Lean Six Sigma

1. Evolution of Six sigma

2. Objective of Six Sigma
3. DPMO Analysis
4. Six Sigma v/s CoQ
5. DMAIC
 Evolution
 What does Quality Mean?
Detecting and correcting mistakes in the product such that it meets compliance
standards.
OR
Preventing defects in the first place through manufacturing controls and product
design such that it meets performance standards.

 It all started with the company Motorola. As the real problem with the
Motorola is that their quality sinks.
 A product found defective and corrected during manufacturing had high
probability of failing during early use by customer.
 Late 1970s -Motorola started experimenting with problem solving through
statistical analysis.
 Motorola started Six Sigma approach to achieve it’s one of the top ten
corporate goal of improving the quality by ten times within five years in 1981.
 1987 -Motorola officially launched it’s Six Sigma
program as follows:
• Improve quality 10 times by 1989.
• Improve quality 100 times by 1991.
• Achieve six sigma (3.4 DPMO) performance by 1992.

 With this a new beginning of era at Motorola begins

aiming at:
 Improve the quality.
 Lower production cost.
 Lower production time.
 Focus on how the product was designed and made.
 Objective of Six Sigma

 Reduce Variation.
 Reduce Defects.
 Delighting
Customer.
 Reduce Cost.
 Reduce Cycle
Time.
Six Sigma Significance
DPMO Analysis
 When working on a Six Sigma project, accurate methods
to measure process performance metrics are critical for
understanding the current state of a process and the
value of changes made.
 One such metric to measure the process efficiency

Defects Per Million Opportunities which is the number of

defects in a sample divided by the total number of defect
opportunities multiplied by 1 million
Attribute Data
Calculation of DPMO
Six Sigma v/s CoQ
 Cost of quality (COQ) is
defined as a methodology that
allows an organization to
determine the extent to which
its resources are used for
activities that prevent poor
quality, that appraise the quality
of the organization’s products
or services, and that result from
internal and external failures.
Cost of Poor Quality (CoPQ)
 It is the cost associated with
providing poor quality products
and services.
 This cost includes labor cost,
rework cost, reject cost, material
cost etc.
 This is a hidden cost and effective
quality improvement programs can
reduce this substantially and
makes a direct contribution to
profit.
 DMADV
 DMADV is a Six Sigma framework that
is focuses primarily on the
development of a new service, product
or process as opposed to improving a
previously existing one. This approach
– Define, Measure, Analyze, Design,
Verify - is especially useful when
implementing new strategies and
initiatives because of its basis in data,
early identification of success and
thorough analysis.
 Define Phase
 The goals of the first phase are to identify the purpose of the
project, process or service, to identify and then set realistic and
measurable goals as seen from the perspectives of the
organization and the stakeholder(s), to create the schedule and
guidelines for the review and to identify and assess potential
risks. A clear definition of the project is established during this
step, and every strategy and goal must be aligned with the
expectations of the company and the customers.
 Measure Phase
 Next comes measuring the factors that are critical to quality, or
CTQs. Steps taken should include: defining requirements and
market segments, identifying the critical design parameters,
designing scorecards that will evaluate the design components
more important to the quality, reassessing risk and assessing the
production process capability and product capability. Once the
values for these factors are known, then an effective approach can
be taken to start the production process. It is important here to
determine which metrics are critical to the stakeholder and to
translate the customer requirements into clear project goals.
 Analysis Phase
 Actions taken during this phase will include: developing design
alternatives, identifying the optimal combination of requirements
to achieve value within constraints, developing conceptual designs,
evaluating then selecting the best components, then developing
the best possible design. It is during this stage that an estimate of
the total life cycle cost of the design is determined. After
thoroughly exploring the different design alternatives, what is the
best design option available for meeting the goals?
 Design Phase
 This stage of DMADV includes both a detailed and high level
design for the selected alternative. The elements of the design are
prioritized and from there a high level design is developed. Once
this step is complete, a more detailed model will be prototyped in
order to identify where errors may occur and to make necessary
modifications.
 Verify Phase
 In the final phase, the team validates that the design is acceptable to all
stakeholders. Will the design be effective in the real world? Several pilot
and production runs will be necessary to ensure that the quality is the
highest possible. Here, expectations will be confirmed, deployment will
be expanded and all lessons learned will be documented. The Verify
step also includes a plan to transition the product or service to a
routine operation and to ensure that this change is sustainable.
 For any DMADV project, there may be more emphasis on certain
components of the approach over others, though the goal remains the
same: to address an identified issue and produce desired results in a
way that can be maintained through normal operations.
DMAIC
 Define Phase

 Understanding customer/business needs

 Identify relevant stake holders
 Establish team and identify resources required
 Establish communication plan
 Identify risk and issues
 Create Hi-Level project plan
Define Phase- Roadmap
VOC & CTQ
Project charter
Project definition, or project statement is a statement of a project's scope,
objectives, and participants used in project management. It defines the
project manager's authority, outlines the project's key goals, identifies the
main stakeholders, and provides a preliminary delineation of roles and
responsibilities.

Process Mapping
Process Mapping, also known as a process flowchart, is a management tool
that diagrammatically depicts the workflow of a process or a series of
parallel processes in order to gain a better understanding of how they work
and to assist the entity in becoming more effective by identifying
improvement opportunities.
 Measure Phase
In the measure phase the team focuses on data collection which takes time and
effort
Types of Data
Sampling
• The small number of items taken from the population to make a judgment of the
population is called a Sample.

• The numbers of samples taken to make this judgment is called Sample size.

Types of Sampling

Random Sampling
Samples drawn at random.

Stratified Sampling
An attempt to draw the sample proportionately over the full operating range of the
process.
Data Collection
Process Capability
Determines if a process is capable of meeting the customer requirements or
specifications.
 Analyze Phase
In the Analyze phase, the team reviews data collected during the measure phase. The
goal is to narrow down and verify root causes of waste and defects
Identify Possible Causes

 Cause and Effect diagram

 5 Why’s
 Pareto Analysis
Process Door Approach
 Lean Thinking

 Identifying Waste
Data Door Approach

 Hypothesis Testing
 Scatter Plot
 Correlation Analysis
 Regression Analysis
 Improve Phase
In the Improve phase, teams move on to solution development
 Solutions with Lean Approach

• Kaizen
• Kanban
• Poka Yoke
• 5S
 Control Phase

The Control phase is the final phase of Lean Six Sigma. The
team focuses on how to sustain newly achieved improvements
by passing it on to other employees.
Control Chart
 Similarities of DMAIC and DMADV

 Both DMAIC and DMADV:

 Use structured methods to reduce variation and solve

problems
 Collect and analyze data to make informed decisions
 Use teams to solve problems
 Have a customer focus
 Use many of the same tools (brainstorming, FMEA, DOE)
 Differences of DMAIC and DMADV

 DMAIC addresses the current process; DMADV addresses the

design process.
 DMAIC reduces/eliminates defects (reactive); DMADV prevents

defects (proactive).
 DMAIC includes specific solutions; DMADV is part of the

solution design process.

 DMAIC includes controls to sustain the gains; DMADV

includes verification and validation of the finished design.

Thank You