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Are you ready for Six sigma?
The starting point of the Six sigma journey is the realization of the
problem, of a gap between what you want to achieve and where you
currently are.
If your answer to any of these question is YES you are ready for six
sigma.
Do you have a sense of dissatisfaction over the present state of your
organization?
Are your customers often dissatisfied with your quality / price / delivery ?
Do you face a threat from incoming competition?
Are you losing your market share?
Are your costs high?
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What is Six sigma?
Six sigma is a problem solving technique
Six sigma is a statistical tool
Six sigma is nothing but Excellence in whatever we
do
Six Sigma means accuracy
Six sigma means low variation
How it is different?
Six sigma gives more benefits

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Two Events


Industries taking up SIX SIGMA initiative


Release of ISO 9001: 2000
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Commonalities

Continual Improvement

Process Approach

Focus on excellence in current processes

Emphasis on measurement, quantification
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Invented at Motorola
Perfected at General Electric


SIX SIGMA AS A PHILOSOPHY

We are in the business to make money
We make money by satisfying needs
We are able to satisfy needs by doing
Every need / do pair is an interaction
The aim of customer focus is on improving need / do interactions
Repetition of the same action constitutes a process
Improvement of our business mean improvement of our process
customers need product / service on-time, with zero defects, at the lowest cost
Suppliers create processes to generate needed products
As process capability improves, the product quality increases
As quality increases, costs & cycle-time go down
The attributes of customer satisfaction must be measured if they are to be
improved
To improve means we must be able to predict and prevent, not detect and react

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Prediction is correlated to certainty
Maximization of certainty is dependent upon the measurement of process
capability
process capability is best understood & reported using statistics.
Statistics is dependent upon data
Data must be collected in the process according to a plan
Statistics is used to convert raw data into meaningful summary information
Statistical info. is used to report on, improve, and control the process
The basis of statistics is the mean & standard deviation
The mean reports on process centering
The standard deviation reports the extent of variation or scatter about the
mean
By combining the mean and standard deviation, the sigma of a process can
be calculated
The sigma of the process tells us how capable it is
The process sigma can be used to compare similar or dissimilar processes
SIX SIGMA AS A PHILOSOPHY ..contd
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Such comparison of processes is called benchmarking
Benchmarking is a competitive tool used to uncover what we do well
and not so good
Once basic competencies and deficiencies are known, corrective action
can be taken
Corrective action leads to the reduction of defects, cycle-time & cost
The reduction of defects, cycle-time, & cost leads to improved customer
satisfaction
As customer satisfaction improves, the likelihood of doing business
increases
As business increases, we (as individuals) grow and prosper
SIX SIGMA AS A PHILOSOPHY contd
The power of measurement


WE DONT KNOW WHAT WE DONT KNOW

WE CANT ACT ON WHAT WE DONT KNOW

WE WONT KNOW UNTIL WE SEARCH

WE WONT SEARCH FOR WHAT WE DONT QUESTION

WE DONT QUESTION WHAT WE DONT MEASURE

HENCE, WE JUST DONT KNOW
The Role of measurement
IF WE CANNOT EXPRESS WHAT WE KNOW
IN THE FORM OF NUMBERS, WE REALLY
DONT KNOW MUCH ABOUT IT

IF WE DONT KNOW MUCH ABOUT IT, WE
CANNOT CONTROL IT

IF WE CANNOT CONTROL IT, WE ARE AT THE
MERCY OF CHANCE
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Six Sigma


Gave us a measure for the performance of
even routine processes that we come
across in our daily activities
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HOW DO WE JUDGE THE EFFICACY OF
OUR PROCESSES?

Meets customer demands
(Process Effectiveness)







Meets business objectives
(Process Efficiency)
PROCESS
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What is sigma


Measure of variation


Data


1, 2, 3, 4, 5, 1, 1, 3, 5, 5,
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Data
18.5
19.6
20.6
16.5
15.8
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THE NORMAL CURVE

Center of the bar
Smooth curve
interconnecting the
center of each bar
Units of Measure
If we join the middle points of a Histogram and join it a free line
sketch then the distribution looks like as follows;
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NORMAL DISTRIBUTION -
PROPERTIES
If we know the average () and variation () of normal
distribution then we can explain every thing of the
distribution or process:
68.26% of the values line within 1 from the mean AND
95.46% of the values line within 2 from the mean
AND
99.73% of the values line within 3 from the mean
THEN the distribution is normal.

NORMAL DISTRIBUTION IS CHARACTERISED BY A BELL
SHAPED CURVE.
-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
68. 26%
95.44%
99.73%
99.9937%
99.999943%
99.9999998%
( OF ALL ITEMS )
UTILIZING
THE SIX
STEPS TO
SIX SIGMA
AVG.


19
+1 -1
AVG.= 18
LSL =16 USL =20
Defect
Defect
= 2.0
Yield 68.27% Defect = 317300 PPM
20
USL = 20
AVG. = 18
-2 +2
Defect
Defect
= 1.0
LSL =16
Yield 95.45% Defect = 45500 PPM
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LSL = 16 USL = 20
AVG. = 18
-3 +3
Defect
Defect
= 0.6
Yield 99.73% Defect = 2700 PPM
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LSL = 16 USL = 20
AVG. = 18
-4 +4
Defect
Defect
= 0.5
Yield 99.9937% Defect = 63 PPM
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LSL = 16 USL = 20
AVG. = 18
-5 +5
Defect
Defect
= 0.4
Yield 99.999943% Defect = 0.57 PPM
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LSL = 16 USL = 20
AVG. = 18
-6 +6
= 0.33
Yield 99.9999996% Defect = 0.002 PPM
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WHAT IS SIX SIGMA
Six sigma is when the inherent variability of the process is half that of the
requirements
LSL USL
6
3 3
6
A WORD OF CAUTION:
It is possible to achieve six sigma by widening specs but the
issue is that would the customer accept it
PICTORIALLY
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LSL = 16 USL = 20
AVG. = 18
-6 +6
= 0.33
Yield 99.9999996% Defect = 0.002 PPM
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LSL = 16 USL = 20
AVG. = 18
-6 +6
= 0.33
1.5
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LSL = 16 USL = 20
AVG. = 18
-6 +6
= 0.33
1.5
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LONG TERM AND SHORT TERM
SIGMAS
LSL
X
USL LSL X USL
Cumulative
short-term
capability
Cumulative
long-term
capability
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THE CONCEPT OF Z

A
C
B
Z = | SL - Avg.| / std. deviation
Z
u

Z
L
+
-
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308 537
66807
6210
233
Process
capability
2
3
Defects per million
opportunities
No. of times
improvement
4
5
3.4
6
4.6 times
11 times
68 times
26 times
Improvement Scale
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308 537
66807
6210
233
Process
capability
2
3
Defects per million
opportunities
No. of times
improvement
4
5
3.4
6
4.6 times
11 times
68 times
26 times
Improvement Scale
Yield
69.2%
93.3%
99.4%
99.98%
99.9997%
THE IMPACT OF IMPROVEMENT

THE DIFFERENCE BETWEEN 4SIGMA AND 6SIGMA
IS GREATER THAN HUNDREDFOLD IMPROVEMENT
100K

10K

1K

100

10

1
2 3 4 5 6 7
AVERAGE
COMPANY
BEST IN CLASS
>>100X
3.4 PPM
SIGMA
(WITH +/- 1.5 SIGMA SHIFT)
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A 4 company
Profitable and growing
Market prices declining
Competitors increasing
Has a Q assurance program
Spends 10 - 20 % of sales on rework & rejection
Unaware that best-in class companies have similar
processes 100 times better
Believes Zero defect goal is neither realistic nor
achievable
Has 10 times the number of suppliers required to run
the business
5 - 10 % customers are dissatisfied
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3.4
ppm
233 ppm
6210
ppm
66807 ppm
308537 ppm
697672 ppm
Average
Processes
Low
Hanging
Six Sigma
World class
Five Sigma
Four Sigma
Three Sigma
Two Sigma
One Sigma
Team work, Reviews
and Problem Solving
Advanced Statistical
Analysis
Design for
manufacturability
Climbing the steps
1. Why we chose Six sigma ?
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Six Sigma

Steps followed :

Define
Measure
Analyse
Improve
Control
Continually improve

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Six Sigma

Steps followed :

Define
Measure
Analyse
Improve
Control
Continually improve

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Define the Customer, their Critical to Quality (CTQ)
issues, and the Core Business Process involved.
Define who customers are, what their
requirements are for products and services,
and what their expectations are
Define project boundaries the stop and
start of the process
Define the process to be improved by
mapping the process flow
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Measure the performance of the Core Business
Process involved.
Develop a data collection plan for the
process
Collect data from many sources to
determine types of defects and metrics
Compare to customer survey results to
determine shortfall
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Analyze the data collected and process map to
determine root causes of defects and opportunities
for improvement.
Identify gaps between current performance
and goal performance
Prioritize opportunities to improve
Identify sources of variation
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Improve the target process by designing creative
solutions to fix and prevent problems.
Create innovate solutions using technology
and discipline
Develop and deploy implementation plan
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Control the improvements to keep the process on
the new course.
Prevent reverting back to the "old way"
Require the development,
documentation and implementation of an
ongoing monitoring plan
Institutionalize the improvements
through the modification of systems and
structures (staffing, training, incentives
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DFSS
Design For Six Sigma
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Two Types of Quality

Type 1: Customer Quality - The features that customers
want.
Type 2: Engineered Quality - The problems customers do
not want.

Customer quality leads to the size of the market segment.
It includes items such as function, features, colors and
designs. The better the customer quality, the bigger the
market size becomes. In order to obtain the market size,
the price must be reasonable. Customer quality is
addressed primarily though customer surveys and series of
QFDs.
On the other hand, engineered quality includes defects,
failures, noise, vibration, unwanted phenomena, lowering
the cost of manufacture, and minimizing manufacturing
problems.
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DMAD
Define the project goals and customer
(internal and external) deliverables

Measure and determine customer needs
and specifications

Analyze the process options to meet the
customer needs

Design (detailed) the process to meet the
customer needs

Verify the design performance and ability
to meet customer needs





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Customer Satisfaction Requirements


Given that product performance features are perceived
by the customer as providing fair value, the
customer has a right to expect that the:


Product/Service is delivered when promised;
Product/Service is delivered with no defects;
Product/Service does not experience early life
failures; and
Product does not fail excessively in service.
FOCUS ON TOTAL DEFECTS PER UNIT
REDUCES THE CYCLE TIME PER UNIT
REDUCES WIP INVENTORY CARRYING COSTS
REDUCES DELIVERED DEFECTS
REDUCES EARLY LIFE FAILURE RATE
REDUCES DEFECT ANALYSIS AND REPAIR COST
PER UNIT
. . . HIGHER QUALITY, LOWER COST, ON TIME
. . . INCREASES CUSTOMER SATISFACTION
REASONS FOR IMPROVING QUALITY
BUSINESSES WHICH HAVE ACHIEVED
SIGNIFICANT QUALITY IMPROVEMENT EARN 8%
HIGHER PRICES.
BUSINESSES WHICH ACHIEVE A SUPERIOR
QUALITY POSITION ARE 3 TIMES MORE
PROFITABLE AS THOSE WITH INFERIOR LEVELS
OF QUALITY
BUSINESSES WHICH IMPROVED THEIR QUALITY
GAINED 4% MARKET SHARE PER YEAR
EACH SIGNIFICANT POSITIVE SHIFT IN PROCESS
CAPABILITY EQUATES TO A 10 TIMES
IMPROVEMENT IN PROFITABILITY
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What is a Defect?
A defect is any variation of a required characteristic
of the product (or its parts) or services which is far
enough from its target value to prevent the product
from fulfilling the physical and functional
requirements of the customer, as viewed through
the eyes of your customer.

A defect is also anything that causes the processor
or the customer to make adjustments.

ANYTHING THAT DISSATISIFIES YOUR CUSTOMER
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A 'unit' may be as diverse as a:
Number of equipment
Line of software / harness
Purchase Order raised
Delivery / delay made against invoice
Freight cost paid
Inventory every week
Job time card punched

DEFINING A UNIT
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THE COMMON METRIC:

DEFECTS PER UNIT (DPU)
DPU is the best measure of the overall quality of the
process.

DPU is the independent variable.

Process yields are dependent upon DPU.
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'unit Defect
Number of equipment ------- Rework Type
Line of software / harness ------- Mistake
Purchase Order raised ------- Wrong / missing entry
Invoice -------------------- Payment beyond 60 days
Freight cost paid -------Cost more than certain amt.
Inventory every week -- MMI beyond a target value
Job time card punched-- wrong code / missing code

DEFINING A UNIT & Defect
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Histogram - XYZs arrival at PSW


2 2
3 3
8
7
5
4
6
2
0
1
2
3
4
5
6
7
8
9
7
.
5
5 8
8
.
0
5
8
.
1
8
.
1
5
8
.
2
8
.
2
5
8
.
3
8
.
3
5
8
.
4
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Sigma level for XYZs arrival
For 8.28 am ( Upper specification limit )
Defects = 08
Total cases = 42
Defects per unit ( DPU) = 08 / 42 = 0.1904
No. of opportunities (O) = 1
Defect per opportunity (DPO) = DPU / O = 0.1904
Defect per million opportunities (DPMO) = 190,400

Zlt = 0.88
Zst = 0.88+ 1.5 = 2.38 SIGMA LEVEL


Thank you
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Normal Table
Z DPO Z DPO Z DPO Z DPO
0.0 0.50
0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968
0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687
0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484
0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.000337
0.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233
0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159
0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108
0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.000072
0.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048
1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032
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Sigma level for error in PO
500 POs are checked.
Defects ( mistakes) = 10
Total POs = 500
Defects per unit ( DPU) = 10 / 500 = 0.0200
No. of opportunities per PO (O) = 5
Total no. of opportunity (5 x500) = 2500
Defect per opportunity (DPO) = 10 / 2500= 0.0040
Defect per million opportunities (DPMO) =DPO x 10
6
=4000
Zlt = 2.65
Zst = 2.65+ 1.5 = 4.15 SIGMA LEVEL

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Normal Table
Z DPO Z DPO Z DPO Z DPO
0.0 0.50
0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968
0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687
0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484
0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.000337
0.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233
0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159
0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108
0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.000072
0.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048
1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032
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Normal Table
Z DPO
4.1 0.0000208
4.2 0.0000134
4.3 0.00000862
4.4 0.00000548
4.5 0.00000345
4.6 0.00000215
4.7 0.00000133
4.8 0.000000818
4.9 0.000000419
5.0 0.000000300
Z DPO
5.1 0.000000180
5.2 0.000000107
5.3 0.0000000627
5.4 0.0000000366
5.5 0.0000000212
5.6 0.0000000122
5.7 0.00000000698
5.8 0.00000000396
5.9 0.00000000223
6.0 0.00000000125
6.1 0.000000000694
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No. of opportunities = No. of points checked


If you dont check some points then it becomes a passive
opportunity. We should take only active opportunities into
our calculation of DPO, and level.
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Histogram - GR clearance time


195
215
151
52
16
10
9 8
1
3
4
1
2
1
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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sigma level - calculation
Target = 4 days
From June 2000 data, out of 668 GRs 55 GRs were
cleared in 5 or more days
Number of defects (D) = 55
Number units (U) = 668
Defects per unit (DPU) = 55 / 668 = 0.0823
Opportunities for defects (O) = 1
Defects per opportunity(DPO) = (0.0823 / 1) = 0.0823
Defect per million opportunities (DPMO) = 82300
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Normal Table
Z DPO Z DPO Z DPO Z DPO
0.0 0.50
0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968
0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687
0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484
0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.000337
0.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233
0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159
0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108
0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.000072
0.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048
1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032
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Sigma value
Z
LT
= 1.4,
Z
ST
= 1.4+1.5 = 2.9 (Current Sigma level)

The target can be to achieve Z
ST
= 4.4 by
January 2001.

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308 537
66807
6210
233
Process
capability
2
3
Defects per million
opportunities
No. of times
improvement
4
5
3.4
6
4.6 times
11 times
68 times
26 times
Improvement Scale
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How Six sigma is different?
Its a systematic & structured way of problem solving that involves measurement,
analysis & monitoring of performance of a system or a process by using proven
statistical techniques. Some of them are -
1 Estimating sigma level 8 Graphical Analysis
2 Rolled through put yield 9 Multi-vari charts
3 Measurement System Analysis 10 Central Limit Theorem
4 Process capability Indices 11 Confidence Interval
5 Hypothesis testing 12 Control Charts
6 Correlation and Regression and
7 Design of Experiment 13 Control Plan
THE FOCUS OF SIX SIGMA
Y = f (X)
TO GET RESULTS , SHOULD WE FOCUS OUR BEHAVIOUR
ON Y OR X ?


Y X1 .............................. XN
DEPENDENT INDEPENDENT
OUTPUT INPUT- PROCESS
EFFECT CAUSE
SYMPTOM PROBLEM
MONITOR CONTROL


IF WE ARE SO GOOD AT X , WHY DO WE CONSTANTLY TEST AND
INSPECT Y ?

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