During 1990s to present 23 focus of six sigma is on

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Unformatted text preview: 80’s) Six-Sigma (origins at Motorola in 1987, expanded Siximpact during 1990s to present) 23 Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact A process is an organized sequence of activities process that produces an output that adds value to the organization All All work is performed in (interconnected) processes Easy Easy to see in some situations (manufacturing) Harder Harder in others Any Any process can be improved An An organized approach to improvement is necessary The The process focus is essential to Six Sigma 24 Why “Quality Improvement” is Important: A Simple Example A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink. This product has 10 components - is 99% good okay? P{Single meal good} = (0.99)10 = 0.9044 Family of four, once a month: P{All meals good} = (0.9044)4 = 0.6690 P{All visits during the year good} = (0.6690)12 = 0.0080 P{single meal good} = (0.999)10 = 0.9900, P{Monthly visit good} = (0.99) 4 = 0.9607 P{All visits in the year good} = (0.9607)12 = 0.6186 Six Sigma Focus Initially Initially in manufacturing Commercial Commercial applications Banking Banking Finance Finance Public Public sector Services Services DFSS DFSS – Design for Six Sigma Only Only so much improvement can be wrung out of an existing system New New process design New New product design (engineering) 25 Some Commercial Applications Reducing Reducing average and variation of days outstanding on accounts receivable Managing Managing costs of consultants (public accountants, lawyers) Skip Skip tracing Credit Credit scoring Closing Closing the books (faster, less variation) Audit Audit accuracy, account reconciliation Forecasting Forecasting Inventory Inventory management Tax Tax filing Payroll Payroll accuracy Six Sigma A disciplined and analytical approach to process disciplined and product improvement Specialized Specialized roles for people; Champions, Master Black belts, Black Belts, Green Belts TopTop-down driven (Champions from each business) BBs BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) Involves fiveInvolves a five-step process (DMAIC) : Define Define Measure Measure Analyze...
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