Six Sigma Overview

Process Improvement
Consultant

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What is Six Sigma?
 A Metric
 Philosophy
 Initiative
 Method / Tools

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Philosophy
 Sources of variation can be
 Identified
 Quantified
 Eliminated
 Controlled

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 Initiative
 Breakthrough Improvement
 Systematic, Focused Approach
 Projects Linked to Business Strategy
 Key People Selected & Trained
 Project Management & Reviews
 Results
 Strategic Process Improvement
 Financial Results
 Sustain the Gains
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 Method and Tools
 Process Thinking
 Process Variation
 Facts, Figures, Data
 Critical Few Drivers
 Customer Satisfaction, DPM, COPQ, Cycle Time

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Define-Measure-Analyze-
Improve-Control
 8 Key Tools
 Process Map, C&E Matrix, Gage R&R,
Capability Analysis, Multi-Vari Studies /
Hypothesis Testing, FMEA, DOE,
SPC/Control Plans

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Define-Measure-Analyze-
Improve-Control
 Define: Define the problem, measures and
process associated with the problem; quantify
benefits; and identify project team.
 Measure: Determine the capability of the current
process and the measurement system.
 Analyze: Analyze data to assess patterns and
trends between inputs and outputs.
 Improve: Verify critical inputs and determine
optimum settings. Implement.
 Control: Implement controls to “sustain the
gains.”
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 Overall Approach

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Six Sigma Organization
 Champions
 Master Black Belts
 Black Belts
 Green Belts

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Champions
 Provide direction and resources.
 Facilitate the identification and selection
of projects with senior leadership.
 Track progress of projects.
 Breakdown barriers.
 Create support systems.
 Six Sigma Catalysts

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Master Black Belts
 Internal experts in Six Sigma methods and tools.
 Train and mentor Black Belts.
 Develop and deliver training.
 Assist Champions.
 Leverage best practices.
 Six Sigma Experts

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Black Belts
 Lead strategic, high impact multi-
functional projects
 ? $175,000 per project
 2-4 projects per year

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Master Six Sigma methods and
tools

 Mentor and coach Green Belts

 Dedicated role for 18 – 30 months
 Six Sigma Change Agents

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What Makes a Good Black Belt?

 Open mind.
 Desire to find out why things happen.
 Ability to lead and direct people.
 Ability to handle conflict.
 Capable of self-directed activity.
 Sense of urgency.
 Good grasp of computer skills and a basic
understanding of math.
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Green Belts
 Lead day-to-day functional projects and
support strategic Black Belt projects
 Maintain current role in organization with
20-50% of time dedicated to a Six Sigma
project
 $50,000 –100,000 per project
 Sustain the gains
 Six Sigma Institutionalizers
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Characteristics of a Good Project
 Problem is clearly connected to business
priorities
 Improvement in process metrics > 50%
 Financial impact > $175,000/yr
 People will support a project they understand and see as
important

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 Clear quantitative measures of success
 Reasonable scope – Do able in 4-6 months
 Has the support and approval of
management needed to get resources and
remove barriers

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Examples of Black Belt Projects
 Increase process throughput $400k
 Reduce cycle time of assembly $420k
 Reduce process downtime and scrap $320k
 Reduce freight costs $700k
 Reduce costs of waste disposal $1200k
 Reduce bulk material transportation costs $270k

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 Reduce amount of accounts receivable
$500k
 Reduce caustic use of Process Z $2000k
 Material loss: Reduce scrap & increase
yield $150k
 Reduce wet milling operations costs
$300k
 Reduce warranty costs 50% $500k
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Examples of Black Belt Projects
 Reduce road construction change orders 20%.
 Improve sewage plant efficiency by 25%.
 Reduce lime usage in water softening at city
water plant by 20%.
 Reduce invoice to cash cycle time by 50%.
 Reduce processing time of billing customers for
3rd party orders.

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 Reduce overpayment of benefits.
 Improve mortgage center first call rate
from 76% to 99%.
 Reduce document retention for legal
cases.
 Reduce cycle time of legal transcript
transmittals.

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Six Sigma Applies to All
Processes in All Industries
 Customer Service
 Design
 Purchasing
 Manufacturing
 Sales
 Marketing
 Administration

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 Manufacturing
 Financial
 Telecommunications
 Health Care
 Government
 Education

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 2001 AQC Six Sigma Sessions
 United States Mint
 El Camino Hospital
 CNH Capital
 DuPont Legal
 Albemarle Corporation
 Froedtert Memorial Lutheran Hospital
 American Express Financial Corporation
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What is Different? Why Does Six
Sigma Work?
 Driven by top leadership
 Top-down deployment - integrated with business
strategies
 Bottom-line cost-benefit $$$$
 Disciplined approach (Define-Measure-Analyze-
Improve-Control)
 Sense of urgency (4-6 month projects)
 Well defined roles & infrastructure (Champion,
MBB, BB, GB, etc)
 Statistical and data based decisions
 Customer and process focus
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QUESTIONS?
 Six Sigma is a Contact Sport

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 Additional Slides

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 Common Define Pitfalls – Project Scope
 Non-financial Objectives
 Boil the Ocean Scope
 Reduce waste across manufacturing 50%
 Improve count control 25%
 Micro-focused Scope
 Reduce waste for aesthetic defects by 50% on parts
sold to MNO
 Solution in Mind Scope
 Add XY123 to product ABC to improve yield
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 Common Measure Pitfalls - Tools
 Process Map too detailed first time through
 Do not see the “forest for the trees”
 Measurement System not capable and no action
taken to improve
 An incapable measurement system must either be
improved, replaced, or dropped.
 No action taken on high RPN items in FMEA

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Initial Process Map Detail

 Initial Process Map Detail

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 Incapable Measurement System
 StdDev Study Var %Study Var %Tolerance
 Source (SD) (5.15*SD) (%SV) (SV/Toler)
 Total Gage R&R 0.383784 1.97649 45.10 197.65
 Repeatability 0.331525 1.70735 38.96 170.74
 Reproducibility 0.193341 0.99571 22.72 99.57
 OPERATOR 0.193341 0.99571 22.72 99.57
 Part-To-Part 0.759582 3.91185 89.25 391.18
 Total Variation 0.851032 4.38281 100.00 438.28
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 Common Analyze Pitfalls - Tools
 Exclude noise inputs in analysis.
 Small sample sizes.
 Rely completely on graphical analysis
versus hypothesis testing, regression
analysis, etc.
 Choose the wrong tool - confuse tests on
the mean with tests on variance.

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 Analyze Tools
 Single Output, Single Input

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 Common Improve Pitfall – DOE Planning
 Fail to clearly state experiment objectives and
link to project objectives.
 Measurement System(s) not capable.
 Inadequate resources.
 Fail to think through the logistics.
 Fail to review experiment proposal with
appropriate personnel.
 Operations, maintenance, safety, quality,
engineering.

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 Common Control Pitfalls – Operational Discipline
 Fail to Incorporate Management of Change
 Personnel
 Technology
 “Subtle” Change
 Fail to Link to Existing Systems
 ISO / QS – 9000
 Safety
 Training
 Procedures
 Fail to Audit
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 Deployment Elements
 Process Performance Metrics
 Project Filters/Criteria
 Project List / Hopper
 Champions
 Black Belt / Green Belt Selection
 Training Plan
 Roles & Responsibilities
 Project Reporting & Tracking
 Reward & Recognition
 Communication Plan / Process
 Management Review
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 Deployment Elements
 Process Performance Metrics
 Project Filters/Criteria
 Project List / Hopper
 Champions
 Black Belt / Green Belt Selection
 Training Plan
 Roles & Responsibilities
 Project Reporting & Tracking
 Reward & Recognition
 Communication Plan / Process
 Management Review
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Six Sigma Deployment &
Baldrige Performance Excellence
Framework

 Leadership
 Set Values, Direction, & Performance Expectations, Manage
Performance
 Strategic
 Planning
 Strategy Formulation, Planning, Budgeting & Resource
Allocation
 Customer
 & Market
 Focus
 Customer & Market Knowledge
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 HR
 Focus
 Belt Selection, Compensation/ R&R, Career Development, Training
 Process
 Mgmt
 Project Selection, Project Assign, Project Tracking & Review
 Results
 Business, Six Sigma
 Deployment
 Information and Analysis
 Organizational
 Environment, Relationships & Challenges
 Data & IS Support
 Mfg, Design & Service
 Capability
 Finance
 Communication

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