Six Sigma Define Phase

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Questions and Answers

What was the total benefit produced by the company in 1999?

Less than $1 million

Over $1 billion

Around $700 million

More than $2 billion (correct)

How many trained Black Belts were there at the end of the year 2000?

Less than 500

More than 2,000

Around 1,100 (correct)

Over 3,400

What is the term for waste in Japanese?

Lean

Sigma

Muda (correct)

Kaizen

What is the definition of waste?

Anything other than the minimum amount of time, material, people, space, energy, etc needed to add value to the product or service Signup and view all the answers

What is the potential pretax benefit from active projects in 2000?

Around $700 million Signup and view all the answers

What is the main cause of employee performance issues in today's organizations?

A lack of regard to waste Signup and view all the answers

What is the primary focus of the Certified Lean Six Sigma course?

Process centric Signup and view all the answers

What is the ultimate goal of a Lean Organization?

To provide perfect value to the customer Signup and view all the answers

What is the definition of Six Sigma?

A data-driven approach to eliminate defects Signup and view all the answers

What is the core principle of the Lean Enterprise?

To organize processes to the optimum level Signup and view all the answers

What is the goal of Lean?

To create value for customers with fewer resources Signup and view all the answers

What is the target defect rate in Six Sigma?

3.4 defects per million Signup and view all the answers

What is the primary objective of process performance improvement?

To improve business performance Signup and view all the answers

What is the definition of Lean Six Sigma?

A combination of Lean and Six Sigma methodologies Signup and view all the answers

What is the primary focus of Six Sigma?

Voice of the customer Signup and view all the answers

What is the primary strength of Lean?

Efficiency Signup and view all the answers

What is the expected cumulative EBIT benefit from Six Sigma implementation by 2003, according to Dow's 1999 Annual Report?

$1.5 billion Signup and view all the answers

What is the result of implementing Lean Six Sigma in an organization, according to Honeywell's 1999 Annual Report?

Delivering higher quality solutions that are more competitively priced, delivered on time and invoiced correctly Signup and view all the answers

What is the primary difference between Lean and Six Sigma?

Lean focuses on efficiency, while Six Sigma focuses on effectiveness Signup and view all the answers

What is the cumulative cost savings achieved by Honeywell in 1999 through Six Sigma implementation?

$600 million Signup and view all the answers

What is the primary goal of Lean Six Sigma implementation?

To elevate operational performance and achieve near perfection levels Signup and view all the answers

What is the characteristic of Six Sigma decision making?

Data-driven and fact-based Signup and view all the answers

Study Notes

Six Sigma and Lean

By 1999, General Electric (GE) had generated over $2 billion in benefits from its Six Sigma implementation. This impressive result was achieved through the implementation of various quality improvement initiatives, including the Six Sigma methodology. Six Sigma is a data-driven approach that aims to reduce defects and variations in business processes, resulting in increased efficiency, productivity, and customer satisfaction.
As of 2000, DuPont had around 1,100 trained Black Belts and over 3,400 active projects, with a potential pretax benefit of $700 million. This significant investment in Six Sigma training and implementation demonstrated DuPont's commitment to improving its business processes and reducing costs.

Lean Principles

Waste is defined as anything other than the minimum amount of time, material, people, space, energy, etc. needed to add value to a product or service. In the context of Lean manufacturing, waste refers to any activity that does not add value to the end product or service. Examples of waste include excess inventory, unnecessary processes, and inefficient use of resources.
The Japanese word for waste is "muda". In Lean, the focus is on eliminating waste to optimize processes and improve efficiency. This involves identifying and eliminating non-value-added activities, reducing variability, and improving flow through the value stream.
Lean Enterprise aims to organize processes to the optimum level through the continual focus on identifying and eliminating waste. This is achieved by implementing various Lean tools and techniques, such as value stream mapping, root cause analysis, and kaizen events, which help to eliminate waste and improve process efficiency.

Lean Six Sigma

Lean Six Sigma combines the strengths of Lean and Six Sigma, focusing on creating value for customers with fewer resources. By combining the data-driven approach of Six Sigma with the principles of Lean, companies can achieve significant improvements in efficiency, quality, and customer satisfaction.
Lean's principles-based operating system guides the elimination of waste, creation of process flow, and resource optimization. This involves establishing a culture of continuous improvement, empowering employees to identify and solve problems, and implementing processes and systems that support these efforts.
Six Sigma's data-driven approach focuses on eliminating defects and reducing variation. This involves collecting and analyzing data to identify opportunities for improvement, developing solutions, and implementing changes to achieve the desired outcomes.

Company Results

Honeywell achieved $600 million in Six Sigma cost savings in 1999 and saw improvements in customer satisfaction and growth. This significant result was achieved through the implementation of various Six Sigma projects aimed at improving efficiency, reducing costs, and increasing customer satisfaction.
Dow expected Six Sigma to deliver $1.5 billion in EBIT cumulatively by 2003 from revenue growth, cost reductions, and asset utilization. This ambitious goal was expected to be achieved through the implementation of Six Sigma projects across various business units, resulting in significant improvements in efficiency, quality, and customer satisfaction.
General Electric (GE) had generated over $2 billion in benefits from its Six Sigma implementation by 1999. This impressive result was achieved through the implementation of various Six Sigma projects aimed at improving efficiency, reducing costs, and increasing customer satisfaction across various business units.

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Description

Learn to improve process performance and business outcomes using Six Sigma, Lean, and Process Management methodologies. This course covers tools and techniques for process-centric improvement.