Six Sigma What is Six Sigma ?

Six Sigma is a methodology for pursuing • Six Sigma's aim is to eliminate waste and inefficiency, thereby
continous improvement in customer increasing customer satisfaction by delivering what the customer is
satisfaction and profit. expecting.
• Six Sigma is a highly disciplined process that helps us focus on
developing and delivering near-perfect products and services.
Six Sigma is a management philosophy
attempting to improve effectiveness and
• Six Sigma follows a structured methodology, and has defined roles
for the participants.
efficiency.
• Six Sigma is a data driven methodology, and requires accurate
data collection for the processes being analyzed.
The main goal of Six Sigma is to identify,
• Six Sigma is about putting results on Financial Statements.
isolate, and eliminate variation or defects.
• Six Sigma is a business-driven, multi-dimensional structured
approach to:
In our tutorial you will learn what is Six Sigma o Improving Processes
and how to use Six Sigma in an organization. o Lowering Defects
o Reducing process variability
o Reducing costs
o Increasing customer satisfaction
Six Sigma Introduction o Increased profits

The word Sigma is a statistical term that measures how far a given
process deviates from perfection.

The central idea behind Six Sigma is that if you can measure how many
"defects" you have in a process, you can systematically figure out how to
eliminate them and get as close to "zero defects" as possible and
specifically it means a failure rate of 3.4 parts per million or 99.9997%
perfect.

Key Concepts of Six Sigma

At its core, Six Sigma revolves around a few key concepts.

• Critical to Quality: Attributes most important to the customer.

• Defect: Failing to deliver what the customer wants.
• Process Capability: What your process can deliver.
• Variation: What the customer sees and feels.
• Stable Operations: Ensuring consistent, predictable processes to
improve what the customer sees and feels.
• Design for Six Sigma: Designing to meet customer needs and
 process capability. • Six Sigma is based on various quality management theories (e.g.:
Deming's 14 point for management, Juran's 10 steps on achieving
Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first quality ).
on reducing process variation and then on improving the process
capability.
Six Sigma Elements
There are three key elements of Six Sigma Process Improvement.
Myths about Six Sigma:
• Customers
• Processes
There are several myths and misunderstandings about Six Sigma. Few are
• Employees
given below:

• Six Sigma is only concerned with reducing defects.

The Customer:
• Six Sigma is a process for production or engineering.
• Six Sigma can not be applied to engineering activities. Customers define quality. They expect performance, reliability, competitive
• Six Sigma uses difficult-to-understand statistics. prices, on-time delivery, service, clear and correct transaction processing
• Six Sigma is just training. and more.

Today, Delighting a customer is a necessity. Because if we don't do it,

someone else will!
The Benefits of Six Sigma
The Processes:
There are following six major benefits of Six Sigma that attract companies.
Defining Processes and defining Metrics and Measures for Processes is the
Six Sigma: key element of Six Sigma.

Quality requires to look at a business from the customer's perspective, In

• Generates sustained success.
other words, we must look at defined processes from the outside-in.
• Sets a performance goal for everyone.
• Enhances value to customers.
By understanding the transaction lifecycle from the customer's needs and
• Accelerates the rate of improvement.
processes, we can discover what they are seeing and feeling. This will give
• Promotes learning and cross-pollination.
a chance to identify week area with in a process and then we can improve
• Executes strategic change. them.

Origin of Six Sigma
• Six Sigma originated at Motorola in the early 1980s in response to
achieving 10X reduction in product-failure levels in 5 years.
• Engineer Bill Smith invented Six Sigma, but died of a heart attack
in the Motorola cafeteria in 1993 never knowing the scope of the
craze and controversy he had touched off.
The Employees:
The company must involve all employees in Six Sigma Program. Company
must provide opportunities and incentives for employees to focus their
talents and ability to satisfy customers.
This is important to six sigma that all team members should have a well
defined role with measurable objectives.

Six Sigma Organization
Under a Six Sigma program, members of an organization are assigned
specific roles to play, each with a title. This highly structured format is
necessary in order to implement Six Sigma throughout the organization.
There are seven specific responsibilities or "role areas" in the Six Sigma
program. These are:
Leadership:
A leadership team or council defines the goals and objectives in the Six
Sigma process. Just as a corporate leader sets a tone and course to
achieve an objective, the Six Sigma council sets out the goals to be met by
the team. Here is the list of leadership Council Responsibilities,
• Define the purpose the Six Sigma Program.
• Explain how the result is going to benefit the customer.
• Set a schedule for work and interim deadlines.
• Develop a means for review and oversight.
• Support team members and defend established positions.
Sponsor:
Six Sigma sponsor are high-level individuals who understand Six Sigma
and are committed to its success. The individual in the sponsor role acts as
a problem solver for the ongoing Six Sigma project. Six Sigma will be lead
by a full-time, high-level champion, such as an Executive Vice President.
Sponsors are owners of processes and systems who help initiate and
coordinate Six Sigma improvement activities in their areas of
responsibilities.
Implementation leader:
The person responsible for supervising the Six Sigma team effort, who
supports the leadership council by ensuring that the work of the team is
completed in the desired manner.
Implementation leader ensuring success of the implementation plan and
solving problems as they arise, training as needed, and assisting sponsors
in motivating the team.
Coach:
The Six Sigma expert or consultant who sets a schedule, defines results of
a project, and who mediates conflicts or deals with resistance to the
program.
Duties include working as go-between for sponsor and leadership,
scheduling the work of the team, identifying and defining desired results of
the project, mediating disagreements, conflicts, and resistance to the
program and identifying success as it occurs.
Team leader:
The individual responsible for overseeing the work of the team and for
acting as go-between with the sponsor and the team members.
Responsibilities include communication with the sponsor in defining project
goals and rationale, picking and assisting team members and other
resources, keeping the project on schedule, and keeping track of steps in
the process as they are completed.
Team member:
An employee who works on a Six Sigma project, given specific duties
within a project, and deadlines to meet in reaching specific project goals.
The team members execute specific Six Sigma assignments and work with
other members of the team within a defined project schedule, to reach
specifically identified goals.
Process owner:
The individual who takes on responsibility for a process after a Six Sigma
team has completed its work.
Extended Definitions of Roles - Belt
Colors
Many labels have evolved over the years that Six Sigma has been in use.
The assignment of belt colors to various roles is derived from the obvious
source, martial arts. Based on experience and expertese following roles
have evolved.
NOTE: The belt names are one tool for defining levels of expertise and
experience. They do not change or replace the organizational roles in the
Six Sigma process.
Black Belt:
The person possessing this belt has achieved the highest skill level and is
an experienced expert in various techniques. As applied to the Six Sigma
program, the individual designated as a Black Belt will have completed a
thorough internal training program and have experienced work on several
projects.
The black belt holder is usually given the role of team leader, the person
who is responsible for execution and scheduling.
Master Black Belt:
A person who is available to consult with the team or its leadership but
who is not a direct member of the team itself. This may be the equivalent
of the role played by the coach, or for more technical and complex
projects.
The Master Black Belt is available to answer procedural questions and to
resolve the technical issues that come up.
Green Belt:
The Green Belt designation can also belong to the team leader or to a
member of the team working directly with the team leader.
A Green belt is less experienced than the Black Belt but is cast in a key
role within the team.
• If the organization good at responding effectively and efficiently to
new circumstances ?
• Evaluating current overall business results.
• Evaluating how effectively do we focus on and meet customers
requirements ?
• Evaluating how effectively are we operating ?
• How effective are your current improvement and change
management systems ?
• How well are your cross functional processes managed ?
• What other change efforts or activities might conflict with or
support Six Sigma initiative ?
• Six Sigma demands investments. If you can not make a solid case
for future or current return then it may be better to stay away.
• If you already have in place a strong, effective, performance and
process improvement offer then why do you need Six Sigma ?
There could be many questions to be answered to have an extensive
assessment before deciding if you should go for Six Sigma or not. This
may need time and a thorough consultation with Six Sigma Experts to take
a better decision.
The Cost of Six Sigma Implementation:
Some of the most important Six Sigma budget items can include the
followings:
• Direct Payroll for the individuals dedicated to the effort full time.
• Indirect Payroll for the time devoted by executives, team
members, process owners and others involved in activities like
data gathering and measurement.
• Training and Consultation fee to teach people Six Sigma Skills and
getting advice on how to make effort successful.
• Improvement Implementation Cost
Six Sigma Start-up:
Now you have decided to go for Six Sigma. So what's next:
Deploying a Six Sigma within an organization is a big step and involved
many activities including define, measure, analyze, improve, and control
phases. These phases are discussed in subsequent session. Here are some
steps which are required for an organization at the time of starting Six
Sigma implementation.
• Plan your own route: There may be many paths to Six Sigma but
the best is the one that works for your organization.
• Define your objective: Its important to decide what you want to
achieve and priorities are important
• Stick to what is feasible: Set up your plans so that they can match
your influences, resources and scope.
• Preparing Leaders: They are required to launch and guide the Six
Sigma Effort.
 • Creating Six Sigma organization: This includes preparing Black
Belts and other roles and assigning them their responsibilities.
• Training the organization: Apart from having black belts it is DMAIC Methodology:
required to have all employees Six Sigma skilled.
• Piloting Six Sigma Effort: Piloting can be applied to any aspect of
This methodology consists of following five steps.
Six Sigma including solutions derived from process improvement
or design redesign projects.
Define --> Measure --> Analyze --> Improve -->Control
Project Selection for Six Sigma:
• Define : Define the Problem or Project Goals that needs to be
addressed.
One of the more difficult challenges in Six Sigma is the selection of the
most appropriate problems to attack. There are generally two ways to • Measure: Measure the problem and process from which it was
generate projects: produced.
• Analyze: Analyze data & process to determine root causes of
defects and opportunities.
• Top-down: approach is generally tied to business strategy and are
• Improve: Improve the process by finding solutions to fix,
aligned with customer needs. The major weakness is they are too
diminish, and prevent future problems.
broad in scope to be completed in a timely manner (most six
sigma projects are expected to be completed in 3-6 months).
• Control: Implement, Control, and Sustain the improvements
solutions to keep the process on the new course.
• Bottom-up: In this approach Black Belts choose the projects that
are well-suited for the capabilities of teams. A major drawback of
this approach is that projects may not be tied directly to strategic In the subsequent session we will give complete detail of DMAIC
concerns of management thereby receiving little support and low Methodology.
recognition from the top.

DMADV Methodology:
Six Sigma Methodology
This methodology consists of following five steps.
Six Sigma has following two key methodologies:
Define --> Measure --> Analyze --> Design -->Verify
• DMAIC: refers to a data-driven quality strategy for improving
processes. This methodology is used to improve an existing
business process.
• Define : Define the Problem or Project Goals that needs to be
addressed.
• DMADV: refers to a data-driven quality strategy for designing
products & processes. This methodology is used to create new
• Measure: Measure and determine customers needs and
specifications.
product designs or process designs in such a way that it results in
a more predictable, mature and defect free performance. • Analyze: Analyze the process for meet the customer needs.
• Design: Design a process that will meet customers needs.
There is one more methodology called DFSS - Design For Six Sigma. DFSS
• Verify: Verify the design performance and ability to meet
customer needs.
is a data-driven quality strategy for designing design or re-design a
product or service from the ground up.

Sometimes a DMAIC project may turn into a DFSS project because the
process in question requires complete redesign to bring about the desired DFSS Methodology:
degree of improvement.
DFSS - Design For Six Sigma is a separate and emerging discipline related
to Six Sigma quality processes. This is a systematic methodology utilizing
tools, training and measurements to enable us to design products and
processes that meet customer expectations and can be produced at Six
Sigma Quality levels.
This methodology can have following five steps.
Define --> Identify --> Design --> Optimize -->Verify
• Define : Identify the Customer and project.
• Identify: Define what the customers want, or what they do not
want.
• Design: Design a process that will meet customers needs.
• Optimize: Determine process capability & optimize design.
• Verify: Test, verify, & validate design.
customer's requirements and to resolve their Critical to Quality issues.
(3) Develop a project charter:
This is a document that names the project, summarizes the project by
explaining the business case in a brief statement, and lists the project
scope and goals. A project charter can have following components
• Project Name
• Business Case
• Project Scope
• Project Goals
• Milestones
• Special Requirements
• Special Assumptions
• Roles and responsibilities of the project team
(4) Develop the SIPOC process map:
A process is defined as the series of steps and activities that take inputs,
add value, and produce an output.
SIPOC is a process map that identifies all the following elements of a
project:
• Suppliers
• Input
• Process
• Output
• Customers
The SIPOC process map is essential for identifying:
• The way processes occur currently.
• How those processes should be modified and improved throughout
the remaining phases of DMAIC
Conclusion:
At the conclusion of the design phase, you should know who the customer
or end user is, their resistance issues, and requirements. You should also
have a clear understanding of goals and the scope of the project including
budget, time constraints, and deadlines.
Six Sigma Measure Phase
During Measure Phase the overall performance of the Core Business
Process is measured.
There are three important part of Measure Phase.
(1) Data Collection Plan and Data Collection
A data collection plan is prepared to collect required data. This plan
includes what type of data needs to be collected, what are the sources of
data etc., The reason to collect data is to identify areas where current
processes need to be improved.
You collect data from three primary sources: input, process, and output.
• The input source is where the process is generated.
• Process data refers to tests of efficiency: the time requirements,
cost, value, defects or errors, and labor spent on the process.
 • Output is a measurement of efficiency. project. This beginning point enables us to locate the cause and effect of
those processes and to seek defect point so that the procedure can be
improved.

(2) Data evaluation:

(3) Failure Mode and Effects Analysis - FMEA:
At this stage, collected data is evaluated and sigma is calculated. This
gives approximate number of defects.
The final segment of the measure phase is called FMEA. This refers to
preventing defects before they occur. The FMEA process usually includes
• A Six Sigma defect is defined as anything outside of customer
rating possible defects, or failures, in three ways:
specifications.
• A Six Sigma opportunity is the total quantity of chances for a
defect. • The likelihood that something will go wrong.
• The ability to detect a defect.
First we calculate Defects Per Million Opportunities (DPMO) and based on • The level of severity of the defect.
that a Sigma is decided from a predefined table:
You may use a rating scale. For example, rate each of these three areas
Number of defects from 1 to 10, with 1 being the lowest FMEA level and 10 being the highest.
DPMO = ------------------------------------------- x The higher the level, the more severe the rating. So a high FMEA would
indicate the need to devise and implement improved measuring steps
1,000,000
within the overall process. This would have the effect of preventing
Number of Units x Number of opportunities
defects. Clearly, there is no need to spend a lot of time on this procedure if
the likelihood of a defect is low
As stated above, here Number for defects is total number of defects found,
Number of Units is the number of units produced and number of
opportunities means the number of ways to generate defects.
Yield to Sigma Conversion Table
For example: The food ordering delivery project team examines 50
deliveries and finds out the following:
Yield % Sigma Defects Per Million Opportunities
• Delivery is not on time (13)
• Ordered food is not according to the order (3) 99.9997 6.00 3.4
• Food is not fresh (0)

So now DPMO will be as follows: 99.9995 5.92 5

13 + 3
DPMO = ----------- x 1,000,000 = 106,666.7 99.9992 5.81 8
50 x 3
99.9990 5.76 10
According to the Yield to Sigma Conversion Table given below 106,666.7
defects per million opportunities is equivalent to a sigma performance of
between 2.7 and 2.8. 99.9980 5.61 20

This is the method used for measuring results as we proceed through a

99.9970 5.51 30 99.1810 3.90 8190

99.9960 5.44 40 98.9300 3.80 10700

99.9930 5.31 70 98.6100 3.70 13900

99.9900 5.22 100 98.2200 3.60 17800

99.9850 5.12 150 97.7300 3.50 22700

99.9770 5.00 230 97.1300 3.40 28700

99.9670 4.91 330 96.4100 3.30 35900

99.9520 4.80 480 95.5400 3.20 44600

99.9320 4.70 680 94.5200 3.10 54800

99.9040 4.60 960 93.3200 3.00 66800

99.8650 4.50 1350 91.9200 2.90 80800

99.8140 4.40 1860 90.3200 2.80 96800

99.7450 4.30 2550 88.5000 2.70 115000

99.6540 4.20 3460 86.5000 2.60 135000

99.5340 4.10 4660 84.2000 2.50 158000

99.3790 4.00 6210 81.6000 2.40 184000

78.8000 2.30 212000 22.0000 0.73 780000

75.8000 2.20 242000 19.0000 0.62 810000

72.6000 2.10 274000 16.0000 0.51 840000

69.2000 2.00 308000 14.0000 0.42 860000

65.6000 1.90 344000 12.0000 0.33 880000

61.8000 1.80 382000 10.0000 0.22 900000

58.0000 1.70 420000 8.0000 0.09 920000

54.0000 1.60 460000 Six Sigma Analyze Phase

Six Sigma aims to define the causes of defects, measure those defects,
50.0000 1.50 500000
and analyze them so that they can be reduced.We will consider five
specific types of analysis that will help to promote the goals of the project.
46.0000 1.40 540000 These are source, process, data, resource, and communication analysis.
Now we will see them in detail:

43.0000 1.32 570000 (1) Source Analysis:

39.0000 1.22 610000 This is also called root cause analysis and attempts to find defects that are
derived from the sources of information or work generation. After finding
the root cause of the problem, attempts are made to resolve the problem
35.0000 1.11 650000 before we expect to eliminate defects from the product.

THE THREE STEPS TO ROOT CAUSE ANALYSIS

31.0000 1.00 690000
• The open step: During this phase of root cause analysis, the
project team brainstorms all the possible explanations for current
28.0000 0.92 720000 sigma performance.
• The narrow step: During this phase, the project team narrows
the list of possible explanations for current sigma performance.
25.0000 0.83 750000
• The close step: During this phase, the project team validates the
 narrowed list of explanations that explain sigma performance.
(2) Process Analysis:
Analyze the numbers to find out how well or poorly the processes are
working, compared to what's possible and what the competition is doing.
Process analysis includes creating a more detailed process map and
analyzing the more detailed map for where the greatest inefficiencies
exist.
The source analysis is often difficult to distinguish from process
analysis.The process refers to the precise movement of materials,
information, or requests from one place to another.
(3) Data Analysis:
Use of measures and data ( those already collected or new data gathered
in the analyze phase) to discern patterns, tendencies or other factors
about the problem that either suggest or prove/disprove possible cause of
the problem.
The data itself may have defect. There may be a case when product or
deliverable do not provide all the needed information. So data is analysed
to find out the defects and attempts are made to resolve the problem
before we expect to eliminate defects from the product.
(4) Resource Analysis:
We also need to ensure that employees are properly trained in all
departments that affect the process.If training is inadequate, you want to
identify that as a cause of defects.
Other resources include raw materials needed to manufacture, process,
and deliver the goods. For example if the Accounting Department is not
paying vendor bills on time and, consequently, the vendor holds up a
shipment of shipping supplies, this becomes a resource problem.
(5) Communication analysis:
One problem common to most processes high in defects, is poor
communication. The classic interaction between a customer and a retail
store is worthy of study because many of the common communication
problems are apparent in this case.
The same types of problems occur with the internal customer as well, even
though we may not recognize the sequence of events as a customer
service problem.
The exercise of looking at issues from both points of view is instructive. A
vendor wants payment according to agreed-upon terms, but the
Accounting Department wants to make its batch processing uniform and
efficient. The disconnect between these type of groups demonstrates the
importance of communication analysis.
Conclusion:
Analysis can take several forms. Some Six Sigma programs like to use a
lot of diagrams and worksheets, and others prefer discussion and list
making. There are many tools which can be used to perform analysis like
Box Plot, Cause and Effect Diagram, Progressive Analysis, Ranking, Pareto
Analysis, Prioritization Matrix, Value Analysis etc. The proper procedure is
the one that works best for your team, provided that the end result is
successful.
Six Sigma Improve Phase
If the project team does a thorough job in the root causation phase of
Analysis, the Improve phase of DMAIC can be quick, easy, and satisfying
work.
The objective of Improve Phase is to identify improvement
breakthroughs,identify high gain alternatives, select preferred approach,
design the future state, determine the new Sigma level, perform
cost/benefit analysis, design dashboards/ scorecards, and create a
preliminary implementation plan.
• Identify Improvement Breakthroughs:
o Apply idea-generating tools and techniques to identify
potential solutions that eliminate root causes.
• Identify/Select High Gain Alternatives:
 o Develop criteria to evaluate candidate improvement (2) Standardization:
solutions.
o
o Think systematically and holistically. One feature of smooth processing is to enable processes to go as smoothly
o Prioritize and evaluate the candidate solutions against the as possible. This usually means standardization. In a manufacturing
solution evaluation criteria. environment, the value of standardization has been proven over and over.
o Conduct a feasibility assessment for the highest value
solutions. We need to devise a control feature to processes so that the majority of
o Develop preliminary solution timelines and cost-benefit work is managed in a standardized manner.
analysis to aid in recommendation presentation and future
implementation planning.

Improvement can involve a simple fix once we discover the causes of (3) Control methods and alternatives:
defects. However, in some cases, we may need to employ additional tools
as well. These include:
The development of a new process of any change to an existing process
requires the development of procedures to control work flow.
• Solution alternatives
• Experiments with solution alternatives
When a process cannot be managed in the normal manner, we need to
• Planning for future change
come up with alternatives short of forcing compliance to the standardized
method.
Six Sigma Control Phase
The last phase of DMAIC is control, which is the phase in which we ensure
that the processes continue to work well, produce desired output results, (4) Responding when defects occur:
and maintain quality levels. You will be concerned with four specific
aspects of control, which are: The final step in a control process is knowing how to respond once a defect
is discovered. The weak links in the procedure,where defects are most
(1) Quality control: likely to occur, can and should be monitored carefully so that defects can
be spotted and fixed before the process continues.
The ultimate purpose in control is overall assurance that a high standard of
quality is met. The customer's expectations depend on this, so control is The response to a defect may be to prevent a discovered flaw from
inherently associated with quality. becoming a defect at all. In the best designed systems, defects can be
reduced to near zero, so that we may actually believe that Six Sigma can
be attained.
Since the purpose to Six Sigma is to improve overall process by reducing
defects, quality control is the essential method for keeping the whole
process on track; for enabling us to spot trouble and fix it; and for judging
how effectively the project was executed and implemented.
Conclusion:
Quality is at the heart of the Six Sigma philosophy. Reducing defects has
everything to do with striving for perfection. Whether we reach perfection The project team determines how to technically control the newly
or not, the effort defines our attitude toward quality itself. improved process and creates a response plan to ensure the new process
maintains the improved sigma performance.
Six Sigma Technical Tools
This section will give an overview of the 10 most important technical tools
which a Six Sigma team member needs to master as they progress
through the DMAIC methodology.
While these tools are considered technical in nature, most of them are
relatively easy to learn and apply. They are covered in the order they are
used in the DMAIC methodology.
Tool #1 The Critical to Quality (CTQ) Tree:
The critical to quality tree is used during the Design Phase of DMAIC. It is
used to brainstorm and validate the needs and requirements of the
customer of the process targeted for improvement.
The steps in creating a CTQ tree are as follows:
• Identify the customer of the process targeted for improvement.
• Identify the need of the customer.
• mathematically that 80 percent of the world's wealth was controlled by 20
• Identify the first level of requirements of the need, that is, some
characteristic of the need that determines whether the customer is
happy with the need.
• Drill down to more detailed level(s) of the requirement if
necessary.
Tool #2 The Process Map:
During the Define phase, the project team creates the first of several
process maps. A process map is a picture of the current steps in the
process targeted for improvement.
A process map has five major categories of work from the identification of
the suppliers of the process, the inputs the suppliers provide, the name of
the process, the output of the process, and the customers of the process.
Each of these steps is summarized as SIPOC to indicate to the team the
steps that must be conducted to complete a process map.
Tool #3 The Histogram:
This tool will be used during the Analysis stage of DMAIC. The project
team will review data collected during the Measure stage of DMAIC.
It is often suggested that the data be organized into graphs or charts to
more easily understand what the data is saying about the process.
Data is of two types - Discrete data ( go/no go, fail or pass ) and
continuous data ( time, hight etc.). For continuous data presentation, the
best tool to use is the histogram.
Tool #4 The Pareto Chart:
Histogram is useful for continuous data same way when the data is
discrete, most teams create a Pareto chart. Discrete data is counted data -
go/no-go, off/on, yes/no, and defect/no defect type data.
An Italian economist Vilfredo Pareto,in the sixteenth century proved
percent of the population. This 80-20 rule eventually proved applicable in
arenas other than economics.
When dealing with discrete data, the project team should create reason
codes for why a defect occurs and count and categorize the data into these
reason codes and a preto chart should be prepared.
Tool #5 The Process Summary Worksheet:
The goal of a Six Sigma project team is to improve effectiveness and
efficiency. Efficiency is measured in terms of cost, time, labor, or value.
The process summary worksheet is a "roll-up" of the subprocess map
indicating which steps add value in the process and which steps don't add
value.
Tool #6 The Cause-Effect Diagram:
The most important tool to assist the project team in determining root
causation is the cause-effect diagram. This tool captures all the ideas of
the project team relative to what they feel are the root causes behind the
current sigma performance and finally help in finding a root cause of the
problem.
Tool #7 The Scatter Diagram:
Once ideas have been prioritized after use of the cause-effect diagram, the
most important thing the project team does is validate the remaining ideas
with fact and data.
The scatter diagram takes an idea about root causation and tracks
corresponding data in the response the team is trying to improve. The
team can validate an idea about root causation through one of three
methods. Using basic data collection, a designed experiment, or through
the scatter diagram.
Tool #8 The Affinity Diagram:
An affinity diagram is used to help sort and categorize a large number of
ideas into major themes or categories. It is especially useful when the
team is ready to brainstorm solutions in the Improve stage of DMAIC. The
steps in creating an affinity diagram are:
• Have each team member write one idea per Post-it note and post
on a wall randomly.
• As ideas are read off for clarification, sort ideas into similar groups
• Create a 'header' card for each general category of ideas below it.
Tool #9 The Run Chart:
We have discussed the histogram and Pareto chart. Think of both of these
tools as similar to a camera where a snapshot of the process has been
taken. But the run chart is similar to a camcorder, recording some process
element over time.
Tool #10 The Control Chart:
Similar to a run chart, a control chart uses the data from a run chart to
determine the upper and lower control limits. Control limits are the
expected limits of variation above and below the average of the data.
These limits are mathematically calculated and indicated by dotted lines.
Conclusion:
We saw 10 major technical tools a project team member uses during the
time they are on a Six Sigma team. These are not the only tools a Six
Sigma team may use. However, the tools covered here are those that are
most common for every team member to be aware of and knowledgeable
about.
Six Sigma Defect Metrics
Before we go ahead, lets define two terms:
• A Six Sigma defect is defined as anything outside of customer
specifications.
• A Six Sigma opportunity is the total quantity of chances for a
defect.
Here are various formulae to measure different metrics related to Six
Sigma Defects
Defects Per Unit - DPU
Total Number of Defects
DPU = ------------------------
Total number of Product Units
The probability of getting 'r' defects in a sample having a given dpu rate
can be predicted with the Poisson Distribution.
Total Opportunities - TO
TO = Total number of Product Units x Opportunities
Defects Per Opportunity - DPO
 Total Number of Defects • Components of Six Sigma are Customer, process and Employees.
DPO = ------------------------ • Six Sigma implementation requires following roles:
Total Opportunity o Business Leader
o Sponsor
o Black Belt
Defects Per Million Opportunities - DPMO o Master Black Belt
o Green Belt
DPMO = DPO x 1,000,000 • Six Sigma generic cycle includes Define, Measure, Analyze,
Improve, Control Phases.
• Six Sigma is Customer focus, Customer focus, Customer focus.
Defects Per Million Opportunities or DPMO can be then converted to sigma
values using Yield to Sigma Conversion Table given in Six Sigma - Measure
Phase. What's Next:
According to the conversion table This tutorial may be just a beginning of your journey with Six Sigma and
you would have to go too far.
6 Sigma = 3.4 DPMO
There are many resources available on the net which you would have to
explore to understand Six Sigma. We have listed down few resources
Resource Section.
How to find your Sigma Level
You would also like to through all the important terms used in Six Sigma.
Check them in Glossary Section...
• Clearly define the customer's explicit requirements.
• Count the number of defects that occur. "As Is" Process Map
•
• Determine the yield-- percentage of items without defects.
Depicts a process as it is, currently. "As is" process maps are usually
• Use the conversion chart to determine DPMO and Sigma Level. characterized by several input options, bottlenecks and Multiple handoffs,
inspections & rework loops.
Simplified Sigma Conversion Table
It is the starting point to understanding how a process is running. It
If your yield is: Your DPMO is: Your Sigma is: becomes a "Should Be" map once all non-value added activities have been
removed from the "As Is" process, after careful analysis.
30.9% 690,000 1.0
62.9% 308,000 2.0 "Should be" Process Map
93.3 66,800 3.0
99.4 6,210 4.0
A depiction of a new and improved version of a process, used in DMAIC
99.98 320 5.0 and iDMAIC projects, where all non-value added steps have been removed
99.9997 3.4 6.0 and based on:
Six Sigma Summary
We can summaries following points: • Everything being done right the first time
• Customer requirements built into the process
• Flexibility to meet multiple customer types or requirements
• Six Sigma is a philosophy of quality improvement
• Design with "process" vs. "functional" mindset
•
• Limited handoffs and inspections
• Six sigma is 3.4 defects in one million opportunities (DPMO).
 • Ease to document, manage, train and control
• Several possible inputs
• Bottleneck eliminated
• Handoffs, inspection & rework loops no longer needed
Affinity Chart
An affinity diagram is a tool for organizing large quantities of information
from many people. It is often used with Brainstorming and other creative
thinking activities. The ideas are usually written on sticky notes, then
categorized into groupings of similar ideas.
It sorts a large quantity of unorganized information into related categories.
It encourages creative thinking, helps identify patterns in mountains of
data and encourages people to work collaboratively.
It will be used to analyze customer data that is based on comments rather
than numerical ratings, sort out complex problems or issues, and organize
opinions on any topic.
Analyze Phase ( (DMAIC)
The goal of the Analyze phase is to identify root causes of the problem and
confirm them with data. Solutions in the next phase, Improve, will be
based on the accurate definition of these root causes. A map of the current
process is also reviewed to determine which steps are necessary and
which steps do not add any value.
When completed, this step will help determine the solution that best
addresses root causes. The better understood the root causes, the more
effective the solution.
Area SIXSIGMA Council
Leadership group (Area VP, AMD, AD, MBBs and often GM's) guiding the
implementation of quality and SIXSIGMA within the organization;
establishes, reviews, and supports the progress of SIXSIGMA DMAIC and
iDMAIC projects. The Area Council is responsible for developing Key focus
areas, reviewing and approving property projects, determining potential
area projects and identifying, developing and sharing best practices.
Assumption Busting
A questioning process that helps identify and eliminate preconceptions or
blind spots that hold people back from proposing or pursuing the best
solution. This approach is needed because people tend to get locked into
conventional patterns of thinking and fail to challenge their conventional
patterns.
Attribute data
Any data not quantified on an infinitely divisible scale. Includes a count,
proportion, or percentage of a characteristic (e. g region, location, room
type ...) or category (e.g., gender: male / female ...). This is in contrast to
"continuous" data that is not limited to categories (e.g. cost in dollars).
Balanced scorecard
Categorizes ongoing measures into a few significant areas such as finance,
process, people and innovation. Scorecards change over time as the
measurement system is refined and the most effective key measures are
selected. Used as a presentation tool to update sponsors, senior
management, and others on the progress of a business or process; also
useful for process owners.
Baseline measures
Data that reflects the performance level that exists at the beginning of an
improvement project, before any solutions are initiated. It is the "Before"
snapshot to be compared later with the "After" view.
Best practice
A completed project (usually, but not always a Six Sigma project) that is
particularly valuable for use in other properties based on meeting these
three conditions:
• Success
• Transferability and
• Speed of benefit realization
A small proportion of projects will be Best Practices and an even smaller
proportion will be required Best Practices.
Black Belt (BB)
An associate fully assigned to SIXSIGMA and trained in the DMAIC
methodology, analytical tools and team leadership skills. Black Belts are
responsible for guiding DMAIC projects to completion. They lead DMAIC
projects, assist with Quick Hits and provide coaching and expert support
for iDMAIC transfer projects. Their role in Best Practice and Innovation
transfer projects is to assist and coach the Import team on the DMAIC
tools and methodology.
Both/And
A narrowing/selection process that seeks to identify solution ideas that are
similar (AND) as well as ideas that are workable together (even when not
similar) ideas (BOTH). This technique helps the team seek connections and
combinations of ideas to develop better and more workable solutions.
Box Plot
A graphic display of groupings of data that compares the groupings to the
others on one chart. An example of the tool would be looking at the
variation in check-in time by different front desk associates.
CTQ (Critical to quality)
Refers to what customers consider important in any given process.
Collecting Voice of the Customer data leads to the discovery of CTQs,
which are translated into distinct requirements that can be measured.
Cause and Effect diagram (Fishbone/Ishikawa)
Brainstorming tool used for proposing root-causes (the "bones of the fish")
for a specific effect (the head of the fish). This can be used in combination
with the Affinity Diagram to determine the major categories. Also
commonly used in combination with the "5 Whys" technique in order to
help people understand the root cause.
Charter
Team document defining the context, specifics, and plans of an
improvement project; includes business case, problem and goal
statements, constraints and assumptions, roles, preliminary plan, and
scope. The charter is to be reviewed with the sponsor to ensure alignment
and revised or refined periodically throughout the DMAIC process based on
data. Starwood has used the Project Definition Form on the E-SIXSIGMA
Tool in order to capture the Charter information.
Checksheet
Forms, tables, or worksheets that are set up ahead of time for people to
use in data collection; it allows for collection of stratified data (e.g.
number of complaints, billing adjustments, etc.) in a consistent way.
Checksheets help standardize data collection by providing space where
people should record data. They are mainly used to collect new data when
no historic data is available.
Common cause variation
Normal, everyday influences on a process. This form of variation is usually
harder to eliminate and will require changes to the process. Problems from
common causes are referred to as "chronic pain". An example of a
Common Cause variation is the number of Employee Call-outs when there
is a change in weather conditions, i.e. snow days in the Rocky Mountains,
where properties commonly experience a greater number of call outs.
Complexity Matrix
A tool used to assist teams in determining the level of complexity of a
project.
This tool is used by the property Six Sigma Council to estimate the
resources required for transfer projects. Understanding the levels of
organizational complexity (change management) and availability of reliable
data will assist the Six Sigma Council in determining how much time &
which resources will be required to implement a project.
Continuous data
Any quantity measured on a continuous scale that can be infinitely
divided; primary types include time, dollars, size, weight, temperature,
and speed; also referred to as "variable data"
Control Phase (DMAIC)
The goal of the Control phase in DMAIC is to evaluate the solutions and
the plan, standardize the solutions, and outline steps for ongoing
improvements including opportunities for using the solutions elsewhere.
The output is:
• Before and after analysis
• A monitoring system
• Completed documentation of results, learning and
recommendations
To pass the Starwood Control tollgate, the team must complete the
following documents and tools: selection of ongoing measures to monitor
performance, process management techniques and systems including
process ownership defined, dashboard charts and/or process management
charts and storyboard.
Control chart
Specialized graph that shows process performance over time; shows
average upper and lower control limits; helps determine the influences of
common (normal) causes or special (unusual) causes.
Correlation
A measure of the degree to which two variables (such as thunder and
lighting or tardiness and/or low productivity) are related (the extent to
which they move together). It is calculated to quantify the strength of the
relationship between the two variables. Correlation does not necessarily
imply a cause & effect relationship. As a simple example, daily high
temperatures and ice cream sales would tend to be correlated: it's
reasonable to conclude that hotter weather causes people to buy more Ice
cream. It can be dangerous, however to assume that a correlation
guarantees that one factor causes the other. Chlorine sales at pool supply
stores, for example may increase as ice cream sales do (I.e., they are
"positively correlated"); but we're pretty sure one doesn't cause the other.
Another cause . hotter weather, perhaps? . happens to affect both.
Cost of poor quality (or COPQ)
Financial measures depicting the impact of problems (internal and external
failures) in the process as it exists; includes labor and material costs for
handoffs, rework, waste or scrap, inspection, and other non-value-adding
activities.
Cpk or Cp (Process capability)
Process capability or the degree to which a process can meet customer
requirements. It is measured against an upper and/or lower specification
limit representing the "extremes" of customer requirements/demands on
the process. Values > 1 indicate a capable process, values < 1 indicate a
process that is not meeting customer requirements
Criteria Matrix
Decision-making tool used when potential choices must be weighted
against whatever key factors (e.g., cost, ease to implement, impact on
customer are most relevant).Encourages use of facts, data, and clear
business objectives in the decision-making.
Customer
Any internal or external person/organization who receives the output
(product or service) of the process; understanding the impact of the
process on both internal and external customers is key to process
management.
Customer requirements
Defines the needs and expectations of the customer; translated into
measurable terms and used in the process to ensure compliance with the
customers' needs. Determining what is CTQ (Critical To Quality) for
customers helps determine customer requirements.
Cycle time
The time it takes to complete a process from start to finish. Includes
actual work time and wait time.
DMADV (Define, Measure, Analyze, Design, and Verify)
Describes the application of SIXSIGMA tools for designing new products
and processes. When to use DMADV:
• A product or process is not in existence at your property and one
needs to be developed.
• The existing product of process exists and has been optimized, and
still does not meet the level of customer specifications or
SIXSIGMA level.
DMAIC
Acronym for a Process Improvement/Management System that stands for
Define, Measure, Analyze, Improve, and Control; lends structure to
Process Improvement, Design or Redesign applications.
DMAIC 1 Training
DMAIC training for Master Black Belts, Black Belts and Green Belts. This
course begins the SIXSIGMA problem-solving methodology (DMAIC),
focusing on first steps of Define, Measure and a portion of Analyze. This
training will arm participants with tools and techniques for embarking on
SIXSIGMA projects.
DMAIC 2 Training
DMAIC training for Master Black Belts, Black Belts and Green Belts. This
course is the conclusion of DMAIC method, finishing Analyze, Improve, and
Control. This training enables participants to solve problems, implement
solutions, and deliver lasting results to their properties. It follows DMAIC
1.
DMAIC 3 Training
DMAIC training for Master Black Belts. This course deepens the
participant's mastery of problem solving and statistical tools. It follows in
sequence with DMAIC 1 and 2.
DMAIC project
Projects that follow the DMAIC methodology led by a Black Belt; will
generally have a duration of 3-4 months and can cross functional
boundaries. A DMAIC project focuses on improving an existing process
using the 5 steps Define, Measure, Analyze, Improve, and Control.
Benefits of DMAIC projects are recorded over a period of 18 months, from
the Control Phase.
DPMO (Defects per Million Opportunities)
Calculation used in SIXSIGMA initiatives to show how much "better" or
"worse" a process is by indicating the amount of defects in a process per
one million opportunities. To calculate this measure, you first need to
determine how many opportunities for defects exist on a single item.
Example: when looking at an electric bill, the customer usually looks first
at the total amount owed, the due date, amount of wattage used, and
perhaps the name and address. That could be classified as four
opportunities. There is a lot more information on the bill itself that may be
important to the electric company, but not as a priority to the customer.
The challenge of DPMO calculation often comes in agreeing on how many
opportunities exist . it's often not a black and white decision. The best
guideline is to count opportunities that directly affect the use of the final
Output. If the end customer does not care about it, it is not an
opportunity.
Dashboard (or Process Scorecards)
A graphical tool that provides a summary update on key indicators of
process performance. It can include "alarms" to show if and when a key
indicator is nearing a problem level. A dashboard is an evolutionary picture
of a process; it changes over time based on what measures are
appropriate for the current process.
Data Collection Plan
A structured approach to identifying the required data to be collected and
the approach to collecting it; typically performed during the Measure
phase of a DMAIC project. The Data Collection Plan includes: the measure,
the measure type, data type, operational definition, and the sampling plan
if new data is necessary.
Decision tree
Used during the SIXSIGMA Council process to determine project selection
weighting. Focuses properties on the area (either Revenue, Cost Reduction
or ASI, GSI) that needs the greatest attention to achieve overall property
goals.
Defect
Any instance or occurrence where the product or service fails to meet
customer requirements.
Defect opportunity
A potential defect on a unit of importance to the customer; example:
specific fields on a form, which creates an opportunity for error that, would
be important to the customer. There are generally multiple defect
opportunities per unit.
Defective
Any unit with one or more defects.
Define Phase (DMAIC)
In this first phase of DMAIC, the project's purpose and scope are defined.
Background information on the process and customer is collected. The
output of this phase includes a clear statement of the improvement (i.e.
business case and Project Definition Form), a high-level map of the
process (SIPOC), and a list of what is important to the customer. The
Define Phase is also closely linked to the next phase, Measure. Because
the DMAIC cycle is iterative, the process, problem, flow, and requirements
should be verified and updated for clarity throughout the other phases.
Deployment Process Map
A map or graphical view of the steps in a process shows the sequence as it
moves across departments, functions, or individuals. This type of process
map shows "hand-offs" and the groups involved. It is also known as a
functional or cross-functional flowchart or map.
Descriptive Statistics
A statistical profile of the collected data; these measures include measures
of averages, variation, and other numbers which help team members
assess "how bad" a problem is and to pinpoint where to focus further
analysis and solutions.
Design for SIXSIGMA (DFSS)
Describes the application of SIXSIGMA tools to product development and
Process Design efforts with the goal of "designing in" SIXSIGMA
performance capability. This is in contract to "SIXSIGMA Improvement".
Discounted Cash Flows (DCF)
A method of financial analysis that allows comparisons of dissimilar
projects on the basis of their overall value in today's dollars. DCF converts
future cash flows into equivalent current dollar equivalents.
Discrete data (Also known as Attribute Data)
Any data not quantified on an infinitely divisible scale. Includes a count,
proportion, or percentage of a characteristic (e. g region, location, room
type, ...) or category (e.g., gender: male / female, ...).This is in contrast
to "continuous" data that is not limited to categories (e.g. cost in dollars).
Division SIXSIGMA Council
Leadership group (Presidents and direct reports, Division SIXSIGMA
leader, AMDs, and often MBBs and GMs) guiding the implementation of
quality and SIXSIGMA within the division; establishes, reviews, and
supports the progress of SIXSIGMA DMAIC and iDMAIC projects. The
Division Council is responsible for driving the SIXSIGMA initiative within
that division and is accountable for project, process and business results.
Documentation
Documentation is a historical account of the activities and decisions made
throughout a DMAIC project, Quick Hit, and iDMAIC project. Used to
facilitate sharing of best practices across an organization and as part of
the project close-out process.
E-SIXSIGMA Project Tool (eTool)
Online database capturing project (DMAIC, Quick Hit and iDMAIC)
information including the proposed project goals, problem statement,
projected cost and benefits, as well as tollgate documentation information
from each phase of DMAIC and iDMAIC projects. It also captures the
projects' actual benefits over a period of 12 to 18 months after the Control
phase of DMAIC and iDMAIC projects.
Effectiveness
Measures related to how well the process output(s) meets the needs of the
customer (e.g., on-time delivery, adherence to specifications, service
experience, accuracy, value-added features, customer satisfaction level);
links primarily to customer satisfaction.
Efficiency
Measure related to the quantity of resources used in producing the output
of a process (e.g., cost of the process, total cycle time, resources
consumed, cost of defects, scrap, and/or waste); links primarily to
company profitability.
External failure
When defective units pass all the way through a process and are received
by the customer.
FMEA
A useful technique for preventing future problems and reducing risks to a
solution. Acronym for Failure Modes and Effects Analysis.
Used to identify and assess errors & defects which could result in a threat
to quality, safety or reliability; it is useful in implementing improvements,
redesign or design of processes. Also a tool for process owners to build
prevention and contingency steps into the project plan.
Fishbone Diagram
See Cause & Effect Diagram.
Five Whys
Five Whys are often used to generate a cause and effect. It is the
technique of asking "Why" five times in order to dig into each potential
cause. "Why" is asked until the root cause is revealed. Additional
questioning then becomes meaningless. 5 questions is just a reference
point, at times it may take you 3, 10 or more to get to the root cause.
Force field analysis
A list of the factors that support and factors that "hurt" an idea;
"restraining" factors are listed on one side of the page and "driving forces"
listed on the other.
Used to reinforce the strengths (positive ideas) and overcome the
weaknesses or obstacles.
Frequency Plot or Histogram
Shows the shape or distribution of the data by showing how often different
values occur.
It summarizes data from a process and graphically represents the
frequency distribution in bar form. It helps to answer the question: "Is the
process capable of meeting my customer requirements".
It will be used to display large amounts of data that are often difficult to
interpret.
Functional Map
See Deployment Process Map.
Future focused cause & effect
A traditional cause & effect diagram used for brainstorming future actions
employed during the Improve phase of a DMAIC project.
Gantt Chart
A project planning and management tool that displays all the tasks or
activities associated with a project or initiative as well as the
relationships/dependencies between these tasks. Resources, completion
status, timing and constraints are all shown in the chart.
Global SIXSIGMA Council
Leadership group (Starwood's Senior Operating Committee and Division
Presidents) guiding the implementation of quality and SIXSIGMA within
the organization; establishes, reviews, and supports the progress of
SIXSIGMA DMAIC and iDMAIC projects. The Global SIXSIGMA Council is
responsible for designing and driving SIXSIGMA throughout Starwood.
Goal statement
Description of the intended target or desired results of Process
Improvement or Design/Redesign activities; usually outlined during the
proposal phase of the PDF, revised in the Define phase of a DMAIC project
and supported with actual numbers and details once data has been
obtained. This information is recorded in the E-SIXSIGMA Project Tool.
Green Belt
Associates trained to the same level as Black Belts, but not on full-time
assignment to SIXSIGMA. Green Belts assignments will vary. They may do
DMAIC projects, lead smaller SIXSIGMA projects on a part-time basis,
serve on larger projects as team members, and/or undertake
implementation of Quick Hits or Innovation Transfer projects.
Handoff
Any time in a process when one person (or job title) or group passes the
item moving through the process to another person; a handoff has the
potential to add defects, time, and cost to a process.
Hawthorne Effect
An increase in worker productivity that results from the psychological
stimulus of being temporarily singled out and made to feel important. A
group working on a project may be receiving a lot of attention and their
performance may temporarily improve; when this attention decreases, the
worker motivation may decline.
Histogram or Frequency Plot
See Frequency Plot.
Hypothesis statement
A complete description of the suspected causes of a process problem.
IRR
Internal Rate of Return. A way to compare potential projects by calculating
the financial value of a project against the investment required. All else
being equal, projects with a larger internal Rate of Return are more
attractive investment opportunities.
Impact/Effort Matrix
A graphical representation of different projects plotted along two axes (Y =
Impact, X = Effort). A project selection tool that allows comparison of
dissimilar projects during the project selection portion of the SSC process.
Implementation Plan
A project management tool used in the "Improve" stages of DMAIC and
iDMAIC, compiling tools such as Stakeholder Analysis, FMEA, Poka-yoke,
SOP's and pilot results (if conducted) in a consolidated format.
Implementing a process improvement - or a new process design . requires
diligent project management skills. Any project begins with a plan: What
do we have to do? How long will it take? Who will do the work? What order
will things get done and when? Executing the implementation needs to be
proactive and focused. Using this project management document makes it
possible to coordinate all of these aspects in a timely manner.
Improve Phase (DMAIC)
The goal of improve phase is to pilot and implement solutions that address
root causes. This step helps to eliminate any errors/false starts when the
team finally implements the solution. Additionally, a plan is created for
how results will be evaluated in the next phase, Control. The key
components of Starwood Improve tollgate are a strong implementation
plan, evidence that the root causes are addressed through the preferred
solution, training of stakeholders, and release of resources required for
implementation.
Innovation Transfer
The successful transfer of a new idea, method or solution from one
property to another may be a Quick Hit, Best Practice, or any other
innovation.
Input
Any product, service, or piece of information that comes into the process
from a supplier.
Input measures
Measures related to and describing the input into a process; can be
predictors of process and output measures. Examples of input measures
include guest volume, time of day, and number of reservations.
Ishikawa Diagram
See Cause & Effect.
Kano Analysis
A graph of how customer satisfaction is effected by a particular problem,
change, or other variable. The graph is divided into three regions of
customer reactions to the variable: "Dissatisfiers", "Satisfiers" and
"Delighters".
This tool is intended to help DMAIC teams prioritize resources to focus on
the most important customer requirements.
Leading SIXSIGMA Training (LSS)
An introduction course for top-management to SIXSIGMA at Starwood, the
SIXSIGMA problem-solving methodology (DMAIC), and the project
selection process. It is also an intensive Team Leadership workshop.
Participants include all General Managers and Corporate Leadership from
Director level and above.
Leading Teams Training (LT)
A Team Leadership workshop designed to give participants the necessary
skills to be able to lead teams in a challenging environment. The
participants, Master Black Belts Black Belts, and Green Belts will also be
introduced to the SIXSIGMA problem-solving methodology (DMAIC) and
the project selection process.
Learning Cycle
An individual and team based learning exercise that helps individuals
identify their own and others' views on the team decision making process
& the team's overall performance.
This tool helps teams share information, reach decisions, and build
consensus. It shows that groups working together make higher quality
decisions that individuals working alone. It creates a norm for working as a
group in a systematic way and establishes the assertion that better
process makes for better outcomes.
Learning Map
An experiential, accelerated and high-involvement learning activity to
introduce SIXSIGMA concepts and the initiative at each Starwood
property. It consists of a table-sized visual "SIXSIGMA: Innovation and
Improvement" map and a set of cards that direct the participants through
a discovery learning activity. The target audience for this learning activity
is all associates at all Starwood properties.
Master Black Belt (MBB)
A SIXSIGMA business champion and coach for Black Belts. The MBB is
trained in the DMAIC process, analytical tools, and facilitation skills. The
MBB is responsible for project selection for the Property and Area,
ensuring that the DMAIC process is being implemented, and that all
projects are on-track towards completion.
Measure (General Definition)
A numerical evaluation of based on observable data. A few examples of
measures could be number of new reservations per day, the number of
check-ins per week, the number of employees scheduled per shift.
Measure Phase (DMAIC phase)
The goal of the Measure phase is to focus the improvement effort by
gathering information on the current situation. During the Measure phase:
• Baseline data is gathered on current process performance
• Data is sought that pinpoints problem location or occurrence
• A more focused problem statement is developed
These outputs will provide the basis for the next phase, Analyze.
Moment of Truth
Any event or point in a process when the internal/external customer
comes in contact with a process. At each of these points the customer has
an opportunity to form an opinion (positive, neutral, or negative) about
the process or organization. Examples of "moments of truth" include
speaking to reservations, having dinner delivered to a room, or phoning
for a wake-up call.
Multiple Regression
What is it? Quantitative method relating multiple factors to the output of a
process. The statistical study of the relationship of a combination of
multiple variables (X1 X2 X3...Xn) to a single output Y. For example,
timeliness of room service can be studied by quantifying staffing level,
staff training, and room occupancy.
Multivoting
A narrowing or prioritization tool. Faced with a list of ideas, problems,
causes, etc., each member of a group is given a set number of "votes".
Those items or issues receiving the most votes get further
attention/consideration.
NPV
Net Present Value. The equivalent value in today's dollars of a stream of
future cash flows. NPV calculation seeks to quantify the concept that
money received in the future is worth less than money received today.
Non-value-adding activities
Any steps in a process that do not add value to the customer or process.
Examples include rework, handoffs, inspection, delays.
Operational definition
A clear, precise definition of the factor being measured or the term being
used; ensures a clear understanding of terminology and the ability to
collect data or operate a process consistently.
Optional Best Practices
A completed project (usually, but not always a Six Sigma DMAIC or Quick
Hit project) that is particularly valuable for use in other properties based
on meeting these three conditions:
• Success
• Transferability and
• Speed of benefit realization
Specific criteria are used by Division or Global Council to nominate & select
best practices. Properties have the choice whether or not to import an
optional best practice.
Original Team (Original DMAIC/Quick Hit project team)
The team that originated and completed the original process improvement
project (DMAIC or Quick Hit) in their property. The role of the Original
Team is to ensure proper project documentation to ease transfer and to
provide advice, clarification and assistance to teams importing their
project.
Output
Any product, service, or piece of information coming out of, or resulting
from, the activities in a process.
Output measures
Measures related to and describing the output of the process; total
figures/overall measures.
Pareto Principle and Chart
A Pareto Chart is a data display tool based on Pareto Principle; or 80/20
rule. It is used to help a team focus on the specific causes or issues that
will have the greatest impact if solved. It displays the relative importance
of problems/issues in a simple, easy to interpret visual format.
Pilot
Trial implementation of a solution on a limited scale to ensure its
effectiveness and test its impact.
Plan-Do-Check-Act (or PDCA)
Basic model or set of steps in continuous improvement; also referred to
"Shewhart Cycle" or "Deming Cycle". This tool is an important element of
the "Control" phase of a project. It is designed to ensure that everyone is
using the process according to the tested methods.
PDCA is a Quality Control Chart, built with three columns titled "Plan/Do",
"Check", and "Act". The "Plan/Do" or first column is dedicated to capture
the essential steps of a process, in the form of a flowchart. The "Check"
column describes what you will check in the process to monitor its quality.
The "Act" column describes how the process operators should react
depending of what they find in the measures.
Poka-Yoke
Poka-Yoke is a Japanese term for "mistake proofing. Mistake proofing
typically looks at every step in the process in detail, and uses creative
thinking to develop ways to keep errors from occurring. Examples include,
required fields on a computer screen, cars seat belt alarm, double entry
passwords, and electric eye on elevator or garage door.
Precision
The accuracy of a measurement. When used in reference to sampling, this
entails how much of change you need to be able to detect. As the need for
precision increases, so does the sample size.
Preliminary plan
Used in the early phase of a project, when developing milestones for team
activities related to process improvement; includes key tasks, target
completion dates, responsibilities, potential problems, obstacles and
contingencies, and communication strategies.
Problem/Opportunity statement
Process
A series of steps or actions that lead to a desired result or output. A set of
common tasks that creates a product, service, process or plan that will
satisfy a customer or group of customers.
Process Owner
Process owners are exactly as the name sounds - they are the responsible
individuals for a specific process. For instance, in the legal department
there is usually one person in charge - maybe the VP of Legal - that's the
process owner. There may be a Director of Marketing at your property -
that's the process owner for marketing, and for the Check-in process, the
process owner is typically the Front Office Manager.
Process capability
Statistical measures that summarize how much variation there is in a
process relative to customer specifications.
Process improvement
Improvement approach focused on incremental changes, involves solutions
to eliminate or reduce defects, costs or cycle time; leaves basic design and
assumptions of a process intact.
Process in Control
A statistical concept indicating that a process is operating within an
expected range of variation and that variation is being influenced mainly
by "common cause" factors; processes operating in this state are referred
to as "in control".
Process management
Defined and documented process, monitored on an ongoing basis to
ensure that measures are providing feedback on the flow/function of a
process; key measures include financial, process, people, and innovation.
Process Management along with Process Improvement and Process
Redesign makes up the core structure of the SIXSIGMA Initiative.
Process map or flowchart
Graphic display of the flow or sequence of events that a product or service
follows; it shows all activities, decision points, rework loops, and handoffs.
It allows the team to visualize the process and come to agreement on the
steps of a process as well as examine which activities are duplicated.
Process measures
Measures related to individual steps in the process and/or the overall
process; can be predictors of output measures. Often referred to as "X"
variables in data., they Quantify either effectiveness or efficiency at key
points in the process. Some process measures will be "subsets" of output
measures (e.g. "Cycle time per step" as a Process measure adds up to
"Total cycle time" as an output measure.)
Process redesign
Method of restructuring a process by eliminating handoffs, rework,
inspection points, and other non-value-adding activities; typically means a
"clean slate" design and accommodates major changes or improvements.
Teams use this option when a process does not exist or the process is truly
broken
Project Definition Form (PDF)
A summary of pertinent information that describes a SIXSIGMA project.
This will include items like: problem statement, goal statement, scope,
business case, financial benefits & costs, project timing, resource
requirements, measures, etc. The PDF will evolve and expand over the life
of the project as it moves from one DMAIC phase to another.
Project Management
Use of tools, techniques, and/or software to track a project and prevent
barriers to on-time success.
Project Nomination (iDMAIC)
A Black Belt, MBB, Sponsor, or General Manager associated with a project
nominates the project for Innovation Transfer, using the e-Six Sigma
project tool. The nominator evaluates the project and tabulates a "score"
based on the following guidelines:
• Financial benefits significant and applicable in similar properties?
• A clearly defined process, which is shown to be effective,
functional and cost effective
• Includes documented Voice of the Customer data from a
representative sample
• Entire project is well documented & meets minimum
documentation guidelines
• Has been in Control phase for a minimum of 90 days showing
improved results.
• Must be piloted - arranged by divisional Six Sigma Council
Project Selection (iDMAIC)
During quarterly review meetings, each Division Council reviews all
projects that have been nominated as Best Practices. Associates working
on the projects are invited to provide expertise and insight from the
property. The Council selects projects that meet the criteria for a Best
Practice and have the highest potential value for the Division. Best
Practices that are recommended for an entire brand must be approved by
the Global or multiple divisions SIXSIGMA Council.
Project Sponsor
This member of the executive committee is a strong advocate of the
project and can assist with barriers that may come up. He or she is
accountable for the project's success and can therefore explain to Six
Sigma Council members and everyone in the property the business
rationale for the transfer project and assist with cross-functional
collaboration efforts. He or she will remain up to date on key aspects of
the project by regularly meeting with the team leader and members.
The project sponsor:
• Is a member of the Executive committee
• Is accountable for project success
• Addresses cross-functional or other barriers
• Reviews and tracks progress with team leader
• Advocates for necessary resources
Project rationale
Broad statement defining area of concern or opportunity, including
impact/benefit of potential improvements, or risk of not improving a
process; links to business strategies, the customer, and/or company
values. The Business Case is included in the project description tab of the
E-SIXSIGMA Project Tool.
Property SIXSIGMA Council
The governing group responsible for project selection and status
monitoring at each Starwood property. The members of the SSC are the
General Manager, the Executive Committee and the Black Belt.
Proportion defective
Percentage (or fraction such as 1/8) of defective units; number of
defective units divided by the total number of units.
Propose
The very first phase in the lifecycle of a SIXSIGMA project (DMAIC or
Quick Hit). During this phase, the potential project idea or opportunity is
proposed to the property SIXSIGMA Council. It is entered into the e-
SIXSIGMA tool and may be edited or refined up until the point where it is
submitted for approval as a project. At that time it automatically moves to
the Define stage of DMAIC.
Quick Hit project
A small project that can be quickly implemented and that does not require
a Black Belt to resolve and implement. Quick Hit project ideas come from
many sources. The SIXSIGMA Council assigns them to a Team Leader for
implementation. Quick Hit projects follow the general DMAIC methodology,
but are not subject to as many tollgate reviews due to their shorter
duration and smaller scope. Quick Hits generally have a project duration of
3 to 4 weeks and can be completed within the boundaries of a single
function or department. They contain some Voice of Customer research
and must involve a change in the process. Quick Hit financial benefits are
recorded over a period of 12 months, after the Control phase.
RACI Matrix
A project management tools that identifies all required tasks or activities
and what parties are involved in those tasks as well as their level or type
of involvement.
A RACI is used to ensure clarity on roles and responsibilities in a team
environment. It alleviates problems and fosters a culture of accountability.
A RACI is used to ensure clarity on roles and responsibilities in a team
environment. It alleviates problems and fosters a culture of accountability.
Letter Stands For Description
R Responsible The person who performs the activity; the "doer"
The person with ultimate approval power; the "buck stops
A Accountable
here"
A stakeholder who is involved prior to task completion; "in
C Consulted
the loop"
A stakeholder who is told of the outcome of the task or
I Informed
decision; the "keep in the picture"
ROI
Return on Investment. A measure of the financial returns from an
investment opportunity, expressed as a percentage. All else being equal,
projects with a larger ROI are more attractive investment opportunities.
Random sampling
Method that allows each item or person chosen to be measured, to be
selected completely by chance.
Regression
The statistical study of relationships. An analytical tool that allows an
assessment of a key outcome and extent to which one or more factors
being studied can explain the variation in results see also Simple Linear
Regression; Multiple Regression.
Repeatability/Reproducibility
These are important considerations when setting up measurements.
Repeatability means that: The same person taking a measurement on the
same unit gets the same result. Reproducibility means that: Other people
(or other instruments or labs) get the same result you get when
measuring the same item or characteristic.
Required Best Practices
A project designated by the division or global leadership team that delivers
superior performance when implemented across a class of properties.
"Required" means that all properties in a "class" must implement the best
practice by a specified point in time. A "class" could be based on
geography (e.g., Atlanta area, Italy, global), brand (e.g., Sheraton,
Westin,) or type (e.g., resort property, airport property).
Response Plans
These plans are developed during the "Control" phase for DMAIC and
iDMAIC projects to ensure that the gains achieved can be maintained. As
conditions change, a Response Plan helps monitor results and respond to
problems, manage processes day-to-day, and help practice continuous
improvement.
Reverse SIXSIGMA
MBBs (and BBs) can use this method in times of financial contingency to
help guide restructuring discussions This process enables a property or
department to rapidly focus its restructuring resources on valuable work
and eliminate lesser or non value added work. This standard helps the
team identify:
• What work adds no value in the current environment
• What work adds value at high cost
• What work must be done but with fewer resources and
• What work we must do, but with lowered requirements
When deploying this framework rapidly, the lower risk approach is to focus
first on the non-guest facing processes and outputs (internal customers).
Revision plan
A mechanism (process) for updating processes, procedures, and
documentation.
Rework loop
Any instance in a process when the item or data moving through the
process has to be corrected by returning it to a previous step in the
process; adds time, costs, and potential for confusion and more defects.
An example of a Rework Loop, would be an inspection process, taking
place after production and independent of the production cycle, taking care
of removing defects.
Risk Management
Risk management is about thinking ahead and preparing for things that
may go wrong. This includes identifying potential problems and putting
together preventive and contingent action plans, in order to reduce the
potential damage.
Rolled throughput yield
The cumulative calculation of defects through multiple steps in a process;
calculated as the product of the individual yield at each step (expressed as
a percentage). For example, in an 8 step process with each step at 99%,
the rolled throughput Yield is 99 x 99 x 99 x 99 x 99 x 99 x 99 x 99 or
95%.
Run chart (or time plot, trend chart)
Measurement display tool showing variation in a factor over time; indicates
trends, patterns, and instances of special causes of variation.
SIPOC
A SIPOC is a high-level process map that includes Suppliers, Inputs,
Process, Outputs, and Customers. It defines the Start and end Points of a
process. Quality is judged based on the output of a process. The quality of
the output is improved by analyzing input and process variables. SIPOC is
a very effective communications tool. It ensures that the team members
are all viewing the process in the same way. It also informs leadership on
exactly what the team is working on. Therefore, it should be done in the
early stages of a project.
SIXSIGMA
• Level of process performance equivalent to producing only 3.4
defects for every one million-defect opportunity.
• Term used to describe process improvement initiatives using
sigma-based process measures and/or striving for SIXSIGMA-level
performance, it is also:
• A measure to define the capability of a process
• A goal for improvement that reaches near-perfection
• A system of management to achieve top performance to benefit
the business and its customers, associates, owners and
shareholders.
SIXSIGMA Council Training
A course designed to enable property Executive Committees and senior
leaders to make value-driven decisions by identifying, prioritizing, and
sizing projects for their Black Belts. The participant audience is composed
of General Managers, Hotel Executive Committee Members, Select
Department Heads, and Black Belts.
SIXSIGMA Councils
Leadership group that guides the implementation of quality or SIXSIGMA
within an organization; establishes, reviews, and supports the progress of
quality improvement teams. These councils are conducted at the Property,
Area, Division and Global levels and projects are passed between them for
approval and capture of possible best practices.
SPC
Statistical Process Control; use of data gathering and analysis to monitor
processes, identify performance issues, and determine
variability/capability.
Sampling
Collecting and using a portion of all of the data to draw conclusions (for
example, timing the check-in process for every tenth guest). Sound
conclusions can often be drawn from a relatively small amount of data. We
sample because collecting and looking at all the data may be too
expensive or too time consuming.
Sampling bias
Collecting an unrepresentative "slice" of data that will lead to inaccurate
conclusions. For instance, measuring check-out time only at 12 noon may
lead to inaccurate conclusions about average check-out time.
Scatter plot or diagram
Graph used to show the relationship . or correlation . between two factors
or variables.
Scope
Defines the boundaries of the process; clarifies specifically where the start
and end points for improvement reside (for instance, room service delivery
time from the time of the guest call to knocking on the guest door);
defines where and what to measure and analyze; needs to be within the
sphere of control of the team working on the project . the broader the
scope, the more complex and time-consuming the improvement efforts will
be.
Simple Linear Regression
The statistical study of the relationship between a single variable X to a
single output Y. Fitting a line though a set of data in such a way as come
as close as possible to going through each data point. See also
Regression; Multiple Regression.
Solution Statement
A clear description of the proposed solution(s); used to evaluate and select
the best solution to implement.
Special cause variation
Event that impacts processes only under "special" circumstances . i.e., not
part of the normal, daily operation of the process. An example of a special
Cause for variation in a process, could be "Snow in Phoenix", resulting in a
greater number of Call outs from employees. It differs from Common
Cause in the sense that it is not usual and does not occur on a regular
basis.
Stakeholder Analysis
Identifies all stakeholders impacted by a project and their anticipated and
required levels of support for the project. Typical stakeholders include
managers, people who work in the process under study, other
departments, customers, suppliers and finance. A DMAIC or iDMAIC
project will require a fundamental change in the process. In an effort to
reduce the resistance to change, it is crucial to identify the stakeholders
early on, and to develop a communication plan for each of them. Regular
communication can create more buy-in, identify better solutions, and
avoid pitfalls.
Standard Deviation
The lower case letter "sigma" in the Greek alphabet . s . is a symbol used
to represent the "Standard Deviation" of a population. Standard Deviation
is an indicator of the amount of "variation" or inconsistency in any group
of items or process. For example when you buy fast food that's nice and
hot one day, lukewarm the next . that's variation. Or if you buy three
shirts of the same size and one is too small, that's also variation. Looking
at variation helps Management to much more fully understand the real
performance of a business and its processes.
Standard Operating Procedure (SOP)
A document that compiles all procedures, job tasks, scripts of interactions
with customers or others, data collection instructions and forms, and an
updated list of resources to be consulted for clarification of procedures.
SOP's allow the property/company to maintain reproducibility of all aspects
of a process improvement across shifts, time periods, and leadership
changes.
Storyboard
A visual display outlining the highlights of a project (DMAIC, iDMAIC or
Quick Hit) and its components leading the team to a solution. It is used in
presentations to Sponsor, Senior Management, and others.
Stratification
Stratification means dividing data into groups based on key characteristics.
The purpose of dividing data into groups is to detect a pattern that
localizes a problem and explains why the frequency of impact varies
between times, locations or conditions. For instance, when studying check-
in problems, it may be necessary to look at afternoon, evening, and late
night time periods separately.
Sub-process
A sub-component of a larger process. Example: guest greeting, key
encoding and guest registration are sub-processes within the check-in
process.
Supplier
Any person or organization that feeds inputs (products, services, or
information) into the process.
Systematic sampling
Sampling method in which elements are selected from the population at a
uniform level (e.g., every half-hour, everything twentieth item). This is
recommended for many SIXSIGMA measurement activities. In DMAIC we
are usually sampling from a process. We want to ensure that we can see
the behavior of the process. So we sample systematically or with
subgroups across time. Systematic or subgroup sampling ensures the
sample will be representative of the process because each time period is
represented.
Team leader
For DMAIC projects, the team leader is usually the Black Belt. For Quick
Hit and iDMAIC projects, it is typically the Sponsor or Process Owner. For
large DMAIC projects with more than one BB or MBB, the Team leader is
the main point of contact for the project.
Team member
An active member of a Six Sigma Project team (DMAIC or iDMAIC),heavily
involved in the measurement, analysis and improvement of a process. To
be effective, team memberships require a minimum of 10% time
commitment to a phase of the project. He/she also helps fosters the Six
Sigma culture within the organization by informing /educating fellow
Associates about Six Sigma tools and processes.
Tollgate
A review session that determines whether activities up to that point in a
project have been satisfactorily completed. Tollgates are commonly
conducted to review critical decisions during a project.
Transfer Team
Team formed at a property, with responsibility for importing a Best
Practice (Optional or required), led by a Team leader appointed by the
property Six Sigma Council, and coached by the Black Belt at the property
when needed. Transfer teams will use the iDMAIC methodology to import
innovation into their properties.
Transfer Team Leader (Process Owner/Department Head)
A person selected by the GM and property SIXSIGMA Council to lead an
iDMAIC project based primarily on proximity and decision-making
authority relative to the process involved. This person has primary
responsibility for implementing the project, leading the team, and
interacting with others to gather information and understanding necessary
to succeed. Often, the transfer team leader will be the department head or
process owner of the process being improved with the best practice. The
ability to lead the team and to anticipate clear barriers are important
characteristics for a person in this role.
Transfer Team Member
Associates selected by the Transfer Team Leader and Six Sigma Council to
serve on the iDMAIC project based on their knowledge of key aspects of
the process, experience with the current process, enthusiasm for
improvement, and ability to champion change. Other key factors in
selecting transfer team members include time availability and
representation from relevant functions. All members will be provided
training on the skills and tools used in the transfer process.
Transfer project
A project that a property imports from another property.
Tree diagram
A "branching" diagram that is used to break any broad goal into
increasingly detailed levels of actions. Often used along with brainstorming
or during project management/planning.
Trend Chart
See Run chart.
Value adding activities
Steps/tasks in a process that meet all three criteria defining value as
perceived by the external customer:
• Transforms the item/service toward completion
• Customer cares (willing to pay for it)
• Done right the first time
A project team may suggest improvement ideas to bring their current
process closer to the ideal process comprised only of value-adding
activities.
Value-enabling activities
Steps/tasks in a process allowing work to move forward; can also be
viewed as necessary steps that are not themselves adding value but that
contribute to the delivery of the product or service. Examples include
selecting new employees, purchasing supplies, and balancing the books.
Variation
Changes or fluctuations that determines how stable or predictable a
process may be; affected by environment, people, equipment, methods,
measurements, and materials; any improvement should reduce or
eliminate variation.
Voice of the Customer (VOC)
A systematic approach to gather and analyze customer requirements,
expectations, level of satisfaction and dissatisfaction. Methods of gathering
Voice of the Customer include complaints, surveys, comments, market
research, focus groups and interviews. Voice of the Customer should drive
the process improvement or re-design efforts, and is a key data source in
the project selection process.
WACC
Weighted Average Cost of Capital used to compare the value of 2 or more
potential projects. Discount rate used in financial analysis. Represents the
average cost for a company to finance itself from equity and debt. In
2002, this rate will be 12%, and will be used for all SIXSIGMA projects and
locations.
Web-based Event (Required & Optional Best Practices)
Kick-off communication from the Export team (Black Belt, Project Team
Leader, Sponsor and members), to the transfer Team(s) featuring a well
documented presentation of their Best Practice project. The event takes
place on the Web, in a Synchronous format (participation to a live event)
or Asynchronous format (review of a recorded event).
Yield
Total number of units handled correctly through the process step(s),
typically expressed as a percentage. Yield simply indicates how many
items were delivered at the end of the process with no defect.
iDMAIC
iDMAIC stands for "Innovation DMAIC". iDMAIC is a methodology designed
to ensure consistent and rapid transfer of innovation throughout Starwood.
Innovations can be DMAIC projects, Quick Hits, or other Starwood
Innovations. An iDMAIC project starts with a solution. This solution
addresses a problem or opportunity that a property has in common with
an exporting property. Most tools and documents in iDMAIC are the same
but they're used in a different sequence than in DMAIC; the reason for this
is that the process improvements in iDMAIC are not created but rather
translated and transferred to another property quickly. Some tools will
apply to all transfer projects while others will depend on the tools used in
the export project.
Six Sigma
From Wikipedia, the free encyclopedia
Not to be confused with Sigma 6.
The often-used six sigma symbol.
Part of a series of articles on
Industry
Manufacturing methods
Batch production • Job production
Continuous production
Improvement methods
LM • TPM • QRM
TOC • Six Sigma • RCM
Information & communication
ISA-88 • ISA-95 • ERP
SAP • IEC 62264 • B2MML
Process control
PLC • DCS
Six Sigma is a business management strategy originally developed
by Motorola, USA in 1981.[1] As of 2010, it enjoys widespread
application in many sectors of industry, although its application is not
without controversy.
Six Sigma seeks to improve the quality of process outputs by
identifying and removing the causes of defects (errors) and
manufacturing and business processes.[2] It
minimizing variability inmanufacturing
uses a set of quality management methods, including statistical
methods,, and creates a special infrastructure
infrastruct of people within the
organization ("Black Belts", "Green Belts", etc.) who are experts in
these methods.[2] Each Six Sigma project carried out within an
organization follows
ws a defined sequence of steps and has quantified
targets. These targets can be financial (cost reduction or profit
increase) or whatever is critical to the customer of that process (cycle
time, safety, delivery, etc.).[2]
The term six sigma originated from terminology associated with
manufacturing, specifically terms associated with statistical modelling
of manufacturing processes.. The maturity of a manufacturing process
can be described by a sigma rating indicating its yield, or the
percentage of defect-free products it creates. A six-sigma process is Contents
one in which 99.99966% of the products manufactured are free of [hide]
defects, compared to a one-sigma process in which only 31% are free
of defects. Motorola set a goal of "six sigmas" for all of its 1 Historical overview
manufacturing operations and this goal became a byword for the 2 Methods
management and engineering practices used to achieve it. o 2.1 DMAIC
o 2.2 DMADV
o 2.3 Quality management tools and methods used in Six Sigma
3 Implementation roles
o 3.1 Certification
4 Origin and meaning of the term "six sigma process"
o 4.1 Role of the 1.5 sigma shift
o 4.2 Sigma levels
5 Software used for Six Sigma
6 List of Six Sigma companies
7 Criticism
o 7.1 Lack of originality
o 7.2 Role of consultants
o 7.3 Potential negative effects
o 7.4 Based on arbitrary standards
o 7.5 Criticism of the 1.5 sigma shift
8 See also
9 References
10 Further reading

[edit]Historical overview
Six Sigma originated as a set of practices designed to improve
manufacturing processes and eliminate defects, but its application
was subsequently extended to other types of business processes as
[3]
well. In Six Sigma, a defect is defined as any process output that
does not meet customer specifications, or that could lead to creating
an output that does not meet customer specifications.[2]
Bill Smith first formulated the particulars of the methodology
[4]
at Motorola in 1986. Six Sigma was heavily inspired by six preceding
decades of quality improvement methodologies such as quality
control, TQM, and Zero Defects,[5][6] based on the work of pioneers
such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others.
Like its predecessors, Six Sigma doctrine asserts that:

Continuous efforts to achieve stable and predictable process
results (i.e., reduce process variation) are of vital importance to
business success.

Manufacturing and business processes have characteristics that
can be measured, analyzed, improved and controlled.

Achieving sustained quality improvement requires commitment
from the entire organization, particularly from top-level
management.
Features that set Six Sigma apart from previous quality improvement
initiatives include:

A clear focus on achieving measurable and quantifiable financial
returns from any Six Sigma project.[2]

An increased emphasis on strong and passionate management
leadership and support.[2]

A special infrastructure of "Champions," "Master Black Belts,"
"Black Belts," "Yellow Belts", etc. to lead and implement the Six
[2]
Sigma approach.

A clear commitment to making decisions on the basis of verifiable
data, rather than assumptions and guesswork.[2]
The term "Six Sigma" comes from a field of statistics known
as process capability studies. Originally, it referred to the ability of
manufacturing processes to produce a very high proportion of output
within specification. Processes that operate with "six sigma quality"
over the short term are assumed to produce long-term defect levels
below 3.4 defects per million opportunities (DPMO).[7][8] Six Sigma's
implicit goal is to improve all processes to that level of quality or
better.
Six Sigma is a registered service mark and trademark
of Motorola Inc.[9] As of 2006 Motorola reported over US$17 billion in
savings[10] from Six Sigma.
Other early adopters of Six Sigma who achieved well-publicized
success include Honeywell (previously known as AlliedSignal)
and General Electric, where Jack Welch introduced the method.[11] By
the late 1990s, about two-thirds of the Fortune 500 organizations had
begun Six Sigma initiatives with the aim of reducing costs and
improving quality.[12]
In recent years, some practitioners have combined Six Sigma ideas
with lean manufacturing to yield a methodology named Lean Six
Sigma.
[edit]Methods
Six Sigma projects follow two project methodologies inspired
by Deming's Plan-Do-Check-Act Cycle. These methodologies,
composed of five phases each, bear the acronyms DMAIC and
DMADV.[12]

DMAIC is used for projects aimed at improving an existing
Define design goals that are consistent with customer demands
[12]
business process. DMAIC is pronounced as "duh-may-ick". and the enterprise strategy.

DMADV is used for projects aimed at creating new product or
Measure and identify CTQs (characteristics that
[12]
process designs. DMADV is pronounced as "duh-mad-vee". are Critical To Quality), product capabilities, production process
[edit]DMAIC capability, and risks.

The DMAIC project methodology has five phases:

Define the problem, the voice of the customer, and the project
goals, specifically.

Measure key aspects of the current process and collect relevant
data.

Analyze the data to investigate and verify cause-and-effect
relationships. Determine what the relationships are, and attempt to
ensure that all factors have been considered. Seek out root cause
of the defect under investigation.

Improve or optimize the current process based upon data analysis
using techniques such as design of experiments, poka yoke or
mistake proofing, and standard work to create a new, future state

Analyze to develop and design alternatives, create a high-level
design and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design
verification. This phase may require simulations.

Verify the design, set up pilot runs, implement the production
process and hand it over to the process owner(s).
[edit]Quality
management tools and methods used
in Six Sigma
Within the individual phases of a DMAIC or DMADV project, Six
Sigma utilizes many established quality-management tools that are
also used outside of Six Sigma. The following table shows an
overview of the main methods used.

5 Whys

process. Set up pilot runs to establish process capability.
Analysis of variance

Control the future state process to ensure that any deviations from
ANOVA Gauge R&R

target are corrected before they result in defects. Control
Axiomatic design

systems are implemented such as statistical process control,
Business Process Mapping

production boards, and visual workplaces and the process is
Catapult exercise on variability

continuously monitored.
Cause & effects diagram (also known as fishbone or Ishikawa diagram)

[edit]DMADV
Chi-square test of independence and fits
The DMADV project methodology, also known
Control chart

[12]
as DFSS ("Design For Six Sigma"), features five phases:
Correlation

Cost-benefit analysis


CTQ tree SIPOCidentifies
Six
Sigma analysis (Suppliers,
several key Inputs,
rolesProcess, Outputs, Customers)
for its successful
[13]

Design of experiments implementation.

Stratification

Failure mode and effects analysis (FMEA)
Taguchi methods

Executive Leadership includes the CEO and other members of top

General linear model
Taguchi Loss Function
management. They are responsible for setting up a vision for Six

TRIZ

Histograms Sigma implementation. They also empower the other role holders

Homoscedasticity with the freedom and resources to explore new ideas for
breakthrough improvements.

Quality Function Deployment (QFD)

Champions take responsibility for Six Sigma implementation

Pareto chart
across the organization in an integrated manner. The Executive

Pick chart
Leadership draws them from upper management. Champions also

Process capability
act as mentors to Black Belts.

Quantitative marketing research through use of Enterprise Feedback

Master Black Belts, identified by champions, act as in-house
Management (EFM) systems
coaches on Six Sigma. They devote 100% of their time to Six

Regression analysis
Sigma. They assist champions and guide Black Belts and Green

Root cause analysis
Belts. Apart from statistical tasks, they spend their time on

Run charts
ensuring consistent application of Six Sigma across various

SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) functions and departments.

Stratification
Black Belts operate under Master Black Belts to apply Six Sigma

Taguchi methods methodology to specific projects. They devote 100% of their time

Taguchi Loss Function to Six Sigma. They primarily focus on Six Sigma project execution,

TRIZ whereas Champions and Master Black Belts focus on identifying
[edit]Implementation roles projects/functions for Six Sigma.

Green Belts, the employees who take up Six Sigma
One key innovation of Six Sigma involves the "professionalizing" of
implementation along with their other job responsibilities, operate
quality management functions. Prior to Six Sigma, quality
under the guidance of Black Belts.
management in practice was largely relegated to the production floor

Yellow Belts, trained in the basic application of Six Sigma
and to statisticians in a separate quality department. Formal Six
management tools, work with the Black Belt throughout the project
Sigma programs borrow martial arts ranking terminology to define a
stages and are often the closest to the work.
hierarchy (and career path) that cuts across all business functions.
[edit]Certification
In the United States. Six Sigma certification for both green and black
belts is offered by the Institute of Industrial Engineers[14] and by
the American Society for Quality.[15]
Motorola offers certification for Green Belts, Black Belts and Master
Black Belts not only in the United States but globally. In Germany, the
ESSC-D is offering certification.
In addition to these examples, there are many other organizations and
companies that offer certification. There currently is no central
certification body, neither in the United States nor anywhere else in
the world.
[edit]Origin and meaning of the term "six sigma
process"
Graph of the normal distribution, which underlies the statistical assumptions of the Six
Sigma model. The Greek letter σ (sigma) marks the distance on the horizontal axis
between the mean, µ, and the curve's inflection point. The greater this distance, the
greater is the spread of values encountered. For the curve shown above, µ = 0 and σ
= 1. The upper and lower specification limits (USL, LSL) are at a distance of 6σ from
the mean. Because of the properties of the normal distribution, values lying that far
away from the mean are extremely unlikely. Even if the mean were to move right or
left by 1.5σ at some point in the future (1.5 sigma shift), there is still a good safety
cushion. This is why Six Sigma aims to have processes where the mean is at least 6σ
away from the nearest specification limit.
The term "six sigma process" comes from the notion that if one has
six standard deviations between the process mean and the nearest
specification limit, as shown in the graph, practically no items will fail
to meet specifications.[8] This is based on the calculation method
employed inprocess capability studies.
Capability studies measure the number of standard deviations
between the process mean and the nearest specification limit in sigma
units. As process standard deviation goes up, or the mean of the
process moves away from the center of the tolerance, fewer standard
deviations will fit between the mean and the nearest specification limit,
decreasing the sigma number and increasing the likelihood of items
outside specification.[8]
[edit]Role of the 1.5 sigma shift
Experience has shown that processes usually do not perform as well
in the long term as they do in the short term.[8] As a result, the number
of sigmas that will fit between the process mean and the nearest
specification limit may well drop over time, compared to an initial
short-term study.[8] To account for this real-life increase in process
variation over time, an empirically-based 1.5 sigma shift is introduced
into the calculation.[8][16]According to this idea, a process that fits six
sigmas between the process mean and the nearest specification limit
in a short-term study will in the long term only fit 4.5 sigmas – either
because the process mean will move over time, or because the long-
term standard deviation of the process will be greater than that
observed in the short term, or both.[8]
Hence the widely accepted definition of a six sigma process as one
that produces 3.4 defective parts per million opportunities (DPMO).
A control chart depicting a process that experienced a 1.5 sigma
sig drift in the process
mean toward the upper specification limit starting at midnight. Control charts are used
to maintain 6 sigma quality by signaling when quality professionals should investigate

This is based on the fact that a process that isnormally

normally distributed will a process to find and eliminate special-cause
cause variation.
variation

have 3.4 parts per million beyond a point that is 4.5 standard
sided capability study).[8] So
deviations above or below the mean (one-sided
the 3.4 DPMO of a "Six Sigma" process in fact corresponds to 4.5
sigmas, namely 6 sigmas minus the 1.5 sigma shift introduced to
[8]
account for long-term variation. This takes account of special causes
that may cause a deterioration in process performance over time and
is designed to prevent underestimation of the defect levels likely to be
encountered in real-life operation.[8]
[edit]Sigma levels
See also: Three sigma rule
The table[17][18] below gives long-term
term DPMO values corresponding to
various short-term sigma levels.
s assume that the process mean will shift by 1.5
Note that these figures
sigma toward the side with the critical specification limit. In other
words, they assume that after the initial study determining the short-
short
term sigma level, the long-term Cpk value will turn out to be 0.5 less
than the short-term Cpk value. So, for example, the DPMO figure given
for 1 sigma assumes that the long-term
term process mean will be 0.5
sigma beyond the specification
pecification limit (Cpk = –0.17), rather than 1
sigma within it, as it was in the short-term
term study (Cpk = 0.33). Note that
the defect percentages only indicate defects exceeding the
specification limit to which the process mean is nearest. Defects
beyond the
he far specification limit are not included in the percentages.

Sigma Percent Percentage Short-term Long-term

DPMO
level defective yield Cpk Cpk

1 691,462 69% 31% 0.33 –0.17

2 308,538 31% 69% 0.67 0.17

 [edit]Role of consultants
3 66,807 6.7% 93.3% 1.00 0.5
The use of "Black Belts" as itinerant change agents has
(controversially) fostered an industry of training and certification.
4 6,210 0.62% 99.38% 1.33 0.83 Critics argue there is overselling of Six Sigma by too great a number
of consulting firms, many of which claim expertise in Six Sigma when

5 233 0.023% 99.977% 1.67 1.17 they only have a rudimentary understanding of the tools and
techniques involved.[2]

[edit]Potential negative effects

6 3.4 0.00034% 99.99966% 2.00 1.5
A Fortune article stated that "of 58 large companies that have
announced Six Sigma programs, 91 percent have trailed the S&P
7 0.019 0.0000019% 99.9999981% 2.33 1.83
500 since". The statement is attributed to "an analysis by Charles
Holland of consulting firm Qualpro (which espouses a competing
[edit]Software used for Six Sigma quality-improvement process)."[20] The summary of the article is that

Main article: List of Six Sigma software packages Six Sigma is effective at what it is intended to do, but that it is
"narrowly designed to fix an existing process" and does not help in
[edit]List of Six Sigma companies "coming up with new products or disruptive technologies." Advocates
of Six Sigma have argued that many of these claims are in error or ill-
Main article: List of Six Sigma companies
informed.[21][22]
[edit]Criticism
A BusinessWeek article says that James McNerney's introduction of
[edit]Lack of originality Six Sigma at 3M may have had the effect of stifling creativity. It cites
two Wharton School professors who say that Six Sigma leads to
Noted quality expert Joseph M. Juran has described Six Sigma as "a
incremental innovation at the expense of blue-sky work.[23] This
basic version of quality improvement", stating that "[t]here is nothing
phenomenon is further explored in the book, Going Lean, which
new there. It includes what we used to call facilitators. They've
describes a related approach known as lean dynamics and provides
adopted more flamboyant terms, like belts with different colors. I think
data to show that Ford's "6 Sigma" program did little to change its
that concept has merit to set apart, to create specialists who can be
fortunes.[24]
very helpful. Again, that's not a new idea. The American Society for
Quality long ago established certificates, such as for reliability
engineers."[19]
[edit]Based on arbitrary standards commentators to express the opinion that Six Sigma is a confidence

While 3.4 defects per million opportunities might work well for certain trick.[8]

products/processes, it might not operate optimally or cost effectively

for others. A pacemaker process might need higher standards, for
example, whereas a direct mail advertising campaign might need
lower standards. The basis and justification for choosing 6 (as
opposed to 5 or 7, for example) as the number of standard deviations
is not clearly explained. In addition, the Six Sigma model assumes
that the process data always conform to the normal distribution. The
calculation of defect rates for situations where the normal distribution
model does not apply is not properly addressed in the current Six
Sigma literature.[2]

[edit]Criticism of the 1.5 sigma shift

The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift
as "goofy" because of its arbitrary nature.[25] Its universal applicability
is seen as doubtful.[2]

The 1.5 sigma shift has also become contentious because it results in
stated "sigma levels" that reflect short-term rather than long-term
performance: a process that has long-term defect levels
corresponding to 4.5 sigma performance is, by Six Sigma convention,
described as a "6 sigma process."[8][26] The accepted Six Sigma
scoring system thus cannot be equated to actual normal distribution
probabilities for the stated number of standard deviations, and this
has been a key bone of contention about how Six Sigma measures
are defined.[26] The fact that it is rarely explained that a "6 sigma"
process will have long-term defect rates corresponding to 4.5 sigma
performance rather than actual 6 sigma performance has led several