6?OverviewSixSigma:-ADefinition-AppliedtoGE-GEQualityInitiative-WhyThisApproach?-OriginofSixSigma-The“BreakthroughStrategy”-ArrivingatSigmaSixSigmaStructureKeyConceptsToolsAPracticalExampleAnOverviewNotalotofDetails!!
6?Overview “SixSigma”Ifwecan’texpresswhatweknowintheformofnumbers,wereallydon’tknowmuchaboutit.Ifwedon’tknowmuchaboutit,wecan’tcontrolit.Ifwecan’tcontrolit,weareatthemercyofchance.MikelJ.HarryPresidentCEOSixSigmaAcademy,Inc.ARigorousMethodforMeasuringControllingOurQuality“...willbringGEtoawholenewlevelofqualityinafractionofthetimeitwouldhavetakentoclimbthelearningcurveonourown.”JohnF.Welch,Jr.1995GEAnnualReport
6?Overview WhatDoes“Sigma”Mean?SigmaisaMeasureoftheConsistencyofaProcessIt(???isAlsothe18thLetterintheGreekAlphabet!
WhyDoesGENeedAQualityInitiative?GERaisingTheBarNewGoaltobe“BestintheWorld”vs.#1or#2CustomersareExpectingMore,weMustDeliver“Ship-and-fix”ApproachnoLongerToleratedintheMarketAimtoSpeedPastTraditionalCompetitorsin5YearsGoalConsistentwithReducedTotalCostsWeMustAcknowledgeOurVulnerabilitiesPoorQualityThatImpactsCustomersProblemswithNPITooHighInternalCosts6?Overview WeNeedaMajorInitiativetoMoveFromWhereweAretoWhereweWanttobe
6?Overview WhyDoesGENeedAQualityInitiative?40%35%30%25%20%10%15%5%CostofFailure(%ofSales)DefectsperMillion3.4233621066,807308,537500,000Sigma654321EstimatedCostofFailureinUSIndustryis15%ofSales;TakingGEFroma3?toa6?CompanyWillSave~$10.5BillionperYear!
Why“SixSigma”?ProvenSuccessfulin“Quality-Demanding”Industriese.g.,Motorola,TexasInstruments(manyprocessstepsinseries)ProvenMethodtoReduceCostsHighlyQuantitativeMethod–ScienceandLogicInsteadofGutFeelIncludesManufacturingServ