PROCESS CAPABILITY & SIX

SIGMA
 Statistical Process Control
• We want to keep the process in control
• The natural variation of the process must be
small (narrow) enough to produce products
that meet the standards (quality) required.
• But a process that is in statistical control may
not yield goods or services that meet their
design specification (tolerances)
 PROCESS CAPABILITY
• Is a measurement of how the process is performing with
respect to a desired outcome
• Source of defects :
– Too widely spread, or
– Shift in the mean
 Process Capability Index (Cp)
• Cp compares Voice of Customer to Voice of Process
• Process is assumed to be capable if it produces 99.7%
good parts

USL - LSL
Cp =
6
 Cp and Cpk
• Cp indicates whether process variation is
satisfactory, but it does not measure whether
the process is centered properly
• Cpk measures the effect of both center and
variation at the same time
 Cpk
• Cpk index is the lesser of :

USL – Mean or Mean - LSL

3 3
 Interpretation of Cp

Cpk Value Evaluation

<1 Unacceptable process. Part of process distribution is out of
specification, a significant number of defects are being
made
=1 Process is just meeting specifications. A minimum of 0.3%
defects will be made.
1.33 Highly capable process. Process distribution is well within
specification
2.0 World-class capable
 Computing the Proportion of
Nonconforming Product
• When process is not capable
• Nonconforming products fall beyond the
lower and upper specification limits
X-
Z=


• Use a Z table to find the probability

 Limitations
Cp indices are valid only for data with large
sample size (min 30, preferable 50-100) and
normal distributions
 Example 1
1. Process capability of creamer ex Korn Thai in 2008. Specification
limit for raw material inspection : fat = 30-36%

Mean = 33.5
Std dev = 0.8

Cp = 6/(6*0.8) = 1.25

Cpk = min{(36-33.5/(3*0.8)), (33.5-30/(3*0.8))}

= min {1.0, 1.5}
= 1.0

Process is CAPABLE
 Example 2
2. Process capability of cookies moulding machine ex Makindo

USL-LSL : 118-123
Mean= 120.1
Stdev = 4.2

Cpk= min {(120.1-118/(3*4.2)),(123-120.1/(3*4.2)}

= min {0.17, 0.23} = 0.17

Process is NOT CAPABLE

Z = {(118-120.1)/4.2}; {(123-120.1)/4.2}
= -0.50; 0.69

EXCEL  normsdist(z) = 30,9% : 75,5%

Probability of producing out-of-spec cookies = 30,9% + (1-75,5%) = 55,3%

 Conclusion:
Process Capability:
Yes: No:

too wide

Yes: No:
potentially capable
if re-centered

Yes: No:
potentially capable
if re-centered
What does Six Sigma mean ?
 Example #1: Product Delivery

Baseline Improved (?) Service Time

12 27
24 7 • Delivery time PT X
14 15 • Using mean-based thinking, we improve
7 4 average performance by 29%, and break
16 18 out the champagne…..
8 6
• BUT….our customer only feels the
20 23
VARIANCE,….and cancel the next orders!
25 6
14 2 What the Company Feels
10 24
11 2
30 6
16 5

Mean 15.8 11.2 11.2 15.8

SD 7.0 9.0 What Customer Feel

 Improved (?)
11
11
10 • Now it is improved….the Mean is 11,
10 and the STD is below 1….
12
11
11 • but UNFORTUNATELY, what the
11 customer wants is 9 days (or what
11
competitors can do is 9 days)….so it is
12
12
not variance issue anymore, but now
12 about the Process Centering issue
10

Mean 11.07
SD 0.76
 Example #2: Manufacturing Steel
Rolling Mill

Sheet Thickness is a CTQ

(Critical to Quality Parameter)

Nominal Thickness = 1000 mm

Minimum Spec = 950 mm
Maximum Spec = 1050 mm

Scrap Production averages 100 meter / Coil

 Lower Upper
Specification Specification Steel Strip
Limit Limit
Thickness

Scrap Scrap Quite some

Variation
-Ending up as Scrap
No Less Than No More Than
950mm 1050mm
 Lower Upper
Specification Specification
Limit Limit
Standard Deviation
Let’s Look at some Basic
25mm Statistics

Mean Thickness = 993 mm

Standard Deviation = 25 mm

Mean Thickness
993mm

On Average it’s OK - it’s a Variation

19 issue
 Lower Upper
Specification Specification
Limit Limit
Standard Deviation
25mm How Capable is
our Process to
Produce within
Spec?
Sigma Rating = Spec Width / 2* SD
Spec Width (1050-950)
100mm = 100 / 50
= 2s
Standard Deviation
17mm

Spec Width
100 m
Std Dev
17 m
3s
Spec Width (1050-950)
100mm
 Lower Upper
Specification Specification Reducing Variation is
Limit Limit
Clearly the Key to
Improving
Process Capability

Spec Width
100 m
Std Dev
8 m
6s
 Lower Upper
Specification Specification
Limit Limit

6 Sigma
6s Unit : Each Measurement

Defect : Measurement out of Spec

Spec Standard Sigma DPMO %
Width Deviation Level In Spec Defect Opportunities per Unit : 1

100 25 2 308,500 69.1 Quality expressed as DPMO

( Defects per Million
100 17 3 66,800 93.3 Opportunities)
100 12 4 6,200 99.4
100 10 5 233 99.98
100 8 6 3 99.99
 Effects of Reducing
Variability on Process Capability

Nominal value
Six sigma

Four sigma

Two sigma

Lower Upper
specification specification

Mean
 Lower Upper
PT X The AVERAGE (Mean) of Their Specification Specification
Limit Limit
Delivery Time is: 12 DAYS
But…
Standard Deviation = 7.0

Lower Upper
PT Y The AVERAGE (Mean) of Their Specification Specification
Delivery Time is: 12 DAYS Limit Limit

And….
Standard Deviation = 1.4

24
 Six Sigma
Improvement Model
1. Define Determine the current process
characteristics critical to customer satisfaction
and identify any gaps.
2. Measure Quantify the work the process does
that affects the gap.
3. Analyze Use data on measures to perform
process analysis.
4. Improve Modify or redesign existing methods to
meet the new performance objectives.
5. Control Monitor the process to make sure high
performance levels are maintained.
 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.
 Six Sigma Education

• Green Belt: An employee who achieved the first level of

training in a Six Sigma program and spends part of his or
her time teaching and helping teams with their projects.

• Black Belt: An employee who reached the highest level

of training in a Six Sigma program and spends all of his
or her time teaching and leading teams involved in Six
Sigma projects.

• Master Black Belt: Full-time teachers and mentors to

several black belts.