- Summary -
Six Sigma for Managers
24 Lessons to Understand and Apply Six Sigma
Principles in Any Organization
By Greg Brue
1. IMPROVEMENT
1983 MOTOROLA, BILL SMITH
SIX SIGMA; NEARLY PERFECT 99.9997%
BOB GALVIN, CEO MOTOROLA
>16$ BILLION SAVINGS IN 15 YEARS
SIX SIGMA = 3.4 DEFECTS PER 1 MILLION OPPORTUNITIES
ELMININATING DEFECTS ELIMINATES DISSATISFACTION
SIGMA = STANDARD DEVIATION
2. ABBREVIATIONS
DMAIC = DEFINE MEASURE ANALYZE IMPROVE CONTROL
DPMO = DEFECTS PER MILLION OPPORTUNITES
CTQ = CRITICAL TO QUALITY
XY matrix
COPQ = COST OF POOR QUALITY
calculate the costs of
INSPECTIONS, REWORK, DUPLICATE WORK
SCRAPPING REJECTS, REPLACEMENTS, REFUNDS
DEALING WITH COMPLAINS, LOSS OF CUSTOMERS
, LSL = LOWER SPECIFICATION LIMIT
USL = UPPER SPECIFICATION LIMIT
LCL = LOWER CONTROL UNIT
DOE = DESIGN OF EXPERIMENTS
FMEA = FAILURE MODES + EFFECTS ASSESSMENT
MSA = MEASURE SYSTEMS ANALYSIS
FMEA = FAILURE MODES AND EFFECT ANALYSIS
SEV = SEVERITY (= ERNST)
DET = DETECTABILITY
OCC = OCCURRENCE
RPN = RISK PRIORITY NUMBER
SIPOC = SUPPLIERS, INPUTS, PROCESS, OUTPUTS, CUSTOMERS
DOE = DESIGN OF EXPERIMENTS
3. REDUCE DEFECTS, CUT COSTS
MOST US-COMPANIES: 3-4 SIGMA
Q'S
How much are defects costing you?
What’s the cost of scrap and rework?
What’s the cost of excessive cycle times and delays?
What’s the cost of business lost because customers are dissatisfied?
What’s the cost of opportunities lost because you don’t have the
time or the resources to take advantage of them?
What’s your total cost of poor quality?
Why do we measure this?
Why do we measure it in this way?
What does this measurement mean?
Why is this measurement important?
, HELPS
1. Know what your customers want
2. Focus on the vital few factors
3. Control variation in the vital few factors
Challenge answers. & Test assumptions.
Limit the number of metrics—generally, no more than 10.
“Six Sigma is exciting. But it requires tenacity, mental toughness, and,
above all, an unwavering dedication to the pursuit of perfection in
every aspect of business operations.”
4. SET BUSINESS METRICS
Many organizations operate by axiom—they accept certain beliefs as
truths.
METRIC POINTS
1. START WITH CUSTOMERS
What factors are critical to quality for them?
2. MEASURE WHAT MATTERS
Metrics must align with strategy, link tobottom-line results, and
relate to important, regular activities and processes.
3. QUESTION AND CHALLENGE
WHY FOCUS
“Establishing metrics requires dedication, focus, and logic. It also requires
leadership. As manager, you must be a model of critical thinking and
courage to challenge the status quo and underlying assumptions.”
5. USE STATISTICS
REDUCE VARIATION IN THE QUALITY OF OUTPUTS
STANDARD DEVIATION = SIGMA
1 SIGMA OF THE MEAN = 68.2%
2 SIGMA OF THE MEAN = 95.5%
3 SIGMA OF THE MEAN =99.7%
LSL + USL + LCL
The goal of Six Sigma is to reduce the standard deviation of your process
Six Sigma for Managers
24 Lessons to Understand and Apply Six Sigma
Principles in Any Organization
By Greg Brue
1. IMPROVEMENT
1983 MOTOROLA, BILL SMITH
SIX SIGMA; NEARLY PERFECT 99.9997%
BOB GALVIN, CEO MOTOROLA
>16$ BILLION SAVINGS IN 15 YEARS
SIX SIGMA = 3.4 DEFECTS PER 1 MILLION OPPORTUNITIES
ELMININATING DEFECTS ELIMINATES DISSATISFACTION
SIGMA = STANDARD DEVIATION
2. ABBREVIATIONS
DMAIC = DEFINE MEASURE ANALYZE IMPROVE CONTROL
DPMO = DEFECTS PER MILLION OPPORTUNITES
CTQ = CRITICAL TO QUALITY
XY matrix
COPQ = COST OF POOR QUALITY
calculate the costs of
INSPECTIONS, REWORK, DUPLICATE WORK
SCRAPPING REJECTS, REPLACEMENTS, REFUNDS
DEALING WITH COMPLAINS, LOSS OF CUSTOMERS
, LSL = LOWER SPECIFICATION LIMIT
USL = UPPER SPECIFICATION LIMIT
LCL = LOWER CONTROL UNIT
DOE = DESIGN OF EXPERIMENTS
FMEA = FAILURE MODES + EFFECTS ASSESSMENT
MSA = MEASURE SYSTEMS ANALYSIS
FMEA = FAILURE MODES AND EFFECT ANALYSIS
SEV = SEVERITY (= ERNST)
DET = DETECTABILITY
OCC = OCCURRENCE
RPN = RISK PRIORITY NUMBER
SIPOC = SUPPLIERS, INPUTS, PROCESS, OUTPUTS, CUSTOMERS
DOE = DESIGN OF EXPERIMENTS
3. REDUCE DEFECTS, CUT COSTS
MOST US-COMPANIES: 3-4 SIGMA
Q'S
How much are defects costing you?
What’s the cost of scrap and rework?
What’s the cost of excessive cycle times and delays?
What’s the cost of business lost because customers are dissatisfied?
What’s the cost of opportunities lost because you don’t have the
time or the resources to take advantage of them?
What’s your total cost of poor quality?
Why do we measure this?
Why do we measure it in this way?
What does this measurement mean?
Why is this measurement important?
, HELPS
1. Know what your customers want
2. Focus on the vital few factors
3. Control variation in the vital few factors
Challenge answers. & Test assumptions.
Limit the number of metrics—generally, no more than 10.
“Six Sigma is exciting. But it requires tenacity, mental toughness, and,
above all, an unwavering dedication to the pursuit of perfection in
every aspect of business operations.”
4. SET BUSINESS METRICS
Many organizations operate by axiom—they accept certain beliefs as
truths.
METRIC POINTS
1. START WITH CUSTOMERS
What factors are critical to quality for them?
2. MEASURE WHAT MATTERS
Metrics must align with strategy, link tobottom-line results, and
relate to important, regular activities and processes.
3. QUESTION AND CHALLENGE
WHY FOCUS
“Establishing metrics requires dedication, focus, and logic. It also requires
leadership. As manager, you must be a model of critical thinking and
courage to challenge the status quo and underlying assumptions.”
5. USE STATISTICS
REDUCE VARIATION IN THE QUALITY OF OUTPUTS
STANDARD DEVIATION = SIGMA
1 SIGMA OF THE MEAN = 68.2%
2 SIGMA OF THE MEAN = 95.5%
3 SIGMA OF THE MEAN =99.7%
LSL + USL + LCL
The goal of Six Sigma is to reduce the standard deviation of your process
