The story of Six Sigma began in the 1980s at Motorola, where it was first developed and proven. Six Sigma A statistical concept that measures a process in terms of defects - at the Six Sigma level, there are only 3.4 million defects per million opportunities.
Essentials of the Six Sigma Methodology
Jack Welch, the CEO who started Six Sigma at General Electric, called it "the most important initiative GE has ever undertaken." The purpose of Six Sigma is to link internal processes and systems management with the requirements of the end customer.
Focus on Engaging People and Changing
Once you know which few vital factors to focus on, you can make improvements that yield dramatic results. What is the 30-second elevator pitch that explains Six Sigma?” My answer went like this: “Six Sigma is a problem-solving technology that uses your human assets, data, measurements, and statistics to identify certain critical factors to reduce waste and defects while increasing customer satisfaction, profit, and shareholder value. .”
Not Just Statistics, but Cultural Changes
A black belt performs Six Sigma analysis and collaborates with others (often teams) to implement improvements. The average black belt improvement project results in a return on operating income of approximately $175,000.
Six Sigma Applied
In the Define phase, Greg determined that the goal of the project was to reduce the time to approve a loan to two days. After the process mapping was completed, the components were further broken down into several vital inputs to the Analysis.
What Six Sigma Is Not
Six Sigma permeates departments, functional groups, and all levels of management, changing the views and practices of everyone in the organization. Six Sigma projects are selected to reduce or eliminate waste, which translates into real money.
Manager’s Checklist for Chapter 1
We started this chapter with an important quote - "Knowledge is power." Six Sigma helps you identify what you don't know, suggests what you should know, and helps you reduce mistakes that cost time, money, opportunities, and customers. Six Sigma allows you to achieve the constancy of purpose that is the secret of success by focusing your efforts on understanding the variation in your processes and the errors that arise from it.
Why Do
Six Sigma?
Money
Customer Satisfaction
While it's simplistic to say, "The customer is always right," it's a good thing to focus on meeting customer expectations — and then lose business altogether after a while if you don't. An important step in implementing improvements that matter to customers is determining which processes add value and which do not – from the customer's perspective.
Quality
Perhaps one aspect is better with Alpha Savings and Loans, another with Big Money Loans and another with Consumer Loans.
Impact on Employees
The more employees know about Six Sigma techniques and tools and the more you encourage them to think critically about processes, the more capable they become. That competency not only helps your company, but also makes employees more valuable in the job market—an increasingly important consideration.
Growth
Competitive Advantages
Are You and Your Company Ready?
You and the other managers in your company need to be more like the pig and less like the chicken. To determine if your company is ready for Six Sigma, you need to ask some key questions.
The Correlation Between Quality and Cost
Are you ready to start looking at how much you spend fixing mistakes - the price of poor quality. By asking such key questions, you can assess whether your company is ready to determine the impact of defects and reduce the costs of poor quality and cycle time.
Manager’s Checklist for Chapter 2
When you can measure what you are talking about and express it in numbers, you know something about it. Simply put, if you don't have metrics, you can't make progress because you don't know where you are.
Setting Business Metrics
If you can understand them, you can correct, control and improve them and thus reduce costs while improving the quality of your results. Ultimately, managers and executives must calculate profits and losses, cost of goods or services sold, and return on investment.
A Little Statistics
The average difference between any value in a set of values and the average of all values in that set. This statistic is a measure of the variation in the distribution of values. If one or both control limits are outside the specification limits, then the procedure.
Criteria for Business Metrics
This brings to mind the proverb: "The height of insanity is doing things the same way and hoping for a different result." Driving would be more difficult if the dashboard had too many indicators. The same is true with many metrics.
What Is the Cost of Poor Quality?
Financial Linkage of Metrics and Results
When you have established your foundations, you understand the current state of your processes, you know where you are. At this point, you know which processes you want to compare and you have your metrics.
Keeping Your Process Capability
The first thing the company had to do was set a new short-term direction to get to a minimally acceptable level of performance. At that point, the company was ready to ask more search questions or, in other words, to set up metrics.
Manager’s Checklist for Chapter 3
By maintaining and monitoring that performance, you keep the value and purpose of your Six Sigma efforts at the forefront of all your activities, today and in the future. Before you get started, pay attention to these important dos and don'ts: quick, simple reminders of how best to go about getting the most out of your Six Sigma initiative.
Implementing Six Sigma
So, now that you know the basics of Six Sigma, the reasons for using Six Sigma, and the essential business metrics that are the core of Six Sigma initiatives, it's time to practice what I've preached. From metrics to project selection, as long as you follow the basic principles expressed in the following two lists, you can ensure that your efforts are working at maximum capacity for sustainable results.
Getting Started: The Do’s
Empower your key human resources. Choose the right people to lead your Six Sigma project teams—and empower those key players. Implementation partner An external expert engaged in the introduction, training and support of your Six Sigma initiative.
Getting Started: The Don’ts
Controllers play an important role and must be included in your Six Sigma initiative from the start. However, Six Sigma is not just a statistical exercise; it uses such metrics to produce undeniable results.
Readying the Organization
We will continue to train participants. Figure 4.1. Sample letter of introduction to Six Sigma. We validate the data collected through the measurement phase of the Six Sigma DMAIC model.
Planning
Your goal in training Black Belts is to produce technical leaders, power users and teachers of Six Sigma. These are formal meetings where you, other champions, senior leaders, and your external consultant come together to discuss the progress of your Six Sigma initiative.
What to Expect from Outside Consultants
Ask for proof of their claims: Request references and current case studies from bona fide customers. You don't want an anecdotal discussion; you want to see the actual connection with the client's results.
Manager’s Checklist for Chapter 4
It takes courage to implement it, to use the Six Sigma techniques and tools, to persevere, to make changes. The success of Six Sigma depends on the people responsible for implementing it.
Roles and
You cannot find that courage in a method; you must encourage and promote it in the people who use Six Sigma. Dennis Sester, senior vice president of Motorola Service, put it very succinctly: “Six Sigma is not a product you can buy.
Responsibilities
However, it is important to note here that not everyone is designated for full Six Sigma responsibilities. You need the right mix of the right talent to refocus on Six Sigma projects.
Key Players
Six Sigma cannot be managed on the side; it is a full-contact sport that sets new rules and aims for much higher results. You need to choose well who will lead your projects, work in teams and track the goal using various Six Sigma tools such as metrics and other statistical measurements.
Executive Leaders
It is important for Six Sigma to be a company-wide initiative: that point cannot be overstated. Managers must actively show trust – not only in the Six Sigma method, but also in the people tasked with making it work.
Champions
This is the stuff of a good champion: removing obstacles and sending a clear signal that he and upper management are aligned with and committed to Six Sigma. The champion does whatever it takes to support the black belts. Champions must thoroughly understand the strategy and discipline of Six Sigma and be able to educate others about its tools and implementation.
Master Black Belt
By reading this book, you are taking a very important first step as a Six Sigma champion. A master black is an invaluable asset as you begin your Six Sigma initiative—coordinating and collaborating with you and upper management, advising and training black belts, and ultimately keeping you—the champion—focused on what's important in project selection and Six Sigma implementation.
Black Belts
Green Belts
Selecting Black Belts
They have the intelligence and interest to learn how to apply the Six Sigma tools. It takes certain qualities to be a black belt; training develops these qualities, but it cannot create them.
Manager’s Checklist for Chapter 5
You want to maximize your ROI in every way possible, so it's essential that you choose the right people for these roles that are central to Six Sigma. Now you know the roles and responsibilities of Six Sigma, here's the meat of the matter – the steps to implement Six Sigma.
The Core of Six Sigma
As you implement the core Six Sigma methodology, you will be armed with the tools that enable you to identify, correct and control the critical-to-quality (CTQ) elements that are so important to your customers and the reduce cost of poor quality (COPQ) ). The tools we don't explain here we'll cover in chapter 7.) Once you've started implementing the method full-time with you.
The DMAIC Method
As you know from the previous chapters, Six Sigma involves a lot of statistics and equations - but don't let that throw you off. Six Sigma is not just a statistics program; rather, it shows you how to use statistics and.
D—Define Phase
When you map out these factors, you can focus your efforts where the impact and returns are greatest. You can now move on to actually solving the problem with the remaining four steps of the method.
M—Measure Phase
The R&R gauge measures how you measure, so you know all aspects of your measurement systems are working properly and you're getting the most value for your efforts. It measures how you measure, so you know your systems are measuring accurately and appropriately.
A—Analyze Phase
Now that you and your teams know what the most important factors are, it's time to move on to the analysis phase. Once you have a clear understanding of the critical factors likely to cause the most variation, you're ready to move on to the next stage: Improve.
I—Improve Phase
Once you've completed this documentation, you'll have the critical information in hand that pinpoints the few vital factors, the rate of impact of each, and the next corrective actions. Among these we identify the few vital factors that influence and determine almost every aspect of a process.
C—Control Phase
When tagging luggage, two operators use the same printer at the check-in desk. They get busy, long lines form, and they have to work faster. What happens. Once you've completed this documentation, you'll have the critical information in hand that pinpoints not only the essential few factors and the rate of effect of each of them, but also what specifically you're going to do to sustain the gains made. .
The Power and Discipline of the Sequence
Manager’s Checklist for Chapter 6
In the final phase, Control, you "maintain the gains," focusing on maintaining the improvements you've made to your processes.
Management Roles
Quick Overview of Six Sigma Tools
The general methodology of Six Sigma is implemented using a specific set of statistical tools at each stage. These tools are the key to unlocking the information that will provide the answers you need to improve performance.
Your Tool Map
As both the manager and champion of the project, you are in a unique leadership capacity. Nowhere is this clearer than when statistical tools come into play - you need to bring the critical participants together, analyze their investigations, provide feedback on the results, and above all keep the path clear and the goal in sight.
Warm-up Tools
The next basic statistical tool for understanding your 200 data points is the median. This is the center point in our series of data points. Here's how we can use a histogram to represent. the 200 data points in our sample of calls.
Key Tool #1: Process Mapping
Once you've mastered the basic warm-up tools, you can choose from a selection of more advanced, key tools that will be essential in finding defects and quantifying them in hard, scientific terms. Once you know all the inputs and factors, you can designate them as external or internal and determine whether their effect is good or bad.
Key Tool #2: The XY Matrix
You can use this graphical tool to identify the relationship between the problem and the possible causes of the problem. Team members then rate the inputs on a scale of one to 10 based on their importance to the customer.
Key Tool #3: Measurement Systems Analysis
With the XY matrix, you are trying to prioritize what people think and believe about a given situation. The R&R meter study presented in Chapter 6 ensures that you are measuring what you think you are measuring.
Key Tool #4: Process Capability Tool
Pareto Chart A representation of the relative importance of process causes or defects, based on Italian economist Vilfredo Pareto's rule of thumb that 80% of all problems are due to 20% of the causes (known as the Pareto principle or the 80/20 principle). In terms of Six Sigma, this rule of thumb generally means that 80% of the problems are the result of 20% of the causes.
Key Tool #5
As long as you know what the study's findings mean in terms of business benefits, you can take action to achieve them. An axiom introduced by Vilfredo Pareto, the Italian economist who devised the 80/20 principle, states that 20% of a group of agents or factors account for 80% of the results.
Multivariate Study
You can use Pareto charts to identify factors in a process that have the greatest cumulative effect, allowing you to focus on a few key factors. In your role, you will continue to manage team participation, striving for full engagement, breaking down barriers and expediting resolution.
Key Tool #6: Hypothesis Testing
By acting this way, you'll be the first to know the critical variance variables and can direct short-term control as you devise long-term solutions.
Key Tool #7: Failure Mode Effect Analysis
The FMEA then estimates a "risk priority" number for the defect, to assess the severity and urgency of that defect. You can use FMEA to correct any failure mode as you lead your team.
Key Tool #8: Design of Experiments
If you need to repeat each test several times, the traditional approach takes a lot of time and money. DOE saves time and resources - if you don't try to cut corners by setting it up.
Key Tool #9: Control Plan
Control chart. The control chart is the fundamental tool of statistical process control: it indicates the range of variability. A typical control chart (note: one point falls below the lower control limit, indicating a special cause variation).
Manager’s Checklist for Chapter 7
There are nine key statistical and sequential scientific tools used in the Six Sigma methodology. It's easy to be enthusiastic and feel ready to apply Six Sigma virtually everywhere you look, but not every business scenario warrants the "project" label.
Selecting
As your Six Sigma initiative takes off and black belts are ready to work on projects, the big question that remains is deciding how to choose the projects that will be most successful, that will deliver the maximum result. Once you have narrowed the field and selected the projects that best fit Six Sigma and your criteria, you must present your plans for senior-level staff to review and approve.
Six Sigma Projects
While this may seem obvious, it's important to remember why you're taking on the job. This way, you get their buy-in and support for the project, and they get a clear sense of what the goal is and exactly how you and your black belts will pursue it.
Project Criteria
You should prioritize projects that address one or more factors that are critical to your client's expectations of quality, cost, and delivery. This is essentially a matter of risk assessment, taking into account factors such as complexity, uncertainty of project completion and barriers.
Defect Project Selection Opportunities
After asking and answering these two basic questions, you can then set a timeline for your project - usually no more than six months. In contrast, a weak problem statement would be: "Our product yield levels are too high because of product A and will be reduced by analyzing the first- and second-level Pareto charts." Why is this problem statement weak?
Pareto Selection Method
This is where you can also sort out the non-value added activities and determine which ones should go. This is the third part of the analysis, as represented in Pareto chart for OP-40 per step (Figure 8-3).
Good vs. Bad Projects
Look at it this way: it's not hurting you, but you're still fixing it. Second, a project can be considered poor in terms of the effort it requires.
Successful Project Characteristics
When you apply a top-down Six Sigma approach and address your strategic goals and customer expectations, you can arrive at the operational factors that have the greatest impact. Like anything else worth doing, it takes time and training to learn how to best select Six Sigma projects.
Manager’s Checklist for Chapter 8
Increasing the competitiveness of your customers is a key sign that you are successfully implementing Six Sigma. Six Sigma is underway; it's an ongoing, "living" methodology that should continue as long as your business lasts.
How to
The best Six Sigma projects don't start inside the company, but outside it, focused on answering the question: How can we make the customer more competitive. You don't invest in Six Sigma and don't take the time to train people, select projects and then zoom in on the costs of poor quality.
Sustain Six Sigma
Of course, individual projects that solve specific problems have start and end times, but as part of your Six Sigma commitment, you need to start new projects, get more dollars, raise more dollars. No matter how difficult it may be, you must strive to keep Six Sigma alive.
Basic Infrastructure Requirements
In fact, it's the hardest thing to do—even harder than learning how to use all the statistical tools. It is important to share the lessons far and wide, not only to represent your success, but also to address similar issues elsewhere in the organization.
Communication Plan
Black belts also undergo a tool assessment, an investigation into whether or not they are using the tools correctly. As simple as it sounds, if you don't have a list of your backlog of projects, you'll have trouble keeping a profit.
Company Culture
However, you can minimize the losses by clearly communicating and committing to a specifically structured, incentive-based compensation plan for everyone involved in Six Sigma at any level. From managers to line workers, managers to support staff, the compensation plan is a proven tool for keeping the Six Sigma fire burning in the organization.
Signs of Success
Think about it: how can you avoid a "brain drain" where you lose the entire investment in Six Sigma personnel. To do this, we must ensure that Six Sigma remains an active, fully focused part of the company's mission and strategy.
Company Cycles
Partnering with suppliers is an excellent source of improvement and savings; by equally sharing techniques, tools and dollar savings, both parties benefit enormously. See how and where you can do the same with your key suppliers, because it's a great example of how to pick low-hanging fruit.
Reinforcement and Control
Status Check
The following 21 questions are an excellent guide to evaluating the sustained effectiveness of your Six Sigma initiative. Which database will you use in life to track your Six Sigma projects.
Manager’s Checklist for Chapter 9
The proof that Six Sigma works is its bottom line financial impact—you can't misunderstand the dollar savings. You need to create and maintain a good communication plan to keep everyone current on your Six Sigma initiative.
Six Sigma
159 There is one rule for industrialists and that is: Make the best quality of goods possible at the lowest possible cost, paying the highest possible wages. Is it possible to provide the best quality goods at the lowest cost and compensate people fairly.
Proof Positive
So, now that you have read about the basic directions of Six Sigma, what do you think. Furthermore, from the case studies to each job description and to the next level of Six Sigma, you will see that all the information you have read about in the preceding chapters comes together coherently and effectively.
Real Final Reports
Since all projects are not created equal, each final report must address the unique concerns and conclusions of each within these major sections and their subsections. As you carry out any project, you can include critical information that you and the project team gathered to justify the project's goals and demonstrate how and why you reached your conclusions.
Case Studies
A” is for Analyze. The team set targets for order processing times for each phase of the ordering process. M” is for Measure. The black belt and her team conducted a meter R&R (repeatability and reproducibility) study which showed that the existing measurement system variation contributed to 17.5% of the total variation measured on the smallest dimension.
Training Agendas
Delving into all the control tools, black belts are now going through the final phase of training. In addition, the green belts also receive training in the methodology, so that they can assist and support the black belts.
Job Descriptions
Many companies have heard this message and are clearly facing the Six Sigma challenge. Managerial and technical knowledge required to facilitate the leadership, implementation and deployment of Six Sigma. Ability to understand basic concepts and translate them into realistic implementation action plans.
Design for Six Sigma
DFSS is based on the idea that when you design six sigma quality early in the development of a new product, you are likely to maintain that gain as customers adopt that product. Again, the success of this Six Sigma branch requires the active participation of management.
Manager’s Checklist for Chapter 10
An extension of the methodology, Design for Six Sigma, helps you further improve and control product launches by designing Six Sigma quality directly into your development processes. DPMO (defects per million opportunities) and metrics, 49-50 and sigma levels, 4 sigma measured as, 2-3 six sigma, 2.
