Six Sigma

Technical Definition of Six Sigma

Technical Definition (Motorola)

75%
LSL USL
±1.5 s
12.5% 12.5%

Cp=2 Cpk=1.5 Cp=2 Cpk=1.5

3.4 DPMO 3.4 DPMO
Cp=Cpk = 2

6s -5-5s
- -4-4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s

6s to LSL 6s to USL
Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and Customer satisfaction
What is Six-Sigma?

• Management mandated and directed improvement

program focused on breakthroughs in financial
performance and customer satisfaction
• Uses Champions, Black Belts and Green Belts to
facilitate change
• Focused on core business and Customer needs
• A systematic method for process and product
improvement
• A Greek symbol for measuring performance variation
• A metric for evaluating performance quality
• A standard of excellence (3.4 defects per million
opportunities)
Customer Satisfaction
Satisfaction + Efficient
Efficient Systems
Systems ==
Improved
Improved Profitability
Profitability

Two types of projects to improve financial performance:

Increase Revenue “Grow the Business”
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process “workflow”
Improve process performance and reduce waste using lean principles
Reduce Process Variation & Defect Rates

Off-Target Too Much Variation

Centered
On-Target
Center Reduce
Process Spread

The objective is to understand customer

requirements and reduce
process variation and defects
Breakthrough and Continuous Improvement

Breakthrough Strategy

1 2 3 4 5
Strategic Business and Quality Metrics

CSI, Sales, delivery times, cost per

unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)

Management objectives
and dashboard forms the
core of the strategic
Business & Quality Metrics
and is flowed down to
other departments and
process areas to provide
leading and lagging
indicators of performance
Hierarchy of Operational Dashboards

Can we see measurable

Executive
Dashboard
progress in our key business
critical metrics?

Level 1
Processes
Director
Level

Level 2
Processes
Manager
Level

Level 3
Processes
Engineering
Level

Level 4
Processes
Operator
Level
Six Sigma DMAIC Road Map

Define
Identify Project, Champion and Project Owner Key Analytical Tools
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis Process Mapping and
Map the Process
Develop Project Plan
Modeling
Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Measurement Systems
Develop Data Collection and Sampling Plan
Validate the Measurements
Analysis & Process
Measurement Systems Analysis Capability
Determine Process Capability and Baseline

Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Statistical Tests, Modeling &
Determine Root Cause(s) Using Data Root Cause Analysis
Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot Brainstorming Design
Implement Solution
Determine Solution Effectiveness using Data of Experiments, FMEA, &
Control Validation
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution Statistical Process Control
Close Project and Communicate Results
Six Sigma Results

Improved Customer satisfaction

• Assure products and services meet customer
requirements
Improved quality, efficiency and cost of goods sold
• Waste, defect and variation reduction
• Financial savings (hard and soft)
Self-sustaining infrastructure
• Defined roles and responsibilities
• Empower Champions, Black Belts and all employees to
make meaningful improvements in performance
• Communication
Commonality
• Language, training materials, tools & software
• Methodology
• Expectations
• Solutions
• Financial tracking (establish, maintain metrics)
Interrelationship Digraph of Six Sigma Infrastructure
DMAIC Process Improvement Methodology
DMAIC Process

Establish Controls on the critical Xs so

the improvements will be maintained

Identify ways Metrics (Ys) linked to

to improve CTQs
the process X1
Y1 Define the Problem
and validate X2 PROCESS Y2 Project Objective
X3
the solution X4
Y3
Project Goal
Measure and Analyze
data and process
performance to determine
the critical variables and
root cause of the problem
Six Sigma DMAIC Define

Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Define Quality Tools

Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram
“Define” Flow

VOC, Effort/Impact
Examine Analysis
Candidate
Projects

Develop and
Approve Project
Define Customer Charter
CTQs

Complete
SIPOC and
Process Map
 DMAIC
Critical to Quality (CTQ) Characteristics Methodology
Define

Detailed
Specifications
Use the tree diagram to
define Customer CTQs Response Performance to
(Y) Schedule

Deviation from schedule in

Measure
Customer completed units
Requirement
100% of committed ships
Customer Product prior to 5:00 pm as received
Target
Needs arrives on-time on Customer receiving dock

Specification LSL = 0 hours late

Limit(s) USL = 6 hours early

Allowable
defect < 3.4 DPMO
Rate
 DMAIC
Potential Projects Methodology
Define

Determine a
Conduct
candidate
effort to Candidate Six
project list and
impact Sigma Project(s)
potential
analysis and
benefits:
prioritize the Project
Manufacturing project list Champion and
Materials Owner
Management
NPI 11

Finance 9

Design 7
Impact
Impact
HR 5

Projects with high impact are 0

0 3 5 8 10 13

preferred Effort
 DMAIC
Develop Charter Methodology
Define

In this step you will establish

direction for the project
by documenting
• Problem
• Objective & Scope
• Goal/target
• Resource requirements
• Financial benefits
• Strategic benefits
• Team resources
• Project approval
Begin Mapping the Process with a SIPOC
DMAIC
Methodology
Define
Move to a detailed Process Map
DMAIC
Methodology
Define
Six Sigma DMAIC Measure
DMAIC
Methodology
Measure

Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline

Measure Quality Tools

Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability
“Measure” Flow

Data Collection Plan

List Of & Sample Size
Measures
(Xs and Ys)

MSA, GR&R,
Data Collection,
Process Baseline Inspector
and Capability Effectiveness
Determination

Goal
Restate
Add Baseline Improvement
Specifications Goals
and Compute
Sigma and
Capability
Using QFD to Prioritize and DMAIC
Methodology
Select Project Ys and Xs Measure

Translate
customer
requirements
into objective
measures and
prioritize
project
metrics
 DMAIC
Performance Standards for Each Y Methodology
Measure

All Processes Need Clear Specifications

Larger is Better Smaller is Better Target is Best

One-sided - lower specification limit only Target zero and upper specification limit Two-sided specifications

LSL USL LSL USL

Unacceptable Good Unacceptable

Unacceptable Good Good Unacceptable
Develop Data Collection Plan
DMAIC
Methodology
Measure

Elements for a data collection plan

Data means nothing… without an understanding of what the data

is, how it was collected, and the conditions under which it was
measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problem
MSA for Validated Measurement
DMAIC
Methodology
Measure

Short Term Long Term

Capability Capability
True Value

xA Accuracy
xB
xC Reproducibility xA
xB Stability
Repeatability xC

First period of time Second period of time

Useful for characterization of variable gages

and inspection capability
The data is only as good as the quality of the
measurements
Six Sigma DMAIC Road Map
DMAIC
Methodology
Analyze

Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data

Analyze Quality Tools

Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph
Analyze Flow

Project Data
Xs and Ys

Analysis and
Stratification of Data

Root Cause Root Cause

Analysis Validation
Summary

% Explained and % Unexplained

Benchmarking
DMAIC
Methodology
Analyze

No company is the best at all it does. Typically

there are some core competencies that make a
company great. There is much to be learned by
benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine. This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.
Benchmarking often speeds up the solution
generation process.
Root Cause Analogy
DMAIC
Methodology
Analyze

Like pulling weeds… unless we address

the root that causes the problem, poor
results will keep coming back.
Addressing the results or symptoms of a
problem will never provide lasting
solutions - given a little time… the
problem will come back
We need to understand the Root
Cause of the problem from our
problem statement
Forward Problem Solving Versus Backwards
DMAIC
Methodology
Analyze

Define Problem
Collect Problem Related Data

Forward Analyze Data

Problem Solving Determine Root Cause(s)
Validate
No Idea of Root Cause Determine what is unexplained

Define Problem
List Probable Root Causes
Backwards
Collect Supporting Data
Problem Solving
Validate
Determine what is unexplained
Strong Idea of Root Cause
Evaluate Data to Determine Root Cause
DMAIC
Methodology
Analyze

Goal is to determine
cause & effect
relationships
Analysis of Data
DMAIC
Methodology
Analyze

Provides the ability to visualize the

relationship between process
variables and to understand the
source and fundamental behavior of
problems
Analyze the Process Map for Waste DMAIC
Methodology
Analyze

When Mapping the Process Consider the Following:

What you think it is... What it actually is... What it could be...
Root Cause(s) Validation and Summary
DMAIC
Methodology
Analyze

• List all probable Root Cause(s)

• Rank them in terms of effect size
• Determine the additional tests and
or manipulation you plan to use to
validate the factors (X) which
have the greatest effect on the
response (Y)
• Identify potential methods for
controlling the factors which
create the problem
• When validation is complete
summarize all selected Root
Cause(s) and their effect size
Six Sigma DMAIC Improve
DMAIC
Methodology
Improve

Improve Activities
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data

Improve Quality Tools

Design of Experiments
Brainstorming
FMEA
Risk assessment
Improve Flow DMAIC
Methodology
Improve

Design Experiments
Based on RCA
where appropriate
Brainstorm Potential
Solutions, Costs,
Risks and Benefits

Test and Validate Review and approve

solutions solutions with
Management

N
Implement changes Examine
and determine Reach opportunities for
improved process Goals? standardization
capability. Y and translation
Consider Solutions That Remove Process Waste
DMAIC
Methodology
Improve

Seven muda:
1. Over production ahead of demand
2. Waiting for the next process step or information
3. Transporting materials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motion by employees that is unnecessarily
7. Producing non-conforming parts

For each area of waste, examine each process step to determine if

waste occurs in the operation and how to remove the waste from the
production system
Solutions Centered on Lean Methods
DMAIC
Methodology
Improve

Production
Control

Material
Flow

Machine
Management

Reduce Workplace
inventories and
Management
production costs
while improving
quality
Process
Management
DOE to
to Characterize,
Characterize, Improve
Improve the
the Process
Process or
or Product
Product and
and DMAIC
Methodology
Get
Get Ready
Ready to
to Control
Control Improve

Design experiments which improve the

robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.

Once experiments are

complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
 DMAIC
Evaluate Improvements in Series Methodology
Improve

Installed
Retrained the New
Workforce on Process
the Process Equipment

DPU

(miss, no change) (hit, improvement)

Implement one solution at a time. Allow for sufficient time

to determine effect, then move to next solution.
Six Sigma DMAIC Road Map
DMAIC
Methodology
Control

Control Activities
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results

Control Quality Tools

Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect
“Control” Flow

Select SPC controls

Based on Solution,
where appropriate
Brainstorm
appropriate controls
to sustain the gains

Implement and Review and approve

validate controls control plan with
Management

Realize savings and

Determine long
determine final
term owner and
financial benefits and
close the project
ROI
Benefits Of Control Phase DMAIC
Methodology
Control

25 Process
Process
Process Improvement Improvement
Improvement
20

15
No Controls
Improvement

10

0
1
9

105

121
17
25
33
41
49
57
65
73
81
89
97

113
Time
Process Controls
TYPES of CONTROLS
Measurement Based Control
Management Dashboards & Review
Statistical Process Control
Documentation
Process Flow Diagrams
Product Drawings, Schematics
Process Management Plans
Written Procedures
Training
Design
Design out Product Problems
Mistake Proofing
Robust Design Concepts
DMAIC
Methodology
Control
Test & Inspection
Test (error prone)
Inspection (poor effectiveness and costly)
Periodic Checks
Scheduled Maintenance
Scheduled Calibration
Training and Operator Certification
Audits
Periodic Management Reviews
Incentives
Measures which are associated with a bonus
Measures which are associated with a penalty
Elements of a Control System
DMAIC
Methodology
Control

Sensor (measurement technology & control chart)

Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention
Control Logic (OCAP)
A predefined set of actions to follow
that are alarm specific
Validate (next sample)
Assure the action was effective

Add alarms where needed and assure we do not ignore valid

alarms. SPC methods should be used to establish alarms.
Summary

• There are tremendous improvement and savings available to

companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality
• Six Sigma requires Leadership from the Executive Staff
• The roadmap is clear and the methods for improvement are
well defined
• Software tools make the data collection and analysis clear
• Development of an implementation and training plan is the
next step
THANK YOU