what is six sigma - global health care, llc.ppt

Six Sigma Basics Benjamin Williams Former Editor-in-Chief, Harvard Health Policy Review; Former Administrative Resident & Six Sigma Green Belt, NewYork-Presbyterian Hospital History & Early Pioneers “Six Sigma” coined at in the 1980s Adopted by Allied Signal (Honeywell) with great success Later adopted by Jack Welch (GE) and further developed into a true management system What is Six Sigma? A philosophy that underlies efforts to improve business performance and customer satisfaction Using facts and data to eliminate waste (muda) and variation Eliminating activities that don’t add value! What is Six Sigma? The term “Sigma” is a measurement of how far a given process deviates from perfection – a measure of number of “defects”. “Six Sigma” implies near zero defects. “A quality improvement methodology that applies statistics to measure and reduce variation in processes.” A management system that is “comprehensive and flexible for achieving, sustaining, and maximizing business success.” Conceptual Framework Critical to Quality (CTQ): Attributes most important to the customer Defect: Failing to deliver what the customer wants Process Capability: What your process can deliver Stable Operations: Ensuring consistent, predictable processes to improve what the customer perceives Improvement Methodology: DMAIC “Backbone” Improvement Methodology: Key Players Management System: Themes Customer Focus Data- and Fact-Driven Management Process is Key Proactive Management “Boundaryless” Collaboration Drive for Perfection; Tolerate Failure Scalable Implementation Problem Solving Strategic Improvement Full-Scale Business Transformation How is Six Sigma Different? Industry $uccess! In a study of Motorola, Allied Signal, GE, and Honeywell -- companies with mature Six Sigma deployments and associated culture changes -- savings as a percentage of revenue were observed to vary between 1.2% and 4.5%. Charles Waxer (2003), “Six Sigma Costs And Savings”