Six Sigma - The Smart Way

Reliability Solutions focus on Teaching / Implementing 6 Sigma with Small to Medium sized companies. The objectiv e is to bring together the key elements of a 6 Sigma Programme in the shortest possible time to help companies implement a strong programme within 3 mths.

What is 6 Sigma?

It is a process that helps companies improve profit, by focusing on improved Yield and productivity in every area of their business.

The 6-sigma methodology provides a structured framework to change business processes from one of continual Detection and Correction to one of Prevention

As companies grow, too many differing business processes evolve and the companies lose focus on core objectives. Adopting a 6-sigma mentality enables such companies to grow faster and more successfully using a common mentality to Improvement and adopting Breakthrough strategies that produce 'real results' in bottom line financial improvement.

The 4 core phases of the Breakthrough Strategy is M-A-I-C (Measure, Analyse, Improve, Control) providing a disciplined approach to pinpointing sources of error and developing ways of eliminating them?

The key factor in 6 sigma success is to remove the 'Hidden Factory' where processes become very inefficient because of multiple changes which add time and expense, but make little change to overall yield, hence do not improve Quality. In effect processes within an overall process take place, resulting in poor controls with high costs

Using the 6 sigma approach focuses ever employees mind on pursuing Quality only if it adds value for the customer and the company

Where did 6 sigma originate?

In 1988, Motorola won the 'Baldridge' award, which at that time was the highest National Quality Award in the USA. By doing this they were automatically prevented from competing for the award over the next 5 yrs (rules of the competition). This meant that the 10X improvement levels achieved between 1981 and 1988, which led to winning the Baldridge Award, could not be sustained under the banner of Baldridge achievement. A new programme of Continuous Improvement was required, 'the seed was planted'!
A senior staff engineer within Motorola (Mike Harry) took on the challenge and produced a roadmap for improvement within all areas of Motorola, which represented the route to achieving 6 sigma.

He produced a now famous paper, titled 'The strategic Vision for Accelerating 6 sigma within Motorola'

The CEO of Motorola, 'Robert Galvin' realised the potential of 6 sigma and the need for the company to apply statistical analysis to business problems in an effective manner, hence the Motorola 6 sigma programme was born . By 1991, Motorola were leading the way and realising the enormous potential of 6 sigma in maximising profit while reaching even higher levels of Quality performance and Customer Satisfaction

How does 6 sigma work?

There is no magic to 6 sigma, simply a well structured approach to fully develop employee potential to get maximum results for the company.

Using 6 sigma practices is about asking tougher and tougher questions until quantifiable answers are received which fundamentally change processes and people's behaviour.

TEAMWORK is the basic necessity of 6 sigma, with effective Team Leaders (Black Belts) to drive through change and knockdown barriers, which have historically restricted change and improvement

The focus is simply to 'Work Smarter'

Within most 6 sigma orientated companies, there are 2 levels of training, 'Green' belt and 'Black' belt, understood by companies worldwide as 6 sigma training levels.

The 'Reliability Solutions' Training Methods are defined as follows:

1. Green Belt Training

This is a 1.5 - 2 day class, which introduces the concept of 6 sigma and the basic methods of statistical analysis. It also introduces Process mapping and how to measure the capability or sigma level of the mapped process.

This provides clear understating of process capability and improvement targets to attain the required sigma level
Providing targets to employees increases their drive and determination providing a framework and systematic process tool is provided to them to use, this is what Green Belt training provides

Feedback from employees during 'Reliability Solutions' Green Belt training achieved a 95% satisfaction level,

Employees throughout the companies involved are now involved in Improvement Programmes to generate cost savings and improved customer satisfaction.

Example Green Belt Agenda

2. Black Belt Training

This is the highest level of training, with 4 days intensive education in Statistical Analysis (Probability Law, Capability Analysis, Normal Distribution, Significance Testing, etc), Statistical process Control, Design of Experiments.

This type of training re- structures the attendees thinking process to one of in-depth analysis of data and much improved problem understanding. This in turn drives the Black Belt to more rigorous analysis of the problem to enable correct diagnosis that will result in effective change rather than the 'hunt and peck' approach, which means problems, will remain un-resolved for too long.

Black Belt's become the leaders of major project improvements and work with Green Belts to manage problem resolution using all the 6 sigma tools (Process mapping, Analysis of wasteful Activity Problem Measurement, etc)

Example Black Belt Agenda

What makes 6 sigma so popular?

The growth and popularity of 6 sigma has been due to the phenomenal results of companies like GE, Allied Signal, Polaroid .

Allied Signal have reported savings of $2 billion dollars from 6 sigma implementation since its inception in 1994 , Raytheon report yearly savings of $1 billion, Polaroid report adding 6% to bottom line every year, the list is endless

GE's famous CEO, Jack Welch is noted for stating " 6 sigma is the most challenging and potentially rewarding initiative ever undertaken at GE "

Most companies who apply 6 sigma are of medium to large scale in size as the programme requires a range of skills to work effectively. Once these skills are combined within a functional group, the compound effect can be startling with improvements made that were never possible before

How does 6 sigma relate to company performance ?

The average profitable company will achieve 3.5-4.0 sigma levels, the higher the sigma level, the lower the Cost of Quality and Non-Value add costs, hence improved profit level.

Relating this to Real-Life, measurements of Airline baggage handling processes are only 3.5-4 sigma with approx 6,000 - 23,000 mistakes per million pieces of baggage handled

How will 6 sigma philosophies help your Company grow ?

By focussing all employees' energy on worthwhile improvement projects, people will believe in the benefits of 6 sigma as they begin to see the marked improvements.

This will benefit a company in many ways by minimising Non-value add activity, Improving Turn-Around Time, Improving Process Yield, making production related services more efficient (procurement, Acct Mgmt, etc) and ultimately improving customer satisfaction while minimising Non-Value Add costs to improve the bottom line

Every employee in a company implementing 6 sigma will have a role to play in achieving the 6-sigma targets throughout all mapped and measured processes; the future success depends very much on achieving this target. Most companies will start by setting targets of 4.5 sigma, then working systematically towards the ultimate value of 6.0

Common 6 sigma Objectives for large manufacturing company