Six Sigma

Six Sigma is a set of techniques, and tools for

process improvement. It was developed by
Motorola in 1986.
Sir Bill Smith, “ the Father of six sigma” introduce
this quality improvement Methodology to
Motorola.
Six Sigma is now an enormous 'brand' in the world
of corporate development.
 History
• Since the 1920's the word “sigma”(s) has been used by
mathematicians and engineers as a symbol for a unit of
Measurement in product quality variation.
• In the mid-1980's engineers in Motorola in the USA used “Six
Sigma”(S) an informal name for an in-house initiative for reducing
defects in production processes, because it represented a suitably
high level of quality.
• In the late-1980's Motorola extended the Six Sigma methods to its
critical business processes, and significantly Six Sigma became a
formalized in-house 'branded' name for a performance improvement
methodology, i.e, beyond purely 'defect reduction.‘
• In 1991 Motorola certified its first 'Black Belt' Six Sigma experts,
which indicates the beginnings of the formalization of the accredited
training of Six Sigma methods.
• In 1995, Six Sigma became well known after
Mr. Jack Welch made it a central focus of his
business strategy at General Electric, and
today it is used in different sectors of industry.
(General Electric, or GE, is an American
multinational conglomerate corporation
incorporated in New York )
• By the year 2000, Six Sigma was effectively
established as an industry in its own right,
involving the training, consultancy and
implementation of Six Sigma methodology.
 Definition
• Six Sigma seeks to improve the quality of
process outputs by id
• Six Sigma approach is a collection of
managerial and statistical concept and
techniques that focuses on reducing variation
in processes and preventing deficiencies in
product.
• The concept of Variation states “NO two items
will be perfectly identical.”
• In a process that has achieved six sigma capability, the
variation is small compared to the range of
specification limit.
• A six sigma process is one in which 99.9999966% of the
products manufactured are statistically expected to be
free of defects (3.4 defects per million).
• Six Sigma is a very clever way of branding and
packaging many aspects of Total Quality Management
(TQM). ( TQM is a management approach to long–term
success through customer satisfaction.)
• Manufacturing methods of six sigma are used in Batch
production, Job production & Mass production.
 Goals of Six Sigma
• The main goal of any Six Sigma implementation is quality
improvement. The term originally comes from the sigma rating
used to statistically rate manufacturing processes in
engineering. A six sigma process occurs when no defects are
expected in 99.99966% of all chances to produce them. This is
the goal of any Six Sigma implementation.
• It focuses on the use of statistical improvements to minimize
defects in products and services. Precisely how that goal will be
manifested will depend on what the product or service you are
trying to improve. In some cases, the goal will be to transform
the business. In others, specific problems need to be solved or
perhaps the business is looking for strategic improvements.
Whatever the goal, the process is essentially the same across
implementations.
 Approaches of six sigma
• DMAIC
This is organizational based
• DMADV
This is based in customer needs and satisfaction
 DMAIC
• DMAIC is a quality improvement and problem-solving method used
to improve business performance. During the DMAIC process,
improvement happens project by project; a “project” can be best
defined as a “problem scheduled for a solution.” This means
management has decided it is important enough to schedule the
resources it needs to get the problem solved.
There are many projects carried out in organizations, such as:
• Improving employee and customer satisfaction
• Decreasing the time from order to shipment received
• Launching new services
A quality improvement project is a problem that must be resolved to
reduce waste, improve customer satisfaction, or improve quality
levels (defects). This is usually a process, customer, or product
issue.
 DMAIC Methodology and Phases
Successful projects follow the Lean Six Sigma
DMAIC methodology, which encompasses five
distinct stages:
•Define
•Measure
•Analyze
•Improve
•Control
DEFINE: Define the problem or project goal that needs
to be addressed.
MEASURE: Measure the problem and process from
which it was produced.
ANALYZE: Analyze data and process to determine root
cause of defects and opportunities.
IMPROVE: Improve the process by finding solutions to
fix, diminish, and prevent future problems.
CONTROL: Implement, control, and sustain the
improvement solutions to keep the process on the
new course.
Eight Steps to a Successful Six Sigma Implementation
• Step 1: Create a Burning Platform.
• Step 2: Put Resources in Place.
• Step 3: Teach the Methodology.
• Step 4: Prioritize Activities.
• Step 5: Establish Ownership.
• Step 6: Take the Right Measurements.
• Step 7: Manage the Program.
• Step 8: Recognize Contributions
 Lean Sigma
Lean Six Sigma is a process improvement methodology designed to
eliminate problems, remove waste and inefficiency, and improve
working conditions to provide a better response to customers’
needs.
It combines the tools, methods and principles of Lean and Six Sigma
into one popular and powerful methodology for improving your
organization’s operations.
Lean Six Sigma’s team-oriented approach has proven results in
maximizing efficiency and dramatically improving profitability for
businesses around the world.
Still wondering, “What is Lean Six Sigma exactly?” Read on for an in-
depth dive into what it is, why it matters, and how to do it right.
There are three key elements to Lean Six Sigma.
Tools and techniques: A comprehensive set of tools
and analytical techniques that are used to identify
and solve problems.
Process and methodology: A series of phases that
organize the use of the problem-solving tools to
ensure that the true root causes are found and that a
solution is fully implemented.
Mindset and culture: A way of thinking that relies on
data and processes to achieve operational
performance goals and continuously improve.
These three elements reinforce each other.
Analytical techniques are not used effectively
unless there is a process for applying them
and a mindset of continuous improvement
creating the need for them. An improvement
process does not produce the desired results
unless it includes the tools and techniques
that define the activity of the process steps
and there is a culture that insists on systemic
data-based approach to solving problems.
 Five Lean tools

Value Stream Mapping

Simply put, the “Value Stream” is the series of
processes through your company that add value to a
product for which a customer will then pay for. In
many manufacturing environments the manufacturing
value stream is listed in the work order or traveller –
those steps that need to be done in the right order to
make the product. For process manufacturing
environments, it’s the process line that creates the
products value.
Takt Time
Takt is a German word that can be roughly translated as “beat.”
Takt time is the rate at which a completed project needs to be
finished in order to meet customer demand. For processes
involving cycle times, such as manufacturing or incident
management, the as-is cycle time can be captured in the
Measure phase. Then, during the Analyze phase, the cycle
time can be compared with existing service level agreements
(SLAs). If a mismatch exceeds the tolerance, improvements
would be needed to match the cycle time with the takt time
for the system.
Ishikawa (Cause-and-Effect) Diagram and 5
Whys
In the Analyze phase, the absence of concrete
statistical data sometimes can make the
identification of a root cause difficult. In those
scenarios, the 5 Whys – asking “Why?” five times –
along with a cause-and-effect diagram, can make the
task more manageable. The 5 Why’s tool also can
help uncover the process dynamics and the areas
that can be addressed easily.
• Heijunka (Load Balancing)
A Japanese term, Heijunka refers to a system of
production designed to provide a more even and
consistent flow of work. This principle can be
incorporated in the Design phase if the root cause
analysis during Analyze points to bottlenecks in the
process. Load balancing can be used to introduce a pull
in the system rather than letting it operate on push –
thus alleviating the bottlenecks. Efforts for introducing
a level load balance in the system also automatically
reduce inventory. If takt time principles are used while
designing the system, it would help ensure a level load
balance.
• Poka-yoke (Mistake Proofing)
A Japanese phrase meaning mistake proofing, poka
yoke can be used to tune process steps and also
when designing a new system altogether with
DMADV (Define, Measure, Analyze, Design, Verify). A
combination of an Ishikawa chart and Pareto analysis
can be useful in Analyze in listing the major issues
plaguing the as-is process. During the Improve and
Design phases, the possibilities for eliminating a
major cause of errors can be explored by improving
or redesigning the system to avoid error-inducing
scenarios.
 Lean Principles
• Define Value: The customer defines the value of a product or
service. Hence, the first step is to identify customers. Ask
yourself, what does the customer value? Figure out customer’s
expectations from your products or services. Classify the process
activities into Non-Value added, Value-added and Enabling value
added. 
• Map the value stream: The value stream mapping shows the
workflow process steps for a product or service. The value
stream mapping helps to identify & eliminate NVA activities.
This eventually helps you to reduce the process delays and
thereby improves quality of product/service.
• Create Flow: Create flow to the customer by ensuring
continuous flow system in producing product or service. Flow
will optimize the process to maximize process efficiency.
• Establish Pull: establish pull approach by meeting
system beat time. The beat time is the rate at which
a product must be ready to meet the customer
demand. JIT (Just in time) is a tool promoting Pull
system. This ensures smooth workflow of the
process without any disruptions. It also helps to
diminish inventory level.
• Seek Continuous Improvement: Finally, you must
put consistent efforts to improve the existing
business processes to cater ever-changing customer
needs. This ensures elimination of waste and defects
free products & quality service to customers