Step #3 – Collection of Data according to

Data Collection plan

Step 4: Process Baselining
Sigma Value -

s
Scale of Six Sigma
Sigma level -

Level of performance of the

Sigma level calculation process on six sigma scale

Discrete Data: 3
1) DPMO Method
2) RTY Method 2

Continuous Data: 1
Process Capability Method
DPMO – Defects per million
Pay opportunities Date

Amt in Words
Amt in figures

Signature

DPU = No. of defects observed/Total number of items inspected

DPO = No. of defects observed/(Total number of items inspected*Opportunity per item)

DPMO =[ No. of defects observed/(Total number of items inspected*Opportunity per

item)]*10^6

Question: A restaurant serves 1000 meals a day, out of which 100 were served
late and 50 were served cold, Each late serving and cold serving is considered
as a defect, then calculate DPMO
 RTY Method – Rolled Throughput Yield
RTY = P1*P2*P3 =
70%
90/100 80/90 70/80
100
90 80 70
P1 P2 P3 I Good - 100

10 - rework 10 - rework 10 - rework

First Pass Yield, First Time right Bad - 0

Yield = Output/Input
Y = 100%
Process Capability Method
Process Capability: Ability of the stable process to meet customer
requirement

Stable Process: A process which is free from the effect

of SCV(outliers) and the variations of the process are
constant over a period of time.
 LSL USL

Process Capability Method

Process Stability: when my process is free from SCV,
and the variations in my process are constant over a CCV
period of time.

Process Capability: It is the ability of stable process to

meet the customer requirements
  𝜎 −5
−6   4 𝜎  22
  𝜎− 23 24
 ´
25 26 27 28 +
  +
  +
 

Cp = Total Customer requirement/Total Process Variation

Cust. Order = 1000 units = Average wt = 25g+- 3g (USL – LSL)/6s
= 28 – 22/6*1
Upper Specification Limit(USL) = 25+3 = 28 Cp=1
Lower Specification Limit(LSL) = 25-3 = 22

Process Avge = 25g Data Normality test

Process variation Std.dev = 1g
CASE -1
 LSL = 22

Process Capability Method

USL = 28

Cust. Order = 1000 units = Average wt = 25g+- 3g CCV

Upper Specification Limit = 25+3 = 28

LSL = 25-3 = 22
  𝜎 −5
−6   𝜎−
  4 𝜎 20 21 22 2  3 24 25 26 27 28 +
 
Process Avge = 23g
Process variation Std.dev = 1g Cpk – Process Capability index
Cpk =Min { USL – Xbar/3s, or Xbar – LSL/ 3s}
Cp = (USL – LSL)/6s
=Min {(28 – 23)/3*1 or (23-22)/3*1}
= 28 – 22/6*1
= Min {5/3, 1/3}
Cp=1
Cpk = 0.33 UCL = Xbar + 3sigma
LCL = Xbar – 3Sigma
Sigma level = Cpk*3
= 0.33*3 = 1
If my process is operating at a level of
6 Sigma, what would be CPK?
Analyze
• Data Door Approach: Relationship between the identified causes and
the CTQ
• Process Door Approach: We use lean concepts to understand or
identify the wastes in the process and we try to eliminate the same

Data Door Approach:

Y(CTQ) = F(X) (X1, X2,X3,X4…..)

Step 1 - Identification of Probable causes and
collect the data
Cause and Effect Analysis
for probable causes
Fishbone diagram
Ishikawa diagram Man
Method
Mother
nature

Effect – High PR to PO
lead time, low
productivity, high
defects

4P
Measurement Machine
Material People
Policy
Procedure
Product
Step #2 – Prioritization of the causes

1) Pareto Analysis
2) Control Impact Matrix
Pareto Analysis
C – Freq
A - 45
B - 32
C - 24
D - 16
E–8

Wilfred Pareto
Pareto Analysis works on 80:20 principle

Cause Freq Cum Freq

A 45 45
B 32 77
C 24
Pareto Diagram/ Pareto Analysis
Vital Few
causes

Useful Many causes

Cum. Fre.
Freq. of occ %

A B C D
 Control Impact Matrix
Control – Control on the cause
Impact – Impact of the cause on the process

C–L C–H
HIGH

I-H I-H
Impact

C–H
C–L
I-L
LOW

I-L

LOW HIGH
Control
Step #3 – Data Door Approach – Validating the relationship
between probable causes(X) and the CTQ(Y)
• Data Analysis Methods

Y(CTQ) = X1, X2,X3,X4…

Hypothesis Testing
Hypothesis Testing
Hypothesis: It is a claim that I want to test or prove.

To test Hyp. I require 2 things - Claim, As is condition

Null Hypothesis (H0) Alternate Hypothesis(Ha,H1)
As Is Condition, Status Quo Claim you want to test
Always Represents equality Never comes with equality sign(it never
Hyp. Of innocence represents equality)
Hyp. Of Guilt
Research Hyp
 Actual Accepted
GP GP
GP BP

Type 1 Error(Alpha Error) (5%): Probability of rejecting null hyp. When it is

true
Actual Accepted
BP BP
BP GP

Type 2 Error(Beta Error) (10%): Probability of accepting null hyp, when it is false
Confidence level = 1 – Alpha
= 1 - 0.05
= 0.95 = 95%

P Value: Probability of getting an observed sample when null hyp. is true.

P value < Alpha Value - Reject Null Hypothesis

P value > Alpha Value – Fail to reject Null Hyp.

Population

“ P low null go, P high null Hai”

Infer the @ 95%
confidence
Sample
Sample
Type of Population Parameters
Comparison
Mean Proportion(%) Median Std. Dev.
One to 1 Sample T 1 Proportion
Standard test Test
One to One 2 Sample T Test 2 Proportions
Test
Multiple One Way Chi Square test
ANOVA for association

Steps to conduct Hyp. Test

1) Write Hyp. Statements
2) Decide the confidence level(95%)
3) Select appropriate testing method and
perform the test and obtain the p value
4) Take Decision based on p value
5) Write Conclusion
Note: When you are performing mean
tests, if the sample size is less than 30
then use T tests, else if sample size is
more than 30 then use Z tests
Correlation Analysis Y = Mx+C
• Linear Relationships
• Non Linear Relationships
Y Y Y

X1 X2 X
Y

X
Correlation Analysis
Correlation coefficient (r)

-1 to +1

+-(0.8 to 1) – Strong correlation

+-(0.5 to 0.8) – Moderate correlation
Less than +-(0.5) – Weak correlation
 Regression Analysis

Y(CTQ) X1
X2
X3

CTQ = A1*X1+A2*X2
Regression analysis gives 3 insights:
1) Out of identified causes, which of the causes are
influencing my output
2) How much percentage of variation in output is
answered due to the significant causes
3) Prediction model – by using this model you can predict
output at desired levels of input