2. 2
Six Sigma has evolved over the last two decades and
so has its definition. Six Sigma has literal, conceptual,
and practical definitions.
Six Sigma has three different levels:
1. As a metric
2. As a methodology
3. As a management system
Essentially, Six Sigma is all three at the same time.
WHAT IS SIX SIGMA?
3. 3
The term "Sigma" is often used as a scale
for levels of "goodness" or quality. Using
this scale, "Six Sigma" equates to 3.4
defects per one million opportunities
(DPMO). Therefore, Six Sigma started as
a defect reduction effort in manufacturing
and was then applied to other business
processes for the same purpose.
Six Sigma as a Metric
5. 5
Six Sigma is a business improvement methodology that
focuses an organization on:
Understanding and managing customer requirements
Aligning key business processes to achieve those requirements
Utilizing rigorous data analysis to minimize variation in those processes
Driving rapid and sustainable improvement to business processes
At the heart of the methodology is the DMAIC model for process
improvement. DMAIC is commonly used by Six Sigma project teams and is
an acronym for:
Define opportunity
Measure performance
Analyze opportunity
Improve performance
Control performance
Six Sigma as a Methodology
6. 6
The DMAIC Model
Define Control
Measure Improve
Analyze
Voice of the Customer
Institutionalization
Six Sigma as a Methodology
8. 8
When practiced as a management system, Six Sigma is a high
performance system for executing business strategy.
Six Sigma is a top-down solution to help organizations:
Align their business strategy to critical improvement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
Govern efforts to ensure improvements are sustained
The Six Sigma Management System drives clarity around the business strategy
and the metrics that most reflect success with that strategy.
It provides the framework to prioritize resources for projects that will improve the
metrics, and it leverages leaders who will manage the efforts for rapid, sustainable,
and improved business results.
Six Sigma as a Management System
9. 9
Six Sigma as a Management System
PROCESSES
TOOLS
SKILLS
TRAINING
LEAN SIGMA
(DMAIC +)
Integrated Improvement
Y1
y1
VOICE OF...
• Market
Customer
•
Employee
•
• Business
FEEDBACK
CORE & ENABLING PROCESSES
PROCESS
MAPS SYSTEMS
EXECUTION (PROCESS MANAGEMENT)
WORKOUT
SIX SIGMA
LEAN SIGMA
STRATEGY
If new product
or process
Big Y’s
Sub Y’s
PROCESS
DFSS(DMADV)
Fundamental Redesign
D
R
I
V
E
S
S
U
P
P
O
R
T
S
Flexible Problem Solving Models
Y1
y1
VOICE OF...
• Market
• Customer
• Employee
• Business
BUSINESS
OBJECTIVES
RESULTS:
Top-Level
Indicators
(Dashboards)
PROCESS
MAPS
SYSTEMS
PROCESS IMPROVEMENT
STRATEGY
If new product
or process
Projects
PROCESS
DFSS
D
R
I
V
E
S
S
U
P
P
O
R
T
S
PROCESS
CONTROL
ALIGNMENT
SIX SIGMA
(DMAIC)
Incremental Improvement
GE WORKOUT
Quick Wins
Accelerated Improvement
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS
10. 10
Six Reasons Why Business Leaders Love Six Sigma?
1. Six Sigma impacts the bottom line
2. Six Sigma drives strategy execution
3. Six Sigma generates robust, flexible business processes
4. Six Sigma improves human performance across the
enterprise
5. Six Sigma is highly scalable
6. Six Sigma is a low risk investment
Note: Robustness is the condition of a product or process design that remains
relatively stable with a minimum of variation even though factors that
influence operations or usage, such as environment and wear, are constantly
changing.
11. 11
Six Habits of Six Sigma Leaders
1. Delivering customer value (exhibit passion, listen actively,
communicate partnership)
2. Focusing on execution (result-driven, resource conscious,
process-oriented)
3. Making sound, data-driven decisions (critical thinking,
decisiveness, accountability)
4. Managing performance (set goals, track progress, manage
details)
5. Advocating breakthrough improvements (assertiveness,
influence, tenacity)
6. Supporting team-based implementations (manage teams,
reward teams)
12. 12
Six Tools Every SS BB/GB Loves
1. Quality Function Deployment (QFD)—helps to drive customer-focused
development across the design process
2. Cause and Effect (C&E) Matrix—helps to facilitate team decision making
3. Failure Modes and Effects Analysis (FMEA)—helps to identify and
address weaknesses in a product or process before they occur
4. Control Charts—helps to assess process stability
5. T-Student Test (t-test)—helps to validate test results using small sample size
6. Design of Experiments (DOE)—helps to make the most of valuable
resources Business
and/or Customer
Requirement
1
2
3
4
5
6
Defects Good
13. 13
Six Reason Why Six Sigma Fails?
1. Lack of visible senior leader sponsorhip
2. Lack of alignment to a clear organization strategy
3. Lack of performance tracking and accountability
4. Failure to link projects to bottom-line impact
5. Insufficient or ineffective alocation of human resources
6. Over-emphasis on rigid approach and technical tools
15. 15
PT Mattel’s Vision: “A globally
competitive manufacturer of
premier toy brands through
continuous improvement”
16. 16
PRACTICAL PROBLEM (PT Mattel’s Needs)
STATISTICAL PROBLEM
STATISTICAL SOLUTION
PRACTICAL SOLUTION
(MATTEL’S SMART OBJECTIVES)
PT MATTEL’S VISION
S
I
X
S
I
G
M
A
L
E
A
N
S
U
P
P
L
Y
C
H
A
I
N
SMART = Specific, Measurable,
Attainable/Actionable,
Result-oriented, Time-bound
17. 17
PT Mattel’s COPIS IDENTIFICATION
Vision: A globally competitive manufacturer of premier toy brands through CI
SMART OBJECTIVES
1. To Increase Direct Labor Efficiency from ____% to ____%
2. To Reduce Scrap from _______ PPM to ______ PPM
3. To Improve Production Schedule Adherence from ______ % to ______ %
4. To Improve Daily Schedule Adherence from _____% to ______%
5. To Reduce Lot Buy Off from _____ PPM to ______ PPM
6. To Reduce Containment Audit from _______ PPM to ______ PPM
7. To Maintain Lost Day Incident Case at Zero Level (Always Zero Goal)
Product Type Customers Outputs Processes Inputs Suppliers
#1
#2
#3
#4
#5
#6
etc
Customers’
Needs
(Voice of
Customer =
VOC)
KPOV
(Key Per-
formance
Outputs
Variables) –
CTQ (Critical To
Quality),CTS (CT
Schedule, CTC
(CT Cost)
Processes
Needs
(Voice of
Processes =
VOP)
Inputs
Requi-
rements
Suppliers
Require-
Ments &
Selection
COPIS = Customer, Outputs, Processes, Inputs, Suppliers
18. 18
Six Sigma COPIS Model
The Voice of the Customer (VOC) is aggressively evaluated and used to
determine needed outputs and hence the optimal process configuration
needed to yield those outputs and their necessary inputs for which the best
suppliers are identified and allied with.
From Mattel’s Concept to Market: the Voice of the Customer
Customers Suppliers
Outputs Inputs
Process
Steps
How does Six Sigma Work?
20. 20
Six Sigma Way is a best-
in-class change
strategy for
accelerating
improvements in
manufacturing
processes and
services.
Six Sigma Way is:
Mindset/Way of
thinking
A way of doing
manufacturing/servi
ce business
Methodology/Tools
for continual
improvement
Six Sigma Way of Transformation
Six Sigma
Way
