Demings Theory

 Create consistency of purpose toward improvement of product and service with aim to become competitive and to stay in business and to provide
jobs
 Adopt the new philosophy. In the new economic age one must awaken to the challenge and take leadership for change
 Cease dependence on inspection to achieve quality. Build Quality in the product in the first phase.
 End the practice of awarding business on the basis of price tag. Move toward a single supplier for any one item on a long term relationship of loyalty
& trust
 Improve constantly the system of production & service to improve quality & productivity and thus reduce cost
 Institute training on the job
 Institute Leadership
 Drive out fear so that everyone may work efficiently for the company
 Break down barriers between the departments
 Eliminate slogans, exhortations and targets for work force asking for zero defects and new level of productivity.
Eliminate Management by Objective.
 Remove barriers that rob the hourly workers, management and engineering people their right to pride of workmanship
 Institute a vigorous program of education and self improvement
 Put everybody in the company to work to accomplish the transformation
 Jurans Theory

 Convince others that a breakthrough is needed that is convince those responsible that a change in
quality level is desirable and feasible
 Identify the vital few projects – that is determine which quality problem areas are most important
 Organize the breakthrough in knowledge that is define the organization mechanisms for obtaining
missing knowledge
 Conduct the analysis – that is collect and analyze the facts that are required and recommend the actions
needed
 Determine the effect of proposed changes on the people involved and find ways to overcome the
resistance to change
 Institute controls to hold the new level
 Index
CLICK on the boxes below to navigate
1. Basic concepts of Six Sigma

2. Fundamentals of the breakthrough strategy

3. Define phase

4. Measurement phase

5. Analysis phase

6. Improvement phase

7. Control phase

End slide show

 Levels of Sigma and defect rate

Quality level % Quality Defective PPM*

3 Sigma 99.73 66807

4 Sigma 99.9937 6210

5 Sigma 99.999943 233

6 Sigma 99.9999998 3.4

*Parts Per Million

 Visible and hidden costs

•Scrap
•Rework Visible costs
•Warranty costs

• Conversion efficiency of materials

• Inadequate resource utilization

• Excessive use of material

• Cost of redesign and re-inspection Hidden Costs

• Cost of resolving customer problems

• Lost customers / Goodwill

• High inventory
 Cost of quality at various levels of Sigma

Sigma Defect rate(PPM) Cost of quality Competitive level

6 3.4 <10%
World
5 233 10-15% Class

4 6210 15-20%
Industry
3 66807 20-30% Average

2 308537 30-40%
Non
>40% Competitive
1 6,90000
 Impact of Six Sigma

The Six Sigma strategy affects five fundamental areas

of business :-
1. Process improvement
2. Product & service improvement
3. Customer satisfaction
4. Design methodology
5. Supplier improvement

The business improvement mechanism is shown in the

next slide.
 Six Sigma business improvement mechanism

Critical
Business Process
Suppliers Inputs Customer
Process Outputs
Requirements

Defects

Variation in output of processes

causes defects
 Reasons to adopt Six Sigma

In the past, quality programs adopted by organizations

focused on meeting customer’s needs without due
consideration of visible and invisible costs. Thus, many
organizations managed to produce high quality goods, but at a
comparatively high cost.
However, today in the fiercely competitive market, the
organizations have no choice but to offer the best quality
products and services at the minimum cost - which is the
purpose and objective of Six Sigma.
 Reasons to adopt Six Sigma

• Organizations which achieve significant quality

improvement earn 8 - 10 % better prices.
• Organizations which achieve a superior quality position
are 3 times more profitable than those with inferior levels
of quality.
• Organizations which improve their quality, gain 4-5 % in
market share each year.
• Each significant positive shift in process capability equates
to 10 times improvement in profitability.
 Global acceptability

Six Sigma approach was initially developed in Motorola

and greatly refined during its application in General
Electric. This is what CEO, GE Power systems has to
say about Six Sigma.
“Quality (Six Sigma)… The Pride and Commitment is the most
pervasive and all encompassing initiative we (GE) have ever
launched. Quality is the fabric by which all of us will be bound
together, and how our daily activities and contributions can be
measured both internally and externally by our customers when
they vote with their next order”.
Mr. Robert.L.Nardelli
 Success stories - General Electric

General Electric’s, Jack Welch describes Six Sigma as

the most important initiative GE has ever undertaken. GE
had an operative income of 10% for decades and they were
not able to improve this despite various efforts. After
implementation of Six Sigma GE was able to improve its
operative income from 10% in 1995 to 16.7% in 1998.
 Allied Signal

Allied Signal, which was on the verge of bankruptcy was

made profitable by CEO Larry Bossidy through Six Sigma.
The company implemented Six Sigma program in 1994.
The cumulative impact on the savings in the direct costs
during this period was more than US$ 2 billion.
 Asea Brown Boveri

ABB, after application of Six Sigma has reduced

measurement equipment error by 83%. The company also
made drastic improvements in material handling resulting in
an annual estimated cost savings of US $775000.
 Challenge for the Indian companies

It is high time, that Indian companies also start

implementing Six Sigma for making breakthrough
improvements and to remain globally competitive.
 Fundamental steps

There are 6 fundamental steps involved in applying the breakthrough strategy for achieving Six
Sigma. These 6 steps are :-
• Define
• Measure
• Analyze
• Improve
• Control
• Standardize
 The Six Sigma roadmap- Breakthrough strategy

Stage Phase Objective

Identify key business

BREAKTHROUGH STRATEGY

Identification Define
issues

Measure Understand current

Characterization performance levels
Analyze

Improve Achieve breakthrough

Optimization Control improvement

Integrate Six Sigma in

Institutionalization Standardiz
day to day functioning.
e
 Define phase

This phase defines the project. It identifies critical

customer requirements and links them to business needs.
It also defines a project charter and the business processes
to be undertaken for Six Sigma.

Note: This phase is extensively covered in a separate chapter “Define phase”.

 Measurement phase

This phase involves selecting product characteristic, mapping

respective process, making necessary measurements and
recording the results of the process. This is essentially a data
collection phase.

Note: This phase is extensively covered in a separate chapter “Measurement phase”.

 Analysis phase

In this phase an action plan is created to close the “gap”

between how things currently work and how the organization
would like them to work in order to meet the goals for a
particular product or service. This phase also requires
organizations to estimate their short term and long term process
capabilities.

Note: This phase is extensively covered in a separate chapter “Analysis phase”.

 Improvement phase

This phase involves improving processes/product performance

characteristics for achieving desired results and goals. This phase
involves application of scientific tools and techniques for making
tangible improvements in profitability and customer satisfaction.

Note: This phase is extensively covered in a separate chapter “Improvement phase”.

 Control phase

This phase requires the process conditions to be properly documented

and monitored through statistical process control methods. After a
“settling in” period, the process capability should be reassessed.
Depending upon the results of such a follow-up analysis, it may be
sometimes necessary to revisit one or more of the preceding phases.

Note: This phase is extensively covered in a separate chapter “Control phase”.

 Standardization phase

This phase requires institutionalizing Six Sigma into day to

day working of the organization. In this phase the Six Sigma
gains derived by certain specific projects are applied to the
other projects as well for optimum business results.
 The breakthrough strategy

Each phase is designed to ensure that :-

• Companies apply the breakthrough strategy in a systematic way.
• Six Sigma projects are systematically designed and executed
and
• The results of these projects are incorporated into running the
day-today business.
 Strategy at various levels

Almost every organization can be divided into 3 basic levels :-

1. Business level
2. Operations level
3. Process level.
It is extremely important that Six Sigma is understood and
integrated at every level.
 Strategies at various levels

• Executives at the business level can use Six Sigma for

improving market share, increasing profitability and
organizations long term viability.
• Managers at operations level can use Six Sigma to improve
yield and reduce the labor and material cost.
• At the process level engineers can use Six Sigma to reduce
defects and variation and improve process capability leading
to better customer satisfaction.
 Business perspective of the breakthrough strategy

• Define what plans must be in place to realize improvement of

each state.
• Measure the business systems that support the plans.
• Analyze the gaps in system performance benchmarks.
• Improve system elements to achieve performance goals.
• Control system-level characteristics that are critical to value.
• Standardize the systems that prove to be best-in-class.
Operations perspective of the breakthrough strategy

• Define Six Sigma projects to resolve operational issues.

• Measure performance of the Six Sigma projects.
• Analyze project performance in relation to operational goals.
• Improve Six Sigma project management system.
• Control inputs of project management system.
• Standardize best-in-class management system practices.
 Process perspective of the breakthrough strategy

• Define the processes that contribute to the functional problems.

• Measure the capability of each process that offers operational
leverage.
• Analyze the data to assess prevalent patterns and trends.
• Improve the key product/service characteristics created by the key
processes.
• Control the process variables that exert undue influence.
• Standardize the methods and processes that produce best-in-class
performance.
 Why the name “Black Belts”?

The name black belts comes from the sport of Karate. Both
Karate and Six Sigma depend on mental discipline and
systematic, intensive training. Just as black belts in Karate
depend on power, speed and decisiveness, Six Sigma black
belts should also depend on the same qualities. Just as the
black belts continuously reposition their bodies, Six Sigma
black belts also must be able to reposition themselves as
they move from one project to another.
 Characteristics of Six Sigma Black Belt

• Understands the “big picture” of the business.

• Focuses on results and understands the importance of the bottom line.
• Speaks the language of money, time, organizational objectives.
• An expert in SPC and continuous improvement tools.
• Capable of consulting, mentoring and coaching.
• Drives change by challenging conventional wisdom.
• Anticipates and confronts problems proactively and solves them.
 Black Belt training

While the Six Sigma methodology needs the involvement of

all people across the organization, the bulk of implementing
the breakthrough strategy rests on black belts. Black Belts
possess the Six Sigma knowledge and skills necessary to
implement, sustain and lead a highly focussed Six Sigma
initiative within the organization.
 Black Belt training

Black Belt training is divided into four sessions. Each session

is organized around the four core phases of break through
strategy i.e. Measurement, Analysis, Improvement & Control.
Usually the black belt training is completed in four months
with one week devoted to class room instructions for each
phase followed by three weeks in application of knowledge to
the assigned project. The training program for each phase is
depicted on the following slides.
 Black Belt training - Measurement phase
Training period 4 weeks ( 1 Week classroom instructions, 3 weeks on projects )

Components of training Tools used*

• Select CTQ characteristic Customer surveys, QFD, FMEA

• Define performance standards Blue prints, customer surveys

• Establish data collection plan, Histograms, control charts

validate measurement system &
collect data.

*These tools have been covered in the relevant chapters.

 Black Belt training - Analysis phase
Training period 4 weeks ( 1 Week classroom instructions, 3 weeks on projects )

Components of training Tools used*

• Establish process capability Process capability indices (Cp, Cpk),

• Define performance objective Benchmarking

• Identify variation sources Control charts, FMEA, Cause &

effect diagram, Histograms.

*These tools have been covered in the relevant chapters

 Black Belt training - Improvement phase
Training period 4 weeks ( 1 Week classroom instructions, 3 weeks on projects )

Components of training Tools used*

• Screen potential causes Pareto Analysis, FMEA, Cause &

Effect.

FMEA, Process flowcharting, Cause

• Discover variable relationships & Effect.

Design of Experiments, Process

• Establish operating tolerances capability study.
& pilot solution

*These tools have been covered in the relevant chapters

 Black Belt training - Control phase
Training period 4 weeks ( 1 Week classroom instructions, 3 weeks on projects )

Components of training Tools used

• Validate measurement system Process flowcharting

• Determine process capability Capability indices

Mistake proofing, SPC,

• Implement process control
Risk management.
system & project closure

*These tools have been covered in the relevant chapters

 Objectives of define phase

• To identify the process or product for improvement.

• To develop an action plan.
• To obtain formal project approval.
 Key steps of the define phase

A. Identify project which are critical to customers.

B. Develop team charter / action plan.
C. Define process map.
Each step is discussed in detail in the following slide.
 A. Identify projects critical to customers

The following steps are required for this purpose :-

I. Identify present & future customers.

II. Analyze voice of the customer.
III Translate customer needs into Critical to Quality (CTQ)
requirements.
IV. Integrate CTQs with business strategies.
V. Identify projects for breakthrough improvements.
 A. Identify projects critical to customers

The following sources of input can be used to build the

database on the customers and for identification of CTQs.

• Customer surveys
• Customer complaints
• Internal problems
• Benchmarking data with key competitors and
• Brainstorming
 B. Develop a team charter

The following steps are required for developing a team

charter / action plan:-
I. Develop a business case - Relevance of the project,
consequences of not undertaking the project and how does
it fit with the business goals.
II. Define problem / goal statement - Why are we not
meeting our customer requirements, how significant is the
problem, when & where do the problems occur and what is
the impact of the problem.
 Develop a team charter

III. Assess project scope - Which processes will the team focus
on, resources available to the team, the start & the end point.
IV. Define timeframe - This should contain complete list of
activities to be undertaken alongwith realistic time frames.
V. Define roles and responsibilities - Define the roles and
responsibilities of various team members.
 C. Define process map

The following steps are required for process mapping :-

I. Define process
II. Connect the customer to your process
III. Map business process - The process map for the project
includes customer and their key requirements, inputs,
suppliers, process steps and outputs.
 Objectives of Measurement phase

• Collect data for identified projects.

• Characterize data by using mean, standard deviation
and z value.
• Understand various levels of sigma process.
• Measure non-conformances.
 Understanding & controlling variation

Variation is a basic phenomenon of nature. This effects all

entities including products and processes. Variation is found in
all stages of product life cycle including design & development,
manufacturing, service and supplier processes. Controlling
process variation is a key to achieving Six Sigma quality.
 Understanding & controlling variation

Variation is responsible for the difference between one unit of

product and another. It can also be defined as the difference
between specifications and customer requirements. Variation
is present in all processes. When it is present in one or more
characteristics of a product or process, it causes poor quality
and customer dissatisfaction.
 Understanding & controlling variation

Products and processes are expected to vary because no two things are
exactly alike. Differences result from material characteristics, methods,
people, machine and environmental factors as depicted on the next slide.
 Sources of variation

Material Methods Environment

•Assemblies •Procedures •Noise level
•Components •Policies •Humidity
•Suppliers •Accounting •Temperature
•Consumables •Lighting

Variation

People Machine Measurement

•Training •Technology •Counting
•Experience •Variability •Instruments
•Skill •Tooling •Gauging
•Attitude •Fixtures •Tests
 Causes of variation

Causes

Chance / Inherent Causes Special / Assignable Causes

They have the influence on They influence the output
the output all the time. only once in a while.
 Chance / inherent causes of variation

Chance or inherent causes are sources of variation which are

always present because of small day-to-day variables. These
causes are inherently part of the process (or system) and
affect everyone working in the process. They are typically
due to a large number of small random sources of variation.
Chance causes also contribute to the output variability
because they themselves vary.
 Chance / inherent causes of variation

Each chance/inherent cause typically contributes a small

portion to the total variation in process outputs. Inherent
causes usually have a nonsystematic, random appearance.
Process or system variability is defined in terms inherent
causes because they are regular contributors. The variables
involved in inherent causes may change slightly from day to
day, but this is natural. They will always be present, and the
best way to stay ahead of this situation is to plan for it.
 Special / assignable causes

These are causes that do not occur naturally and are unusual.
These types of causes are not inherent part of the process (or
system) all the time or do not affect everyone but arise because
of specific circumstances. Special causes are sporadic
contributors and are due to some specific circumstances.
Process or system variability is defined without them. Special
causes can be identified and efforts can be made to minimize
their influence on the process.
 Visually summarising data - Histograms

Histograms are one of the simplest ways to summarize the data in the visual
form. Histograms give us the graphical picture of the data . It graphically
depicts the frequency of occurrence of an event. On the X axis, the measured
values or scale is plotted, and on the Y axis the frequency is plotted.
Histograms are extremely important in analyzing variation in the processes.The
example of an histogram is shown on the following slide.
 Visually summarising data - Histograms

60

50

40
Frequency

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
CTQ ( Critical to quality ) characteristic
 Measurement of central tendency -Accuracy

Accuracy is defined as closeness of agreement between

observed values and known reference standard.
Accuracy can be measured by measuring central tendency of
the process.
 Accuracy

There are three popular measures of accuracy:-

• Mean

• Mode

• Median

The most commonly used measure of accuracy is mean ( simple

arithmetic mean). Hence for the purpose of Six Sigma we confine
our study on Mean only.
 Measurement of accuracy

Mean - it is the arithmetic average of the measurements.

To find the mean, all the measurements X1, X2, X3, ……, Xn
are added and their sum is divided by the number of
measurements, n. Mathematically it is represented as:-

( X1 + X2 + X3 +……+ Xn)
Mean X =
n
 Measurement of dispersion - Precision

Precision is the measure of dispersion between several individual observations

of relevant quality characteristics. Precision describes consistency of the
process. Precision can be measured through :-

1. Range: Range is the difference between the largest and smallest

measurement in a given set of observations.

2. Standard Deviation: Standard deviation in general terms is a measure of

mean variation of values from the central tendency.

Standard deviation is more reliable method of measuring precision, hence for

the purpose of Six Sigma, we will confine our study on Standard deviation.
 Measurement of precision

Mean Deviation of values from central tendency can also be

used to measure dispersion. However, there is one
difficulty in the use of this measure, that the algebraic sum
of all deviations is zero.
Standard deviation is calculated as root mean square of the
deviations of observations from the mean which henceforth
will be represented by abbreviation SD.
 Calculation of standard deviation

Standard deviation can be calculated by the following

formula :-
If X1, X2 ,X3…………Xn are individual observations
And X is the arithmetic mean

(X12 + X22 +….+Xn2) - n ( X ) 2

Variance, V =
(n - 1)

Standard Deviation, SD = V
Example to calculate standard deviation

Calculate standard deviation of 10, 11, 12, 13 , 14

Sl. X X (Square)
1 10 100
2 11 121
3 12 144
4 13 169
5 14 196
T otal 60 730
 Calculation of Standard Deviation
60
X= = 12
5

(X12 + X22 +….+Xn2) - n ( X )2

Variance, V =
(n - 1)

730 - 5 x (12) 2
=
(5 - 1)
= 2.5

SD = 2.5 =1.5811
 Sigma

Standard deviation is also referred to as the Greek letter

sigma in quality management literature. Consequently
process variation can be described by how many sigmas ( i.e
how many multiples of standard deviation or SD ) fit within
the specification limits.The higher this number, the better is
the quality and vice versa.
Sigma is a statistical measure of the quality consistency for
a particular process / product.
Understanding normal distribution
 Normal Distribution

In practice generally we come across data which is of

variable type and is measured on continuous scale. If there
are no extraneous factors it follows a systematic pattern
known as “Normal Distribution”. It can be derived after
plotting histogram as explained in the next slide.
 Histogram

60

50

40
Frequency

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
CTQ
 Normal curve
Normal Curve is a smooth symmetrical bell shaped curve as shown below.

60

50

40
Frequency

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
CTQ
 Most commonly used intervals

In normal distribution, the most common intervals are :

1. Process mean - SD and process mean + SD i.e 1 Sigma

2. Process mean - 2 SD and process mean + 2 SD i.e 2 Sigma

3. Process mean - 3 SD and process mean + 3 SD i.e 3 Sigma

 % Population between Mean - SD & Mean + SD (1Sigma)
Mean = 10, SD = 2

Mean-SD =8 Mean+SD =12

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- SD + SD

% population between Mean - SD and Mean + SD or 1 Sigma = 68.3,

This implies that 68.3% population lies between dimensions of 8 and 12
 % Population between Mean - 2 SD & Mean + 2 SD (2Sigma)

Mean = 10, SD = 2
Mean-2 SD=6
Mean+2 SD=14

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

-2 SD +2 SD

% population between Mean - 2 SD and Mean +2 SD or 2 Sigma = 95.5

This implies that 95.5% population lies between dimensions 6 &14
% Population between Mean - 3 SD & Mean + 3 SD (3 Sigma)

Mean = 10, SD = 2

Mean - 3SD =4 Mean + 3SD =16

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- 3 SD + 3 SD

% population between Mean - 3 SD and Mean +3 SD or 3 Sigma = 99.73

This implies that 99.73 % population lies between 4 & 16
 Range of observations for nearly 100% population

Range of observations for nearly 100% population (to be precise 99.73%)

depends upon, mean of the process and standard deviation of the process. If
it follows normal distribution the population lies between -

Mean - 3 SD & Mean + 3 SD i.e ( 3Sigma )

What is a Sigma process
 Meaning of a Sigma process

From a sigma process we come to know that at what

distance, in terms of the standard deviation, the
specification limits are placed from the target value.
 Move beyond 3 sigma

Until a few years back all statistical process controls were

designed on the basis of 3 sigma limits. It is only in the recent
years that this concept has been challenged and the
organizations have started looking for quality levels beyond 3
Sigma.
 3 Sigma process

Mean=8
LSL SD = 2 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 3 SD + 3 SD

Note : LSL is Lower specification limit and USL is Upper specification limit.
 4 Sigma process

LSL Mean=8 USL

SD = 1.33

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 4 SD + 4 SD
 5 Sigma process

Mean=8
LSL SD = 1.07 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 5 SD + 5 SD
 6 Sigma process

Mean=8
LSL SD = 1 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 6 SD + 6 SD
 Precision

Lesser the standard deviation of the process, more precise or

consistent is the process
 3 Sigma Vs 6 Sigma

The goal of Six Sigma program is to reduce the variation in

every process to such an extent that the spread of 12 sigmas i.e.
6 Sigmas on either side of the mean fits within the process
specifications. The figure on next slide shows what this looks
like.
 3 Sigma Vs 6 Sigma
6 Sigma curve

LSL USL

3 Sigma curve

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

In a 3 sigma process the values are widely spread along the center line,
showing the higher variation of the process. Whereas in a 6 Sigma
process, the values are closer to the center line showing
less variation in the process.
 3 Sigma Vs 6 Sigma

The comparison on the previous slide also shows a process in

which the process spread of Six Sigmas (ie. 3 Sigmas on either
side just fits within the specifications). In this case one must be
extremely careful to ensure that the process average never slips
off the target, otherwise the curve will shift and non-
conforming items will increase. With Six Sigma requirement
the process mean can shift by as much as 1.5 sigma before the
likelihood of non-conforming items is increased. Even if the
process mean does shift off center by as much as 1.5 sigma,
only 3.4 non-conforming items per million parts should result.
 Amount of process shift allowed

1.5 SD 1.5 SD

LSL USL

SD = 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
 Calculating non conformities

 The number of observations falling within the distribution

frequency curve can be co-related with the area under the
curve.
 Finding area ( percentage of non conformities ) under a
normal curve requires the use of standard normal
distribution table. It is conventional to use the letter z to
denote the standard normal variate. The table for areas under
normal curve are given at the end of this section.
 Sigma ratings in terms of Z

The z value corresponding to USL or LSL* tells us how many

sigma the USL or LSL is from the process setting. Thus the z
value corresponding to the specification limit gives the sigma
rating of the process.

Note 1: As we know that most of the variable data that we come across in the
industry follows normal distribution with certain mean and standard deviation. We
define a variate ‘Z’( standardized normal variate ) which has a mean value 0 and
standard deviation 1. This is done in order to make use of Standard Normal Tables.

* LSL is the lower specification limit & USL is the upper specification limit
 Calculating non conformities

LSL USL

Non Non
conformities conformities
Formula for calculating % non conformities

With respect to LSL,

ZL = ( LSL - X )/SD

With respect to USL

ZU = ( USL-X )/SD

Where X= Process mean

SD = Process Standard deviation
USL = Upper specification limit
LSL = Lower specification limit respectively.
Illustration for calculating
% non conformities
 Histogram for rolling thickness

Spec: 1.6+/- 0.1 mm Mean=1.58

SD=0.042

50
LSL USL
Frequency %

40

30

20

10

0
1.465 1.505 1.545 1.585 1.625 1.665 1.705
Thickness
 Normal curve for the population

Spec: 1.6+/- 0.1 mm Mean=1.58

SD=0.042

50
LSL USL
Frequency %

40
Proportion Proportion
of defects of defects
30

20

10

0
1.465 1.505 1.545 1.585 1.625 1.665 1.705
Thickness
 Calculating non conformities

With respect to LSL,

ZL = ( LSL - X )/SD = ( 1.50-1.58 )/0.042 = -1.90

With respect to USL,

ZU = ( USL-X )/SD = ( 1.70-1.58 )/0.042 = 2.86

The Percentage of values falling beyond specification limits, corresponding

to the z value can be read from the standard normal table as 0.0287 and
0.0021 for ZU and ZL respectively. Total percentage of non conformities
=2.87+0.21=3.08. (While referring to Normal distribution table, only
absolute value of z should be taken.)
 Areas under normal curve - Normal distribution table

Area

z Area z Area z Area z Area

0.00 0.500000 0.20 0.420740 0.40 0.344578 0.60 0.274253
0.01 0.496011 0.21 0.416834 0.41 0.340903 0.61 0.270931
0.02 0.492022 0.22 0.412936 0.42 0.337243 0.62 0.267629
0.03 0.488033 0.23 0.409046 0.43 0.333598 0.63 0.264347
0.04 0.484047 0.24 0.405165 0.44 0.329969 0.64 0.261086
0.05 0.480061 0.25 0.401294 0.45 0.326355 0.65 0.257846
0.06 0.476078 0.26 0.397432 0.46 0.322758 0.66 0.254627
0.07 0.472097 0.27 0.393580 0.47 0.319178 0.67 0.251429
0.08 0.468119 0.28 0.389739 0.48 0.315614 0.68 0.248252
0.09 0.464144 0.29 0.385908 0.49 0.312067 0.69 0.245097
0.10 0.460172 0.30 0.382089 0.50 0.308538 0.70 0.241964
0.11 0.456205 0.31 0.378281 0.51 0.305026 0.71 0.238852
0.12 0.452242 0.32 0.374484 0.52 0.301532 0.72 0.235762
0.13 0.448283 0.33 0.370700 0.53 0.298056 0.73 0.232695
0.14 0.444330 0.34 0.366928 0.54 0.294599 0.74 0.229650
0.15 0.440382 0.35 0.363169 0.55 0.291160 0.75 0.226627
0.16 0.436441 0.36 0.359424 0.56 0.287740 0.76 0.223627
0.17 0.432505 0.37 0.355691 0.57 0.284339 0.77 0.220650
0.18 0.428576 0.38 0.351973 0.58 0.280957 0.78 0.217695
0.19 0.424655 0.39 0.348268 0.59 0.277595 0.79 0.214764
 Areas under normal curve - Normal distribution table

Area

z Area z Area z Area z Area

0.80 0.211855 1.00 0.158655 1.20 0.115070 1.40 0.080757
0.81 0.208970 1.01 0.156248 1.21 0.113140 1.41 0.079270
0.82 0.206108 1.02 0.153864 1.22 0.111233 1.42 0.077804
0.83 0.203269 1.03 0.151451 1.23 0.109349 1.43 0.076459
0.84 0.200454 1.04 0.149170 1.24 0.107488 1.44 0.074934
0.85 0.197662 1.05 0.146859 1.25 0.105650 1.45 0.073529
0.86 0.194894 1.06 0.144572 1.26 0.103835 1.46 0.072145
0.87 0.192150 1.07 0.142310 1.27 0.102042 1.47 0.070781
0.88 0.189430 1.08 0.140071 1.28 0.100273 1.48 0.069437
0.89 0.186733 1.09 0.137875 1.29 0.098525 1.49 0.068112
0.90 0.184060 1.10 0.135666 1.30 0.096801 1.50 0.0668072
0.91 0.181411 1.11 0.133500 1.31 0.095098 1.51 0.0655217
0.92 0.178786 1.12 0.131357 1.32 0.093418 1.52 0.0642555
0.93 0.176185 1.13 0.129238 1.33 0.091759 1.53 0.0630084
0.94 0.173609 1.14 0.127143 1.34 0.090123 1.54 0.0617802
0.95 0.171056 1.15 0.125072 1.35 0.088508 1.55 0.0605708
0.96 0.168528 1.16 0.123024 1.36 0.086915 1.56 0.0593799
0.97 0.166023 1.17 0.121001 1.37 0.085343 1.57 0.0582076
0.98 0.163543 1.18 0.119000 1.38 0.083793 1.58 0.0570534
0.99 0.161087 1.19 0.117023 1.39 0.082264 1.59 0.0559174
 Areas under normal curve - Normal distribution table
Area

z Area z Area z Area z Area

1.60 0.0547993 1.80 0.0359303 2.00 0.0227501 2.20 0.0139034
1.61 0.0536989 1.81 0.0351478 2.01 0.0222155 2.21 0.0135525
1.62 0.0526161 1.82 0.0343794 2.02 0.0216916 2.22 0.0132093
1.63 0.0515507 1.83 0.0336249 2.03 0.0211782 2.23 0.0128736
1.64 0.0505026 1.84 0.0328841 2.04 0.0206751 2.24 0.0125454
1.65 0.0494714 1.85 0.0321567 2.05 0.0201821 2.25 0.0122244
1.66 0.0484572 1.86 0.0314427 2.06 0.0196992 2.26 0.0119106
1.67 0.0474597 1.87 0.0307419 2.07 0.0192261 2.27 0.0116038
1.68 0.0464786 1.88 0.0300540 2.08 0.0187627 2.28 0.0113038
1.69 0.0455139 1.89 0.0293789 2.09 0.0183088 2.29 0.0110106
1.70 0.0445654 1.90 0.0287165 2.10 0.0178643 2.30 0.0107241
1.71 0.0436329 1.91 0.0280665 2.11 0.0174291 2.31 0.0104440
1.72 0.0427162 1.92 0.0274289 2.12 0.0170029 2.32 0.0101704
1.73 0.0418151 1.93 0.0268034 2.13 0.0165858 2.33 0.0099031
1.74 0.0409295 1.94 0.0261898 2.14 0.0161773 2.34 0.0096418
1.75 0.0400591 1.95 0.0255880 2.15 0.0157775 2.35 0.0093867
1.76 0.0392039 1.96 0.0249978 2.16 0.0153863 2.36 0.0091375
1.77 0.0383635 1.97 0.0244191 2.17 0.0150034 2.37 0.0088940
1.78 0.0375379 1.98 0.0238517 2.18 0.0146286 2.38 0.0086563
1.79 0.0367269 1.99 0.0232954 2.19 0.0142621 2.39 0.0084242
 Areas under normal curve - Normal distribution table
Area

z Area z Area z Area z Area

2.40 0.00819755 2.60 0.00466120 2.80 0.00255519 3.00 0.00134999
2.41 0.00797623 2.61 0.00452715 2.81 0.00247711 3.10 0.00096660
2.42 0.00776023 2.62 0.00439650 2.82 0.00240123 3.20 0.00068714
2.43 0.00754941 2.63 0.00426930 2.83 0.00232744 3.30 0.00048342
2.44 0.00734365 2.64 0.00414532 2.84 0.00225574 3.40 0.00033693
2.45 0.00714284 2.65 0.00402462 2.85 0.00218600 3.50 0.00023263
2.46 0.00694686 2.66 0.00390708 2.86 0.00211829 3.60 0.00015911
2.47 0.00675565 2.67 0.00379258 2.87 0.00205243 3.70 0.00010780
2.48 0.00656915 2.68 0.00368118 2.88 0.00198847 3.80 0.00007235
2.49 0.00638717 2.69 0.00357264 2.89 0.00192630 3.90 0.00004810
2.50 0.00620967 2.70 0.00346702 2.90 0.00186586 4.00 0.00003167
2.51 0.00603658 2.71 0.00336421 2.91 0.00180721 4.10 0.00002066
2.52 0.00586778 2.72 0.00326413 2.92 0.00175023 4.20 0.00001355
2.53 0.00570315 2.73 0.00316679 2.93 0.00169486 4.30 0.00000854
2.54 0.00554264 2.74 0.00307202 2.94 0.00164115 4.40 0.00000541
2.55 0.00538617 2.75 0.00297282 2.95 0.00158894 4.50 0.00000340
2.56 0.00523365 2.76 0.00289011 2.96 0.00153828 4.60 0.00000211
2.57 0.00508493 2.77 0.00280285 2.97 0.00148904 4.70 0.00000130
2.58 0.00494003 2.78 0.00271803 2.98 0.00144130 4.80 0.00000079
2.59 0.00479883 2.79 0.00263548 2.99 0.00139493 4.90 0.00000048
5.00 0.00000029
 Areas under normal curve - Normal distribution table
Area

z Area
5.10 0.00000180
5.20 0.00000107
5.30 0.00000063
5.40 0.00000037
5.50 0.00000021
5.60 0.00000012
5.70 0.000000070
5.80 0.000000040
5.90 0.000000022
6.00 0.000000012

Note: Only absolute values of z should be taken while referring to this table.
 Objective of Analysis phase

• The objective of this phase is to study the stability, shape,

center and spread of the process.
• To establish an improvement goal or the performance
objective through benchmarking.
 Process capability

Process
A combination of equipment, materials, people, methods and
environment that act together to produce an output. The
quality of the process is judged by the quality ( characteristic )
of the output.
 Process capability

Process capability
The inherent variability of a quality characteristic that the
process is capable of maintaining, when in a state of statistical
control under a given set of conditions.

Assuming normal distribution of the quality characteristic

Process Capability = +/- 3 SD = Total spread of 6 SD.
 Process capability

Process capability is judged by comparing process

performance with process requirements. Since meeting
specification limits is one of the most basic requirements of
a process capability study, it is extremely important to
accurately verify and define the specification limits.
 Need for process capability

 For meeting customer requirements/ specifications.

 To compare actual performance of equipment with
manufacturer’s claim.
 To compare the performance of two processes.
 To provide more realistic tolerances for component
dimensions.
 Provide a basis for process control.
 Factors influencing process capability

1. Condition of machine/ equipment.

2. Type of operation and operational conditions.
3. Raw materials.
4. Skill of operators.
5. Measurement method / instruments.
6. Inspector’s skill.
 Estimation of process capability

• Visual from run chart.

• Frequency distribution and histogram.
• Control charts.
• Analysis of variances.
• Probability papers.

Note : Reduction of variability can be achieved through use of SPC tools and Design of Experiments.
 The empirical rule

We have seen in the earlier chapter that almost all (to be

accurate 99.73%) the process output from a normally
distributed process lies between (process mean - 3 SD)
and (process mean+ 3 SD).

The total spread of the process can thus be described as 6 SD

 99.73% population between process mean +/- 3 SD

LSL USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 3 SD + 3 SD
 Process capability indices : The Cp index

A major reason for quantifying process capability is to

compute the ability of a process to hold product tolerances. A
measure of this relationship is process capability ratio or Cp.
Process capability is also known as potential capability.
The Cp index is given by:-
Cp = Tolerance
6 SD
Where Tolerance = USL - LSL
SD = Standard Deviation
 Process capability indices : The Cp index

Interpretations of Cp
Cp > 1 : The process is quite capable
Cp = 1 : The process is just capable
Cp < 1 : The process is incapable

The recommended value of Cp is 1.33 ( minimum)

In order to achieve Six Sigma quality in the organization, we
must reduce the variation in the process so as to achieve the
value of Cp=2.
 Calculating defective PPM at various levels of sigma.

Quality level Cp z Defective PPM

2 Sigma 0.67 2 22750

3 Sigma 1.00 3 1350

4 Sigma 1.33 4 32

5 Sigma 1.67 5 0.3

6 Sigma 2.00 6 0.001

Refer normal distribution table for finding defective parts per

million ( PPM ) for corresponding z values.
 Impact of process capability

For individual parts, the ideal design is Cp = 2; in other words,

the design specification is twice as “wide” as the true capability
of the process. This is where the phrase “Six Sigma Quality”
originated. Since the process capability is +/- 3SD, a design
specification twice as wide would be +/- 6 SD.
 Impact of process capability

However, it is learnt from the industry experience across the world,

that the processes rarely stay centered on their targeted nominals, shifts
of 1.5 SD to either side of the mean are common, even in well
controlled processes.

Therefore in practice, an ultimate z-value of 4.5 is considered Six

Sigma Quality. Consulting the z-table, we find that the probability of
producing non conformities associated with a z-value of 4.5 is
0.0000034. If this value is obtained, then only 3.4 out of every million
parts manufactured will be defective.
Calculating defective PPM with permissible shift of 1.5 SD
at various levels of sigma. ( practical situation )

Quality level Cp z Defective PPM

2 Sigma 0.17 0.5 308538

3 Sigma 0.50 1.5 66807

4 Sigma 0.83 2.5 6210

5 Sigma 1.17 3.5 233

6 Sigma 1.50 4.5 3.4

Refer normal distribution table for finding defective PPM for

corresponding z values.
 Drawbacks of Cp

Cp however is not a very reliable measure as it does not tell us

all.
Consider the following four processes producing the same
output X with specification 20+/- 4. Each of these processes
have the Standard deviation of 1.
 Process 1

X=20
SD=1

LSL USL

Cp=1.33
 Process 2

X=22
SD=1

LSL USL

Cp=1.33
 Process 3

X=15
SD=1

LSL USL

Cp=1.33
 Process 4

X=25
SD=1

LSL USL

Cp=1.33
 Calculation of Cpk index

Cpk is a measure of process performance capability

The process performance index Cpk is given by:-

Cpk = Min [ USL - x , x - LSL ]

3SD 3SD

Example :
Specification : 20 +/- 4, SD = 1
Cp = Tolerance/6SD = 8/6 = 1.33
 Calculation of Cpk index - Example

Example :
Specification : 20 +/- 4, SD = 1
Cp = Tol/6 SD = 8/6 = 1.33

x = 20, Cpk = Cp = 1.33

x = 22, Cpk = 0.67

x = 15, Cpk = -0.33

x = 25, Cpk = -0.33
 Calculation of Cpk index

In the previous slide we observe that, although the Cp

value = 1.33 in all the four cases, but because of the shift
in the process setting level we are getting Cpk values as
0.67 in 2nd case and hence the non conformities. Similar
observations are noticed in 3rd and 4th case where we get
the Cpk as -0.33.
 The Cpk index

Thus Cpk = Cp means the process is centered.

Cpk < 1 means non- conformances are being produced.
Cpk < 0 indicates that the process has been set beyond either of
the two specification limits.

Note : Cpk is always less than or equal to Cp.

 Cp and Cpk indices

Therefore, the first step is to bring Cpk=Cp by proper

centering of the process. The second step should be to
improve the Cp value by decreasing the variation.
Process capability indexes for one sided tolerances

One-sided Tolerances - The Cp and Cpk indexes are used

for characteristics with two-sided tolerances - that is,
processes with both upper and lower specification limits.
Since many characteristics have only one-sided
specifications, it is also convenient to have one-sided
capability indexes.
Process capability indexes for one sided tolerances

For processes that have only a Lower specification limit, LSL,

the lower capability index Cpl is defined by:-

Cpl = x - LSL
3 SD

Correspondingly, when only an Upper specification exists,

we define an upper capability index by:-

Cpu = USL - x
3 SD
 Objectives of Improvement phase

• To develop a proposed solution to the existing problems.

• To confirm that the proposed solution will meet the desired quality
improvement goals.
• To identify resources required for successful implementation of the
solution.
• To plan and execute actual improvements.

The tools and techniques for making improvement are discussed on the
following slides :-
 Histogram

The frequency histogram can be described as a bar graph

displaying the frequency distribution of specific processes,
items and devices. This tool provides a valuable means for
tracking variation. For instance, it can categorize product
defect levels or distribution. The primary difference between
the histogram and any other bar diagram is that the horizontal
scale of the histogram represents a numerical scale.
 Histogram

A frequency histogram provides the basis for understanding the

variation of both production and service scenarios with the
visualization to identify opportunity easily with each area
(histogram bars) while keeping track of variation. It must be
pointed out that frequency histograms do not tell the total
sources of variation and do not present a specific pattern over
time.
 Constructing a Histogram

Constructing a histogram is quite simple. Microsoft bar chart

can be used to draw a histogram. The following simple steps
should be followed :-
1. Select insert Microsoft bar graph.
2. Feed in scale and their respective frequencies.
3.Since there is no gap between the bars in a histogram, select
“format data series”. Click on “options” field and make the
gap width between the bars=0.
Please see the example of a histogram generated by Microsoft
graph on the next slide.
 Constructing a Histogram

35
30
25
Frequency

20
15
10
5
0
5 6 7 8 9 10
Machine set up time in minutes
 Pareto analysis

The Pareto principle is to concentrate on “vital few” rather

than “trivial many” in tackling quality problems. The Pareto
diagram is a tool for identifying few actually important causes
for defectives which result in large proportion of defectives,
instead of concentrating on large number of causes which
contributes to a small proportion of the total defectives.
 Constructing a Pareto chart

A Pareto diagram is a bar chart of number of defectives with

bars representing the number of defectives due to different
sources arranged in descending order of their importance. A
line graph of cumulative number of defectives (Ogive) is also
drawn in the same chart. The causes are given along the x axis,
the number of defectives are given on the left y axis and the
cumulative %defectives is given along the right y axis.
 Constructing a Pareto chart

Data on defective cords

S No. Source of defectives No. of Percentage

defectives defectives

1 Wrong Ply TPM 75 25

2 Plyless Feeding 150 50
3 Single end 30 10
4 Wrong Cable TPM 45 15

Total 300 100

 Arranging data in descending order

Data on defective cords

S No. Source of defectives No. of Percentage Cumulative

defectives defectives % defectives

1 Plyless Feeding 150 50 50

2 Wrong Ply TPM 75 25 75
3 Wrong Cable TPM 45 15 90
4 Single end 30 10 100

Total 300 100

 Pareto analysis of defective cords
300
100%
250
80%
200
60%
150
40%
100

50 20%

0 0%
Plyless Wrong ply Wrong Single
feeding TPM cable TPM end
 Root cause analysis

In any organization numerous problems exist in all facets of its

activities. The efficiency and survival of the organization depends on
how promptly these problems are recognized and their root causes
are isolated and eliminated.
A systematic analysis of each potential problem area should be
carried out to recognize the root causes which are responsible for
creating the problem. This analysis is called Root Cause Analysis.
This is more of a philosophy or a discipline rather than any isolated
technique for continuous improvement.
 Tools & techniques for root cause analysis

 Ishikawa or cause and effect diagram

 Histogram
 Pareto Analysis
 Control charts
 Brain Storming
 Flow Charting
 Process Capability Analysis
 Scatter diagram and regression analysis
 Statistically Design Experiment ( Design of Experiments )
 Cause & Effect diagram - Major and subsidiary causes

Material Methods Environment

Procedures Noise level

Assemblies

Temperature

Consumables Humidity
Components Accounting

Suppliers Lighting
Policies
Effect
Variability
Instruments
Training
Experience Tests
Technology

Tooling
Attitude Gauging

Skill Fixtures Counting

Men Machine Measurement

 Example of Cause & Effect diagram
Material Methods Environment
Inadequate High Noise level
High lead time process control

poor review Heat

system
High inventory
Poor QC
Poor quality
of vendors Poor Lighting
Poor MIS Low
operating
High profit
Inadequate
variation Instruments
Inadequate
Training
Lack
of Experience
Old machines

Poor No SPC
Maintenance

Low Frequent Inadequate

motivation breakdowns measurement
Men Machine Measurement
 Typical causes for non conformance/ defects
Machine factors

• Inadequate process capability

• Incorrectly designed tooling
• Worn tools, jigs or dies
• Poor maintenance
• Equipment effected by environmental factors such as heat,
humidity etc.
 Typical causes for non conformance/ defects
Material factors

• Use of untested materials

• Mix-up of materials
• Substandard material accepted on concession because of
non-availability of correct material
• Inconsistency in specifications on the part of vendors
 Typical causes for non conformance/ defects
Men factors

• Incorrect knowledge of setting up machines

• Careless operator and inadequate supervision
• Undue rush by the operator to achieve quality targets
• Lack of understanding of drawing instructions relating to a
process
• Operator does not possess requisite skill for operating
machines
 Typical causes for non conformance/ defects
Method factors

• Inadequate process controls

• Non availability of proper test equipments
• Test equipment out of calibration
• Vague inspection/ testing instructions
• Inspectors do not possess the necessary skill
 Click on the boxes to enter your Cause & Effect

Material Methods Environment

Click to enter

click

Men Machine Measurement

 Process flow Charting

Flow charting provides the basis for understanding the standard

process procedures, the relationship between people and work
to be done. Flowcharting is a very good tool for understanding
and identifying process bottlenecks such as delays, excessive
transportation, waiting time and queuing time. It also identifies
key customers, suppliers and process owners by operational
work unit, performance level, quality level and productivity at
each process point. Flow charts can also identify source of
errors, decision points and non-value adding operations.
Flow chart of Printed circuit board Assemble parts in PCB

Receive PCB Return part to

Parts from vendors vendors
Test assembled PCB Rework & Analyze

Inspect parts Wait for Mfg.

Inspect PCB

Parts
good Bad
or
bad Parts
good Bad
or
Good bad

Good
Inspect parts

Pack & Ship

Sample : Seeking customer feedback and taking corrective action flow diagram.

Customer
Issue satisfaction
owners dept.

International
Surveys Customer marketing
satisfaction •Review actions
dept •Emerging issues
Administration
•Action plan
Complaints
•Issue Domestic
identification Marketing
Customer
•Prioritization
Critical •Ownership Technical
Situations

Delivery

Other
Service

•Develop action plans

•Resolve issues
•Improve
 Failure Mode and Effects Analysis (FMEA)

FMEA is a structured analysis for identifying ways &

methods in which the product or processes can fail and
then plan to prevent those failures. FMEA is a proactive
tool for reducing defects and non-conformities.
 Failure Mode and Effects Analysis (FMEA)

FMEA is a structured approach in :-

• Identifying ways in which a process can fail to meet
critical customer requirements.
• Estimating the risk of causes with regard to these failures.
• Evaluating control plan for preventing these failures.
• Prioritizing the actions for improving the process.

FMEA is an extremely important tool for each phase of

Six Sigma strategy viz. Measure, Analyze, Improve,
Control.
 Advantages of FMEA

• For improving the reliability and safety of the products.

• For improving customer satisfaction.
• Tracking actions to reduce non-conformities.
• New product development.
 Definition of terms

Failure Mode : It is a manner in which a part or a process

can fail to meet specifications. It is usually associated with
defect or non-conformities.

Examples : Missing part, Oversized, Undersized,

Incorrect price, Offspec parts.
 Definition of terms

Cause : Causes are sources of variation which are

associated with key process inputs. Cause can be best
defined as a deficiency which results in a failure mode.

Examples : Instructions not followed, Lack of experience,

Incorrect documentation, Poor handling etc.
 Definition of terms

Effect : Effect is the impact on the customer (both internal

& external) if the failure mode is not prevented or
corrected.
Examples : Customer dissatisfaction, Frequent product
breakdowns, Customer downtime.
Relationship of cause, failure mode & effect

Failure
Cause Effect
Mode
 FMEA through Cause & Effect Diagram
Causes Causes Causes

Prevent
or Detect

Failure
Mode

Effect

Causes Causes Causes

 Steps in FMEA process

1. Develop a process map and identify process steps.

2. List key process outputs for satisfying internal and
external customer requirements.
3. List key process inputs for each process steps.
4. List ways the process inputs can vary (causes) and
identify associated failure modes and effects.
5. Assign severity occurrence and detection rating for each
cause.
 Steps in FMEA process

6. Calculate risk priority number ( RPN) for each potential

failure mode.
7. Determine recommended actions to reduce RPN’s.
8. Establish time frame for corrective actions.
9. Take corrective actions.
10. Put all controls in place.
 Ranking terms used in FMEA calculations
Scale:1(Best) to 10 ( Worst)

• Severity (SEV) : Severity indicates how severe is the impact of the effect
on the customer.
• Occurrence (OCC) : This indicates the likelihood of the cause of the
failure mode to occur.
• Detection (DET) : This indicates the likelihood of the current system to
detect the cause or failure mode if it occurs.
• Risk priority number : This number is used to place priority to items for
better quality planning.
RPN = SEV X OCC X DET

See next slides for specimen best to worst ratings on a 10 point scale.
 Best to Worst ratings for FMEA calculations
Rating Degree of Severity Likelihood of Occurrence Ability to detect

1 Customer will not at all observe Very remote possibility Sure that the potential failure
the adverse effect will be detected & prevented
before reaching the next
customer

2 Customer will experience Low failure with supporting Almost sure that the potential
slight discomfort documents failure will be detected before
reachig the next customer

3 Customer will experience Low failure without supporting Less chances that the
annoyance because of slight documents potential failure will reach the
degradation of performance next customer undetected

4 Customer dissatisfied due to Occasional failures Some controls may detect

reduced performance the potential from reaching the
next customer

5 Customer is uncomfortable Moderate failure rate with Moderate chances that the
supporting documents potential failure will reach the
next customer
 Best to Worst ratings for FMEA calculations
Rating Degree of Severity Likelihood of Occurrence Ability to detect

6 Warranty repairs Modearate failure rate without Controls are not likely to detect
supporting documents or prevent the potential failure
from reaching the next
customer

7 High degree of customer High failure rate with supporting Less chances that the potential
dissatisfaction documents failure will be detected or
prevented before reaching
the next customer

8 Vey high degree of customer High failure rate with supporting Very less chances that the
dissatisfaction documents potential failure will be detected
or prevented before reaching
the next customer

9 Negative impact on the Failure is almost certain Existing controls will not detect
customer the potential failure

10 Negative impact on the Assured failure Existing controls will not detect
customer, people & society the potential failure
 FMEA Form: ( Column 1 to 9 )

Rank severity Rank how well

Rank occurrence List how the cause
on 1 to 10 cause/failure
on a 1 to 10 is presently
scale can be detected
scale being controlled
on 1 to 10 scale

1 2 3 4 5 6 7 8 9
Process Potential failure mode Potential failure effect SEV Potential causes OCC Current Controls DET RPN
Part No.

1
2
3
4
5

List failure List effects List causes

RPN=
modes for each of each for each failure
SEV*OCC*DET
step failure mode mode
 FMEA Form contd: ( column 10 to 15 )
Designates people RPN is recalculated
responsible for on completion of
corrective action corrective action

10 11 12 13 14 15
Actions Recommended Responsibility SEV OCC DET RPN

List actions
recommended
on RPN pareto
 Quality Function Deployment ( QFD )

No matter how effectively a company meets the initial

needs of the customers, it must remain constantly alert
and responsive to the changing and increasing needs of
the customers. Because if the company is not
responsive to these changing needs, the passage of
time will erode the early competitive advantages.
Step 1 : List customer requirements and rank

Importance
Customer Requirements on 10 point
scale

Very Important

Moderately Important

Slightly important
Step 2 : List technical requirements to meet customer requirements

Technical Requirements
Step 3 : Comparing product with the nearest competitor

Complaints
Customer competitive
evaluation on 5 point scale( 5 high , 1 low )

Rank
1 2 3 4 5 Action

Customer Requirements

Competitor product Our product

Step 4 : Establish relationship between customer requirement
and technical requirements

Technical Requirements
Strong relation

Moderate relation

Weak relation

Rank
Customer Requirements
 QFD matrix overview after step 4

Technical Requirements

Competitive evaluation

Rank
Customer Requirements
Step 5 : Do competitive technical Assessment

Technical Requirements
Competitive evaluation

Customer Requirements Rank

5
Competitive 4
Technical Competitor assessment
3
Assessment 2
Our assessment
1
Step 6 : Mention operational targets or action points

Technical Requirements
Competitive evaluation

Customer Requirements Rank

Competitive
Technical
Assessment

Operational
New Product
Targets
 QFD - customer’s voice

The whole process of the QFD can be linked to GIGO

( Garbage in garbage out ). This is because, if the voice of
the customer has not been captured properly, the final
product will also not be the one actually desired by the
market place. It is therefore extremely important to capture
the correct voice of the customer before taking any other
step in the QFD planning process. We will explain this by
the forthcoming example of new car development.
A product development team wants to determine what the
customers want in a new car. After interviewing about 120 car
drivers, the team came out with the following chart of the
customer requirements :
 Desired product attributes in a new car
Requirement Rank
• Easy to drive 5
• Quiet riding , no squeaks or rattles 4.8
• Excellently finished 4.6
• Smooth riding even on rough road 4.5
• Excellent gas mileage 3.9
• Aerodynamic design 3.8
• Hugs the road 3.7
• Free from breakdowns 3.6
• Fast acceleration 3.5
• Virtually maintenance free 3.4
• Durable - will last 150000 miles 3.3
• Protects the driver and passenger in case of accident 3.2
• Classic styling 3
• Has instruments to read critical functions 2.2
• Has many electronic devises 2
• Has convertible roof 1.4
 Translating into technical requirements

The product development team is all set to translate the requirements

of the customer into technical requirements as per the QFD matrix.
Fallacy : The survey is based on aggregate data management and its
basic assumption is that there is one best answer for every one.
 Classification of needs

The product development team is asked by the CEO to

classify the needs of various drivers and then give it a rating
instead of proceeding simply with the aggregate data
management. After the market survey the product
development team divided the customer into two broad
categories :-
1. The performance driver and
2. The practical driver
The team then came with the following findings -
 Two different profiles of desired product attributes
Performance driver 5 Practical driver
•Fast acceleration •Excellent gas mileage
•Aerodynamic design •Virtually maintenance free
•Hugs the road •Free from breakdowns

4 •Easy to drive
•Easy to drive •Durable
•Excellently finished •Quiet riding
•Quiet riding •Smooth ride
•Classic styling •Protects driver
•Smooth riding •Excellently finished
3

•Free from breakdowns

•Excellent gas mileage •Many electronic devises
•Protects drivers
2 •Aerodynamic design
•Durable •Hugs the road
•Many electronic devices •Instruments to read functions
•Convertible roof •Classic styling
•Virtually maintenance free •Convertible roof
•Fast acceleration
1
 New Car

The classification of the customer requirements clearly reveals

that the attribute which is most important for the
performance driver, is least important for the practical
driver and vice versa. A simple listing of the customer
requirements would have definitely ended up in the
development of incorrect product for the market. Reading the
voice of the customer is therefore the most critical and
challenging aspect of the whole QFD process.
 QFD - Conclusion

It is therefore very important that your organization is

constantly looking for the living customers instead of
mythological ones created by aggregate data management.
Once the voice of the customer has been properly captured,
translating them into technical requirements should not be
much of a difficulty.
 Objectives of control phase

• To ensure that our processes stay in control after the

improvement solution has been implemented and

• To quickly detect the out of control state and determine the

associated causes so that actions can be taken to control
the problem before non-conformances are produced.
 Control phase

Having achieved the improvement, it needs to be

sustained. There is a general tendency for all processes to
degrade unless there is an effective control mechanism
which is able to detect incipient deviation in the process,
which are then analyzed and necessary corrective action is
taken to bring the process back to the state which was
attained after planned improvement was effected. These
control mechanisms must be integrated in the form of a
quality management system document which should be
made mandatory.
 Control phase

Unless we control the business processes in the form of

documentation and ongoing process controls, processes
will tend to degrade overtime and shall loose the gains
achieved in the improvement activities.
 Tools for effective control system

I. SPC - This has already been covered in “Measurement and

Analysis section”.
II. Mistake proofing
III. Product design controls