Six sigma

Six Sigma Part 1
Implementation &
Management
Sample

Building a 6σ Organization
(4 of 14)
 Why Six Sigma?
– Six Sigma helps the organization
improve customer value and
efficiency.
– Just a few of the major companies
that have used Six Sigma are:
• Motorola, GE, Allied Signal
– Six Sigma focuses on: customer
requirements, defect prevention,
cycle time reduction, cost savings,
customers, shareholders, and
employees.
Page 2www.readysetpresent.com

(7 of 14)
 Six Sigma vs. Three Sigma
– There is a direct correspondence
between the quality levels and the
“sigma levels” of performance.
– Companies operating at 3 or 4
sigma usually spend 25- 40% of
their revenues fixing problems.
– Companies operating at 6 sigma
usually spend less than 5% of
revenues fixing problems.

(10 of 14)
 Implementing Six Sigma
– Leadership
– Communicates a vision for Six
Sigma success.
– Infrastructure
– Senior leaders direct the
development and training of an
infrastructure.
– Communication / Awareness
– Steps are taken to “soft-wire”
the organization and cultivate a
change-capable environment.

(11 of 14)
– Project Selection
– Six Sigma projects are
proposed for improving
business processes.
– Project Deployment
– Six Sigma projects are
conducted by project teams led
by Black Belts.
– Projects may also be led by
Green Belts with the technical
assistance of Black Belts.

(12 of 14)
 Timetable
– It takes approximately 2 years to
deploy Six Sigma within an
organization:
– Identify leader
– Discover knowledge
– Train Black Belts
– Establish project validation
criteria
– Train Green Belts
– Prepare road map of next steps

(14 of 14)
 Infrastructure
– There needs to be 1 master black
belt (MBB) for every 1,000
employees.
– For every MBB in your organization,
you would typically need 10 BB’s.
– A Black Belt (BB) will typically
complete 5-7 projects per year.
– This structure is intended for
organizations with 1000+
employees, but can be easily
adapted for companies with 400+
employees.

Enhance
Customer Value

Enhance Customer Value
(1 of 18)
 Recognizing Opportunity
– A core principle of Six Sigma is the
recognition of customer value.
• Value is what the customer is
willing to pay for. The remainder
of our activities is waste.
– The fulfillment of customer needs is
the lifeblood of the organization.

Enhance Customer Value
(3 of 18)
 Traditional
Structure
– Short-term focus
– Bottom line results
– Customers are a
pain
– Sellers Market
– Error Detection
– Product Driven
– Crisis Management
 Customer Driven
– Long-term focus
– Customer
satisfaction
– Customers are
important
– Buyers Market
– Error Prevention
– Customer Driven
– Process
Improvement

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Let the Data Drive You (1 of 20)
 Data Driven Management
– Management decisions must be
based on objective data.
– Six Sigma projects provide a means
of analyzing process data to achieve
process improvements.
• These process improvements are
initiated so that the organization
can achieve its priorities.

 Attributes of Good Data
– The choice of what to measure is
crucial to the success of the
organization.
– Improperly chosen metrics can lead
people away from the organization’s
goals.
• Once chosen, the metrics must be
communicated to the members of
the organization.

 Dashboard Metrics
– Dashboard metrics are
measurements of the results
delivered by complex processes and
systems.
– These measurements are effects of
the processes.
– In Six Sigma work, effects are Y’s,
and root causes are X’s.

 Balanced Scorecards
– Balanced scorecards display
performance metrics in four areas
that correspond to the major
stakeholders:
• Customer
• Internal processes
• Innovation and learning
• Financial
www.readysetpresent.com Page 15

 Internal Process Perspective on
the Balanced Scorecard
– Which internal processes are critical
to meet customer and shareholder
goals?
– Internal metrics must be chosen to
support the leadership’s customer
strategy.
– SIPOC can be used to aid in the
selection of internal metrics.

 Innovation and Learning
Perspective on the Balanced
Scorecard.
– Can we continue to improve and
create value?
– Building shareholder value is
dependent on the company’s ability
to innovate, improve, and learn.
– It’s important to keep in mind that
what worked yesterday may fail
tomorrow.

 Financial Perspective on the
Balanced Scorecard
– Obsession with financial metrics
undoes many improvement
initiatives.
• When senior leaders look only at
results, they miss the fact that
results come from a chain of
interacting processes that
produce value for customers.

 Cost of Poor Quality
– The issue of quality costs has been
around since the 1950s.
– Cost of quality includes any cost that
would not be expended if quality
were perfect.

Which Projects to
Select?

Which Projects to Select?
(1 of 11)
 Maximizing Resources
– According to Jack Welch, the CEO of
General Electric, the best Six Sigma
projects begin by answering the
questions:
• How can we make the customer
more competitive?
• What is critical to the customer’s
success?
– Selecting which projects to focus on
maximizes resources.

Which Projects to Select?
(7 of 11)
 Tracking Six Sigma Projects
– Tracking results from Six Sigma
projects is important for several
reasons:
• Evaluating the Six Sigma project
selection system
• Determining ROI
• Setting budgets
• Appraising performance
• Setting goals and targets
• Identifying areas where more or
less Six Sigma is needed

www.readysetpresent.comPage 23
Download “Six Sigma”
PowerPoint presentation
at ReadySetPresent.com
Slides include: 14 slides on building a Six Sigma
organization ~ 18 slides on enhancing customer value ~
20 slides on data-driven management ~ 11 slides on
which projects to select ~ 3 slides introducing the DMAIC
and DMADV models ~ 23 slides on "D" (Define) ~ 27
slides on "M" (Measure) ~ 7 slides on process behavior
charts ~ 5 slides on measurement system info ~ 34 slides
on "A" (Analyze) ~ 35 slides on "I" or "D"
(Improve/Design) ~ 17 slides on "C" or "V"
(Control/Verify) ~ action steps and much more.
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Six sigma

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