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SIX SIGMA

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WHAT IS SIGMA ?

A term (Greek) used in statistics to
represent standard deviation from mean value,
an indicator of the degree of variation in a set
of a process.

Sigma measures how far a given process
deviates from perfection. Higher sigma
capability, better performance


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WHAT IS SIX SIGMA?
A statistical concept that measures a
process in terms of defects at the six
sigma level, there 3.4 defects per million
opportunities.
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Contd
WHY SIX SIGMA ?
Six Sigma emerged as a natural evolution in
business to increase profit by eliminating
defects
The Current business environment now
demands and rewards innovation more than
ever before due to:
Customer Expectations
Technological Change
Global Competition
Market Fragmentation
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SIGMA LEVELS
Sigma Level ( Process
Capability)
Defects per Million
Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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COMPANIES USING
Six Sigma is in use in
virtually all industries
around the world. Some
of companies can be
listed as:
Motorola
Ericsson
General Electric
Sony
Ford Motor Co.
CITI bank
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Six Sigma
process
2 methodology
DMAIC
DMADV
WHAT IS DMAIC?
(DEFINE,MEASURE,ANALYSE,IMPROVE,CONTROL)
A logical and structured
approach to problem
solving and process
improvement.

An iterative process
(continuous improvement)

A quality tool which focus on
change management style.
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PHASES (DMAIC)
Phases of Six Sigma are:
Define specific goals to achieve outcomes,
consistent with customers demand and business
strategy
Measure reduction of defects
Analyze problems ,cause and effects must be
considered
Improve process on bases of measurements
and analysis
Control process to minimize defects

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WHAT IS DMADV?
Define the project
Measure the opportunity
Analyze the process
options
Design the process
Verify the performance
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WHEN SHOULD SIX SIGMA BE USED?

Its usage depends on the type of business. In
general,

If there are processes that generate a lot of
negative customer feedback, whether that
customer is internal or external, the
components of Six Sigma should be
considered as a means to study and rectify
the problem. 11
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Best In- Class sigma (reference value)
compared with the performance by which we
can come to a conclusion whether
improvement is required or not.

Performance variables are measured and
analyzed using statistical methods.

When improvement required Design Of
Experiments (DOE) is used by which process
parameters are designed.
SIX SIGMA OVERCOMES THE WEAKNESS BY
FOCUSING ON
Commitment to customer requirements
Developing consensus set of improvement
actions
Prioritize the actions
Establish measures

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Various steps for implementation of six sigma:

Identify the critical character through such functions and
activities as Research and Development Engineering

Identify process elements that influence critical character
defined in step 1

Define process elements that influence critical character in
step 2

Establish maximum tolerances for each element in step 2 and
step 3

Determine actual capability of elements. Assume Cp >=2 and
C pk >= 1.5






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Cp is process capability which is defined as the ratio of
specification range to the process range using +/- 3 sigma
limits.

Cp = (USL-LSL)/(6 )

Cpk is used to evaluate the centering of process

Cpk = min((USL-)/ 3 , (- LSL)/ 3 )).

Cp and Cpk used to decide whether the process passes the
values required to pass beyond the severity of the defect (
major, minor, critical).