Six Sigma

SIX SIGMA

POWERPOINT TEMPLATE

DEFINITION – WHAT IS SIX SIGMA? PROCESS IMPROVEMENT

INDICATOR OF Operative and productive processes

Efficiency of processes CUSTOMER REQUIREMENTS

PROBLEM SOLVING METHOD Not quality improvement at all costs

Systematically , data oriented, QUALITY INITIATIVE
(DMAIC-Method, DMADV)
Resounding measurable success like
TOOLBOX increased revenue and lowered costs

Process, analysis, statistics,
problem solving strategy

SIX SIGMA ─ PRINCIPLES

Consequent focus Processing of tasks with
on process relation clear project definitions

Consequent focus Support with a variety
on customer requirements of methodical tools

Decisions based on Introduction of secure solutions
quantified basics
Interconnection to management
Detailed understanding of and business strategy
variation (σ) and its causes

SOURCES FOR SIX SIGMA PROJECTS

STRATEGY PLAN CRITICAL TO-TREES CTS KEY PERFORMANCE INDICATORS
QUALITY COSTS CUSTOMER SATISFACTION ANALYSIS
CT
CTQ CTT

PROJECT TRANSFER

AB

SOURCES FOR SIX SIGMA PROJECTS

The Following Methods are Applied

DMAIC DFSS – DESIGN FOR SIX SIGMA

Improvement of existing processes Creating new products and processes
(DMAIC-Cycle: Define, Measure, Analyze, (DMADV-Cycle: Define, Measure, Analyze,
Improve, Control) Design, Verify)

CHANGE MANAGEMENT PROJECT MANAGEMENT

Tools to initiate, support and control Coordination and implementation of all initiated
the necessary alteration processes projects. Due to state of the art development tools
companies operate faster, more individual, more
rational

DMAIC-CIRCLE / DMAIC-CYCLE

DMAIC-CIRCLE / DMAIC-CYCLE

3D Design

DMAIC ─ PROBLEM SOLVING STRATEGY

DMAIC-Cycle to Measure Current Projects and Their Improvement

Define Measure Analyze Improve Control

 Problem description  Identification,  Analysis of coherence  Select solution  Control and
measuring and of basic cause and alternatives of methodology for
 Identification and validation of the influence parameters Improvement process Improvement
definition of project influential factors and target value measures
objective or improved  Monitoring and
target value  Data collection  Cause analysis  Risk evaluation and Documentation
development of
 Prioritizing and  Process understanding  Process variance, Implementation plan  Securing of
initiating of project quality and for objective sustainability of
 Determination of performance achievement Improvements
actual process ability
and process  Improvement  Evaluate and
performance potential conclude project

DMAIC-CIRCLE / DMAIC-CYCLE

DMAIC-Cycle to Measure Current Projects and Their Sustainable Improvement

IMPROVEMENT AND SUSTAINMENT WHAT IS THE PROBLEM

Implementation of solution Problem description and definition
approach, monitoring, controlling of project objective; initiation
and documenting
of project and planning of milestones

SOLUTION SEVERITY OF THE PROBLEM

Selection of solution Determination of causes
alternatives and implementation for actual problems and cause
of a strategy to reach goals variables, quality, data and facts

REASONS

Processing of the results and problem analysis

SIX SIGMA-SYMBOL WITH DMAIC-PROCESS

Also DMADV or DMADOV

DEFINE Project objectives, project charter,
SIPOC, VOC, CTQ, documentation

MEASURE CTQ measures, data collection, process
performance, test of the measuring system

ANALYZE Process analysis, cause analysis,
value chain analysis, data analysis

IMPROVE Develop solution variety, costs vs. benefits,
selection, implementation strategy

CONTROL Implementation, monitoring, controlling,
documentation, rating and project conclusion

DMAIC-CYCLE

PROJECT CHARTER Business Case Project Frame SIPOC
Milestones
Problems
and Objectives

VOC Core Subject CTQ

-- -

Monitoring of Reaction Plan CTQ Data Collection Plan
Process Performance Gage R&R
Complexity
x1 x1 ≤ b VA
x2 a ≤ x2 ≤ 3ak Reference-
performance
b

Y

PROCESS DOCUMENTATION

Generate Design of Process and Ishikawa Data Analysis
Solutions Target Process Time Analysis
FMEA Design of
Cost-Benefit Development Added Value RPZ = A*B*E Experiments
Analysis of Hypothesis Analysis
x1 y Statistical Tests
Output-Simulation Selection of x2
optimal Varieties (Correlation,
Y = f (x1, x2……x) Regression, ANOVA)

DEFINE – DEFINITION PHASE

DEFINE

PROJECT CHARTER PROCESS PRESENTATION CUSTOMER ORIENTATION

 Description of problem  SIPOC  List of customer
 Setting objectives  Determination of the key requirements
 Determine customer benefit
 Point out net benefits customers and suppliers  Derivation of core problem
 Scope of project  Determination of CTQ´s
 Responsibility
(Critical to Quality)

DEFINE – DEFINITION PHASE

Tasks of the Six Sigma Champion

1 Preparation of project charters with the
Black Belt / Green Belt

2 Focus on customer requirements and
company interest

3 Securing of sufficient project relation within
the team (commitment of all participants)

4 Strict separation from other projects

5 Consideration of economical value, probability
of success and availability of resources

DEFINE – DEFINITION PHASE

Project Charter

Is the documented base Describes background,
of a project meaning and objectives

Determines the expectations Prioritizes
for the team

Works as written interface Lives during the ongoing project
between champion and team (modification and updates)

Includes timings Will be signed by champion
and responsibilities

QUALITY CRITICAL FEATURES (CTQS)

Dimensions of the Six Sigma Measuring System

PROCESS CRITICAL QUALITY CUSTOMER CRITICAL
CRITICAL
Consultation with production Detecting of what is important
engineers and involved employees; (TQC) for the customer with customer
production reports, measures interviews, surveys and customer data

GUIDELINE CRITICAL

Are there legal instructions,
guidelines or standards to be obeyed?

BREAKTHROUGH-STRATEGY

SIX SIGMA STANDARD METHODS
(Optimal Improvement) (Gradual Improvement)

BREAKTHROUGH-
IMPROVEMENT

IMPROVEMENT QUOTA GRADUAL IMPROVEMENT:

 Kaizen
 Re-Engineering
 TQM
 Current Tools and Approaches

12345 DURATION IN YEARS

SIX SIGMA ─ GAUSSIAN BELL CURVE

Normal; Average = 0; SD = 1

0,025 0,025

-1,96 0 -1,96
X

GAUSSIAN DISTRIBUTION ─ BELL CURVE

68.26%

95.4%

Reversal Point

2.16% 99.74% 2.16%

0.13% 34.13% 34.13% 0.13%

13.57% 13.57%

-4 -3 -2 -1 0 -1 -2 -3 -4

Number of standard deviations of average value

Normal distribution as continuous random variable, whose probability density has the form of a bell curve

SHORT TERM AND LONG TERM VARIATIONS

Differentiation

K

L Short Term Period

Long Term Period

THE SIGMA-LEVEL

Measuring Method to Determine Process Performance

SIGMA ERROR RATE DEFECTS PER MILLION* SUCCESS RATE (Y%) PROCESS CAPABILITY (CP)
1 69% 691.462 31 0,33
2 31% 308.538 69 0,67
3 6,7% 66.807 93,3 1,00
4 0,62% 6.210 99,38 1,33
5 0,023% 233 99,977 1,67
6 0,00034% 3,4 99,9997 2,00
7 0,0000019% 0,019

The higher the value, the more efficient is the process

DESIGN FOR SIX SIGMA (DFSS)

Also DMADOV

Define Define project goals Customer analysis / Assemble team
Measure risk assessment
Analyze Capture voice Determine
of customer Determine risk assessment
project schedule
Develop CTQs Review
Review risk assessment
project schedule
Determine CTQs
Design Develop models

Optimize Review CTQs Tolerance testing Design optimization
Verify
Product comparison Document development
against initial specifications

THE FIVE PHASES OF THE DMADV-PROCESS

 Project team / determine  Identify and segment  Implement customers'  Create detailed design  Review performance
project charter customers requirements into design of the new product of
concept  Develop robust design the process (piloting)
 Determine objectives  Identify and analyze with optimal target
and scope of project customer requirements  Rate design concept value/ cost-benefit ratio  Implementation of
(QFD, TRIZ…) work preparation and
 Interfaces to other  Compare existing  Apply DOE production
processes / define products with internal /  Evaluation under
sectors and provide external benchmarking application of FMEA  Continuously monitor
resources (Target Costing…) results of new process
 QFD for CTQ´s

THREE IMPLEMENTATION APPROACHES

IMPLEMENTATION IN COMPANY WIDE IMPROVEMENT USE POTENTIALS
TOP-DOWN-PROCESS STRATEGY PROGRAM
Internal improvement initiative,
Management makes decisions to use improvement potentials within
on the introduction of Six Sigma, the day-to-day routine of the company
which are transferred to all
company levels

TOOLBOX 7X7-TOOLBOX

Success by integration of selected
improvement tools from the 7x7-Toolbox
(mixture of techniques, methods and mental models)

AREAS OF IMPLEMENTATION

Expand Areas of Implementation to Suppliers and Customers

2. IMPLEMENTATION AREA 1. IMPLEMENTATION AREA 3. IMPLEMENTATION AREA

THE OWN COMPANY

P&D Sourcing Production Sales /
Distribution

SUPPLIER Logistics CUSTOMER
Documentation
Organization
Human Resources / Development

Processes do not begin and end in the company, they end with suppliers and customers

12-STEP-IMPLEMENTATION MODEL

BEGINNING 1. Persuasion of the chairman of the board
EDUCATION 2. Nomination of the champion
MEASUREMENT 3. Persuasion of the top management
IMPROVEMENT 4. Program development

5. Selection of Master Black Belts, Black Belts and Green Belts
6. Implementation of training courses
7. First results

8. Assessment of process performance
9. Set targets
10. Call for results

11. Maintenance of Six Sigma
12. Endurance and continuous improvement

SIX SIGMA – SUCCESS FACTORS

Top Down Selection of Specific Selection of
Direction important, clearly understanding adequate Black Belts,
defined and focused
of Roles Green Belts and
Projects Champions

“Good” Training Communication Consequences Integrated
of Success and and Endurance Implementation
new Knowledge

PROJECT ORGANIZATION AND ROLES

Leading Positions and Roles within the Six-Sigma-Program

S Management
SIX Champions
Master Black Belts
G Black Belts
M Green Belts
A Yellow Belts

PROJECT ORGANIZATION AND ROLES

Description of roles and related skills

CONTROL CIRCUIT

CHAMPION MASTER BLACK BELT GREEN BELT YELLOW BELT
BLACK BELT
Responsible for Project manager and Leads projects within his Part of the project
budget and resources; Experienced senior project Coach; executes sector of responsibility; team, which applies
sponsor of Six Sigma manager; management of projects together implementation of smaller Six Sigma methods;
cross-sectional strategic supports execution
projects with other business Six-Sigma projects
projects divisions of projects

TEAM MEMBER

STEERING COMMITTEE

 Responsible for Six Sigma strategy
 Makes decisions about projects and

assigns Black Belts and Green Belts
 Selects the client under strategic aspects
 Carries out reviews in adequate periods
 Consists of leadership members and

pushes the initiatives
 The committee has employees report to

them about the level of achievement of objectives

CHAMPION

 Normally part of the middle or
higher management levels

 Identifies and starts Six Sigma Projects
 Supports and controls their implementation
 Supervises the team in reference

to the objectives determined
 Takes workload pressure off from Black and Green Belts
 Derives improvement potentials

from company objectives
 Responsible for budget and resources

MASTER BLACK BELT

 Extensively secures Six Sigma method
 Experienced senior project manager
 Management of cross-sectional strategic

projects
 Trains Black Belts and supports them in

project work and Black Belt certification
 Coordinates overall projects, project

suggestions and information events

BLACK BELT

 Is project leader/manager for the team
 Carries method competency into the team
 Reports to the head of organization,

the Six Sigma champion
 Is supported by the Master

Black Belt with regard to methods
 Is mostly not or only partially involved

in the daily business
 Coach for Green Belts
 Responsible for project work and

documentation

GREEN BELT

 Project leader of Six Sigma projects
 Has necessary statistical and methodical knowledge

for the performance of projects in teams
 Reports to the head of organization,

the Six Sigma champion
 Is supported by the Master

Black Belt with regard to methods
 Is completely discharged from the daily business
 Leads own projects within his/her field of activity

YELLOW BELT

 Active supporter of Six Sigma projects
 Leads smaller projects independently

or in project teams
 Goal-oriented implementation of improvement measures
 Has overview of methods and tools of Six Sigma
 Usually considered as SME for his working area
 Supports single Green Belts and Black Belts

in implementing more complex projects

TEAM MEMBER

 Contribute their professional expertise
to the project

 Work along the project phases
 Do the necessary team work
 Inform the project leader / project manager

(Black Belts / Green Belts)
 Within the project considered as

part time workers

PROJECT ORGANIZATION AND ROLES

PROFILE CHAMPION MASTER BLACK BELT BLACK BELT GREEN BELT

ROLL  Manager  Management Level  High professional expertise  Trained expert
 “Strong” supporter of  In-depth knowledge of  High potential / management  Acceptance from colleagues
TRAINING  Familiar with methods and
Six Sigma methods and tools trainee
 Process owner  Project experience  Confident in methods tools

 “Master of the procedure” in  Strategic implementation and tools  Leads small improvement
improvement project of important Projects  Leads improvement projects projects
 Trainings and presentations
 Issues the team assignment  Mentor and Coach of BB  Fulltime (at least 1,5 years)  Supports the initiative
 Controls the team  Internal Advisor and Trainer  Supports Black Belts
 Represents results at steering  Further developer of Initiative  4 weeks  Part time (about 25%)
 Own project
committee / Know-how-Transfer  Coaching by MBB  2 Weeks
 Fulltime  Own project
 Usually relatively short  Coaching by Black Belts
(max. 2 days)  > 4 weeks
 Constant training

SIX SIGMA AND CHANGE MANAGEMENT

Improvement processes can be Employees on all levels have to
pushed and sustainable changes support the concept, to achieve
within the whole organizational quick results
culture can be reached
Clear targets convey understanding
Workshops, coaching and team of the significance of Six Sigma to
work might help to develop employees and provide the opportunity
employees into the desired direction to get fast positive results

Top management and Six Sigma Focus is on the individual human being,
steering committee have to be role not on commonplace mechanisms
models and to support innovations
100 percent

SIX SIGMA AND CHANGE MANAGEMENT

The 6 Most Important Aspects of Change Management

FREEDOM OF DECISION TIME

Everybody should be free to judge Six True changes need time
Sigma and related changes objectively

RESPECT RELIABILITY

In many ways respect for each other could Changes must be based on the credibility of
be catalyst for self-esteem and the will to the people within an organization
change
CONSISTENT LANGUAGE
FEELINGS
Words and phrases used must be understood
Everybody wants to be taken seriously correctly by the recipients and generate the
and participate in the overall development ideas intended
of the company

SIX SIGMA 7X7-TOOLBOX

DESIGN STATISTIC PROJECT LEAN CUSOTMER QUALITY MANAGEMENT
TOOLS TOOLS TOOLS TOOLS TOOLS CONTROL TOOLS
TOOLS
Robust design Factorial attempts Decision tree
Quality Function Skill analysis Network plan Standardization Kano-Model Check forms Affinity diagram
Deployment (QFD) Regression analysis Project and team Waste analysis Requirement (including measure Relations diagram
TRIZ Multivariate analysis description Shortage analysis structuring plan) Tree diagram
Pugh concept Statistical tests CTQ-Analysis Flow diagram House of Quality Matrix diagram
selection (ANOVA, ANOM) Tree diagram Supply chain matrix Taguchi loss function Histogram Matrix-Data-Analysis
FMEA / VMEA Hypothesis testing Skill analysis Set-up time analysis Customer interviews Network plan
Fault tree analysis Gage R&R analysis Cost-Benefit analysis Red-Tag-Analysis Customer surveys Pareto-Diagram technique
(FTA) Control charts Conjoint analysis
Tolerance design 7X7 Cause-and-effect
diagram

Graphic comparison

Relations diagram

Control charts

TRAINING STRATEGY PHASE 1: EVENT CYCLE ACTIVITY DESCRIPTION
MEASURE
The program follows the Six Sigma Model, Planning 1 - Initial Meeting and Planning Session
– Training – Application – Review (PTAR). PHASE 2: 2 1 Champion Coordination Meeting  Planning
ANALYZE 3 1 Session 1: Black Belt Training  Training
This model is based on the wide- spread strategy of 4 1 On-The-Job Application Exercise  Application
feed back and its advantages 5 2 Champion Coordination Meeting  Review
6 2 Standard Six Sigma Review
PHASE 3: 7 2 Session 2: Black Belt Training
IMPROVE 8 2 On-The-Job Application Exercise
9 3 Champion Coordination Meeting
PHASE 4: 10 3 Standard Six Sigma Review
CONTROL 11 3 Session 3: Black Belt Training
12 3 On-The-Job Application Exercise
13 4 Champion Coordination Meeting
14 4 Standard Six Sigma Review
15 4 Session 4: Black Belt Training
16 4 Contingency

THREE DIMENSIONS OF SIX SIGMA  Define
 Measure
 Define  Analyze
 Measure  Improve
 Analyze  Control
 Design
 Verify

SIX SIGMA – PYRAMID TOP PERFORMANCE

3D-Design Six Sigma

QUALITY MANAGEMENT FOUNDATION

TQM, EFQM ISO 9000ff, TS 16949

SIX SIGMA – PYRAMID TOP PERFORMANCE
QUALITY MANAGEMENT
2D-Design
FOUNDATION
SIX
SIGMA

TQM,
EFQM

ISO 9000ff,
TS 16949

SIX SIGMA – PYRAMID

3D-Design

TOP PERFORMANCE

QUALITY MANAGEMENT

FOUNDATION

SIX SIGMA – SUCCESS FACTORS

Increase of Company Value through Customer Satisfaction and Customer Loyalty

Evaluation + improvement Customer Loyalty Detect + fulfill future important
of customer’s satisfaction customer requirements
through implementation > DMADV-Process
> DMAIC-Process of future success-critical
customer demands into View through
View through the own market segments front window
rearview mirror

SIX DESIGN FOR
SIGMA SIX SIGMA

PROJECT CHARTER 4. Net Benefit:

PROJECT NAME: 5. Project scale:
1. Problem description: In:
6. Frame:
2. Targets: Out:
3. Benefit: 7. Responsibilities: End:
Champion:
SIGNATURES: Champion: Black Belt:
Team:
8. Time target:
Start:
Black Belt:

PROJECT STATUS SHEET

Location PROCESS DATA Project Number ACTUAL STATUS OBJECTIVES
Process Error rate (PPM) and/or Project Beginning Date
Customer of Process profits (%RTY) Project Concluding Date
Team (Name / Division) Date Project End
And/or cycle time
SUBJECT / REASON INITIAL SITUATION

Project Objectives Costs by non-
conformance or
IN Focus waste (EUR)
OUT Focus
Financial benefit of the project

Cash
Savings Potential
Prevented error costs
Non-financial benefit of the project
-
-
-
Investments / Costs
-
-
-

PROJECT STATUS SHEET

Adjustments from last Status Report / Current Situation

SO FAR CONCLUDED PROCESS STEPS
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CHALLENGES AND BARRIERS
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NEXT STEPS
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TIMING OF PROJECT DATE STATUS
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TIMING OF PROJECT DATE STATUS
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Analyze xx.xx.xxxx 
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IMPORTANT MILESTONES OF THE PHASE “ANALYZE“ xx.xx.xxxx 
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