Group Members

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SIX SIGMA

• Group Members
• Luis Alacan
• Paola del Valle
• Jandro Roque
• Chen Wang

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WHAT IS SIX SIGMA?

• A statistical concept that represents amount of
  variation present in a process
• Corresponds to being 99.9997 defect free
• Produce at defect levels below 3.4 DPMO
• Refers to a business philosophy of focusing on
  continuous improvement
• Methodology that an organization uses to ensure
  that it is improving its key processes

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WHAT IS IT USED FOR?

• Having a measurable way to track performance
  improvements
• Focusing attention on process management at all
  organizational levels
• Improving customer relationships by addressing
  defects
• Improving the efficiency and effectiveness of
  processes by aligning them with your customer
  needs

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SIX SIGMA PROGRAM DEVELOPMENT

• Bill Smith introduced the concept of Six Sigma to
  Motorola in the mid-1980s
• Mikel Harry began to study the variations in the
  various processes within Motorola
• Motorola began focusing on creating strategies to
  reduce defects in its products
• Achieved the Malcolm Baldridge National Quality
  Award in 1988

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SIX SIGMA TODAY

• Six Sigma has evolved
• Lean Six Sigma
• Design for Six Sigma (DFSS)
• DMAIC methodology
• CTQs
• Certifications
• Yellow, Green, Black Belts
• Overall has achieved greater awareness

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SIX SIGMA METHODOLOGY
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NORMAL DISTRIBUTION
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REGIONS
About 68 of the area under the curve falls
within 1 standard deviation of the mean
About 95 of the area under the curve falls
within 2 standard deviations of the mean
About 99.7 of the area under the curve falls
within 3 standard deviations of the mean
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PROCESS SHIFT
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INDICES

• Cp USL LSL
• 6s
• Cp gt 2 indicates process is in good
  statistical control
• Cpk Min USL µ USL µ
• 3s , 3s
• Cpk lt 1.33 indicates process is not capable
  of
• producing repeatable
  products

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METRICS

• Defect Rate in parts per million (ppm)
• Sigma Levels (1s, 2s, 3s, 4s, 5s, 6s)
• Process Capability Index
• Cpk 0.5 means you've crunched nearest the door
  edge
• Cpk1 means you're just touching the nearest edge
  
• Cpk2 means your width can grow 2 times before
  touching
• Cpk3 means your width can grow 3 times before
  touching
• Defects per unit (average number of defects
  observed when sampling a population)
• Yield (percentage of a process that is free of
  defects)

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LEVELS
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SIX SIGMA PRACTICAL MEANING
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SIX SIGMA ROADMAP

• 1. Identifying core processes and key customers
• 2. Defining customer requirements
• 3. Measuring customer performance
• 4. Prioritizing, analyzing, and implementing
  improvements
• 5. Expanding and integrating the Six Sigma system

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SIX SIGMA PLAYERS
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FOSTERING SIX SIGMA CULTURE

• Six Sigma Overview 4-8 hours in length
• Business process management 3 days
• Green Belt for Champions 3 or 8 days
• Black/Green Belt Training 12 days
• Change Management 3 days
• Facilitative Management 2 days
• Individual Tools Clinic Depend on tool or
  technique

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WHAT IS NEEDED FOR A SUCCESSFUL SIX SIGMA
PROGRAM?

• Have management lead your improvement efforts.
• Actively support a focus on delighting your
  customers.
• Provide the sigma improvement team with access to
  experts who can offer ongoing guidance and
  coaching.
• Encourage open discussion about defects. People
  should not be afraid to point out that something
  is wrong. The airline industry for instance,
  studies crashes and near-misses to improve
  safety.
• Value and use the data you gather.
• Help employees work effectively by providing a
  team-based, cooperative environment.

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PITFALLS TO AVOID

• Failure to achieve quick success
• Clear your agendas of competing distractions
• Unrealistic timeframes
• Ignore previous quality efforts
• Poor Six Sigma cultural planning and follow
  through
• Cultural development cannot be delegated or seen
  as an one-time event
• No culture goals and objectives
• Not allowing for unexpected interruptions
• False positive readings that you have achieved
  Six Sigma cultural transformation
• Underestimate resource allocation

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MOTOROLA REASONS WHY SIX SIGMA MAY FAIL

• Lack of senior Sponsorship
• Lack of Alignment to a clear strategy
• Lack of tracking and Accountability
• Failure to link to the Bottom-Line
• Insufficient or ineffective allocation of Human
  Resources
• Over-emphasizing on Rigid Approach

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BALDRIGE AWARD AND SIX SIGMA

• Baldrige criteria is used as a management tool
• Most organizations that use the Baldrige criteria
  never apply for an award
• Baldrige Criteria as a method of establishing a
  culture of excellence, assessing performance,
  and prioritizing initiatives
• Six Sigma can be used to drive deep into root
  causes to solve the organizations highest-impact
  problems

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BALDRIGE AND SIX SIGMA ALIGNMENT

• Sigma encourages a focus on meeting customer
  requirements (Baldrige Category 3)
• Leadership-driven initiative (Baldrige Category
  1)
• Alignment of improvement projects to the
  organizations strategy (Baldrige Item 2.2)
• Effective development and training of human
  resources (Baldrige Item 5.2)
• Data-driven decision-making (Baldrige Category 4)

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BALDRIGE /LEAN THINKING /SIX SIGMA
ALIGNMENT
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STARWOOD HOTELS
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STARWOOD HOTELS

• Starwood has found Six Sigma's strengths can
  promote innovation, not stifle it.
• Starwood has been successful, in part, because it
  began with a culture of creativity before
  introducing the management tool
• Programs developed using six sigma techniques
  delivered more than 100 million in profit to its
  bottom line
• Since the program launched in 2001, more than 150
  employees have been trained as "black belts" and
  more than 2,700 as "green belts"

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STARWOOD HOTELS

• The process begins when hotel teams pitch a new
  idea
• A Six Sigma council then evaluates an idea's
  merit based on the division's priorities and the
  project's expected payoff.
• If the council approves a project, black belts
  and green belts are deployed like swat teams to
  the hotels to execute the project.
• After rolling out a prototype, green belts shift
  into analytical mode. At that point they spend a
  lot of time with the E-Tool, a proprietary
  Web-based system that allows Starwood to monitor
  a slew of performance metrics to gauge the
  success or failure of a new project.
• .

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QUESTIONS?