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The Six Sigma Cheat Sheet, Cheat Sheet of Business Management and Analysis

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The Six Sigma Cheat Sheet
To apply Six Sigma to your business and produce the best results, you need to understand what
Six Sigma is, the principles of Six Sigma, and the DMAIC problem-solving method. The correct
tools and use of the Six Sigma scale and methods will keep your data dependable and reusable.
What Is Six Sigma?
Generally, Six Sigma is a problem-solving methodology that helps enhance business and
organizational operations. It can also be defined in a number of other ways:
A quality level of 3.4 defects per million opportunities
A rate of improvement of 70 percent or better
A data-driven, problem-solving methodology of Define-Measure-
Analyze-Improve-Control
An initiative taken on by organizations to create bottom-line
breakthrough change
Six Sigma Principles
Six Sigma is based on a handful of basic principles, and these principles create the entire Six
Sigma arrangement. Here are Six Sigma’s fundamental principles:
Y=f(X) + ε: All outcomes and results (the Y) are determined by inputs
(the X’s) with some degree of uncertainty (å).
To change or improve results (the Y), you have to focus on the inputs
(the X’s), modify them, and control them.
Variation is everywhere, and it degrades consistent, good performance.
Your job is to find it and minimize it!
Valid measurements and data are required foundations for consistent,
breakthrough improvement.
Only a critical few inputs have significant effect on the output.
Concentrate on the critical few.
Every decision and conclusion has risk (ε), which must be weighed
against the context of the decision.
The Six Sigma Scale
The Six Sigma scale shows how well a vital feature performs compared to its requirements. The
higher the sigma score, the more efficient the feature is. This table shows the universal Six
Sigma scale:
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The Six Sigma Cheat Sheet To apply Six Sigma to your business and produce the best results, you need to understand what Six Sigma is, the principles of Six Sigma, and the DMAIC problem-solving method. The correct tools and use of the Six Sigma scale and methods will keep your data dependable and reusable. What Is Six Sigma? Generally, Six Sigma is a problem-solving methodology that helps enhance business and organizational operations. It can also be defined in a number of other ways:  A quality level of 3.4 defects per million opportunities  A rate of improvement of 70 percent or better  A data-driven, problem-solving methodology of Define-Measure- Analyze-Improve-Control  An initiative taken on by organizations to create bottom-line breakthrough change Six Sigma Principles Six Sigma is based on a handful of basic principles, and these principles create the entire Six Sigma arrangement. Here are Six Sigma’s fundamental principles:  Y=f(X) + ε: All outcomes and results (the Y) are determined by inputs (the X’s) with some degree of uncertainty (å).  To change or improve results (the Y), you have to focus on the inputs (the X’s), modify them, and control them.  Variation is everywhere, and it degrades consistent, good performance. Your job is to find it and minimize it!  Valid measurements and data are required foundations for consistent, breakthrough improvement.  Only a critical few inputs have significant effect on the output. Concentrate on the critical few.  Every decision and conclusion has risk (ε), which must be weighed against the context of the decision. The Six Sigma Scale The Six Sigma scale shows how well a vital feature performs compared to its requirements. The higher the sigma score, the more efficient the feature is. This table shows the universal Six Sigma scale:

Sigma Level (Z) Defects per Million Opportunities (DPMO) Percent Defects (%) Percent Success (Yield %) Capability (CP) 1 691,462 69 31 0. 2 308,538 31 69 0. 3 66,807 6.7 93.3 1. 4 6,210 0.62 99.38 1. 5 233 0.023 99.977 1. 6 3.4 0.00034 99.99966 2. The DMAIC Method of Six Sigma The DMAIC (Define-Measure-Analyze-Improve-Control) project method is a formalized problem-solving process of Six Sigma. It’s made-up of five steps to apply to any procedure of a business to improve effectiveness.

  1. Define: Set the context and objectives for your improvement project.
  2. Measure: Determine the baseline performance and capability of the process or system you’re improving.
  3. Analyze: Use data and tools to understand the cause-and-effect relationships in your process or system.
  4. Improve: Develop the modifications that lead to a validated improvement in your process or system.
  5. Control: Establish plans and procedures to ensure that your improvements are sustained. The Tools-Methods Landscape of Six Sigma

 Brainstorm and verify possible solutions – in many cases, those closest to the process (those working with it every day – make sure they are part of the team) know what needs to be done – oftentimes a Six Sigma project simply brings the necessary focus to implement long-overdue fixes.  Implement the fixes.  Verify that the fixes have improved the process.  Implement controls, audits, etc., where necessary to ensure the fixes are sustained over the long run. That’s it. The remaining 20% of the problems might need more advanced methods inside the DMAIC toolkit. Understanding those tools will place you in the top 1% of all problem solvers.