[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] Six Sigma is a data-driven approach to process improvement that seeks to identify and eliminate defects or variations in processes to improve efficiency and quality. It is a methodology that focuses on understanding customer needs, measuring current performance, analyzing data to identify root causes of problems, improving processes, and controlling future performance to ensure sustained improvement. The benefits of Six Sigma are far-reaching, impacting various industries including manufacturing, healthcare, finance, and service industries. By implementing Six Sigma, organizations can expect to see improvements in customer satisfaction, cost reduction, increased efficiency, and enhanced employee engagement. This Six Sigma Improvement Process PPT presentation is tailored for senior executives, decision-makers, and key stakeholders who are assessing and planning to launch a Six Sigma program. It is also beneficial for management and staff seeking education on key concepts, principles, and the Six Sigma DMAIC approach to process improvement. Additionally, trainers and facilitators looking to enhance the learning experience with professionally developed training materials by certified Lean Six Sigma Black Belts will find this presentation valuable. This presentation provides a comprehensive overview of the Six Sigma Improvement Process, offering insights and strategies for organizations to achieve excellence in their operations. Whether you are just beginning your Six Sigma journey or looking to enhance your existing program, this presentation is an essential resource for driving impactful and sustainable change within your organization. LEARNING OBJECTIVES 1. Understand key Six Sigma concepts and principles for continuous improvement. 2. Apply Six Sigma tools and DMAIC methodology to solve business problems. 3. Identify key roles and responsibilities in Six Sigma projects and understand project selection and management for maximizing benefits. 4. Identify the critical success factors for successful Six Sigma implementation. CONTENTS 1. Overview of Six Sigma 2. Key Concepts of Six Sigma 3. Critical to Quality (CTQ) 4. Six Sigma Methodologies 5. Six Sigma Toolkit 6. Organizing for Six Sigma 7. Project Selection and Management 8. Critical Success Factors

1. SIX SIGMA
IMPROVEMENT PROCESS
Transforming Processes, Elevating Performance
© Operational Excellence Consulting. All rights reserved.

2. © Operational Excellence Consulting
LEARNING OBJECTIVES
2
Identify key roles and
responsibilities in Six
Sigma projects and
understand project
selection and management
for maximizing benefits.
Apply Six Sigma tools and
DMAIC methodology to
solve business problems.
Identify the critical success
factors for successful Six
Sigma implementation.
Understand key Six Sigma
concepts and principles for
continuous improvement.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
CONTENTS
3
1 Overview of Six Sigma
2 Key Concepts of Six Sigma
3 Critical To Quality (CTQ)
4 Six Sigma Methodologies
5 Six Sigma Toolkit
6 Organizing for Six Sigma
7
Project Selection &
Management
8 Critical Success Factors

4. © Operational Excellence Consulting
THE CASE FOR SIX SIGMA QUALITY
4
Maintain customer
satisfaction and loyalty
Develop a culture of
continuous improvement
and innovation
Improve productivity
Complicated processes
and systems
Rising cost of labor
and materials
Long delivery lead
times
High cost of poor
quality (COPQ)
Increasing market
competition

5. © Operational Excellence Consulting
WHAT IS SIX SIGMA?
5
Toolset
Six Sigma utilizes
statistical and quality
tools to conduct root
cause analysis of
problems, enabling
informed decisions to
improve processes and
outcomes.
Performance
Improvement
Six Sigma is a way to
understand your current
state and envision where
you could be, driving
quality philosophy and
management techniques.
Definition
Six Sigma is a
methodology for
continuous improvement,
aiming to create products
and processes that
perform at high
standards.

6. © Operational Excellence Consulting
WHY IS SIX SIGMA IMPORTANT?
6
*Any product or service that does not meet customer expectation is a defect.
GREATER PROFITS
To maintain customer satisfaction
and loyalty by reducing and
eliminating defects*

7. © Operational Excellence Consulting
SIX SIGMA SUCCESS STORIES: BILLIONS SAVED AND ADDED TO THE
BOTTOM LINE
7
Financial Impact
at GE
Six Sigma added over
$2 billion to GE’s
bottom line in 1999.
AlliedSignal
Savings
AlliedSignal (now
Honeywell) reported
saving $1.5 billion
through Six Sigma.
Motorola Savings
Motorola saved over
$15 billion in the first
10 years of its Six
Sigma
implementation.
Bank of America
Impact
Bank of America
reported a cumulative
financial impact of
over $2 billion by the
end of 2003.

8. © Operational Excellence Consulting
KEY PRINCIPLES OF SIX SIGMA
8
Fact-based
management
Pursuit of
perfection
Employee
involvement
Proactive
management
Data-driven
decision making
Process
focus
Continuous
improvement
Focus on the
customer

9. © Operational Excellence Consulting
“
You can’t solve a
problem on the same
level that it was created.
You have to rise above it
to the next level.
ALBERT EINSTEIN
9

10. © Operational Excellence Consulting
PROCESS PERFECTION: STRATEGIES FOR EFFICIENCY AND QUALITY
10
Process
Improvement
Methodologies
Lean
Theory of
Constraints
Six Sigma
Streamlines processes
by eliminating waste and
optimizing flow.
Identifies and removes
barriers to process
efficiency to maximize
output.
Reduces variation and
defects in processes to
improve quality and
consistency.

11. © Operational Excellence Consulting
SIX SIGMA BUSINESS IMPROVEMENT CONCEPT
11
Traditional process analysis begins by examining internal processes,
while Six Sigma prioritizes market and customer perspectives, aiming
to minimize defects from their viewpoint.
● Disciplined management-by-fact problem solving
● Methodology for optimizing the value chain
● Measurement of performance excellence
Suppliers
Business
Process
Process
Inputs
Process
Outputs
Critical Customer
Requirements
Market
Defects
Variation in the output of
processes causes
defects
Root cause analysis of
defects leads to permanent
defect reduction
Critical Customer
Requirements

12. © Operational Excellence Consulting
QUALITY ESSENTIALS: BUILDING CUSTOMER-CENTRIC PROCESSES
WITH SIX SIGMA
12
Defect
Failing to deliver what the
customer wants.
Critical to Quality (CTQ)
Attributes most important
to the customer.
Process Capability
What your process can
deliver.
Stable Operations
Ensuring consistent,
predictable processes to
improve what the
customer sees and feels.
Variation
What the customer sees
and feels.
Design for Six Sigma
(DFSS)
Designing to meet
customer needs and
process capability.

13. © Operational Excellence Consulting
PROBLEM-SOLVING OBJECTIVE
13
X
X
X
X
X
X
X X
X
X
X
X
X
X
X
X
X
Xxx
X
X
X
Xxx
X
X
X XX
X
X
X
XX
X
X
X
X
X
X
X XX
X
Center
Process
Reduce
Spread
Off-Target Unpredictable
On-Target
Six Sigma identifies and reduces off-target or unpredictable variation to improve
process performance and meet customer requirements consistently.

14. © Operational Excellence Consulting
REAL WORLD: WHAT IS SIGMA PERFORMANCE?
14
20,000 lost mails per hour 7 lost mails per hour
Unsafe drinking water almost 15 minutes each
day
One minute of unsafe drinking water every
seven months
5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week
2 short or long landings at most major airports
daily
One short or long landing at major airports
every five years
200,000 wrong drug prescriptions each year 68 wrong drug prescriptions each year
VS
Is 99% (3.8σ) good enough? 99.99967% Good – At 6σ
Source: Adapted from GE

15. © Operational Excellence Consulting
TRANSLATING THE VOICE OF THE CUSTOMER
15
The CTQ is the link between the VOC and the business process
that the team will impact through the project
Nebulous, broad Measurable, specific Measurable, measured
EXTERNALLY DEFINED EXTERNALLY DEFINED INTERNALLY DEFINED
“I hate calling the Help Desk” Calls should be resolved
faster than five minutes
Call cycle time to satisfactory
resolution (in minutes)
TRANSLATION: VOC Y
CTQ
§ Customer-defined
§ Measurable
§ Translatable into a business specification
Critical-to-Quality (CTQ):

16. © Operational Excellence Consulting
BASIC EQUATION OF A PROCESS
16
(f) = Process
INPUT OUTPUT
THE OUTPUT IS A FUNCTION OF THE INPUT:
Y = f(X)
X’s
Independent
Variables
Causes
Y’s
Dependent
Variables
Effects
CONTROL the X’s, monitor the Y’s

17. ACTION!
© Operational Excellence Consulting
1. Objective: Define the critical aspects of a product or service that directly
impact customer satisfaction.
2. Instructions:
● In groups, select a product or service your organization offers.
● Identify the most critical aspects of the product or service that directly
affect customer satisfaction.
● Discuss and list down how these aspects can be measured or quantified.
● Brainstorm ways to ensure that these critical aspects are aligned with
customer needs and expectations.
3. Discussion Points:
● How will you ensure that the CTQs are measurable and align with
customer expectations?
● What challenges do you foresee in defining and measuring CTQs?
4. Presentation: Each group presents their selected product or service, the
critical aspects identified, and their proposed approach to ensuring these
aspects meet customer expectations.
ACTIVITY: CRITICAL TO QUALITY (CTQ)
17
Time allowed:
15 mins

18. © Operational Excellence Consulting 18
SIX SIGMA DMAIC APPROACH
Six Sigma
DMAIC
Roadmap
Define the problem
or opportunity.
Measure the current
performance and
capability.
Analyze to identify
root causes.
Improve by
implementing
potential solutions.
Control by standardizing
solution and monitoring
performance.

19. © Operational Excellence Consulting
SIX SIGMA DMAIC PHASES: DESCRIPTIONS AND DELIVERABLES
19
Phases DEFINE MEASURE ANALYZE IMPROVE CONTROL
Description Define the problem or
opportunity.
Measure the current
performance and
capability.
Analyze to identify root
causes.
Improve by implementing
potential solutions.
Control by standardizing
solution and monitoring
performance.
Deliverables 1. Define business case
2. Define problem
statement
3. Establish baseline
project metrics
4. Define objective
statement and scope
5. Form project team
6. Identify financial
impact
7. Complete project
charter
8. Approved project
charter
1. Map the process
2. Collect process data
3. Verify data integrity
4. Document process
behavior
5. Baseline process
capability (Sigma
level or DPMO)
6. Quick wins
7. List of potential X’s
1. Cause and effect
analysis
2. FMEA
3. Graphical analysis
4. Statistical analysis
1. Generate solutions
2. Evaluate solutions
3. Pilot and implement
solutions
4. Statement of Y = f(X)
1. Control methods
2. Control plan
3. Clear indication of
improved primary
metric
4. Project transition
action plan
5. Project approval
6. Financial validation
7. Lessons learned

20. © Operational Excellence Consulting
“
Six Sigma is the most
important initiative GE
has ever undertaken. It is
part of the genetic code
of our future leadership.
JACK WELCH
20
Former CEO of G.E.

21. © Operational Excellence Consulting
SIX SIGMA PROJECT ORGANIZATION
21
Deployment Leader
Leadership Team
Process Owner
Champion
(Political Leader) Master Black Belt
(Technical Leader)
Green Belt
Black Belt

22. © Operational Excellence Consulting
ROLE OF LEADERSHIP TEAM
22
Define strategic goals
and measures
Create Six Sigma vision
Establish business
targets
Establish rewards and
recognition
Promote Six Sigma
methodology and tools
Allocate resources -
team members and
budget

23. © Operational Excellence Consulting
STRATEGIC STAFFING: MATCHING TALENT TO TASKS
23
Complexity
/
Mystery
Time
Required
/
Skill
Level
Green
Belt
Black
Belt

24. © Operational Excellence Consulting
DEPLOYMENT APPROACH
24
BLACK BELT PROJECTS
● Broad Scope
○ Cross-Geography
○ Cross-Organization
○ Impact large number of
people
● 9-12 Month Duration
● Benefits > $200K
GREEN BELT PROJECTS
● Specific Scope
○ Single Process or
Geography
○ Drives Six Sigma into the
DNA of the Organization
● 4-6 Month Duration
● Benefits > $50K
GREEN BELT PROJECTS
Specific Scope
Faster Results
Smaller Benefits
BLACK BELT PROJECTS
Broader Scope
Slower Results
Larger Benefits
Six Sigma 2-Pronged Approach
4-6 Months 9-12 Months

25. © Operational Excellence Consulting
UNVEILING OPPORTUNITIES: WHERE SIX SIGMA PROJECTS BEGIN
25
External Sources Internal Sources
Voice of Customer
§ What are we falling short of meeting
customer needs?
§ What are the new needs of customers?
Voice of Market
§ What are market trends, and are we ready
to adapt?
Voice of Competitors
§ What are we behind our competitors?
Voice of Process
§ Where are the defects, repairs, reworks?
§ What are the major delays?
§ What are the major wastes?
Voice of Employee
§ What concerns or ideas have employees or
managers raised?
§ What are we behind our competitors?

26. © Operational Excellence Consulting
● The Payoff Matrix helps to
visualize the trade-offs between
the benefits and costs of a Six
Sigma project.
● By analyzing the matrix, project
teams can determine the optimal
balance between achieving
benefits and managing costs.
THE SIX SIGMA PAYOFF MATRIX:
BALANCING BENEFITS AND COSTS
26
High
Benefit
Low
Cost
High
Cost
Low
Benefit
BENEFIT:
Defects
Satisfaction
Cost
Timeliness
COST: Resources
Financial, People, Time
Least
Attractive
Most
Attractive

27. © Operational Excellence Consulting
MAXIMIZING SIX SIGMA GAINS: HARVESTING THE FRUITS OF
SUCCESS
27
Ground Fruit
§ Logic and intuition
Low Hanging Fruit
§ Seven basic tools
Bulk of Fruit
§ Process characterization
and optimization
Sweet Fruit
§ Design for repeatability
§ Process enhancement

28. ACTION!
© Operational Excellence Consulting
1. In groups, discuss and identify potential projects for improvement within
your work area or organization.
2. Use the following criteria to evaluate and select the most suitable project:
a) Impact: Does the project have the potential to significantly improve a key
metric or address a critical issue?
b) Feasibility: Is the project realistic in terms of available resources, time,
and scope?
c) Alignment: Does the project align with organizational goals and strategic
objectives?
d) Measurability: Can the success of the project be measured quantitatively?
e) Sustainability: Will the improvements made be sustainable over the long
term?
3. Select one project from your list based on the criteria discussed.
4. Present your selected project and the reasons for choosing it to the class.
ACTIVITY: PROJECT SELECTION CRITERIA
28
Time allowed:
20 mins

29. © Operational Excellence Consulting
DRIVING SIX SIGMA SUCCESS: THE ESSENTIAL FACTORS
29
Goal-driven
Reengineering
Set challenging yet
achievable goals that
necessitate
reengineering
processes to meet
them, driving
continuous
improvement.
Innovation
Encouragement
Foster a culture that
encourages and
rewards innovative
ideas for process
improvement, driving
creativity.
Leadership
Commitment
Leadership must visibly
support and drive Six
Sigma initiatives,
actively participating in
the process.

30. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
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