1.0 Six Sigma Introduction

Introduction to Six Sigma Concept
Six Sigma GB Material Oct 2013
What is Six Sigma?

Six Sigma Many Definition
Six Sigma is: "A data-driven method for achieving near perfect
quality. Six Sigma analysis can focus on any element of
production or service, and has a strong emphasis on statistical
analysis in design, manufacturing and customer-oriented
activities." (The UK Department for Trade and Industry )
The Six Sigma Management System drives clarity around the
business strategy and the metrics that most reflect success
with that strategy. It provides the framework to prioritize
resources for projects that will improve the metrics, and it
leverages leaders who will manage the efforts for rapid,
sustainable, and improved business results...(Motorola
University )
"...a highly disciplined process that helps us focus on

developing and delivering near-perfect products and services
(GE)
Every one is right, but each one looks at it in its own way.
This is a traditional definition

Quality of design
Quality of conformance
Have you ever
Shot a rifle?
Played darts?
Played basketball?
Shot a round of golf?
Arko
Aniket
Who has better Quality?

This is a modern definition of quality
Definitions and Meaning of Quality

The Eight Dimensions of Product Quality
1.
2.
3.
4.
5.
6.
7.
8.
Performance
Reliability
Durability
Serviceability
Aesthetics
Features
Perceived Quality
Conformance to Standards
Dimensions of Service Quality

Reliability: Perform promised service dependably and
accurately. Example: receive mail at same time each day.
Responsiveness: Willingness to help customers promptly.
Example: avoid keeping customers waiting for no apparent
reason.
Assurance: Ability to convey trust and confidence. Example:
being polite and showing respect for customer.
Empathy: Ability to be approachable. Example: being a good
listener.
Tangibles: Physical facilities and facilitating goods. Example:
cleanliness.
The Six Sigma Evolutionary Timeline
1818: Gauss uses the normal curve

to explore the mathematics of error
analysis for measurement, probability
analysis, and hypothesis testing.
1736: French
mathematician
Abraham de
Moivre publishes
an article
introducing the
normal curve.
1924: Walter A. Shewhart introduces

the control chart and the distinction of
special vs. common cause variation as
contributors to process problems.
1896: Italian sociologist Vilfredo
Alfredo Pareto introduces the 80/20
rule and the Pareto distribution in
Cours dEconomie Politique.
1949: U. S. DOD issues Military

Procedure MIL-P-1629, Procedures
for Performing a Failure Mode Effects

and Criticality Analysis.
1960: Kaoru Ishikawa

introduces his now famous
cause-and-effect diagram.
1941: Alex Osborn, head of

BBDO Advertising, fathers a
widely-adopted set of rules for
brainstorming.
1970s: Dr. Noriaki Kano

introduces his two-dimensional
quality model and the three
types of quality.
1986: Bill Smith, a senior

engineer and scientist introduces
the concept of Six Sigma at
Motorola
1995: Jack Welch

launches Six Sigma at GE.
1994: Larry Bossidy launches

Six Sigma at Allied Signal.
Six SigmaSource
GB Material
Oct 2013
: Internet
Origin of Six Sigma
Motorola
the company that invented Six Sigma
Motorola started Six Sigma approach to achieve its one of the top ten
corporate goal of improving the quality by ten times within five years in 1981.
The term Six Sigma was coined by Bill Smith, an engineer with Motorola
Late 1970s - Motorola started experimenting with problem solving through

statistical analysis
1987 - Motorola officially launched its Six Sigma program as follows:
Improve quality 10 times by 1989
Improve quality 100 times by 1991
Achieve six sigma (3.4 DPMO) performance by 1992
Motorola won the first Malcolm Balridge National Quality Award in 1988.
Six SigmaSource
GB Material
Oct 2013
: Internet
The Growth of Six Sigma
GE
the company that perfected Six Sigma
Jack Welch launched Six Sigma at GE in Jan,1996
1998/99 - Green Belt exam certification became the criteria for management
promotions
2002/03 - Green Belt certification became the criteria for promotion to

management roles
Scope of six sigma initiative has changed from manufacturing to the entire
business service, product design and innovation.
Six SigmaSource
GB Material
Oct 2013
: Internet
Time Line
Allied Signal
Motorola
1985
1987
General Electric
1992
1995
Johnson & Johnson,

Ford, Nissan,
Honeywell
2002
Dr Mikel J Harry wrote a

Paper relating early failures to
quality
Six SigmaSource
GB Material
Oct 2013
: Internet
11
Two Meanings of Sigma
The term sigma is used to designate the distribution or spread about the
mean (average) of any process or procedure.
For a process, the sigma capability (z-value) is a metric that indicates how well
that process is performing. The higher the sigma capability, the better. Sigma
capability measures the capability of the process to produce defect-free
outputs. A defect is anything that results in customer dissatisfaction.
Six SigmaSource
GB Material
Oct 2013
: Internet
Six Sigma - The Initiative
Process
Systematic Approach to improving
processes and thereby Reducing Defects which
Affect What is Important to the Customer & To the
Business
Tools
Qualitative, Statistical and Instructional
Devices for
Observing Process Variables &
Their Relationships as well as Managing their
Character. Use of DMAIC & DMADV TOOLKIT.
13
What is it based on?
Customer .....
Anyone Who Receives
Product, Service, or Information
Opportunity .....
Every Chance to Do Something
Either Right or Wrong
Successes Vs. Defects .....

Every Result of an Opportunity Either Meets
the Customer Specification or it Doesnt
14
Strategy
Know Whats Important to the

Customer
Reduce Defects
Reduce Variation
Center Around Target
Breakthrough Improvement Not Incremental!

15
Changing The Decision Making Processes
Decision Making
Growth Path
1. Intuition, gut feel, I think ..
Types of Problems
You Will Normally Solve
Simple
2. We have Raw Data and look at it

3. We make graphs / charts of the data
4. We use advanced statistical tools
to evaluate the data
How Many Times Have Your Heard This ?
Complex
I Think The Problem Is
16
Quiz - 1
In a monthly progress review the following was reported ;
Yield of overall process is improved from 85% (average till last
month) to 89% (Current month).
Based on above information do you like to congratulate the team ?
Yes/No/May be
Possible Cases
Feb
Case - 1
Apr
Jun
Aug
Oct
Case - 2
90.0
85.5
87.5
85.0
85
85.0
85
82.5
84.5
80.0
Case - 3
Case - 4
90.0
88
87.5
86
85
84
85.0
82
82.5
80
85
80.0
Feb
Apr
Jun
Aug
Oct
Month
17
THE GOALS OF SIX SIGMA:
Variation Reduction
Defect Reduction
Yield Improvement
Improved Customer
Satisfaction
Higher Net Income
A : High average but less variation
B : Less average but high variation
18
Knowledge is the Foundation
Business Survival & Growth

Customer Satisfaction
Quality, Price, Delivery
CTQs
Process Capability/Performance
Level of Process Variation
Knowledge
The Ability to Learn Faster than our Competitors is the
Only Sustainable Advantage
Knowledge is the Foundation
When you can measure what you are speaking about,

and express it in numbers, you know something about it;
but when you cannot express it in numbers, your
knowledge is of a meager and unsatisfactory kind. It may
be the beginning of knowledge, but you have scarcely,
in your thoughts, advanced to the state of science.
Lord Kelvin
Risk
of
Loss
Extent of Knowledge
(Derived from Observation & Measurement)
20
The Changing Quality Philosophy
LSL
Poor
USL
Good
LSL
USL
Poor
No Losses @ the Target

Area outside the specification
limits represent
quality losses.
Conformance to Specifications
Goal Post Mentality
Old Philosophy of Quality

Deviation from the target

represents quality losses.
Taguchis Loss Function
Average Loss = k[2 + (y - T)2]
Variation is Evil
-Some Production Guy
New Philosophy of Quality

21
Quality: Uniformity Around a Target Value
A
A
A
A
A
8
A
10
Specifications are met. The pilot landed on the runway each time.
22
Quality: Uniformity Around a Target Value
B
BB 8
B1B
B
BB
B35742 96
10
The pilot lands closer to the center of the runway (the target value)
23
With which Pilot

would you rather
fly?
Why?
How do your
processes look?
A
A
A
A
A
5
A
9
10
B
B
BB
B
2 68
BB
B13B
74 9
510
Producing to a target value means we need to change our habits!

24
Six Sigma & bottom line results...

Six Sigma has significantly improved quality, image and
customer satisfaction,
while providing bottom line savings.
Client Savings
Motorola
2.2 Billion
2.6 years
ABB
TI
AlliedSignal
General Electric
Polaroid
Crane
Lockheed
Siebe PLC
Sony
Your Organisation
900 Million
600 Million
1.2 Billion
1.1 Billion
100 Million
10 Million
10 Million
100 Million
76 Million
???
1 year
1.8 years
2 years
9 months
1 year
1 year
9 months
9 months
7 Months
???
A Significant Competitive Advantage!

25
Sigma rating and PPM are correlated
Sigma Rating
2
3
4
5
6
Process
Capability
SIGMA RATING
PPM
308,537
66,807
6,210
233
3.4
Defects per
Million Opportunities
A PERFORMANCE MEASURE
26
Where Does The Industry Stand?

IRS - Tax Advice
PPM
(phone-in)
(140,000 PPM)
1,000,000
100,000
Restaurant Bills
10,000
Doctor Prescription Writing

Payroll Processing
Order WriteWrite-up
Journal Vouchers
Wire Transfers
1,000
Airline Baggage Handling
100
10
Domestic Airline Flight

Fatality Rate (0.43 PPM)
Average
Company
Best--in
in--Class
Best
6
Sigma Scale of Measure
27
Cant We Just Inspect Quality In?
Inspection exercise
Count how often the sixth letter of the alphabet appears
in the following text
The necessity of training farm hands for first class

farms in the fatherly handling of farm live stock is
foremost in the eyes of farm owners.
Since the forefathers of the farm owners trained the
farm hands for first class farms in the fatherly
handling of farm live stock, the farm owners feel
they should carry on with the family tradition of
training farm hands of first class farmers in the
fatherly handling of farm live stock because they
believe it is the basis of good fundamental farm
management.
28
The Focus of Six Sigma
Y=
f (X)
To get results, should we focus our behavior on the Y or X?

Y
Dependent
Output
Effect
Symptom
Monitor

X1 . . . XN
Independent
Input-Process
Cause
Problem
Control
If we are so good at X, why do we constantly test and inspect Y?

Focus on X rather than Y, as done historically
29
Quiz - 2
During the monthly progress review, it was reported that the
number of customer complaint is reduced from 50 (August 2013)
to 5 (Sept 2013).
Based on above information do you like to conclude that
performance the organization is improved ?
a) Yes
b) No
c) May be. It depends
Even we hypothetically agree that all the issues are same, but
that cant assure us sustenance of same results.
Hence the issue is how?

30
Re-establishing Control!
Y = f ( X1, X2, Xn. )

Understand and Manage the Inputs
and
good outputs will follow!
31
How do we understand our Y of processes?
Meets customer demands

(Process Effectiveness)
and
PROCESS
Meets business objectives

(Process Efficiency)
32
Harvesting the Fruit of Six Sigma
Sweet Fruit
Design for Manufacturability
Process Entitlement
Bulk of Fruit
------------------------------------
Process Characterization
and Optimization
Low Hanging Fruit

Seven Basic Tools
------------------------------------
Ground Fruit
Logic and Intuition
We don't know what we don't know

We can't act on what we don't know
We won't know until we search
We won't search for what we don't question
We don't question what we don't measure
Hence, We just don't know
33
The Many Approaches of Six Sigma
If Quality Leadership is to consist of
The Company must embrace
Superior Quality of Conformance
Six Sigma Process Improvement

(DMAIC)
Superior Quality of Design
Design for Six Sigma (DMADV)
34
The Roadmap
Six Sigma Breakthrough Strategy
1.
Define
Select CTQ Characteristic
2. Define Performance Standards
Measure
3. Validate Measurement System

4. Establish Product Capability
Analyze
5. Define Performance Objectives

6. Identify Variation Sources
7. Screen Potential Causes
Modify
Design
?
Yes
No
Design
Improve
Optimise
Control
Validate
DMAIC
DMADOV
8. Discover Variable Relationships

9. Establish Operating Tolerances
10. Validate Measurement System
11. Determine Process Capability
12. Implement Process Controls
The approaches are interlinked.

35
The DMAIC Model of Six Sigma
The Six Sigma model for process improvements
Define
Measure
Analyze
Improve
Control
Combination of change management & statistical analysis
The 5 Sigma Wall
6
5 Wall
Sigma 5
Level
4
3
Redesign
Benefit
Process Improvements
Plus Product Redesign to Match
Improved Process Capability
Process
Improvements Only
Time
Break through the 5

wall by redesign for manufacturability
37
DFSS Process
Select Projects based

on Quality indicators
and gap to targets
Output
Verify predicted
Quality and
Reliability
Reduce
Variation
D. F. S. S.
Improve
Efficiency
Develop
Concepts
Translate Voice of
the Customer to
Design Requirements
Input
Optimize Quality,
Reliability and Durability
and improve Robustness
Develop, select and

synthesize concepts
for better designs
38
Where can we use Six Sigma?

SERVICE
DESIGN
ADMIN.
PURCH.
Six Sigma
Methods
QA
MFG.
MAINT.
HR
39
Who is involved with Six Sigma?
Company leaders
Project champions
Finance department representatives
Black Belt Candidates and Black Belts
Green Belt Candidates and Green Belts
Yellow Belt Candidates and Yellow Belts
Six Sigma project teams
Master Black Belt Candidates
40
What Makes Six Sigma Different?

Infrastructure
Methodology & Tools
Data Driven
Statistically Validated
Use Of Software tools
Linkage with Business results
Best People Dedicated to Defect Reduction
Project Focused
41
What Six Sigma is.
Six Sigma is THE change programme
Six Sigma is a customer driven process improvement system that:
puts our Customers (BOTH INTERNAL & EXTERNAL) and their

requirements first
focuses on eliminating defects and reducing variation
combines proven statistical and analytical tools and techniques into

an integrated system
is a fact-based, data driven, scientific approach
is cross-functional, process-driven
helps select Projects based on measurable top and bottom-line

results
We need to lead
Six Sigma in a different way than before
No more
FAD
PLEASE
43
Whats Included
Six Sigma is not all new; but is a strategic

assembly of proven techniques that have
been used effectively for many years
Whats new
Software
Roadmap
Train - Apply -Review
Non-manufacturing
projects
Design Projects
Voice of the Customer
Whats not
Team structure
Gage Studies
Capability
SPC
DOE
44
What is lean?
45
45
What is lean?
50 Liters/min
Water Moving Slowly

A larger diameter pipe required
Lots of water in pipe (WIP)
Remove the obstacles in the house

(i.e. Lean the flow of water)
50 Liters/min
Water moving at a faster speed

A smaller diameter pipe required
Less water in pipe (WIP)
46
Six Sigma Vs Lean
S
N
Six Sigma
Lean
Focuses on defect reduction.
Focuses on maximizing process

velocity.
Cost reduction due to defect

reduction
Cost reduction due to WIP and

resource reduction
Focuses into the process.
Focuses in between the

processes also.
Quality
Speed
Lean + Six Sigma = Speed + Quality = Lowest Cost
47
You dont need to do this because,

survival is not compulsory!
- Dr. Edward Deming
48

1.0 Six Sigma Introduction

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

1.0 Six Sigma Introduction

Încărcat de

Drepturi de autor:

Formate disponibile

Introduction to Six Sigma Concept

Six Sigma GB Material Oct 2013

What is Six Sigma?

"...a highly disciplined process that helps us focus on

This is a traditional definition

Six Sigma GB Material Oct 2013

Have you ever

Who has better Quality?

This is a modern definition of quality

Six Sigma GB Material Oct 2013

Definitions and Meaning of Quality

Six Sigma GB Material Oct 2013

Dimensions of Service Quality

Six Sigma GB Material Oct 2013

The Six Sigma Evolutionary Timeline

1818: Gauss uses the normal curve

1924: Walter A. Shewhart introduces

1949: U. S. DOD issues Military

for Performing a Failure Mode Effects

1960: Kaoru Ishikawa

1941: Alex Osborn, head of

1970s: Dr. Noriaki Kano

1986: Bill Smith, a senior

1995: Jack Welch

1994: Larry Bossidy launches

Origin of Six Sigma

Late 1970s - Motorola started experimenting with problem solving through

The Growth of Six Sigma

2002/03 - Green Belt certification became the criteria for promotion to

Johnson & Johnson,

Dr Mikel J Harry wrote a

Two Meanings of Sigma

Six Sigma - The Initiative

What is it based on?

Successes Vs. Defects .....

Know Whats Important to the

Breakthrough Improvement Not Incremental!

Changing The Decision Making Processes

1. Intuition, gut feel, I think ..

2. We have Raw Data and look at it

How Many Times Have Your Heard This ?

Six Sigma GB Material Oct 2013

I Think The Problem Is

Six Sigma GB Material Oct 2013

THE GOALS OF SIX SIGMA:

Knowledge is the Foundation

Business Survival & Growth

Knowledge is the Foundation

When you can measure what you are speaking about,

Six Sigma GB Material Oct 2013

The Changing Quality Philosophy

No Losses @ the Target

Old Philosophy of Quality

Deviation from the target

New Philosophy of Quality

The Changing Quality Philosophy

Quality: Uniformity Around a Target Value

The Changing Quality Philosophy

Quality: Uniformity Around a Target Value

Six Sigma GB Material Oct 2013

The Changing Quality Philosophy

With which Pilot

Producing to a target value means we need to change our habits!

Six Sigma & bottom line results...