Introductory Six Sigma Methods for Management (White Belt Training)

1. Introductory Six Sigma Methods for Management (White Belt Training) Andrea Archer – Six Sigma Black Belt Presented to Leadership Council South Mountain Community College September 12, 2012

2. 6σ What is Six Sigma? • A strategic approach to implementing quality, process, and business improvement through the use of statistical and other analytic tools applied to problems that have meaningful impact on key business results. • Sigma (σ) is a Greek letter used to represent the statistical term ‘standard deviation’ which measures deviations from the mean (variability) • Six Sigma focus was initially in manufacturing focused on eliminating defects and reducing cost and has since branched out into commercial applications such as banking, finance and service industries (transactional business) • Voice of the customer (VOC) is key when improving processes to better meet needs From Montgomery, D. C. (2005), Introduction to Statistical Quality Control 5thedition, Wiley, New York Six Sigma Standard = 3.4 defects per million opportunities (DPMO)

3. Origins of Six Sigma Six Sigma is the latest approach in the ongoing development of business improvementstrategies: Closely related to the PDCA cycle Advice from the “gurus” of quality (Shewhart, Deming, Juran) • Use of analytical tools has grown steadily for over 80 years • Statistical quality control (origins in 1920s, explosive growth during WW II, 1950s) • Operations research (“the science of better”, 1940s) • Value engineering, zero defects (1950s) • FDA and EPA (1970’s) • Total Quality Management (TQM) movement, 1980’s • Reengineering of business processes (late 1980’s) • Six Sigma (origins at Motorola in 1987, expanded impact during 1990s to present) Many quality control methods have come and gone, but Six Sigma has endured and is one of the most popular currently in use.

4. Six Sigma Today http://www.icc.edu/facultyStaff/sixSigma_projects.asp The working definition of the term “Six Sigma” now differs from company to company, but the goal remains the same: to use data and statistical methods to solve problems, resulting in improved processes and higher quality of products being produced As the methodology has progressed over the past 3 decades, the companies that use the Six Sigma improvement method are no longer limited to manufacturing, expanding into most transactional business industries – even Higher Education!

5. Why Six Sigma? Understanding Six Sigma Video http://www.sixsigmaonline.org/demo/Intro_Part_1a.htm Is 99.9% effective enough? That may depend but consider this: At 99.9% effectiveness, twelve babies would be given to the wrong parents each day, 22,000 checks would be deducted from the incorrect checking accounts each hour, and two planes a day would fail to safely land at Chicago’s O’Hare International Airport. The more complex/critical the process, the more nines of quality you need!

6. Table Activity How does the philosophy of continuous improvement apply to the work that we do at South Mountain Community College? What are some examples of processes in your departments/divisions that could benefit from the application of some of the principles behind this quality management methodology?

7. The Process Improvement Triad OVERALLPROGRAMS LEAN DFSS (DMADV) DMAIC DESIGN PREDICTIVE QUALITY INTO PRODUCTS ELIMINATE WASTE, IMPROVE CYCLE TIME ELIMINATE DEFECTS, REDUCE VARIABILITY Lead-time Robust Capable Design for Six Sigma Lean Variation Reduction • Requirements allocation • Capability assessment • Robust Design • Predictable Product Quality • Flow Mapping • Waste Elimination • Cycle Time • WIP Reduction • Operations and Design • Predictability • Feasibility • Efficiency • Capability • Accuracy

8. 5.0 Control/ Verify 4.0 Improve / Design 1.0 Define 2.0 Measure 3.0 Analyze DMAIC / DMADV Problem Solving Process Planning Execution Validation Purpose: Define the goal of the project and the requirements of the customer Purpose: Information gathering and data collection Purpose: Data analysis to determine root causes and identify ways to close the gap between current and desired performance Purpose: Identify creative solutions based on the data and implement them Purpose: Devise a plan to monitor the process to ensure continued success • The Six Sigma Belt training curriculum is a vehicle for transferring the DMAIC/DMADV methodology. • Each Phase has key objectives, main activities, tools/techniques, and key deliverables that will be covered in subsequent training sessions.

9. Lean Six Sigma A set of methods and tools used to eliminate waste in a process by identifying anything not absolutely required to deliver a quality product on time (become kaizen). Lean methods help reduce inventory, lead time, and cost. Lean methods increase productivity, efficiency, quality, on time delivery, capacity, and sales.

10. Six Sigma Hierarchy Six Sigma training is organized into a hierarchical system named according to martial arts convention. The philosophy is highly team oriented, and as such it is important to understand the roles and responsibilities of each level. However, belt level is not associated with value to the organization – for the 6σ process to work as intended, all levels are necessary and must work together. * Please note: The White Belt is not fully recognized by the Six Sigma community – many consider the Yellow Belt to be the lowest “official” Six Sigma level. • Other key roles necessary for successful Six Sigma implementation also include: • Executive Leadership – includes CEO and other members of top management; responsible for setting vision for 6σ implementation and provide resources to explore new ideas • Champions – drawn from upper management and appointed by Executive Leadership; responsible for identifying/sponsoring projects, integrating 6σacross the organization, and mentoring Black Belts

11. White Belt Certification Procedure Visit Aveta Business Institute Online Training http://www.sixsigmaonline.org/six-sigma-white-belt-training/ Review lesson materials as needed Take free online Six Sigma White Belt Exam (18 questions, 16 correct required to pass) Before closing the window, save & print the Six Sigma White Belt Certificate (PDF document) and send a copy to Andrea Archer CELEBRATE!!