What is Six Sigma?
– What exactly is Six Sigma? Six Sigma is a project-based approach for improving effectiveness and efficiency. It is a disciplined, customer-focused, data-driven approach for improving the performance of processes, products, or services. Now, the term Six Sigma can be used to refer to a philosophy, a performance metric, or a methodology. As a philosophy, Six Sigma strives for perfection in achieving effectiveness and efficiency in meeting customer and business requirements. Six Sigma is proactive and prevention-based instead of reactive and detection-based. As a performance metric, Six Sigma refers to a level of quality that is near perfection. It strives for a defect level that is no more than 3.4 parts per million. Sigma is a letter in the Greek alphabet used to represent standard deviation, a measure of variation. A Six Sigma process is very consistent, with very little variation, and therefore has a very small standard deviation. So small that the distance from the mean, or the average, to the nearest specification limit is equivalent to six standard deviations, or six sigmas. As a result, only 3.4 parts per million or less are out of specification. As a methodology, Six Sigma refers to DMAIC, or D M A I C, a methodology for improvement named after its five phases of define, measure, analyze, improve, and control. Using this prescriptive approach, a team focuses on improving what’s important to customers, and uses data analysis to diagnose and improve the performance of process, products, or services. So, now that we’ve covered Six Sigma at a very high level, let’s walk through a simple example of what Six Sigma can do. Take the typical experience of calling a cable company for installation or repair. You call them and they say, “The earliest we can get a technician out to your house “is 10 working days from today.” “And the technician will be there “sometime between 8am and 5pm.” Fast forward 10 days, you have taken the day off work to stay home and wait for the technician. And you wait, and you wait. Then the technician either does not show or shows up late, past 5pm. Wouldn’t it have been nice if instead they said, “We can get a technician out to your house tomorrow “between 8 and 8:30am.” And the next day, the technician shows up at 8am. Wow, that in a nutshell is what Six Sigma can do. Now, later in this course, we’ll go over the nuts and bolts of how this is done. But the most important thing to grasp from this video is that Six Sigma is a project methodology for improvement. I’ve seen Six Sigma projects reduce patient wait times in hospitals, minimize defects in manufacturing, cut down billing errors, and improve guest experience in hotels. Six Sigma works. And I can’t wait to share how it works with you.
An overview of DMAIC
– Every Six Sigma project has five phases. Those phases are Define, Measure, Analyze, Improve, and Control. Or D-M-A-I-C or DMAIC for short. In this movie, we are going to walk through each phase. To clearly understand each phase, we are going to use, again, the experience of calling a cable company for installation. In this example, the earliest a technician can come is 10 working days from today. We are told that a technician will show up sometime between 8 a.m. and 5 p.m. As customers, our immediate questions are why does it take so long and why so much uncertainty as to when the technician shows up? With that example as our backdrop, let’s explore the five phases. First up, we have Define. In the Define phase, the project is defined, the project team is selected, and management launches the Six Sigma project. The team is tasked with understanding what is important to customers and determine the performance outcome to be improved. In Six Sigma, the performance outcome to be improved is known as the Y, as in Y is a function of x. In our example, Y is the lead time for the technician to show up at your door as promised. Next, we move onto Measure. In the Measure phase, the size and the scope of the problem is understood and performance on Y is measured. We collect data and we measure how long it takes and how consistently the technician shows up as promised. The process steps are understood. The process steps involve the time taken and any delays due to rework or workarounds. Suppose it takes two days for the information to reach engineering and up to five days to review and process and another two to three days for dispatch to schedule. In total, it takes five to 10 days before a technician can show up at your door. Due to this variation, the call center has to schedule 10 days out. This is the kind of data that is collected during the Measure phase. After we’ve defined and measured, we analyze. The data is analyzed to determine the causes of factors that impact performance. In other words, we diagnose and prove which x factors impact the Y. Back to our cable company. Why does it take so long and why is there so much variation at each step? Why does it take the call center up to two days just to inform engineering? Why does it take engineering up to five days to process the information? Why does it take dispatch two to three days to schedule? Root cause analysis is performed, so that the causes of poor performance are determined. The x factors that drive performance Y are determined. Then we move onto Improve. In the Improve phase, solutions are developed to address the proven x factors, so that Y can be improved. Solutions are developed, piloted, and implemented to reduce the length and the variability of processing times. In our example, this results in the whole process, from call center to engineering to dispatch and a field technician showing up taking less than 24 hours. Finally, we move onto Control. In the Control phase, controls are established to ensure that our improvements or gains are sustainable. Controls and procedures are put in place, so that employees know when and how to intervene to ensure superior performance. In our example, the total time is reduced from 10 days down to one day. The unpredictability of when the technician shows up is reduced from an eight hour window down to a one hour window. By determining the key x factors that impact Y, we can be proactive in ensuring a superior Y performance simply by controlling the key x factors. The result is that we are now better able to plan, predict, and deliver as promised.
Key roles of executives and champions
– Within Six Sigma, there are terms like Six Sigma, executives, and Champions. In this movie, we will cover who they are and their roles. We’ll discuss how critical these roles are in driving the success of Six Sigma. Let’s start from the top. Executives, who are the executives? Executives are the CEO, and his or her direct reports. The C suite, the COO, CFO, CIO and so on, and senior management such as vice presidents and directors. Once the decision has been made to implement Six Sigma, the roles of executives and senior management is to, deploy Six Sigma projects as a means to achieve the organizations strategic and all goals, establish project selection criteria, review and select projects, assign Project Champions, and review updates from Champions, and provide resources as needed. The Champion also known as the Project Champion, is the executive teams point person who is tasked with insuring project success. Normally the Champion is an executive or senior manager who has enough clout and respect to insure that the project has the right resources, time, and priority it needs. Let’s take an in depth look at the Champions role. The Project Champion selects a project leader. The project leader is someone who plans, leads, and executes the project with the help of a designated project team. The Project Champion also approves the project charter. The project charter is a document that defines project including its objectives, timeline, and scope. They also select the project team and launch the project. The Champion provides time and resources for the project team to work on the project, and they reassign and redistribute work to others as needed. The Champion closely monitors progress and removes any road blocks. The Champion receives updates from the project leader on a weekly basis. Road blocks maybe organizational turf issues, budget, resource limitations, or conflicting priorities. Finally the Champion approves implementation of improvements. The Champion is the key person who approves or disapproves any changes or improvement proposed by the project team. This may include changes to processes, key metrics, procedures, training, and job descriptions. The Champion signs off on this project when it’s completed successfully. In short the Champion is managements point person responsible for project success. Correctly understanding the roles of the executives and the Project Champion is pivotal as your organization implements Six Sigma.
Levels of expertise
– Six Sigma is a discipline methodology for improvement. It has a list of prescriptive steps, tools, and techniques for each phase of the project. It is this discipline that was thought by analogous to the strict discipline in martial arts. As a result? The belts in martial arts were adopted to recognize the different levels of expertise in Six Sigma. So, let’s dive in and explore the different belts, the type of training received, and their roles in the implementation of Six Sigma. The belts in order of expertise are White Belt, Yellow Belt, Green Belt, Black Belt, and Master Black Belt. Let’s start with the lowest level first, the White Belt. The White Belt training introduces the basic concepts of Six Sigma, including its quality concepts and process thinking. White Belt training is knowledge-based. It is an introductory overview of Six Sigma. Similar to the martial arts White Belt, who’s introduced to the theories of martial arts. Basically, it answers the questions what is Six Sigma and why is it useful. In short, white belt training motivates interest and understanding in Six Sigma. In Yellow Belt training, the Six Sigma DMAIC methodology is introduced. Simple process and quality tools used in Six Sigma are taught. For example, the concept of variation, voice of the customer analysis, process mapping, and brainstorming for root cause analysis. Yellow Belts are trained to lead and facilitate improvement sessions using these tools. They typically focus on processes local to their own department or function. Their familiarity with those processes is an asset. Yellow Belts can also serve as team members on a Green Belt DMAIC Project. Green Belt training takes the participant through each phase of DMAIC, the steps involved and the corresponding tools used. In addition to process and quality tools, data analysis using statistics are taught. Green Belt participants come into training with a DMAIC project already assigned to them. They will apply what they learn to their projects between the training sessions. The training’s typically done in two installments spread over two months. Green Belts are trained to lead and carry out DMAIC projects, usually on a part-time basis. The time commitment is about eight hours a week for the duration of the project. When implementing Six Sigma, a company might decide to have a critical mass of people from each function or department to become Green Belts. They will undergo Green Belt training when they’re first assigned to their first projects. In contrast, Black Belts are full-time Six Sigma specialists. Black Belts lead and carry out complex projects assigned to them by senior management. These projects are broader in scope and more complex than a Green Belt project and they require advanced statistical analysis. In addition to what’s covered in the Green Belt training, Black Belts are trained in the advanced quality and statistical tools used in Six Sigma. These include, for example, process capability, inferential statistics, and design of experiments. Master Black Belts are experienced Black Belts who have received additional training, including advanced statistical analysis, process simulation, project management, and change management. Training curriculum and duration vary, depending on the training provider. Master Black Belts serve as Six Sigma trainers and coaches to the rest of the organization. Until they are developed, this role is outsourced to outside training and consulting firms. So, now that you’ve watched this movie, you can decide which training’s the right one for you to pursue.
Design
Steps in the Define phase
– The first phase of a six sigma project is the define phase. Let’s start with a couple of questions that may be on your mind. Why even have the define phase? What does it accomplish? As the name implies this phase defines the project, what the project’s all about, what it has to accomplish by when and by whom. The first step is to define the problem and goal statements. What specific problem or improvement opportunity is the project addressing? What is the goal of this project? In other words, what measurable performance outcome or target must the project accomplish, and by when? It defines the Y, as in what is the Y in Y is a function of X. Where Y is the performance measure to be improved. The second step is to develop the project charter. The project charter is a document that describes the project. It includes problem and goal statements, project scope, expected operational and financial impact, names of the project team and other key players, and milestones. The project charter serves as an internal contract between senior management and the project team. It provides a common understanding on the purpose and focus of the project. Once the charter is completed, champion will review and approve it. The third step is to develop a high level process overview map called a SIPOC diagram. SIPOC, is an acronym for Supplier, Input, Process, Output, Customer. The SIPOC diagram identifies and illustrates at a high level processes relevant to the project. Inputs and outputs involved. Those who supply the process inputs, and those that receive those product outputs as customers. The SIPOC diagram is a useful scoping tool showing what processes are within the scope of the project and the stakeholders involved. In summary, these are the steps in the define phase. Develop problem and goal statements, develop project charter, and develop SIPOC diagram. As we move through this chapter, we’ll address each of these steps to help you understand the define phase, it’s purpose, the steps involved, and why this phase is important. Executing the define phase correctly will help you provide clear direction and focus to the project team. The team will know what a specific problem is, the goal to be accomplished by when and by whom, what’s in scope and what’s out of scope. This way the project is focused for success.