Six Sigma is defined as a management philosophy and problem-solving methodology focused on reducing variation and eliminating defects. It uses a define-measure-analyze-improve-control (DMAIC) process. Key aspects of a Six Sigma organization include Champions who drive the initiative, Black Belts who lead projects, and Green Belts who assist. The goal is to achieve no more than 3.4 defects per million opportunities through rigorous data-driven analysis and process improvement.

1. INTRODUCTION
Why six and Why Sigma?

2. Slide 2
AGENDA
• Definitions:
– What is Six Sigma? … Why six and why sigma?
– Six Sigma as a statistical measure.
– Six Sigma as a management Philosophy.
– Six Sigma as a combination of people power and process power.
• Process Power "DMAIC":
– Define.
– Measure.
– Analyze.
– Improve.
– Control.
• People Power, Who does what?
- The 6 Sigma Organization.
- The Driving Force (Champions)
- The Project Owner
- The Black Belts and the Green Belts
- The Financial Representative.

3. Slide 3
Sigma:  or ?
• Greek Alphabet
• Examples:
–  -  (Omega)
–  -  (Pi)
–  -  (Delta)
–  -  (Zeta)
–  -  (Psi, pronounced si)

4. Slide 4
Why 6? & Why ?
• The concept
originated by
mathematicians
(statisticians
specifically)
Example: a group of
a thousand people
The resulting curve

5. Slide 5
m m+m-m-2m-3 m+2 m+3
6
4
2
99.99966%
69.1%
99.379%

6. Slide 6
2
3
4
5
6
308,537
66,807
6,210
233
3.4
 PPM
Process
Capability
Defects per
Million Opportunity
6 Sigma???
% Non-Defective
69.1%
93.32%
99.379%
99.9767%
99.99966%

7. Slide 7
Technical definition of
  is a measurement of Variation.
– It is a measure of how widely values are dispersed
from the mean value.
  is the standard deviation of the normal
Distribution
– 6 is a 3.4 defects per million opportunities.
  is a measure of process perfection.

8. Slide 8
The Focus of a Six Sigma
Organization
Customers
Shareholders Processes
Financial
Results
$
People

9. Slide 9
• To increase a process
performance, you
have to decrease
variation.
Importance of Reducing Variation
• Less variation provides
– Greater predictability in the process
– Less waste and rework, which lowers costs
– Products and services that perform better and last longer
– Happier customers
Defects Defects
Too early Too late
Delivery Time
Reduce
variation
Delivery Time
Too early Too late
Spread of variation
too wide compared
to specifications
Spread of variation
narrow compared to
specifications

10. Slide 10
Sigma Area Spelling Money Time
3 Floor space of
a small
hardware store
1.5 misspelled
words per page in a
book
$2.7 million
indebtedness per $l
Billion in assets
3 1/2 months
Per century
4 Floor space of
a typical living
room
1 misspelled word
per 30 pages in a
book
$63,000
indebtedness per $l
Billion in assets
2 1/2days per
century
5 Size of the
bottom of your
telephone
1 misspelled word
in a set of
encyclopedias
$570 indebtedness
per$l Billion in
assets
30 minutes per
century
6 Size of a
typical diamond
1 misspelled word
in all the books in a
library
$2 indebtedness
per $l Billion in
assets
6 seconds per
century
Examples of Sigma performance

11. Slide 11
 It is a management philosophy
A customer based approach realizing that expensive defects.
 6 Sigma is a problem-solving methodology
For identifying and eliminating waste in any business
process including administration, manufacturing,
customer service and transactions.
 6 Sigma is a process
Define, Measure, Analyze, Improve and Control – DMAIC
A non-statistical definition of
6 Sigma
3.4 defects per million is 1 in 300,000.
As there are 50,000 airplanes over
Europe every day, this means there
will be one crash landing every week!

12. Slide 12
Would 99.5% defect free
be OK?
• NO! 99.5 % means:----
– 2 or more accidents per day at major airports
– Out of 10,000 parts delivered, 50 are incorrect
– Every 5 of 1000 brake pads are faulty
– 10,000 lost articles of mail every 30 minutes
– 100,000 wrong drug prescriptions each year
– 2,500 incorrect surgical procedures each week

13. Slide 13
Constant quest for perfection to meet
customer needs
Fact-based, data-driven decision making
Focusing the best people on the highest
priorities
Improving our processes
Precise alignment of actions with strategy
Measuring bottom-line impact
Transforming how people work
6 Sigma is About Success – It is a Culture of;

14. Slide 14
Seven Principles of Problem-Solving Techniques
 Empower Yourself
 Commit yourself to the vision of 6
Sigma
 Embrace Customers
 Anticipate and deliver what the
Customer wants
 Discover the “$tealth”
factory
 Learn the Real cost of doing it
wrong
 Expose the “Vital Few”
 Identify factors that will give you
“most bang for the buck”
 Empower People
 Train & Trust the “Best of the
Best”
 Harness the Magic of
Data
 Use the method (D-MAGIC) -
without the G for Guesswork
 Improve Constantly
 Persist in the Relentless Journey
to 6 Sigma Success

15. Slide 15
Marketing
Sales
Product Development
Product Manufacturing
Customer Service
Logistics
Accounts Receivable
Billing/Contracts
6 Sigma Applies to the Whole Business
6 Sigma applies to all
sectors of the Company
A fault in one part of the
sequence affects the whole
process
Right are some core processes that
are common to many businesses.

16. Slide 16
6 Sigma Triangle
DMAIC: Improve
existing processes,
products, services,
and plants to
6 Sigma quality
Leverage and sustain the gains
achieved by improvement and
creation
DMEDI: Create new
processes, products,
services, and plants to
6 Sigma quality

17. The Six Sigma Project DMAIC Cycle
• Define
– What is the business case for the project?
– Identify the customer
– Current state map
– Future state map
– What is the scope of this project?
– Deliverables
– Due date
Slide 17
D

18. The Six Sigma Project DMAIC Cycle
Slide 18
M
• Measure
– What are the key metrics for this business
process?
– Are metrics valid and reliable?
– Do we have adequate data on this
process?
– How will I measure progress?
– How will I measure project success?

19. The Six Sigma Project DMAIC Cycle
Slide 19
A
• Analyze
– Current state analysis
– Is the current state as good as the process
can do?
– Who will help make the changes?
– Resource requirements
– What could cause this change effort to fail?
– What major obstacles do I face in completing
this project?

20. The Six Sigma Project DMAIC Cycle
Slide 20
I
• Improve
– What is the work breakdown structure?
– What specific activities are necessary to
meet the project's goals?
– How will I re-integrate the various
subprojects?

21. The Six Sigma Project DMAIC Cycle
Slide 21
C
• Control
– During the project, how will I control risk,
quality, cost, schedule, scope, and changes
to the plan?
– What types of progress reports should I
create?
– How will I assure that the business goals of
the project were accomplished?
– How will I keep the gains made?

22. Slide 22
Example of a Process
 An analysis of business Inputs – Process’s - Output
 Measured against the requirements of our customers…
 ……and the market
A simple process - Take a Drinks Vending Machine….
Decide….. Insert Coin
Press ButtonSelects can
Can drops Retrieve can
Open canDrink content
Customer Satisfaction!!

23. PEOPLE POWER, WHO DOES WHAT?
Karate and the Belts
The 6 Sigma Organization.
•The Driving Force :
The Executive Champion
the Deployment Champion
•The Project Owner
•The Black Belts
•The Green Belts
The Financial Representative
Slide 23

24. Slide 24
What has this got to do with
Karate?
• Terminology well known, whereas…..
• The terms “Engineer,” “Statistician”, “Auditor”
do not reflect the complexity of the job
• Karate belts denote “expertise & discipline”
– Black belt are skilled tacticians
– Yellow belts are beginners
– Green, in-between

25. Slide 25
The Belts….. Who are they?
 Yellow Belt
• All employees who have completed an introduction
half day session.
 Green Belt
• Work part time to help Black Belts
 Black Belt
• Full time 6 Sigma project leaders – 100% focused
 Master Black Belt
• Full time 6 Sigma experts who act as coaches,
trainers and mentors for Black Belts

26. Slide 26
• Owns vision, directs
integration, results
• Leads change
• Project owner
• Implements
solutions
• Black Belt
manager
Full-time
Trains and coaches Black
Belts and 6 Sigma
Green Belts
Full-time
Facilitates problem solving
Trains and coaches
Project Teams
• Participate on Black
Belt project teams
• Part time on projects
• Validate financial
impact of projects
• Full-Time (or dedicated
in a small organization)
• Sets direction
• Creates business
deployment plan
• Supports Black Belts
and Project Sponsors
• Can be the Project Sponsor
• Sustains and leverages gains
Company
Deployment
Champion
Project
Sponsors
Master
Black Belts
Process Owner
Financial Rep.
Executives /
Leadership
Green Belts
Black Belts
Understand vision
Apply concepts to
their job and
work area
Yellow Belts • Contributors
• Part time on
projects
6 Sigma Organization
All Employees

27. Slide 27
How the
Black belt
works

28. Slide 28
Change Management
6 Sigma considers “Change
Management” to be key to success
Training is provided at all levels
6 Sigma has a proven track record

29. Slide 29
 We need to change to achieve our
objectives of………
– growth
– customer satisfaction
– employee satisfaction
– and cost reduction
These are Driven by;
A changing market, Where competition is
increasing and getting tougher &
market prices and margins are declining

30. Slide 30
In Summary
 The Company is totally committed regardless of franchise,
division etc.
 The Executives are totally committed and actively involved.
 This is for the long term and all employees are involved.
 Only the best will be black belts, and these people will be
the drivers of the company in years to come.
 The concepts of 6 Sigma must become an integral part of
the company culture.
 The key is improving the bottom line that will prioritize
resources to those projects with the best return.
 At all stages it is critical customer requirements that come
first.
 Implementation will be “Head Count” neutral.