AMB7123

Quality Systems
Management
Chapter 6: Six–Sigma (6σ)
Content
• Introduction
• The Belt System
• Six Sigma Framework
• DMAIC and Design For Six Sigma
Introduction
What is Six-Sigma

• A set of techniques and tools for process improvement,

developed by Motorola in 1986
• A comprehensive and flexible system for achieving,
sustaining, and maximizing business success.
• Six Sigma is uniquely driven by close understanding of
customer needs, disciplined use of facts, data, and
statistical analysis, and diligent attention to managing,
improving, and reinventing business processes.
Introduction (cont.)
What is Six-Sigma….
• The objective is to improve the quality of process
outputs by identifying and removing the causes of
defects (errors) and minimizing variability in
manufacturing and business processes.
• The target for perfection is the achievement of no more
than 3.4 defects per million opportunities.
• The principles can apply to a wide variety of processes.
• Six Sigma projects normally follow a five-phase
improvement process called DMAIC.
• Another process called the DFSS can be applied to
develop new processes of new product/service
Example: Laptop Component
Introduction (cont.)
Examples of Six Sigma Organizations
• Motorola, Inc. pioneered the adoption of Six Sigma in
the 1980s and saved about $14 billion.*
• Allied Signal/Honeywell saved more than $600 million a
year by reducing the costs of reworking defects and
improving aircraft engine design processes.*
• General Electric uses Six Sigma to focus on achieving
customer satisfaction.
Six Sigma Framework
DMAIC
Define Measure Analyse Improve Control

DFSS
Define Measure Analyse Design Verify

Driven by
customer needs
and expectations
Methodology
Led by Senior
Management

Organisation Tools

Champion
Master Black Belts
Black Belts
Green Belts Enabled by
Team members Quality team
Six Sigma Framework
Influenced by need to achieve World Class
Performance…
In terms of business
To implement the break through strategy to
significantly improve customer satisfaction and
shareholder value by reducing variability in every
aspect of business.
And technically
To achieve a high quality target of 3.4 defects per
million opportunities (DPMO).
Six Sigma Framework
Influenced by need to achieve World Class
Performance…
Sigma Defects Per Million Rate of
Level Opportunities Improvement
1 690,000
2 308,000 2 times
3 66,800 5 times
4 6,210 11 times
5 230 27 times
6 3.4 68 times
 DMAIC & Design For Six Sigma
Six Sigma Project Methodology
• Six Sigma projects follow two project methodologies
inspired by Deming's Plan-Do-Check-Act Cycle
• These are:
• DMAIC and
• DFSS (Design For Six Sigma), normally DMADV,
which is one of the methodologies grouped under
DFSS
• DMAIC is used for projects aimed at improving an existing
business process.
• DMADV is used for projects aimed at creating new
product or process designs
1G 5G
 DMAIC & Design For Six Sigma

DMAIC Project Methodology

DMAIC stands for Define, Measure, Analyze, Improve and
Control
• It is a data-driven improvement cycle used for improving,
optimizing and stabilizing business processes and designs.
• The DMAIC improvement cycle is the core tool used to drive
Six Sigma projects
• The first three stages provide a study of the existing process,
whereas the last two involve in process change
 DMAIC & Design For Six Sigma
DMAIC Project Methodology….
DMAIC, which has five phases, is a systematic, closed-loop
process for continued improvement that is scientific and fact
based.
• Define: Define the quality system, problem/opportunity, process,
and customer requirements.
• Measure: measures key aspects of the current process, then collect,
compile, and display relevant data.
• Analyse: Scrutinize process details, and verify cause-and-effect
relationship, to find improvement opportunities.
• Improve: Generate solutions and ideas for improving the problem.
Set up pilot run to establish process capability.
• Control: Track and verify the stability of the improvements and the
predictability of the solution
DMAIC & Design For Six Sigma
What is DFSS?
• A methodology that addresses Product / Service definition
through the design phases to delivery of the operational
products, services and processes that deliver them.
• Six Sigma DFSS is a rigorous process, requiring a high level
of training, coaching and support to become proficient.
• DFSS has several different flavours
– DMADV: Define, Measure, Analyze, Design &
Verify.
– DMEDI: Define, Measure, Explore, Develop & Implement
– IDOV: Identify, Design, Optimize & Validate
– ICOV: Identify, Characterise, Optimize &
Validate
DMAIC & Design For Six Sigma
DMADV Project Methodology
• Describes the method of using tools, training,
measurements, and verification so that products and
processes are designed at the outset to meet Six Sigma
requirements.
• The method comprises of linked steps; Define, Measure,
Analyse, Design, Verify, for ensuring that products and
processes meet Six Sigma requirements.
DMAIC & Design For Six Sigma
DMADV (or DFSS) Project Methodology….
• The DMADV project methodology, features five phases:
• Define design goals that are consistent with customer demands
and the enterprise strategy.
• Measure and identify CTQs (characteristics that are Critical To
Quality), product capabilities, production process capability,
and risks.
• Analyse to develop and design alternatives
• Design an improved alternative, best suited per analysis in the
previous step
• Verify the design, set up pilot runs, implement the production
process and hand it over to the process owner(s).
Key Points about Six Sigma
• Six Sigma is a quality improvement methodology
• a set of concepts that many organizations have used, and
continue to use
• Six Sigma is a popular vehicle for initiating and supporting
the process of organizational change
• The Belt System

Six Sigma Capability Improvement

Cp: Process capability
USL: upper specific limit
LSL: lower specific limit
Ppm: part per million defective
 Definition
Cp: Process capability index: a measure of the ability of a
process to produce consistent results – the ratio between
the permissible spread and the actual spread of a process.
• Permissible spread is the difference between the upper
and lower specific limits of acceptability
• As a formula, Cp = (USL-LSL)/(6 x sigma).

PPM: part per million defective

• expected number of parts out of one million that you can
expect to be defective.
Understanding defect based 6σ matrix
Six Sigma Defect Metrics
Defects Per Unit – DPU
No of Defects
DPU 
Total Product Unit

• probability of getting ‘r’ defects in a sample with a given DPU

rate can be predicted using Poisson Distribution

Defects Per Opportunity – DPO

No of Defects
DPO 
No. of Unit x DPU

Defects Per Million Opportunity – DPMO

• DPMO = DPO x 1,000,000 Defects Per Million Opportunities
Example 1
If there are 9 defects among 150 invoices, and there are 8
opportunities for errors for every invoice, what is the
DPMO?
No of Defects 9
DPU    0.06
Total Product Unit 150

DPU 0.6
DPO    0.0075
No of Defect Opportunities 8

DPMO  DPO x 1,000,000  0.0075 x 1,000,000  7,500

 Understanding Six Sigma Matrix
±6 Sigma versus ± 3 Sigma
• In 1980’s, Motorola coined “six-sigma” PPM Defective for
to describe their higher quality efforts ±3σ versus ±6σ quality
• Six-sigma quality standard is now a
benchmark in many industries
• Before design, marketing ensures customer
product characteristics
• Operations ensures that product design
characteristics can be met by controlling
materials and processes to 6σ levels
• Other functions like finance and accounting
use 6σ concepts to control all of their
processes
Understanding Six Sigma Matrix

Process Capability – Cp and Cpk

Product Specifications
• Preset product or service dimensions, tolerances: bottle
fill might be 16 oz. ±.2 oz. (15.8oz.-16.2oz.)
• Based on how product is to be used or what the
customer expects

Cp = Process Capability Index

Cpk = Process Capability Index of non-centered distribution
Understanding Six Sigma Matrix
Process Capability – Cp and Cpk
• Assessing capability involves evaluating process
variability relative to preset product or service
specifications
• Cp assumes that the process is centered in the
specification range
specificat ion width USL  LSL
Cp  
process width 6σ

• Cpk helps to address a possible lack of centering of the

process  USL  μ μ  LSL 
Cpk  min  , 
 3σ 3σ 
Understanding Six Sigma
Relationship Between Process Variability & Specification Width
Matrix
• Three possible ranges for Cp

– Cp = 1, as in Fig. (a), process

variability just meets specifications

– Cp ≤ 1, as in Fig. (b), process not

capable of producing within
specifications

– Cp ≥ 1, as in Fig. (c), process

exceeds minimal specifications

• One shortcoming, Cp assumes that the

process is centered on the specification
range
• Cp=Cpk when process is centered
 Example 2
By using a three-sigma quality level (, assume one project has an average improvement
rate of 50% annually. Assuming a 1.5σ shift in the mean and the percentage within the
limits is 0.80. The target for perfection is the achievement of no more than 3.4 defects
per million opportunities. How many years will it take to achieve six-sigma quality?
Sol.
Assuming a shift in the mean that is customary with six-sigma applications [, the
percentage within the and limits is:

Then the ppm defective is:

Using the equation:

15.8
It will take the business about 15 years and 8 months to achieve quality
 Example 3
The life of an automotive battery is normally distributed with mean 900 days and
standard deviation 35 days. What fraction of these batteries would be expected
to survive beyond 1,000 days?

Let X be the life of an automotive battery.

= 0.212 %
 Conclusion
• A quality system management is a collection of business processes focused
on consistently meeting customer requirements and enhancing their
satisfaction.
• It is expected this course will benefits the students to all the key aspects of
quality that need to be embedded in processes, products and services of a
company, operating in the thriving engineering and technology-based
industry which good for future working environment.
Thank You