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What is Six Sigma?

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Six Sigma Quotes

"... the most powerful breakthrough management toolever devised"

Mikel Harry and Richard SchroederSix Sigma: The BREAKTHROUGH Management Strategy Revolutionizing the World's Top Corporations

"Six Sigma is arguably the most important business andindustry initiative that has involved statistical thinkingand methods."

Ronald D. Snee"Impact of Six Sigma on Quality Engineering"

Quality EngineeringVolume 12, Number 3, 2000

"Six Sigma has spread like wildfire across the companyand its transforming everything we do."

Jack Welch, CEO, GEBusiness Week special reportJune 8, 1998

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Six Sigma Vs.

Lean Manufacturing Six sigma and lean manufacturingare methods to improve business andmanufacturing processes and drive profitability of companies. Both six sigmaand lean manufacturing, are proven concepts and have saved companiesbillions of dollars and are the leading continuous improvement methodsutilized today.

Lean Manufacturing Focuses on eliminating the 7 or 8 wastes and is basedon the philosophy of getting all levels of an organization involved. It wasdeveloped by Toyota in the late 1950s.

Six sigma is a philosophy of doing business with a focus on eliminating

defects through fundamental process knowledge. Six sigma methodsintegrate principles of business, statistics and engineering to achieve tangibleresults.

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7 or 8 Wastes of Lean

1. Defects2. Overproduction3. Transportation4. Waiting

5. Inventory6. Motion7. Processing8. SkillsNot utilizing peoples talents

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Six Sigma Vs.

Lean Manufacturing Huge difference between "lean Tools" and Six

Sigma tools.

Lean = Improved process flow and the elimination

of waste in a continual mode of improvement Any of the following mean Lean Manufacturing:

Continuous Improvement, Kaizen, LeanManufacturing, JIT

Six Sigma = Reduced process variation Six Sigma holds the improvement process in the

hands of a select group of belted individuals

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Six Sigma

In 1986, Bill Smith, a senior engineer and scientist at Motorola,introduced the concept of Six Sigma to standardize the way defectsare counted.

Six Sigma provided Motorola the key to addressing quality concernsthroughout the organization, from manufacturing to support

functions. The application of Six Sigma also contributed to Motorolawinning the Malcolm Baldrige National Quality award in 1988.

Since then, the impact of the Six Sigma process on improvingbusiness performance has been dramatic and well documented byother leading global organizations, such as General Electric, AlliedSignal, and Citibank.

Today, Motorola continues to implement Six Sigma throughout itsown enterprise, and extends the benefit of its Six Sigma expertise toother organizations worldwide through Motorola University.

Six Sigma was derived from the statistical term of sigma whichmeasures deviations from perfection

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Six Sigma History 1986: Motorola Defines Six Sigma and in 1987 Chief Executive declares

Motorola will be at 6 by 1992 (5-year goal) 1988: Six Sigma consortium is formed:

Moto rola, Raytheon, ABB , CDI, Kodak

1989/1990: IBM, DECtry Six Sigma -- and fail

1993: All iedSignaladds a new level to Six Sigma : Dedicated Black Beltswith a supporting infrastructure

1995: Jack Welch of General Electr icadopts Six Sigma

1996-1998: Six Sigma implementation expands significantly as companiesobserve the success of Allied and GE :Siebel, Bombardier , Whir lpoo l,Navistar, Genco rp, Loc kheed Martin, Polaro id,Sony, Nok ia, John Deere

Siemens , BBA, Seagate, Com paq, PACCAR, Tosh iba, McKesson,

AmEx...

1999: Starting to see exponential growth. Formal Six Sigma training beginsat ASQ: John son & John son, Air Products , Maytag, Dow Chemical ,DuPont, Honeywel l , PraxAir , Ford, BMW, Joh nso n Con trols, Samsung

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Sigma Levels

Sigma LevelA value from 1 to 6 that signifies the maximum numberof defects per million:

1 Sigma = 690,000 defects/million = 31% accurate2 Sigma = 308,537 defects/million = 69.1463%accurate3 Sigma = 66,807 defects/million = 93.3193% accurate

4 Sigma = 6,210 defects/million = 99.3790% accurate5 Sigma = 233 defects/million = 99.9767% accurate6 Sigma = 3.4 defects/million = 99.999997% accurate

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Six Sigma Key Concepts

At its core, Six Sigma revolves around a few keyconcepts.

Critical to Quality:Attributes most important to thecustomer

Defect: Failing to deliver what the customer wants Process Capability:What your process can deliver Variation:What the customer sees and feels Stable Operations: Ensuring consistent, predictable

processes to improve what the customer sees and feels Design for Six Sigma (DFSS): Designing to meet

customer needs and process capability

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Six Sigma Methodology

Six Sigma has two key methodologies:

DMAIC and DMADV.

DMAIC is used to improve an existing businessprocess.

DMADV is used to create new product designs

or process designs in such a way that it results ina more predictable, mature and defect freeperformance.

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Statistical Process Control Methodology

Statistical process control is an important part of Six Sigmamethodology, which proceeds through the following steps, alsocalled DMAIC(Define, Measure, Analyze, Improve andControl):

1. Define- benchmarking, process flow mapping, flowcharts

2. Measure- defect metrics, data collection, sampling

3. Analyze- Fishbone diagrams, failure analysis, root causeanalysis

4. Improve- modeling, tolerance control, defect control, designchanges

5. Control - SPC control charts, performance management

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Six Sigma Five Phases

Basic methodology consists of the following five phasesDMADV(Define, Measure, Analyze, Design, and Verify):

Define - formally define the goals of the design activity that areconsistent with customer demands and enterprise strategy.

Measure - identify CTQs (Critical to Quality), productcapabilities, production process capability, risk assessment, etc. Analyze - develop design alternatives, create high-level design

and evaluate design capability to select the best design. Design - develop detail design, optimize design, and plan for

design verification. This phase may require simulations. Verify - verify design, setup pilot runs, implement production

process and handover to process owners. This phase may alsorequire simulations.

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Six Sigma Key People Roles

Executive Leadershipincludes CEO and other key top management team members.They are responsible for setting up a vision for Six Sigma implementation. They alsoempower the other role holders with the freedom and resources to explore new ideasfor breakthrough improvements.

Championsare responsible for the Six Sigma implementation across the organizationin an integrated manner. The Executive Leadership draws them from the upper

management. Champions also act as mentor to Black Belts. Master Black Belts, identified by champions, act as in-house expert coach for the

organization on Six Sigma. They devote 100% of their time to Six Sigma. They assistchampions and guide Black Belts and Green Belts. Apart from the usual rigor ofstatistics, their time is spent on ensuring integrated deployment of Six Sigma acrossvarious functions and departments.

Black Beltsoperate under Master Black Belts to apply Six Sigma methodology to

specific projects. They devote 100% of their time to Six Sigma. They primarily focuson Six Sigma project execution, whereas Champions and Master Black Belts focus onidentifying projects/functions for Six Sigma.

Green Beltsare the employees who take up Six Sigma implementation along withtheir other job responsibilities. They operate under the guidance of Black Belts andsupport them in achieving the overall results.

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Recognized Training

GE

Motorola

ASQ American Society for Quality Six Sigma Academy

Institute of Industrial Engineers

ISSSP International Society of Six SigmaProfessionals