Effect of Quality
Benefits for customers
Financial Benefits.
Benefits for employees
1985 : Dr. Mikel J Harry wrote a paper relating early failures to quality.
1/2 Width
of landing
strip
Motorola:
General Electric:
Bechtel Corporation:
10
(in millions)
2500
2000
1500
Cost
Benefit
1000
500
0
1996
1998
2000
2002
11
6 SIGMA AS
A
PHILOSOPH
Y
CHANGE
THE
WORLD
TRANSFORM THE
ORGANIZATION
6 SIGMA AS
A PROCESS
6 SIGMA AS
A
STATISTICAL
TOOL
GROWTH
COSTS
OUT
PAIN, URGENCY, SURVIVAL
13
It is a Philosophy
Anything less than
ideal is an
opportunity for
improvement
Defects costs
money
Understanding
processes and
improving them is
the most efficient
way to achieve
lasting results
It is a Process
To achieve this level of
performance you need to:
Define, Measure, Analyse,
Improve and Control
It is Statistics
6 Sigma processes will
produce less than 3.4
defects per million
opportunities
14
1 . PHILOSOPHY
Y=
f(X)
X1 . . . Xn
Dependent
Output
Independent
Input-Process
Effect
Cause
Symptom
Monitor
Problem
16
17
Control
2. PROCESS
DMADV
DMAIC
New
Processes
Existing
Processes
Define
Measure
Analyze
Improve
Control
Define
Measure
Analyze
Design
Verify
18
Hidden Costs:
- Intangible
- Difficult to Measure
- More Setups
- Expediting Costs
Lost Opportunities
- Lost Sales
- Late Delivery
- The Hidden Factory
- Lost Customer Loyalty
- Excess Inventory
- Long Cycle Times
- Costly Engineering
Changes
Average COPQ
approximately 15% of Sales
19
Sigma Level
20
21
22
IN PROCESS YIELD
23
24
EXERCISE
25
3. IT IS STATISTICS?
27
WHAT IS STATISTICS?
Six Sigma Belt- Common Tasks
- To predict behavior of the process
- To compare the behavior with the target
- To identify the causes and link with the process
behavior
WHAT IS STATISTICS?
POPULATION VS SAMPLE
Population
STATISTICS PRACTICALLY
MEAN
MEAN : EXAMPLE
MEDIAN
MODE
RANGE
STANDARD DEVIATION
VARIANCE
EXERCISE
HISTOGRAM
CAUSES OF VARIABILITY
Common Causes:
Random variation within predictable range (usual)
No pattern
Inherent in process
Adjusting the process increases its variation
Special Causes
Non-random variation (unusual)
May exhibit a pattern
Assignable, explainable, controllable
Adjusting the process decreases its variation
51
LIMITS
Statistical
Process limits are used for individual items
Control limits are used with averages
Limits = 3
Define usual (common causes) & unusual (special causes)
Specification limits:
Engineered
Limits = target tolerance
Define acceptable & unacceptable
52
Another View
Off-Target
USL
LSL
OnTarget
Large
Variation
Reduce
Spread
LSL
USL
USL
target
target
If process limits and control limits are at the same location, Cpk = 1.
LSL and USL = Lower and Upper Specification Limits / LPL and UPL = Lower and Upper
Process Limits
54
-6
LSL
1
USL
10
11
12
55
1.5 SD
LSL
USL
SD = 1
10 11
12
56
7
Sigma 6
5
4
3
0.02
3.4
DPMO
233
6210
66810
57
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
500,000
308,300
158,650
67,000
22,700
6,220
1,350
233
32
3.4
600,000
# of Defect per Million
Sigma
numbers
per million
500,000
400,000
300,000
200,000
100,000
0
1.5
2.5
3.5
4.5
5.5
# of Sigmas
58
EXAMPLE
Process A
Process B
3.7
4.7
6.5
5.3
3.2
4.7
3.2
5.4
5.7
4.7
7.4
4.4
5.7
4.7
7.7
5.8
4.2
4.2
2.9
5.7
60
People
Power
Power
62
PROCESS POWER
63
Practical
Solution
Statistical
Solution
Statistical
Problem
Practical
Problem
APPROACH
64
DMAIC - SIMPLIFIED
Define
Measure
What is wrong?
Improve
Analyze
What is important?
Control
65
DMAIC APPROACH
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
DEFINE
D
Define
VoC - Who wants the project and why ?
M
Measure
A
Analyze
I
Improve
C
Control
67
MEASURE
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
68
ANALYZE
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
69
IMPROVE
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
70
CONTROL
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
71
PEOPLE POWER
72
6 S TRAINING
Champions
Master
Black
Belt
Blac
k
Belts
Green Belts
Team Members /
Yellow Belts
73
Champions
CHAMPION
74
Champions
CHAMPION
75
Master
Black Belt
76
77
BLACK BELT
Black
Belts
78
BLACK BELT
79
GREEN BELT
80
YELLOW BELT
FINANCIAL ANALYST
82
PROJECT SELECTION
83
SOURCES OF PROJECTS
External Sources:
Voice of Customer
What are we falling short of meeting customer needs?
What are the new needs of customers?
Voice of Market
Voice of Competitors
84
SOURCES OF PROJECTS
Internal Sources:
Voice of Process
Where are the defects, repairs, reworks?
What are the major delays?
What are the major wastes?
Voice of Employee
85
Sweet Fruit
Design for Repeatability
Process Enhancement
Bulk of Fruit
Process
Characterization
and Optimization
-----------------------------------Low Hanging Fruit
Seven Basic Tools
-----------------------------------Ground Fruit
Logic and Intuition
86
87