1. 2 Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and.

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Section II: Six Sigma Goals

2

Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and work full-time on projects.

They are change agents, and by working with the employees, will increase knowledge through the acquisition of data.

Working together will make this philosophy part of the company culture in all aspects of the business.

What are Black Belts?

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Green Belts are individuals that may come from various backgrounds in any functional area. (manufacturing or transactional/office)

They are respected by their peers and are proficient in basic and advanced process improvement tools.

Green Belts assist the Black Belts, leads process improvement teams within their own natural work team, trains and coaches on tools and analysis, is typically part-time on a project, and may lead groups or organization where multiple projects are being worked.

What are Green Belts?

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The Six Sigma Infrastructure

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3s Process Centered

• Process is slightly

WIDER than the

specifications,

causing waste and

cost of poor quality

6s Process Centered

• Process FITS well

within the

specifications, so

even if the process

shifts, the values

fall well within

tolerances

Lower

Specification

Limit

Upper

Specification

Limit

Determined by

the customer

-6s

Determined by

the customer

+5s +6s

3sProcess

+4s+1s +2s +3s-2s -1s-4s -3s-5s

WASTE

-6s 0

6sProcess

+4s+5s+6s+1s +2s+3s-2s -1s-4s -3s-6s -5s 0

WASTE

What is Six Sigma?

Six Sigma is MUCH

more than this!

Metric based on standard deviation

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A statistical number ◦ 3.4 parts per million defective

(+/- six standard deviations with mean shift of +/-1.5s)

A proven, powerful five-step methodology for improving any process◦ Define - Measure - Analyze - Improve -

Control◦ Tools are nothing new, but extremely

powerful when executed in strict sequence

A culture, a mindset◦ the relentless pursuit and

elimination of variation A business methodology

What is Six Sigma?

Sigma Defects 2 308,537 3 66,807 4 6,210 5 233 6 3.4

A Six Sigma business lives these concepts in everything they do.

0.150.140.130.120.110.100.090.08

Upper SpecLower Spec

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6s is: a comprehensive business

methodology for achieving breakthrough improvement in performance by linking metrics and goals to innovation

6s is not: a quality initiative from the

quality department

What Six Sigma is and is not

The elevator speech: Six Sigma is the relentless pursuit of

variation reduction in all business processes.

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Aggressive goals

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Benchmarking

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Define Describe in detail the

process/product you are trying to improve?

Measure Baseline

Analyze Identify the Critical Few

Improve Reduce Variation Error Proofing

Control Control input Control Plan

DMAIC

See Quality Digest Article (MAIC_Introvert/Extrovert)

Measure

Analyze

Control

Improve

Characterize

OptimizeD

efin

e

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1. What are my processes? (SIPOC)

2. What is the capability (sigma level) / defect levels (PPM) of my processes? (Defect sheets, histograms, run charts)

3. Which processes have the highest defect levels? (Pareto analysis)

4. Who would I need on my team to eliminate the defects? (Team building)

5. What is causing the variation / defects? (Cause and effect diagrams; “Fishbone”)

6. Is my gaging at fault? (Gage R&R studies)

7. Are all of the steps necessary in my process? (Process mapping)

8. Which steps can be removed to reduce cycle time, eliminate waste? (Work simplification / Waste elimination)

9. Are there set-up reduction opportunities? (SMED analysis)

10. How can I prevent this problem from reoccurring? (Error proofing, poka-yoke)

11. Are there simple visual aids that could help reduce defects? (Visual controls)

12. Are there designed experiments that could shed some light on the situation? (DOE)

13. Do I have the right tools available to do the job? Are tools organized in a neat and orderly manner in the work area? Is everything clearly labeled? (5S and ergonomics)

14. Can this problem be solved quickly, or is an in-depth investigation using a Black Belt or Kaizen event necessary? (Six Sigma project / Kaizen event identification)

“14 Questions”

These 14 knowledge questions will lead you through the

DMAIC steps II-4

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Why do we need Six Sigma?

Profit

COPQTheoretical

COSTS

Profit

Profit Profit

TotalCost to

Produceor

Provide

Waste(COPQ)

TheoreticalCosts i.e..,Cost of Doing

the Right

Things Right the First Time

Waste(COPQ)

Theoretical

COSTS

Total Product or Service Price to Customers

Budget Constraints and Competition Drive a

Lowered Price

a. b. c. d. e.0

“The price of gaining knowledgeis nothing compared to the costof ignorance.” Anonymous

Pri

ce $

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Why “Six” Sigma?

There is a correlation between a company’s Cost of Quality and the

s rating of its key processes.

0

5

10

15

20

25

30

35

40

45

2 3 4 5 6

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4X : 6X

Why Six Sigma cont....

Traditional Quality CostsInspection, Warranty,Scrap, Rework, RejectsTangible...easy to measure!

Additional COPQMore setups, ExpeditingCosts, Lost Sales, Late Delivery, etc...Intangible...difficult or impossible to measure!

If Company Sales = $300M

Traditional Costs = 4 - 6% of Sales= $15M

Additional COPQ = 25 - 35% of Sales!

= $90MII-4

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Must have management support and understand COPQ

Must see ROI and customer satisfaction increase

Don’t give up – no turning back NEVER remove anyone from the

company because of process improvement

Rigorous Black/Green Belt selection process

Six Sigma implementation should follow the DMAIC cycle

Must have management support and understand COPQ

Lessons Learned

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Provides common measurement and common goals

Promotes team work Fixes quality problems Beats the competition Runs our whole business more

effectively Puts more money on our bottom

line Promotes prevention rather

than detection

In Summary, Six Sigma...

Focus should be on:- Quality- Delivery- Responsiveness- Cost II-6

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COPQ is defined as costs associated with using / maintaining business processes that produce services or products of inferior quality. There are four recognized categories:

◦ Prevention costs: costs related to avoiding costs in three areas listed below, as well as avoiding general quality failures.

◦ Appraisal costs: assessing sufficient conformance to quality requirements

◦ Internal failure costs: finding/correcting defects prior to delivery to the customer

◦ External failure costs: delivering inferior services or products to the customer

Cost of Poor Quality (COPQ) See V-59

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Preventative Costs: Training Quality Planning Design Review Quality system audits Continuous

improvement Technical data review Process validation Marketing research Customer surveys Field trials Supplier quality

planning SPC Process Control

Appraisal Costs: Receiving/Incoming

Inspection and Test Measurement

Equipment Qualification of

Supplier Product Source Inspection and

Control Programs Planned Inspections,

Tests Product or Service

Quality Audits Review of Test and

Inspection data Set-up Inspections and

Tests Depreciation

Allowances Measurement

Equipment Expense Special Product

Evaluations Evaluations of Field

Stock and Spare Parts Process Control

Measurement

Cost of Quality Examples See V-59-61

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Blame and trainTry to widen tolerancesAdd inspection operations

Which do you think will be effective?

Typical response to process problems…

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Four fully armored aircraft carriers launched fifteen flights of fighter planes on a daily basis. In each flight of planes, there were four F-15's, five F-14's, and a few support aircraft. For three hours the planes flew, finding target after target to attack, with few enemy fighters to bother them. Finally, after the mission was over, they did a flyby at the airfield, to show their friends how well they had fared. Their mission had been very successful.

Inspection and Six Sigma

How many F’s do YOU see?How many F’s do YOU see?

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Reliability on visual inspection methods?

1. How many F's did you find in the story after reading it only once? _______  2. How many F's did you find in the story after reading it through the second time? _______ 3. What was your range from your first to second reading? _______ 4. How is this similar to common inspection systems?________________________________________________________________________________________________________________________________ 5. What is the most cost-effective way to prevent non-conformances from passing through the system?________________________________________________________________________________________________________________________________   

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There were 29 F’s How many did you find?

Do you still think inspection is the answer?

How Many F’s?

Visual inspection only catches 85% of the errors*

I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdgnieg  THE PAOMNNEHAL PWEOR OF THE HMUAN MNID. Aoccdrnig to rscheearch atCmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a word are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter byistlef, but the wrod as a wlohe. Amzanig huh?

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The Boeing Company 

D1-9000  

Long-Range Mission 

To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability, and growth.

 Objectives

 To fulfill the Boeing mission, the following objectives will guide company actions.

 Continuous improvement in quality of products and processes

 A highly skilled and motivated workforce

 Capable and focused management

 Commitment to integrity

 Technical excellence

 Financial strength

 Introduction

Continuous improvement in quality of products and processes 

Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously

improve the overall efficiency and productivity of our design, manufacturing, administrative and support organizations.

 The ability of Boeing to successfully accomplish its mission is dependent upon the quality of

hardware provided by our suppliers. 

The primary purpose of this document is to establish The Boeing Company’s quality requirements for its suppliers. The focus is on defect

prevention rather than defect detection! Use of statistical methods described in this document enables suppliers to reduce variation in their

processes in order to prevent defects. This variation reduction will provide direct benefits to both Boeing and the supplier.

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The Quality Tradeoff

DetectionPrevention

InspectionReworkScrapWarrantyRejections

SPCProblem SolvingProcess Improvement

$ $

1. Where do we spend most of our money?

________________________________________________________________________________________________________________________________

2. How can the small moneybag on the left balance the large moneybag on the right?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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The Cost of Poor QualityFailure Costs Examples:

• Scrap• Rework• Customer Complaint Investigation• Returned Goods• Retrofit Costs• Recall Costs• Warranty Claims• Liability Costs• Penalties• Customer/User Goodwill • Other Failure Costs

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Perception and intuition are not always reality

To gather the facts for good decision making

Paradigms can limit our thought process

To identify/verify problem areas/bottlenecks

To understand our processes better (which factors are important, which are not)

To characterize our processes (to know how inputs and outputs are related)

Why do we need metrics?

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To validate our processes (are they performing within requirements/specs)

To evaluate customer satisfaction

To document our processes and communicate about them

To baseline a process To see if our processes are

improving To determine if a process is

stable or predictable and how much variation is inherent in the process

Why do we need metrics? (cont..)

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Business functions are rarely well defined nor managed as production processes

Measurements are typically non-existent

Traditional cost accounting systems don’t capture true costs of business processes

Many business processes are not tied to strategic objectives of the organization

They are complex and cross functional in nature

Why are Business Processes Difficult to Measure?

-Quoted from “Six Sigma on Business Processes: Common Organizational Issue”s, Six Sigma Associates

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The Main Idea:

Y = f(x)Y is the dependent output variable of a process. It is used to monitor a process to see if it is out of control, or if symptoms are developing within a process. It is a function of the Xs that contribute to the process. Once quantified through Design of Experiment, a transfer function Y=f(X) can be developed to define the relationship of elements and help control a process.

Y is the output measure, such as process cycle time or customer satisfaction. f(x) is the transfer function, which explains the transformation of the inputs into the output. x is any process input process step that is involved in producing the output.

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A Short Story….

“A manager of a large agricultural collective in the former Soviet Union three years in a row won the prize for the most productive collective. The performance measure used was the number of kilos of meat produced per year. The fourth year, he shot himself. He had no breeding stock left.

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• Output Variables

Sales Growth

Market Share

Profitability

A Traditional View

Manage the outputs.

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• Output Variables

• Input Variables

Sales Growth

Market Share

Profitability

Customer Satisfaction

Product Quality

On-Time Delivery

COPQ

Credit Terms

Service

Customer

Training

A Non-traditional View

Manage the inputs - respond to the outputs.

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The percentage of parts from a process that are free of defects.

It is also defined as the percentage of met commitments (total of defect free events) over the total number of opportunities.

YieldSee V-18

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Time frame: 4 weeks

Quantity launched: 100 parts in one-piece flow

Process: 2 processes including 3 operations (A-B-C)

Process 1

Operation A Yield: 100 %

Operation B Yield: 100%

Operation C Yield: 100%

Process 2

Operation A Yield: 90 %

Operation B Yield: 90%

Operation C Yield: 90%

Example:

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A B C

100 100 100 100

PARTS OUT

Y = 100% Y = 100% Y = 100%

THE TOTAL PROCESS YIELD= 1*1*1= 1 or 100%

100 90 81 73

A B C

Y = 90% Y = 90% Y = 90%

Process 1

Process 2

THE TOTAL PROCESS YIELD= 0.9*0.9*0.9= 0.73 or 73%

PARTS OUTPARTS IN

PARTS IN

Rolled Throughput Yield

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1. Each team will be handed 20 cards.2. Each team will have three operators,

each of whom will drop one card at a time onto a target area.

3. The method of drop will be to hold the card straight out at arms length (while standing upright) over the target area or not. Only those cards that fall completely within the target area may move on.

4. The goal is to deliver 20 completed products or units to the customer.

5. Metrics-1. # of good units per station (A)2. # of cards used per station (B)3. Total time of exercise (C)4. Total # of defects (D)

Exercise: FPY / RTY

Station 1 Station 2 Station 3 Customer

Start

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Exercise cont…

A = # of good units B = # of cards

A1= B1=

A2= B2=

A3= B3=

FPY: Y1 = A1/B1 =

Y2 = A2/B2 =

Y3 = A3/B3 =

RTY = Y1 * Y2 * Y3

Total Cost = ($10 * D) + ($2 *[B1+B2+B3])=

Average cost per unit = Total cost / 20 =

Average cycle time = C / 20 =

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RTY chart99-100%90-99%0-90%

# of Steps +/- 3 Sigma +/- 4 Sigma +/- 5 Sigma +/- 6 Sigma1 93.32% 99.379% 99.9767% 99.99966%7 61.63% 95.733% 99.837% 99.998%

10 50.09% 93.961% 99.767% 99.997%20 25.09% 88.286% 99.535% 99.993%40 6.29% 77.944% 99.072% 99.986%60 1.58% 68.814% 98.612% 99.980%80 0.40% 60.753% 98.153% 99.973%

100 0.10% 53.637% 97.697% 99.966%150 0.00% 39.282% 96.565% 99.949%200 0.00% 28.769% 95.446% 99.932%300 0.00% 15.431% 93.248% 99.898%400 0.00% 8.277% 91.100% 99.864%500 0.00% 4.439% 89.002% 99.830%600 0.00% 2.381% 86.952% 99.796%700 0.00% 1.277% 84.949% 99.762%800 0.00% 0.685% 82.992% 99.728%900 0.00% 0.367% 81.081% 99.694%

1,000 0.00% 0.197% 79.213% 99.661%1,200 0.00% 0.057% 75.606% 99.593%3,000 0.00% 0.000% 49.704% 98.985%

17,000 0.00% 0.000% 1.904% 94.384%38,000 0.00% 0.000% 0.014% 87.880%70,000 0.00% 0.000% 0.000% 78.820%

150,000 0.00% 0.000% 0.000% 60.050%

(Distribution shifted +/- 1.5 Sigma)Overall Yield vs. Sigma

a.k.a. LeanSigma

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The idea of capability:

What’s the probability of

a bent fender?

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The idea of control:

What’s the probability of

a bent fender…if the driver is not in

control?

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Process Control

Size

Tim

e

Out of Control

Special causes are present

In Control

Special causes are eliminated

Definition of a Special Cause: A quality failure

outside of the normal process that is unpredictable,

intermittent or unstable.

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Process Capability

Size

Tim

e

In Control but not capable

Variation from common causes are excessive

In Control and Capable

Variation from common causes are reduced

Upper Specification limit

Lower Specification limit

Definition of a Common Cause: A quality failure that is

always present as part of the random variation in the normal process.

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Variability

USLLSL

T

USLLSL T

Reduce Process Variation

to Improve Process

Capability

Reduce Process Variation

to Improve Process

Capability

6s = only using

half the

tolerance

6s = only using

half the

tolerance

50%

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