The statistical representation of Six Sigma describes quantitatively how a proce ss is performing.

To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything ou tside of customer specifications. A Six Sigma opportunity is then the total quan tity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation r eduction through the application of Six Sigma improvement projects. This is acco mplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. Th e Six Sigma DMAIC process (define, measure, analyze, improve, control) is an imp rovement system for existing processes falling below specification and looking f or incremental improvement. The Six Sigma DMADV process (define, measure, analyz e, design, verify) is an improvement system used to develop new processes or pro ducts at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are ex ecuted by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by S ix Sigma Master Black Belts. According to the Six Sigma Academy, Black Belts save companies approximately $23 0,000 per project and can complete four to 6 projects per year. (Given that the average Black Belt salary is $80,000 in the United States, that is a fantastic r eturn on investment.) General Electric, one of the most successful companies imp lementing Six Sigma, has estimated benefits on the order of $10 billion during t he first five years of implementation. GE first began Six Sigma in 1995 after Mo torola and Allied Signal blazed the Six Sigma trail. Since then, thousands of co mpanies around the world have discovered the far reaching benefits of Six Sigma. Six Sigma is a process improvement set of tools and strategies, originally devel oped by Motorola in 1986.[1][2] Six Sigma became well known after Jack Welch mad e it a central focus of his business strategy at General Electric in 1995,[3] an d today it is used in different sectors of industry.[4] Six Sigma seeks to improve the quality of process outputs by identifying and rem oving the causes of defects (errors) and minimizing variability in manufacturing and business processes.[5] It uses a set of quality management methods, includi ng statistical methods, and creates a special infrastructure of people within th e organization ("Champions","Black Belts", "Green Belts","Orange Belts", etc...) who are experts in these very complex methods.[5] Each Six Sigma project carrie d out within an organization follows a defined sequence of steps and has quantif ied financial targets (cost reduction and/or profit increase).[5] The term Six Sigma originated from terminology associated with manufacturing, sp ecifically terms associated with statistical modeling of manufacturing processes . The maturity of a manufacturing process can be described by a sigma rating ind icating its yield or the percentage of defect-free products it creates. A six si gma process is one in which 99.9999966% of the products manufactured are statist ically expected to be free of defects (3.4 defects per million), although, as di scussed below, this defect level corresponds to only a 4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goa l became a byword for the management and engineering practices used to achieve i t. Historical overview Six Sigma originated as a set of practices designed to improve manufacturing pro cesses and eliminate defects, but its application was subsequently extended to o ther types of business processes as well.[6] In Six Sigma, a defect is defined a s any process output that does not meet customer specifications, or that could l ead to creating an output that does not meet customer specifications.[5] CEO Bob Galvin was always focused on improving the quality of Motorola products. Galvin found an ally in John F. Mitchell,[7][8][9] a young engineer on the rise to becoming Chief Engineer. Mitchell was seen as a demanding,[10][11] hands-on manager who cared for his co-workers[12][13] and insisted on team effort.[14] Mi

tchell believed in building quality into the engineering and manufacturing proce sses as a way of lowering costs and improving yield.[10] He also favored competi tion among product lines and distributors as a business discipline to both reduc e costs and to promote quality improvement.[12]Mitchells early successes with qua lity control appeared with the introduction of a new digital transistorized Page r, and the formalization of improvised Mitchell Quality Tests.[15] Mitchell also used Shainin Methods and other tests[16] in his operations.[17] John F. Mitchel l set the bar high for his engineers knowing they would respond.[18] By the earl y 1970s, as John F. Mitchell was on his ascendancy to General Manager, Communica tions Division in 1972, Motorola had established itself as second largest produc er of electronic equipment behind IBM,[19] and as the world leader in wireless c ommunication products, and had been battling Intel and Texas Instruments for the number one slot in Semiconductor sales. Motorola was also the largest supplier of certain parts and products to Japan s National Telegraph & Telephone Company, but at the same time, the Japanese were beginning to erode Motorola s lead in t he Pager market.[20] The rapid successes and expansion of the Motorola Pager bus iness created by John F. Mitchell, as cited above, led to competitive deficienci es in quality controls, notwithstanding the "Mitchell Testing." In the late 1970 s, as John F. Mitchell was on the ascendancy to being named President & COO in 1 980, he was joined by other senior managers, notably, CEO Bob Galvin, Jack Germa in,[19][21] and Art Sundry,[14][15][22][23] who worked in John F. Mitchell s Pag er organization to set the quality bar 10x higher. Sundry was reputed to have sh outed "Our Quality Stinks"[20] at an organizational meeting attended by Galvin, John F. Mitchell and other Senior Executives; and Sundry got to keep his job.[20 ] But most importantly, the breakthroughs occurred when it was recognized that i ntensified focus and improved measurements, data collection, and more discipline d statistical approaches[23][24][25] John F. Mitchell s untiring efforts,[10][26 ] and support from Motorola engineers[14] and senior management, prevailed and b rought Japanese quality control methods back to the USA,[27] and resulted in a s ignificant and permanent change in culture at Motorola. "We ought to be better t han we are," said Germain, director of Quality Improvement.[20] The culmination of Motorola quality engineering efforts occurred in 1986, with the help of an ou tside quality control consultant who joined Motorola, Bill Smith[28][29][30][31] when the Motorola University and Six-Sigma Institute[27] was founded. Two years later, in 1988, Motorola received the coveted Malcolm Baldrige National Quality Award[32] which is given by the United States Congress. Later, the Six Sigma pr ocesses subsequently were adopted at the General Electric Corporation. Jack Welc h said: "Six Sigma changed the DNA of GE."[23][33] The Six Sigma process require s 99.99967% error free processes and products, (or 3.4 parts per million defects or less).[20] Without the Six Sigma process controls, it may not have been poss ible for John F. Mitchell to launch the Iridium Constellation, one of the most c omplex projects undertaken by a private company, which involved some 25,000 elec tronic components,[34] and took 11 years to develop and implement at a cost of $ 5 Billion.[34] Six Sigma processes resulted in $1617 Billion in savings to Motoro la as of 2006.[23][35] A search of Safari Books Online reveals 1062 books writte n about Six Sigma.[23] with 532 published since 2009.[4] Six Sigma Doctrine Like its predecessors, Six Sigma doctrine asserts that: Continuous efforts to achieve stable and predictable process results (i.e., redu ce process variation) are of vital importance to business success. Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled. Achieving sustained quality improvement requires commitment from the entire orga nization, particularly from top-level management. Features that set Six Sigma apart from previous quality improvement initiatives include: A clear focus on achieving measurable and quantifiable financial returns from an y Six Sigma project.[5] An increased emphasis on strong and passionate management leadership and support .[5]

 A special infrastructure of "Champions", "Master Black Belts", "Black Belts", "G reen Belts", etc. to lead and implement the Six Sigma approach.[5] A clear commitment to making decisions on the basis of verifiable data and stati stical methods, rather than assumptions and guesswork.[5] The term "Six Sigma" comes from a field of statistics known as process capabilit y studies. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification. Processes that op erate with "six sigma quality" over the short term are assumed to produce long-t erm defect levels below 3.4 defects per million opportunities (DPMO).[36][37] Si x Sigma s implicit goal is to improve all processes to that level of quality or better. Six Sigma is a registered service mark and trademark of Motorola Inc.[38] As of 2006 Motorola reported over US$17 billion in savings[39] from Six Sigma. Other e arly adopters of Six Sigma who achieved well-publicized success include Honeywel l (previously known as AlliedSignal) and General Electric, where Jack Welch intr oduced the method.[40] By the late 1990s, about two-thirds of the Fortune 500 or ganizations had begun Six Sigma initiatives with the aim of reducing costs and i mproving quality.[41] In recent years, some practitioners have combined Six Sigma ideas with lean manu facturing to create a methodology named Lean Six Sigma.[42] The Lean Six Sigma m ethodology views lean manufacturing, which addresses process flow and waste issu es, and Six Sigma, with its focus on variation and design, as complementary disc iplines aimed at promoting "business and operational excellence".[42] Companies such as IBM and Sandia National Laboratories use Lean Six Sigma to focus transfo rmation efforts not just on efficiency but also on growth. It serves as a founda tion for innovation throughout the organization, from manufacturing and software development to sales and service delivery functions.. Methods Six Sigma projects follow two project methodologies inspired by Deming s Plan-Do -Check-Act Cycle. These methodologies, composed of five phases each, bear the ac ronyms DMAIC and DMADV.[41] DMAIC is used for projects aimed at improving an existing business process.[41] DMAIC is pronounced as "duh-may-ick" (< d me k>). DMADV is used for projects aimed at creating new product or process designs.[41] DMADV is pronounced as "duh-mad-vee" (< d md vi>). DMAIC The DMAIC project methodology has five phases: Define the problem, the voice of the customer, and the project goals, specifical ly. Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships. Deter mine what the relationships are, and attempt to ensure that all factors have bee n considered. Seek out root cause of the defect under investigation. Improve or optimize the current process based upon data analysis using technique s such as design of experiments, poka yoke or mistake proofing, and standard wor k to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are c orrected before they result in defects. Implement control systems such as statis tical process control, production boards, visual workplaces, and continuously mo nitor the process. Some organizations add a Recognize step at the beginning, which is to recognize the right problem to work on, thus yielding an RDMAIC methodology.[43] DMADV or DFSS The DMADV project methodology, known as DFSS ("Design For Six Sigma"),[41] featu res five phases: Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), produc t capabilities, production process capability, and risks.

 Analyze to develop and design alternatives, create a high-level design and evalu ate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phas e may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s). Quality management tools and methods used in Six Sigma Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes man y established quality-management tools that are also used outside Six Sigma. The following table shows an overview of the main methods used. 5 Whys Analysis of variance ANOVA Gauge R&R Axiomatic design Business Process Mapping Cause & effects diagram (also known as fishbone or Ishikawa diagram) Check sheet Chi-squared test of independence and fits Control chart Correlation Cost-benefit analysis CTQ tree Design of experiments Failure mode and effects analysis (FMEA) General linear model Histograms Pareto analysis Pareto chart Pick chart Process capability Quality Function Deployment (QFD) Quantitative marketing research through use of Enterprise Feedback Management (E FM) systems Regression analysis Rolled throughput yield Root cause analysis Run charts Scatter diagram SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) Stratification Taguchi methods Taguchi Loss Function TRIZ Sigma level DPMO Percent defective Percentage yield 1 691,462 69% 31% 0.33 0.17 2 308,538 31% 69% 0.67 0.17 3 66,807 6.7% 93.3% 1.00 0.5 4 6,210 0.62% 99.38% 1.33 0.83 5 233 0.023% 99.977% 1.67 1.17 6 3.4 0.00034% 99.99966% 7 0.019 0.0000019% 99.9999981% Short-term Cpk Long-term Cpk

2.00 2.33

1.5 1.83

Standard Deviation and Variance Deviation just means how far from the normal Standard Deviation The Standard Deviation is a measure of how spread out numbers are. Its symbol is (the greek letter sigma) The formula is easy: it is the square root of the Variance. So now you ask, "Wha

t is the Variance?" Variance The Variance is defined as: The average of the squared differences from the Mean. To calculate the variance follow these steps: Work out the Mean (the simple average of the numbers) Then for each number: subtract the Mean and square the result (the squared diffe rence). Then work out the average of those squared differences. (Why Square?) Example You and your friends have just measured the heights of your dogs (in millimeters ): The heights (at the shoulders) are: 600mm, 470mm, 170mm, 430mm and 300mm. Find out the Mean, the Variance, and the Standard Deviation. Your first step is to find the Mean: Answer: Mean = 600 + 470 + 170 + 430 + 300 = 1970 = 394

5 5 so the mean (average) height is 394 mm. Let s plot this on the chart: Now, we calculate each dogs difference from the Mean: To calculate the Variance, take each difference, square it, and then average the result: So, the Variance is 21,704. And the Standard Deviation is just the square root of Variance, so: Standard Deviation: = 21,704 = 147.32... = 147 (to the nearest mm) And the good thing about the Standard Deviation is that it is useful. Now we can show which heights are within one Standard Deviation (147mm) of the Mean: So, using the Standard Deviation we have a "standard" way of knowing what is nor mal, and what is extra large or extra small. Rottweilers are tall dogs. And Dachshunds are a bit short ... but don t tell the m! Now try the Standard Deviation Calculator. But ... there is a small change with Sample Data Our example was for a Population (the 5 dogs were the only dogs we were interest ed in). But if the data is a Sample (a selection taken from a bigger Population), then t he calculation changes! When you have "N" data values that are: The Population: divide by N when calculating Variance (like we did) A Sample: divide by N-1 when calculating Variance All other calculations stay the same, including how we calculated the mean. Example: if our 5 dogs were just a sample of a bigger population of dogs, we wou ld divide by 4 instead of 5 like this: Sample Variance = 108,520 / 4 = 27,130 Sample Standard Deviation = 27,130 = 164 (to the nearest mm) Think of it as a "correction" when your data is only a sample. Formulas Here are the two formulas, explained at Standard Deviation Formulas if you want to know more:

The "Population Standard Deviation": The "Sample Standard Deviation": Looks complicated, but the important change is to divide by N-1 (instead of N) when calculating a Sample Variance. *Footnote: Why square the differences? If we just added up the differences from the mean ... the negatives would cancel the positives: 4 + 4 - 4 - 4 4 So that won t work. How about we use absolute values? |4| + |4| + |-4| + |-4| 4 4 = 0

That looks good, but what about this case: |7| + |1| + |-6| + |-2| 4 4 = 7 + 1 + 6 + 2 = 4

Oh No! It also gives a value of 4, Even though the differences are more spread o ut! So let us try squaring each difference (and taking the square root at the end): 4 4 42 + 42 + 42 + 42 4 72 + 12 + 62 + 22 4 = 90 = 4.74... = 64 = 4

That is nice! The Standard Deviation is bigger when the differences are more spr ead out ... just what we want! In fact this method is a similar idea to distance between points, just applied i n a different way. And it is easier to use algebra on squares and square roots than absolute values , which makes the standard deviation easy to use in other areas of mathematics. Standard deviation From Wikipedia, the free encyclopedia Jump to: navigation, search For other uses, see Standard Deviation (disambiguation). A plot of a normal distribution (or bell curve). Each band has a width of 1 stan dard deviation. See also: 68-95-99.7 rule Cumulative probability of a normal distribution with expected value 0 and standa rd deviation 1 In statistics and probability theory, standard deviation (represented by the sym

4 + 4 + 4 + 4

= 4

bol sigma, ) shows how much variation or "dispersion" exists from the average (me an, or expected value). A low standard deviation indicates that the data points tend to be very close to the mean; high standard deviation indicates that the da ta points are spread out over a large range of values. The standard deviation of a random variable, statistical population, data set, o r probability distribution is the square root of its variance. It is algebraical ly simpler though practically less robust than the average absolute deviation.[1 ][2] A useful property of standard deviation is that, unlike variance, it is exp ressed in the same units as the data. In addition to expressing the variability of a population, standard deviation is commonly used to measure confidence in statistical conclusions. For example, th e margin of error in polling data is determined by calculating the expected stan dard deviation in the results if the same poll were to be conducted multiple tim es. The reported margin of error is typically about twice the standard deviation the radius of a 95 percent confidence interval. In science, researchers commonl y report the standard deviation of experimental data, and only effects that fall far outside the range of standard deviation are considered statistically signif icant normal random error or variation in the measurements is in this way distin guished from causal variation. Standard deviation is also important in finance, where the standard deviation on the rate of return on an investment is a measure of the volatility of the investment. When only a sample of data from a population is available, the population standa rd deviation can be estimated by a modified quantity called the sample standard deviation, explained below. Failure Mode Effects Analysis (FMEA) Also called: potential failure modes and effects analysis; failure modes, effect s and criticality analysis (FMECA). Failure modes and effects analysis (FMEA) is a step-by-step approach for identif ying all possible failures in a design, a manufacturing or assembly process, or a product or service. Failure modes means the ways, or modes, in which something might fail. Failures ar e any errors or defects, especially ones that affect the customer, and can be po tential or actual. Effects analysis refers to studying the consequences of those failures. Failures are prioritized according to how serious their consequences are, how fr equently they occur and how easily they can be detected. The purpose of the FMEA is to take actions to eliminate or reduce failures, starting with the highest-p riority ones. Failure modes and effects analysis also documents current knowledge and actions about the risks of failures, for use in continuous improvement. FMEA is used dur ing design to prevent failures. Later its used for control, before and during ong oing operation of the process. Ideally, FMEA begins during the earliest conceptu al stages of design and continues throughout the life of the product or service. Begun in the 1940s by the U.S. military, FMEA was further developed by the aeros pace and automotive industries. Several industries maintain formal FMEA standard s. What follows is an overview and reference. Before undertaking an FMEA process, l earn more about standards and specific methods in your organization and industry through other references and training. When to Use FMEA When a process, product or service is being designed or redesigned, after qualit y function deployment. When an existing process, product or service is being applied in a new way. Before developing control plans for a new or modified process. When improvement goals are planned for an existing process, product or service. When analyzing failures of an existing process, product or service. Periodically throughout the life of the process, product or service FMEA Procedure (Again, this is a general procedure. Specific details may vary with standards of your organization or industry.)

1. Assemble a cross-functional team of people with diverse knowledge about the process, product or service and customer needs. Functions often included are : design, manufacturing, quality, testing, reliability, maintenance, purchasing (and suppliers), sales, marketing (and customers) and customer service. 2. Identify the scope of the FMEA. Is it for concept, system, design, proce ss or service? What are the boundaries? How detailed should we be? Use flowchart s to identify the scope and to make sure every team member understands it in det ail. (From here on, well use the word scope to mean the system, design, process or service that is the subject of your FMEA.) 3. Fill in the identifying information at the top of your FMEA form. Figure 1 shows a typical format. The remaining steps ask for information that will go into the columns of the form. Figure 1 FMEA Example (click image to enlarge) 4. Identify the functions of your scope. Ask, What is the purpose of this sy stem, design, process or service? What do our customers expect it to do? Name it with a verb followed by a noun. Usually you will break the scope into separate s ubsystems, items, parts, assemblies or process steps and identify the function o f each. 5. For each function, identify all the ways failure could happen. These are potential failure modes. If necessary, go back and rewrite the function with mo re detail to be sure the failure modes show a loss of that function. 6. For each failure mode, identify all the consequences on the system, rela ted systems, process, related processes, product, service, customer or regulatio ns. These are potential effects of failure. Ask, What does the customer experienc e because of this failure? What happens when this failure occurs? 7. Determine how serious each effect is. This is the severity rating, or S. Severity is usually rated on a scale from 1 to 10, where 1 is insignificant and 10 is catastrophic. If a failure mode has more than one effect, write on the FM EA table only the highest severity rating for that failure mode. 8. For each failure mode, determine all the potential root causes. Use tool s classified as cause analysis tool, as well as the best knowledge and experienc e of the team. List all possible causes for each failure mode on the FMEA form. 9. For each cause, determine the occurrence rating, or O. This rating estim ates the probability of failure occurring for that reason during the lifetime of your scope. Occurrence is usually rated on a scale from 1 to 10, where 1 is ext remely unlikely and 10 is inevitable. On the FMEA table, list the occurrence rat ing for each cause. 10. For each cause, identify current process controls. These are tests, proc edures or mechanisms that you now have in place to keep failures from reaching t he customer. These controls might prevent the cause from happening, reduce the l ikelihood that it will happen or detect failure after the cause has already happ ened but before the customer is affected. 11. For each control, determine the detection rating, or D. This rating esti mates how well the controls can detect either the cause or its failure mode afte r they have happened but before the customer is affected. Detection is usually r ated on a scale from 1 to 10, where 1 means the control is absolutely certain to detect the problem and 10 means the control is certain not to detect the proble m (or no control exists). On the FMEA table, list the detection rating for each cause. 12. (Optional for most industries) Is this failure mode associated with a cr itical characteristic? (Critical characteristics are measurements or indicators that reflect safety or compliance with government regulations and need special c ontrols.) If so, a column labeled Classification receives a Y or N to show whether special controls are needed. Usually, critical characteristics have a severity of 9 or 10 and occurrence and detection ratings above 3. 13. Calculate the risk priority number, or RPN, which equals S O D. Also cal culate Criticality by multiplying severity by occurrence, S O. These numbers pro vide guidance for ranking potential failures in the order they should be address ed.

14. Identify recommended actions. These actions may be design or process cha nges to lower severity or occurrence. They may be additional controls to improve detection. Also note who is responsible for the actions and target completion d ates. 15. As actions are completed, note results and the date on the FMEA form. Al so, note new S, O or D ratings and new RPNs. FMEA Example A bank performed a process FMEA on their ATM system. Figure 1 shows part of itthe function dispense cash and a few of the failure modes for that function. The opti onal Classification column was not used. Only the headings are shown for the right most (action) columns. Notice that RPN and criticality prioritize causes differently. According to the RPN, machine jams and heavy computer network traffic are the first and second highes t risks. One high value for severity or occurrence times a detection rating of 10 generat es a high RPN. Criticality does not include the detection rating, so it rates hi ghest the only cause with medium to high values for both severity and occurrence : out of cash. The team should use their experience and judgment to determine appr opriate priorities for action. Define Measure Analyze Improve Control (DMAIC) Six Sigma improvement teams use the DMAIC methodology to root out and eliminate the causes of defects: D Define a problem or improvement opportunity. M Measure process performance. A Analyze the process to determine the root causes of poor performance; determin e whether the process can be improved or should be redesigned. I Improve the process by attacking root causes. C Control the improved process to hold the gains.