Understanding Six Sigma

Understanding Six Sigma Manual

6
History of Six Sigma Understanding Six Sigma

The U.S Defense system developed a system known as SQC to manage the
complex weapon system & to handle the distributed defense contractors.
SQC:- is a set of tools that originated in the Military Standards and the basis of
SQC process was 3 sigma limits which yields a rate of 2700 defects per million.
After World war 2 US companies returned to their Original strategy while the
defeated countries were rebuilding their Industries. General Mc Arthur who was
the Governor general of JAPAN at that time Imported some of the U.S. Pioneers of
SQC to help train their counterparts in JAPAN.
By 1970~ 1980 Japanese producers were renowned for their Quality & durability.
U.S Companies slowly realized that to attain the desired Quality level two things
are necessary
One should be able to measure the quality level I.e it should be Quantifiable
& Measurable.
Motorola pioneered the Use of Six Sigma , Bill Smith VP &Senior QA
Manager of Motorola is regarded as the Father of Six Sigma.
History of Six Sigma Understanding Six Sigma

Quality Management & Six Sigma

Total Optimization
of R&D,
“ Six Sigma Management” ---
Production , Sales
Lead by American Companies Six Sigma
and Service is
necessary

• Small group of sections

Total Quality
• Toward total Solution Management

Improve Product
Quality Total Quality
Control

Quality
` “ Production line focussed Improvement “
Control
--- Lead by Japanese Companies
History of Six Sigma Understanding Six Sigma

Most of service called products were

from reworked products at the factories
• Bill Smith Report Hidden Factory and Rolled throughput
Yield concept are Induced

• Actual Practice Strategy by Dr. Michael Harry

• The Malcom Baldridge Award of 1988 of Motorola

• After Motorola, Texas Instruments, ABB, Allied Signal , GE, LG

Electronics, Polaroid, Nokia, Lockheed Martin, …. Sony started
Six Sigma
Definitions Understanding Six Sigma

Population Sample Data

Total Study Group Small Group taken The facts derived
from Population from the sample

The Group of Sample

100
people who
Age and Number of
possesses a Fan
decision makers
purchasing a Fan
Definitions Understanding Six Sigma

Data Point : The single entity in the sample.

Data : The trend of data points in a sample I.e the facts derived from the sample.
Information : The data presented in a form which conveys some result, Conclusion
Sample : A Sample is a portion of the whole collection of Items (population)
Population : The population consists of the set of all measurements in which the
investigation is interested. It is also called Universe.
Statistic : A numerical value such as standard deviation or mean , that characterizes the
sample.
Statistics : An application theory & method to reach appropriate & wise decisions in
unknown circumstances.

Population The Characteristic of populaton : parameter

Sample
The Characteristic of Sample : Statistic
 Understanding Six Sigma

Types of Data
A.) Continuos Data : - The Data which can be measured and has unit
associated with it is called continuous data. It can be in fractions.
E.g Length of a Playground, Thickness of the paint coating, ect.

B) Attribute Data :- The data which can has only two options Yes/No,
True/False is called Attribute data.
E.g Quality of Food ( OK/NG),

C) Discreet Data : - The data which can be measured only in whole

number and has no units associated with it is called Discreet data. It is the
Count of the Number of Attributes E.g number of Heart Beats , Number of
Type A defects.
 Understanding Six Sigma

Characteristics of Normal Curve

Normal Distribution Curve is known as Density
Curve meaning the area under the curve is
equal to one.
A.) The Normal curve is a bell shaped curve and it
has single peak (Mode ) at the center.
B) The mean & median of the distribution are equal
and are located at the peak.
x LSL
C) The Normal distribution curve is symmetrical USL
about the mean.
D) The curve is asymptotic I.e the curve gets close
to X-Axis but it never touches it
Standard Normal curve is one having Mean=0,
and standard deviation =1.
 Understanding Six Sigma

Measures of Central Tendency of Data

A.) Mean : The mean of a set of Observations is their average. It is equal to the sum of all
Observations divided by the number of Observations in the set. E.g Consider the data set
given below

1 , 2 , 3 , 4 , 5 ; Mean = 1+ 2 + 3 + 4 + 5 = 15/5 = 3

X = X =
n
Mean of Sample, i x1 +x2 +x3 +x4+……..xn
I=1

n
b.) Median : The Median term of the given data is given by
Median = n + 1 th term, where n is the number of
2
Observations in the given data(arranged in increasing order).

E.g 3, 5 , 1 , 8 , 2 , 7 , 1 , 4 . No. of Terms = 8, Arrange data in Increasing Order = 1 , 1 , 2 , 3 , 4 , 5 , 7,

8

Median Term = 4.5th Term = 4th Term + 0.5 ( 5th - 4th Term ) = 3 + 0.5 ( 4- 3) = 3.5
 Understanding Six Sigma

Measures of Central Tendency of Data

C) Mode : The value Occurring maximum number of times

E.g 3, 4 , 3, 6, 5, 3, 7, 4 , Mode = 3

E.g Calculate the Median of the Following data :

2, 4, 6, 8, 12, 15, 10
Sol. Arrange the data in Increasing Order
2, 4, 6 , 8 , 10 , 12 , 15
No.of Observations = (7 + 1 ) / 2 = 4th Term = 8
 Understanding Six Sigma

Measures of Spread/Dispersion of Data

a.) Range : The Difference between Maximum & Minimum value.
b) Standard Deviation (  : It gives tells us about the variation in data .
c ) Variance ( It is defined as the square of the standard deviation to
account for the total variation
n observed in the data.

E.g : The Process Specification = 10 +- 2

Sol. USL = 12 , LSL =8 Range = USL - LSL = 12 - 8 = 4 Mean = 3
Data Variation Variation 2
Consider the data set 3, 2, 5, 1, 4 1 -2 4
Mean = 3 2 -1 1
3 0 0
Standard Deviation (  ) = (10/4 )1/2 = 1. 5
4 1 1
Variation (  ) = 2.25 5 2 4
0 10
 Understanding Six Sigma

Measures of Spread/Dispersion of Data

d) Quartile : It divides the total range into 4 equal parts (quarters ) and tells that in
which Quartile a particular data point is lying.

th th th
Q1 = n + 1 , Q2 = 2 * n + 1 , Q3 = 3 * n + 1
4 4 4
where Q1,Q2 and Q3 are 1st 2nd & 3rd Quartiles resp. Interquartile Range ( IQR ) = Q3 -
Q1, contains 50 % of the Total data points
Upper Limit Uu = Q3 + 1.5 IQR
Lower Limit LL = Q1 - 1.5 IQR
Eg. Calculate the First , second & Third Quartile for the data given below. Also calculate the IQR &
Upper & Lower Limits. 10, 17, 14, 23, 18 , 11 , 9, 13
Sol . Arrange data in Increasing order = 9 , 10 , 11, 13, 14 , 17 , 18 , 23

Q1 = [ ( 8 +1) / 4 ] th = 2.25th Term = 2nd Term + 0.25 ( 3rd Term - 2nd Term ) = 10 + 0.25( 1) = 10.25
Q2= 2* 2.25th Term = 4.5th Term = 13 + 0.5 (14 - 13 ) = 13.5, Q3= 3* 2.25th Term = 6.75th Term = 17.75
IQR = Q3 -Q1 = 17.75 - 10.25 = 7.50 ; Uu = 17.75 + 1.5( 7.50 ) = 29 ; UL = 10.25 - 1.5 (7.50) = -1
Six Sigma : Introduction Understanding Six Sigma

What is Six Sigma ….???????

1) Statistical Measurement :

We measure defect rates in all the Processes through an expanding

statistical concept, and we use ‘ ’in measuring process capability.

2) Business Strategy :

We gain a competitive edges in Quality, Cost, Customer Satisfaction.

3) Philosophy :

We should work smarter, not harder

Six Sigma : Introduction Understanding Six Sigma

Z Level Harvest

Sweet Fruit
Z PPM Design for Manufacturablity
5  Wall, Improve Designs
6 3.4
Bulk of Fruit
5 233 Process Characterization and Optimization
4 Wall, Improve Processes
4 6,210
Lower Hanging Fruit
Seven Basic Tools
3 66,807
3  Wall, Work with suppliers
2 308,537 Ground Fruit
Logic and Intuition
Process Defect
Capability Opportunity
Six Sigma : Introduction Understanding Six Sigma

The Percentage 68.3 %

11
Acceptable Area under 95.45 %

the Curve Increases as  99.31 %
the Z Value ( the Number 
of Standard Deviations 99.9936 %

Increases .
99.99 99 4 %

99.99 99 99 8 %


USL x LSL
(Mean)

The Area Under the Curve represents the Acceptance or Yield,

whereas the Area outside the Curve represents the Rejection
Six Sigma : D-M-A-I-C Understanding Six Sigma

Objective
Theme Selection
Theme
Selection
• Define problem
(Define) • Define range
Measurement

• Measuring capability
Y Capability OK ? Measurement
Redesign of CTQ
N • Clearfy measuring method
Analysis
Analysis • Clearfy factors
Redesign ? Y
N
• Find vital few
Improvement Improvement • Optimize process

N Capability OK ?
• Control vital few
Y Control
• Set up control system
Control
3 Vs 6Company Understanding Six Sigma

The 3 Sigma Company The 6 Sigma Company

• Spends 15-25% of sales dollars on • Spends 5% of sales dollars on cost

cost of failure of failure

• Produces 66,807 defects per million • Produces 3.4 defects per million
opportunities
opportunities
• Relies on capable prcesses that
• Relies on inspection to find defects don’t produce defects

• Belives high quality is expensive
• Benchmarks themselves against
their competition
• Believes 99% is good enough
• Defines CTQs internally
• Knows that the high quality producer
is the low cost produer
• Benchmarks themselves against
the best in the world
• Believes 99% is Unacceptable
• Defines CTQs from customers
Define-Application of Six Sigma Understanding Six Sigma

Six Sigma is a tool that can be applied to all business systems, Design,
Manufacturing, Sales & Service

Guarantee for design completion

• Selecting CTQ to meet customer requirement
R&D
• Deciding reasonable Tolerance
• Guarantee CTQ’s through capability analysis
Six Sigma

Quality Assurance in Manufacturing Stages

• Improve serious Problems
Mfg
• Real Time Monitoring
• CTQ control system

Maximizing Sales & Service

SVC • Improve cycle time & accuracy
• Cost Improvement