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Six Sigma 101
This defect-measurement
and quality-improvement tool
was designed to make businesses
as successful as possible. Its ultimate
objective: Deliver worldclass performance,
reliability and value to the customer.
BY SUBRAMANIAM MANIVANNAN
defects and improving quality, and
a methodology to reduce defect lev-
els below 3.4 defects per million oppor-
tunities (DPMO). It provides a method
to manage process variations that cause
defects—defined as unacceptable devi-
ation from the mean or target—and
systematically work toward managing
variation to eliminate those defects.
The ultimate objective of Six Sigma is to
deliver worldclass performance, relia-
bility and value to the end customer.
America’s most gifted CEOs, such as
Motorola’s Bob Galvin, Allied Signal’s
Larry Bossidy and General Electric’s
Jack Welch. These people had a single
goal in mind: make their businesses as
successful as possible. Once they were
convinced that tools and techniques of
Six Sigma could help them do this, they
Total Quality Management versus Six Sigma
Total Quality Management
Six Sigma
A functional specialty within
the organization
An infrastructure of dedicated change agents focusing
on cross-functional value-delivery streams rather than
functional division of labor
Focuses on quality
Focuses on strategic goals and applies them to cost,
schedule and other key business metrics
Driven by tangible benefit for a major stockholder
group (customers, shareholders and employees)
Advantages over TQM
In some aspects, total quality man-
agement (TQM) and Six Sigma share
the same philosophy of how to assist
organizations in improving quality.
They both emphasize the importance of
top-management support and leader-
ship. And both approaches make clear
that continuous quality improvement is
critical to long-term business success.
However, why has the popularity of
TQM waned while Six Sigma’s popu-
larity continues to grow?
Unlike TQM, Six Sigma was not devel-
oped by technicians who only dabbled
in management and, therefore, pro-
duced only broad guidelines for man-
agement to follow. The Six Sigma way of
implementation was created by some of
Motivated by quality idealism
Loosely monitors progress
toward goals
Ensures that the investment produces the
expected return
People are engaged in routine duties
(planning, improvement and control)
Slack resources are created to change key business
processes and the organization itself
Emphasizes problem solving
Emphasizes breakthrough rates of improvement
Focuses on standard performance,
e.g. ISO 9000
Focuses on world-class performance,
e.g. 3.4-ppm error rate
Quality is a permanent full-time job
with a career path in the quality
profession
Six Sigma job is temporary, and career path
leads elsewhere
Provides a vast set of tools and
techniques with no clear-cut
framework for using them effectively
Provides a selected subset of tools and techniques
and a clearly defined framework for using them to
achieve results
Goals are developed by the quality
department based on quality criteria and
the assumption that what is good for
quality is good for the organization
Goals flow down from customers and senior
leadership’s strategic objectives; goals and metrics
are reviewed at the enterprise level to assure
that local sub-optimization does not occur
Subramaniam Manivannan is quality
coach/assessor-PTO quality in the man-
ufacturing process/product support depart-
ment at Ford Motor Co., Dearborn, MI.
Developed by technical personnel
Developed by CEOs
Focuses on long-term results,
expected payoff is not well-defined
Looks for a mix of short-term and long-term
results as dictated by business demands
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S ix Sigma is a metric for measuring
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developed a framework to make it happen.
The differences between TQM and
Six Sigma are summarized in the Total
Quality Management versus Six Sigma
table.
requires creativity. And the greatest
enemy of creativity is hierarchy.
Because hierarchy in a traditional firm
controls all of the resources—material
and human—an individual employee must
obtain permission from someone to
use any resource. If the resources required
to pursue a creative idea are controlled
by several positions in the hierarchy,
the employee must get permission from
each for things to move ahead.
According to a recent benchmarking
report, successful Six Sigma initiatives
share three characteristics:
• Implementation teams led by sen-
ior executives
• Well-organized training programs
• Ability to create a corporate culture
that values objective performance meas-
urement.
Organizations attempting to imple-
ment Six Sigma initiatives without
How to Make
Six Sigma Work
Several companies have attempted to
implement Six Sigma, and the results
proved disappointing. Why?
• Maybe they didn’t really need Six
Sigma in their company or department.
• Perhaps the wrong person was cho-
sen as the Black Belt.
• Maybe someone at the top didn’t
get behind the initiative.
• Perhaps key team members didn’t
understand Six Sigma, and, therefore,
could not implement it effectively.
Company-wide understanding of
the Six Sigma process is required for
company-wide buy-in and, ultimately,
company-wide success. In general, proj-
ects are tied to business goals that can be
found in the Balanced Scorecard or
other system, which allows a company
to make sure their efforts are directed to
critical areas.
Six Sigma betters an organization at
all levels. At the highest level, this
involves moving the entire organiza-
tion from a Three or Four Sigma busi-
ness process to a Six Sigma process,
which requires reducing defects by a
factor of more than 20,000, completely
transforming the organization’s culture.
What does that mean? Consider 3.8
Sigma, which reflects a process that is
“99 percent good.” This may mean
20,000 lost articles of mail per hour,
unsafe drinking water for almost 15 min.
per day, 5000 incorrect surgical opera-
tions per week and two short or long
landings at most major airports each
day. Six Sigma, reflecting a process that
is “99.99966 percent good,” means seven
lost articles of mail per hour, unsafe
drinking water for 1 min. every seven
months, 1.7 incorrect surgical opera-
tions per week and one short or long
airplane landing every five years. Quite
a difference.
But Six Sigma can’t be accomplished
simply by tweaking the process—it
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Six Sigma
addressing these three areas are far less
likely to reap the rewards enjoyed by
successful Six Sigma programs. Key
drivers for Six Sigma success include
winning executive support for Six Sigma
initiatives, linking Six Sigma with suc-
cession planning, defining critical objec-
tives for the Six Sigma program and
demonstrating the impact of quality
initiatives on customers.
used by Black Belts and Green belts,
including up-to-date computer tech-
nology, are highly advanced. But the
tools are applied within a simple per-
formance-improvement framework
known as Define-Measure-Analyze-
Improve-Control (DMAIC). DMAIC
is analogous to the older TQM model
known as the Deming Cycle: Plan-Do-
Study-Act.
DMAIC is used almost universally to
guide Six Sigma process-improvement
projects. Although truly dramatic improve-
ment in quality requires transforming
the management philosophy and organ-
ization culture, the fact is that actual
projects must be undertaken sooner or
later to make things happen. Projects are
the means through which processes are
systematically changed—the bridge
between the planning and the doing.
However, DMAIC is not a method of
planning projects. Project planning is a
subject in its own right. Although proj-
ects and plans are closely related, they
also differ in many respects.
Six Sigma’s impressive bottom-line
results normally flow from Six Sigma
projects.
Properly defined Six Sigma projects
meet certain criteria:
• Have clearly defined deliverables;
• Are approved by management;
• Are not so large that they’re unman-
ageable nor so small that they’re unim-
portant or uninteresting;
• Relate directly to the organization’s
mission.
Six Sigma Simplified
Six Sigma’s magic doesn’t lie in sta-
tistical or high-tech razzle-dazzle but in
tried-and-true methods that have been
around for decades. In fact, Six Sigma
discards a great deal of the complexity
that characterizes TQM. By one expert’s
count, there are more than 400 TQM
tools and techniques. Six Sigma takes a
handful of these methods and trains a
small cadre of inhouse technical leaders,
known as a Six Sigma Black Belts or
Green Belts, to a high level of profi-
ciency in the application of these tech-
niques. To be sure, some of the methods
The DMAIC Process Defined
D = Define
Define is the first phase of the
DMAIC model. The purpose of the
Define phase is to refine the project
team’s understanding of the problem to
be addressed and define customer
expectations for the process.
Elements of this phase include a spe-
cific statement of the problem being
addressed, descriptive statements out-
lining locations and/or occurrences of
problematic events, and an initial
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Six Sigma
The DMAIC Process
80-percent target.” Then the team must
clearly define and quantify the problem,
identify the potential metrics and meas-
urement sources, and identify the neg-
ative attributes and current perform-
ance, and their relationships to the
customer.
Questions to ask in this phase include:
Who is my customer?
What matters, what is critical to
quality?
What is the scope?
What defect am I trying to reduce?
By how much, what is the goal?
What is the current cost of the defects?
statement describing the scope of the
problem.
In this phase, the project team defines
what is needed for a successful Six
Sigma project. Defining includes iden-
tifying customers (internal/external),
identifying customers’ needs, and deter-
mining the project’s scope and goals.
The team must develop a problem
statement, a specific statement of the
problem being addressed. It is extreme-
ly important to identify the right prob-
lem. “Our first run is too low” is too
general—not a good problem identifi-
er. A better one: “In June, Zone A’s aver-
age first run of 60 percent was below our
M = Measure
The Measure phase establishes tech-
niques for collecting data about the
current performance and how well it is
meeting customer requirements. Upon
completion of this phase, the project
team will have a data-collection plan,
valid measurement system that ensures
accuracy and consistency in data col-
lection, baseline frequency for defects
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Six Sigma
and sufficient data for problem analysis.
This phase prompts the following
questions:
What is my process?
Which outputs most affect quality?
Which inputs seem most to affect
outputs?
Is my ability to measure/detect good
enough?
How is my process doing today?
How good could my process be if
everything were running smoothly?
What’s the best that my process was
designed to do?
How Ford Benefited from Six Sigma
Ford Motor Co.’s Dearborn (MI) Engine and Fuel Tank Plant produces 1200 engines daily—2.0-liter
for the Focus and 2.3-liter for the Ranger—and 1.2 million fuel tanks annually for a variety of
vehicles. Nearly 1000 workers ply their trade in the 2.3-million-sq.-ft. plant that stakes a claim as
the world’s largest single manufacturer of steel fuel tanks.
With management support of its consumer-driven Six Sigma program, the plant has achieved
measurable results thus far in 2006. To start, all upper management underwent intensive four-
week Six Sigma Black Belt training, followed by the setting of annual Six Sigma cost-saving
objectives.
For 2006, the plant set
an objective of $6 million
in savings for Black Belt
projects and $2.9 million
for Green Belt projects.
Through June, the Black
Belt projects have achieved
61 percent of the cost-
saving goal, with Green
Belt projects achieving
28 percent. One Black Belt
project focused on
production of engine cam
shafts, where two specific
plant operations were each
saddled with a 17-percent
scrap rate. Working with
suppliers and closely examining grinding operations, as well as adopting new tooling and gauging,
one operation was able to cut its scrap rate to 2 percent. The other has seen its scrap rate cut to
14 percent with plant Black Belt project champions still addressing the issue.
A = Analyze
The Analyze phase allows the project
team to target improvement opportu-
nities by taking a closer look at the data.
Through this phase, the team will deter-
mine why, when and where defects
occur; select the appropriate graphical
analysis tools and apply them to the
data collected; and target a set of poten-
tial improvements for action in the fol-
lowing Improve phase. After analyzing,
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