Introduction to

SIX SIGMA

Ryan Jeffrey P. Curbano, Ph.D.

Engr. Bingo B. Cueto. PIE MSIEM
Subject Professors
Learning Objectives

◼ To learn the basic concepts of Six Sigma

◼ To learn the principles of DMAIC
methodology
◼ To identify different quantitative tools in
used in DMAIC methodology.
What is Sigma?
Sigma — Standard deviation, 
 i = 1 (x i )2
N
−μ
2 =
N

Average Deviation from Mean

1

T 1 2 3 4 5 6

LSL USL

It is very useful to describe the extension or dispersion of a group of

data, around the average
Variance – it measures the dispersion or variability of data around the
average
What is Six Sigma?
◼ It is a business process that allows
companies to drastically improve their bottom
line by designing and monitoring everyday
business activities in ways that minimize
waste and resources while increasing
customer satisfaction.

https://www.youtube.com/watch?v=4EDYfSl-fmc

Mikel Harry, Richard Schroeder

Six Sigma (Currency, © 2000)
What is Six Sigma?
◼ A vision of quality which equates with only
3.4 defects per million opportunities for
each product or service transaction and
strives for perfection.
- General Electric-
Why do Six Sigma?

◼ 12–18% increase in capacity

◼ 8–12% reduction in manpower

◼ 10–30% capital reduction

◼ 6–20% increase in profit

History of Six Sigma
◼ The quest to achieve Six Sigma had its birth at
Motorola in 1979.
◼ A study was published on the correlation
between product field life and number of times
repaired during manufacturing in 1985.
◼ Motorola applied Six Sigma to develop Bandit
Pagers in 1987
◼ GE embraced six sigma in 1995 which resulted
in better GE products
◼ During the last 10 yrs over 100 books have been
published with six sigma as titles.
Successful Stories
Motorola (1987-1999)
• $14B cumulative savings
• Five-fold sales growth
• 20% annual growth in profits
AlliedSignal (1992-1996)
• Saved $14.5B company from bankruptcy
• 16% reduction in new product introduction time
• Over $2B savings in direct cost
General Electric (1995-2000)
• Transformed from an old-line industrial giant into a $280B
competitive and agile growth company
• Over $6.6B in savings
Six Sigma Is Three Things

◼ A statistical
measurement
◼ A business
strategy
◼ A philosophy
Six Sigma — A Statistical Measurement
◼It provides a quantitative performance
assessment of our products, services
and processes.
◼It allows for comparisons against other
similar or dissimilar products, services
and processes.
◼It provides feedback on how far ahead
or behind we are.
 What Six Sigma Looks Like …

3 Sigma Quality equals 6 Sigma Quality equals

• At least 54,000 wrong • One wrong drug

drug prescriptions per year. prescription in 25 years.

• 27 minutes of dead air • 2 seconds of dead air

time per TV channel time per TV channel
each week. each week.

• 5 short or long landings • 1 short or long landing

at O’Hare airport every at all U.S. airports in
10 years. 10 years.
Sigma Process Rating
Sigma Capability Defect Rate

2 308,770 dpmo

3 66,811 dpmo

4 6,210 dpmo

5 233 dpmo

6 3.4 dpmo
Six Sigma — A Business Strategy

Improved Sigma-Rating of Process

Improved Product or Process Quality

Reduced Cost of Operations

Greater Customer Satisfaction

 Cost Of Poor Quality (COPQ)
➢ is the sum of costs incurred by an organization in preventing poor quality

Inspection
Warranty Traditional Quality Costs
Scrap
(tangible)
Rework
Rejects

More Setups
Additional Costs of Poor Quality
Expediting Costs
Lost sales (intangible)
Late Delivery Lost Opportunity
Lost Customer Loyalty
Excess Inventory Hidden Factory
Long Cycle-Times
Engineering Change Orders
(Difficult or impossible to measure)

COPQ is a function of Sigma Capability

3 Categories of COPQ
◼ Prevention cost – planned cost incurred by an
organization to ensure that no defects occur in any
stages such design, development, production, delivery of
a product or service
◼ Appraisal Cost - cost incurred in verifying, checking, or
evaluating a product or service at various stages during
manufacturing or delivering.
◼ Failure Cost – are incurred by an organization because
the product or service did not meet the expected
requirements and the product had to be fixed or replace
or the service had to be repeated.
 External cost – cost of failure of products after delivery to
customer
 Internal cost – cost of every failure that takes place before the
product is delivered to the customers.
Six Sigma — A Philosophy
◼SixSigma is about working smarter, not
harder.

◼Discover and neutralize harmful sources

of variation
 Mistakes are reduced (or eliminated)
 Improved process capability
 Sigma rating goes up
Breakthrough Strategy
Define - Define the project GOAL & customer (internal &
external) deliverables

Measure - Establish a deeper understanding of the

problem by searching for the potential root causes.

Analyze - Analyze and determine the root causes of the

problem.

Improve - Implement the best parameter settings that will

solve the problem and lead to improvement.

Control - Implement control system to sustain the

improvement.
The Six Sigma Tools
6
FSCI
Six Sigma Project Guide
DEFINE MEASURE ANALYZE IMPROVE CONTROL
Phase

Definition of Assess the Cur r ent Maintain

C o n f i r m f(x) for Y O p t i m i z e f(x) for Y
Opportunity Process Impr ovements

1. Problem 1.Macro/Micro 1. Multi-Vari Studies 1. Sample 1 .Process

Statement Process Charts Size Control Plan
2. Correlatio Calculation
2.Goals/Objectives 2.Rolled n 2. SPC Charts
Goal = B-(B- Throughput Analysis 2. DOE
E)*70% Yield 3. Poka Yoke
B: Baseline 3. Regression 3. Hypothesis Tests
or average 3. Fishbone,Cau Analysis 4. Standardization
se & Effect • Single/Multiple 4. ANOVA
Typical Deliverables

3. Projected Matrix, FMEA 5.OCA

Business 4. Sample 5. Flow Diagrams
4. GR & R Study Size P 6
4. Financial Value Calculation 6. FMEA
5. Capability Study Update
5. Key Metrics 5. Hypothesis Test 7. Update Performan
6. Baseline vs. • Mean Testing(t, Performance ce Trend
6. Team Entitlement Z) Trend
Assignment • Variance(F,etc.)

7. Translate to $$$ • ANOVA

8. Update Performance 6. Update

Trend Performan
Business Applications
◼ Manufacturing
◼ Supply Chain Management
◼ Materials Management
◼ Information Technology
◼ Accounting & Finance
◼ Finance
◼ Equipment Management
◼ Environment Safety and Health (ESH)
◼ Purchasing
◼ Human Resources
◼ Legal
◼ Project Engineering & Management
◼ Customer Service
◼ Production Planning and Scheduling
◼ Sales
◼ Construction
◼ Medical Services
◼ Power Generation
6 Sigma Implementation Team
◼ Master Black Belt
 They need to be technical holder
 They should be thorough with the basic and advance statistical tools
 They typically attend 4-1 week training
 An organization need to have a one Master black belt to every 30 black
belt
◼ Black Belt
 They need to be technical holder
 They should be thorough with the basic and advance statistical tools
 They typically undergo 4-1 week training programs with 3 weeks
between session to apply the strategies learnt to assign projects.
 There should be 1 black belt per 100 employees
◼ Green Belt
 Should have technical and support background
 They should be familiar in basic statistical tools
 They are the process owners
 They execute the 6 sigma project as part of their normal job
 They focus on day to day work and assist black belt in data collection
 DMAIC : The Six Sigma Breakthrough Strategy

DEFINE MEASURE ANALYZE IMPROVE CONTROL

Definition of Assess the Optimize f(x) for Maintain

Confirm f(x) for Y
Opportunity Current Process Y Improvements
 DEFINE MEASURE A N A LY Z E IMPROVE CONTROL

D EFINE
Define the project GOAL & customer (internal & external) deliverables

1 Develop problem statement, goals, and benefits.

> BASELINE, ENTITLEMENT & GOAL
2 Identify Champion, process owner & team members.
3 Develop project roadmap and milestones.

Tools/Techniques most commonly used

> Trend charts
> Pareto charts
> Prioritization matrix
> Descriptive statistics
 DEFINE MEASURE A N A LY Z E IMPROVE C O N TRO L

Project Objective:

What is the goal for the improvement team's project? Make sure that the problem and
goal are SMART(specific, measurable, attainable, relevant, and time-bound)? Has
anyone else (internal or external to the organization) attempted to solve this problem or
a similar one before? If so, what findings are useful for the success of the project?
GOAL = Baseline - (Baseline-entitlement)*70%,
Baseline is the average current process performance.
Entitlement is the best performance attained so far.

Projected Business Impact:

Why is this project important? Make sure that the project is linked to key business
goals and objectives. What business indices will be improved by the project? What are
the projected cost savings/opportunities on this project?
 DEFINE MEASURE A N A LY Z E IMPROVE C O N TRO L

Trend chart
Plot a trend of the historical data with the baseline(average), entitlement, and goal.

Roles and Responsibilities:

Who will lead the team? Who are the members and their respective roles?

Project Scope:
What is the coverage of the project? Where does it start? What is the end point?
Is the project scope manageable? What are the existing constraints that might affect
the execution of the project?

Milestones:

Insert the roadmap here. Start date? Target completion date? What are the highlights
for the completion of the project and its respective estimated dates of completion?
Pareto Chart: Most Commonly Used Define
Phase Tool
- Generating Pareto chart using the Minitab
Pareto Charts - Why?
⚫ Focus efforts on the problems that offer the
greatest potential for improvement by showing
their relative frequency or size in a descending
bar graph
⚫ A Pareto chart is a powerful graphical tool for
separating the “important few” from the “trivial
many”
⚫ Construct Pareto charts at many levels to dig
down on a problem
Pareto Principle
 Vilfredo Pareto - Italian Economist from the
1800’s
“Very few of the people have most of the
money”
 80% of the problems Vital Few
are linked to only 20%
Trivial Many
of the causes
 Powerful graphical tool
 Useful when establishing priorities
 Using A Pareto Chart

$ Use a Pareto to dig

Problem: down
The cost of maintaining
quality in your company 1st level
is too high.
What do you work on?
.....
Internal
Failure Prevention 2nd level
$ Cost ...
$

... ...
 DEFINE MEASURE A NA LY Z E IMPROVE CONTROL

M EASURE
Establish a deeper understanding of the problem
by searching for the the potential root causes.

1 Conduct a process mapping of the process.

2 Brainstorm on the potential KPIV's(root causes)
of the problem using the fishbone diagram.
3 Identify the critical few potential KPIV's from the Cause-
Effect matrix.
4 Generate the FMEA.
5 Conduct a measurement system analysis to
validate gage/inspection capability.
6 Collect the data.
7 Determine process capability.
8 Summarize potential KPIV's.
DE F INE MEASURE A NA LY Z E IMPROVE C ONTROL

Tools/Techniques most commonly used

1 Process Map
2 Fishbone Diagram
3 Cause-&-Effect Matrix
4 FMEA
5 Descriptive Statistics
6 Process Capability
7 Pareto charts
8 Checksheets
9 Run charts/Control charts
Process familiarization

• Process map
• Rolled Throughput Yield
 What is a Process Map?

◼ Visual representation of all the major

steps and decision points in a process.

◼ It represents the process as it actually

exists.
 Example of a Process Map

Typical Order Fulfillment Process

Sales OrderEntry Warehousing Transportation
Isorder Yes Send order to Isproduct Yes Pickproduct for Doescustomerhave No Customerreceive
Customerplaces
Ship order
order Correct? Warehouse for picking Available? order Other shipments? order

Yes
No
No

No
Will customerallow
Call customerand Consolidated shipments?
Makecorrections

Yes
Consolidated orders

No No No
Can production
Will product Isproduction schedule Will customer No
Manufacture
Beavailable To manufacture Accept back Cancel order
Product in time
Before order ships? Product? Order?
For shipping?

Yes Yes Yes Yes

Placeorder on hold
Expedite manufacturing
Until product
schedule
available

Taken from Seagate Supplier Training module

Why use process maps?

◼ To create a common understanding

◼ To clarify steps in a process
◼ To identify improvement opportunities in a
process
> “Hidden factories”
> Non-value added steps
>Waste, delays, inefficiencies, delays, and
bottlenecks
>To identify the outputs and inputs in the
process
When to use process maps?

◼ To build a consensus on how a process

actually operates and how it should operate
◼ To understand the cause of common
problems with how all units are processed
◼ To evaluate the process performance(cost
and cycle time) at each step
◼ To identify bottlenecks, delays, and
inefficiencies in the process
Process Flow Symbols

OPERATION
All steps in the process where the object undergoes a
change in form or condition.
TRANSPORTATION
All steps in a process where the object moves from one
location to another, outside of the Operation
STORAGE
All steps in the process where the object remains at rest, in
a semi-permanent or storage condition
DELAY
All incidences where the object stops or waits on a an
operation, transportation, or inspection
INSPECTION
All steps in the process where the objects are checked for
completeness, quality, outside of the Operation.

DECISION
 Types of Process Maps

 Basic or high-level flow diagram

 Activity flow diagram
 Deployment flow diagrams
 Types of Process Maps

 Basic or high-level flow diagram

Taken from Rath & Strong’s Six Sigma Pocketguide

Types of Process Maps

 Activity flow
diagram

➢ Diagram that is specific

about what happens in
a process.
➢ It captures decision
points, rework loops,
complexity, etc.

Taken from Rath & Strong’s Six Sigma Pocketguide

Types of Process Maps

 Deployment flow
diagrams

➢ Shows detailed steps

in a process and
which people or
groups are involved

Taken from Rath & Strong’s Six Sigma Pocketguide

 Types of Process Maps

 Which process maps to use?

Taken from Rath & Strong’s Six Sigma Pocketguide

 Rolled Throughput
Yield

References: Yield the Right Way , Six Sigma and Beyond by Thomas Pyzdek
Learning Objectives
◼ Comparison between Conventional
Metrics and Six Sigma Metrics
◼ Introduction to
 DPU

 DPMO

 Throughput Yield
 Rolled Throughput Yield
 Definition of Defective and Defect
Defective
◼ A unit of product that does not meet customer’s
requirement or specification.
◼ Also known as a non-conforming unit.

Example
◼ A blouse or shirt with a tear
◼ A cellphone with a malfunctioning LCD
 Definition of Defective and Defect
Defect
◼ A flaw or a single quality characteristic that
does not meet customer’s requirement or
specification.
◼ Also known as a non-conformity.
◼ There can be one or more defects in a
defective.
Example
◼ The tear in a brand new blouse or shirt
◼ A scratch on the cellphone LCD
Capability Analysis — Conventional Metrics

◼ Reject Rate
 in percent (e.g. 7.4%)
 in ratio (e.g. 0.074)
 in parts per million (e.g. 74,000 DPPM)

◼ Yield
 in first-time yield Are we measuring
 in final yield defectives
or defects?
Capability Analysis —
Six Sigma Metrics

◼ Defect Rate
 in defects per unit (DPU)
 in defects per opportunity (DPO)
or defects per million opportunities (DPMO)

◼ Yield
 in throughput yield
 in rolled throughput yield
 in normalized yield
 Defects Per Unit (DPU)

Defects Per Unit (dpu): The average number

of defects per unit produced. Ballpen part
Ink Ball-
Casing Ink Cap
cartridge point

1. Continuity of ink flow x x

2. Casing color to ink
color coordination x x x
3. Ballpoint w/in specs x
4. No leaking of ink x
5. Crack in casing x
6. Loose cap x x
7. Leaking of ink in ink
cartridge x

Total Defects per

ballpen 3 2 2 2 1

Total # Defects = 10 / 3 = 3.3 dpu

Defect Rate =
Total # Units Inspected
Defects Per Million Opportunities
(DPMO)
Opportunities: The number of possibilities for defect
creation in any unit of product, process or sequence of
processes.
1. Continuity of ink flow
2.Casing color to ink color
coordination
For 1 unit, 7 ways of
3. Ballpoint w/in specs
failing.
4. No leaking of ink
5. Crack in casing
Opportunities per Unit = 7
6. Loose cap
7. Leaking of ink in ink cartridge

No. of Opportunities = Opportunities / Unit  No. of Units

= 7  3 = 21 Opportunities
Defect Rate = # Defects / # Opportunities = (10 / 21 )
= 0.476190 dpo = 476, 190 dpmo
DPMO vs Sigma Capability
800,000
697,672
700,000
Defects Per Million Opportunity

600,000

500,000

400,000
308,770
300,000

200,000

100,000 66,811
6,210 233 3.4 0.02
-
0 1 2 3 4 5 6 7
Sigma Capability
 First-Time Yield (Yft)
First-Time Yield(unit-based) is the
number of units that pass a particular
inspection compared to the total number of
units that pass through that point in the
process.
Input 1,000 Process 900 Accept

100 Reject Defective rate

or defect rate?
First-Time Yield, Yft = 900 / 1000
= 0.900
 Throughput Yield (Ytp)
Throughput Yield is the probability that all
defect opportunities produced at a particular step
in the process will conform to their respective
performance standards.
Throughput Yield, Ytp = e –dpu
Input 1,000 Process 900 Accept

100 units Reject (150 Defects)

Classical Yield, Yft = 900/1000 = 90%

Throughput Yield, Ytp = e-(150/1000) = 0.8607 = 86.07%
Throughput Yield
◼ It is a better indicator of the amount of
rework required.
 throughput yield is a function of defect rate

◼ May not be conducive for existing

quality system
most test/inspection reject system is based
on first failure out
 more work involved to capture dpu
 Final Yield (Yf)
Final Yield is the number of units that pass the
last step in a series of steps in a process
compared to the number of units the entire
process started with.
Process Process Process
1,000 A 900 B 850 C 700 Ship

Input Input Input

100 Scrap 50 Scrap 150 Scrap

Final Yield, Yf = Quantity Shipped / Quantity Built

= 700 / 1,000 = 70%
A shortcoming of final yield is that it fails to consider the
“hidden factory” or rework.
 Rolled Throughput Yield (Yrt)
Process Process Process
1,000 A 975 B 945 C 800 Ship

Input Input Input

100 150 150 275 200 125
Rework Rework Rework

25 Scrap 30 Scrap 145 Scrap

For the 100 pcs rejected For the 150 pcs rejected For the 200 pcs rejected
Defects = 200 Defects = 350 Defects = 300
Ytp(A)= e–200/1,000 = 0.8187 Ytp(B)= e–350/975 = 0.6984 Ytp(C)= e–300/945 = 0.7280

Rolled Throughput Yield = Ytp(A) Ytp(B) Ytp(C)

= 0.8187 × 0.6984 × 0.7280
= 0.4163 = 41.63%!
Rolled Throughput Yield (Yrt)
◼ The rolled throughput yield is the probability that a
unit of product or service is able to pass through
the entire process defect-free, given certain
amount of defect rate in each process step.

◼ It is a function of the defect rate, and hence

provides a better estimate of the amount of rework
required.

◼ Rolled throughput yield can be improved by

 having higher throughput yields at each process step
 reducing the number of process steps
Identifying Potential KPIV’s and
Prioritizing the Most Likely
(Vital Few) KPIV’s

• Fishbone Diagram
• Cause-and-Effect Matrix
• FMEA
What is a cause-and-effect diagram?
◼ It is a graphical display of potential causes of a problem. The lay-
out shows a cause and effect relationship.
◼ Also known as Ishikawa chart or fishbone diagram.
C/N/X
Material Methods
s
C C

N N
Problem/
Desired
N N Improvemen
N t
C
C C

Machinery Manpower

Why Use Fishbone Diagrams?

• Stimulates thinking during a brainstorm of potential causes
• Provides a visual display of potential causes
• Potential causes are categorized, therefore
reducing the likelihood of omitting some potential causes.
• Understands relationships between potential causes
• Tracks which potential causes have been investigated and controlled
Failure Mode and
Effects
Analysis(FMEA)
FMEA
◼ FMEA is defined as a structured procedure for identifying,
prioritizing and acting on potential failure modes.
◼ The major benefit of FMEA is that it identifies and reduces the
number of product failures that the customer will experience.

◼ FMEA is a prevention technique.

◼ The three types of FMEA are: Design FMEA, Process FMEA and
Service FMEA.
 Design – uncover problems that may result in safety hazards,
malfunctions, shortened product life or decreased customer
satisfaction. Ask: How can the product or service design fail to do
what it is supposed to do?
 Process/Service – uncover problems that may result in safety
hazards, defects in product or service production process, and
reduced process efficiency. Ask, “How can people, materials,
equipment, methods, and environment cause process failures?”

◼Keyelements involving FMEA includes timing, teamwork,

documentation and Management support.
 FMEA STANDARD FORM
PROCESS NAME: FMEA TYPE : PROCESS
PRO CESS CHAMPIO N: FOCUS :
PROCESS MEMBERS:

PROCESS FUNCTION POTENTIAL FAILURE POTENTIAL EFFECT SEV POTENTIAL CAUSES OF FAILURE OCC CURRENT CONTROLS DET. RPN RECOMMENDED ACTIONS RESP. DATE
MODE OF FAILURE

RPN = SEV x OCC x DET.

Notes: Corrective actions are needed for the following conditions:

1) RPN is greater than
2) Severity or Occurrence value is
3) Detection is or higher.
 Basic Steps to Develop
◼ Process
 Dividing the process into individual process steps should make it
easier to brainstorm failure modes.
 You can ask question: What could go wrong with the first
process? Then, the second process? and so on.
◼ Function
 State the function intended to be performed by the process.
Clarifying the function will help you focus on what might go
wrong in the process’ performance of that function.
◼ Potential Failure Modes
 The potential failure mode is the way in which a part or
transaction could potentially fail to meet customer expectations.
 Potential failure modes should be described in physical or
technical terms. Do not use terms such as “too low” or “not fast
enough”. Do not describe them in terms of the symptom
noticeable by the customer.
 Basic Steps to Develop

◼ Potential Effects of Failure

 Potential effects of the failure answer the question:
If this failure were to occur, how would it effect my customer?
 The potential effects of the failure should always be stated in
terms of how your customer will experience the particular failure.

◼ Severity
 Severity measures the impact of the effect on your customer.
 It is rated on a pre-discussed scale.
 Highest number means high impact.
 1 means low impact
 Descriptive Statistics — An Overview
Descriptive Statistics

Graphical Presentations Numerical Measures

Charts Tables Location Dispersion Shape

Dot Plot Frequency Distribution Mean Range Skewness

Box Plot Median Standard Deviation Kurtosis

Histogram Mode Variance

Stem & Leaf Diagram Quartiles Interquartile Range

Bar Chart

Trend Chart
 Determining your Process Capability

References: Minitab Help Topics

MPCpS by Mario Perez-Wilson
 Process Capability
Process Capability is the inherent reproducibility of a
process’s output. It measures how well the process is
currently behaving with respect to the output specifications.
It refers to the uniformity of the process.

Capability is often thought of in terms of the proportion of

output that will be within product specification tolerances.
The frequency of defectives produced may be measured in

a) percentage (%)
b) parts per million (ppm)
c) parts per billion (ppb)
Process Capability

Uses :

◼ indicate the consistency of the process

output
◼ indicate the degree to which the output
meets specifications
◼ be used for comparison with another
process or competitor
 Process Capability Indices

◼ Two measures of process capability

◼ Process Potential
➢ Cp

◼ Process Performance
➢ Cpu
➢ Cpl
➢ Cpk
 Process Potential

The Cp index assesses whether the

natural tolerance (6) of a process is
within the specification limits.

Engineering Tolerance
Cp =
Natural Tolerance
USL − LSL
=
6
 Process Performance
The Cpk index relates the scaled distance
between the process mean and the nearest
specification limit.

USL − 
C pu =
3
 − LSL
C pl =
3

Cpk = Minimum C ,C 
pu pl
Within vs Overall Capability

Within Capability (previously called short-term

capability) shows the inherent variability of a
machine/process operating within a brief period of time.

Overall Capability (previously called long-term

capability) shows the variability of a machine/process
operating over a period of time. It includes sources of
variation in addition to the short-term variability.
Within vs Overall Capability

Within Overall

Sample Size 30 – 50 units  100 units

Number of Lots single lot several lots
Period of Time hours or days weeks or months
Number of Operators single operator different operators
Process Potential Cp Pp
Process Performance Cpk Ppk
Within vs Overall Capability

Within Capability Overall Capability

USL − LSL USL − LSL
Cp = Pp =
6 Within 6 Overall
LSL −  LSL − 
C pl = Ppl =
3 Within 3Overall
USL −  USL − 
C pu = Ppu =
3 Within 3 Overall
NSL −  NSL − 
C pk = Ppk =
3 Within 3 Overall
The key difference between the two sets of indices lies in the
estimates for Within and Overall .
 DE F INE ME A S U R E A N A LY Z E IMPR OVE C ONTR OL

A NALYZE
1. Organize experimentation schedule to determine which of the potential
KPIV’s are the real root causes.
2. Determine the sample size.
3. Analyze the data through the use of appropriate statistical techniques.
4. Implement the best settings as verified from the statistical analysis.
5. Follow-up progress of improvement plans concluded from the process
map.
 DEFINE MEASURE ANALYZE IMPROVE CONTROL

Tools/Techniques most commonly used:

➢ Scatterplot/Correlation
➢ Multi-vari Chart
➢ Confidence Intervals
➢ Sample Size Calculation
➢ One-sample tests
➢ Two-sample tests
➢ ANOVA
➢ Contingency Table
➢ Linear Regression
➢ Non-Parametric Tests
 Multi Vari chart
The Multi-Vari Chart shows variability due to several sources.
It is very useful for comparison of within-unit variation to other
families of variation.
Variation
Data without dispersion information
is false data.

- Kaoru Ishikawa
 Sources of Variation

Variation
Process Variation Measurement Variation
within unit within instrument
between units between instruments
between lots between calibrations
between operators between operators
between machines across time
between set-ups
across time
 Three Families of Variation

Positional variation
- Manifests differing locations
simultaneously undergoing
same process

Examples:
- Temperature variations
inside a thermal chamber
1 2 3 4 5 6 7 8 9
- Cavity-to-cavity
Positional variation appears as the
variations in a plastic height of the vertical lines. Top of lines
indicate maximum readings, while bottoms
injection mold correspond to minimum values.
 Three Families of Variation

Cyclical variation
-Occurs among sequential
repetitions of a process over a
fairly short time
Examples:
-Variations between consecutive
batches of a process
-Differences from lot to lot of raw 1 2 3 4 5 6 7 8 9

materials Cyclical variation is shown by the lines

connecting clusters of vertical lines. The
-Changes between consecutive lines intersect the vertical lines at the
respective means for those bars.
shots of a plastics injection mold
What is a Scatter Diagram
◼ Scatter diagrams are graphical tools that attempt
to depict the influence that one variable has on
another.
◼ A plot of paired observation. Shows 2
characteristics for each sample unit, with one axis
for the value of each characteristic:
X-Axis : KPIV, KPOV
Y-Axis : KPOV, KPOV
◼ A Scatter diagram is composed of a horizontal
axis containing the measured values of one
variable and a vertical axis representing the
measurements of the other variable.
 What Information must we look for
in Scatter Diagram

◼ A Scatter diagram gives us two types of

information. Visually, we can look for
patterns that indicate the two variables are
related. Then, if they are related, we can
see what kind of line, or estimating
equations, describes this relationship.
Scatter Diagram- Relationships
 Coefficient of Correlation
The Coefficient of Correlation (R), also known as
Pearson’s Product Moment, measures the strength of
relationship between the response and the predictor.
Sampled Correlation Coefficient
The sampled correlation coefficient can be written as:

S XY
R =
S XX S YY Sample Covariance
(“+” or “-”)
where :

 n = number of x,y data points

n
S XY = xi – x yi – y
i=1
sx = sampled std dev of x
sy = sampled std dev of y

n
2
S XX = xi – x = (n – 1) s 2x
i=1


n
2
S YY = yi – y = (n – 1) s 2y
i=1
 Properties of R

–1  R  +1
It is a measure of the degree to which a linear
relationship exists between x and y.
R=1 Implies a perfect linear relationship
exists.
R = +1: perfect “positive” correlation
R = -1: perfect “negative” correlation
R= 0 Implies no linear relationship exists,
but does NOT imply no relationship at
all.
Coefficient of Correlation

R=0 implies no linear relationship.

R=0 does not imply no relationship!
What is Hypothesis Testing?
◼ The procedure that summarizes data so
you can detect differences among groups.
It used to make comparison between two
or more groups.
Why use hypothesis test?
◼ to detect differences that may be
important to the business
◼ If minor differences in averages is due to
random variation or if it reflects a true
difference.
When to use a hypothesis test?
◼ When you need to compare two or more
groups
 Average
 Variability
 Proportion

◼ When you are not sure if true differences

exist.
Basic Concept of Hypothesis Testing
State the question Will Generator A
deliver 85Kw?
Translate into statistical
hypothesis (Ho and Ha) Ho: A = 85
Ha: A  85

Gather
evidence 1. Decide test statistic to use
(sampling) 2. Calculate sample size
Ho Ha 3. Collect sample data

DECIDE:
What does the evidence 1. Extract sampling distribution
suggest? 2. Set up Acceptance & Rejection
Reject Ho? zones
Or 3. Use the computed STATISTIC
to decide accept or reject the
Not Reject Ho? Ho

State practical State conclusions

implications
 Hypothesis Tests for Mean ()
CONTINUOUS
OR
MEASUREABLE DATA

TESTS FOR
MEANS

ONE TWO THREE OR MORE

POPULATION POPULATIONS POPULATIONS

ONE- ONE- SAMPLES SAMPLES PLOT OF

ANALYSIS ANALYSIS
NO PLOT OF
SAMPLE SAMPLE RELATED NOT RELATED EFFECTS
OF MEANS OFEFFECTS
VARIANCE
Z-TEST T-TEST

PAIRED TWO-SAMPLE TUKEY’S

T-TEST T-TEST QUICK TEST

92
 Hypothesis Tests for Variance (2)
TESTS FOR
STANDARD DEVIATIONS

ONE TWO THREE OR MORE

POPULATION POPULATIONS POPULATIONS

CHI-SQUARE TEST F-TEST FOR THE Test for Equal

FOR ONE STD DEV RATIO OF TWO STD DEV
Variances

BARTLETT’S LEVENE’S
TEST TEST
Hypothesis Tests for Proportion ()

ATTRIBUTES

PROPORTION
DATA

ONE TWO THREE OR MORE

POPULATION POPULATIONS POPULATIONS

Z-TEST Z-TEST FOR

THE DIFFERENCE
Contingency
FOR ONE
PROPORTION OF TWO Table
PROPORTIONS
ANOVA (Analysis of Variance)
➢ Statistical test that uses variances to
compare multiple averages
simultaneously
➢ Instead of comparing pair wise
averages, it compares the variance
between groups to the variance within
group.
Assumptions for ANOVA
◼ The samples are representative of the
population or process
◼ The process is stable
◼ Only common causes of variation are at work on
the process
◼ No shift or trend over time
◼ The variance of each group is same
◼ Can be verified with the F-test
◼ Violations of these assumptions can cause
incorrect conclusions in the ANOVA analysis
◼ It is also assumed that the underlying distribution
of each group is Normal
 Basic Concept of ANOVA
Variation
Inputs between
subgroups
Process 1 1
Y
Inputs 1

Process 2 2 1= 2= 3?? Total

Y Variation
Inputs 2

Process 3 3 Y
3
Variation
What are the within
subgroups
2 hypotheses?
 Overview of Regression
Correlation vs Regression
⚫ Regression Analysis
➢ Develops a prediction model, i.e. an equation that relates
the response to the predictor(s).
➢ Used when it is clear which variable is a predictor and
which is a response.
⚫ Correlation Analysis
➢ Assesses the strength of relationship between 2 variables
through correlation coefficient R. R measures how strong
the linear relationship is between the 2 variables.
➢ Used when it is not clear which variable is a predictor and
which is a response.
⚫ Both methods benefit from use of scatter plots.
 Overview of Regression
Correlation vs Regression
⚫ Regression and correlation are closely related and
often confused together:
Computes R to quantify strength of the
relationship between 2 variables
➢ Correlation
Also proceeds to establish equation between
Actually regression the variables so that study is of practical value
analysis.
Establishes equation between 1 output variable
and 1 (or more) input variables
➢ Regression
However, also computes R2 to determine how
Actually some form well the model predicts the response
of correlation
analysis.
 Francis Galton (1822-1911)

• Derived from the heredity studies performed by Sir Francis Galton

• He compared the heights of sons to the heights of their fathers.

Fathers sons
fathers
Sons
Galton showed that the height of the sons of tall fathers regressed
towards the mean height of the population through several
successive generations. In other words, sons of unusually tall
fathers tend to be shorter than their fathers and sons of unusually
short fathers tend to be taller than their fathers.
 Uses of Regression

• Develops a model relating a response

• Allows prediction of responses at levels
other than where the data was collected
• Quantifies the strength of the model
• Identifies outliers
 Simple Linear Regression

The simple linear regression (SLR) model

Y = 0 + 1 X + ε,

where X. is the predictor (independent) variable

Y. is the response (dependent) variable
0 is the intercept
1 is the slope
ε is the error term which is NID(0, 2)
Unfortunately, 0 and 1 are population parameters that are not known hence,
the regression line is also not known.
 Simple Linear Regression
We use ŷ = b0 + b1x to approximate the true regression
line Y = 0 + 1 X,

where ŷ is the expected value of Y

x is the predictor (independent) variable
b0 is the estimate for 0
b1 is the estimate for 1

In addition, ei = yi – ŷi is the ith residual that estimates εi.

Common Regression Mistakes

⚫ Excessive focus on the Coefficient of Correlation

⚫ Attributing cause and effect
⚫ Extrapolating the relationship beyond the data
range
⚫ Masking real correlations or creating false
correlations
⚫ Data collected over too narrow a range
D E F I NE MEASURE A NA LY Z E IMPROVE C ONTR OL
D E F I NE MEASURE A NA LY Z E IMPROVE C ONTR OL
 What is a Designed Experiment?

◼ The method of purposefully making

changes to the KPIV’s (or factors) in order
to observe corresponding changes in the
KPOV’s (or responses).
KPIV’s
x1
x2
x3 KPOV’s
Process
.
.
.
xk
Y = f(x1, x2, x3,..., xk)
 General Model of a Process

(C) Controlled (constant) variables

Variables designated to held Variables measured
Constant during experiments. to evaluate process
Ex.: SOP’s and/or product
Performance.

(x) (Y)
Key Key
Process Process Process
Input Output
Varaibles Variables

Variables that we intend

to vary in experiments.
(N) Uncontrolled (noise) Variables
Variables that cannot be held constant during
experiment or during actual production.
 Example 1

Pasta Preparation
Amount of Water
Saltiness of pasta
Cooking time of pasta
Brand of pasta Cooking
Amount of Oil
Spaghetti
Amount of Salt
Tomato sauce for 1/2 kilo Wow!
Ground meat of pasta Delicious
Amount of Cheese
spaghetti!
 Factor and Factor Levels
Pasta Preparation
Amount of water
> 4 L vs. 6 L
Amount of Salt How many factors were
> 2 tbsp vs. 4 tbsps. identified?
Cooking time of pasta How many levels for each
> 2 mins. vs. 5 mins factor?
Brand of pasta
> Brand A vs. Brand B vs. Brand C
Amount of Oil
> 1 tbsp. vs. 2 tbsps. Will the combined effect of
Amount of Salt: 0 vs. 1 tsp. vs. 2 tsps. salt and tomato sauce
influence the taste of
Tomato sauce: Brand A vs. Brand B vs.
Brand C spaghetti?
Ground meat: ground beef vs. corned beef

Amount of Cheese: 20 grams vs. 40 grams

Why use Experimental Design
◼ Process development
◼ Reduce costs (Optimum settings to reduce
costs)
◼ Shorten product development and production
time
◼ Most effective method for identifying the
KPIV’s
◼ Most efficient way to gain an understanding
of the relationship between the KPIV’s and
KPOV’s
◼ Method for building a mathematical model
relating y to x’s
◼ A scientific method for setting tolerances
Distinct Features of a DOE
◼Plan, study, and run experiments with
all possible factor settings at the same
time
◼See the individual effect of factors as
well as its combined effects to the
response variable
◼Conduct experimental runs with
randomization and replication to minimize
if not eliminate noise variables.
Factorial Experiments

◼ When several factors are potentially

important, the best strategy of
experimentation is to design a factorial
experiment
◼ A factorial experiment is an experiment
in which factors are varied together at
the same time
◼ Factorial experiments are the only way
to investigate interaction effects
 2k Full Factorial
◼ 2k represents k ➢ Example:
factors with 2 levels Low High
each ➢ Time : 4 mins. vs. 12 mins.
Temp: 16 C vs. 32 C
◼ A 22 full factorial ➢

experimental design
consists of 2 factors
with 2 levels each that
will generate ||
2x2 = 4 runs

Coded
Values
 2k Full Factorial Design
2-level Design
Number of Number of
Factors Runs A AB AB C
1 2 _
_ _ _ _ _
2 4 + _ _ _
+ +
3 8 _ _ _
+ +
4 16 _
5 32 + + + +
_ _ +
6 64
7 128 + _ +
_ + +
8 256
9 512 + + +
10 1024
 The Three Approaches to DOE

➢ Classical DOE
- Based on the work of Ronald Fisher who applied DOE in
agriculture
- This is the full factorial and the most frequently used - the
fractional factorial
➢ Taguchi DOE
- Genichi Taguchi of Japan modified the classical approach,
simplifying it with his orthogonal arrays
➢ Shainin DOE
- Uses 10 distinct techniques invented or perfected by Dorian
Shainin each suited for a particular problem or application
- Easily became the world’s foremost quality problem solver
- However, Shainin techniques have not received wide
publicity because companies that used these techniques
and attained excellent results were unwilling to share them
with others.
DEFINE ME A S UR E A NA LY ZE IMPROVE CONTROL
DE F INE ME A S URE A N A LY Z E IMPROVE C ONTROL

Discussed in Measure Phase

What is SPC?

Statistical Process Control (SPC) is a

methodology which uses the basic
graphical and statistical tools to
analyze, control, and reduce variability
within a process.
Application of SPC

▪Can be applied to any type of work

where the key measurements exhibit
variation
▪Service industry has lagged behind
manufacturing in its application of
SPC
Bob Galvin, former president and CEO of Motorola, once said, “I wish
we would have placed as much emphasis on Six Sigma in the service
sector early on as we did in manufacturing. We would have saved an
additional $5 billion.”
Application of SPC
▪In manufacturing, quality control inspects the final product to
screen out items not meeting specifications.
▪In administrative situations, work is often checked and rechecked
in efforts to catch errors.
Shewhart Control Charts - Overview
Poka-Yoke

◼ Poka-yoke(POH-kah YOH-kay) is
Japanese for mistake-proofing. Poka
means inadvertent mistake, while yoke
means prevent.
◼ A poka-yoke device is any mechanism
that either prevents a mistake from
being made, or makes the mistake
obvious at a glance.
Shigeo Shingo
◼ One of the industrial engineers at Toyota who
has been credited with creating and formalizing
Zero Quality Control (ZQC), approach to quality
management that relies heavily on the use of
poka-yoke devices.
◼ Has written 14 major books and hundreds of
important papers on manufacturing.
◼ The Shingo Prize is awarded for excellence in
manufacturing as a tribute to Dr. Shingo and his
lifelong work.
◼ He died in 1990.
Mistake and Mistake-Proofing

◼ Mistake is the failure to correctly

perform a required action, or the
misinterpretation of information
essential to the correct execution of an
action
◼ Mistake proofing is the use of process,
or design features to prevent
manufacture of non-conforming product.
Essence of Mistake-proofing

◼ Geared toward finding and correcting

problems as close to the source as
possible because finding and correcting
defects caused by errors costs more
and more as a product or item flows
through a process.
◼ Design both product and process so
that mistakes are either impossible to
make, or at least easy to detect.
Benefits of Mistake-Proofing

◼ Sustain improvements made

◼ You can make more money
◼ Save more money
◼ Evidence of effectiveness
Six Mistake-Proofing Principles

1. Elimination seeks to eliminate the

possibility of error by redesigning the
product or process so that the task or
part is no longer necessary.

Example: product simplification or part

consolidation that avoids a part defect or
assembly error in the first place.
Six Mistake-Proofing Principles

2. Replacement substitutes a more

reliable process to improve
consistency.

Examples: use of robotics or automation

that prevents a manual assembly error,
automatic dispensers or applicators to
insure the correct amount of a material
such as an adhesive is applied
Six Mistake-Proofing Principles
3. Prevention engineers the product or
process so that it is impossible to make a
mistake at all.

Examples: Limit switches to assure a part

correctly placed or fixtured before process is
performed; part features that only allow
assembly the correct way, unique connectors to
avoid misconnecting wire harnesses or cables,
part symmetry that avoids incorrect insertion.
Six Mistake-Proofing Principles
4. Facilitation employs techniques and
combining steps to make work easier to
perform.
Examples: visual controls including color
coding, marking or labeling parts to facilitate
correct assembly; exaggerated asymmetry
to facilitate correct orientation of parts; a
staging tray that provides a visual control
that all parts were assembled, locating
features on parts.
Six Mistake-Proofing Principles

5. Detection involves identifying an error

before further processing occurs so
that the user can quickly correct the
problem.

Examples: sensors in the production

process to identify when parts are
incorrectly assembled; built-in self-test
(BIST) capabilities in products.
Six Mistake-Proofing Principles

6. Mitigation seeks to minimize the

effects of errors.

Examples: fuses to prevent overloading

circuits resulting from shots; products
designed with low-cost, simple rework
procedures when an error is discovered;
extra design margin or redundancy in
products to compensate for the effects of
errors
 Some Examples
5

5.) The dryer stops operating when the door is

opened, which prevents injuries.

6.) For some file cabinets, opening one

drawer locks all the rest, reducing the
chance of the file cabinet tipping.

Taken from www.campbell.berry.edu/pokayoke

 Some Examples

7.) Circuit breakers prevent electrical

overloads and the fires that result. When
the load becomes too great, the circuit is
broken.

8.) This iron turns off automatically when it is left

unattended or when it is returned to its holder.

Taken from www.campbell.berry.edu/pokayoke

The Process Control Plan

The Process Control Plan assures that the

good improvements established by your
project will not deteriorate once the
improved process is returned to the
process owners.
Purpose of a Control Plan

The intent of a process control plan is to

control the product characteristics and the
associated process variables to ensure
capability (around the identified target or
nominal) and stability of the product over
time.
Uses of a Control Plan

 Ensure that our processes operate consistently on

target with minimum variation
 Minimize process tampering (over-adjustment)
 Assure that the process improvements that have
been identified and implemented become
institutionalized. ISO can assist here.
 Provide for adequate training in all procedures
 Include required maintenance schedules
Components of a Control Plan
Control Plan No.: Revision No.: Date (Rev):
Product No.: Customer Approval:
Team: , , ... Date:

Machine/Tool
References
◼ Rath and Strong,Six Sigma Pocket Guide, AON Consulting Worldwide,
2001
◼ Subburaj Ramasamy, Total Quality Management, Macgraw-hill International
Ed., 2010