Chapter 10

Principles of Six Sigma

P i r z a d a
.

What is this machine called?

Six Sigma
The Statistical Basis

Defects per unit (DPU)

Defects per million opportunities (dpmo)

dpmo = DPU x 1,000,000/ opportunities for error

DPU = Defects discovered/ Units produced
Six Sigma
.
 Six Sigma
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No. of Defective parts per million

Quality Level
Off- 3- σ 3.5- σ 4- σ 4.5- σ 5- σ 5.5- σ 6- σ
centering
0 2700 465 63 6.8 0.57 0.034 0.002
0.25-σ 3577 666 99 12.8 1.02 0.1056 0.0063
0.5-σ 6440 1382 236 32 3.4 0.71 0.019
0.75- σ 12288 3011 665 88.5 11 1.02 0.1
1- σ 22832 6433 1350 233 32 3.4 0.39
1.25- σ 40111 12201 3000 577 88.5 10.7 1
1.5- σ 66803 22800 6200 1350 233 32 3.4
1.75- σ 105601 40100 12200 3000 577 88.4 11
2-σ 158700 66800 22800 6200 1300 233 32
Categories of Quality Problems
1. Conformance problems, system worked before, not
performing

2. Unstructured performance, poor sales

3. Efficiency problems, cost and productivity

4. Product design problems, new CTQs

5. Process design problems, designing new processes

Project Selection for Six Sigma

Financial return

Impact on customer & organizational effectiveness

Probability of success

Impact on employees

Fit to strategy and competitive advantage

Six Sigma Problem Solving

.
Customer Issues
Customer Importance

Projects Correlation to customer Issues

 Six Sigma
Customer Relationship to
importance customer importance
0 Not Important
3 Slightly important
5 Important
8 Very important
10 critical

Project rank Relationship to

customer importance
0 No correlation
3 Very little correlation
5 Some correlation
8 High correlation
10 Complete correlation
.

Customer Issues

Customer Importance 8 5 7 10 3 3
Project
Projects Correlation to Customer ranking metric

Order fill process flow 5 8 3 3 5 0 146

optimization
Replenishment cycle time 5 8 5 0 0 0 115
reduction process
Customer service feed back 5 3 3 8 0 5 171
reporting
Delivery vendor certification 0 10 8 0 0 0 106
IT upgrade process integration 7 5 0 8 8 3 194
Methodology
The DMAIC: Define –Measure – Analyze –Improve
Define
Problem definition
Data required
Where to find?
Data sources (s)
Optimizing data acquisition
Measure
1 Formulate targeted questions
2 Use appropriate data analysis tool
3 Define data collection points
4 Select unbiased & effective data collector
5 Evaluate environment/ experience
6 Design a simple data form
7 Instructions for data collector
8 Test # 6 and # 7
9 Train the data collector
10 Audit the process/ validate the results.
Analyze
Why defects, errors and excessive variations occur?
1 Lack of knowledge (process) Increased variation
2 Lack of knowledge (customer)
3 Lack of control of materials & equipment
4 Inadvertent errors
5 Waste and complexity unnecessary steps, excess inventories
6 Poor design specifications, inadequate testing
7 Misjudgment of process capability
8 Lack of training
9 Poor instrument calibration & testing
10 Inadequate environment e.g. light, temperature, noise.
Improve
Osborn Checklists

Put to other uses?

Adapt?
Modify?
Magnify?
Minify?
Substitute
Rearrange?
Reverse?
Combine?
Control
How to maintain the improvements?
Ensure key variables remain within acceptable range
 Establishing new standards & procedures.
 Training workforce
 Follow-ups on improvements
 Monitoring (reviews, SPC etc.)
Six Sigma
Tools and Techniques
 Elementary statistical tools
 Advanced statistical tools
 Product design and reliability
 Measurement
 Process control
 Process improvement
 Implementation and team work
Design for Six Sigma
Six Sigma Black Belt Training
Week 1 Week 2 Week 3 Week 4

•Overview •Statistical thinking •Design of •Control plans

•Process planning •Hypothesis testing Experiments •SPC
•Process mapping •Correlation •ANOVA •Mistake proofing
•QFD •Simple regression •Multiple •Team
•Failure mode & •Team assessment regression development
effect analysis •Facilitation tools
•Organizational
effectiveness
concepts
•Basic statistics
•Process capability
•Measurement
systems analysis
Design for Six Sigma
Salient Features
A high-level architectural view of the design
Use of CTQs with well defined technical requirements
Application of statistical modeling and simulation
approaches
Predicting defects, avoiding defects, and performance
prediction
Examining the full range of product performance
using variation analysis of subsystems and
components
Team Processes and Project
Management
Interdisciplinary nature requires ‘perfect’ team work
Effective six sigma deploys a leadership structure

Success requires:
 Organizational effectiveness
 Team assessment
 Facilitation tools
 Team development
Team structure depends on cooperation,
communication and clarity. 60% failure are
because of failure in the ‘mechanics’ of team
operation.
Six Sigma in Services and Small
organizations
Characteristics

Problem Metric
- to be solved
- To work with

Process
- Generating the problem
Six Sigma in Services
Four key measurements to examine the
performance
Accuracy, Correct financial figures, completeness of
information
Cycle time, Time to complete a process
Cost, Internal cost
Discovering and analyzing
Customer satisfaction “hidden factories” helps in
improving the processes.
Six Sigma & Lean Production

Elimination of waste

 Defects
 Unnecessary steps
 Unnecessary movement
(people + material)
 Waiting line
 Excess inventory
 Overproduction
 Six Sigma & Lean Production
Key tools used in lean production

 5 S’s [Sort-Set in order-Shine-Standardize-Sustain]

 Visual control, activities placed in plain sight
 Efficient layout and standardized work
 Pull production, Kanban, JIT
 Six Sigma & Lean Production

 Single minute exchange of dies (SMED), rapid

changeover of tooling
 Total productive maintenance, availability of
equipment when needed
 Source Inspection, guaranteeing conformance
 Continuous improvement, link to six sigma
 Pull production, Kanban, JIT
Six Sigma and Lean Production
Six Sigma
Six Sigma

P
 Thank You!
For your interest in the lecture.
.

What word in Urdu

is equivalent to
Quality?
.

Where Do We Stand?
 .

When a new product is created

or upgraded, there are several
stages in development before
the product can be sold in the
commercial marketplace. The
first stage is the alpha stage, in
which the product is tested by
software testers within the
When company
a new andproduct
debugged as is created or upgraded,
necessary. A beta version is the
therename
areforseveral
the secondstages
stage of in development before
the product can inbewhich
software testing, soldit isin the commercial
released for free
marketplace. Theor afirst
reduced
stage is the alpha stage, in
price to a group of users.
which the product is tested by software testers
within the company and debugged as necessary.