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The product features, which must be measurable, are called the “Criticalto-Quality Characteristics” (CTQs)

Revenue per day = No. candles produced per day * % good candles * Selling Prices per candle

Profit = revenue per day - No. candles produced per day * Production Cost per candle

The total revenue per day possible with no yield loss is 10000 * 2.59 = 25900 EUR/day. Subtract the actual revenue per
day to get the revenue lost per day

What does this cost the company per month in revenue loss (assume average 23 working days per month)? (23 working
days * revenue loss per day)
Flow chart Decorating Washing Roasting Hulling Salting Packaging

Define: Voice of the customer Customer expectations.


Define: Project Selection Potential projects. Potential savings.Build a team!

Measure: Process Capability Sampling plan. Measure CTQ parameter


Process mapping. Measure influencing parameters.

Analyze: Fishbone:
Man Machine Material Method Shift Operator, Age of roasting machine, Size of tray, Amount of
Measurement Environment water used, Reliability of measurements, Weather Moisture%

Improve Six sigma tools

Control Control plan. Reponse plan. Congratulate the team!


DEFINE Customer Expectation
p= # of defective units produced at a process step / total number of produced units going into the process step(“fraction defec
Yield = # good units produced at a process step / # total units going into the process step
Yield =1 –p
If you have more than one process step (or part) to make your product where
n: number of process steps (or parts)
1 -p: yield at each process step (all steps or parts have same yield)
then the overall good units coming out of the entire process is the
Process Yield* = (1 -p)n
For different yields at each process step, you have to multiply the yields for each step together
a: Yield at step 1, b: Yield at step 2, c: Yield at step 3…
Process Yield = (a)(b)(c)

Parts per Million: ppm


p= # of defective units / total number of produced units = “fraction defective”
ppm= # defective units ×million units
ppm=p×1 million

DPU: Defects per Unit, the average number of defects per unit of product
•DPMO: Defects per Million Opportunities

DPU =Total # of Defects / Total # of Units

DPMO =DPU*1000000 / Total Opportunities for a Defect in One Unit


DPMO = Total # of Defects×1000000 / Total # of Units ×Total Opportunities for a Defect in One Unit

if there is only 1 defect possible per unit, then the #defects will be equivalent to the # of defective units (every defect will prod
DPMO = Totakl # of Defectives×1000000 /Total # of Units×(1)= ppm

The mean (µ) represents the center point around which the data (population) is distributed
• The standard deviation (σ) represents the amount of variability (dispersion) in the data about the center point
• The square of the standard deviation is the variance (σ2)
Little Law:
Inventory=Flow rate * Flow Time
I=RT
R= Flow rate, Throughput
T=Flow time, Lead Time, Cycle time

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