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Customer

g)
M
Regent .

Input → Prows → output


-

To increase
from performance ,
reduce variance of process
output

Proms is activities
a set
of

in list activities have both value added and


of
a we .

wasteful activities

Lean -7 Activity based 66 → output based -

66
-

⑦ variation to

⑤ Types of
Variation a) common cause variation

b) special cause variation


a) Common cause variations are due to factors internal

to the process .

b) Special variations are due to a specific variation in the

process due to external factors .

-
Attributes

① Rare event sees occurrence


'

. .


Higher impact
eg
: Demonetization on ATM metrics ,
Disaster Mgmt .

i. Total Variation = CCV t Scv

( in any procurers )

in 66 TV has to be reduced
,

and
since SCV has
higher impact focus on SCV .

eliminate Scullinpact of SCV

Thus we make
process stable ( free of external influence )

⑤ Decision
.
Criteria of identifying care SCV
Central Limit 7hm : Freq distribution of avg of sample

data is always normally


distributed .

-1
Purpose of collecting data ,
is to get
① median mode
Central Tendency → Mean
, ,

② spread → Range ,
St. Der
,
Inter Quartile Range

→ Reduce spread 2 more central tendency odour to


target

→ For normal distribution ,

① Mean = Median = Mode = Peak

Area ( I 15 ) 68-1 ( Axis Mean to )


② = .
x =

(Out of 100 datapoints


,
68 lie between I 5 )

③ Area ( I 25) = 95 t .

④ Area ( I 30 ) = 99.73-1 .

Area under the graph is denoted as 2- score



due to
→ I 36 is
always identified as common cause

variations

CCV
defects due to
'

-
. 99.73-1 .
are

( universally
"

0.27-1 - a
' ' ' '
SCV

accepted ?

→ voice of Process is the range of I 35

( x Axis limits )

Anything between I30


'

. . that lies → CCV

' ' ' ' ' '


outside I 36 → SCV

→ External Factors ( SCV) can have both tvc ( -

D to -367

2 -
ve ( 36 to D )

→ when SCV 's are eliminated process is made stable .


free

of SCVS .
This needs an action plan .

Prows is robust not


influenced by external factors
a)

b) Thin Ccr has to be reduced


→ Performance of a
fronts is defined in terms of

this the
6 level . For we need to clarify on
different

types of data

discrete and continuous data


→ Most common
types are

collecting data through counting → discrete

through measurement Intimacies


collecting data → .

→ is followed by unit then it is continuous


If response
.

→ How discrete
many →

How much → continuous

→ is
Sigmar level extent of Voc =
VOD

→ Process KPIs can be defined at


efficiency or
effectiveness
level

Sigma level is
focussed on only effectiveness level

in
Effectiveness can be measured terms
of customer

metrics .
→ To make brows efficient , we adopt lean practices .

" " ' ' " ' '


65
effective n

→ To measure
Sigma level -

for ,

I
continuous Discrete .

- I -

Cp or Cpu -1 Prows capability ,


Defects or
Defectives .

Index ( DPMO ) ( Yield ) .

→ I
defective part can have multiple defects .

defectives -1 bad 01ps

defects → reasons for bad 01ps

defects ink leakage scratch


eg : For a
fan ,
list of →
,

discontinuous
poor grip ,
writing
loose cap .

5 lis
Not defective .

Consider Sam .

sample i
St
2nd 3rd ⑦g
th -
s
IT

No -

of defects
-
2 3
4 0 I
→ DPMO -

Defects per million


opportunities

opportunities are maximum possible count


of defects

For the samples above ,

of defects 10
=
Total count

Overall opportunity of defects = 25 ( 5 defects possibilities


per sample ) ,

10
"

- . DPO =

-25

Now DPMO =
I ×
106 =
4,00 ,
000
25

ie out of 1 million outcomes almost got . are defectives -

lerch
Sigma conversion table to
Use to convert DPMO 5 .

For ooo DPMO level is l 756


4,00 6
-

, ,
66 DPMO is 3 -4
→ in a
process

To
identify number of defect opportunities in any process ,

the SOP of process


we need to
identify .

From This the Entail should be identified


parameters .

This is equal to the number


of opportunities of defects

→ DP Mo is different from PP M -

the previous example PPM lob


#
in = '

b .

= No
of defective x 10
-
-

Total no -

of samples

PPM is dependent on distribution of defects .

" "

independent
" "
D PMO is

i .
DPMO is a better quality metric .

Yield
Yield =
output
input

→ ztyybes

Overall Yield
9)
nine
b) First yield .

consider a
process .

-①J#
overall yield
=
go y .

I
go

I

'

10 ( Ry )

First time Yield / First pass yield f RFT


fMRI FTIR /FCR/ = so I -
-

( F PY ) Yield
Throughput
.
-

→ Suppose none of The


parts were rejected in freer example ,

Overall Yield =
100-1 -

Thus overall yield hides inefficiencies due to rework .

i is better
.

first time yield a measure

→ overall yield = Good Parts (GP) Tp BP


=
I BI
-
-

yep
-

Total pants P) TP
106
(1%1)×106
overall yield x 106 = -

= lob - PPM .

→ In 65 First time yield = 99.999967 GP


,

process ( not overall yield)

→ First tprionty is for DPMO

thin First time yield .

else overall yield / PPM .

Misconceptions about Six Sigma -

doesn't
company promotes itself

When a as a 66 company ,

necessarily the KPIs at


mean that all different are

99.99973 I
- -


Sigma levels are for processes ,
not people
→ when six Sigma activities are launched ,
realistic targets
must be
defined

→ 66 level Framework .

'
3- 4 DPMO D → Define
99.9999%7-1 . M → Measure
1
A →
Analyze

\
I → Improve

I C → control .

→ when 6 G is initiated it implies framework is only adopted .

→ Benchmark 5 levels varies across industries .

Kano Model


tool to
capture voice of customer
( VOC )


customer requirements are
gathered through .

feedback Focus Group


Surreys ,
,
\

→ ① capturing the Must be factors ( basic needs )

of the customer or
functionality of the
product
( usually taken for granted ) / unstated quality

be
features ( additional features
the to
② More better .

competitive ?

③ Delight r ( something beyond customer's features ) .

( to penetrate the market )

better
satisfied
^
quite c competitive

÷a#÷n
edge )

delight
connotation )

:
C functional
quality )


not satisfied
-

KANO CHART
→ sometimes nonfunctional features can also brooms

must be due to customer requirements .

the
→ with the passage of time also
delights → more
better }
mustbe .


converting customer needs to measurable quantities
is CTB ( critical to quality )

→ KPI +
Target =
CTB .

How to initiate a six Sigma project ?

Due diligence I Pre study ( Feasibility study .

model
① Capture to C. / WB -

Perform
Kano .

a) customer complaints
b) cost of production
Adherence
c) Schedule
② comparative Analysis

a) Must be then b) Month better

and
finally c) delight r

action
③ Identify SCV and take .

→ D MAIL can be used only when process is


stable

→ PDL A can be used for both stable e unstable

processes .

D MAK can be used to reduce CCV


only .