BTM 3713

LEAN MANUFACTURING SYSTEM

TOPIC 7: SIX SIGMA

LECTURER:
DR. MUSFIRAH ABDUL HADI
 Six Sigma

Introduction:
• Six Sigma is a concept that was originated by Motorola Inc. in the
USA in about 1985.
• At the time, they were facing the threat of Japanese competition in
the electronics industry and needed to make drastic improvements
in their quality levels (Harry and Schroeder, 2000).
• Six Sigma was a way for Motorola to express its quality goal of 3.4
DPMO where a defect opportunity is a process failure that is critical
to the customer).
• Motorola set this goal so that process variability is ±6 S.D. from the
mean (Breyfogle et al., 2001, p. 39).
 3 Sigma vs. 6 Sigma

• Although on the surface, the 3 Sigma vs. 6 Sigma

comparison involves merely different levels of tolerance for
defects, they are used quite differently in practice.
• Six Sigma deals with desired outcomes and the amount of
defects permitted.
• Three Sigma determines the nature of influential factors that
affect processes and their outcomes (products and services)
and whether or not those factors are predictable.
• Summarizing 3 Sigma vs. 6 Sigma in a different way, Three
Sigma is used to determine the state of a process while Six
Sigma constitutes a methodology to set and achieve targets
for quality outcomes.
 Six Sigma

Introduction:
• They further assumed that the process was subject to disturbances
that could cause the process mean to shift by as much as 1.5 S.D.
off the target
• Factoring a shift of 1.5 S.D. in the process mean then results in a
3.4 DPMO
• This goal was far beyond normal quality levels and required very
aggressive improvement efforts.
• For example, 3 sigma results in a 66,810 DPMO or 93.3% process
yield, while Six Sigma is only 3.4 DPMO and 99.99966% process
yield (these computations assume a 1.5 S.D. shift in the process
mean).
 Six Sigma

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
Six Sigma

The word is a statistical term that

measures how far a given process
deviates from perfection. The central
idea behind Six Sigma is that if you can
measure how many “defects” you have
in a process, you can systematically
figure out how to eliminate them and get
as close to “zero defects” as possible.
 99.9997%?!?!?

• 3.4 million defects per opportunity

• What’s the difference between 99% and
99.9997%
• 7 lost mail per hour instead 20000 per hour.
• Unsafe drinking water for 2 minutes per year
instead of 15 minutes per day.
• 1 plane crash every 5 years instead 2 plane
crashes annually.
 Six Sigma

Definition:

• It applies maths to prove that the problem has been solved.

 What are the benefits?

1. For Organization
• Bottom line cost savings
• Improved quality of product or service, hence more customer satisfaction.
• Reduction in process times
• Common language throughout the organization
• World class standard
• Development of staff skills
• Common language throughout the organization

2. For Individual
• This certification helps employees to grow on their career paths and
enhance their career prospects.
• Qualified and experienced professionals also have the option of starting
their own Six Sigma consultancy business.
• Adds value to resumes and enhance career prospects.
• Helps in getting into the next level that is Six sigma Black Belt
• A status that is recognized worldwide.
 Six Sigma
• It relies heavily on the principles and tools of TQM.

• It is driven by a close understanding of customer needs;

the disciplined use of facts, data, and statistical analysis;
and diligent attention to managing, improving, and
reinventing business processes.

• To achieve Six Sigma quality, a process must produce no

more than 3.4 defects per million opportunities. An
“opportunity” is defined as a chance for nonconformance,
or not meeting the required specifications. This means we
need to be nearly flawless in executing our key processes.
3: From Six Sigma to Lean
Six Sigma
History

Total Quality Management

Six Sigma (Motorola, GE)
Striving for dramatic revolutions by
means of projects.
Focus on improving output
precision.
Goal: Reducing cost of bad quality.
Lean Manufacturing /
Management (Toyota)
Striving for continuous
improvement.
Focus on reduction of product
stocks and process waste.
Goal: Short cycle times and just in
time production and service.

Lean Six Sigma

12
COMPANIES USING
 Goals of Lean Six Sigma
LSL USL LSL USL

Defects Defects Defects

Customer Target Customer Target

Prevent Defects by Prevent Defects by

Reducing Variation LSL USL Centering Process

Customer Target

Meet Customer
Requirements
Effects of Reducing
Variability on Process Capability
Nominal value
Six sigma

Four sigma

Two sigma
Lower Upper
specification specification

Mean
Six Sigma
Six Sigma
Six Sigma
 SIX SIGMA
Measure Phase

Define Understand Collect Process

Problem Process Data Performance

 Defect  Define Process-  Data Types  Process Capability

Statement Process Mapping - Defectives - Cp/Cpk
 Project  Historical - Defects - Run Charts
Goals Performance - Continuous  Understand Problem
 Brainstorm  Measurement (Control or
Potential Defect Systems Evaluation Capability)
Causes (MSE)

Understand the Process and Potential Impact

 Process Capability
Process capability is the ability of the process to
meet the design specifications for a service or
product.
Nominal value is a target for design specifications.
Tolerance is an allowance above or below the
nominal value.
Process Capability

Nominal
value
Process distribution
Lower Upper
specification specification

20 25 30
Process is capable
Process Capability

Nominal
value
Process distribution
Lower Upper
specification specification

20 25 30
Process is not capable
 SIX SIGMA
Six Sigma as a Metric

2
   ( xi  x )
Sigma =  = Deviation n 1
( Square root of variance )

Axis graduated in Sigma

-7
-6

-3

-1
-5
-4

-2

3
1
2

6
0

4
5

7
between + / - 1 68.27 % result: 317300 ppm outside
(deviation)
between + / - 2 95.45 % 45500 ppm

between + / - 3 99.73 % 2700 ppm

between + / - 4 99.9937 % 63 ppm

between + / - 5 99.999943 % 0.57 ppm

between + / - 6 99.9999998 % 0.002 ppm

 Process Capability Ratio, Cp

Process capability ratio, Cp, is the tolerance width divided by

6 standard deviations (process variability).

Upper specification - Lower specification

Cp =
6
 Process Capability Index, Cpk
Process Capability Index, Cpk, is an index that measures the potential
for a process to generate defective outputs relative to either upper
or lower specifications.

=x – Lower specification =
Cpk = Minimum of ,Upper specification – x
3
3

We take the minimum of the two ratios because it gives the worst-
case situation.
Process Capability
How to use it
• Use Minitab output whenever possible, since it combines the indexes with
a graphical representation of the process: actual sample, estimated
short term capability and estimated long term performance

• Also use as a rule of thumb the following chart

Cp Cpk Pp Ppk Sigma

Red (Bad) < 1.00 < 1.00 < 1.33 < 1.33 < 4.5

Yellow (OK) 1.00 - 1.33 1.00 - 1.33 1.33 - 1.67 1.33 - 1.67 4.5 - 5.5

Green (Good) > 1.33 > 1.33 > 1.67 > 1.67 > 5.5

(Cpk x 3) +1.5 = sigma

Caution:
Cpk is an index much misused: It is only applicable to normally
distributed variable data that is measured in the short term.

Conversions from Cpk to ppm and sigma assume that all defectives
are occurring at one tail of the distribution with an average sigma
shift of 1.5 sigma. (industry standard).

Cpk MUST be seen as part of a package of information.

Capability studies for non-normal data (Weibull) do not give Cpk

values
Process Capability
Example

Using Minitab:

Process Capability Analysis for Data

LSL USL
Process Data
USL 520.000 ST
Target * LT
LSL 420.000
Mean 435.833
Sample N 30
StDev (ST) 10.7176
StDev (LT) 59.6888

Potential (ST) Capability

Cp 1.56
CPU 2.62
CPL 0.49
Cpk 0.49
Cpm *
250 350 450 550 650

Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance

Pp 0.28 PPM < LSL 366666.67 PPM < LSL 69795.44 PPM < LSL 395402.81
PPU 0.47 PPM > USL 100000.00 PPM > USL 0.00 PPM > USL 79256.43
PPL 0.09 PPM Total 466666.67 PPM Total 69795.44 PPM Total 474659.24
Ppk 0.09
 Six Sigma Methodology

Practical Problem Define

Characterization
Measure

Process
Statistical Problem
Y

Statistical Solution Analyze

Optimization
Process
Improve

Practical Solution Xs
Control
Goal: Y = f ( x )

All Rights Reserved, Juran Institute, Inc.

 SIX SIGMA
Core Statistical Skills Core Six Sigma Quality Skills Core Interpersonal Skills
GBM Statistical Software (JMP, Minitab) GBM AIEG QMS GBM Communication (oral, written)
MIN101 AEC722, DDI121
GBM Numerical and Graphical Techniques GBM QS 9000 GBM Team Facilitation
MIN101, IBM548 AEC279 DDI170
GBM Statistical Process Control GBM Customer Satisfaction GBM Coaching and Mentoring
AEC506, AEC661, AEC662, AEC663 SSG100, TCS100 LDR380, PER119
GBM Process Capability GBM Six Steps to Six Sigma GBM Managing Change
AEC661, AEC662, SCP201 SSG100, SSG102CD MGT564, MGT124, PDE532
GBM Comparative Tests GBM Concurrent Engineering BM Leadership
MIN101, SPC201 MGT561, MGT562, DDI180
GBM Analysis of Variance (ANOVA) GBM TCS BM Team Building
ENG998, AEC603 TCS100 MGT560, MGT562, EC727, MGT155
GBM Measurement System Analysis GBM Systemic Approach to Problem M Instructional/Teaching
AEC663 Solving MOT132
QUA392
GBM Design of Experiments (e.g. Full, GBM Team Oriented Problem Solving M Managing Projects
Fractional, Taguchi Designs) (8D, 7D, 5P)
ENG998, QUA389 AEC471, MGT839
GBM Regression (e.g. linear, nonlinear) BM Quality System Review
QUA590
GBM Statistical Process Characterization BM Team Problem Solving Non-
Strategies and Techniques Manufacturing
ENG227 CES103
BM Statistical Inference BM Design for Manufacturability
MIN101, SPC201
ENG123, ENG123CD
BM Confidence Intervals BM Financial/Economic Quality Issues
MIN101, SPC201
BM Probability Concepts and M Quality Function Deployment
Distributions
SPC201 QUA200A, QUA200B, QUA200C
BM Response Surface Methods M Total Quality Management
QUA393
BM Screening DOE M Benchmarking
QUA391 BMK220
M Advanced Problem Solving M Product Development Assessment
Strategies and Technologies
ENG998
M Acceptance Sampling
SPC201
M Sample Size Estimation

M Robust Design of Processes and

Products

M Survival Analysis / Reliability

 The Stages of a Six Sigma
Analysis

For existing process

 The Stages of a Six Sigma
Analysis

For new process

DMAIC vs DMADV
DMAIC vs DMADV
 SIX SIGMA
Measure

Strategy by Phase -
Improvement
Phase Step Focus

Process Characterization
Measure What is the frequency of Defects? Measure

• Define the defect Y

Control
(What)

Analyze
• Define performance standards Y
• Validate measurement system Y Improve

• Establish capability metric Y

Measure

Analyze Where, when and why do Defects occur?

Control
• Identify sources of variation

Analyze
(Where, When, Why) X
• Determine the critical process parameters Vital X
Improve

Process Optimization
Improve How can we improve the process? Measure

• Screen potential causes X

Control
(How)

Analyze
• Discover relationships Vital X
• Establish operating tolerances Vital X Improve

Were the improvements effective?

• Re-establish capability metric Y, Vital X Measure

Control
Analyze
Control How can we maintain the improvements? Y, Vital X
(Sustain, Leverage) • Implement process control mechanisms
• Leverage project learning's Improve

• Document & Proceduralize

The Stages of a Six Sigma Analysis
The Stages of a Six Sigma Analysis
2: Methods of Six Sigma

Six Sigma uses various techniques:

37
 Six Sigma Tools

• Pareto Chart
• Control Chart
• Fishbone Diagram
• SIPOC
• Quality Function Deployment
 Six Sigma Tools – Pareto chart

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Six Sigma Tools – Ishikawa / Fish Bone
Diagram

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
Six Sigma Tools - SIPOC
The QFD House

-Called a house because

it looks like a house
-Which characteristics
resemble a house?

42
Six Sigma Tools
Lean Vs Six Sigma
Lean Vs Six Sigma
 Six Sigma Implementation
 Top Down Commitment from corporate leaders.
 Measurement Systems to Track Progress
 Tough Goal Setting through benchmarking best-
in-class companies.
 Education: Employees must be trained in the
“whys” and “how-tos” of quality.
 Communication: Successes are as important to
understanding as failures.
 Customer Priorities: Never lose sight of the
customer’s priorities.