What is Six Sigma ?
Sigma is a letter in the Greek Alphabet
s
A level of performance that reflects significantly reduced defects in our products
A statistical measurement of our process capability, as well as a benchmark for comparison A set of statistical “tools” to help us measure, analyze, improve, and control our processes A commitment to our customers to achieve an acceptable level of performance
What is Six Sigma? Jim Bossert Bank of America
The problem used to be: “How do we get management interested enough in quality to do something about it?” Now the problem is: “How do we get the people to believe that we are really going to do something and stick with it?”
Every Chance to Do Something Either “Right” or “Wrong”
Successes Vs. Defects .....
Every Result of an Opportunity Either Meets the Customer Specification or it Doesn’t
Tools Qualitative, Statistical and Instructional Devices for “Observing” Process Variables & Their Relationships as well as “Managing” their Character
•
Purchased Material Lot Reject Rate
10
1
Best-in-Class Average Company 1 2 3 4 5 6 7
Domestic Airline Flight Fatality Rate (0.43 PPM)
Sigma Scale of Measure
Strategy
• Know What’s Important to the Customer • Reduce Defects • Center Around Target • Reduce Variation
Breakthrough Improvement Not Incremental!
Why Focus on COPQ?
Philip B. Crosby
What is Six Sigma?
Six Sigma - The Initiative
Process Systematic Approach to Reducing Defects which Affect What is Important to the Customer
IRS - Tax Advice (phone-in) (140,000 PPM) Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Wire Transfers Airline Baggage Handling




Vision Goal Philosophy Metric Method Tool Symbol Benchmark Value
.... A means to stretch our thinking with respect to quality
Six Sigma - Goal
s
Process Capability
2 3 4 5 6
308,537 66,807 6,210 233 3.4
PPM
Defects per Million Opp.
(DPMO Distribution Shifted ± 1.5s)
THE GOALS OF SIX SIGMA:
Defect Reduction
Price Erosion
Profit Profit
Cost of Poor Quality COPQ Total Cost to manufacture and deliver products
Yield Improvement
Improved Customer Satisfaction Higher Net Income
Where does industry stand ?
(with ± 1.5 s shift)
PPM
1,000,000 100,000 10,000 1,000 100
© 1994 Dr. Mikel J. Harry - V4.0
© 1994 Six Sigma Academy
What’s it Based On ?
Customer .....
Anyone Who Receives Product, Service, or Information
Opportunity .....
Philip B. Crosby
“Nothing flourishes until is is clear in the mind
of the thought leaders”
“Real comprehension has to exist if the termination is to be obvious”