Presenting Six Sigma by the ASQ Six Sigma Forum. Overview What is Six Sigma? What can Six Sigma do? How does Six Sigma work? Six Sigma infrastructure.

Presenting Six Sigma

by the ASQ Six Sigma Forum

Overview

• What is Six Sigma?• What can Six Sigma do? • How does Six Sigma work?• Six Sigma infrastructure • The DMAIC methodology

A methodology that uses metrics and statistical analysis to improve processes, services, and products

What is Six Sigma?

A business philosophy that makes customer requirements top priority

What is Six Sigma?

A management system that unifies culture, standardizes processes, and

raises performance standards

What is Six Sigma?

Developed and deployed at Motorola

Six Sigma helps Motorola win Baldrige Award

1994-96

SS enters chemicals, healthcare, services 1996-98

SS enters finance, education, government

GE and Allied Signal results popularize the methodology for manufacturing

1988

1985-87

1999-2003

Six Sigma development milestones

Improve performance: reduce defects, systematize and stabilize processes, improve customer satisfaction

What can Six Sigma do?

Reduce costs: improve efficiency, eliminate waste, reduce costs of poor quality

What can Six Sigma do?

Improve the bottom line:

$GE: $3 billion in Six Sigma savings in the year 2000 alone

$Honeywell: $600 million dollars in savings in just one year

$Dow Chemical: $25 million investment regained within only one quarter

What can Six Sigma do?

The Greek letter σ refers to standard deviation, a measure of the variation of data about its average.

When we measure a process’s sigma value, we measure the number of units of standard deviations between the process center and the closest specification limit.

What is σ?

6 Sigma

6 Standard Deviations

UpperSpec

LowerSpec

Target

Process Center

A 6 σ process has 6 standard deviations between the target and the nearest specification limit

Higher σ = less variation = fewer defects

= better performance

Lower Specification

Limit (LSL)

Upper Specification Limit (USL)

6 σ process

A 6 σ processresults in only 3.4 defects per million

opportunities (DPMO)

3.46

2335

6,2104

66,8073

308,5372

690,0001

DPMOSigma level

4σ • 99.4% error free• Electrical outages

one hour per week• 6 out of every 1,000

invoices contain incorrect info

6σ

• 99.9997%

• Outages two seconds per week

• 3.4 out of every 1,000,000 invoices

How much better is 6σ?

The infrastructure: Executives and Champions secure organizational support for improvement projects run by Black Belts and Green Belts

How does Six Sigma work?

Green Belts

All staff

Master Black Belts

Black Belts

Project Team

Members

Champions

Executives

Six Sigma infrastructure

•Part-time SS (retain previous job duties)•Assist BBs with data collection and analysis•Lead teams and run projects

GBs

• Half- to full-time• Lead problem-solving projects• Train and coach project teams

BBs

•Full-time •Develop metrics and help establish strategic direction•Train and coach BBs and GBs

MBBs

• Up to 80% of time on Six Sigma• Project owners: remove obstacles,

provide resources, review progress• Translate company mission, goals,

and metrics into individual projects

Champions

• 25% of time on Six Sigma• Drive overall program• Align Six Sigma with organizational

culture and vision

Executives

Why the Belt terminology?

The methodology: teams apply the DMAIC (define, measure, analyze, improve, control) methodology to root out and eliminate the causes of defects

How does Six Sigma work?

DMAIC Methodology

no

Improve

Define

Measure

Analyze

Control

Modify design?

yes

Redesign

Define

• Identify processes to be improved

• Define defects, customer requirements, and opportunities for improvement

Define

• Establish project objectives, parameters, and

metrics

Define phase tools

• High-level, as-is business process map

• Voice of the Customer (VOC): determine what is critical to customer satisfaction

• Cost of quality/cost of poor quality (COQ, COPQ)

• Team charter

• Collect data on performance• Map the process

• Determine Critical to Quality (CTQ) characteristics

• Validate measurement system and establish a baseline

• Estimate process capability

Measure

Measure phase tools

• Detailed process map• Failure modes and

effects analysis (FMEA)

• Control charts• Gage reproducibility

and repeatability (Gage R&R)

• Process capability

• Identify possible sources of variation; narrow the search for key variables

• Perform hypothesis testing and correlation/regression

Analyze

• Outline areas for improvement; recommend redesign when necessary

Analyze phase tools

• Confidence intervals• Multi-vari analysis• Analysis of variance

(ANOVA)• Correlation/regression• Hypothesis testing

0

5

10

15

20

0 2 4 6 8 10

Correlation = 1

9.69.59.49.39.29.19.08.98.88.7

9.4

9.3

9.2

9.1

9.0

8.9

8.8

8.7

8.6

R-Sq = 92.0 %Y = 1.02031 + 0.872922X

Regression Plot

Ho = NullHa = Alternate

Improve

• Determine effect of key process variables on undesirable variation

• Develop and test potential solutions to reduce variation

• Implement validated solutions

Improve phase tools

• Completely randomized blocks• Design of experiments (DOE)

° Full-factorial—measures and analyzes the responses of all possible combinations of factors and factor levels

° Fractional-factorial—measures and analyzes responses for a balanced portion of the full-factorial array

• Response optimization• Response surface methodology

• Monitor the improved process

• Implement controls to hold the gains

• Establish and document new standard operating procedures

• Transfer responsibility to process owners

Control

Control phase tools

• Control plans• Evolutionary

operation (EVOP)

• Statistical process control (SPC)

• Process capability analysis

20100

4

3

2

1

0

U =1.930

UCL=3.794

LCL=0.06613

Lower Control Limit

Upper Control Limit

Center Line

How do we get started?

• Explore the business need: VOC, COQ, defect analysis

• Identify staff: Champions, BBs, GBs• Send staff for training:

Executives, 1-2 days GBs, 2 weeks Champions, 1 week BBs, 4 weeks

How long until we see results?

• Most projects require 4-8 months for completion and sustained results

• Ideally, an implementation never ends—new projects are continually launched to keep the company improving

Questions?

Looking for more information?

Please visit www.sixsigmaforum.com

Copyright © 2004 American Society for Quality.

All rights reserved.

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