s).
14. Implementation roles
Executive Leadership
The CEO
Members of top management.
They are responsible for setting up a vision for Six Sigma
implementation. by transcending departmental barriers
and overcoming inherent resistance to change.
Champions take responsibility for Six Sigma
implementation across the organization in an integrated
manner.
The Executive Leadership draws them from upper
management.
Champions also act as mentors to Black Belts.
15. Champions and Master Black Belts focus on
identifying projects/functions for Six Sigma.
Master Black Belts, identified by Champions, act as
in-house coaches on Six Sigma.
They assist Champions and guide Black Belts and
Green Belts.
Apart from statistical tasks, ensuring consistent
application of Six Sigma across various functions and
departments.
16. Black Belts operate under Master Black Belts to
apply Six Sigma methodology to specific projects.
Green Belts are the employees who take up Six
Sigma implementation along with their other job
responsibilities, operating under the guidance of
Black Belts.
17. Application
Six Sigma mostly finds application in large organizations.
Consumer-driven Six Sigma saves Ford $300 million.
Ford began its Six Sigma odyssey in late 1999 when the
director of quality for Ford's global truck business was
looking for new ways to improve quality.
They did research, visited Six Sigma Academy, and
benchmarked with GE and other large companies that
were using Six Sigma.
Phong Vu, who's now Ford's Six Sigma czar, officially
known as director of corporate deployment for Consumer
Driven 6-Sigma.
18. Ford formally launched its Six Sigma process, which it
calls Consumer Driven 6-Sigma, in January of 2000.
They started with the top management group, and then
moved on to the officer group and the leadership group,
which comprises their top 350 people.
19. The Ford DMAIC cycle follows:
Define. During this first stage, Black Belts work to
identify the customers involved and what matters to them.
Measure. The second stage requires Black Belts to
develop process measures, called "Y's," which enable
them to evaluate the performance of the process.
Identify the input variables that cause variation in process
performance.
20. Analyze. The third stage forces Black Belts to prioritize
the input variables that cause variation in process
performance, analyze data to determine the root causes of
problems and opportunities for improvement, and validate
process input variables with data.
Common tools at this stage include process mapping,
graphical techniques, multivariate studies, hypothesis
testing, and correlation and regression analysis.
Improve. At this point, Black Belts generate solutions to
the problem and select the one that best addresses the root
cause.
21. Common tools at this stage include process mapping,
design of experiments, simulation and optimization.
Control. The final stage institutionalizes the improvement
and implements the ongoing control. The goal is to sustain
the gains that have been made.
Common tools at this stage include control plans, statistical
process control, gage control plans, preventive maintenance
and poka yoke (a Japanese concept, translated as "mistake
proofing").
22. No Six Sigma project at Ford is considered finished
until the entire DMAIC cycle is complete and Ford can
audit the results to see the effect on customers and the
bottom line.
In 2000, Consumer Driven 6-Sigma contributed $52
million to the bottom line. Ford estimates a $300
million contribution from closed projects and a two-
point increase in customer satisfaction in 2001.
