Six%20Sigma

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Six Sigma

• By Jensen Agcaoili

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What is Six Sigma?

• Six Sigma Definitions
• 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

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History

• 1970s - Motorola found itself unable to compete
  in the consumer products with Japanese companies.
  
• 1980s 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.

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Six Sigma Curve
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Savings by Company
Company Savings (billions)
Motorola (1986-2001) 16
GE (1996-1991) 4.4
Honeywell (1999-2000) 1.8
Ford (2000-2002) 1
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Strengths Goals

• Simple and effective management structure
• Reduces variation in system process
• Ability to identify, analyze, and monitor errors
• Six Sigma Goal
• Near elimination of defects from any process
• Numerical goal of 3.4 defects/million
  opportunities

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Six Sigma Implementation

• 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

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Not only in manufacturing

• Six Sigma has been successfully applied to many
  processes outside of manufacturing.
• Transactional processes such as insurance, health
  care, software coding, billing, and customer
  support

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Integrating Six Sigma With Total Quality
Management A Case Example for Measuring
Medication Errors

• Article provided by Journal of Healthcare
  Management by Revere and Black. (2003)

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Background

• 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)

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Sis Sigma in Healthcare

• Reduce medication error
• Reduce inventory of surgical equipment
• Improve patient satisfaction
• Reduce length of stay
• Improve staff scheduling
• Reduce patient wait times
• Many more..

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Case Example Medication Error

• Three categories of errors and opportunities
• Prescribing
• Dispensing
• Administering

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How to determine Sigma level

• Use Medication Error Ratio to determine sigma
  level
• Medication Error Ratio
• Number of Medication Errors
• Number of Opportunities for Error

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Solution

• 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?