Six Sigma σ

-A measure of how much

variation exists in a process
-Make processes more centric to
mean value
 Definition
• A problem-solving methodology that uses:
– human assets
– data → measurement → statistics
• To identify factors to decrease:
– waste + defects
• To increase:
– customer satisfaction
– profit
 Goals

1. Defect reduction

2. Improvement

3. Customer satisfaction

4. Maximize profit
 Old belief
(High quality = High cost)

Prevention &
Internal & external appraisal
failure costs costs
Costs

4σ

Quality
 New belief
(High quality = Low cost)

Prevention &
Internal & external appraisal
failure costs costs
Costs

4σ
5σ
6σ

Quality
 DMAIC

PDCA: Plan Do Check Analyze was employed to

achieve Six Sigma objectives, but does not offer
improvement

DMAIC: Define Measure Analyze Improve

Control accomplishes that
 Sigma Defects
Sigma Defect rate (ppm) % of poor quality Competitive level

6σ 3.4 <1%

5σ 223 10-15% World Class

4σ 6,210 15-20%

3σ 66,807 20-30%
Industry average
2σ 308,537 30-40%

1σ 690,000 >40% Non-competitive

 Steps in quality improvement
1) Identify core processes
—identify mission and vision
—create strategy
—classify core/enabling processes
—prioritize focus based on strategy
2) Establish process control system
—map key processes
—determine requirements of:
 VOC (voice of customer)
 VOE (voice of employee)
 VOB (voice of business)
—establish indicators
3) Identify performance gaps
—establish measurement systems
—determine baseline and targets
—characterize gaps
—administer PCS

4) Apply DMAIC
—define
—measure
—analyze
—improve
—control
LSL USL

6 Sigma curve

3 Sigma curve
 Basic Metrics
• Sigma level
• Capability (Cp and Cpk)
• Defective parts per million (PPM)
• Defective vs Defects
• Defects per million opportunities
• Rolled throughput yield (RTY)
• Typical lean metrics
• Cost of poor quality
 PPM: Defective parts per million
• Defects cause customer dissatisfaction
Defectives
• PPM = x 1,000,000
Total samples
 DPMO: Defects per million
opportunities
• Sensitive to the occurrence of defects
• Provide a stable measure to gauge process
performance
• Driven solely by defect quantity
Number of defects
• DPMO = x 1,000,000
Number of opportunities
 DPMO table

Yield (%) DPMO Sigma

6.68 933200 0
30.85 691500 1
69.15 308500 2
93.32 66800 3
99.38 6200 4
99.977 230 5
99.997 3.4 6
Classic Yield
• Ignore cost of Hidden Factory
• Does not take rework/scrap into consideration
Input = 100
Scrap = 3
Rework = 4
93
Classic Yield = x 100%
100
= 93%
First Pass Yield (FPY)
• Probability that all CTQ (critical-to-quality) opportunities
produced at a particular step in the process will conform
to their respective standards
• Ignores Hidden Factory

Example: Total input = 100

Process A Process B Process C

Rework = 4 Rework = 2 Rework = 1

Scrap = 1 Scrap = 1 Scrap = 1
= 95/100 = 96/99 = 96/98

95 96 96
FPY = 100 x 99 x 98 = 0.9
 Rolled Throughput Yield (RTY)
• To access the true yield of a process
• It is the probability of one unit completing all
measured steps in a process without
encountering any defects
• Show the effect of variation on both rework
and scrap
Rework = Hidden Factory
The Hidden Workplace

• Extra resources required = 1 – Yrolled throughput

• If Yrt = 0.74, then 26% is excess resources
• Total resources = 1.26, which is against 1
required for satisfying customers
Example 1

Step 1
Input = 100 Yield (in terms of available parts)
Scrap = 10 Final yield = 90%
Rework = 10 Throughput yield = 80%

Step 2
Yield (in terms of available parts)
Input = 90
Final yield = 88.9%
Scrap = 10
Throughput yield = 77.8%
Rework = 10

Step 1
Yield (in terms of available parts)
Input = 80
Final yield = 87.5%
Scrap = 10
Throughput yield = 75%
Rework = 10
Example 2

Yield RTY
0.84 -
0.92 -
0.96 -
- 0.84 x 0.92 x 0.96 = 74.18%

alternative method…
Yield DPU RTY
0.84 0.16 -
0.92 0.08 -
0.96 0.04 -
0.28 e-0.28 = 75.5%

74.18% vs 75.5%...e-dpu provides a good approximation

 DMAIC Phases
1. Define
 Project scope
 Select champion and green belts
 Develop team charter
 Estimate dollar impact
 Get leadership approval

2. Measure
 Define CTQs
 Map the process
 Identify inputs and outputs
 Develop measurement plan
 Establish baseline sigma
3. Analyse
 Make C&E Matrix, etc
 Develop input – output relationship
 Identify critical inputs
 Develop FMEA

4. Improve
 Verify critical process inputs
 Optimize critical process inputs
 Reduce varibility and compute sigma

5. Control
 Develop and implement control plan
 Transfer to operations
 Verify financial benefits
 Document process continuously
 Define Measure Analyze Improve Control
What are the Do we have
What is the What data is What do we
root causes of the right
problem available recommend
the problem solutions

Have the root How will we Is there

What is the Is the data
causes been verify the support for
scope accurate
identified solutions work our suggestion

What key How should Where should Have the What is our
metric is we stratify the we focus our solutions been plan to
important data efforts piloted implement

What graphs What clues Have we

Who are the Are the results
should we have we reduced
stakeholders sustainable
make uncovered variation
 Define - define the project goals and
customer deliverables
Customer requirements (CTQ)
Problem statement, goals and Project charter
benefits Process flowchart
Identify champion, process SIPOC diagram
owner and team Stakeholder analysis
Define resources DMAIC work
Evaluate key organizational breakdown
support structure
Develop project plan and CTQ definitions
milestone Voice of the
Develop high level process customer gathering
map
Measure - measure the process to determine
current performance; quantify the problem
Define defect, opportunity,
Process flowchart
unit and metrics
Data collection
Detailed process map of
plan/example
appropriate areas
Benchmarking
Develop data collection plan
Measure system
Validate the measurement
analysis/Gage R&R
system
Voice of the
Collect the data
customer
Begin developing the Y=f(x)
gathering
relationship
Process sigma
Determine process capability
calculation
and sigma baseline
 Analyze - figure out root causes
Histogram
Define performance Pareto chart
objectives Time series/run chart
Identify value/non- Scatter plot
value added process Regression analysis
steps Causes-effect/fishbone
Identify sources of diagram
variation 5 whys
Determine root Process map review and
causes analysis
Determine vital few Statistical analysis
Y=f(x) relationship Hypothesis testing
Non-normal data analysis
 Improve – eliminate defects
Perform Design of
Experiment (DOE) Brainstorming
Develop potential solutions Mistake proofing
Define operating tolerances (Poka Yoke)
of potential system Design of
Assess failure modes of experiments
potential solutions Pugh matrix
Validate potential QFD/House of
improvement by pilot quality
studies Failure modes and
Correct/re-evaluate effects analysis
potential solution
 Control - maintain future performance
consistency
Define and validate monitoring &
control system Process sigma
Develop standards and procedures calculation
Implement SPC Control charts
Determine process capability (variable and
Develop transfer plan, handoff to attribute)
process owner Cost savings
Verify benefits, cost calculations
savings/avoidance, profit growth Control plan
Close project, finalize documentation
Communicate to business, celebrate
 DMAIC vs DMADV
• DMAIC > DMADV when:
– Product is in existence
– But not meeting customer satisfaction
• DMADV > DMAIC when:
1. Product is not in existence and need to be
developed;
2. Existing product optimized but does not meet
customer satisfaction or achieve six sigma level