Introduction to Six Sigma
What is Six Sigma?
3.4 ppm defective Philosophy that changes the way of thinking within a
company
Business strategy that brings a company to competitive edge. Business Improvement Methodology.
What does Six Sigma mean practically?
Defect reduction Yield improvement
Improved customer satisfaction
Higher net income Continual improvement
Six Sigma Evolution
Carl Frederick Gauss ( 1777-1855) introduced the concept of the
normal curve
As a measurement standard in 1920s, Walter Shewhart showed that
three sigma, from the mean, is the point where a process requires correction.
In the late 1970s, Dr. Mikel Harry, a senior staff engineer at
Motorolas Government Electronics Group (GEG), experimented with problem solving through statistical analysis,. Using this approach, GEGs product were being designed and produced at a faster rate and at a low cost. sigma throughout Motorola.
Subsequently, Dr. Harry began to formulate a method for applying six
History of Six Sigma: Motorola
In 1987 when Bob Galvin was the Chairman , Six Sigma was started as
a methodology in Motorola.
Bill smith , an engineer, and Mikel Harry together devised a 6 step
methodology with the focus on defect reduction and improvement in yield through statistics
The term Six Sigma was coined by Bill Smith, who is now called
Father of Six Sigma
Terms such as Black Belt and Green belt were coined by Mikel Harry in
relation to martial arts.
The company saved $ 16 billion in 10 years.
History of Six Sigma
What is a process?
A process can be defined as any activity or
group of activities that takes an input or inputs, adds value, and provides an output to an internal or external customer.
Six Sigma can be used to address problems
within manufacturing processes or within any business process or system.
Performing at sigma level of six means that difference between mean and specific limit is six times the standard deviation.
The Normal Distribution
Generated as a result of a process experiencing
random variation Characterized by mean and standard deviation
Curves with same mean & different standard deviation
Curves with same deviation & different mean
Differentiating Sigma (s) from Sigma level (Z)
Objective of Six Sigma
Sigma Level
2 3 4 5 6
PPM (Defective)
308,537 66,807 6,210 233 3.4
99.99966% good- sigma level of 6
Characteristics of Six Sigma
Customer-centered
Process-focused
Data Driven Big Performance Gains Structured improvement deployment Validation through key business results,
( financial gains in most cases)
Six Sigma : A Definition
A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, and reinventing business processes.
Six Sigma encompasses a broad array of business best practices and skills that are essential ingredients for success and growth.
It works just as well in leading an entire organization as it does a department - its scalable. Potential gains are equally significant in service organizations and non-manufacturing activities. It is as much about people excellence as it is about technical excellence.
What is Six Sigma Performance?
99% Good (3.8s) 99.99966% Good (6s)
5,000 incorrect surgical
operations per week Two short or long landings at
1.7 incorrect operations per
week One short or long landing
most major airports each day
200,000 wrong drug prescriptions each year
every five years
68 wrong prescriptions per year
Six Sigma :Requirements for Culture Change
Top-down commitment and involvement Actively be involved in project progress and review Measurement system to track progress Evaluate the ability to access process change Common well-understood set of metrics tied to project and organizational strategic plan Tough goal setting (reach out!) Benchmark best in class Provide the required education Spread the Success Story ; Leverage
Six Sigma : The Projects
Projects are linked to the Strategic Plan Projects prioritized based on value to the business, resources required, and timing Yield improvement (RTY) Waste reduction Capacity-productivity improvement Cycle time reduction Projects selected with leadership buy-in Projects are formally tracked Team Leader and Management are held accountable
Six Sigma Improvement Methodology D-M-A-I-C
Define
Control
ACT CHECK PLAN DO
Measure
Improve
Analyze
DMAIC Steps 1. Define
1. Define
2. Measure 3. Analyze 4. Improve 5. Control
Identify projects that are measurable Define projects including the demands of the customer and the content of the internal process. Develop team charter Define process map
DMAIC Steps 2. Measure
1. Define
5.0 Control
2. Measure
3. Analyze
4. Improve
5. Control
Define performance standards Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. Identify all potential causes for such problems.
DMAIC Steps 3. Analyse
1. Define 2. Measure
3. Analyse
4. Improve
5. Control
Establish process capability Define performance objectives Identify variation sources Screen potential causes Discover variable relationships among causes and effects
3.0 Analyze
Hypothesis Testing Regression Analysis Box Plot t test ANOVA Correlation Regression
Process Mapping Failure Mode & Effect Analysis Design of Experiments Control charts Quality Function Deployment (QFD)
DMAIC Steps 4. Improve
1. Define 2. Measure 3. Analyse
4. Improve
5. Control
Establish operating tolerances Pursue a method to resolve and ultimately eliminate problems. It is also a phase to explore the solution how to change, fix and modify the process. Carryout a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in achieving the targeted values.
Better forecasting Improved scheduling Advanced procedures or equipment
DMAIC Steps 5. Control
1. Define 2. Measure 3. Analyse 4. Improve
5. Control
Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.
Control Charts Assigning clear process ownership and documenting
Flowchart of DMAIC process
Key Terms
Ys Key process output variable Thought of in terms of performance/defect measures Xs Key process input variable Are a list of variables that influence the response(s) or Ys Y is a function of the Xs or Y = f(X1, X2, )
The goal of six sigma is to understand the Xs that control the Ys.
Y = f(X1, X2, )
Suppliers
Inputs
x x
Outputs
Customers
Process
Xs, Inputs Process variables Inputs to the process Essential actions to achieve strategic goals Key influences on customer satisfaction Ys, Outputs Customer requirements Yield, Waste, Rate On Time Delivery Economic Profit Strategic goal Customer satisfaction
Y = f(X1, X2, )
Suppliers
Inputs
x x
Outputs
Customers
Process
Y Dependent Output Effect Symptom Monitor Response
X1 . . . XN Independent Input-Process Cause Problem Control Factor
Sigma level calculation
DPMO = DPU * 1,000,000 / OFE
DPMO Defects per million opportunities DPU defects per unit = No. of defects / No. of pieces inspected OFE Opportunities for error per unit = No. of characteristics inspected per unit
Sigma level = Value of Zst from the Sigma level and DPMO table
