Six Sigma in 10 Minutes

Welcome to this course on introduction to Six Sigma this course will provide you with an overview of Six Sigma approach before we go any further let us understand that the purpose of Six Sigma is to increase profits how do we increase profits we do that by making customer happy how do we make customer happy that is done by reducing variation and providing consistently good product or service and by reducing defects and reworks you Six Sigma approach was first proposed and developed by Bill Smith of Motorola in 1986 it is based on the works of others such as you heard Iran Taguchi Deming and Ishikawa and their contributions to Quality Control TQM and zero defects On January 15 1987 Motorola launched a long-term quality program called the Six Sigma quality program after implementing Six Sigma in 1988 Motorola was among the first recipients of the Malcolm Baldrige National Quality Award since then Six Sigma has constantly caught the attention of industry as you would see in the next slide allied signal adopted Six Sigma methodology in 1992 and General Electric in 1995 even though Motorola is the founder of Six Sigma General Electric is the company which has proven that Six Sigma is an exciting management strategy General Electric is indeed the missionary of Six Sigma General Electric began at Six Sigma program in 1995 and has achieved remarkable results since then originally Six Sigma was designed to be a practice to improve the manufacturing processes by eliminating defects it quickly became adopted in other parts of the business too as X Sigma showed great success before we go any further into this course let us understand what is Six Sigma to explain Six Sigma in very general terms let us take an example of a pilot landing on a landing strip if the pilot is able to land on half of the landing with most of the times then we can say that the pilot has Six Sigma landing capability the key thing to understand here is that the pilot is operating in half of the allowable margin on the other hand if we talk technically Sigma is a letter in the Greek alphabet that in terms of statistics means standard deviation we will explore this statistical aspect later in this course and we'll learn that a Six Sigma process allows only three point four defects per million opportunities so it is a program aimed at than your elimination of defects from every product process and transaction in today's highly competitive business environment the company leadership faces a number of challenges this slide touches upon some of these challenges the first and foremost challenge is to satisfy customers that is the main reason for the company to be in the business actually many of the points listed here are related to the main issue of satisfying customer as the expectations of customers increase the companies have to use the latest available technology to meet the demands quicker a lesser price and meeting the specific needs of individual customers to meet these challenges companies need dedicated employees retaining the best employees is a challenge for the companies Six Sigma is based on project by project improvement approach improvement projects are selected based on organizational strategy these projects are customer and profit focused a team works on the selected project and resolves the issue the financial benefits from the project are calculated there is a reward and recognition system to motivate these are some of the gains achieved from implementing Six Sigma this slide is from the annual report of General Electric the main thing to note on this slide is that you will have to invest initially before you start reaping the gains if you look at the 1996 portion of the graph the cost then was more than the benefits the big part of this cost is company's investment in training people Six Sigma has three different meanings as a statistical tool it focuses on maintaining three point four defects per million opportunities as a process it focuses on D Mac approach of process improvement DMACC or DMAIC means define measure analyze improve and control we will learn d-mac approach later in this course as a philosophy Six Sigma means that defects are costly and can be eliminated it aims to deliver the product or the service in most efficient and effective way we have already talked about this subject in the previous slide this is another way of presenting the fact that Six Sigma has three different meanings a philosophy a process or statistics you for any program to be successful the role of top management is undeniably important having said that the question arises what should management do to drive Six Sigma in the organization first and foremost the management should understand the concept of Six Sigma commits itself to its implementation and should actively participate in the process once the management has decided to implement Six Sigma in the organization these are the key issues they need to consider what should be the rate of implementation how will it fit into their existing program how will it be controlled and monitored Six Sigma approach can be summarized into these four points before you improve know what is important to the customer so that you work on parameters that enhance customer satisfaction reduce defects and meet customer specifications DPM o stands for defects per million opportunities attempt should be to target at the center of the specification rather than be within the target range variation is the biggest enemy of quality so attempt to reduce the variation in Six Sigma customer focus is the key priority any improvement is measured by its impact on customer satisfaction Six Sigma improvements are based on facts and data the focus is on the process improvement tools in Six Sigma support proactive management as against reactive management Six Sigma supports optimization of the organization as a whole instead of optimization of departments or functions this is achieved through multi discipline teams when you attempt to achieve perfection there is a chance that you would risk failure Six Sigma methodology has a system of periodic reviews and accepting failures in the equation y equals FX y is the output and X are inputs in data driven approach you observe the effect of process inputs on the process outputs in actual case y or the output may be profit customer satisfaction or the yield this output depends on number of inputs or X to learn here is to solve a problem you work on the root causes and not on the symptoms there are two improvement processes in Six Sigma D Mac and D matvey if you are looking for improving an existing process go for D Mac however if you want to create a new process go for D FSS or design for Six Sigma and it uses D matvey approach we will focus on D Mac approach in this course you

Channel: QualityGurus

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Keywords: six sigma, 6 sigma, dmaic, dmadv, lean sigma, lean six sigma

Id: wEBPVQ7W2wg

Length: 9min 51sec (591 seconds)

Published: Mon Jan 28 2013