# Understanding 6s (Six Sigma

)

Contents

What is 6σ activity? Why should we do 6σ? How to Launch 6σ ? Common term

What is Six Sigma Activity ?

1. What are the statistics ? 2. Solution of the Practical Problem 3. What is the 6σconcept ? 4. 6σ as the Business Strategy 5. 6σ Application 6. 6σ Activity Process 7. Comparing other tools 8. 6σ Philosophy

What is Six Sigma Activity ?
1. What are the statistics ?

USL
(Upper Spec Limit)

◆ Population & Sample

Measure 10 samples
(Spec. : 100±4) LSL
Total inspection is impossible !
(Lower Spec Limit)

Population
N ＝ 1,000

Sample
Statistical variables (mean, variance) estimate population 96

Ⅹ Ⅹ
97

Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ
98

99 100 101 102 103 104

○ You may say “ This Population is Good because all the sample’s data are located between LSL & USL. BUT, If you estimate the defect rate using statistical analysis, this population has the probability of 2.8% defects per unit. Then this is - we call - “An epidemic” quality defect level. ○ Measuring defect rate on process through an expanding statistical concept, we can use measuring process capability.

Basic Statistics - I

Contents

1. Sample & Population. 2. Types of data 3. Measures of central tendency. - Mean, Median, Mode. 4. Measures of dispersion - Standard dev, Variance, Range 5. Graphs - Histogram, Boxplot, Dotplot 6. Correlation

1. Population & sample

Let us consider a example: Suppose we want to find out average height of males of Delhi. Since we can not measure the height of each male of Delhi, we will have to select a sample (say 1000 nos) of males to predict the average height of entire male population (1crore) of Delhi.

Population Sample

Characteristic of population : Parameter

Characteristic of sample : Statistics

From the given example, we conclude the following: Population : Nos of entire males of Delhi. Parameter : Average height of males of Delhi. Sample : 1000 males of Delhi Statistics : Average height of 1000 males of Delhi. Thus statistics is used to predict parameter of population.

How to collect data ?

In the picture shown over here , a woman is preparing tea. Before serving tea, she is testing the taste of tea. For this purpose, she has to shake the tea well . For sample, she is tasting one spoon. Based on the taste of this spoon she is going to make decision, whether tea is good for serving or not.

The origin of a sampling survey

1. Shake it well

☞ No bias

2. Take one spoon 3. Make Decision 4. Action

☞ Sampling

The above example shows that since we cannot measure the whole population, the sample must be selected at random, so that statistic reflects or predicts parameter exactly.

☞ Based on Statistics

2. Data Types
Data in any form can be of two types : 1) Discrete types 2) Continuous types Discrete data

: A data which is based on information such as pass / fail . In discrete data you cannot be more specific.Tolerance : Infinity Ex1. Do you love me ? The answer can only be yes or no . ie the data is discrete Ex2. AC Gas leakage can be either OK or NOK type.

Continous data

- The data which uses a measurement scale of length, time or any scale. The continous data contains more information than discrete data. Defined Tolerance Ex1. How much do you love me? The answer can be anything , for eg on a scale of 1-10 you can say 1 if you don’t love me much, but you can give 10 if you are deeply in love with me . This is an example of continuous data. Ex2. Height, Length , weight, diameter etc.

.

3. Measures of Central Tendency
3.1 MEAN

The mean (also called the average) is a measure of where the center of your distribution lies. It is simply the sum of all observations divided by the number of observations. Eg For the rainfall data in 11 major cities of the country, the mean is: (2 + 3 + 10 + 5 + 4 + 4 + 3 + 3 + 1 + 2 + 3) / 11 = 3.636. The mean is strongly influenced by extreme values. Even though most cities (7 out of 11) had 3 mm or less of rainfall, the mean is close to 4. The extreme value of 10 mm with rainfall for Mumbai is affecting the mean quite a bit. Without this observation, the mean would be exactly 3. On the other hand, if you include Mumbai with 30 mm of rain instead of 10 in the calculations, the mean would be 5.455, a value that is greater than all but one observation!

. The median (also called the 2nd quartile or 50th percentile) is the middle observation in the data
set. It is determined by ranking the data and finding observation number [N + 1] / 2. In the rainfall data set, there are11 (non-missing) observations. Thus, the median is the value of the 6th highest (or 6th lowest) observation, which is 3: 1 2 2 3 3 3 3 4 4 5 10 If there are an even number of observations, the median is extrapolated as the value midway between that of observation numbers N / 2 and [N / 2] + 1. The median is less sensitive to extreme values than the mean.For example, the median of this data set would be 3 even if there were 30 mm with rainfall in Mumbai instead of 10. Therefore, the median is often used instead of the mean when data contain outliers, or are skewed. NB: Always arrange the given data in ascending or descending order

3.2

MEDIAN

3.4 MODE:
The mode is the value in an array of data that is repeated the most. The mode is also a measure of central tendency but is rarely used,as in some cases , chances are there that a single unrepresentative value is also the one that is repeated most often. For eg in the data of the rainfall in the 11 cities here the most repeated value is 3 so the mode is 3, but if our data had been 0, 2 ,5 ,7 ,15 ,1 ,4 ,6 ,8 ,15 Then our mode would have been 15.

4. Measures of Dispersion
4.1 STANDARD DEVIATION (STDEV): σ

The standard deviation (StDev) is a measure of how far the observations in a sample deviate from the mean. It is analogous to an average distance (independent of direction) from the mean. The standard deviation is the most commonly reported measure of dispersion. It also serves as an estimate of the dispersion in the broader population from which a sample is taken.

Consider example of rainfall given on page 1.
rainfall 2 3 10 5 4 4 3 3 1 2 3 x=3.636 x -x 2 - 3.636 3 - 3.636 10 - 3.636 5 - 3.636 4 - 3.636 4 - 3.636 3 - 3.636 3 - 3.636 1 - 3.636 2 - 3.636 3 - 3.636 (x - x ) 2 (2 - 3.636) 2 (3 - 3.636)2 (10 - 3.636) 2 (5 - 3.636) 2 (4 - 3.636) 2 (4 - 3.636)2 (3 - 3.636) 2 (3 - 3.636) 2 (1 - 3.636) 2 (2 - 3.636) 2 (3 - 3.636) 2
2

2

σ
σ x x n = = = =

= Σ (x-x) /( n)

2

Standard deviation item or observation population mean total no. of items in the population

In given case we have, n=11 So σ = 56.54/11 = 2.378

Σ (x-x) =56.54

The standard deviation for the rainfall data is 2.378mm . This tells you that on average, the values in the data set tend to differ from the mean by ± 2.378. If the data are normally distributed, then the standard deviation and mean can be used to determine what proportion of the observations fall within any given range of values. For example, 95% of the values in a normal distribution fall within ± 1.96 standard deviations of the mean. Like the mean, the standard deviation is very sensitive to extreme values. The large value of 10 mm of rainfall for Mumbai increases the standard deviation quite a bit. Without this value, the standard deviation would be 1.155 instead of 2.378. Conversely, if Mumbai had 30 mm of rain, the standard deviation would be 8.210

4.2 STANDARD ERROR OF THE MEAN (SE MEAN):
The standard error of the mean (SE Mean) is not often used as a descriptive statistic, but it is important in hypothesis testing. It is an estimate of the dispersion that you would observe in the distribution of sample means, if you continued to take samples of the same size from the population. The standard error of the mean is the standard deviation divided by N

4.3 RANGE:
The range is defined as the difference between the highest and the lowest observed values, in a given array of data. It is very easy to understand but has very limited usefulness as a measure of dispersion. For eg: for the given rain data - the highest value is 10 & the lowest value is 1, so the range is 10-1 =9

4.4 VARIANCE
: The variance of a population signifies the deviation of the data values from the mean value, it is 2 symbolized by σ . To calculate the population variance we have the following formula: 2 2 σ = Σ(x-µ)2 / N σ = population variance x = item or observation = population mean µ = total no. of items in the population

4.5 FIRST AND THIRD QUARTILES (Q1 AND Q3)
The first quartile (Q1, also called the 25th percentile) is the highest value for the lowest 25% of the observations. For the rainfall data, Q1 is 2. The third quartile (Q3, also called the 75th percentile) is the lowest value for the highest 25% of the observations. For the rainfall data, Q3 is 4. Q1 and Q3 are often used to calculate the inter quartile range (IQR), which is another statistic used to describe dispersion. The IQR is the range of the middle 50% of the values and is calculated by the formula Q3 - Q1. The IQR for the rainfall data set is 4 - 2 = 2. The IQR is relatively insensitive to extreme values. For example, the IQR would remain the same even if there were 30 mm with rain in Mumbai instead of 10.

5. Graphs
5.1 HISTOGRAM OF DATA
A histogram displays data that have been summarized into intervals. It can be used to assess the symmetry or skewness of the data. To construct a histogram, the horizontal axis is divided into equal intervals as shown below , and a vertical bar is drawn at each interval to represent its frequency (the number of values that fall within the interval).
4 3

Frequ ency

2

In the histogram of the rainfall data, notice the single extreme value in the interval from 9.5 to 10.5. If not for this outlier, the distribution would be perfectly symmetric and fairly normal.

1

0 1 2 3 4 5 6 7 8 9 10

rainfall

5.2 DOTPLOT OF DATA
Use the dotplot to examine the dispersion and concentration of the data. Each circle represents one or more observations. In the dotplot of the rainfall data set, notice that several of the dots represent more than one observation.

Dotplot for rainfall

1

2

3

4

5

rainfall

6

7

8

9

10

5.3 BOXPLOT OF DATA
Boxplots summarize information about the shape, dispersion, and center of your data. They can also help you spot outliers. Box plot is as shown below :

Q3

.

Q1 Median
0 1 2 3 4 5 6 7 8 9 10

rainfall
A. The left edge of the box represents first quartile (Q1), while the right edge represents third quartile (Q3). Thus the box portion of the plot represents the interquartile range (IQR), or the middle 50% of the obs . B. The line drawn through the box represents the median of the data. C The lines extending from the box are called whiskers. The whiskers extend outward to indicate the lowest and highest values in the data set (excluding outliers). D Extreme values, or outliers, are represented by asterisks (*). A value is considered an outlier if it is outside of the box (greater than Q3 or less than Q1) by more than 1.5 times the IQR. .

Use the boxplot to assess the symmetry of the data: • If the data are fairly symmetric, the median line will be roughly in the middle of the IQR box and the whiskers will be similar in length. • If the data are skewed, the median may not fall in the middle of the IQR box, and one whisker will likely be noticeably longer than the other. In the boxplot of the rainfall data the median is centered in the IQR box,and the whiskers are the same length. This indicates that except for the outlier (asterisk), the data are symmetric. This is a good indication that the outlier may not be from the same population as the rest of the sample data.

6. CORRELATION
6.1 CORRELATION

A Pearson correlation coefficient measures the extent to which two continuous variables are linearly related. Suppose you have a sample of candies and you want to know if the temperature of your production facility is associated with changes in the thickness of the chocolate coating. Or, you may have a sample of golf balls and want to determine if differences in their diameter are associated with differences in elasticity. There are a few points to keep in mind when performing or interpreting a correctional analysis: •Correlation coefficients only measure linear relationships. A meaningful nonlinear relationship can exist even if the correlation coefficient is 0. •It is never appropriate to conclude that changes in one variable cause changes in another based on a correlation. Only properly controlled experiments allow you to determine if a relationship is causal. •The correlation coefficient is very sensitive to extreme values. A single value that is very different from the others in a data set can change the value of the coefficient a great deal. The correlation coefficient can range in value from -1 to +1, and tells you two things about the linear relationships between two variables: •Strength — The larger the absolute value of the coefficient, the stronger the linear relationship between the variables. An absolute value of one indicates a perfect linear relationship, and a value of zero indicates the absence of a linear relationship. Whether an intermediate value is interpreted as a weak, moderate,or strong correlation depends on your objectives and requirements. •Direction — The sign of the coefficient indicates the direction of the relationship. If both variables tend to increase or decrease together, the coefficient is positive. If one variable tends to increase as the other decreases, the coefficient is negative.

Following graphs tell about the strength & direction of relationship between 2 variables
r=1 slope is positive r= -1 slope is negative r=0 slope is zero
r > 0.8 means a correlation exists between the 2 variables.

Perfect positive correlationPerfect negative correlation
r=0.4 slope is positive r= -0.4 slope is negative

No correlation

Formula for r
For the two variables x and y, r = ∑ ( X - X ) (Y - Y)

Sx S y (n -1 )

Slight positive correlation

Slight negative correlation

where and Sx are the sample mean and standard deviation for the first sample, and and sy are the sample mean and standard deviation for the second sample.

Suppose , we want to find out , whether any correlation exists between height(ht) & weight(wt) of individuals .We measure ht & wt of 7 individuals & get data as shown below :
Height(cm) 151 155 183 129 189 178 165 Weight(Kg) 55 65 76 48 80 75 68

Pearson correlation of Height and Weight = 0.979 (as derived from the formula for ‘r’ given on the previous page P-Value = 0.000

The correlation coefficient value of 0.979 indicates that there exists a strong correlation between height & wt of individual. The p-value tells you if the correlation coefficient is significantly different from 0. (A coefficient of 0 indicates there is no linear relationship): •·If the p-value is less than or equal to your level, then you can conclude that the correlation is different from zero, which means there exists a correlation between 2 variables. • If the p-value is greater than your level, then you can not conclude that the correlation is different from zero, which means there does not exist a correlation between 2 variables. Generally , value of is chosen as 0.05 , therefore in the given case, since p value is 0, we can conclude that there definitely exists a correlation between ht & wt.

What is Six Sigma Activity ?
2. Solution of the Practical Problem

Object of 6σ is Shift to Target Reducing variation

Precise but not Accurate

Shift to Target

Shifting to Target & Reducing Variation T
LSL USL

T
LSL USL

μ μ Accurate but not Precise T
LSL USL

μ

Reducing Variation

What is Six Sigma Activity ?
3. What is the 6σ concept ?
Statistical Definition of 6σ LSL
6.68%

Target

USL

σ
-3σ +3σ

6σ Quality means that area of the estimated normal distribution is located between USL&LSL with 6 σ. In that case area of the outlier spec. (In other words estimated defects) is just 3.4 PPM.

3.4ppm

-6σ

σ
+6σ

* σ : Standard Deviation Statistic index measures how much is data apart from target value

What is Six Sigma Activity ?
3. What is the 6σ concept ? 6σ as the Business Strategy

σ 6 5 4 3 2

PPM 3.4 233 6,210 66,807 308,537

• 1 misspelled word in all of the books contained in a small library • \$340 indebtedness per \$100 millions assets • 1.8 minutes per year

• 1.5 misspelled words per page in a book • \$6.7 millions indebtedness per \$100 millions assets • 24 days per year

What is Six Sigma Activity ?
3. What is the 6σ concept ?
6σ as the Activity

What is 6σ activity?
• In all Design, Manufacturing, and SVC processes • Applying for 6σ statistic Tools & Processes • To find factors causing defects • Acting the Analysis and Improvement • Through the Defect Reduction, Increase Yield & Total Customer Satisfaction • Management Innovation Tool contributes to Management Output

Achieving 3.4 PPM
(3.4 Defects Per Million)

PPM : Parts per Million

What is Six Sigma Activity ?
4. 6σ as the Business Strategy

1. It is a statistical measurement.
• It tells us how good our products, services, and processes really are. • 6σ helps us to establish our course and gauge our pace in the race for total customer satisfaction.

2. It is a improvement tool.
It’s a full packaged tool applying to design, manufacturing, sales& SVC.

3. It is a business strategy.
• It can greatly help us gain a competitive edge • As you improve the Sigma rating of a process, the product quality improves and costs go down. Naturally, the customer becomes more satisfied as a result.

4. It is a philosophy.
• This is one of working smarter, not harder. • Also it makes fewer and fewer mistakes in everything we do.

What is Six Sigma Activity ?
4. 6σ as the Business Strategy
Harvesting the Fruit of 6σ Fruit-bearing 6σ
• Sweet Fruit • Design for Manufacturability

Wall of 5σ
• Bulk of Fruit • Process Characterization and Optimization

Wall of 4σ
• Low Hanging Fruit • Seven Basic Tools

Wall of 3σ
• Ground Fruit • Logic and Intuition

What is Six Sigma Activity ?
5. 6σ Application

6σ is a tool that applies to all business systems - Design, Manufacturing, Sales and SVC
Design

Design 6σ

R&D 6σ

Guarantee for the Design completion in developing stage
• Selecting CTQ to meet customer needs • Decision reasonable Tolerance • Guarantee of the CTQ’s capability analysis

Mfg.
Sales &SVC

Mfg.

Quality assurance in manufacturing stage
• Improvement serious problem using S/W • Real Time Monitoring system → CTQ Control system

Transaction 6σ

Manufacturing 6σ Sales& SVC

Maximizing for sales & SVC
• Improvement cycle time and accuracy • Cost Improvement

What is Six Sigma Activity ?
6. 6σ Activity Process
6σ Activity Process(manufacturing & Transaction)
Identify Customer-Driven CTQ* (Critical to Quality) Characteristics Identify Key Processes that cause Defects in a CTQ Characteristics For Each Product or Process CTQ Measure, Analyze, Improve, & Control

D

**

1. Who are your customers? - Internal / External 2. What do you provide your customers? 3. What is critical to quality for your customers? 1. What are your internal processes for providing your product or service CTQ’s to your customers? 2. Where do defects occur in these processes? • Practical Problem • Measurement System • Yield Calculation •Process Mapping σ Calculation

M A I C

• Benchmarking • Cause & Effect Diagram • Hypothesis Testing • DOE • Brainstorming • Action Workout Techniques • Piloting • Procedures

6σ is a rigorous analytical process for solving problem!!!

• Control Mechanism • Control Chart

* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical. ** D : Define

What is Six Sigma Activity ?
6. 6σ Activity Process
Example of development process apply R&D 6σ
Evaluation meeting for present condition Evaluation meeting for basic concept Evaluation meeting for E/S drawing planning confirm confirm

Development Process

Kick -Off

R&D 6σ

Custo- QFD Design Process QFD mer S-1 FMEA FMEA S-2 Needs Survey

Spare CTQ Selection

Similar Z Value process of CTQ 값 Data Analysis gathering

Z Value Meeting optimize, for CTQ Design Check improve

E/S Development E/S Quality drawing making meeting confirm

P/L P.P Income P/L Quality Income P.P Quality Parts Making Meeting parts Making meeting

CTQ CTQ Data deci- for new sion parts gathering

Activity for process improvement

CTQ for new parts Confirm

Z Value of CTQ confirm

What is Six Sigma Activity ?
7. Comparing other tools
By Improvement Process

Control

Measure Others
- Symptoms - Frequency

Analysis

Improvement

- Present con- - Improved dition Analysis by expert’s • Focusing Idea experience/ technology

- Control by control chart - Process 4M control

- Discrete Data - Difficult to apply practical problem because of complextity

- Define/ Measurement - Variance of CTQ

- Analysis for - Optimizing - Control by statistics condition by PTS * - Effect analysis statistical (CTQ, caused factors analysis Benefits)

- Discrete+Continuous - Easy to apply because of supporting statistical software.

data

* PTS : Project Tracking System 90 29

What is Six Sigma Activity ?
7. Compare with other tool

100ppm / 6σ Application → Selecting Line → Do process FMEA
- Selecting Cost issue process view of customer

100ppm / 6σ 100ppm
• Detecting process defects • Managing Tool • Product managing compare with spec. • Judging each person’s Know-How • Manual Data gathering & analysis

• Control process variation • Improvement Tool • Prevention Control vital few factors • Judging the statistic Data • Simple & Effective analysis using the S/W

→ Conform CTQ process → Sorting the process
- Just need control process - Important control process - Law application process - Variation improvement

→ 100ppm / 6σ application according to sorting process

What is Six Sigma Activity ?
8. 6σ Philosophy
Focusing Point

CTQ(Y) = F( X1, X2, X3, ... Xn )
● 6σactivity is selecting the cost issue

Y
¶ Dependent ¶ Output ¶ Effect ¶ Symptom ¶ Monitor

X
¶ Independent ¶ Input-process ¶ Cause ¶ Problem ¶ Control

problem on some system in view of customer. This is we called “CTQ” and We achieved 6σ target through the 6σ process just selecting CTQ
● Also, 6σ activity is focusing

the causing factor(x1,x2...xn), not selecting CTQ itself

X factor effects on CTQ(Y) has the vital few 20% & trivial many 80%.

What is Six Sigma Activity ?
8. 6σ Philosophy

◆ We don’t know what we don’t know. ◆ If we can’t express what we know in the form of numbers, we really don’t know much about it. ◆ If we don’t know much about it, we can’t control it. ◆ If we can’t control it, we are at the mercy of chance.

What is Six Sigma Activity ?
8. 6σ Philosophy

◆ Our survival is dependent upon growing the business. ◆ Our business growth is largely determined by customer satisfaction. ◆ Customer satisfaction is governed by quality, price, and delivery. ◆ Quality, price, and delivery are controlled by process capability. ◆ Our Process capability is greatly limited by variation. ◆ Process variation leads to an increase in defects, cost, and cycle time. ◆ To eliminate variation, we must apply the right knowledge. ◆ In order to apply the right knowledge, we must first measure it. ◆ Measure the problem, we‘ll get the right knowledge.

Why do we do Six Sigma ?

1. Quality & Failure Cost 2. Paradigm Shift 3. Character of 6σ 4. 6σ Case Study

Why do we do Six Sigma ?
1. Quality & Failure Rate

“Generally controlled F-Cost has small portion considering of Hidden Loss” Inspection SVC Scrap Reject Design Change Long cycle time Over Rework Office Loss Rework Potential(Additional) F-Cost
(Difficult to measure)

Loss Opp. Sales Delivery Delay

Brand Image Down Over Storage

Why do we do Six Sigma ?
Paradigm Shift for Quality Old Belief
\$ Internal& External Failure Costs Appraisal & Prevention Costs

New Belief
Internal & External Failure Costs Appraisal & Prevention Costs

\$ \$

Increased Quality means Higher Cost 4σ

Increased Quality reduces Total Cost 4σ 5σ 6σ

\$

Quality Improves

Quality Improves

The high quality producer is the low cost producer not expensive.
Internal Failure : Scrap / Remake / Supplier Rework External Failure : Cost to Customer / Warranty Cost / Compliant Adjustments / Returned Material Appraisal : Inspection / Test / Quality Audits / Test Equipment Prevention : Quality Planning / Process Planning / Process Control / Training

Why do we do Six Sigma ?
Comparing 6σ with 3σ

The 3 σ Company
• Spends 15~25%of sales dollars on cost of failure • Produces 66,807 ppm opportunities • Relies on inspection to find defects • Believes high quality is expensive • Does not have a disciplined approach to gather and analyze data • Benchmarks themselves against their competition • Believes 99% is good enough • Define CTQ’s internally

The 6 σ Company
• Spends 5%of sales dollars on cost of failure • Produces 3.4 ppm opportunities • Relies on capable processes that don’t produce defects • Knows that the high quality producer is the low cost producer • Use Measure, Analyze, Improve, Control and Measure, Analyze, Design • Benchmarks themselves against the best in the world • Believes 99% is unacceptable • Define CTQ’s externally

Why do we do Six Sigma ?

Practical Meaning of “99% Good”

Æ 20,000 lost articles in mail per hour. Æ Unsafe drinking water almost 15 minutes each day Æ 5,000 incorrect surgical operations per week Æ 2 short or long landings at most major airports each day Æ 200,000 wrong drug prescription each year Æ No electricity for almost 7 hours each month 4 σ = 99.38%

Why do we do Six Sigma ?
3. Character of 6σ
Traditional Quality / 6σ Quality Method ISSUE
Index Data Target Range Method Action Application

6σ Approach

• %(Defect Rate) • Discrete Data • Satisfaction for Mfg Process • Spec Outlier • Experience + Job • Bottom Up • Mfg Process •σ

• Discrete + Continuous Data • Customer Satisfaction • Variation Improvement • Experience + Job + Statistical Ability • Top Down • Design, Mfg, Sales, SVC

Why do we do Six Sigma ?
3. Character of 6σ

Good Point of 6σ

¶ Pursue common goal

¶ Innovation through all Biz.

¶ Control main factors at upstream ¶ Reduce claim and rework ¶ Apply Statistics on all Biz. ¶ Support Statistics S/W ¶ Data analysis by experiment ¶ Make decision base on Data ¶ Easy to access difficult problem ¶ Foolproof for statistics ¶ Make indistinct facts clear ¶ Exclude wrong ideas & prejudice

Why do we do Six Sigma ?

3. Character of 6σ
Benefits and superiority of 6σ
Benefits
:

- Decrease cost of loss, Improve quality of product and service , satisfy the customer - It can make clear the output of Business.

Superiority ■ Variety of applications : Can apply all industry include financing Biz.
*

■ 3P Focus & reasonable index for appraisal Not only product and service, but also process and quality of human resour can be clear the goal and status by measuring. ■ High Effect of Investment No invest on hardware, only on human resources. ■ Clearness of effect for cost Output can be estimated clearly by financial part take part in which control cost and benefit form the beginning of project. ■ Data driven mind & easy to use statistics Tool. Through experimental data analysis indistinct fact can be clear. Exclude experience and prejudice. Can handle statistics by the S/W package(Minitab). * 3P : Product, Process, People

Why do we do Six Sigma ?
4. 6σ Case Study
Start & Prosperity
Start : Motorola

Prosperity :GE

At the beginning of 80’s, In the Japanese market, Motorola’s beeper lost its name value because of the quality difference compared to Japan’s In 1981 they tried to meet a challenge to improve quality 5 times in 5 years and they couldn’t. They developed a consistent process base on statistical knowledge. In 1987, they established 6σ goal as a key initiative.

In 1995 GE launched 6σ process to overcome a difficult business environment and to challenge World Class Quality. They made new processes such as Productivity,Inventory Return and NPI, but improvement was delayed because of defects in processes. GE thinks World Class Quality is big challenge. GE will focus on 6σ process for next generation .

Why do we do Six Sigma ?
4. 6σ Case Study
Cases of other companies
MOTOROLA Introduce 1987 T I 1988 Q. Cost Down 1988:30% →1993:7.4% G E SONY 1997

1995 Q. Cost Down \$3.8billion Adopt to all Biz.

Outcome Q. Cost Down \$3.2billion Character Origin of 6σ (Quality level -ristics

By 2000 years Train 2,000 Black Belts First in Japan

elevated 100 times in 4 years)

Remarks Culture harmony TOP DOWN Western & Oriental Quality Train

Train and do pjt.

Why do we do Six Sigma ?
4. 6σ Case Study
Output of other companies Benefits
Motorola Motorola reached 5.5σ level in 1992. Outcome is \$3.2billion from1987 to 1992.

Qualitative output

1200 1000 800
G E

Costs Benefits

● ● ● ●

6σ do the role of Boundaryless Behavior. Organization become learning & logical Use 6σ as worldwide common language. GE believes that 6σ would take part central role in the future.

600 400 200 0 96 97 98

How to Launch Six Sigma ?

1. Key Factor for Success of 6σ 2. 6σ Operating system 3. Project tracking system 4. Case study for Infra.

How to Launch Six Sigma ?
1. Key Factor for Success of 6σ

System requirement

Methodology

■ Need Top Down Drive
Need Top management’s strong will for 6σ. ● Top management’s strong and periodical announcement about 6σ policy.

■ Start at Customer’s voice.

CTQs from Customer’s voice, Improve the item which has big impact first!

■ All employees must participate...
Not only manufacturing part, but also nonmanufacturing part should join the program ● Focus on Customer’s requirements.

■ Need Training Program for All employees
Complete understanding for 6σ program. Hard training for all employees. ● Need resource investment resolutely.
● ●

■ 6σ as Pan-Company’s common standard.
Common language .(CTQ, σ, Cp,Z ....) ● Avoid personal translation about 6σ. ● All of Goal and target are represented as σscale. ● Basic process for all of projects.

■ Construct Infra
Need successful case study project. Resource reformation for organization and system. ● Reasonable appraisal and reward system.
● ●

How to Launch Six Sigma ?
2. 6σ Operating system

Chief of executive division
- 6σ Driving - 6σ Involvement & Commitment

Champion
- 6σ Operating
p Re es qu Re g / ent tin or it m m

m Co

t pp or Su

m Co

m

itm

en

t

Champion Review

tin g

MBB(Master Black Belt)
- Supporting 6σskill

Coaching/Supporting Request supporting

Project Team
- Operating Project - Achieving 6σ level for CTQ

* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme → Output review)

How to Launch Six Sigma ?
2. 6σ Operating system
Champion
Definition Roles - Present the Vision
• Set the 6σ goal • Assignment subject for total optimization • Guide direction and goal of Project

- Drive 6σ Activity
• Chief of 6σ operating • Chief of business groups (Chief of OBU, Business Executives, Chief of subsidiary)
• Continuously lead Activity through strong commitment • Evaluate Output and Share best practice with MBB

- Involvement
• Monitor and support through Champion Review • Directly support to settle bottleneck for 6σactivity

- Support Project
• Lead supporting all department in improvement and control step for 6σ Project team • Deciding Investment and allocate resources • Generate motives

It ☞ very important that the Champion gets involved in project and take ownership for 6σ is

How to Launch Six Sigma ?
2. 6σ Operating system
MBB(Master Black Belt)
Definition - Support Skill
• Coach BB/GB for 6σskill and tools • Level Up for 6σ skill & tools • Share best practice

Role

• 6σ Technical Leader • Full Time Job for 6σ • Complete MBB Course or acquire MBB Cert.

- Drive project results
• Check the Project by 6σ progress step • Report champion about project status and output • Assure benefits are real

- Support Projects
• Mentor BB / GB and Train individuals in tools • Support settlement for 6σActivity Barrier • continuous management and control for improved process

☞ It is very important to select excellent MBB and continuously improving skill

How to Launch Six Sigma ?
2. 6σ Operating system
Belt Certification

Role
• Leading BB/GB • Project Drive • Verity Output • Training • Execute Project • Leader of Pjt. team • Team member training • Execute Project • Team Leader or Member

Belt Master BlackBelt

Main Job
• 6σ Technical Leader • Needs Stat. Skill Propagate

Requirements
• More than 4 Projects & • Consulting More than 5 Projects a year

BlackBelt

• Full Time Project On TDR Theme

• 2 Projects & • 1 Project a year

GreenBelt

• Join Project by Part time

• 2 Projects

How to Launch Six Sigma ?
3. Project Tracking System
PTS* Flow Benefit

All Projects

PTS
Belt
Champion, Owners

Project Reviews

- Update and control CTQ of Closed Project - Easily manage and report for Project status - Evaluate reduction cost of 6σProject - Share Project information - Monitor 6σ Project status • Project Theme/Z value/Reduction cost Amount • By Division/OBU/Product/Model

- Defect Data,Goal - Project status - Results - Weekly update

• Weekly Review • Confirm cost benefits Benefits • Check & monitor

* PTS : Project Tracking System

How to Launch Six Sigma ?
4. Case Study For Infra.

Training For All Employees
- Training for Employees - Training for Boards → Project Review

Organizing 6σTeam

Planning 6σStrategy

6σTraining Material
- Introduce 6σ : All Employee - 6σ GB Training Prg. : Engineer, Staff - 6σ GB Training Prg. : Supervisor

Construct IT System
- Improve Chronic Defects : Minitab S/W - Optimize Process IT : Real Time Monitoring : Data Base For CTQs

Case Study
- 6σ Team

- Due part - Briefing 6σ MFG : QA Team Process Leader R&D : Chief of - Planning 6σ Lab. Strategy/Goal - Organize 6σ Surport Part :2~3 person/OBU → Organize 6σ Team

- PTS : Project Tracking System

Common Terms

1. CTQ 2. DPU / DPMO 3. Z Value 4. Process Capability Index 5. Rolled Throughput Yield

Common Terms
1. CTQ
Definition of CTQ Typical Tools

• Customer surveys • Focus Groups Interview • Customer needs Mapping • Quality function deployment(QFD) • Quick Market Intelligence • Logic Tree • Pareto Diagram

● Customer states as critical to quality

of product, service or process.
● Most CTQ’s are customer-driven,

but risk, economics, and regulation may drive others. Ex.) • Spec. of anything part • Accuracy and reliability of billing statements • Time to repair • Courteousness

☞ Main purpose of CTQ control is selecting

the factors to the most important to customer. It is not hard to do, but right to do!

Common Terms
2. DPU / DPMO
Defects Per Unit : Number of defects per unit
→ Judging the process as “No good”, we could not know if it had a defect. So 6σ handling it. Ex) A Claim report has 10 blanks, 2 blanks are wrong DPU= Defect / Unit = 2 / 1 = 2

DPU

Defects Per Opportunity : Number of defects related opportunities per unit

DPO

→ Expanding concept of DPU by opportunities Ex) A Claim report has 10 blanks, 2 blanks are wrong 2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2

DPMO

Defect Per Million Opportunities : Value of DPO x 1,000,000,
→ Changing DPO to million unit because 6σ uses PPM(Part Per Million) usually Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000

Common Terms
3. Z Value
Definition of Z Value Concept of Z Value

LSL

Z= X -T σ

** ◆ It is standard normalized value for various
normal distributions* to make easy statistical analysis.
USL

Z is ratio value that difference between *** X(USL or LSL) and target is divided stadard deviation (σ).

T=μ
☞ In a Process, if six standard deviations are between spec.(USL, LSL), then we call “6σ level” . It is good process that has 3.4ppm, that is 3 or 4 defects per million.

◆ That is numeric part of σLevel.

When Z is 6, it is 6σ level.

* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ) ** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution *** USL : Upper Spec Limit / LSL : Lower Spec Limit

Common Terms
4. Process Capability Index
◆ What is Process Capability?
As Unique capability of the process, reflects uniformity degree of producing product.

Process Capability Index
µ Τ

- When the process is stable, it should be measured by degree of satisfying limits. - Computing Cp, Cpk to know How much mean is shifted and variation is good. - Cpk considers shifting mean. - K value is deference target(T) from mean.

-6σ

-3σ

+3σ

+6σ

process variation design tolerance

Cp =

Design tolerance Process variation K= | T-µ |
(Upper limit-Lower limit)/2

Cpk = Cp(1-K)

Common Terms
5. Rolled Throughput Yield

◆ Rolled throughput yield is probability ratio to accept for all processes.
Input Process 1 : 99% Accept ratio Process2 : 92% Process3 : 93%
Final Inspection : 97% Process defect ratio Control RTY Control

Object

Productivity elevation through quality improvement Defect of all processes, Equipment Model Change Loss

Apply

Tool Method

1person 1Project, Team activity

Loss by Process Final un-control Defect Ratio Good

* RTY = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%
* RTY : Rolled Throughput Yield