4 of 6 The Breakthrough Strategy.ppt

What is Six Sigma? Six Sigma - The Strategic Initiative Process Systematic Approach to Reducing Defects and cost which impact what is Important to the Customer and the Business Tools Practical, Graphical, Analytical and Instructional methods for “Observing” Process Variables Their Relationships as well as “Managing” their behavior Six Sigma -- What’s it based on? Customer  Anyone who receives product, service or information Opportunity Every chance to do something either “right” or “wrong” Successes vs. Defects The result of every opportunity either meets the Customer Specification or it doesn’t Six Sigma improvement strategy: Know what’s importantto the customer and the business Reduce defect levels by Reducing the variation and Centering around the target If . . . we measured the outcomes of our processes (products, services and information) like volume . . . then, the combined volume . . . should equal??? Determine the total opportunities: Not Good! Better ! . . . But good enough??? Defects per million opportunities... If . . . each glass can hold one million drops . . . and, our process generates one million drops . . . then the number of drops in the “defects” glass represents . . . DPMO converts to . . . sigma! 3.4 DPMO is equal to 6? Which is better: centered . . . or not? Variation -- less is more (better): Less Variation . . . Means fewer defects (if centered) Standard deviation: A metric that displays variation from it’s “target”. One standard deviation around the mean is about 68% of the total “opportunities” for achieving success! If we can squeeze six standard deviations in between our target and the customer’s requirements . . . then: 99.99966% of our “opportunities” are included! The critical relationship: Quantifying process Sigma: Quantifying process sigma: Quantifying process sigma: DPMO and Sigma DPMO and Sigma So, if we can achieve six standard deviations between our target and t