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An Introduction to Six Sigma Quality

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Title: An Introduction to Six Sigma Quality


1
An Introduction to Six Sigma Quality
  • Presented by Darlene Mackay, CSQA
  • Quality Assurance Institute

2
Presentation Agenda
  • 1. What is Six Sigma Quality?
  • 2. Why would a company adopt Six Sigma?
  • 3. Is there a roadmap to Six Sigma?
  • 4. What are the challenges?
  • 5. What are the rewards?

3
1. What is Six Sigma Quality?
  • Originated at Motorola in the early 80s
  • Helped Motorola win the 1988 MBNQA
  • Is a methodology for disciplined quality
    improvement
  • Juran principles apply
  • Doesnt use Quality in the name
  • With the inclusion of Six Sigma into a sound
    business system, the major ingredients of a Total
    Quality Management System are usually in place
  • Uses a modified Deming Wheel (PDCA)

4
JURAN SAID
  • All quality improvement occurs on a
    project-by-project basis and in no other way.

5
What is Six Sigma Quality?
  • Six Sigmas goal is the near elimination of
    defects from any process, product, or service.
  • The numerical goal is 3.467 defects per million
    opportunities.
  • Juran once concluded that in the US, close to 1/3
    of the work done consisted of redoing what had
    already been done.
  • Depending on the industry, this Cost of Poor
    Quality (COPQ) could be 20 to 40 of total
    effort!

6
Six Sigma Process Capability
SIGMA DPMO COPQ
CAPABILITY 6 sigma 3.4
lt10 of sales World Class 5 sigma 230
10 to 15 of sales 4 sigma 6200
15 to 20 of sales Industry average 3 sigma
67,000 20 to 30 of sales 2 sigma
310,000 30 to 40 of sales
Noncompetitive 1 sigma 700,000
7
What is Six Sigma Quality?
  • Strategy includes
  • Measure
  • Analyze
  • Improve
  • Control
  • Improvement projects must be integrated with the
    goals of the organization.
  • Six Sigma uses a divide and conquer approach as
    opposed to Continuous Process Improvement.
  • Implementation is top-down. CEO drives, and
    executive management provides the Champion for
    each project.
  • GEs implementation is often the de facto model
    for implementation.
  • Uses concept of belts for levels of competency
    in Six Sigma implementation
  • MBB Master Black Belt
  • BB Black Belt
  • GB Green Belt

8
An Example
  • Six Sigma Project Engineering Changes
  • Define Large number of changes from client
    after approving engineering design. Schedule
    slipping.
  • Measure Number of changes, time involved in
    changes, compliance to critical path schedule.
  • Analyze No clear authority on client team to
    establish scope, any of client team could make
    changes, verbal communication of changes,
    conflicting changes by client team members.
    Language issues between client and engineers.
  • Improve Regular engineering/client meetings
    where topics include scope for each section
    and desired objective, known limitations defined,
    unclear requirements were questioned and options
    discussed. Written plan signed by client
    representative and engineering lead. Change
    requests in writing and signed by client
    representative. Changes decrease by factor of
    4.7 and schedule met.
  • Control Change requests all in writing. Shared
    approach with other disciplines on project.
  • From www.adamssixsigma.com/Sample_Projects/six_s
    igma_projects.htm

9
What is Six Sigma Quality?
  • All Six Sigma projects are evaluated rigorously
    for financial impact.
  • Most important is the financial cumulative impact
    of all projects upon the companys bottom line.

10
Some Results
  • Motorola 10 years 11 Billion Savings
  • Allied Signal - 1.5 Billion estimated savings
  • General Electric started efforts in 1995
  • 1998 1.2 Billion less 450 Million in costs
    net benefits 750 Million
  • 1999 Annual Report more than 2 Billion net
    benefits
  • 2001 6,000 projects completed 3 Billion in
    savings

11
Six Sigma according to GE
  • A highly disciplined process that helps us focus
    on developing and delivering near-perfect
    products and services. The word Six Sigma is a
    statistical term that measures how far a given
    process deviates from perfection. The central
    idea behind Six Sigma is that if you can measure
    how many defects you have in a process, you can
    systematically figure out how to eliminate them
    and get as close to zero defects as possible.
    Six Sigma has changed the DNA at GE it is the
    way we work in everything we do and in every
    product we design.

12
2. Why would a company adopt Six Sigma?
  • Concept has been around for 16 years isnt just
    a fad.
  • Six Sigma is the latest name for a comprehensive
    set of philosophies, tools, methods, and
    fundamental concepts.
  • Continues to evolve at all organizational levels
    from CEO and CFO to the Black Belts and Green
    Belts.
  • Has shown the most endurance and return on
    investment of any such program till now.

13
The Roadmap to Six Sigma
North
East
West
South
Usually has many twists and turns!
14
A Road Map for Six Sigma
  • Appoint a Champion
  • Select a Cross-functional team
  • Develop quantifiable goals
  • Develop an implementation plan
  • Establish a training program
  • Address data collection requirements and issues
  • Develop a change control and maintenance program
  • Coordinate your road map
  • Article by John M. Gross, ASQ, Quality Progress
    Magazine, November 2001

15
4. What are the Challenges of Six Sigma?
  • The perception of Sick Sigma
  • Culture change
  • Understanding the DFSS (Design For Six Sigma)
  • It is not a quick fix nor a recipe.
  • Consultants cant make it happen.
  • Training especially management level
  • Takes careful preparation and a commitment to the
    foundational change efforts required.
  • Statistical analysis is not generally part of the
    engineering discipline in most IT shops.

16
What are the Challenges of Six Sigma?
  • Reliability of data from the field.
  • People must not fear giving bad news.
  • Design is critical and yet many IT organizations
    continue to go straight from poor requirements
    into coding without the benefits of even one
    design review.
  • Implementation tends to be uneven and lapses
    occur frequently.
  • Not everything has to be Six Sigma this was our
    downfall on reengineering efforts!
  • Lack of discipline and accountability.

17
5. What are the Rewards ofSix Sigma?
  • Improved reliability and predictability of
    software products and services.
  • Increased value to the customers and
    shareholders.
  • Improvements in organizational morale.
  • Increased marketplace viability.
  • Organizational recognition.
  • Significant reduction in defects.
  • Institutionalization of a process mindset.

18
Some References
  • Joseph M. Juran Jurans Quality Handbook
  • (McGraw-Hill, 1999)
  • Mikel J. Harry Six Sigma, A Breakthrough
    Strategy for Profitability (Quality Progress, May
    1998)
  • William J. Hill Six Sigma at Allied Signal,
    Inc. (Presentation at 1999 QP Research
    Conference, May 1999)
  • Jack Welch Six Sigma, the GE Way
  • Six Sigma Forum Magazine www.asq.org/pub/sixsigm
    a
  • Your favorite Search Engine search on Six
    Sigma
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