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Six sigma

The document provides an overview of Six Sigma, including: - Six Sigma aims to reduce defects and variation in processes by focusing on outputs that are within 6 standard deviations from the mean. - It was introduced at Motorola in 1986 and uses statistical tools and a DMAIC methodology for continuous improvement. - DMAIC stands for Define, Measure, Analyze, Improve, Control and is an iterative problem-solving approach. DMADV is for creating new processes. - Key Six Sigma roles include Champions, Master Black Belts, Black Belts and Green Belts. A variety of statistical tools can be used including flow charts, histograms, control charts and Pareto charts.

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Production And Operation Management SIX SIGMA
WHAT IS SIGMA ?  A term (Greek) used in statistics to represent standard deviation from mean value, an indicator of the degree of variation in a set of a process.  Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance
What is Six Sigma?  Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service.  Wise application of statistical tools within a structured methodology  Repeated application of strategy to individual projects
What is Six Sigma?  In 1986, Bill Smith, a senior engineer and scientist at Motorola, introduced the concept of Six Sigma to standardize the way defects are counted.  Six Sigma provided Motorola the key to addressing quality concerns throughout the organization, from manufacturing to support functions. The application of Six Sigma also contributed to Motorola winning the Malcolm Baldrige National Quality award in 1988.  Since then, the impact of the Six Sigma process on improving business performance has been dramatic and well documented by other leading global organizations, such as General Electric, Allied Signal, and Citibank.
Six Sigma Methods Production Design Service Purchase HRM Administration Quality Depart. Management IT Where can Six Sigma be applied?
WHY SIX SIGMA ?  Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects  The Current business environment now demands and rewards innovation more than ever before due to:  Customer Expectations  Technological Change  Global Competition
Sigma Levels Screenshot_2015-03-09-18-13-38.png
SIX SIGMA METHODOLOGY (It takes money to save money)  BPMS  Business Process Management System  DMAIC  Six Sigma Improvement Methodology  DMADV  Creating new process which will perform at Six Sigma
BUSINESS PROCESS MANAGEMENT SYSTEM  BPM strategies emphasize on process improvement and automation to derive performance.  Combining BPM strategies with sigma six is most powerful way to improve performance.  Both strategies are not mutually exclusive but some companies produced dramatic results by combining them.
WHAT IS DMAIC? (Define,Measure,Analyse,Improve.Control)  A logical and structured approach to problem solving and process improvement.  An iterative process (continuous improvement)  A quality tool which focus on change management style.
PHASES Phases of Six Sigma are:  Define specific goals to achieve outcomes, consistent with customers demand and business strategy  Measure reduction of defects  Analyze problems ,cause and effects must be considered  Improve process on bases of measurements and analysis  Control process to minimize defects
WHAT IS DMADV?  Acronym for:  Define the project  Measure the opportunity  Analyze the process options  Design the process  Verify the performance
TOOLS & TECHNIQUES  7QC tools  Check Sheets (collect data to make improvements)  Pareto Charts( define problem and frequency)  Cause and effect diagram (Identify possible causes to solve problem)  Histogram (Bar charts of accumulated data to evaluate distribution of data)  Scatter diagram (plots many data points and pattern between two variables)  Flow Chart (Identify unwanted steps)  Control charts (Control limits around mean value)
Pareto chart ( define problem and frequency)  A pareto chart is used to graphically summarize and display the relative importance of the differences between groups of data.
What Questions the Pareto Chart Answers  What are the largest issues facing our team or business?  What 20 percent of sources are causing 80 percent of the problems (80/20 Rule)? 80/20 Rule Applications • 80 percent of process defects arise from 20 percent of the process issues. • 20 percent of your sales force produces 80 percent of your company revenues. • 80 percent of customer complaints arise from 20 percent of your products or services.
Cause and effect diagram (Identify possible causes to solve problem)  It is particularly useful in a group setting and for situations in which little quantitative data is available for analysis.
Histogram (Bar charts of accumulated data to evaluate distribution of data)  histogram is used to graphically summarize and display the distribution of a process data set.
What Questions the Histogram Answers  What is the most common system response?  What distribution (centre , variation and shape) does the data have?  Does the data look symmetric or is it skewed to the left or right?
Scatter diagram (plots many data points and pattern between two variables)  A scatter plot, also called a scatter diagram or a , is a basic graphic tool that illustrates the relationship between two variables.  It is a tool used to visually determine whether a potential relationship exists between an input and an outcome.
Flow Chart (Identify unwanted steps)  A flowchart is a type of diagram that represents an algorithm, workflow or process, showing the steps as boxes of various kinds, and their order by connecting them with arrows. This diagrammatic representation illustrates a solution model to a given problem.  It represents the entire process from start to finish
Flow Chart Symbol
Control charts (Control limits around mean value)  Control charts have two general uses in an improvement project.  The most common application is as a tool to monitor process stability and control.
KEY ROLES FOR SIX SIGMA Six Sigma identifies several key roles for its successful implementation:  Executive leadership  Champions  Master Black Belts (Identify projects& functions)  Black Belts (Identify non value added activities)  Green Belts ( works on small projects ) Top Bottom
Six Sigma Certificate
USAGE OF SIX SIGMA
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Six Sigma and Financial Services