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Matthew Stangel

Six Sigma

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Matthew Stangel. Six Sigma. What is Six Sigma?. Engineering process Not specific to software Designed to keep defects at a minimum Named for the goal of minimum six standard deviations between mean and nearest specification limit Equates to 3.4 defects per million opportunities. Key Terms. - PowerPoint PPT Presentation

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Page 1: Six Sigma

Matthew Stangel

Page 2: Six Sigma

What is Six Sigma?

Engineering processNot specific to software

Designed to keep defects at a minimum Named for the goal of minimum six

standard deviations between mean and nearest specification limitEquates to 3.4 defects per million

opportunities

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Key Terms

Defect – any kind of undesired result, including failure to meet customer requirements

Opportunity – anywhere a defect could be produced

Standard Deviation – a measurement of spread for dataSquare root of the variance for a set of data

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What is Six Sigma? – Why 6?

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Other Sigmas

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History

Created in the late 1980’s by MotorolaProposed by Bill Smith in 1986Adopted by Motorola CEO in 1987

Soon adapted by other companiesIntroduced to General Electric in 1995Introduced to Honeywell in 1998Introduced to Ford in 2000

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How Six Sigma is Used

Not a processUsed to improve other processes

Two typesDMAIC – Used to improve existing

processesDMADV – Used to improve a process being

created

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DMAIC

“Solving a problem with an unknown solution”DefineMeasureAnalyzeImproveControl

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DMAIC - Define

Identify the project based on objectives Determine the aspects that are “critical

to quality” Define the scope of the project Define what is considered a defect

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DMAIC - Measure

Determine how to measure the problemCreate metrics to measure defects

Input, output, and process are identifiedDetermine how the inputs affect critical

processes○ Determine what would happen if things go

wrong

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DMAIC - Measure

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DMAIC - Analyze

Determine the causes of the problem in the process that needs improvementDetermine how to fix the problem in order to

achieve the desired results○ Done by determining what places are most

likely to cause problems

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DMAIC - Improve

Find ways to improve the process Determine what happens if the

improvements are not made or take too long

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DMAIC - Control

Implement results of the last four phases Monitor the changes made

Ensure that the changes made had the desired impact

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DMAIC Example

http://www.6sigma.us/SixSigmaProject.html

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DMADV

Also called DFSS (Design For Six Sigma)

Used when creating a new processDefineMeasureAnalyzeDesignVerify

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DMADV – Define, Measure, and Analyze Define - Same as DMAIC

Only step identical in both processes

Measure - similar to DMAIC MeasureInstead of measuring the current process,

measure customer specifications

Analyze – similar to DMAIC AnalyzeAnalyze options rather than defects

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DMADV – Design and Verify Design – Design the process to meet

customer needs Verify – Verify that the process meets

customer needs

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Learning Six Sigma

“Belt” system of proficiencyYellow Belt – uses Six Sigma, but is not

trainedGreen Belt – proficient with Six Sigma, has

some trainingBlack Belt – highly proficient with Six Sigma,

has received extensive trainingMaster Black Belt – devoted to Six Sigma

work, trains other black belts

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Learning Six Sigma - Costs Green belt – approximately $3500 to

certify Black Belt – an additional approximately

$4000 to certify Master Black Belt – an additional

approximately $5000 to certify

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Benefits of Six Sigma

“It has been estimated that less than Six Sigma quality, i.e., the three-to-four Sigma levels that are average for most U.S. companies, can cost a company as much as 10-15% of its revenues.”-1996 GE annual reportEstimated $11.2-16.7 billion worth of

savings for GE in 2001

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Criticisms

UnoriginalNew jargon for basic quality process

Arbitrary standards3.4 defects per million opportunities

○ Always applicable?1.5 sigma shift

○ After shift, still six sigma?

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Criticisms

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Criticisms

“Belt” systemLarge investment - approximately $7500 per

black belt, $3500 per green beltBelt training industry

○ Process hyped up by people who want money to train belts

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Criticisms

Narrow applicationCan improve processes, but is not good at

making new onesCan’t guarantee improvement

○ Ford showed no noticeable improvement

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References

Adams, Cary W.; Gupta, Praveen (2003). “Six Sigma Deployment”. Burlington, MA: Butterworth-Heinemann

 Ideal Meadia LLC. i Six Sigma. Retrieved 1/17/2010. <http://www.isixsigma.com/>

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References

Peterka, Peter. 2007. “The DMAIC Method in Six Sigma”. Retrieved 1/17/2010. <http://www.buzzle.com/editorials/10-24-2005-79640.asp>

Huesing, Tina. “Six Sigma Through The Years”. Motorola, 2008. Retrieved 1/17/2010. <http://6sigmaexperts.com/presentations/Six_Sigma_Through_the_Years.pdf>

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References

Peterka, Peter; Weed, Dr. Harrison; Wexler, Joseph; Jackson, Jeffery. Six Sigma us. Retrieved 1/17/2010. <http://www.6sigma.us/six-sigma.php>