When Six Sigma is not good enuf

There are some processes where the Sixth Sigma quality level of performance is not high enough. http://bit.ly/d5kCri

Hexion Disciplined Six Sigma Improves Business Process

Hexion Specialty Chemicals is recognized with a 2009 Global Six Sigma & Business Improvement Award based on its achievement in deploying Six Sigma for enterprise business improvement in the chemical industry. ...

... "Six Sigma at Hexion is a disciplined, data-driven approach and methodology for eliminating defects in any business process. It provides various methods and tools to associates to examine processes within the business from the customer's perspective, and to improve them to increase efficiency and effectiveness. Hexion has implemented Six Sigma programming across its global organization and has made Six Sigma a core process in its business operations. Its award entry documented various business process improvements, savings and service enhancements resulting from embracing Six Sigma methodology as a way of doing business. " ...

Via Hexion Specialty Chemicals: Global Six Sigma & Business Improvement Award

Six Sigma drives Hexion's plant data reporting and analysis investments (PDF).

Hexion participates in industry efforts in benchmarking and best practice models. ...

Instantis Six Sigma Maturity Model (PDF): "The Six Sigma Maturity Model is a good representation of the journey Hexion has gone through so far in our Six Sigma deployment. My prior experience at multiple Fortune 100 companies also coincides with the model, commented Nipesh Shah corporate vice president of Six Sigma at Hexion Specialty Chemicals, the world’s largest producer of binder, adhesive, coating and ink resins for industrial applications. We look forward to participating in this research effort to get a better sense of how our progress stacks up against our peers. "

Here are some insights into their Six Sigma journey. ...

Via Aberdeen Group's Lean Six Sigma Benchmark Report (PDF): "We went after the best. We took plant managers and individuals who managed quality across the North American continent. They became our Black Belts. It takes time, but after 2 years we had a breakthrough. -Jonathan Squire, Hexion Specialty Chemicals, Inc. "

Toyota Kaizen Challenge Winner

Toyota North American Parts Organization recognizes YRC Worldwide with its Kaizen Challenge Award for continuous improvement. Toyota leverages kaizen practices among its suppliers as part of the company's production system, TPS.

... "The 2008 Kaizen Challenge award recognizes YRC Worldwide for developing a plan to improve delivery efficiency for oversized and heavy parts such as truck beds, truck frames, drive trains, transmissions and engines from parts distribution centers and vendors to Toyota dealers throughout the country. Plan elements included nationwide implementation of a standard process for equipment placement and material handling and a customer service process to coordinate delivery service with dealers. As a result of this process, damage claims and injuries were virtually eliminated. " ...

Via YRC Worldwide: Honor from Toyota NAPO

Six Sigma Green Belts Get Trained

Clinsys Clinical Research will partner with North Carolina State University to train Clinsys employees for Green Belt in Six Sigma. ...

... "During the month of March, these employees will participate in a two-part training program directed by NCSU’s College of Textiles and Industrial Extension Service (IES) departments. Six Sigma is a data-driven approach for eliminating defects – defined as anything outside of customer specifications / satisfaction – in any process. Clinsys’ Green Belt trainees will use the Define, Measure, Analyze, Improve and Control (DMAIC) methodology to make improvements in the day-to-day operations that directly impact client deliverables. " ...

Via Clinsys: Six Sigma Green Belt Training

Six Sigma Perfect for Healthcare

Six Sigma has strong role in health care improvement now and in future, as it can be focused on reducing defects in the quality of patient care, ultimately improving and saving lives. What better payback is there? ...

... "Six Sigma stands apart from other process improvement methods because it focuses on reducing variability thereby reducing errors or achieving defect free products or services. It's seems like the perfect methodology to apply in reducing medical errors in our country. " ...

Via ADVANCE for Health Information: Healthcare Process Improvement

Ford Six Sigma QOS Quality Operating System

Ford, where quality is not typically job one (my wife's Windstar check engine light was on for a decade), is seeing some success from Six Sigma improvement methods that reduce variation. The company packages its methods into a management system, or QOS. The critical to quality (CTQ) variables are monitored to drive customer satisfaction. ...

... "Ford also provides assembly plant teams the necessary tools to deliver quality in the manufacturing process. For example, the company’s Quality Operating System (QOS) is critical for identifying and correcting problems within the manufacturing facilities. QOS is implemented in each plant by Variability Reduction Teams (VRT) – cross-functional groups of engineers, plant management and product specialists, including the company’s most skilled problem solvers who’ve been trained through Six Sigma. Each team is assigned to one of 12 vehicle subsystems crucial to customer satisfaction, such as paint or body interior, and examines every detail, looking for imperfections so slight that even the untrained eye, or ear, could not detect them. " ...

Via Ford: Warranty Repairs Costs Decline

Simple Checklist Reduces Defects and Increases Quality

Whether in healthcare, aviation, or manufacturing, the simple checklist can impact quality in positive ways. ...

... "Very few U.S. hospitals are using the surgical safety checklist, though Berwick aims to introduce it in the 4,000 hospitals participating in his institute's programs. The major barrier to widespread adoption is physician attitudes, several experts said. " ...

Via Washington Post: Surgery Checklist

Cost of Quality Moves Up the Value Stream

Expect manufacturers to put pressure on their suppliers to eliminate defects throughout the value stream in order to achieve Six Sigma quality levels. ...

... "Manufacturers applying Six Sigma and Lean are eager to remove waste completely from their value streams, which includes avoiding the production of defective materials in the first place, states John Fishell, director of product management ... " ...

Via Purchasing: Quality

Six Sigma Supply Chain Visibility

Manufacturers will shift their strategies to more efficient supply chains and will enable Six Sigma improvement programs through line-of-sight visibility to performance. ...

... "Pike argues supply chain visibility is becoming even more critical with the merging of lean manufacturing and six sigma drivers, which seek to identify and remove the causes of defects and errors in manufacturing processes. " ...

Via Logistics, Australia: Adaptive Supply Chain

Six Sigma Energy Savings

Six Sigma projects focused on energy reduction deliver operational cost savings and reduces an enterprise's carbon footprint. ...

... "Project recommendations from a Six Sigma study demonstrated that the overall costs of using demineralized water could be cut significantly. The study points to detection and repair of faults associated with steam and water analysis systems, problem valves, vacuum pump overflow, and other issues. " ...

Via Science Daily: Save Energy

Cycle Time Improves with Lean Six Sigma

Army trims cycle times and eliminates defects with Lean Six Sigma projects. ...

... "Those delays became one of the first targets of a Lean Six Sigma project under Lt. Gen. Michael Rochelle, Army deputy chief of staff for personnel. " ...

Via FCW: Army uses Lean

Warranty Chain Management Enables SixSigma Defect Reduction

Trane uses HP and PolyVista warranty chain management solution to rapidly identify product quality and warranty-related issues through automated early detection and root cause analysis. ...

... "The solution, which was up and running in eight weeks, helps Trane quickly identify product quality and warranty-related issues through automated early detection and root cause analysis. After correcting any current issue detected by the solution, manufacturing teams at Trane can pass the information on to the design or engineering teams to help avoid problems in future products, as well as to vendors and suppliers to help improve long-term product reliability. Through this process, the solution offers reduced warranty costs, improved product development, sourcing and manufacturing processes, and better customer satisfaction. " ...

Via HP: Warranty Chain Management Early Warning System For Defects

Select Continuous Improvement Program to Compete Globally

Embrace continuous improvement to compete effectively in your industry and marketplace. Be prepared to staff a program management office and support the culture change necessary for a lean manufacturing or Six Sigma journey. Business process focus comes first. But, software systems can support change, automation, reduction of manual efforts. ...

... "Six Sigma uses statistical analysis to reduce variation. By reducing variation, the probability of producing a defect is less. " ...

Via IndustryWeek: Which Continuous Improvement Program Is Appropriate For Your Enterprise?

Six Sigma Defect Elimination: Haz Waste Elimination

US Coast Guard uses Six Sigma DMAIC process to minimize defects in the elimination of hazardous waste. Voice of the customer surveys identified training improvements as low-cost, low-risk approach to creating measureable change in performance. Green techniques to environmental improvement is recognized. ...

... "The team followed the Six Sigma DMAIC process improvement model (Define, Measure, Analyze, Improve, and Control). The team designed and performed a comprehensive Customer Survey targeting all the Environmental Compliance Officers (ECOs) from the various tenant units. Customer surveys revealed that training and knowledge of the system was sporadic due to ECO turnover and the lack of tenant command emphasis. The team quickly acknowledged that a robust and continual education and outreach program would be needed to improve the overall success of the Hazmat management program. In April 2005, a comprehensive training session was successfully implemented and is now offered on a monthly basis by the EB. " ...

Via US EPA: 2006 Awards: Champions of Green Government Awards | Region 9: Federal Facilities ...

Hospital Six Sigma Process: Specimen Management ...

Medical centers are collaborating to redesign processes for defect-free specimen management, which translates into much higher quality diagnoses. ...

... "The collective is finding success with quality-control methods -- such as checklists and automated specimen processing -- that were adapted from Toyota's production system and General Electric's Six Sigma principles for reducing manufacturing defects. " ...

Hospital Six Sigma Process: Specimen Management: Via Pittsburgh Post Gazette: Hospitals move to cut dangerous lab errors ...

Six Sigma Zero Defects: Target Zero ...

Excellent interview explores committment to achieving Six Sigma defect levels. ...

... "An example of our commitment is that we have implemented a programme called Target Zero, which is a process of educating the workforce to continuously improve our internal philosophy and methods — with the aim of getting zero defects that affect our customer base. This is Six Sigma and beyond. " ...

Six Sigma Zero Defects: Target Zero: Rewarding quality: Via Mobile Europe

Six Sigma: Good Enough or Defect Free ...

Six Sigma performance requires employees and management to embrace a passion for first-time perfection, elimination of waste, and continuous improvement. Mike Hoban explores the mindset needed to move beyond good enough to defect free processes. ...

... "Many businesses have started Six Sigma quality programs, with six sigma being a statistical term for 3.4 defects per million. " ...

Six Sigma: Good Enough or Defect Free: Via Northwest Indiana News: Is 99.9% good, good enough? ...

Six Sigma Data Certification ...

Sid Frank and Duffie Brunson explore the application of Six Sigma defect elimination to the business of data quality, where synergy exists. ...

... "Since Six Sigma and data quality improvement share the same goal of reducing defects, data certification improvement programs are natural candidates for the application of Six Sigma methodologies. " ...

Six Sigma Data Certification: Via B-Eye Network: The Partnership of Six Sigma and Data Certification

Six Sigma Process Excellence: Value Engineering for BPO ...

Six Sigma process excellence is a journey as business process root causes are identified and the defect continuously eliminated. Moumita Bakshi Chatterjee explores the methodology of value engineering applied in the business process outsourcing BPO industry. ...

... "The process consequently runs more efficiently, which increases output.
Process excellence is a continuous journey and is largely attributable to Genpact's discipline of Six Sigma. " ...

Six Sigma Process Excellence: Value Engineering for BPO: Via The Hindu Business Line : Measure for measure

Mistake-Proofing: Six Sigma PokaYoke ...

Rebecca Morgan explores the concept of poka-yoke or mistake proofing to proactively drive to high quality and low defect levels. ...

Mistake-Proofing: Six Sigma PokaYoke: Via Fresh Inc.: Getting the Laundry Out ...

... "In the last century we even decided that quality should be treated as a science and created the profession of quality management. Since then we've developed tools like quality circles, total quality management, statistical process control, and Six Sigma, all designed to help us reach the nirvana of zero defects. " ...

A Brief Tutorial: "An example cited by Shingo early in the development of poka-yoke shows how finding mistakes at a glance helps to avoid defects. Suppose a worker must assemble a device that has two push-buttons. A spring must be put under each button. Sometimes a worker will forget to put the spring under the button and a defect occurs. A simple poka-yoke device to eliminate this problem was developed. "

Via Automation World Article: Pokayoke Sensing For Color (Features): "Pokayoke is a lean manufacturing technique by which mistake-proofing devices are used to keep errors from turning into defects. Tom Rosenberg, industry manager at sensor manufacturer Balluff Inc., in Florence, Ky., defines the term further as a system that is always checking. It's making sure the part is manufactured correctly before proceeding to the next stage of manufacture. "

The 7 Wastes of Lean: "These kind of issue can be tackled using mistake proofing methods (Pokayoke) and by understanding the machine process capabilities of the production equipment. Statistical process control (SPC) will also help monitor production outputs and give warning of problems before they occur."

ZeroDefect Manufacturing: Subaru Committment ...

ZeroDefect Manufacturing: Subaru Committment: In the latest brochure for the 2006 B9 Tribeca, Subaru highlights its benchmark development and manufacturing process. Subaru of Indiana Automotive, Inc. manufactures the B9 Tribeca for the global market and made a major investment in retooling the factory. A zero defect process is used to ensure quality and customer satisfaction. Quality checks are built into every step of the assembly process and pokayoke control boxes to track the process steps. Also, a significant investment in robotics was made to increase the flexibility in manufacturing. ...

TQM Total Quality Management: Sales Process Application ...

Total quality management principles are applicable to any process where success can be measured. The sales process is a candidate for TQM as each loss can be treated as a defect and can be learned from. Peter Gilbert explores the challenges of the sales process and the benefits of applying TQM total quality management to continuous improvement for future success. ...

TQM Total Quality Management: Sales Process Application: Via BizCommunity: Using the Win/Loss Analysis

... "If your sales force is not beating the averages in winning major opportunities, then it is time to consider applying the same database-driven Total Quality Management (TQM) techniques used in other aspects of business. " ...

SixSigma DPMO Data Profiling ...

SixSigma DPMO Data Profiling: Via DMReview: Data Profiling in a Compliance World

Amiya Mansingh and Sreedhar Srikant write about regulatory data management in a compliance-driven environment (Basel II, Sarbanes-Oxley and HIPAA). Measurements can be applied to data quality to drive defect per million opportunities (DPMO) to Six Sigma levels ...

... "If the enterprise already has a quality management program in place, such as Six Sigma, then metrics such as defects per million (DPMO) can be employed. Metrics can be aggregated to provide a data quality indicator " ...

Six Sigma Progress ...

Reducing Medical Errors: A Review of Innovative Strategies to Improve Patient Safety.

... "The Six Sigma approach is a philosophy and a type of analytic thinking that can permeate an organization and drive behavioral change. Quality, safety, effectiveness and efficiency go hand in hand. Improving quality and safety is not only a moral imperative for us. It also makes solid business sense. We have made a significant investment to provide foundation training for virtually all of our employees. We have extensively trained almost 200 Six Sigma experts that are called Black Belts. These experts are leading more than 200 distinct defect reduction projects, with several dozen having been completed. Six Sigma is a statistical measure representing virtual perfection, defined as 99.9997 percent quality, or no more than 3.4 errors per million opportunities. Our pursuit of Six Sigma quality is in its early stages, and we also have much more to achieve, but we are making great progress. " ...

Lean Six Sigma Management Techniques ...

DEPARTMENT OF DEFENSE PART ASSESSMENTS ...

... "Has the program taken meaningful steps to address its management deficiencies? The introduction of Lean thinking, Theory of Constraints, and Six Sigma have proven to increase efficiency in other services' depots. These management techniques have reduced cycle times and costs. The Air Force is also applying them to its depot programs and expects to realize efficiency gains. This should allow the Air Force to reduce defect rates and increase due date performance, which are captured in some of their performance metrics. ...

SixSigma Drives Healthcare Defect Reduction ...

Beth Lanham on Six Sigma in healthcare. Interview by Luc R. Pelletier. ...

... "Beth Lanham, BSN RN, is a Six Sigma Coordinator in the department of quality management, staff development and safety, at Froedtert Hospital in Milwaukee, WI. Ms. Lanham received her bachelor's degree from Otterbein College in Westerville, OH and has an extensive clinical and management background in critical care nursing. In April 2000, Ms. Lanham completed the Six Sigma Black Belt training program through the American Society for Quality. She is currently working as a Six Sigma Black Belt and is actively involved with numerous committees and projects aimed at reducing medical errors and enhancing patient safety. Ms. Lanham has presented Six Sigma initiatives at the International Quality Congress sponsored by the American Society for Quality, the University Healthcare Consortium National Conference, the International Quality and Productivity Center National Conference on Six Sigma for Healthcare Providers, and the American Hospital Association Patient Safety Leadership Fellowship Retreat. " ...

Six Sigma Process Performance ...

Oklahoma Department of Commerce - Workforce - Business Workforce Assistance - Best Practices

... "Six Sigma represents a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. " ...

The Sixth Sigma Approach ...

Prepared Witness Testimony: Freeman, Ken

... "The Six Sigma approach is a philosophy and a type of analytic thinking that can permeate an organization and drive behavioral change. Quality, safety, effectiveness and efficiency go hand-in-hand. Improving quality and safety is not only a moral imperative for us, it also makes solid business sense. We have made a significant investment to provide foundation training for virtually all of our employees, and we have extensively trained almost 200 Six Sigma experts called Black Belts. These experts are leading more than 200 distinct defect-reduction projects, with several dozen having been completed. Six Sigma is a statistical measure representing virtual perfection, defined as 99.9997% quality, or no more than 3.4 errors per million opportunities. Our pursuit of Six Sigma quality is in its early stages and we also have much more to achieve. But we are making great progress." ...

Six Sigma Healthcare Success Story ...

Reducing Medical Errors: A Review of Innovative Strategies to Improve Patient Safety

From Prepared Witness Testimony: Mr. Ken Freeman, Chairman & CEO, Quest Diagnostics Incorporated, One Malcolm Avenue, Teterboro, NJ, 07608 ...

... "we have incorporated these concepts into our own Six Sigma initiative to help take us to the next level in improving quality and safety. The Six Sigma approach has paid dividends for countless manufacturing companies during the past twenty or more years, including General Electric, Texas Instruments, and Motorola. We are the first major company in healthcare services to pursue Six Sigma, and have been underway for more than two years. Six Sigma is already changing Quest Diagnostics, and I am absolutely convinced that it will ultimately change the world of healthcare quality and safety for the better, forever. During today's hearing, you will learn about many fascinating and important technology solutions that will reduce errors and improve safety. But technology can only be as effective as the processes that employ it. The Six Sigma approach is a philosophy and a type of analytic thinking that can permeate an organization and drive behavioral change. Quality, safety, effectiveness and efficiency go hand-in-hand. Improving quality and safety is not only a moral imperative for us, it also makes solid business sense. We have made a significant investment to provide foundation training for virtually all of our employees, and we have extensively trained almost 200 Six Sigma experts called Black Belts. These experts are leading more than 200 distinct defect-reduction projects, with several dozen having been completed. Six Sigma is a statistical measure representing virtual perfection, defined as 99.9997% quality, or no more than 3.4 errors per million opportunities. Our pursuit of Six Sigma quality is in its early stages and we also have much more to achieve. But we are making great progress." ...

Inventory Stock-Outs Decreased Using Six Sigma DMAIC Process ...

Inventory Stock-Out Six Sigma DMAIC Process ...

From Decisioneering, Inc ...

... In this case study, the Six Sigma DMAIC process is augmented with powerful optimization tool, CrystalBall, to decrease the number of inventory stock-outs while minimizing inventory costs for a company that sold perishable inventory. The Six Sigma project team resolved this problem and lowered the defect rate for stock-outs. The use of a stochastic solution, such as CrystalBall, in the DMAIC process resulted in lower costs than other methods. Also, the optimization model is run dynamically in the control phase of the DMAIC process to incorporate the latest demand and delivery information to determine if the improvement in defect rate can be sustained.

Crystal Ball is a suite of Excel add-ins that help turn your existing engineering and process spreadsheet models into dynamic forecasting tools. Today, Crystal Ball is the tool chosen by more than 85% of the Fortune 500. Companies like GE, Motorola, Honeywell, Seagate, Black & Decker, and Osram Sylvania all rely on Crystal Ball to manage risk, reduce variability, and make more informed business and strategic decisions. Crystal Ball is for anyone who uses spreadsheets and needs to forecast uncertain results. Six Sigma Black Belts, Master Black Belts, Green Belts, and other practitioners in nearly every industry, from manufacturing to software to pharmaceuticals to consulting, all rely on Crystal Ball to improve the quality of their Six Sigma analyses. In addition to Monte Carlo simulation, key Crystal Ball features include distribution fitting to historic data, correlation of distributions, sensitivity analysis, precision control of simulations, and forecast filtering. ...

Since 1986, Decisioneering, Inc. has been providing decision analysis software and solutions that empower individuals and organizations to make better decisions. Trust the leader in risk-analysis software to deliver better outcomes by defining risk and uncertainty. In October 2004, Decisioneering, Inc. was ranked on the Deloitte & Touche Colorado Technology Fast 50 list of fastest-growing technology companies in Colorado. This is the seventh year in a row that Decisioneering has made the list, which is based on five-year percentage revenue growth.

Defect Rate DPMO: The Federal Aviation Administration Integrated Capability Maturity Model

From Federal Aviation Administration, Integrated Capability Maturity Model for the Acquisition of Software Intensive Systems ...

... "Process measurements provide for organizational process improvement as well as project planning and tracking. Product quality metrics are related to process metrics since product consistency is highly correlated with production process consistency. The process metrics may include product attribute measurements such as defect rates, but they do not include direct product quality measures such as those related to the evaluation of product performance: size, durability, maintainability, usability, or safety. Some metrics can be both process and product related, depending on the way they are to be used, such as checksheet data that sums to product defect rates, but also provides indications of where in the process defects are inserted." ...

Defect Rate DPMO: FIVE CRITICAL QUESTIONS IN PROCESS IMPROVEMENT

From FIVE CRITICAL QUESTIONS IN PROCESS IMPROVEMENT, Richard B. Waina, P.E. Ph.D. writes ...

... "Key indicators to help determine whether the process goals are being accomplished can then be derived. Typical measures include planned vs. actual (xxx), defect rate, amount of rework (quantity or cost), and productivity measurements. Technical and process leaders determine key indicators that measure progress against the goals. These are reviewed and approved by the appropriate organization and department leaders. " ...

Defect Rate DPMO: Implementing Performance Measures

From VPP, DOE Hanford Site ...

... "include ratios such as productivity (output to input), cost per unit, time per unit; differences such as profit (selling price minus input cost); or a series of individual terms such as quantity produced, rework costs, rework time, and reject/defect rate. State and define underlying 'values' and quality factors such as safety, rework, environmental soundness, customer satisfaction. State optimal direction (Maximize, Minimize) " ...

Defect Rate DPMO: NO-CLEAN SURFACE MOUNT REFLOW PROCESSES-FIELD EXPER...

From Illinois Waste Management and Research Center (WMRC), David Heller and Jack Leonard write ...

... "elimination of CFC solvent as a surface mount printed circuit board cleaner has caused a thorough reevaluation of cleanliness requirements and process technologies. This change has driven a similar evolution of the surface mount solder reflow process. these changes include the use of new inert reflow atmospheres and 'no clean' paste formulations. This study discusses the relative costs and merits of inert reflow including a statistical study on the impact of an inert atmosphere on the solderability and defect rate for fine pitch components in conjunction with no clean pastes." ...

Defect Rate DPMO: Texas Instruments Semiconductor Group - Midland, TX:Quality Improvement Teams

... "As a part of the manufacturing strategy, Quality Improvement Teams (QITs) have successfully provided the catalyst for virtually all product and process improvements at TI/SG/MP. In 1985, the TI/SG/MP cost of quality was $9 million with a defect rate of 3,500 ppm and a yield of 80% overall. TI/SG/MP made a commitment on quality that year, and the commitment led to a culture of total quality, continuous improvement, and employee education. Each year, roadmaps were developed, data was collected and analyzed, and processes were evaluated. Team-building was accomplished through employee education and skills development -- and importantly -- by using QITs. " ...

Defect Rate DPMO: FDA/ORA CPG 7124.31

... "Surgeon's gloves and patient examination gloves that contain holes are adulterated devices. Adulteration will be determined on a lot by lot basis for enforcement purposes. [See 21 CFR 800.20.] Surgeon's gloves whose leakage defect rate exceeds an AQL of 2.5% and patient examination gloves whose leakage defect rate exceeds an AQL of 4.0% will be deemed actionable as described in 21 CFR 800.20. " ...

Defect Rate DPMO: Process Control Statistics

From US Dept of Agriculture, FSIS, REGULATIONS AND DIRECTIVES DEVELOPMENT ...

... "Process Control Statistics - Loss of process control is then assessed by determining if ?defect rate? has become greater than what would be expected by ?chance alone? Approach can be used with either ?variables? (quantitative data) or ?attribute? (+/- or binned quantitative data) sampling plans" ...

Defect Rate DPMO: PERFORMANCE STANDARD

From AUTOMATED DATA PROCESSING (ADP) MAINTENANCE SERVICES, PERFORMANCE-BASED SERVICE CONTRACTING (PBSC) ...

... "The adjustment factor refers to an amount that is deducted from the observed defect (ODR) when random sampling is with extrapolated deductions (RSED) or random sampling without extrapolated deductions (RSWED) is used to calculate the defect rate (DR) for the entire population. This factor is determined from standard tables." ...

Defect Rate DPMO: High Tech Warranty Project Comment ...

From High-Tech Warranty Project -- Comment, P994413, Steven W. McDougal writes ...

... "Manufactured goods--e.g. garments, refrigerators, automobiles--are subject to defects in materials and workmanship: manufacturing defects. These occur essentially at random. Manufacturers can typically reduce defect rates by spending more money; however, defects can never be entirely eliminated." ...

Warranty Protection for High-Tech Products and Services, Federal Trade Commission

Manufacturing Excellence: Texas Instruments Semiconductor Group - Midland, TX:Quality Improvement Teams

From BMP Surveys Online ...

... "Manufacturing excellence has been achieved by the direct involvement of focused groups of operators, technicians, and managers working together to solve specific problems. The creation of self-managed work teams empowered employees to act where they felt they were responsible for eliminating conditions that caused or contributed to problems. One team developed the idea of Total Productive Maintenance as a way to eliminate problems that cause equipment breakdown. Other teams developed application of a soft touch marking system and an alternative lead frame carousel. The automation of a mechanical/visual defect control system resulted in a system that uses eight people in two manufacturing modules today. " ...

Predictive Maintenance: Portec Rail Products, Inc. Completes the Acquisition of Salient ...

From Yahoo News (press release) ... hardware and sophisticated data management software systems, marketed under the "IntelliTrack®" brand, enable railways to do predictive maintenance, which can ...

... Portec Rail Products, Inc. (Nasdaq: PRPX - News) announced today that it has completed the merger whereby Portec Rail acquired 100% of the outstanding shares of Salient Systems, Inc. for a combination of Portec Rail stock and cash. Each Salient Systems, Inc.'s common stock shareholder will receive approximately 0.24 shares of Portec Rail Products, Inc. common stock and approximately $1.45 in cash for each of their shares of Salient common stock. The combined merger consideration payout to Salient System Inc.'s common shareholders is approximately $12.8 million. This strategic combination significantly expands Portec Rail's services portfolio and strengthens its global footprint in the growing market for Friction Management, Wayside Detection and Operating Asset Data Management, thus creating a leading global entity to provide essential products and services to the railway industry. ...

Equipment and asset maintenance is enabled by advanced techniques, such as predictive maintenance. Predictive maintenance eliminates unexpected breakdowns through early detection of developing problems. Predictive maintenance results in improved productivity and high operating asset utilization rates. A best practice predictive maintenance program relies on real-time data and advanced analytics. Use of computerized equipment drives the detection of potential problems long before the defect develops into equipment degradation. The analysis and interpretation of operating data is key to determining what kind of maintenace and when that maintenance should be applied. Today's predictive maintenance techniques leverage the best practices of the lean manufacturing methodology.

Portec Rail Products, Inc., headquartered in Pittsburgh, Pennsylvania, manufactures, supplies and distributes a broad range of railroad products, including rail joints, rail anchors and spikes, railway friction management products and load securement systems. The Company's largest business unit, the Railway Maintenance Products Division, operates a manufacturing and assembly plant in Huntington, West Virginia, and is also headquartered in Pittsburgh. The Company has a Canadian subsidiary headquartered near Montreal with a manufacturing operation in St. Jean, Quebec. The Company sells load securement systems to the railroad freight car market through its Shipping Systems Division located near Chicago, Illinois. The Company also manufactures railway products and material handling equipment at its wholly- owned subsidiary in the United Kingdom with operations in Wrexham, Wales and Leicester, England.

Six Sigma TPS: Toyota Tries to Keep Up With…Toyota?

From TheCarConnection.com ... rankings. Based on Six Sigma standards, too, Toyota 's US built plants are well off the defect rate of vehicles built in Japan . ...

Six Sigma Program: Principled Profit - Where's the Paradox ?

From Business Wire (press release), CA ... Zero defect programs like TQM and Six Sigma are used to improve business processes but no one is using this methodology to improve ethical behavior. ...

Synchrogenix Information Strategies, Inc, founded in 1986, is a strategic business consulting and communications company delivering training, new media, marketing communications, software documentation and scientific communications to many Fortune 500 companies. Clients include AstaZeneca, DuPont, Endo, Johnson and Johnson, GE and Centocor.

Six Sigma Tools: Pivotal Resources Launches Oaktree

From PR Newswire (press release) ... Online Six Sigma Reference Tool Designed to Streamline Improvement Projects WALNUT CREEK, Calif., June 21 /PRNewswire/ -- Pivotal Resources, a leader in Six ...

Pivotal Resources is a global consulting and training firm that focuses on organizational improvement through the implementation of Six Sigma, Lean and other methodologies. Pivotal Resources has published three highly respected books related to Six Sigma Deployment -- The Six Sigma Way, The Six Sigma Way Team Fieldbook and What is Six Sigma? The company offers a range of process management solutions, serving Fortune 500 companies in diverse industries all over the world. With offices in North America and Europe, the company is headquartered in Walnut Creek, California.

Pivotal's Training Options:

Executive Overview introduces top leaders to Six Sigma concepts, tools and implementation strategies. Highly interactive, this one-day session provides an overview of the DMAIC process, helps clarify roles and responsibilities, and will prepare leadership for selecting and approving DMAIC projects, as well as their role in driving the effort.

Champions play a critical role in providing leadership support and guidance to Six Sigma improvement projects. This one- to two-day workshop will help Champions develop working knowledge of major phases and tools of DMAIC, clarify their key responsibilities, and give them the tools they need to refine initial project charters.

Pivotal's Black Belt, Green Belt and improvement team training builds a breadth of management and analysis tools, while focusing on the methods needed to put Six Sigma improvement on a fast track. Our standard two-week format — supplemented by advanced skills (see below) — is engaging, effective and builds powerful change leaders.

Unlike the DMAIC process, which focuses on defect reduction and variation control, the goal of Lean methodology is to streamline flow and eliminate non- value adding steps (waste) from an entire end-to-end process. Pivotal's Lean Analysis and Attainment Workshop teaches participants how to successfully identify and remove waste, creating an optimized overall system.

The ability to create new processes, products and services is a key to sustained success. Using DMADV methodology, our Six Sigma Design skills enable people to build new capabilities and take performance to new levels through a combination of advanced analysis and creativity tools.

Six Sigma Training: International Institute for Learning, Inc. Launches New Company - ...

From PR Newswire (press release) ... (IIL), a leading provider of full-service Project Management, Microsoft Project(R), and Six Sigma training, consulting and development solutions, announced ...

IIL provides the training that professionals need to manage today's complex issues. An internationally-recognized leader, IIL offers state-of-the-art training and consulting services in Project Management, Theory of Constraints and Six Sigma to some of the biggest and best-managed companies worldwide.

Six Sigma is the quality and business management initiative credited with taking millions of dollars of cost out of hundreds of corporations, while simultaneously improving the quality and customer satisfaction of those same corporations. Six Sigma starts by aligning all levels of an organization to the goals established by the top leadership. Leaders are instructed on how they should set goals and how they should tie incentives to those goals. They also learn how to clearly identify measurements that serve as indicators of improvement in organizational processes as well as processes that deliver products or services directly to the customer. Once those measurements are clearly identified they are regularly monitored for improvements.

The Six Sigma Black Belt Certificate Program: A 16-day program spread over four months. Black belts are at the core of every Six Sigma implementation. As project managers of the bite size, high impact Six Sigma project, Black Belts are accountable for the root cause identification and elimination of defect drivers.This learning series is designed to provide participants with the knowledge, techniques and tools necessary to successfully fulfill the Black Belt role.

Who Should Attend: Anyone wanting to learn this highly valued skill set. Anyone wanting to use the DMAIC methodology to eliminate a current business problem. Anyone wanting to successfully fulfill the role of a Six Sigma Black Belt. Performance Focus: Using a pre-determined real business problem, participants will learn the proven tools and techniques of the Define, Measure, Analyze, Improve and Control (DMAIC) Methodology. An IIL Master Black Belt Instructor works directly with each participants to show them when, why and how they can use this knowledge to identify and eliminate the vital few defect drivers that are adding cost to the organization and dissatisfaction to the customer. The IIL hands on approach gives participants practice using the tools and techniques on processes they are familiar with and produces and immediate ROI for the organization.

Six Sigma Factory: Listing the elements of a world-class factory?

From INQ7 Interactive, Inc., Philippines ... For instance, ISO 9000, Deming, Juran and Malcolm Baldrige Awards, Six Sigma just focus on quality management systems, ISO 14000 on environment management ...

Six sigma, a key component of the world-class factory... ... A world-class factory must have high quality outputs, inputs, and processes. It must have both low external failure (defects that escape the factory undetected), and low internal failure (defects discovered and fixed inside the factory). Defect free sales are not enough if there are extensive rework and repair operations going on inside. Inspection between stations should be nil or minimal. A WCF eliminates most incoming inspection as they partner only with reliable suppliers ...

Lean Manufacturing: Trade, Terrorism discussed at candidates forum

From San Jose Mercury News, CA ... So anyone who is promising to bring back manufacturing jobs doesn't understand lean manufacturing continues quality improvement.". ...

...2004 Recipients of the 2004 Shingo Prize for Excellence in Manufacturing. Dubbed the "Nobel prize of Manufacturing" by Business Week, the Shingo Prize is increasingly being recognized as the premier manufacturing award and recognition program in North America. Nine state-level awards and a public-sector category, primarily for Military Depots doing re-manufacturing, have been implemented in recent months.

Three notable achievements of the 2004 recipients include: one, 7 of the 12 achieved product quality of less than 10 "returned parts per million opportunities" from the customer; two, 7 of the 12 have inventory turns of more than 25 per year (compared to a U.S. average of 8); and three, premium freight as a percent of production costs averaged 0.12 percent. These data cover the full-year of 2003 and are all clear indicators of world-class manufacturing achievements.

"Once again the recipients of the Shingo Prize demonstrate that they are prepared to weather economic uncertainty by not wasting precious manufacturing and business resources, "said Ross Robson, Shingo Prize executive director. "Shingo Prize recipients and lean manufacturers clearly stand out among the manufacturers of North America in terms of quality, cost, delivery and business results."

This year's Shingo Prize Recipients are:

ArvinMeritor Light Vehicle Systems Gladstone plant, Columbus, Ind. -- This facility proudly manufactures complete exhaust systems and components for today's leading car manufacturers. Through an engaged workforce of more than 700 people who are trained in lean principles, team building and employee involvement practices, substantial quality and productivity improvements have been made. Most notably, those improvements have included a decrease in customer PPMs of 72 percent since 2000, a decrease in supplier PPMs of 99 percent since 2000, a 54-percent decrease in the cost of non-quality since 2000, and an on-time delivery average of 99.9 percent since 1999.

Delphi Corporation, Delphi Electronics and Safety, Delnosa 5 & 6 Operations, Reynosa, Mexico -- Delnosa 5 & 6 manufactures over 24,000 vehicle electronics products daily for 72 customer locations in 11 countries for Delphi Corporation (NYSE: DPH - News). Delnosa's product line includes Audio, Mobile Multimedia, Telematics (interactive satellite technology), Navigation Radios, and Antenna Electronics. Delnosa also produces over 16 million molded and decorated plastic parts and assemblies each month that are used in Delphi facilities globally. In the last three years, Delnosa has increased productivity by 41%, increased inventory turns by 70%, improved first time quality by 76%, and increased asset utilization by 40%. Delnosa's 2,500 employees reached 200% participation in the employee suggestion program in 2003 and have currently worked over 22 million hours without a lost workday accident.

Delphi Electronics & Safety, Kokomo Operations, Plants 7 & 9, Kokomo, Indiana -- Kokomo Operations, Plants 7 & 9 is a vehicle electronics manufacturing facility employing over 1,100 people. These employees, represented by UAW Local 292, produce approximately 12 million units annually across four major product lines: audio components, power train controllers, inflatable restraint system electronics and electronic climate controllers. Applying the lean manufacturing concepts in the Delphi Manufacturing System, the facility has been able to achieve a third straight year of double-digit manufacturing performance, a 24% reduction in inventory, a 51% improvement in first time quality and has reached an annual shipping compliance rate approaching 100%.

Delphi Corporation, Energy & Chassis Systems, Empresas Ca-Le de Tlaxcala, Mexico -- Ca-Le is a battery manufacturing plant of 1,291,669 square feet, founded in February 1990 and located in Tetla, Tlaxcala, Mexico. Operating in a world-wide market, CALE produces two different automotive battery technologies: Hybrid (Antimony -- Calcium) and Maintenance-Free (Calcium-Calcium). Our productive headcount of 575 persons -- through the implementation of lean concepts and techniques -- work daily on EXCEEDING OUR CUSTOMERS' EXPECTATIONS. Our business results, customer satisfaction and quality of our products reflect our commitment with our employees, society and stakeholders.

Delphi Sistemas de Energia S.A. de C.V., Plt. 57; Chihuahua, Chihuahua Mexico -- Located in Chihuahua, Chihuahua Mexico since 1986 and serving 55 customers in 12 countries, Delphi Sistemas de Energia is a top of the line manufacturing organization. Here the combination of people who love their jobs, together with strong leadership, applying continuous learning and lean concepts, along with variation reduction, and defect prevention methods, have all contributed to superior satisfaction levels for customers, stakeholders and employees, creating a positive impact to the community and to the global environment.

Delphi Corporation, Packard Electric Systems. Plant 50, Del Parral Chihuahua, Mexico

Delphi's Packard Electric facility opened in February of 1998 in Hidalgo del Parral (more commonly referred to as Parral) in the southern part of Chihuahua, Mexico. The plant has 141,575 square feet of manufacturing floor space and 2,200 employees. These dedicated employees manufacture 13 families of products in 18 production lines, for 10 different General Motors assembly plants. The Parral plant produces power and signal distribution systems for the automotive industry, more commonly known as wiring harnesses. The motto at this facility is "Our people make the difference." Managers and supervisors say empowering employees and giving them opportunities make things happen. The success of this Delphi facility is attributed to its people.

Delphi Corporation, Packard Electric Systems. Plant 58, Meoqui, Chih. Mexico

The Meoqui Plant is located in the state of Chihuahua, Mexico and has been a part of Delphi Packard Electric's manufacturing footprint since 1987. The 1,800 employees at the 151,000-square-foot facility produce more than three million of wiring systems annually for several General Motors assembly plants in the United States and Canada. Employee commitment and a comprehensive implementation of the Lean-driven concepts within the Delphi Manufacturing System (DMS) have been able to drive operational improvements in cost, quality, delivery and productivity. Some of those improvements include: 20% reduction in customer complaints in 2003; 17% improvement in total cost compared to 2002; scrap reduction of 50% since 2000; first-time quality improvement 72% since 2001; and productivity increase of 35% compared to 2000.

Delphi Packard, Plant 98

Delphi Corporation, Packard Electric Systems, Centro Tecnico Herramental S.A de C.V, Ramos Arizpe, Coahuila.

With a wide variety of products and processes, CENTEC employees are flexible and skillful in successfully delivering parts to nearly 40 customers around the world. The majority of customers are in the US and Mexico, but several are also located in Europe, South America and Asia. The Delphi Manufacturing system drives the 470 CENTEC employees to continuous lean improvements. Elimination of waste, a 75-percent reduction in scrap and the Industria Limpia certification from the Mexican government for being environmentally sound are all part of the accomplishments of which CENTEC employees are very proud. Employees assemble wiring harnesses and their components and electric and electronic connectors. CENTEC now has a 0 IPM (incidents per million) on-time shipping record and have seen FTQ improve 87 percent since 1999. Continuous training of employees at all levels in daily skills and in lean implementation has led to the high quality at CENTEC.

Delphi Packard, Plant 51, Nuevo Casas Grandes Chihuahua, Mexico

Located in the PAQUIME area in the Mexican state of Chihuahua, Nuevo Casas Grandes began operations in March 1985. With strong customer-focused strategies and lean-driven concepts, this 165,000-square-foot plant builds and ships approximately 10,000,000 wiring systems annually to several General Motors vehicle assembly plants in the United States and Canada. The Casas Grandes Plant, which carries the slogan "The Best Plant by its People," has utilized the lean principles within the Delphi Manufacturing System to become one of the most successful plants in Delphi Packard's Mexico West Operations, with zero lost work days, over 80% reduction in RPPM (Rejected Parts Per Million), more than 50% reduction in Customer Complains, and 20% reduction in cost per shipped hour.

Maytag Jackson Dishwashing Products, Jackson, Tenn. -- Maytag Corporation's dishwasher plant is the first appliance manufacturer to earn the Shingo Prize. Associates belong to empowered High Performance Work Teams producing more than 100 dishwasher models daily, with brands including Maytag®, Jenn-Air® and Amana®. The Maytag LeanSigma® philosophy, which combines lean manufacturing methods with Six Sigma tools, was the path for transformation that began in 1999 and achieved significant improvements in Safety, Quality, Cost and Delivery, including a 64% reduction in OSHA recordable injury rate and 84% improvement in first pass quality yield. A very flexible single assembly line with capability to produce "any model/any day" was transformed into 8 single-piece-flow assembly cells with ability to produce "any model/any hour."

Raytheon Missile Systems, Tucson Operations, Tucson, Ariz. -- The employees at Raytheon Missile Systems proudly equip U.S. and allied warfighters with the latest technology to protect world freedom, including the Tomahawk Cruise Missile and Paveway(TM) laser guided bomb. Many of the company's products saw extensive use in Operation Iraqi Freedom. Raytheon's lean efforts have resulted in significant value improvements in product performance, stronger relationships and robust solutions for customers. Raytheon is committed to continue this journey to become a lean enterprise -- with speed, reliability and affordability -- and receiving the Shingo Prize has validated the firm's progress along the path to improvement.

TI Automotive, Cartersville, GA -- The plant produces more than 7.4 million brake and fuel bundles for Ford Motor Co. and DaimlerChrysler's Mercedes-Benz plants in both the United States and Canada. Cartersville team members operate by TI Automotive's own lean system of Common Sense Manufacturing, which is a passionate belief that there is always a simpler, better way. The plant has achieved single-digit ppm, 100 percent on time delivery and a 30 percent reduction in inventory levels. As the world's leading supplier of fluid storage, transfer and delivery systems, TI Automotive's more than 20,000 employees at 130 facilities worldwide are all dedicated to continuous improvement and customer satisfaction.

Finalists

In addition to the Recipients listed, other finalists included Aspect Medical Systems, Newton, MA.; Delphi Lansing Cockpit Plant, Lansing, Mich.; Delphi Energy & Chassis, Saginaw, MI; Delphi Steering Plant 7, Saginaw, Mich.; GDX Automotive, Vehicle Sealing Products, Batesville, AR; GDX Automotive, New Haven, MO; Maytag-Searcy Laundry Products, Searcy, AR; Nemak Corporation of Canada-Windsor Aluminum Plant, Windsor, Ontario, Canada; TI Automotive, Brake Tube Assemblies, Greenville, TN. "Each of these plants are also outstanding in their manufacturing processes," according to Robson.

The Shingo Prize for Excellence in Manufacturing, for manufacturers in the U.S., Canada and Mexico, is administered by the College of Business, Utah State University. Awards for the Recipients and Finalists will be presented at the 16th Annual Shingo Prize Conference and Awards Ceremony to be held May 20, 2004, at the Lexington Convention Center, Lexington, KY. Speakers will include Gary Convis, President, Toyota Motor, Georgetown, KY and Masaaki Imai, Founder and Chairman, Kaizen, Institute, Tokyo, Japan, among others. For more information, go to www.shingoprize.org.

Six Sigma Healthcare: Premier Expands Agreement with Standard Register to Provide ...

From Business Wire (press release) ... Leveraging its deep industry expertise, innovative solutions, Six Sigma capabilities and leading technology, it is helping healthcare organizations enhance ...

Standard Register (NYSE:SR) is a leading information solutions company, with more than 90 years of innovation in improving the way business gets done in healthcare, financial services, manufacturing and other industries. The company helps organizations increase efficiency, reduce costs, enhance security and grow revenue by effectively capturing, managing and using information. Its offerings range from document and label solutions to e-business solutions to consulting and managed services. More information is available at www.standardregister.com.

First, what it is not. It is not a secret society, a slogan, or a cliché. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services. Why "Sigma"? The word is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible. In fact, the goal of Six Sigma is to decrease defects to only 3.4 per million opportunities for a given product or service transaction. The Six Sigma approach has changed the way we work and everything we do in every product and design. Six Sigma is embedding quality thinking, process thinking, and associate engagement across every level and every operation.

Clients are the center of Fulfillment Services' universe of Six Sigma: they define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing, and more. In every attribute that influences client perception we know that just being good is not enough. Delighting our clients is a necessity. It is a MUST. Because if we don't do it, someone else will!

The Six Sigma quality approach requires us to look at our business from the client's perspective, not ours. In other words, we must look at our processes from the outside-in. By understanding the transaction lifecycle from the client's needs and processes, we can discover what they are seeing and feeling. With this knowledge, we can identify areas where we can add significant value or improvement from their perspective.

People create results. Involving all associates is essential to Fulfillment Services' Six Sigma approach. We are committed to providing opportunities and incentives for associates to focus their talents and energies on satisfying clients.

All of our associates will be trained in the strategy, basic statistical tools, and techniques of Six Sigma. Training workshops are offered at various levels:

Yellow Belt Training: Basic tool introduction to equip associates to participate in Six Sigma projects.

Black Belt and Green Belt Training: In-depth quality training that includes high-level statistical tools, basic quality control tools, action workout process, and flow technology training.

DFSS – (Design for Six Sigma) is a systematic methodology utilizing tools, training and measurements to enable us to design products and processes that meet client expectations and can be produced at Six Sigma quality levels.

DMAIC – (Define, Measure, Analyze, Improve and Control) is a process for continued improvement. It is systematically, scientifically, and factually based. This closed-loop process eliminates unproductive steps, often focuses on new measurements, and applies technology for improvement.

Six Sigma – A vision of quality which equates to only 3.4 defects per million opportunities for each product or service transaction; striving for perfection.

Control Chart – Monitors variance in a process over time and alerts the business to unexpected variance which may cause defects.

Defect Measurement – Accounting for the number or frequency of defects that cause lapses in product or service quality.

Pareto Diagram – Focuses on efforts or the problems that have the greatest potential for improvement by showing relative frequency and/or size in a descending bar graph. Based on the proven Pareto principle: 20% of the sources cause 80% of any problems.

Process Mapping – Illustrated description of how things get done, which enables participants to visualize an entire process and identify areas of strength and weaknesses. It helps reduce cycle time and defects while recognizing the value of individual contributions.

Root Cause Analysis – Study of the original reason for nonconformance with a process. When the root cause is removed or corrected, the nonconformance will be eliminated.

Statistical Process Control – The application of statistical methods to analyze data, study, and monitor process capability and performance.

Tree Diagram – Graphically shows any broad goal broken into different levels of detailed actions. It encourages team members to expand their thinking when creating solutions.

Black Belt – Leader of a team responsible for measuring, analyzing, improving, and controlling key processes that influence customer satisfaction and/or productivity growth. Black Belt is a full-time position.

Control – The state of stability, normal variation, and predictability. Process of regulating and guiding operations and processes using quantitative data.

CTQ: Critical to Quality (Critical "Y") – Element of a process or practice which has a direct impact on its perceived quality.

Client Needs and Expectations – Needs, as defined by clients, which meet their basic requirements and standards.

Defects – Sources of clients' irritation. Defects are costly to both clients and to manufacturers or service providers. Eliminating defects provides cost benefits.

Green Belt – Similar to Black Belt but not a full-time position.

Master Black Belt – First and foremost teachers. They also review and mentor Black Belts. Selection criteria for Master Black Belts are quantitative skills and the ability to teach and mentor. Master Black Belt is a full-time position.

Variance – A change in a process or business practice that may alter its expected outcome.

The Define Phase of a Six Sigma Project...

What is the Sixth Sigma? Sigma is the statistical symbol for standard deviation. It is a measure of process variability. The sigma level measures the capability of a process to perform defect-free work. Six sigma means that the process fits well within the customer’s specifications for the output of the process.

Why is 99% performance not good enough anymore? 99% performance, in these contexts, means: Thousands of articles of mail are lost per hour. Drinking water is unsafe for minutes each day. Electricity is not available for hours each month. Thousands of incorrect surgical procedures are done each week. Hundreds of thousands of drug prescriptions are filled incorrectly each year. We would not accept 99% quality in these instances. A higher sigma performance level or process capability is necessary and possible. 

The success of any enterprise is determined by the quality of the decisions it makes. We need to help our organizations make better decisions. Better decisions come from better information. Better information comes from successfully collecting relevant data and converting it into usable information. We need to become successful in our ability to collect and analyze data.

How can Six Sigma create value for your organization? It can help you to reduce operating expenses. It can eliminate rework and scrap. It can improve yields and increase capacity. All of which have a positive effect of the reduction of expenses. Six sigma also creates value for an enterprise by increasing revenue. It can improve product differentiation and shorten the cycle time of bringing new products to market and can increase your customer satisfaction level. An enterprise’s capital expenses can be reduced. Six sigma improvements can postpone or minimize planned capital expenditures. Working capital is another high-value opportunity area for six sigma improvements. Inventory and accounts receivables can be lowered. These benefits go right to the bottom-line of an enterprise.

Motorola initially developed the six sigma black belt methodology in the 1980’s. Allied and GE transformed it into a project-based drive for financial results in the 1990’s. More recently, many companies have embraced six sigma. The methodology involves the use of statistical tools on projects that yield high return-on-investment, or ROI. Projects are implemented by managers, called six sigma black belts. Black belts are expected to deliver annual benefits in excess of one million dollars through four or more six sigma projects per year, with leadership support from executives and six sigma champions.

The road map for the six sigma methodology has these five phases: Define, Measure, Analyze, Improve, and Control. The Define phase leverages these tools: Brainstorming, affinity diagrams, voice of the customer, surveys, focus groups, market research, interviews, and the business case. It is essential to select and scope a six sigma project to deliver high impact results. Understand customer needs and metrics – what they see as critical to quality. Define targets for the project measures. These targets are set for the key process output variables. Determine the financial impact of the project. Develop the project resource estimate. Develop the project business case and create an executive summary. Finally, pass a Define phase gate-review.

When should you use the six sigma methodology? If you have performance gaps in a process, that is driven by business strategy, has a high financial or customer impact, resisted past attempts at improvement, or the root cause and solutions are unknown, then you have an ideal candidate for a six sigma project. Assemble a small working team to complete the Define phase of the project...