Introduction to Six Sigma

By Tushar Ghosh S-6062

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Purpose of Six Sigma
To make customer happy To increase profits

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Origin of Six Sigma
1987 Motorola develops Six Sigma Other companies adopts Six Sigma• GE • Whirlpool • Honeywell • Johnson & Johnson • Nissan
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What can it do?
 Motorola  5-fold growth in Sales  Profits climbing by 20% pa  Cumulative savings of $14 billion over 11years  General Electric  $2 billion savings in just 3years  The No.1 company in USA
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GE Six Sigma Economies
2000 1800 1600 1400 1200 1000 800 600 400 200 0 1996 1998 2000 2002
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Series 1 Series 2

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It’s a philosophy:
• Anything less than ideal is an opportunity for improvement. • Defects costs money • Understanding processes and improving them is the most efficient way to achieve lasting results

It’s a process:
• To achieve this level of performance you need Define, Measure, Analyze, Improve and Control

Its is statistics
• 6 Sigma processes will produce less than 3.4 defects per million opportunities

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Philosophy
 Know what’s important to customer (CTQ)  Reduce defects (DPMO)  Centre around target (Mean)  Reduce variation (Standard Variation)

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COPQ (Cost of Poor Quality)

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COPQ v/s Sigma Level
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2 3 4 5 6
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COPQ

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Defect Opportunity
 A unit has 10 parts and in each part there are 4

opportunities of defects Total defects opportunities are 10 x 4 = 40  DPO= No. of defects/ No. of defect opportunity  In this case, if 10 units have 3 defects then defects per unit = 3/10 = 0.3 DPO = 3 / (40x10) =0.0075

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DPMO
 DPO multiplies by one million  In this case,

DPMO = 0.0075 x 1,000,000 = 7500

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Six Sigma Measurement
Defects per million
600000 500000 400000 300000 200000 158650 100000 0 1.5 2 2.5 3 67000 22700 6220 1350 233 32 3.5 4 4.5 5 5.5 6
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500000

308300 Defects per million

3.4

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DMAIC
 Define – What is    

important? Measure – How are we doing ? Analyze – What is wrong? Improve – Fix what’s wrong Control – Ensure gains are maintained to guarantee performance
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Six Sigma – Shortcomings
 Eliminate Defects but falls short on Optimizing

Process Flow  Not so strong on Identification of Waste  Not so Strong on Identification of Value Added / Non-Value Added Activities in a Process  Reduces Variation but not as effective on increasing Speed of Process

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Six Sigma Training
 Master Black Belt: Mentor, trainer and coach of

Black Belts and others in the organization  Black Belt: Leader of teams implementing the Six Sigma methodology on projects  Green Belts: Delivers successful focused projects using the Six Sigma methodology and tools  Team Members/Yellow Belt: Participates on and supports the project teams, typically in the context of his or her existing responsibillities
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