Six sigma
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Six Sigma is a data-driven methodology for improving processes by reducing variability and defects. It was developed by Motorola in the 1980s and aims for near-perfect process outputs. The objectives of Six Sigma are to understand and reduce variation in processes. It uses various quality tools like cause-and-effect diagrams, control charts, and value stream mapping. A key benefit is increased business performance through stable and consistent processes. Establishing a no-blame culture is important for Six Sigma, with a focus on accountability, teamwork, and continuous improvement.
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Six sigma
- 1. SIX SIGMA Business Processes Overview History Benefits Objectives Value Stream Mapping(VSM) Culture
- 2. Business Processes A business process is an activity or set of activities that can accomplish a specific organizational goal. Business processes should have purposeful goals, be as specific as possible and have consistent outcomes. Most business processes will produce outputs that are defect free. However every business process will produce some number of outputs that are either considered to have defects or be defective. When a part contains a defect or is considered defective it has deviated from a standard which is tracked in six sigma.
- 3. Six Sigma - Overview Six Sigma is a disciplined and quantitative approach involving setting up a system and process for the improvement of defined metrics in manufacturing, service, or financial processes. Its a improvement system for existing process falling below specification and looking for incremental improvements. Six Sigma is a management methodology which allows companies to use data to eliminate defects in any process. Six Sigma is a strategy that gives organizations a structured means to improve business processes and solve problems.
- 4. What does the term mean? Six Sigma defined technically refers to achieving a performance level that is 6 rated, in other words producing no more than 3.4 defects per million opportunities. Sigma Used to denote variance from a mean oran average. Literally translated means Standard Deviation.
- 5. Six Sigma : History Bill Smith, Father of Six Sigma In the early and mid-1980s with Chairman Bob Galvin at the helm, Motorola engineers decided that the traditional quality levels measuring defects in thousands of opportunities didnt provide enough granularity. Instead, they wanted to measure the defects per million opportunities. Motorola developed this new standard and created the methodology and needed cultural change associated with it. Six Sigma helped Motorola realize powerful bottom-line results in their organization in fact, they documented more than $16 Billion in savings as a result of our Six Sigma efforts. Six Sigma has evolved over time. Its more than just a quality system like TQM or ISO. Its a way of doing business. As Geoff Tennant describes in his book Six Sigma: SPC and TQM in Manufacturing and Services: Six Sigma is many things, and it would perhaps be easier to list all the things that Six Sigma quality is not. Six Sigma can be seen as: a vision; a philosophy; a symbol; a metric; a goal; a methodology. We couldnt agree more.
- 6. Six Sigma - Benefits Increased Business Performance Reduced Defects Reduced Variation Improved use of Resources Stable and Consistent Processes Meet Customer Demands More Market Share and Capital Growth
- 7. Six Sigma : Objective(s) Skills to predict, prevent and control defects in a process. Skills to understanding of the elements of waste in a process. Skills to achieve sustainable quality improvement Skills to understand tools of process discovery. Skills to understand of variation in processes. Skills to understand how to reduce variation in processes and achieve predicted outcomes. Skills to identify, measure and analyze process potential.
- 8. Six Sigma : Quality Tools Mainly 7 Tools that are used for quality improvements in any business process Cause and Effect Diagram Check Sheet Flow Chart Histogram Pareto Diagram Control Chart Scatter Diagram
- 9. Six Sigma : Tools Tool Description Cause-and-effect diagram Identifies many possible causes for an effect or problem and sorts ideas into useful categories. Check sheet A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. Control charts Graphs used to study how a process changes over time. Comparing current data to historical control limits leads to conclusions about whether the process variation is consistent (in control) or is unpredictable (out of control, affected by special causes of variation). Histogram The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. Pareto chart Shows on a bar graph which factors are more significant. Scatter diagram Graphs pairs of numerical data, one variable on each axis, to look for a relationship. Stratification A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace stratification with flowchart or run chart).
- 10. Six Sigma : Measuring a Process via VSM In Six Sigma Process is measured via VALUE STREAM Mapping Verify or define priorities and team Accept or define charter Look at the waste Understand the current state Shape the future state Target the ideal state Reveal Action Plan Establish a value stream coach Announce and share Map everything
- 11. Six Sigma : Benefits of VSM Shows the entire flow of the value stream as it happens. Makes value and non value in a process visible. Helps plan improvements/Kaizen events. A value stream map shows material and information flows Helps us see the flow of activities from customer perspective.
- 12. Six Sigma : Culture Lean Six Sigma Culture focusses on Process over People where there is NO BLAME GAME
- 13. Six Sigma : Culture Tips for establishing a no blame game.. Create Positive Situations : Create positive situations for workers to think and feel empowered. Minimize Competition : Minimize the competition aspect of roles. Build a team culture. Define Accountability : Clearly define responsibilities and accountability. Train Employees : Develop and train employees regularly.
- 14. Six Sigma : Culture : How to start. Develop and Follow Standard Work Work Productively ; Minimize Waste Handle or Communicate Abnormalities Participate in Process Improvement Update/Train Work Standards Respect the Customer Act on Problems