Six Sigma Fundamentals

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Evolution of Six Sigma

1. Walter Shewhart first

sketched out the
control chart in 1924
2. Deming and Juran
helps Japanese
revolutionize their
quality and
competitiveness post
World War II in 1950s
3. Developed Just-In
Time concepts (TPS)
largely in 1960s and
1970s and particularly
in Toyota
4. TQM originated in
1950s and became
popular in 1980s.
5. Bill Smith coins Six –
Sigma at Motorola
6. ISO 9000 in 1987
7. Second generation of
Six Sigma – becomes
part of corporate plan
and march towards
Lean Six Sigma
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Concept of Sigma and Sigma Levels

• The term “sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure.

• For a business or manufacturing process, the sigma Level is a metric that

indicates how well that process is performing. The higher the sigma Level,
the better. Sigma level measures the capability of the process to perform
defect-free work. A defect is anything that results in customer
dissatisfaction.

s
As defects the Sigma Level
go down...
D goes up

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Concept of DPMO

s Sigma is
another word
for standard
deviation.
Something we can calculate
and measure for any process.

s Level DPMO Percentage 3s to 6s improvement

2 308, 500 69.1
3 66,800 93.32
20,000 times reduction in errors
4 6,200 99.4
5 233 99.98
6 3.4 99.99966 A True Quantum Leap

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Statistical Thinking of Mean and Variation

X X
XX Off-Target X
X X X Variation
X
XXXX
X X or X or
X X
X
LSL USL X
LSL USL
X
X
X

On-Target

On-Target
or
XXX
XXX Center Reduce
XXXX Process Spread
Center XXXX Reduce
Process Spread LSL USL

Mean and/or Variation are the real causes

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Six Sigma Defect Levels with Process Shift

± 1.5s

Part Or
Process
Variation

-6s -3s 0 3s 6s
± Six Sigma Design

If The Upper Spec Is 6 Sigma Away, Even If The Process Shifts

By As Much As 1.5 Sigma Only 3.4 ppm Is Out Of Spec

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 Implementing Six Sigma through DMAIC:
Overview of Define
Define
1. Identify the Specific
Problem and set Target
Deliverables:
Right Project Selection
Aspirational Target Setting
Measure Analyze Improve Control
2. Develop Project 3. Define Process Map
Charter
Deliverables: High Level
Deliverables: Process Map Connecting the
1) Develop The Business Customer to the Process
Case
2) Develop The Problem
and Goal Statements
3) Determine Project
Scope
4) Select Team & Define
Roles
5) Set Project Milestones
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Implementing Six Sigma through DMAIC:
Overview of Measure
Define Measure Analyze Improve Control

1. Understanding the 2. Define Performance 3. Measurement

current status of the
problem through data
Deliverable:
Drill down of Big Y to
Project Y and
Understanding the current
level of performance of
project y KPI/PI
Standards and set target
System Analysis
Deliverable:
Measurement System
Adequate to Measure Y.
Tools:
• Continuous Gage R&R
• Attribute Gage R&R

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 Implementing Six Sigma through DMAIC:
Overview of Analyze
Define Measure
1. Establish Process
Capability
Deliverable:
Baseline Current Process &
Set Aspirational Target
Tools: Basic statistics, Stability,
Concept of Normal
Distribution, Normality Test,
Sigma level for Continuous
data, Sigma Level for
Discrete data, Process
Capability
Analyze
2. Identify
Variation Sources
Deliverable: An exhaustive list
of all X’s which are believed
to influence the performance
of Y
Tools: Process Analysis, Cause
& Effect Diagram,
Prioritization Matrix
Improve Control
3. Validate Variation
Sources
Deliverable: List of
Statistically Significant X’s,
Chosen Based on Analysis
of Historical Data
Tools: Hypothesis Testing,
Regression Analysis
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 Implementing Six Sigma through DMAIC:
Overview of Improve
Define Measure
1. Discover Variable
Relationships
Deliverables:
1) Establish Transfer Function (a
visible relationship) Between Y
and Vital Few X’s.
2) Validate the relationship with
data.
Tools: DOE, Multiple Linear/
Non-linear Regression, Detailed
Process Mapping
Analyze Improve
2. Generate Possible
Solution(s)
Deliverables:
1) Determine Optimal Setting for
the Vital Few X’s and their
tolerances / Re-engineer
Process Steps
2) Define Improved Operational
Practices
3) Perform Confirmation Runs.
Tools: Simulation, OR Modeling,
Brainstorming
Control
3. Select Best Solution,
Plan & Implement
Deliverables:
1) Reduce list of solutions
2) Propose Final Solution
3) Develop Time-bound Plan
For Implementation of The
Solution
Tools: FMEA/Risk Analysis,
Cost Benefit Analysis,
Simulation, PERT/CPM
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Implementing Six Sigma through DMAIC:
Overview of Control
Define Measure Analyze Improve Control

1. Determine Process 2. Implement Process

Capability Control
Deliverables: Deliverables:
1) Determine Post-Improvement Develop and Implement
Capability and Performance Process Control Plan
2) Confirm the Improvement Tools: Control charts, Mistake
Goal Has Been Realized Proofing,
Tools: Normality Test, Sigma FMEA
level for Continuous data,
Sigma Level for Discrete
data, Process Capability

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Successful ‘Six Sigma’ Organizations

• Companies who have successfully adopted „Six Sigma‟ strategies

include:

Mumbai
Dabbawalas
-
Thank You

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