SIX SIGMA:

BREAKTHROUGH TO
IN-PROCESS
EFFECTIVENESS
Operations and management (MACC 213)
Instructor: Sir Jc Linnor M. Oraiz, CPA

Members:
Usami, Chane
Udarbe, Kent
Valeroso, Jenny
Veloso, Dennily

01
 LEARNING
OBJECTIVES
To Define and differentiate Six Sigma and Lean
Six Sigma
Six Sigma Belt levels
Characteristics of Six Sigma
Six Sigma Objectives
Benefits of Six Sigma
Six Sigma Methodology
How to calculate Six Sigma
Real world application of Six Sigma

01
How does six sigma relate to
(TQM) Total Quality
Management?
SIX SIGMA
Six Sigma relates to Total Quality Management
(TQM) as a key tool that supports TQM's broader
goal of continuous improvement and excellence
in operations. In the context of TQM, Six Sigma
provides a structured, data-driven approach to
identifying and eliminating defects or
inefficiencies in processes, which aligns with
TQM’s emphasis on improving quality across all
organizational areas.
SIX SIGMA
Six Sigma seeks to improve the quality of process outputs by
identifying and removing the causes of defects.

Six Sigma approach is a collection of managerial and statistical

concept and techniques that focuses on reducing variation in
processes and preventing deficiencies in product.

99.9999966%
3.4 defects per million
Six Sigma is a business-driven, multi-dimensional structured
approach for:
Improving processes
Lowering defects
Reducing process variability
Reducing cost
Increasing customer satisfaction
Increased profits
 THE LEAN METHOD
The Lean method is entirely focused on
eliminating waste, providing maximum value
to customers with the lowest possible amount
of investment.
This synergy between methodologies functions primarily to help eliminate
the 8 kinds of waste, removing anything from a process – whether its
material, time, or effort – that doesn’t add value. The forms of waste are:

Defects – Products that don’t meet quality standards

Overproduction – Exceeding demand or producing more than was
ordered
Waiting – Process bottle-necks and downtime
Non-Utilized Talent – Ineffectively using or misallocating human
resources.
Transportation – Inefficient shipping methods
Inventory – Holding on to a surplus of product or raw material
Motion – Unnecessary moving of product, material, or people
Extra Processing – Doing more work than is needed
 What is Lean Six Sigma?
Lean Six Sigma Lean Six Sigma
Reduce Waste by Reduce defects by LEAN accelerates SIX SIGMA : Solving
streamlining the effectively solving problems and improving processes is
process. problems. faster and more efficient.
Lean Six Sigma combines these two
approaches, which creates a powerful
toolkit for addressing waste reduction.
Lean Six Sigma is a globally proven
methodology for the sustainable and
demonstrable improvement of
processes and organizations.
 Sir Bill Smith
Father of Six Sigma

Mikel Harry
Co-Founder of Six
Sigma
 SIGMA BELTS
Six Sigma belts are levels of certification within the Six Sigma
methodology, each representing different roles and expertise
levels in process improvement and quality management. Six
Sigma is a data-driven approach focused on reducing defects
and improving efficiency, and the belt system helps identify
individuals' experience and training in the methodology.
White Belt
Understands the structure and goals of Lean
Six Sigma
Uses basic Lean Six Sigma vocabulary terms
Reports process issues to Green and Black
Belts

White Yellow
Yellow Belt
Understands basic Lean Six Sigma concepts
Reports process issues to Green Belts and Black
Belts
Participates on project teams and receives just-
in-time training
Green Belt
Starts and manages Lean Six Sigma projects
Has Lean Six Sigma expertise but in less detail
than Black Belts
Provides just-in-time training to others

Green Black

Black Belt
Can report to a Master Black Belt
Has advanced Lean Six Sigma expertise
Functions as a coach, mentor, teacher, and project
leader for project teams
Master Black Belt
Works with leaders to identify gaps and select projects
Coaches, mentors, teaches, monitors and leads projects
Responsible for Lean Six Sigma implementation and
culture change

Master
Champion
Black

Champion
Executive leader who drives the initiative
Helps select projects and remove barriers for
project teams
Supports change and develops a Lean Six Sigma
culture
Statistical Quality Methodological Fact and Data
Control approach Based approach

Project and Teamwork Approach

Objective Based The customer focus to Quality
Focus Management
Overall Business Remedy Defects/ Reduce Cost
Improvement Variability

Increased
Improve Cycle Time Customer
Satisfaction
Effectiveness and Greater job security Learn new
efficiency and opportunity transferable skills

Increase enthusiasm and

momentum for future
activity within your
company
SIX SIGMA METHODOLOGY
DMAIC: It refers to a data-driven quality strategy for
improving processes. This methodology is used to
improve an existing business process.

DMADV: It refers to a data-driven quality strategy for

designing products and processes. This methodology
is used to create new product designs or process
designs in such a way that it results in a more
predictable, mature and defect free performance.
 Define Measure Analyze Improve Control

- Problem -Data -Root Cause -Solution -Monitoring

Definition Collection Analysis Generation Systems
-Project -Metric -Hypothesis -Pilot -Documentation
Objective Selection Testing Testing -Standardization
-Scope -Data Analysis -Data -Implementation -Training and
Definition tools Validation -Monitoring Communication
-Stakeholder -Baseline Creation -Data Visualization and Adjusting
Identification
DESIGN FOR SIX SIGMA :
DMADV ROADMAP
Identify fucntions. Verify design
Define the Project Generate and performance.
select concepts Implement design

Define Measure Analyze Design Verify

Determine the customer Develop design,

requirements and test/optimize
whishes design components
and complete
design
 DEFINE PHASE
Document
Project Team
customer core
Formation business processes

Develop a Develop the SIPOC

project charter process map
 MEASURE PHASE
Data collection
plan and data Data evaluation
collection

FMEA
A data collection plan is prepared to collect the required data.
This plan includes what type of data needs to be collected,
what are the sources of data, etc.

You collect data from three primary sources:

INPUT PROCESS OUTPUT

 FAILURE MODE AND EFFECTS
ANALYSIS (FMEA)
It refers to preventing defects before they occur. The FMEA
process usually includes rating possible defects, or failures, in
three ways:

The likelihood that something might go wrong.

The ability to detect a defect.
The level of severity of the defect.
 SIX SIGMA CALCULATION
A project is based on a billing mechanism. The team needs the customer to
have the right bills sent. For this process, they have described one opportunity-
either the bill is correct or not. In terms of complexity, all of the bills generated
are the same. The team took a sample of 250 bills and identified 60 defects.

Total Number of Defects: 60

Total Number of Units: 250
Total Number of Defect Opportunities per Unit: 1

1. Defects Per Unit (DPU)

• DPU: Total Number of Defects / Total Number of Units

 SIX SIGMA CALCULATION
2. Defects Per Opportunity (DPO)

• DPO: (Total Number of Defects / Total Number of Units) X Total Number of

Defect Opportunities per Unit

3. Defects Per Million Opportunities (DPMO)

• DPMO: DPO * 1,000,000

4. Yield

• Yield: (Total Number of Units - Total Number of Defects) / Total Number of Units
CONVERSION
TABLE
 CASE STUDY
Motorola Company in 1980s, was struggling to keep up
with Japanese competition. Motorola’s customers were
unhappy with the product defects and customer support.
On the other hand, Japanese had already built an
amazing quality standard that many American
companies simply could not keep up with. As a result,
dealing with severe financial pressure, Motorola had to
take action.
 CASE STUDY
Prior to 1993, Boeing relied on outdated manufacturing
practices. Assembly lines were inefficient, with planes stationed
awkwardly, workers moving around haphazardly, and a lack of
streamlined processes. This approach led to delays, increased
costs, and a decline in customer satisfaction. Boeing, a global
leader in aerospace, has significantly benefited from adopting
the Six Sigma methodology, transforming its production
processes and achieving remarkable improvements in efficiency,
quality, and profitability.