| What is six sigma? | | | | implementation. This must be demonstrated through: |
| Six sigma is a highly disciplined approach used to | | | | * Making high performers available as black and green |
| reduce the process variations to the extent that the | | | | belts for six sigma projects. |
| level of defects are drastically reduced to less than 3.4 | | | | * Making resources available for training and |
| per million process, product or service opportunities | | | | implementation. |
| (DPMO). Six sigma is a powerful approach to achieve | | | | * Project successes are celebrated and belts and |
| breakthrough improvements in manufacturing, | | | | team members are recognized and rewarded |
| engineering and business processes. The approach | | | | appropriately. Their presence during recognition is a |
| relies heavily on advanced statistical methods that | | | | strong indicator. GE made six sigma implementation as |
| complement the process and product knowledge to | | | | a condition from promotion of their managers. |
| reduce variation in processes. It is new way of doing | | | | Some of the senior managers should take up and |
| business that would eliminate the existing defects | | | | implement six sigma projects Can we implement Six |
| efficiently and would prevent defects from occurring.; | | | | sigma along with other improvement initiative such as |
| What is sigma? | | | | TPM? There is no rule of thumb. However, many of |
| Sigma is a Greek letter that is used to describe | | | | the resources, such as members of steering |
| variability. In statistical quality control, this means | | | | committee, are common to these initiatives. More than |
| “standard deviation”. | | | | one initiatives becomes highly taxing for senior and |
| Who is using six sigma approach? | | | | middle management. In the days of lean organizations, |
| The six sigma approach was first introduced and | | | | both initiatives may suffer due to inadequate resource |
| developed at Motorola in late 1980s. Later in the | | | | availability. In terms of principles, usually there are no |
| mid-nineties, it was adopted by General Electric and | | | | contradictions between various improvement initiatives |
| Allied Signal. According to Jack Welch CEO of GE | | | | such as TPM, Six Sigma or TQM. |
| “Six sigma is the most challenging and potentially | | | | What is duration of six sigma black belt training? |
| rewarding strategy GE have ever undertaken” GE | | | | Black belt training duration is usually three to four |
| listed tremendous benefits of the approach in their | | | | weeks. However, belts go through one week training |
| annual report in 1997. Six Sigma is now adopted by | | | | and apply the learnings for the project. Thus, there is |
| many other reputed companies. | | | | one week training every month for three months. In |
| Why should we implement six sigma? | | | | addition to this, there is a short two days introductory |
| GE listed tremendous benefits of the approach in their | | | | training for belts as well as sponsors in the beginning. |
| annual report in 1997. These benefits included: | | | | Is there any training required for senior management? |
| * 10 fold increase in the life of CT scanner x-ray tubes | | | | Yes. This is executive overview if six sigma approach, |
| at Medical Devices | | | | benefits and roles of belts, sponsors and top |
| * Improved yield resulting in increased capacity without | | | | management. Duration could be one to two days |
| additional investments at Superabrasives- their industrial | | | | Is there any black or green belt certification? |
| diamond business | | | | There could be internal or external certification. This is |
| * 62% reduction in turnaround time at the repair shops | | | | based on successful completion of training and project. |
| of the railcar leasing business | | | | One of the widely recognized external certifications is |
| * Addition of 300 million pounds of new capacity This | | | | by American Society for Quality (ASQ). ASQ |
| was equivalent to adding new plant! | | | | conducts examination of multiple choice questions |
| Your company can also get similar benefits by | | | | periodically. Link to ASQ six sigma black belt |
| implementing six sigma. | | | | certification: |
| Who is a six sigma black belt? | | | | How many years it will take to reach six sigma level? |
| Black belts are full time six sigma project leaders who | | | | Six sigma is an approach and achieving six sigma level |
| are selected to execute the project. Selection of | | | | in all measures of a company is still only a dream. It is |
| candidates is critical for the success. The project | | | | possible to reach this level in some of the processes. |
| leaders go through in-depth training of six sigma | | | | Many companies that are considered good by us may |
| approach and tools and work full time on the project. | | | | be at 4 sigma level. Moving to five sigma level may |
| They are usually future leaders of the organization. | | | | take 3 to 5 years and will have a complete paradigm |
| Black belt projects can be from any function in the | | | | shift in the operations. Following table shows relation |
| company Financial benefits of a black belt project may | | | | between sigma level and defects per million parts: |
| be about 100000 US $. However, this may vary | | | | |
| considerably depending on the stage of six sigma | | | | Sigma Level |
| implementation. | | | | PPM |
| What are green belts? | | | | 2 |
| Green belts also lead six sigma projects. But the | | | | 308,537 |
| complexity of the projects and the benefits are | | | | 3 |
| somewhat less than that of black belt projects. Green | | | | 66,807 |
| belts work part time on projects and the projects | | | | 4 |
| usually belong to their own function. The training could | | | | 6,210 |
| be less intensive as compared to black belts. Financial | | | | 5 |
| benefits of a green belt project may be about 20000 | | | | 233 |
| US $. How are six sigma projects selected? Six sigma | | | | 6 |
| projects are identified considering the: | | | | 3.4 |
| * Strategic direction of the company | | | | |
| * Impact on the bottom-line | | | | |
| * Impact on customer satisfaction | | | | We can see that improvement from 4 to 5 sigma |
| The projects having large impact requires project | | | | level is more than 26 times! One sigma change in the |
| leaders with high degree of competence. Full time | | | | operational measures mean a complete overhaul of |
| project leaders, called black belts, are selected to | | | | the processes and may take a fairly long time. What |
| execute the project. Selection of candidates is critical | | | | level a company should target depends on the likely |
| for the success. The project leaders go through | | | | competition. |
| in-depth training of six sigma approach and tools and | | | | How many black belts should we have? |
| work full time on the project. Projects are expected to | | | | There is no standard for this. However, a rule of thumb |
| be completed by the belts in about six months time. | | | | is one black belt per 100 employees. It is essential that |
| Black belts may work on more than one projects at a | | | | the technology of the organization is considered to |
| time. | | | | arrive at a critical mass of black belts. Where the |
| What are project sponsors? | | | | industry is labor intensive, number of black belts can be |
| Each project has a sponsor who is adequately senior | | | | less |
| in the organization. Sponsor ensures that | | | | What is a master black belt (MBB)? |
| * The belt gets appropriate support from functions | | | | A master black belt is very highly proficient in the six |
| * Resources are available | | | | sigma tools and can train others in the methodology. |
| * The progress is as per schedule | | | | Number of master black belts may be very few. |
| * Organizational blocks are removed | | | | Do we need consultants to help implementation? |
| In general, the sponsor owns the project and is | | | | Usually yes. Implementation of six sigma relies heavily |
| accountable for the success of the project. Six sigma | | | | on extensive training to belts and sponsors. |
| projects are identified considering the What is the | | | | Consultants can also help implementation during the |
| difference between statistical quality control (SQC) | | | | initial one or two cycles of projects |
| and six sigma? There are many tools that were | | | | Can six sigma be useful for improvements in service |
| known to statisticians including design of experiments. | | | | industry? |
| However, the usage of tools was very limited. Also, | | | | Six sigma was initially applied to improving |
| few quality professions used these. In six sigma | | | | manufacturing industry. However, in later years, |
| approach, the tools are learned by black and green | | | | companies have successfully applied six sigma to |
| belts who belong to different functions and apply the | | | | make improvements in service sectors such as |
| tools to make improvements in business processes. | | | | Healthcare, Banking, Software, Education etc. Some of |
| Thus six sigma is a company-wide initiative while as | | | | the powerful Six Sigma Tools were first used in |
| SQC was primarily deployed for quality control. | | | | Agriculture to improve yield. Thus Six Sigma Approach |
| What is the role of senior management? | | | | and Tools can be applied to virtually any industry. |
| Top management must be committed to six sigma | | | | |