August 14, 2015

What is Six Sigma ? Objectives Fundamental Beliefs Benefits

What is Six Sigma? Different type of sigma, 6 sigma, 4 sigma 3 sigma, 2 sigma, 1 sigma Objectives of Six Sigma Six Sigma History Fundamental Beliefs -> Everything is a process Why Six Sigma works Benefits Example of Six Sigma:Business systems and processes

What is Six Sigma?

Sigma-the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data.

Six sigma is a highly disciplined process that focuses on developing and delivering near perfect product and services consistently Six sigma is also a management strategy to use statistical toolsand project work to achieve breakthrough Profitability and quantum gains in quality

In a normal distribution, 99.73% of measurements will fall within +/-3 sigma 99.99966% will fall within +/-4.5 sigma With 1.5 sigma mean shift, we need specification limits=mean+/-6 sigma to
achieve 99.99966% within spec.

Six Sigma performance implies a level of process and product performance of no more than 3.4 defects per million opportunities

type of sigma

Objectives of Six Sigma

•Develop conceptual understanding of important aspects of six sigma

•Develop basic skills in statistical data analysis

•Develop basic skills in problem definition and analysis by using six sigma tools

•Covers the body of knowledge for certified six sigma black belt

•Master the basic skills and knowledge base for green belts

Six Sigma History

•Begun by Motorola in 1978

•Six Sigma was picked up by GE and others.

•The Six Sigma Academy was formed and significantly advanced the tools and methods.

•Six Sigma spreads to other companies worldwide.

•Lean techniques were integrated in Six Sigma


Fundamental Beliefs -> Everything is a process

Input ( Man, Machine, Material) ( Input is also a process => Company (Which itself is a process) -> Output ( Product, Services etc ) (This is also a process)

Key Points:

In business world, there are only products and processes, actually, products are also processes, because the product usage is also a process

Do the right thing, and do things right

Design the right product, the right process Consistent product, consistent process

Business systems and processes
Business system: a business system is defined as a series of actions, activities, elements, components, departments or processes that work together for a definite purpose. System
effectiveness is a measure of the degree to which a system can be expressed to achieve a set Of specific (mission) requirements, that may be expressed as a function of performance
(availability, dependability and capability). Subsystems are major divisions of a system that are still large enough to consist of more than one process. Process:“a combination of inputs, actions and outputs”. “a series of activities that takes an input, adds value to it and produces an output for a customer”

Why Six Sigma works?  ( Benefits) 
•Bottom line results
•Senior management is involved
•A disciplined approach is used (DMAIC)
•Short project completion time
•Clearly defined measures of success
•Infrastructure of trained individuals (black belts, green belts)
•Customers and processes are the focus
•A sound statistical approach is used

Example of Six Sigma:


If major business problems are:
•There are quality issues
•There is excessive variation
•There are complex problems
•There are challenging root cause identifications
•There are numerous technical considerations
Then, Six Sigma techniques can be used to:
•Minimize variation
•Apply scientific problem solving
•Utilize robust project chartering
•Focus on quality issues
•Employ technical methodologies

When Six Sigma should be used and when it should not be used
•Pure Six Sigma approach achieves the best results if it is implemented by high performance organizations
•Medium and low performance companies should consider more ‘basic’ techniques to pick up ‘low hanging fruit’
A decision on Six Sigma might be negative if the following conditions exist
•The company already has a strong, effective performance and process improvement effort in place
•Current changes are already overwhelming the company’s people and resources
•The potential gains aren’t sufficient to finance the investments necessary to support Six Sigma