SIX SIGMAIntroduction

WHAT IS SIX SIGMA?

• Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services – as defined by our customers.

• Why ”Sigma“? The word 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.

KEY CONCEPTS OF SIX SIGMA

Critical to Quality:

Defect:

Process Capability:

Variation:

Stable Operations:

Attributes most important to the customer.

Failing to deliver what the customer wants.

What our process can deliver.

What the customer sees and feels.

Ensuring consistent, predictable processes to improve what the customer sees and feels.

SIX SIGMA ─ ELEMENTS OF QUALITY

Delighting Customers: In every attribute that influences customer perception, we know that just being good is not enough. Delighting our customers is a necessity. Because if we don’t do it, someone else will!

Outside-In Thinking: Quality requires us to look at our business from the customer’s perspective, not ours. With this knowledge, we can identify areas where we can add significant value or improvementfrom their perspective.

Leadership Commitment:People create results. Quality is the responsibility of every employee. Every employee must be involved, motivated and knowledgeable if we are to succeed.

Three key elements of quality: customer, process and employee.

GAUSSIAN DISTRIBUTION ─ BELL CURVE

-4 -3 -2 -1 0 -1 -2 -3 -4

68.26%

Number of standard deviations of average value

95.4%

99.74%

34.13% 34.13%

13.57% 13.57%

2.16% 2.16%

0.13% 0.13%

Reversal Point

To achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities.

SIGMA ERROR RATE DEFECTS PER MILLION* SUCCESS RATE (Y%)

1 69% 691.462 31

2 31% 308.538 69

3 6.7% 66.807 93.3

4 0.62% 6.210 99.38

5 0.023% 233 99.977

6 0.00034% 3.4 99.9997

7 0.0000019% 0.019

THE SIGMA-LEVELMeasuring Method to Determine Process Performance

The higher the value, the more efficient the process

SIX SIGMA AND CX

Our Customers Feel the Variance, Not the Mean

Often, our inside-out view of the business is based on average or mean-based measures of our recent past. Customers don’t judge us on averages, they feel the variance in each transaction, each interaction. Six Sigma focuses first on reducing experience and process variation and then on improving the process capability.

Customers value consistent, predictable business processes that deliver world-class levels of quality. This is what Six Sigma strives to produce.

BREAKTHROUGH-STRATEGY

DURATION IN YEARS31 2 54

IMP

RO

VEM

ENT

QU

OTA

BREAKTHROUGH-IMPROVEMENT

SIX SIGMA(Optimal Improvement)

STANDARD METHODS(Gradual Improvement)

GRADUAL IMPROVEMENT:

Kaizen Re-Engineering TQM Current Tools and Approaches

SOURCES FOR SIX SIGMA PROJECTSThe Following Methods are Applied

DMAIC

Improvement of existing processes(DMAIC-Cycle: Define, Measure, Analyze,Improve, Control)

CHANGE MANAGEMENT

Tools to initiate, support and control the necessary alteration processes

DFSS – DESIGN FOR SIX SIGMA

Creating new products and processes (DMADV-Cycle: Define, Measure, Analyze, Design, Verify)

PROJECT MANAGEMENT

Coordination and implementation of all initiated projects. Due to state of the art development tools companies operate faster, more individual, more rational

SIX SIGMA – SUCCESS FACTORSIncrease of Company Value through Customer Satisfaction and Customer Loyalty

SIXSIGMA

Evaluation + improvementof customer’s satisfaction

> DMAIC-Process

View through rearview mirror

Customer Loyalty through implementation

of critical improvements based oncustomer demands

DESIGN FOR SIX SIGMA

Detect + fulfill future important customer requirements

> DFSS

View through front window

DMAIC-CIRCLE / DMAIC-CYCLEDMAIC-Cycle to Measure Current Projects and Their Improvement

WHAT IS THE PROBLEMProblem description and definition

of project objective; initiation of project and planning of milestones

SEVERITY OF THE PROBLEMDetermination of causes

for actual problems and cause variables, quality, data and facts

REASONSProcessing of the results and problem analysis

SOLUTIONSelection of solution alternatives and implementation of a strategy to reach goals

IMPROVEMENT AND SUSTAINMENTImplementation of solution approach, monitoring, controllingand documenting

DEFINE – DEFINITION PHASETasks of the Six Sigma Champion

Preparation of project charters1

Focus on customer requirements and company interest2

Securing of sufficient project resources within the team (commitment of all participants)3

Strict separation from other projects4

5Consideration of economical value, probability of success and availability of resources

PROJECT ORGANIZATION AND ROLESDescription of roles and related skills

TEAM MEMBER

CONTROL CIRCUIT

CHAMPIONMASTER

BLACK BELTBLACK BELT GREEN BELT YELLOW BELT

Responsible for budget and resources; sponsor of Six Sigma

projects

Experienced senior project manager; management of cross-sectional strategic

projects

Project manager and Coach; executes

projects together with other business

divisions

Leads projects within his sector of responsibility;

implementation of smaller Six-Sigma projects

Part of the project team, which applies Six Sigma methods; supports execution

of projects

THREE IMPLEMENTATION APPROACHES

COMPANY WIDE STRATEGY

TOOLBOX

IMPROVEMENTPROGRAM

IMPLEMENTATION IN TOP-DOWN-PROCESS

Management makes decisionson the introduction of Six Sigma, which are transferred to all company levels

USE POTENTIALS

Internal improvement initiative, to use improvement potentials within

the day-to-day routine of the company

7X7-TOOLBOX

Success by integration of selected improvement tools from the 7x7-Toolbox

(mixture of techniques, methods and mental models)

RECAP – WHAT IS SIX SIGMA?

PROCESS IMPROVEMENTOperative and productive processes

QUALITY INITIATIVE Measurable success like increased

revenue and lowered costs

CUSTOMER REQUIREMENTSNot quality improvement at all costs

INDICATOR OF Efficiency of processes

TOOLBOXProcess, analysis, statistics,problem solving strategy

PROBLEM SOLVING METHODSystematically , data oriented, (DMAIC-Method, DMADV)

FEELING QUALITY (CX)

Practical Meaning of Process Performance