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1.1What is Six Sigma?
) is a letter in the Greek alphabet that has becomethe statistical
symbol and metric of process variation. Thesigma scale of measure is perfectly
partsper-million defectives. .correlated to such characteristics as defects-perunit.
. Six is the number of sigma measured in a process.andthe probability of a failure.
4 outputs out of one .when the variation around the target issuch that only 3.
million are defects underthe assumption that the process average may drift .
5 standard deviations.S ix Sigma may be defined in .over thelong term by as much as 1.
Tomkins (1997)defin es Six Sigma to be “ .several ways.
.a program aimed at the near-elimination of defects from every product.
” Harry (1998) defines Six Sigma to be “ .process and transac-tion.
a strategic ini-tiative to boost profitability. increase market share andimprove .
customer satisfaction through statistical tools thatcan lead to breakthroug .
h quantum gains in quality. ” Six Sigma was launched by Motorola in .
It was theresult of a series of changes in the quality area starting in thelate .1987.
with ambitious ten-fold improvemen t drives.1970s. Thetop-level managemen t along with .
CEO Robert Galvin devel-oped a concept called Six Sigma. After some internal .
formulated the goal of “ . in 1987. Galvin.pilotimplem entations.
achieving Six-Sigma capability by 1992 ” in a memo to allMotorola .
employees (Bhote. The results in terms of reduction in process variation . 1989).
were ontrack and cost savingstotall ed US$13 billion and improvemen t in labor .
productivity achieved 204% increase over the period 1987 – .
In the wake of successes at Motorola.1997(Losian owycz. some leading . 1999).
and Texas Instrumentsl aunched Six Sigma . DEC.elec-tronic companies such as IBM.
However. it was 1 not until 1995 when GE and .initiatives in early 1990s.
Allied Signal launched Six Sigmaas strategic initiatives that a rapid disseminatio n took place .
innonelectronic industries all over the world (Hendricks andKelbaug h. 1998). In .
the Samsung and LG Groupsin Korea began to introduce Six Sigma .early 1997.
within their compa-nies. The results were amazingly good in those companies. .
which is a company under the Sam-sung Group.Forinstance. reported . Samsung SDI.
that the cost savings by Six Sigma pro-jects totalled US$150 million (Samsung .
the number of large companies applying . At thepresent time.SDI. 2000a).
with a strong vertical deployment .SixSigma in Korea is growing exponentiall y.
As a result of consulting .into many small.and mediumsize enterprisesa s well.
the author (Park et. 1999) believes . al.experiences with Six Sigma inKorea..
that Six Sigma isa “ new strategic paradigm of managemen t innovation .
which implies three .for company survival in this 21st century.
managemen t strategy and quality cul-ture.things:statis tical measureme nt. .
services and process-es really are .” It tells us how good our products.
through statistical measureme nt of quality level. Itis a new managemen t strategy .
under leadership of toplevelmanage ment to create quality innovation
and total customersat isfaction. It is also a quality culture. It provides a means of
doing things right the first time and to work smarter by usingdata information. It also
provides an atmosphere for solvingmany CTQ (critical-toquality) problems .
CTQ could be a critical process/pro duct result characteristi .through team efforts.
c toquality. The former is termed as . or a critical reason to quality characteristi c.
1. and the latter CTQx.CTQy.2Why is Six Sigma Fascinatin g? .
There are several .Six Sigma has become very popular throughout the wholeworld.
it isregarded as a fresh quality managemen .reasons for this popularity. First.
TQM and others.t strategy which canreplace TQC. we can view thedevelop . In a sense.
ment process of Six Sigma as shown in Figure 1.1. 2 Six Sigma for Quality and .
which were not quite successful in imple- .Productivity Promotion Many companies.
are eager to .menting previous managemen t strategies such as TQC andTQM.
1.introduce Six Sigma. Development process of Six Sigma in quality management . Figure 1.
scientific.Six Sigma is viewed as a systematic. statisticalan d smarter (4S) approach .
for managemen t innovation whichis quite suitable for use in a knowledge- .
The essence of Six Sigma is the integration of four ele- .based informations ociety.
process.ments (customer. manpower and strategy) to provideman agement .
Figure 1.2.2.innovation as shown in Figure 1. Essence of Six Sigma Six Sigma provides a .
scientific and statistical basis for quali-ty assessment for all processes .
The Six Sigma method allows us to .through measureme nt of qualitylevels .
and tells how good a process is.draw comparisons among all processes. Throughthis .
information. top-level managemen t learns what path to follow to achieve process .
Second.innovation and customer satisfaction. Six Sigma provides efficient .
manpower cultivationa nd utilization. It employs a “ belt system ” .
in which the levelsof mastery are classified as green belt. master blackbelt . black belt.
and champion. As a person in a company obtains certain .
CustomerProcessMa npowerStrategyMan agementinnovationS ystematic andScientific Approach Six Sigma Q C S Q C T Q M Six Sigma TQCISO 9000SeriesScientific .
management toolssuch as SPC. TPM.QE and TCS Six Sigma Overview 3 .
he acquires a belt. Usually.training. a black belt is the leaderof a project team and .
several green belts work together for theproject team.Third. there are many .
success stories of Six Sigma appli-cation in well known world-class companies. .
Six Sigma was pioneered by Motorola and launchedas .As mentionede arlier.
an exponentiall . Since then. and particular-ly from 1995.a strategic initiative in 1987.
.y growing number of presti-gious global firms have launched a Six Sigma program.
Ithas been noted that many globally leading companies runSix Sigma .
Allied . and it has been wellknown that Motorola. GE.programs (see Figure 3).
and Philips .Signal. Nokia. TexasInstru ments. IBM. Kodak. DEC. Sony.
the .Electronicsa mong others have been quite successful in Six Sigma. InKorea.
Hyundai groups and Korea HeavyIndus tries & Constructio n Company .Samsung. LG.
have been quite successful with Six Sigma. Six Sigma provides flexibility in .Lastl y.
which are: • Change: Changing society .the new millenniumo f 3Cs.
• Customer: Power is shifted to customer and customerde .
mand is high • Competition: Competition in quality and productivityT .
and the speed of .he pace of change during the last decade has been unprecedented.
the . Most notably.change in this new millennium is per-haps faster than ever before.
The produceroriented industri-al .power has shift-ed from producer to customer.
society is over. and the customeroriented information soci-ety has arrived. The .
. selectand buy goods and services.customer has all the rights to order.
the customer has all-mighty power. in ebusiness. Competition .Especially.
Second-rate quality goodscannot .in quality and productivity has been everincreasing.
scientific. statistical . Six Sigma with its 4S(systemat ic.survive anymore in the market.
.and smarter) approaches pro-vides flexibility in managing a business unit.
4 Six Sigma for Quality and Productivity Promotion 1.3Key Concepts of .
Manageme nt The core objective of Six Sigma is to improve the performance of
processes. By improving processes, it attempts toachieve three things: the
first is to reduce costs, the second isto improve customer satisfaction, and the
Figure 1. thereby. . increasing profits.3.third is to increaserev enue.
Globally well known Six Sigma companies 1.1Proces s A general definition of .3.
a process is an activity or series of activities transformin g inputs to outputs in a repetitive .
For companies.4. the output is predominantly a .flow asshown in Figure 1.
.product taking the form of hardware goods withtheir associated services.
an R&D activity or a nonmanufacturi ng service activity which does not have .However.
Figure 1.any formof hardware goods could also be a process. .4.
Y .The process with inputs and outputs Input variables (control factors) Input variables (noise factors) Process Process characteristicsX1X2 X3XnV1V2V3Vn…… Output.
Pro duct characteristics 198 7 1 9 8 9 1 9 9 1 1 9 9 3 19951 9 9 7 1 9 9 9 American ExpressJohnson & JohnsonSamsung GroupLG GroupEricssonNCRNo kiaPhilipsSolectronUS Postal ServiceDow .
Submit Characters: 400 .ChemicalDuPontNEC Samsung SDILG ElectronicsSonyToshi baWhirlpoolGEAllied SignalTIABBKodakDE CIBMMotorola Six Sigma Overview 5 of 218 Leave a Comment You must be logged in to leave a comment.
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