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Six Sigma


Six Sigma Evolving Process to Achieve Better Quality Discussion Topics What is Six Sigma 99.9997%?!?!? Elements of Six Sigma Six Sigma Lingo Six Sigma Strategy DMAIC ... – PowerPoint PPT presentation

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Title: Six Sigma

Six Sigma
  • Evolving Process to Achieve Better Quality

Discussion Topics
  • What is Six Sigma
  • 99.9997?!?!?
  • Elements of Six Sigma
  • Six Sigma Lingo
  • Six Sigma Strategy
  • Case Study PB

What is Six Sigma?
  • A metric, methodology and philosophy.
  • 3.4 defects per million opportunities or being
    99.9997 defect free in process and product.
  • Measure how many "defects" are in a process then
    systematically figure out how to eliminate them
    and get as close to "zero defects" as possible.
  • Should be in in everything we do and in every
    product we design.

  • 3.4 million defects per opportunity
  • Whats the difference between 99 and 99.9997
  • 7 lost mail per hour instead 20000 per hour.
  • Unsafe drinking water for 2 minutes per year
    instead of 15 minutes per day.
  • 1 plane crash every 5 years instead 2 plane
    crashes annually.

Elements of Six Sigma
  • The Customer
  • The Process
  • The Employee

The Customer
  • Customers are the center of any companys
    universe they define quality. They expect
    performance, reliability, competitive prices,
    on-time delivery, service, clear and correct
    transaction processing and more. Our customers
    satisfaction is priority number 1. If we don't
    keep them happy, someone else will.

The Process
  • Outside-In Thinking
  • By understanding the transaction lifecycle from
    the customer's needs and processes, we can
    discover what they are seeing and feeling. With
    this knowledge, we can identify areas where we
    can add significant value or improvement from
    their perspective

The Employee
  • Employees must focus their talents and energies
    on satisfying customers.
  • Employees are trained in the strategy,
    statistical tools and techniques of Six Sigma
    quality. Training courses are offered at various
  • Quality Overview Seminars basic Six Sigma
  • Team Training basic tool introduction to equip
    employees to participate on Six Sigma teams.
  • Master Black Belt, Black Belt and Green Belt
    Training in-depth quality training that includes
    high-level statistical tools, basic quality
    control tools, Change Acceleration Process and
    Flow technology tools.
  • Design for Six Sigma (DFSS) Training prepares
    teams for the use of statistical tools to design
    it right the first time.

Six Sigma Lingo
  • Black Belt - Someone who has undergone intensive
    Six Sigma training, passed a certification exam,
    becomes a full-time Six Sigma project leader and
    successfully implements Six Sigma projects with
    defined business results within a certain time
    period. People who are taken out of their current
    roles, participate in intense training, take the
    certification exam and lead two to four Six Sigma
    projects each year. At the end of a two-year
    rotation, Black Belts will return to their
    business unit and continue to use their skills in
    new assignments.
  • Champion - Business leaders and senior managers
    who identify Six Sigma projects and work with
    Black Belts to promote successful implementation
    of Six Sigma methodology in their respective
    areas of responsibility.
  • DMAIC - A Six Sigma methodology that involves
    five phases Define, Measure, Analyze, Improve
    and Control. Black Belts use DMAIC to improve
    processes, products and programs. 
  • Green Belt - Unlike Black Belts, they do not
    leave their current work assignments or spend
    100 of their time on Six Sigma initiatives.
    Instead, they are trained in Six Sigma and then
    incorporate it into the way work gets done in
    their current area of responsibility.
  • Master Black Belt - Someone who works with senior
    leaders to define Six Sigma projects, objectives,
    goals and plans. Then, he/she works with Black
    Belts to track progress, continue training and
    coordinate efforts.
  • Root Cause - The fundamental cause of errors,
    which, if eliminated, would prevent recurrence of
    errors. Six Sigma methodology strives to
    identify root causes of quality problems and
    implement plans to permanently correct them.
  • Yellow Belt - Someone who typically has a basic
    knowledge of Six Sigma, but does not lead
    projects on their own, like a Black Belt or Green
    Belt. A Yellow Belt often supports different
    phases of a Black Belts or Green Belts project

Six Sigma Strategy
  • To achieve Six Sigma quality, a process must
    produce no more than 3.4 defects per million
  • Critical to Quality (CTQ)Attributes most
    important to the customer
  • DefectFailing to deliver what the customer wants
  • Process CapabilityWhat your process can deliver
  • VariationWhat the customer sees and feels
  • Stable OperationsEnsuring consistent,
    predictable processes to improve what the
    customer sees and feels
  • Design for Six SigmaDesigning to meet customer
    needs and process capability
  • Customers don't judge us on averages, they feel
    the variance in each transaction, each product we
    ship. Six Sigma focuses first on reducing process
    variation and then on improving the process
  • Customers value consistent, predictable business
    processes that deliver world-class levels of

  • Define
  • Measure
  • Analyze
  • Improve
  • Control

  • Define the Customer, their Critical to Quality
    (CTQ) issues, and the Core Business Process
  • Define who customers are, what their requirements
    are for products and services, and what their
    expectations are
  • Define project boundaries (scope) the stop and
    start of the process
  • Define the process to be improved by mapping the
    process flow

  • Measure the performance of the Core Business
    Process involved.
  • Develop a data collection plan for the process
  • Collect data from many sources to determine types
    of defects and metrics
  • Compare to customer survey results to determine

  • Analyze the data collected and process map to
    determine root causes of defects and
    opportunities for improvement.
  • Identify gaps between current performance and
    goal performance
  • Prioritize opportunities to improve
  • Identify sources of variation

  • Improve the target process by designing creative
    solutions to fix and prevent problems.
  • Create innovate solutions using technology and
  • Develop and deploy implementation plan

  • Control the improvements to keep the process on
    the new course.
  • Prevent reverting back to the "old way"
  • Require the development, documentation and
    implementation of an ongoing monitoring plan
  • Institutionalize the improvements through the
    modification of systems and structures (staffing,
    training, incentives)

Case Study PB
  • Why customers place calls to our customer care
    centers? The company found that over 12,000 calls
    related to an inquiry or dispute about sales and
    property taxes. Another audit revealed that the
    same issue was costing the company more than
    500,000 annually in uncollected taxes, interest
    and fines. A cross-enterprise team was assembled
    to resolve the problem, using a Six Sigma
    methodology (DMAIC).
  • The team included Bob Rosenblum, who championed
    the project, Janet Garner, Sandy Pfannkuch and
    Charlie Elms, who owned the processes related to
    the project, Alan Daniels, the projects Six
    Sigma Black Belt, Alan Carlo and Bill Gowrie, the
    projects Six Sigma Green Belts, (Yellow Belts)
    Pat Nissley and Dianne Askew, from our call
    center operations, Lynne Vidal and John McKenna
    from Voyager, Dawn Hallaman, Kirti Bhardwaj and
    Mike Wilk from IT/Systems, Alesia Pratcher and
    Kathy Cracas from Tax 
  • Define The team defined the problem and scope
    of the project inaccurate sales and tax
    exemption records resulted in over 500,000 in
    uncollected taxes, interest and fines paid by
    Pitney Bowes in 2002. To resolve the issue, the
    team would look at the corporate, GMS and IBS
    sales tax exemption processes and recommend
    changes/solutions that would permanently address
    the issue.
  • Measure The team collected one month of data
    from the daily processes performed at the
    corporate and IBS tax departments. They also
    took a random sampling of 200 customers who were
    coded as tax exempt in our databases to check
    if we had valid certificates that proved their
    status. The team also looked at how many times
    we approved or rejected customers requests for
    tax exempt status.
  • Analyze 83 of exemption requests
    rejected because no certificate was received
  • When certificates are received, 78 of
    accepted result in a billing adjustment for taxes
    that billed on the first invoice
  • 71 of IBS customers that require a
    certificate had one on file
  • 24 of other customers that required a
    certificate had one on file
  • No process existed to identify expired
    certificates and request new certificates from
  • The team also analyzed what actions were
    critical to ensure a new process would
    permanently resolve the problem. They identified
    items like timely submission and delivery of
    certificates, prompt reviews of customers
    requests, closed loop communications with
    customers and PB departments and more.
  • Improve After all of this analysis, the team
    implemented a simpler, more disciplined process
    for managing tax exempt requests. Now, the direct
    sales force and customers fax a tax exempt
    certificate directly to the Tax Department for
    review and imaging, rather than sending it
    inter-office mail -- which caused a tremendous
    time and control delay. As a result, the process
    for handling tax exempt requests takes just two
    days thats compared to 25 days under the old
  • Control To ensure the improvements would work
    and be maintained, the team assigned clear
    accountabilities for each part of the process,
    implemented metrics to measure results and
    identified what the company should do to keep the
    process in check, should certain issues arise.
  • The Results The number of customer calls related
    to tax exempt issues has decreased. The number of
    billing adjustments that have to be made as a
    result of the tax departments not receiving
    certificates has decreased. The number of
    customer complaint letters about this issue has
    decreased. And the new process is expected to
    save the company over 500,000 in 2004 and beyond.

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