2. Objectives
• Understand the need for Six Sigma
• Explain the Six Sigma DMAIC process
• Clarify the roles of the Sponsor and the Project Leader
• Understand the key differences between traditional problem
solving methods and the Six Sigma approach
• Demonstrate the 7 basic tools
• Develop an awareness of the various Six Sigma tools and
their applicability
• Outline the key attributes of a Six Sigma project
5. Six Sigma
Customer focused business improvement process.
Defect reduction in a process or product.
Common measurement scale called the Sigma capability or Z.
Six Sigma capability corresponds to an efficiency of 99.9996%.
Six Sigma is a Business Philosophy
6. History
Six Sigma was developed by Bill Smith, QM at Motorola
It’s implementation began at Motorola in 1987
It allowed Motorola to win the first Baldrige Award in 1988
Several major companies in the world have adopted Six Sigma
since then .…and applied to Manufacturing processes to improve
product quality
Texas Instruments, Asea Brown Boveri, AlliedSignal, General
Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony,
Polaroid, Dupont, American Express, Ford Motor,…….
GE applied the Six Sigma methodology to improve all business
processes and it became a way of running the business.
Six Sigma is a Competitive Tool
7. Expectations of People Capability
LEVEL CONTENT COMPETENCY
Everybody should
Characterize &
50,000 feet view
understand, use & teach
Optimize
Executives - understand
Define, Measure,
500 feet view
Managers - understand,
Analyze, Improve &
use and teach (YB)
Control
Managers understand,
3 + 12 step process
5 feet view
Project Leaders
understand, use and
teach (GB/BB)
GB/BB understand, use
Tools (info synthesis
Ground level
MBB teach
and statistics)
Applicable at all levels
8. The Standard Deviation
s = S (X – 2
X)
m
1 Sigma - 68%
n-1
2 Sigma - 95%
3 Sigma - 99.73 %
1s
p(d)
Upper Specification Limit (USL)
T USL
Target Specification (T)
Lower Specification Limit (LSL)
Mean of the distribution (m)
3s
Standard Deviation of the distribution (s)
9. What Is Six Sigma
A 3s process because 3 standard deviations
fit between target and spec
Before
Target Customer
3s Specification
1s
0.27% Defects up-to 6.6 %
2s
3s
Customer
Specification
Target
After
6s !
1s
2s
No Defects!
3s
4s
5s
6s
Reducing Variability Is The Key To Six Sigma
10. The Focus of Six Sigma
f (X)
Y
X1 . . . XN
Dependent
Independent
Output
Effect Input-Process
Symptom Cause
Monitor Problem
Control
Would you control target or the shooter to get the Gold Medal?
11. The Eye of the Beholder
Customer’s View How did Supplier influence my
A C Performance?
Handling Defects found at my end
Customer
Process
A B C
Supplier Process
How did I do against my
Supplier’s
A B Obligations?
View
Handling Damage at my end
12. Focusing on Average
Average
River
Depth -4ft
Focus on Average can turn your business red
13. The Need for Six Sigma
How are we viewed by our customers?
• Reactionary, not preventative
• Adequately responsive to
customer needs
• Problems not permanently
solved
• Hard perennial problems not
solved.
• Inconsistent
• Flawed Startups
Customers look for our competitors
14. The Need for Six Sigma
How do we want to be viewed by our customers?
• Proactive
• Quick, agile
• Having robust products
• System experts
• Flawless during startups
• Continuously improving
through an Enterprise-wide
problem prevention/problem
solving culture
Our Customers’ Best Supplier
15. The DMAIC Methodology
OUTPUT
INPUT STEP
You have a problem
Define
Identify Project, People and definition and a thorough
Process execution plan
Ensure you have output You ensure reliable
Measure
measures for process and analyses and decisions
reliable ways of measuring it
You understand the
Find the gaps between current and
Analyze problem now
final states
You have the solution to
Improve
Find root causes and develop
the problem
solution
Communicate, standardize and You have ensured sustained
Control
document the improvement improvement
16. Where to apply…..
... Can Be Applied To Every Business Function
Marketing Engineering
Purchasing
HR
6 Sigma
Methods
Finance Manufacturing
Software
17. Example - Pizza Delivery Service
Dabbawala and Co. a fast food company, owned by Mr.
Dabbawala Pizza runs a pizza delivery service in and around
Delhi. Dabbawala and Co. which was doing very well over the
last four years, notices a drop in sales over the past five
months. Customer complaints about deliveries have been
gradually on the rise. Several complaints from customers
regarding irregular deliveries were bothering Dabbawala. He
had increased the number of delivery personnel to improve
delivery performance. But his customers were still leaving
him.
Pizza Hut, a multinational fast food chain, had set up shop in
downtown and was becoming more popular with the
customers. Dabbawala neither had the financial muscle to
match Pizza Hut’s advertising blitz nor could afford the
expensive packaging to lure his customers back.
18. The Define Phase
Grow
Divisional directive revenues
1. How does the customer
view Dabbawala’s Quality?
Improve
Plant objectives
Sales
2. Who are the stakeholders -
Customer and Process
Improvement Team?
Get more
Functional goals orders
3. Which of his processes
should he try to improve in
So what’s order to improve Sales?
Employees
new
19. The Define Phase - Step A
A. IDENTIFY PROJECT CTQs:
A requirement of the customer is that the Pizza should be delivered
on time. Thus for the customer, Delivery is Critical to the Quality of
Dabbawala’s service (CTQ).
Voice of Customer (VOC)
Affinity Diagram
CTQ Tree.
20. The Define Phase - Step B
B. DEVELOP TEAM CHARTER:
The Business Case
Why should the project be done
Problem and Goal Statement
Description of the problem/opportunity
Roles and Responsibilities
The team, expectations and responsibilities
Stakeholder Analysis, TMAP, Gantt Chart
21. The Define Phase - Step C
C. DEFINE PROJECT SCOPE:
Identify the high level process to be improved
Define boundaries of project
SIPOC
Stratification Analysis
Contract Sheet
22. The 7 Basic Tools - 1
STRATIFICATION ANALYSIS:
Stratification analysis (Is / Is Not Matrix) is helpful in defining the
conditions surrounding the problem - bounding or scoping
Is Is Not Distinctions
West and North
South, East and West and North
Geography Delhi are sub-
Central Delhi Delhi
contracted
Mixups, Hygiene,
Output Delivery time
Temperature
Premium service
Lower and Middle
Customer Higher Income for higher
Income
income group
Increased
Time After Aug 09 Before Aug 09 employees in
Aug 09
23. The Define Phase - Summary
The Define phase is owned Grow
Divisional directive
by the Project Sponsor. The revenues
three steps of the Define
phase are: Widen
Customer
Plant objectives
Base
1. Identify Project CTQ
2. Develop Team Charter
3. Define Project Scope Improve
Delivery
Functional goals process
VOC, Affinity
Diagram,
Reduce
CTQ Tree, Gantt
variation in Employees
Chart, SIPOC, Stakeholder delivery time
Analysis, TMAP, Stratification
Analysis
24. The Measure Phase - Step 1
1. IDENTIFY CTQ CHARACTERISTICS
Translate the CTQ to a measurable output of the delivery
process
Delivery time can be measured in many ways:
1. No. of times the delivery person delivered during the
shipping window (Discrete measure)
2. Time taken to travel from Dabbawala’s location to customer
location (Continuous measure)
3. Actual delivery time as seen by customer (Continuous
measure)
Delivery time is the Project Y.
25. The Measure Phase - Step 2
2. DEFINE PERFORMANCE STANDARDS:
What are the customer’s requirements on Delivery time?
What is the definition of a defect?
1. Capture the Target (mean) delivery time - On time
2. Get the allowable variation on Y - +/- 30 minutes
Loss (Deviation)2
Loss
VOC
Competitive Benchmarking
Y
Target
26. The Measure Phase - Step 2
The customer
tolerance
window is 30
minutes on USL
LSL
either side
Customer Customer
does not does not
This is the
want earlier want later
target
than this than this
delivery time
15 30 45
45 30 15 0
EARLY DELIVERY LATE DELIVERY
(MINUTES)
Visualize customer requirements
27. The Measure Phase - Step 2
Preparation for data collection:
1. The Y or the Delivery Process Output
2. The Xs or the Inputs to the Delivery Process
Generate a list of Xs
Brainstorming
Process Map (PMAP)
Failure Modes Effects Analysis (FMEA)
Cause & Effect Diagram or Fishbone
Quality Function Deployment (QFD)
Prioritization Matrix
Check-sheet
28. The 7 Basic Tools - 2
CHECK-SHEET (DATA COLLECTION FORM)
Check-sheet is a data collection sheet used to record occurrences of
an event to look for patterns in the data in order to quantify the
problem and to facilitate understanding.
NO. OF LATE DELIVERIES
C a te g o rie s Jan 6 Jan 7 Jan 8 Jan 9 T o ta l
M isin te rp re te d llll llll llll llll llll l llll llll llll lll 47
Label llll
T raffic llll lll llll llll llll ll 24
P a rk in g lll llll ll ll llll l 18
L a rg e O rd e r llll lll llll ll 15
L o c a tin g h om e ll l l lll 7
O th e rs l ll l 4
Prepare to collect data on the Xs also !
29. The Measure Phase - Step 3
3. EVALUATE MEASUREMENT SYSTEM:
Measurement system may
introduce variation into data
Actual process variation +
measurement variation =
data
Identify and remove
contribution to variation from
CAUTION: Objects in mirror
measurement system are closer than they appear
Ensure reliable data
MSE, Gage R&R, Test – Re-
test, Kappa Method, Intra-
Class Correlation
30. The Measure Phase - Summary
A data collection plan is done in the Measure phase. It sets the
expectations for the project. This phase is owned by the Project
Leader. The three steps of the Measure phase are:
1. Identify CTQ characteristic
2. Define Performance Standards
3. Evaluate Measurement System
The list of tools available for the Measure phase are:
Brainstorming, PMAP, FMEA, MSE, GR&R, C&E
Diagram or Fishbone, Quality Function
Deployment or QFD, Prioritization Matrix,
Learn more about the PMAP, FMEA and MSE in the Six Sigma
Green Belt Training.
31. The Analyze Phase - Step 1
4. ESTABLISH PROCESS CAPABILITY
•What are the chances of your process creating defects?
•Baseline the current process:
•Measure variation in current process output
•Evaluate against Performance Standards
•Understand variation in your data with the help of:
Histogram
Box and Whisker plot
Dot plot
Standard Deviation
Variance
Sum of Squares
32. The 7 Basic Tools - 3
HISTOGRAM
The Histogram is a graphical data summary tool which groups
observed data into pre-defined bins in order to analyze the data
values and distribution.
Target time Delivery time Target time Delivery time Target time Delivery time
hrs hrs hrs hrs hrs hrs
12:30 12:18 13:00 12:38 13:30 13:45
12:30 12:26 13:00 13:09 13:30 13:21
13:30 13:34 13:00 12:49 12:00 12:17
13:30 13:42 13:00 13:05 12:00 11:58
13:00 13:07 13:30 13:31 12:00 12:17
13:00 13:06 12:00 12:04 12:00 11:46
13:30 13:23 12:00 12:08 12:00 11:53
13:30 13:41 12:00 12:10 12:30 12:33
12:30 12:26 13:00 13:18 12:30 12:30
12:30 12:37 13:00 13:01 13:30 13:28
33. The 7 Basic Tools - 3
CREATING A HISTOGRAM:
Using the concept of the late and early deliveries, take the target
time as the reference, and find the number of minutes by which
each delivery is late or early.
1. Subtract Target time for each
data point from the Delivery time
2. Define 5 predetermined bins
(class intervals) of size equal to
10 minutes, from -25 to 25 on a
horizontal line
3. Place each data point vertically
in a bin according to its value
4. Draw a bar equal to the height
-25 -15 15 25
-5 5
of stacked up points
34. The Analyze Phase - Step 1
m
Dabbawala has an
NUMBER OF DATA POINTS
average delivery time (m)
2 minutes late and a
s standard deviation (s) of
10 minutes
0
45 30 15 15 30 45
EARLY DELIVERY LATE DELIVERY
(MINUTES)
Measure the process output
35. The Analyze Phase - Step 1
Customer tolerance
m
Z= Process standard deviation
USL
LSL
30 minutes
Z=
s
10 minutes
Z=3
0
45 30 15 15 30 45
EARLY DELIVERY LATE DELIVERY
(MINUTES)
Measure the Process Output
36. The Analyze Phase - Step 1
Defects per
It is cost
Process Million
effective to
Capability Opportunities
2 308,537
Inspect in
Quality
3 66,807
4 6,210 Manufacture in
Quality
5 233
Design in
Quality
6 3.4
Higher Z implies lower defects
37. Getting the Competitive Edge
Sweet Fruit
Design for Processability
5 s Wall, Improve Designs
Bulk of Fruit
Process Characterization
and Optimization
4 s Wall, Improve Processes
Low Hanging Fruit
Seven Basic Tools
3 s Wall, Beat Up Suppliers
Ground Fruit
Logic and Intuition
Mikel Harry, 1994
38. Industry Benchmarks
Do you know the Sigma capabilities of the following processes?
Sigma capability, Z
U.S. Manufacturing industry average 4.0
Japanese manufacturing industry average 5.5
Flight fatality in airline industry 6.4
Airline Baggage handling 3.2
Doctor prescription writing 2.8
Tax advice by Internal Revenue Service in U.S. 2.5
Six Sigma is a Metric
39. The Analyze Phase - Step 2
5. DEFINE PERFORMANCE OBJECTIVES
Process Off Target Excessive Variation in Process
T a rg e t
T a rg e t
LSL USL
LSL USL
Center Reduce
Target
Process Spread
Hypothesis testing
LSL USL
Understand your Problem
40. Quiz - Characterize
Six Sigma is a What is the Y?
A. Statistical Quality Tool A. Measurable Process Output
B. Business Philosophy B. Voice of the Customer
C. U.S. Management style C. Process Input
The goal of Six Sigma is to Who gives the USL and LSL?
A. Reduce defects to 3.4 per million A. Management
B. Improve products B. Customer
C. Reduce variation C. Derived from the process data
In the Pizza Delivery Service example, In the example, the Voice of the
what is the CTQ? Customer is characterized by
A. Lunch A. Delivery time
B. Time B. No. of deliveries made
C. Delivery C. Tolerance around the Target
If a process is Six Sigma (Z=6), it implies In the example, the delivery service is
A. Process is 99.99% good characterized by
B. Products are 99.99% defect free A. Mean delivery time
C. There are only 3.4 defects in a million B. Tolerance around the Target
opportunities C. Mean & variation of the delivery time
41. The Analyze Phase - Step 3
6. IDENTIFY SOURCES OF VARIATION
To find root causes or Xs
Fishbone or C&E Diagram (Ishikawa)
PMAP
FMEA
QFD
Fishbone (Ishikawa) is another of the 7 basic tools. It is also known
as the Cause & Effect Diagram. It is a hierarchy of causes that starts
with the primary cause and then steps several layers in detail to drive
towards possible root causes.
42. The 7 Basic Tools - 4
FISHBONE
MACHINE MOTHER NATURE MATERIALS
Sacks
Too much traffic Run out of storage
too small
Weather space on vehicles
Unreliable bikes
Large items
Bus service
difficult to carry Too few delivery
unreliable in
No money for
in bus /bikes persons
peak hours
repairs
Too many orders
Too many
Parking space
Delivery persons own junk per person
sacks
problem
Delivery
Don’t know Time
Cant locate
Delivery person
routes employees homes
does not show up
Poor handling of large orders
High turnover
Not on std routes
No training Too few
Delivery person gets lost
delivery
Did not Poor persons
Uneven distribution
No understand dispatching
of delivery loads
teamwork labels
Get wrong
Did not
information
understand METHODS
MAN MEASUREMENT labels
Develop a list of Xs that possibly affect Y
43. The Improve Phase - Step 1
7. SCREEN POTENTIAL CAUSES
To find the Vital Few Xs and separate it from the Trivial Many
Pareto
ANOVA (Analysis of Variance)
Regression
Chi-Square tests
Systematic data generation (if historical data is not sufficient)
Design of Experiments (DOE)
Statistical Analysis to identify Vital Few Xs
44. The 7 Basic Tools -5
PARETO
This is also called the Pareto Principle or the 80/20 rule and is used
to identify the Vital Few Xs.
Others
Location
Order Size
Parking
Traffic
Label
Cut-off level to be decided by team consensus based on
Process knowledge
Resource availability
45. The Improve Phase - Step 2
8. DISCOVER CAUSAL RELATIONSHIPS
To find out effect of Xs on the Y
Y
Regression
Scatter Diagram X2
X1
46. The 7 Basic Tools - 6
SCATTER DIAGRAM
A Scatter Diagram is a graph that shows the relationship between
two numerical variables, X and Y
DELIVERY TIME SPAN
It is used to look for a cause
and effect relationship
between the two Numerical
variables.
NO. OF PIZZAS / DELIVERY PERSON
In this example, the Scatter Diagram shows that the Delivery time is
less if the number of lunches per delivery person is less.
47. The Improve Phase - Step 3
9. ESTABLISH OPERATING TOLERANCES
y
y f x
USL
DELIVERY TIME
LSL
x
xL xU
xT
NO. OF PIZZAS PER DELIVERY PERSON
48. The Control Phase - Step 1
10. VALIDATE MEASUREMENT SYSTEM ON X
Ensure noise from LSL USL
measurement system
sprocess
on X is small
compared to process
variation
s Measure
smeasurement
MSE, GR&R
Test - Retest,
Kappa Method,
Intra Class Correlation
Tolerance
49. The Control Phase - Step 2
11. ESTABLISH NEW PROCESS CAPABILITY
USL
LSL
Z = 4.5
0
45 30 15 15 30 45
EARLY DELIVERY LATE DELIVERY
(MINUTES)
50. The Control Phase - Step 3
12. IMPLEMENT PROCESS CONTROL
A good Control Plan should be put in place to ensure sustained
improvement. This may include:
1. Use of Control Charts to monitor Xs
2. Documentation of Control Plan
3. Update of process documents such as PFMEA
4. Error Proofing
5. Standardization
51. The 7 Basic Tools - 7
RUN CHART
A Run Chart is a time series plot of data that allows a team to study
observed data for trends or patterns over a specific period of time. It
captures instances when the process is changing more than
statistically expected
30
No. lunches/person
20
10
0
52. The DMAIC Steps and Deliverables
STEP DELIVERABLES
A. Identify project CTQs Identify customers, customer CTQs and Business Case
B. Develop Team Charter Problem statement, Project Scope,Team, Milestones
C. Define Project Scope High Level Process Map connecting customers to process
1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y)
2. Define performance standards Confirm specification limits (requirements) for Y
3. Evaluate Measurement System Ensure measurement system is capable
4. Establish process capability Baseline the current process
5. Define performance objectives Understand statistical objective - reduce variation or shift means?
6. Identify sources of variation List significant causes (Xs) or factors
7. Screen potential causes Determine vital few Xs, which will be controlled
8.Discover variable relationship Find causal relationship and optimal solution
9. Establish operating tolerances Validate the relation and determine specs on Xs
10. Measurement System Evaluation on Xs Ensure X measurement is capable
11. Establish process capability Establish improved capability
12. Implement process control Document control plan
It’s a common sense approach
53. Attributes of a Six Sigma GB project
1. Customer Focused: A Six Sigma GB project should address a
customer CTQ
2. Data Driven: In a Six Sigma GB project, decisions should be
made using data analysis and not on gut feelings or intuitions
3. Variation reduction: Six Sigma GB projects address the issue
of variation in process outputs and is aimed at reducing variation
54. Quiz
Characterize part consists of The Pareto principle is
A. Define and Measure A. Also called the 80/20 rule
B. Define, Measure and Analyze B. Used to identify the Vital Few
C. Define, Measure and part of Analyze C. Useful in the Analyze phase
Optimize part consists of Which of the following tools is used to
A. Analyze, Improve and Control generate data?
B. Improve and Control A. Analysis of Variance (ANOVA)
C. part of Analyze, Improve and Control B. DOE
C. Regression
In Six Sigma, Xs are
A. Unknown variables Which of the following cannot identify the
B. Excess variation Vital Few Xs?
C. Process Inputs A. Analysis of Variance (ANOVA)
B. DOE
Which of the following is used to list Xs? C. Regression
A. DOE
B. Fishbone A Six Sigma GB project has to
C. Pareto A. Finish in 3 months
B. Show dollar savings
C. Address the variation issue
56. Roles and Responsibilities
Executive Champion
Responsible for providing resources to BB/GBs
Help in team selection
Track progress of project
Generally is supervisor of BB/GB. May help in selection of the project
Sponsor
Call for need of project (Project identification)
Beneficiary of the project
Validate current status and status after completion of project
Allocates resources for the project
Ensure compliance to controls established as a result of the project
Project Leader (Black Belt / Green Belt)
Lead the project
Ask for resources required
Call meeting of stakeholders and seek help from EC when stakeholders are
not responding
Ensure team involvement and sponsor’s buy in for solution
Publish weekly progress report & call for help when required
57. Roles and Responsibilities
Deployment Champion
Mentor and guide BBs/GBs
Provide technical help when BBs/GBs reach a roadblock
Publish Summary report of all projects
Raise alarm when things are not moving
MBB
Train BB/GB
Assess the skills of BB/GB
Certification of GBs and BBs after completion of projects
Deployment of Global policies and procedures
CFO/Finance
Assess the saving potential at start of project
Validate savings against the targets achieved at completion of project
58. Roles and Responsibilities
Yellow Belt (YB): Should understand the DMAIC process and
use the Six Sigma philosophy (Stakeholder involvement).
Green Belt (GB): Should be able to use DMAIC process with
basic Six Sigma tools for project execution. Lead Six Sigma
projects in their functions.
Black Belt (BB): Should be able to use advanced tools in
projects and teach Green Belt level techniques / tools.
Identifies Six Sigma projects and leads project teams.
Mentors Green Belts. Process experts in their functions.
Master Black Belt (MBB): Should be able to train Black
Belts and Green Belts. Mentors Black Belt projects. Drivers
of cultural change. Process experts in any function. Can
develop new tools.
59. The GB Certification Map
Basic statistics training (not mandatory for Certification)
Six Sigma GB Training
Project Application
Achieved a
Six Sigma
score of 5 or Technical
A
greater in all Certification
Yes
tool sets?
10 weeks (3 - 5 day training) Based on demonstration of the Six
Sigma tools.
3 months avg. • Occurs during project reviews and
No on-site visits
• Instructor or MBB is responsible
Improve Tools and for technical certification.
• Evaluation form sent to GB and
Application to Project
Champion after each session.
Project Completed
and Final Report
Six Sigma Green Belt and
A Submitted and
Approved by Yes I & CIM Associate Certification
Sponsor and
Finance
No
Complete Project and
Submit Final Report
60. Summary
• Knowing Customer CTQs
• Data driven improvements
• Focus on the (Xs) of the process
• Application of statistical tools to business problems
• Understanding process capability and its impact on quality
• An environment that demands only the highest performance
standards.
Success will be defined when our customers notice !