An Introduction to

Six Sigma Quality

Presented by Darlene Mackay, CSQA

Quality Assurance Institute
 Presentation Agenda
1. What is Six Sigma Quality?
2. Why would a company adopt Six Sigma?
3. Is there a roadmap to Six Sigma?
4. What are the challenges?
5. What are the rewards?
1. What is Six Sigma Quality?
 Originated at Motorola  With the inclusion of Six
in the early 80’s Sigma into a sound
 Helped Motorola win the business system, the
1988 MBNQA major ingredients of a
Total Quality
 Is a methodology for
Management System are
disciplined quality
usually in place
improvement
 Uses a modified Deming
 Juran principles apply
Wheel (PDCA)
 Doesn’t use “Quality” in
the name
 JURAN SAID…

“All quality improvement occurs on a

project-by-project basis and in no
other way.”
What is Six Sigma Quality?
 Six Sigma’s goal is the  Juran once concluded
near elimination of that in the US, close to
defects from any 1/3 of the work done
process, product, or consisted of redoing
what had already been
service. done.
 Depending on the
 The numerical goal is industry, this Cost of
3.467 defects per million Poor Quality (COPQ)
opportunities. could be 20 to 40% of
total effort!
 Six Sigma Process Capability
SIGMA DPMO COPQ CAPABILITY
6 sigma 3.4 <10% of sales World Class
5 sigma 230 10 to 15% of sales
4 sigma 6200 15 to 20% of sales Industry average
3 sigma 67,000 20 to 30% of sales
2 sigma 310,000 30 to 40% of sales Noncompetitive
1 sigma 700,000
What is Six Sigma Quality?
 Strategy includes:  Implementation is top-
– Measure down. CEO drives, and
– Analyze executive management
provides the Champion for
– Improve each project.
– Control  GE’s implementation is
 Improvement projects often the de facto model for
must be integrated with implementation.
the goals of the  Uses concept of “belts” for
organization. levels of competency in Six
 Six Sigma uses a “divide Sigma implementation:
and conquer” approach – MBB = Master Black Belt
as opposed to – BB = Black Belt
Continuous Process – GB = Green Belt
Improvement.
 An Example
Six Sigma Project: Engineering Changes
Define: Large number of changes from client after approving engineering
design. Schedule slipping.
Measure: Number of changes, time involved in changes, compliance to
critical path schedule.
Analyze: No clear authority on client team to establish scope, any of client
team could make changes, verbal communication of changes, conflicting
changes by client team members. Language issues between client and
engineers.
Improve: Regular engineering/client meetings where topics include: scope
for each section and desired objective, known limitations defined, unclear
requirements were questioned and options discussed. Written plan signed
by client representative and engineering lead. Change requests in writing
and signed by client representative. Changes decrease by factor of 4.7 and
schedule met.
Control: Change requests all in writing. Shared approach with other
disciplines on project.
From: www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htm
What is Six Sigma Quality?

 All Six Sigma projects are evaluated

rigorously for financial impact.
 Most important is the financial
cumulative impact of all projects
upon the company’s bottom line.
 Some Results…
 Motorola – 10 years; $11 Billion Savings
 Allied Signal - $1.5 Billion estimated savings
 General Electric – started efforts in 1995
– 1998: $1.2 Billion less $450 Million in costs…
net benefits = $750 Million
– 1999 Annual Report: more than $2 Billion
net benefits
– 2001: 6,000 projects completed; $3 Billion in
savings
 Six Sigma according to GE
“A highly disciplined process that helps us focus on
developing and delivering near-perfect products and
services. The word Six 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. Six Sigma has changed the DNA at GE – it is
the way we work – in everything we do and in every
product we design.”
 2. Why would a company
adopt Six Sigma?
 Concept has been  Continues to evolve at
around for 16 years; all organizational
isn’t just a fad. levels; from CEO and
 Six Sigma is the CFO to the Black Belts
latest name for a and Green Belts.
comprehensive set of  Has shown the most
philosophies, tools, endurance and return
methods, and on investment of any
fundamental such “program” till
concepts. now.
 1. The Roadmap to Six Sigma

North

East West

South

Usually has many twists and turns!

 A Road Map for Six Sigma
 Appoint a Champion
 Select a Cross-functional team
 Develop quantifiable goals
 Develop an implementation plan
 Establish a training program
 Address data collection requirements and issues
 Develop a change control and maintenance program
 Coordinate your road map

 Article by John M. Gross, ASQ, Quality Progress Magazine, November 2001

4. What are the Challenges
of Six Sigma?
 The perception of “Sick
Sigma”
 Culture change
 Understanding the DFSS
(Design For Six Sigma)
 It is not a quick fix nor a
recipe.
 Consultants can’t make
it happen.
 Training – especially
management level
 Takes careful
preparation and a
commitment to the
foundational change
efforts required.
 Statistical analysis is not
generally part of the
engineering discipline in
most IT shops.
What are the Challenges of
Six Sigma?
 Implementation tends to
 Reliability of data from
be uneven and lapses the field.
occur frequently.
 People must not fear
giving “bad news”.
 Not everything has to be  Design is critical and yet
Six Sigma; this was our many IT organizations
downfall on continue to go straight
reengineering efforts! from poor requirements
 Lack of discipline and into coding without the
accountability. benefits of even one
design review.
5. What are the Rewards of
Six Sigma?
 Improved reliability  Increased marketplace
and predictability of viability.
software products  Organizational
and services.
 Increased value to
recognition.
the customers and  Significant reduction
shareholders. in defects.
 Improvements in  Institutionalization of
organizational a “process” mindset.
morale.
 Some References
Joseph M. Juran: Juran’s Quality Handbook
(McGraw-Hill, 1999)

Mikel J. Harry: Six Sigma, A Breakthrough Strategy for

Profitability (Quality Progress, May 1998)

William J. Hill: Six Sigma at Allied Signal, Inc. (Presentation at

1999 Q&P Research Conference, May 1999)

Jack Welch: Six Sigma, the GE Way

Six Sigma Forum Magazine: www.asq.org/pub/sixsigma

Your favorite Search Engine: search on “Six Sigma”