© All Rights Reserved TreQna 2005 Six sigma Orientation

© All Rights Reserved TreQna 2005 expectations What is Quality? Know Six Sigma Awareness with respect to origin and history of Six Sigma. The utility and benefits Introduction to Six Sigma as methodology The Six Sigma organization

© All Rights Reserved TreQna 2005 What is Quality?

© All Rights Reserved TreQna 2005 Evolution of Quality Historically Proactive Quality Create process that will produce less or no defects Contemporary Reactive Quality Quality Checks (QC) - Taking the defectives out of what is produced

© All Rights Reserved TreQna 2005 Segments in Quality MethodologiesStandardsCapability Models Six Sigma Lean ISO 9000, ISO etc. COPC Malcolm Baldrige eSCM CMM CMMI Scientific way to improve capability? Sharing Benchmarked practices- Standardizing Best practices to build capability

© All Rights Reserved TreQna 2005 What is Six Sigma? It is a methodology for continuous improvement It is a methodology for creating products/ processes that perform at high standards It is a set of statistical and other quality tools arranged in unique way It is a way of knowing where you are and where you could be! It is a Quality Philosophy and a management technique Six Sigma is not: A standard A certification Another metric like percentage

© All Rights Reserved TreQna 2005 The term sigma is used to designate the distribution or spread about the mean (average) of any process or procedure. For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction. Two Meanings of Sigma

© All Rights Reserved TreQna 2005 Path to Six Sigma 4 Sigma 6,210 Defects 2 Sigma 308,537 Defects 3 Sigma 66,807 Defects 5 Sigma 233 Defects 6 Sigma 3.4 Defects Sigma levels and Defects per million opportunities (DPMO)

© All Rights Reserved TreQna 2005 What it means to Six Sigma Is 99% (3.8 ) good enough? % Good – At 6 20,000 lost mails per hour7 lost mails per hour Unsafe drinking water almost 15 minutes each day One minute of unsafe drinking water every seven months 5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week 2 short or long landings at most major airports daily One short or long landing at major airports every five years 200,000 wrong drug prescriptions each year 68 wrong drug prescriptions each year Example quoted from GE Book of Knowledge - copyright GE

© All Rights Reserved TreQna 2005 The term Six Sigma was coined by Bill Smith, an engineer with Motorola Late 1970s - Motorola started experimenting with problem solving through statistical analysis Motorola officially launched its Six Sigma program Origin of Six Sigma Motorola the company that invented Six Sigma Motorola

© All Rights Reserved TreQna 2005 Jack Welch launched Six Sigma at GE in Jan, /99 - Green Belt exam certification became the criteria for management promotions 2002/03 - Green Belt certification became the criteria for promotion to management roles The Growth of Six Sigma GE the company that perfected Six Sigma GE

© All Rights Reserved TreQna 2005 The GE model for process improvements The Growth of Six Sigma Define Measure Measure Analyze Analyze Improve Improve Control Control Combination of change management & statistical analysis

© All Rights Reserved TreQna 2005 The Growth of Six Sigma

© All Rights Reserved TreQna 2005 BPMS Business Process Management System BPMS DMAIC Six Sigma Improvement Methodology DMAIC DMADOV Creating new process which will Six Sigma DMADOV Three Methodologies of Six Sigma

© All Rights Reserved TreQna 2005 BPMS Business Process Management System BPMS

© All Rights Reserved TreQna 2005 To understand the process; its mission, flow and scope To know the customers and their expectations To identify, monitor and improve correct performance measures for the process The Need of BPMS

© All Rights Reserved TreQna 2005 The Methodology Define Process Mission Map Process VOC and VOP Build PMS Develop Dashboar ds Identify Improve ment Opportun ities Define purpose of the process, its goal and its boundaries Identify Critical to Quality and Critical to process Visual representation of performance Map process steps, identify input/ output measures MSA, DCP, indicators and monitors Service excellence and process excellence The DMAIC cycle

© All Rights Reserved TreQna 2005 DMAIC Six Sigma Improvement Methodology DMAIC

© All Rights Reserved TreQna 2005 A logical and structured approach to problem solving and process improvement An iterative process (continuous improvement) A quality tool with focus on change management What is DMAIC ?E Effectiveness =Q Quality Improvement xA Acceptance

© All Rights Reserved TreQna 2005 The Approach Practical Problem Statistical Problem Statistical Solution Practical Solution

© All Rights Reserved TreQna 2005 D Define M Measure A Analyze I Improve C Control Identify and state the practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution Methodology

© All Rights Reserved TreQna 2005 VoC VoC - Who wants the project and why ? The scope of project / improvement Key team members / resources for the project Critical milestones and stakeholder review Budget allocation Define D Define M Measure A Analyze I Improve C Control

© All Rights Reserved TreQna 2005 Ensure measurement system reliability Prepare data collection plan Collect data - Is tool used to measure the output variable flawed ? - Do all operators interpret the tool reading in the same way ? - How many data points do you need to collect ? - How many days do you need to collect data for ? - What is the sampling strategy ? - Who will collect data and how will data get stored ? - What could the potential drivers of variation be ? Measure D Define M Measure A Analyze I Improve C Control

© All Rights Reserved TreQna 2005 Understand statistical problem Baseline current process capability Define statistical improvement goal Identify drivers of variation (significant factors) Analyze D Define M Measure A Analyze I Improve C Control

© All Rights Reserved TreQna 2005 Root Cause Analysis (fish bone) A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process Visualize the potential relationship between causes which may be creating problems or defects Problem Backbone Primary Cause Secondary Cause Root Cause Analyze – Identify Drivers of Variation

© All Rights Reserved TreQna 2005 Control – Impact Matrix A visual tool that helps in separating the vital few from the trivial many Vital Few High Control – High Impact Cost Ineffective Low Control – High Impact Cost Ineffective High Control – Low Impact Trivial Many Low Control – Low Impact Control Impact Analyze – Identify Drivers of Variation

© All Rights Reserved TreQna 2005 Pareto Chart Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors) Analyze – Identify Drivers of Variation

© All Rights Reserved TreQna 2005 Process Map Analysis Visually highlights hand off points / working relationships between people, processes and organizations Helps identify rework loops and non value add steps Analyze – Identify Drivers of Variation

© All Rights Reserved TreQna 2005 Hypothesis Testing A statistical tool used to validate if two samples are different or whether a sample belongs to a given population Null Hypothesis (H o ) Null Hypothesis (H o ) is the statement of the status quo Alternate Hypothesis (H a ) Alternate Hypothesis (H a ) is the statement of difference Analyze – Identify Drivers of Variation One way ANOVA Regression Homogeneity of Variance Moods Median Chi-Square

© All Rights Reserved TreQna 2005 Map improved process Pilot solution Identify operating tolerance on significant factors Improve D Define M Measure A Analyze I Improve C Control

© All Rights Reserved TreQna 2005 Ensure measurement system reliability for significant factors Improved process capability Sustenance Plan - Is tool used to measure the input / process variables flawed ? - Do all operators interpret the tool reading in the same way ? - Statistical Process Control - Mistake Proofing - Control Plan Control D Define M Measure A Analyze I Improve C Control

© All Rights Reserved TreQna 2005 Control Plan Have the new operating procedures and standards been documented ? What Statistical Process Control (SPC) tools will be used to monitor the process performance ? Who will review the performance of the output variable and significant factors on closure of the project and how frequently ? What is the corrective action or reaction plan if any of the factors were to be out of control ? Control – Sustenance Plan

© All Rights Reserved TreQna 2005 Six Sigma Organization

© All Rights Reserved TreQna 2005 Six Sigma - Three Dimensions Tools Organization Methodology Process variation LSLUS L Upper/Lower specification limits Regression Driven by customer needs Enabled by quality team. Led by Senior Mgmt Define Measure AnalyzeImproveControl Process Map Analysis Pareto Chart

© All Rights Reserved TreQna 2005 The Quality Team Master Black Belt Black Belt Green Belt - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts -Backbone of Six Sigma Org -Mentor Green Belts - Full time resource - Deployed to complex or high risk projects -Backbone of Six Sigma Org -Mentor Green Belts - Full time resource - Deployed to complex or high risk projects - Part time or full time resource -Deployed to less complex projects in areas of functional expertise - Part time or full time resource -Deployed to less complex projects in areas of functional expertise

© All Rights Reserved TreQna 2005 Six Sigma – Career Option! Basic - Six Sigma Awareness Green Belt Projects Participate in Black Belt Projects Assist business functions with day to day activities Mentor/Train Green Belts Black Belt Projects Change Agents Work along with the business owners Mentor/ Train Black Belts Run Strategic projects More Strategic than tactical role Green Belt (GB) Black Belt (BB) Master Black Belt (MBB) Highly paid! Work like a Consultant! Huge demand in the industry! Overall…A high flying Career!!

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