Transcript Six Sigma

Six Sigma
By: Jensen Agcaoili
What is Six Sigma?
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Six Sigma Definitions:
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A management driven, scientific methodology for
product and process improvement which creates
breakthroughs in financial performance and Customer
satisfaction. Source: Motorola
A methodology that provides businesses with the tools
to improve the capability of their business processes.
This increase in performance and decrease in process
variation lead to defect reduction and improvement in
profits, employee morale and quality of product.
Source: ASQ
History
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1970’s - Motorola found itself unable to
compete in the consumer products with
Japanese companies.
1980’s – Bill Smith invented Six Sigma concept
and was recognized as “The father of Six
Sigma”
1987 – Motorola founded Six Sigma and
received first Malcolm Baldrige National
Quality Award in 1988.
Six Sigma Curve
Savings by Company
Company
Savings ($billions)
Motorola
(1986-2001)
GE
(1996-1991)
Honeywell
(1999-2000)
16
Ford
(2000-2002)
1
4.4
1.8
Strengths & Goals
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Simple and effective management structure
Reduces variation in system process
Ability to identify, analyze, and monitor errors
Six Sigma Goal
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Near elimination of defects from any process
Numerical goal of 3.4 defects/million opportunities
Six Sigma Implementation
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CEO
- The driving force
Champion
- Responsible for the success of the project, providing
resources and breaking down organizational barriers
Black Belt
- Project leader
Green Belts
- Project team members
Master Black Belts
- Train and mentor new Black Belts in the organization
Not only in manufacturing
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Six Sigma has been successfully applied to
many processes outside of manufacturing.
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Transactional processes such as
insurance, health care, software
coding, billing, and customer support
Integrating Six Sigma With Total Quality
Management: A Case Example for Measuring
Medication Errors
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Article provided by Journal of Healthcare
Management by Revere and Black.
(2003)
Background
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The institute of Medicine estimated between
44,000 and 98,000 deaths occur each year
from medical errors (2002)
Medical errors cost between $17 to $29 billion
GE Medical Systems reported over 31% of
post-heart-attack patients receive improper
medications and 30% percent of
mammograms are incorrect (2001)
Sis Sigma in Healthcare
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Reduce medication error
Reduce inventory of surgical equipment
Improve patient satisfaction
Reduce length of stay
Improve staff scheduling
Reduce patient wait times
Many more..
Case Example: Medication Error
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Three categories of errors and
opportunities
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Prescribing
Dispensing
Administering
How to determine Sigma level
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Use Medication Error Ratio to determine
sigma level
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Medication Error Ratio =
Number of Medication Errors
Number of Opportunities for Error
Solution:
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Medication Error Ratio = Number of Medication Errors
Number of Opportunities for Error
Medication Error Ratio = 79/180,000 = 0.000439
Convert the number of medication errors per million opportunities
0.000439 x 1,000,000 = 439
Six sigma level = 4.7
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Any Questions?