SIX SIGMA MANAGEMENT

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 Unit-4
• DMAIC process: Define, Measure, Analyze, Improve, Control
phases

Case study on DMAIC

• Design for Six Sigma (DFSS):Define, Measure, Analyze, Design,

Verify phases (DMADV)

Case study on DFSS

 DMAIC
DMAIC Methodology

Define --> Measure --> Analyze --> Improve --> Control

– Define: Define the problem or project goal that needs to be addressed

– Measure: Measure the problem and process from which it was produced
– Analyze: Analyze data and process to determine root cause of defects and
opportunities
– Improve: Improve the process by finding solutions to fix, diminish, and
prevent future problems
– Control: Implement, control, and sustain the improvement solutions to keep
the process on the new course

DMAIC: a data-driven quality strategy for improving processes.

This methodology is used to improve an existing business process
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 Introduction
• Sigma (s) is the Greek letter used by statisticians to denote the
standard deviation for a set of data

• The standard deviation provides an estimate of the variation in a

set of measured data

• A stated sigma level, such as Six Sigma, is used to describe how

well the process variation meets the customer’s requirements

• The accepted error rate for Six Sigma processes is 3.4 defects per
million opportunities (DPMO)

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 Concept Evolution
• When Motorola was developing the quality system that would
become Six Sigma, an engineer named Bill Smith, considered the
father of Six Sigma, noticed external failure rates were not well
predicted by internal estimates. Instead, external defect rates
seemed to be consistently higher than expected.

• Smith reasoned that, a long-term shift of 1.5 sigma in the process

mean would explain the difference. In this way, Motorola defined
the Six Sigma process as one which will achieve a long-term error
rate of 3.4 DPMO.
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 Concept Evolution
• These concepts have been successfully applied across a broad
range of processes, organizations, and business sectors, with low
and high volume, millions or billions in revenue, and even in non
profit organizations

• Any process can experience an error, or defect, from a customer’s

point of view

• The error may be related to the quality, timeliness, or cost of the

product or service

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 DMAIC
The DMAIC problem-solving methodology is typically
used for Six Sigma projects. This methodology is designed
to:
– Define the problem

– Measure the extent of the problem

– Analyze the sources of variation

– Improve the process

– Control the process for sustained improvement

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 Define Stage
The key objectives within the define stage are:
– Project Definition: to articulate the project’s scope, goal, and
objectives; its team members and sponsors, its schedule, and
its deliverables

– Top-Level Process Definition: to define its stakeholders, its

inputs and outputs, and its broad functions

– Team Formation: to assemble a highly capable team and focus

their skills on a common understanding of the issues and
benefits of the proposed project plans
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 Define Stage
Recommended tools:
– Matrix diagrams and prioritization matrices are used to select
projects that are aligned with the company goals and objectives

– Work breakdown structure is used to define a manageable project

scope

– Pareto diagrams help identify significant opportunities

– Process maps provide a visual means to define the process and

identify stakeholders

– SIPOC (Supplier, Input, Process, Output, Customer) identifies the

process activities, key inputs and outputs, and stakeholders
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 Measure Stage
The objectives of the measure stage include:
– Process definition at a detailed level to understand the decision
points and detailed functionality within the process

– Metric definition to verify a reliable means of process

estimation

– Process baseline estimation to clarify the starting point of the

project

– Measurement system analysis to quantify the errors associated

with the metric
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 Measure Stage
Recommended tools:
– Histograms and stem and leaf plots to graphically display the
process output relative to the requirements
– Confidence intervals on mean and confidence intervals on
proportion for estimating process performance when the
process is not in statistical control
– Linearity analysis and regression analysis to understand the
measurement system error as a function of measurement size
– Design of experiments for understanding the components of
measurement system error
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 Analyze Stage
The objectives of the analyze stage include:
– Analysis of the value stream, the necessary steps that produce
value for the customer

– Analysis of the sources of variation

– Determination of the process drivers, the little ys that correlate

to the stakeholder requirements and significantly influence the
process output

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 Analyze Stage
Recommended tools:
– Flowcharts and process maps to discover process complexities
which contribute to variation or longer cycle times

– PERT analysis to identify the critical path for cycle time

reduction

– Box-whisker chart to graphically compare the location and

variation of various processes or categories of products or
services

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 Improve Stage
The objectives of the improve stage include:
– New process operating conditions are determined

– Benefits associated with the proposed solution are estimated

by the team and approved by the sponsor

– Failure modes for the new process are investigated and

addressed

– Process improvement is implemented and verified

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 Improve Stage
Recommended tools:
– Activity network diagrams and PERT analysis to verify the
reduction in process critical path cycle time

– Matrix diagrams and prioritization matrices to ensure that

process solutions are aligned with customer needs

– Cause and effect diagram to generate a list of potential failure

modes that should be addressed in the solution

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 Control Stage
The objectives of the control stage include:
– The new methods must become standardized in practice

– The predicted impact of the improvements, the project

deliverables, must be continually verified, especially the
financial return

– Lessons learned should be documented

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 Control Stage
Recommended tools:
– Flowcharts and process maps to define the process level
activities necessary

– SPC control charts, including C, Np, P, U, Individual-X, X-

Bar, and EWMA charts, and process capability index to verify
the effects of the improvement

– Goodness of fit tests and probability plotting to verify the

statistical distributions assumed in the various statistical tools

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