Professional Documents
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EXCELLENCE IN QUALITY
AND
BUSINESS COMPETITIVENESS
Let’s consider the quality problem: Let’s consider the quality problem:
SL
Target
SU
x
SL
. . ... .
Target
SU
x
(m, s)
Lower Upper Lower Upper
specification limit specification limit specification limit specification limit
Let’s consider the quality problem: Common Statistical Meaning of Six Sigma
_ x
SL SU
Sigma: σ Sigma: σ
• Symbol for standard deviation
• Sigma: amount of variation
• Measure of dispersion, variation, or spread
• “Aim to increase the Sigma level of a
process…”
• 6 σ is the spread about the mean m that
includes 99.73% of a normal population
• Six Sigma: ???
CTQ y with Target μ; Upper Spec Limit SU
“Sigma Level” in Six Sigma
3 Sigma Process
Generalization
3 Sigma Process 6 Sigma Process
66 807 ppm 0.002 ppm
6 Sigma Process
After 1.5 Sigma Shift: 3.4 ppm “dpmo”
1,000
100
10
Airline
1 Safety Rate
* 1 2 3 4 5 6 7
Sigma Level
What is Six Sigma?
• … a disciplined method of using extremely
rigorous data gathering and statistical
Six Sigma from the analysis to pinpoint sources of errors and
ways of eliminating them.
Management Perspective
-- M. Harry & R. Schroeder (2000)Six Sigma: The
Breakthrough Management Strategy Revolutionizing the
World’s Top Corporations, New York, Doubleday
increasing customer satisfaction and Why "Sigma"? The word is a statistical term that measures how far a
given process deviates from perfection.
improving processes, with a focus on
The central idea behind Six Sigma is that if you can measure how
financially measurable results. 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.
Six Sigma has changed the DNA of GE — it is now the way we work
--- MINITAB — in everything we do and in every product we design.
From: http://www.ge.com/sixsigma/makingcustomers.html
Six Sigma – Defined by GE Pillars of Six Sigma
What is Six Sigma?
Components --
Six Sigma is a highly disciplined process that helps us focus on
developing and delivering near-perfect products and services. • Statistical measurement of quality level
Why "Sigma"? The word is a statistical term that measures how far a • Management strategy
given process deviates from perfection.
The central idea behind Six Sigma is that if you can measure how
• Quality culture: CTQ
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. Goal --
Six Sigma has changed the DNA of GE — it is now the way we work • Customer satisfaction
— in everything we do and in every product we design.
• Company profit
!ACEENSWY Cpk
Cpk
YES WE CAN!
Steepestascent
Steepest ascent ???
SS aligns analytical tools for
• Six Sigma: How is it related to Cpk ?
• Describes existing
process behavior
• Monitors process
behavior
• Aims to maintain status
quo
• No process intervention
• Cannot judge if process
is performing at its best
• No process Improvement
objectives
Quality tools organized into a
INPUT OUTPUT Six Sigma framework:
x1
• Define
P
x2 y
• Measure
• Analyze
Output can be improved • Identify
through a change of input
• Control
MAIC MAIC
• MEASURE the frequency of defects • IMPROVE the process
1. Select critical-to-quality characteristics 7. Screen potential causes
2. Define performance standards 8. Discover variable relationship
3. Validate measurement systems 9. Establish operating tolerances
• ANALYZE when and where defects occur • CONTROL the process at improved level
4. Establish product capability 10. Validate measurement system
5. Define performance objectives 11. Determine process capability
6. Identify variation sources 12. Implement process controls
Six Sigma Problem-Solving Approach Six Sigma Problem-Solving Approach
• Lean: Efficiency
Examples–
• Before: Not enough information … DOE
• Now: Too much information … Data Mining
Republic of Korea (2008):
55% of gross domestic products are from the service sector • Before: Customers take the service we provide
• Now: We provide the service that customers
want
Applications to Manufacturing and Service Sectors Applications to Manufacturing and Service Sectors
Manufacturing Service • Each project should be examined for chances of success by the
following criteria
• Number of training hours Is there a market opportunity for better customer satisfaction?
• Number of projects done Do we effectively measure our performance and customer satisfaction?
In launching Lean Six Sigma, they understand how to work excellent Six Sigma is and how GE
with Six Sigma, not just why had saved $2 billion a year
what are the ways to succeed • Engage experts with solid • Use consultants with flashy
background presentations
and what are ways that may • Customize training with nature of • Use off-the-shelf material with other
company operations organization’s “success stories”
lead to failures? • Train key company personnel • Select those who can spare the time
• Train personnel who can • Train to meet “people development”
supervise change quota
business campaign • Demand and communicate only • Busy only with activities, such as
• Emphasize cost reduction arising • Focus only on cost reduction itself verified results training, projects and PR
from quality improvement
No instant success… Lean Six Sigma Customer Impact
“… to achieve Six Sigma, an organization • When you start:
must endure extensive psychological – Customers feel good that you’re working to
improve … Customers are waiting to see the
changes. We have found that it takes
results
between three and five years for Six Sigma to • Soon:
become entrenched in even the most – Customers’ biggest issues are attacked and fixed
by Black Belts… Customers take notice
progressive organizations.”
• Future:
– Black Belts work to solve problems in customers’
Harry, M and Schroeder, R, Six Sigma - The Breakthrough factories as part of a “Full Service” supplier
Strategy Revolutionizing the World’s Top Corporations, New
York, NY, Doubleday, 2000, – Lean Six Sigma offers another clear differentiator
Vitamins
Furthermore… A systemic view of
Carbohydrates Proteins
LSS not meant to be applied
A “LSS Company”?
in isolation
• To some extent LSS owes its vitality to the absence of certification
or accreditation schemes.
Lean Six Sigma knowledge
• Once there is such a certification scheme - like ISO9000, focus will
and applications
be more on the certification process rather than the application of
the tools themselves after attainment of certification
• Certification renders the sense of “having got there” (at least for the
next three years till the auditors come again!), of reaching the
finishing point, rather than what it should be – of starting the
improvement journey!
• One can already see such an effect in BB or MBB certification –
Hardware Capabilities: Software Capabilities:
Manufacturing capabilities Business Plans & Operations; there is more concern about personal achievements (and having
or products Expertise and Know-how an additional item in one’s résumé for the job market) than about
organizational benefits that could be realized with the acquisition of
professional expertise