INTRODUCTION TO

SIX SIGMA GREEN BELT TRAINING

WHAT IS SIX SIGMA?

Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual, and practical definitions. Six Sigma has three different levels:
1. As a metric 2. As a methodology 3. As a management system Essentially, Six Sigma is all three at the same time.

Six Sigma as a Metric

The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO). Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

Six Sigma as a Metric

DEFECTS PER MILLION OPPORTUNITIES (DPMO) 691,463 308,538 66,807 6,210 233 3.4

SIGMAS

QUALITY % 31 69 93 99.38 99.977 99.9997

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Six Sigma as a Methodology

Six Sigma is a business improvement methodology that focuses an organization on:
Understanding and managing customer requirements Aligning key business processes to achieve those requirements Utilizing rigorous data analysis to minimize variation in those processes Driving rapid and sustainable improvement to business processes
At the heart of the methodology is the DMAIC model for process improvement. DMAIC is commonly used by Six Sigma project teams and is an acronym for: Define opportunity Measure performance Analyze opportunity Improve performance Control performance
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Six Sigma as a Methodology

Voice of the Customer Measure Analyze Improve

Define

Control

Institutionalization

The DMAIC Model

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(Six Sigma as a Methodology)

Six Sigma as a Management System

When practiced as a management system, Six Sigma is a high performance system for executing business strategy.

Six Sigma is a top-down solution to help organizations:

Align their business strategy to critical improvement efforts Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are sustained
The Six Sigma Management System drives clarity around the business strategy and the metrics that most reflect success with that strategy. It provides the framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.
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Six Sigma as a Management System

STRATEGY STRATEGY
VOICE OF... VOICE OF... Market Market Customer Customer Employee Employee Business Business

FEEDBACK
BUSINESS OBJECTIVES RESULTS: Top-Level Indicators (Dashboards)

Big Ys

If new product or process

DFSS (DMADV)
Fundamental Redesign

EXECUTION (PROCESS MANAGEMENT)

D S R U I P V P E O S R T S
PROCESS PROCESS

PROCESSES ALIGNMENT TOOLS SKILLS TRAINING

PROCESS PROCESS MAPS MAPS

PROCESS CONTROL

SYSTEMS

Sub Ys
CORE & ENABLING PROCESSES

Y1 y1 Projects

PROCESS IMPROVEMENT Flexible Problem Solving Models WORKOUT SIX SIGMA LEAN SIGMA

The power of the Lean Tools & Principles fully integrated into GE WORKOUT SIX SIGMA LEAN SIGMA DMAIC & DFSS (DMAIC) (DMAIC +) Quick Wins Accelerated Improvement Incremental Improvement Integrated Improvement

Six Reasons Why Business Leaders Love Six Sigma?

1. Six Sigma impacts the bottom line 2. Six Sigma drives strategy execution 3. Six Sigma generates robust, flexible business processes 4. Six Sigma improves human performance across the enterprise 5. Six Sigma is highly scalable 6. Six Sigma is a low risk investment
Note: Robustness is the condition of a product or process design that remains relatively stable with a minimum of variation even though factors that influence operations or usage, such as environment and wear, are constantly changing.

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Six Habits of Six Sigma Leaders

1. Delivering customer value (exhibit passion, listen actively, communicate partnership) 2. Focusing on execution (result-driven, resource conscious, process-oriented) 3. Making sound, data-driven decisions (critical thinking, decisiveness, accountability) 4. Managing performance (set goals, track progress, manage details) 5. Advocating breakthrough improvements (assertiveness, influence, tenacity) 6. Supporting team-based implementations (manage teams, reward teams)

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Six Tools Every SS BB/GB Loves

1. Quality Function Deployment (QFD)helps to drive customer-focused
development across the design process

2. Cause and Effect (C&E) Matrixhelps to facilitate team decision making 3. Failure Modes and Effects Analysis (FMEA)helps to identify and
address weaknesses in a product or process before they occur

4. Control Chartshelps to assess process stability 5. T-Student Test (t-test)helps to validate test results using small sample size 6. Design of Experiments (DOE)helps to make the most of valuable
resources
Business and/or Customer Requirement

6 5 4

Defects

Good

2 1

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Six Reason Why Six Sigma Fails?

1. Lack of visible senior leader sponsorhip 2. Lack of alignment to a clear organization strategy 3. Lack of performance tracking and accountability 4. Failure to link projects to bottom-line impact 5. Insufficient or ineffective alocation of human resources 6. Over-emphasis on rigid approach and technical tools

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SIX SIGMA IMPLEMENTATION AT PT MATTEL INDONESIA

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PT Mattels Vision: A globally competitive manufacturer of premier toy brands through continuous improvement

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L E A N S U P P L Y C H A I N

PRACTICAL PROBLEM (PT Mattels Needs)

STATISTICAL PROBLEM STATISTICAL SOLUTION

S I X

PRACTICAL SOLUTION (MATTELS SMART OBJECTIVES)

SMART = Specific, Measurable, Attainable/Actionable, Result-oriented, Time-bound

S I G M A
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PT MATTELS VISION

PT Mattels COPIS IDENTIFICATION Vision: A globally competitive manufacturer of premier toy brands through CI SMART OBJECTIVES
1. 2. 3. 4. 5. 6. 7. To Increase Direct Labor Efficiency from ____% to ____% To Reduce Scrap from _______ PPM to ______ PPM To Improve Production Schedule Adherence from ______ % to ______ % To Improve Daily Schedule Adherence from _____% to ______% To Reduce Lot Buy Off from _____ PPM to ______ PPM To Reduce Containment Audit from _______ PPM to ______ PPM To Maintain Lost Day Incident Case at Zero Level (Always Zero Goal)

Product Type

Customers

Outputs KPOV (Key Performance Outputs Variables)

CTQ (Critical To Quality),CTS (CT Schedule, CTC (CT Cost)

Processes Processes Needs (Voice of Processes = VOP)

Inputs

Suppliers

#1 #2 #3 #4 #5 #6 etc

Customers Needs (Voice of Customer =

Inputs Suppliers Requi- Requirerements Ments & Selection

VOC)

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COPIS = Customer, Outputs, Processes, Inputs, Suppliers

Six Sigma COPIS Model

Outputs Customers
Steps

Process

Inputs Suppliers
How does Six Sigma Work?

The Voice of the Customer (VOC) is aggressively evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with.

From Mattels Concept to Market: the Voice of the Customer

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PT MATTELS SIPOC PROJECTS

Product Type #1 #2 #3 #4 etc PT MATTELS LEAN SUPPLY CHAIN Suppliers Inputs Processes Outputs Customers

LEAN-SIX SIGMA PROJECTS (PT MATTELS PROJECTS)

LEAN-SIX SIGMA PROJECTS PROJECTS OBJECTIVES LEAN SIX SIGMA TOOLS

APPROACH (DMAIC)
Define Measure Analyze Improve Control

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Six Sigma Way of Transformation Six Sigma Way

Six Sigma Way is a bestin-class change strategy for accelerating improvements in manufacturing processes and services.

Six Sigma Way is:

Mindset/Way of thinking A way of doing manufacturing/servi ce business Methodology/Tools for continual improvement

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Need more information?

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