Introduction to Six Sigma

1. Introduction to Six Sigma

2. Learning Objectives • The Need for Six Sigma • Six Sigma - Vision, Philosophy and Statistical Method • Breakthrough Strategy and Focus of Six Sigma • Six Sigma System - Black Belts, Green Belts and Management

3. Why Implement Six Sigma Now? • “Nothing New” • Most of the Six Sigma tools have been around for decades • Neglected due to difficulty and discipline BUT • Worldwide competition • Makes neglect dangerous • Computing resources • Makes application possible

4. 99% Good is Not Good Enough • 5,000 incorrect surgical procedures each week • 20,000 lost articles of mail each hour • No electricity for almost 7 hours each month • Unsafe drinking water for almost 15 minutes each day

5. PPM 1,000,000 100,000 10,000 1,000 100 10 1 1 2 3 4 5 6 Where Does Industry Stand? IRS - Tax Advice (phone-in) (140,000 PPM) Restaurant Bills Doctor Prescription Writing Payroll Processing • • Order Write-up Journal Vouchers Wire Transfers Airline Baggage Handling Purchased Material Lot Reject Rate Best-in-Class Average Domestic Airline Flight Company Fatality Rate (0.43 PPM) 7 Sigma Scale of Measure

6. Six Sigma View of Quality • 100% Inspection Inefficient • Management involvement is KEY • Focus on the Process • Continuous Improvement is a Philosophy of Doing Business • Reduction of Variation

7. Six Sigma Focus Delighting the Customer through Flawless Execution Rapid Breakthrough Improvement Advanced Breakthrough Tools that Work Positive and Deep Culture Change Real Financial Results Passion + Execution = Fast and Lasting Results

8. Six Sigma is a Vision The Vision of Six Sigma is to delight customers by delivering world-class quality products through the achievement of Six Sigma levels of performance in everything we do.  6

9. Six Sigma is a Philosophy The Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.  Philosophy 6

10. Six Sigma is a Statistical Method • Know what’s important to the Customer (CTQ’s) • Reduce defects • Center around target • Reduce Variation

11. Breakthrough Strategy Six Sigma – Six Sigma Enables Breakthrough Level Improvement! Six Sigma Breakthrough Strategy • Trained & Dedicated • individuals • Analytical Expertise • > 70% Improvement • per project • Standard Approaches • Current Tools • Kaizen • Lean Manufacturing • Re-engineering • Typical TQM Improvement 1 2 3 Timein Years 4 The problem with continuous improvements as the only goal Organization sees improvement BUT loses the game.

12.  PPM Process Capability Defects per Million Opp. Six Sigma - Aggressive Goal Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

13. 3s This is a 6 Sigma Process What does a 6 sigma process look like ? m Average Deviation from Mean 1s p(d) 1 2 3 4 5 6 s T USL

14. Six Sigma - Practical Meaning 99% Good (3.8 Sigma) 99.99966% Good (6 Sigma) 20,000 lost articles of mail per hour Unsafe drinking water for almost 15 minutes each day 5,000 incorrect surgical operations per week Two short or long landings at most major airports each day 200,000 wrong drug prescriptions each year No electricity for almost seven hours each month Seven articles lost per hour One unsafe minute every seven months 1.7 incorrect operations per week One short or long landing every five years 68 wrong prescriptions per year One hour without electricity every 34 years

15. KPIV f (X) Y= KPOV • Y • Dependent • Output • Effect • Symptom • Monitor Focus of Six Sigma To get results, should we focus our behavior on the Y or X? • X1 . . . XN • Independent • Input-Process • Cause • Problem • Control If we are so good at X, why do we constantly test and inspect Y? * Focus on X rather than Y, as done historically

16. Strategy of Six Sigma • Identifying critical aspects of the business with problems or opportunities for improvement • Targeting those critical areas and designating improvement efforts as Six Sigma Black Beltprojects • Selecting Black Belts from among the best people to work on the projects--full time • Ensuring these people have the time, tools, and resources they need to succeed • Includes 4 months of extensive Six Sigma training (4 weeks classroom, 12 weeks execution)

17. Six Sigma System - Black Belts Black Belts lead improvement efforts on projects chosen by their Champions • Dedicated resource of highly skilled, trained and focused individuals • Rigorous selection criteria... among the best people on their site • A Black Belt performs 4 to 6 projects per year with a minimum of 2 years assignment commitment • Results in up to $1M savings/year/Black Belt • The BB ensures that the specific process (sequence) is followed for each project --- Measure, Analyze, Improve, and Control • Focus is on fixing the causes using these tools - Y=F(X) • Utilizes problem solving tools provided through Training and MiniTab statistical software (DOE, FMEA, etc.) • Some Black Belts are selected to perform Green Belt training

18. Six Sigma System - Green Belts Green Beltsare the professional, salaried employees, including managers, who are not Champions or Black Belts. They have key roles in deploying Six Sigma. • Assist Black Belts in completing sections of their projects • Receive detailed training over the next three years to improve their data collection, analysis and problem solving capability • Will apply their learning in their daily performance of their jobs • Will broadly use many of the Six Sigma methods and tools, including FMEA, DOE, SPC, etc • Will be ready-trained as the first round of Black Belts complete their two-year assignments

19. Six Sigma System - Management Managementis responsible to help drive the total employee population to a higher level of problem solving proficiency • Identifies their best candidates for Black Belt appointment • Demonstrates high enthusiasm to keep Six Sigma moving forward • Provides the lead at getting Green Belts (including themselves) identified and through training • Asks the right questions to all employees to assure the discipline of Six Sigma and its tool kit are properly and fully exploited • Drives the broad use of Six Sigma methods and tools, including FMEA, DOE, SPC, etc • Owns day-to-day & career management of the Black Belt, including appropriate placement when Black Belt reintegrates

20. End of TopicAny question?