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Six Sigma

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Sigma is a letter in the Greek alphabets The term Sigma is used to denote distribution or spread around the mean (average) of any process or procedure For a business or manufacturing process, the sigma value is a metric that denotes how well the process is performing The higher the sigma value the better. The sigma value measures the capability of the process to deliver defect free output A defect is anything that results in customer dissatisfaction With Six Sigma the common measurement index is defects per unit where a unit could be anything--a component, piece of material, time frame, distance etc. The higher the sigma value, the less likely a process will produce defects. As sigma value goes up, customer satisfaction naturally goes up. Six s

What is Sigma?

Sigma is a statistical measure (Standard Deviation) denoting level of defects in a process/parameter It is a means to denote variation in a process
Examples of Control limits and Std Dev.
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Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Process 1 49.4 47.7 49.2 49.1 49.9 48.6 47.9 53.2 48.9 48.1 51.0 50.1 54.3 49.4 52.2 45.5 56.8 55.1 48.2 50.2

Process 2 43.8 51.2 47.6 46.6 57.0 53.3 59.6 46.8 55.4 40.3 60.2 46.2 54.7 51.1 57.5 54.1 53.6 49.0 55.6 45.0

Specs
35
35 38 41 44 47 50 53 56 59

Specs
56 59 62 65
62 65

38

41

44

47

50

53

1 1 3 5 7 9 11 13 15 17 19 21 3 5 7 9 11 13 15 17 19 21 23

Days

23 25 27 29 31 33 35 37

Process 1

Process 2

Days
25 27 29 31 33 35 37 39 41 43 45 47 49

39 41 43 45 47 49

Customer requires Target value50 and range from 40 to 60. Which process has the capability to meet customer requirements?
Process 1 : Mean is 49.8 Std Deviation is 2.53, Ranging from 56.8 to 42.8 Process 2 : mean is 49.8 Std Deviation is 4.39, Ranging from 60.2 to 38.9

Time Series Chart


135 130 125 120 115 110 105 100 95 90 85 80 75 70 65 60
13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 1 5 9

Specs

No of Days

From 71 76 81 86 91 96 101 106 111 116 121

To 75 80 85 90 95 100 105 110 115 120 125

Counts 1 2 3 10 12 22 20 17 8 3 2

Histogram of Y
Normal 25
Mean 99.67 StDev 10.02 N 100

20

Frequency

15

10

80

90

100 Y

110

120

130

34.13%

34.13%

0.13%

2.14%
-3

13.06% -1 Mean 68.26% +1

13.06%

2.14%

0.13%

-2

+2

+3

95.46%
99.73%

Measurement: Variance is the Enemy

In the chart below, 64.6% of the measures are between the upper and lower limits
Lower Limit Upper Limit

34.13 %

34.13 %

13.06 % 2.14 % 0.13 % -3 -2 -1


Mean ()

13.06 % 2.14 % 0.13 % +1 +2 +3

This is a 1 s process Reducing the variations in the process will bring a higher percentage within the acceptable limits

Measurement: Variance is the Enemy


Mean Mean

Time Intervals

Time Intervals

W I D E Variation

Slim Variation
Target

Target

Customer Upper Limit DEFECTS

Customer Upper Limit

Time (Min.).

Time (Min.).

ZERO DEFECTS

Control Chart
Abnormal variation due to assignable sources Out of control

UCL
Mean Normal variation due to chance Abnormal variation due to assignable sources

LCL

10 11 12 13 14 15

Sample number

Tracking Improvements
UCL UCL UCL

LCL LCL Process centered Process not centered and stable and not stable

LCL

Additional improvements made to the process

Different Shapes of Distributions

Establishing the Focus


Quality
It is the performance to the standard as expected by a customer

Customer
Anyone internal or external to the organisation who comes in contact with my work, product or service Anyone whose satisfaction depends on my output and actions

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Process Capability Standards Sigma level 3s Historical

Defects per mm oppn. 66,807

4s
6s

Current best
New with 6 s

6,210
3.4

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What is Six Sigma? Not only a statistical tool but, An attitude which continuously and relentlessly strives to achieve an almost zero defect level in any process. It is this attitude which gives maximum results in the longer run. It also makes the organisation robust
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Why Six Sigma? A structured tool/methodology to reduce and thereafter control defects in any process Reducing defects translates to
Better understanding of customer requirements Better customer satisfaction Increased customer loyalty Increased revenues Reduction in costs

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Y=f ( X, X1Xn)

Y
Dependent Output Effect Symptom Monitor
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X
Independent Input/Process Cause Problem Control

Capability=f(Variation)

The Chain of Causation


Our survival is dependent on growing the business Our business growth will depend on customer satisfaction Customer satisfaction is governed by quality, price and delivery Quality, price and delivery are controlled by process capability Process capability is greatly limited by variation Process variation leads to increase in defects, cost and cycle time To eliminate variation we must apply the right knowledge In order to apply the right knowledge, we must first acquire it.
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$
Customer Satisfaction

Yield Improvement

Defect Reduction

The Role of Measurement If we cannot express what we know in the form of numbers then we do not know much about it If we do not know much about it then we cannot control it If we cannot control it then we are at the mercy of chance
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Measure Characterisation ( Identification of Project ) Analyse Breakthrough Strategy

Improve
Optimisation Control

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Measure

Capability OK?

Analyse

Modify Design?

Improve

Capability OK?

Control

Redesign

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1 Select CTQ Characteristic 2 Define Performance Standards 3 Validate Measurement System 4 Establish Product Capability 5 Define Performance Objectives 6 Identify Variation Sources 7 Screen Potential Causes 8 Discover Variable Relationships 9 Establish Operating Tolerances 10 Validate Measurement System 11 Determine Process Capability 12 Establish Controls

How is Six Sigma implemented in an organisation? Total commitment and trust from the management is a key to success Champions for critical business areas Dedicated Black Belts for each project Process Owners to define a project and its charter
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How is Six Sigma implemented in an organisation? (Continued) Business Area examples, Manufacturing
Production, Maintenance, Electrical systems etc.

Research & Development, Market/Sell Finance, HR, Working Capital Mgmt


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How is Six Sigma implemented in an organisation? (Continued)


Champions are essentially the leaders from business areas who possess thorough knowledge of the processes. They are responsible for,
Defining and then prioritising the projects and preparing Project Charters Tracking Project progress Reporting to the top management on the status and progress of the projects

They also act as counselors to the Black Belts


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How is Six Sigma implemented in an organisation? (Continued)


Black Belts
Black Belts are essentially drawn from various business areas and are then fully dedicated to the Six Sigma projects They undergo training in the Six Sigma methodology They are responsible for executing the project and also for the project success based on predefined criteria, charter. They lead a team (Green Belts) of employees from the business areas which assists them in executing the projects

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How is Six Sigma implemented in an organisation? (Continued)


Qualities of a Black Belt Black Belts are vital to the success of Six Sigma
They should possess a good knowledge of the business They should possess leadership qualities They should be self motivated and go getters

In effect they should be those employees whose absence will be felt in their departments
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How is Six Sigma implemented in an organisation? (Continued)


Financial Green belt All the projects need to add to the bottom line of the company The financial impact and real savings are tracked and monitored by Financial Green belts. They are independent of the project team and act as unbiased third party to audit the improvements Six s

Six Sigma : Project stages (MAIC) Measure Analyse Improve Control

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S.M. Pathak

Six Sigma : Project stages Measure Data collection and evaluation of current Process Capabilities (sigma levels) Preparation of Process Flow Input and Output variables Failure Modes and Effects Analysis (FMEA)
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Six Sigma : Project stages Analyse Statistical analysis and correlation of parameters Root Cause Analysis Analysis of Behaviour (ABC and BOC) Identify parameters for improvement
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Six Sigma : Project stages Improve Design of Experiments (DOE) based on Analyse phase Analyse data from experiments Draw conclusions

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Six Sigma : Project stages Control Prepare plan to Manage Change Prepare modified Process Flow Prepare a control plan document Pin point responsibilities for the change Identify process owners for control purposes

Any Questions???

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