6 Sigma Awareness

8/12/2019 6 Sigma Awareness

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2Are you ready for Six sigma?

The starting point of the Six sigma journey is therealizationof the

problem, of agapbetween what you want to achieve and where you

currently are.

If your answer to any of these question is YES you are ready for six

sigma.

Do you have a sense of dissatisfaction over the present state of your

organization?Are your customers often dissatisfied with your quality / price / delivery ?

Do you face a threat from incoming competition?

Are you losing your market share?

Are your costs high?


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3What is Six sigma?

Six sigma is a problem solving technique

Six sigma is a statistical tool

Six sigma is nothing but Excellence in whatever we

do

Six Sigma means accuracy Six sigma means low variation

How it is different?

Six sigma gives more benefits


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4

Two Events

Industries taking up SIX SIGMA initiative

Release of ISO 9001: 2000


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5

Commonalities

Continual Improvement

Process Approach

Focus on excellence in current processes

Emphasis on measurement, quantification


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6Invented at Motorola

Perfected at General Electric


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SIX SIGMA AS A PHILOSOPHY

We are in the business to make money

We make money by satisfying needs

We are able to satisfy needs by doing

Every need / do pair is an interaction

The aim of customer focus is on improving need / do interactions

Repetition of the same action constitutes a process

Improvement of our business mean improvement of our processcustomers need product / service on-time, with zero defects, at the lowest cost

Suppliers create processes to generate needed products

As process capability improves, the product quality increases

As quality increases, costs & cycle-time go down

The attributes of customer satisfaction must be measured if they are to be

improved

To improve means we must be able to predict and prevent, not detect and react


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8

Prediction is correlated to certainty

Maximization of certainty is dependent upon the measurement of process

capabilityprocess capability is best understood & reported using statistics.

Statistics is dependent upon data

Data must be collected in the process according to a plan

Statistics is used to convert raw data into meaningful summary information

Statistical info. is used to report on, improve, and control the process

The basis of statistics is the mean & standard deviationThe mean reports on process centering

The standard deviation reports the extent of variation or scatter about the

mean

By combining the mean and standard deviation, the sigma of a process can

be calculated

The sigma of the process tells us how capable it is

The process sigma can be used to compare similar or dissimilar processes

SIX SIGMA AS A PHILOSOPHY ..contd


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Such comparison of processes is called benchmarking

Benchmarking is a competitive tool used to uncover what we do well

and not so good

Once basic competencies and deficiencies are known, corrective action

can be taken

Corrective action leads to the reduction of defects, cycle-time & cost

The reduction of defects, cycle-time, & cost leads to improved customer

satisfaction

As customer satisfaction improves, the likelihood of doing business

increases

As business increases, we (as individuals) grow and prosper

SIX SIGMA AS A PHILOSOPHY contd


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The power of measurement

WE DONT KNOW WHAT WE DONT KNOW

WE CANT ACT ON WHAT WE DONT KNOW

WE WONT KNOW UNTIL WE SEARCH

WE WONT SEARCH FOR WHAT WE DONT QUESTION

WE DONT QUESTION WHAT WE DONT MEASURE

HENCE, WE JUST DONT KNOW


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The Role of measurement

IF WE CANNOT EXPRESS WHAT WE KNOW

IN THE FORM OF NUMBERS, WE REALLY

DONT KNOW MUCH ABOUT IT

IF WE DONT KNOW MUCH ABOUT IT, WE

CANNOT CONTROL IT

IF WE CANNOT CONTROL IT, WE ARE AT THE

MERCY OF CHANCE


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12

Six Sigma

Gave us a measure for the performance of

even routine processes that we come

across in our daily activities


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13

HOW DO WE JUDGE THE EFFICACY OF

OUR PROCESSES?

Meets customer demands

(Process Effectiveness)

Meets business objectives

(Process Efficiency)

PROCESS


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14

What is sigma

Measure of variation

Data

1, 2, 3, 4, 5, 1, 1, 3, 5, 5,


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15Data

18.5

19.620.6

16.5

15.8


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16

THE NORMAL CURVE

Center of the barSmooth curve

interconnecting thecenter of each bar

Units of Measure

If we join the middle points of a Histogram and join it a free line

sketch then the distribution looks like as follows;


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17

NORMAL DISTRIBUTION -PROPERTIES

If we know the average () and variation () of normaldistribution then we can explain every thing of thedistribution or process:

68.26% of the values line within 1 from the mean AND

95.46% of the values line within 2 from the meanAND

99.73% of the values line within 3 from the mean

THEN the distribution is normal.

NORMAL DISTRIBUTION IS CHARACTERISED BY A BELLSHAPED CURVE.


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-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +668. 26%

95.44%

99.73%

99.9937%

99.999943%

99.9999998%( OF ALL ITEMS )

UTILIZING

THE SIX

STEPS TOSIX SIGMA

AVG.


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19

+1-1

AVG.= 18

LSL =16 USL =20

DefectDefect

= 2.0

Yield 68.27% Defect = 317300 PPM

20


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20

USL = 20

AVG. = 18

-2 +2

Defect Defect

= 1.0

LSL =16


21


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21

LSL = 16 USL = 20

AVG. = 18

-3 +3

Defect Defect

= 0.6


22


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22

LSL = 16 USL = 20

AVG. = 18

-4 +4

Defect Defect

= 0.5


23


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23

LSL = 16 USL = 20

AVG. = 18

-5 +5

Defect Defect

= 0.4

Yield 99.999943% Defect = 0.57 PPM

24


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24

LSL = 16 USL = 20

AVG. = 18

-6 +6

= 0.33

Yield 99.9999996% Defect = 0.002 PPM

25


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WHAT IS SIX SIGMA

Six sigma is when the inherent variability of the process is half that of the

requirements

LSL USL6

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6

A WORD OF CAUTION:It is possible to achieve six sigma by widening specs but theissue is that would the customer accept it

PICTORIALLY

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26

LSL = 16 USL = 20

AVG. = 18

-6 +6

= 0.33

Yield 99.9999996% Defect = 0.002 PPM

271 5


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27

LSL = 16 USL = 20

AVG. = 18

-6 +6

= 0.33

1.5

281 5


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28

LSL = 16 USL = 20

AVG. = 18

-6 +6

= 0.33

1.5

29LONG TERM AND SHORT TERM


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LONG TERM AND SHORT TERM

SIGMAS

LSL X USL LSL X USL

Cumulative

short-termcapability

Cumulative

long-termcapability

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THE CONCEPT OF Z

A CB

Z = | SL - Avg.| / std. deviation

ZuZ

L

+ -

31Improvement Scale


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308 537

66807

6210

233

Process

capability

23

Defects per million

opportunities

No. of times

improvement

45

3.46

4.6 times

11 times

68 times

26 times

Improvement Scale

32Improvement Scale


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308 537

66807

6210

233

Process

capability

23

Defects per million

opportunities

No. of times

improvement

45

3.46

4.6 times

11 times

68 times

26 times

p o e e t Sca e

Yield

69.2%

93.3%

99.4%

99.98%

99.9997%

THE IMPACT OF IMPROVEMENT


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THE DIFFERENCE BETWEEN 4SIGMA AND 6SIGMA

IS GREATER THAN HUNDREDFOLD IMPROVEMENT

100K

10K

1K

100

10

1

2 3 4 5 6 7

AVERAGECOMPANY

BEST IN CLASS

>>100X

3.4 PPM

SIGMA

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A 4


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A 4 company Profitable and growing

Market prices declining Competitors increasing

Has a Q assurance program

Spends 10 - 20 % of sales on rework & rejection

Unaware that best-in class companies have similar

processes 100 times better

Believes Zero defect goal is neither realistic nor

achievable

Has 10 times the number of suppliers required to run

the business

5 - 10 % customers are dissatisfied

351. Why we chose Six sigma ?


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3.4

ppm

233 ppm

6210ppm

66807 ppm

308537 ppm

697672 ppm

Average

Processes

Low

Hanging

Six Sigma

World class

Five Sigma

Four Sigma

Three Sigma

Two Sigma

One Sigma

Team work, Reviews

and Problem Solving

Advanced Statistical

Analysis

Design for

manufacturability

Climbing the steps

y g

36

Six Sigma


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Six Sigma

Steps followed :

Define

Measure

Analyse

Improve

Control

Continually improve

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Six Sigma


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Six Sigma

Steps followed :

Define

Measure

Analyse

Improve

Control

Continually improve

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Definethe Customer, their Critical to Quality (CTQ)issues, and the Core Business Process involved.

Define who customers are, what their

requirements are for products and services,

and what their expectations areDefine project boundaries the stop and

start of the process

Define the process to be improved by

mapping the process flow

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Measurethe performance of the Core BusinessProcess involved.

Develop a data collection plan for the

process

Collect data from many sources to

determine types of defects and metrics

Compare to customer survey results to

determine shortfall

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nalyzethe data collected and process map todetermine root causes of defects and opportunities

for improvement.

Identify gaps between current performance

and goal performance

Prioritize opportunities to improve

Identify sources of variation

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Improvethe target process by designing creativesolutions to fix and prevent problems.

Create innovate solutions using technology

and discipline

Develop and deploy implementation plan

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ontrolthe improvements to keep the process onthe new course.

Prevent reverting back to the "old way"

Require the development,

documentation and implementation of anongoing monitoring plan

Institutionalize the improvements

through the modification of systems and

structures (staffing, training, incentives

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DFSS

Design For Six Sigma

45Two Types of Quality


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yp y

Type 1: Customer Quality- The features that customers

want.

Type 2: Engineered Quality- The problems customers donot want.

Customer qualityleads to the size of the market segment.

It includes items such as function, features, colors and

designs. The better the customer quality, the bigger themarket size becomes. In order to obtain the market size,

the price must be reasonable. Customer quality is

addressed primarily though customer surveys and series of

QFDs.

On the other hand, engineered qualityincludes defects,failures, noise, vibration, unwanted phenomena, lowering

the cost of manufacture, and minimizing manufacturing

problems.

46DMAD

Define the project goals and customer


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Definethe project goals and customer

(internal and external) deliverables

Measureand determine customer needs

and specifications

Analyzethe process options to meet the

customer needs

Design(detailed) the process to meet the

customer needs

Verify the design performance and ability

to meet customer needs

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Customer Satisfaction Requirements


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Customer Satisfaction Requirements

Given that product performance features are perceived

by the customer as providing fair value, the

customer has a right to expect that the:

Product/Service is delivered when promised;

Product/Service is delivered with no defects;

Product/Service does not experience early life

failures; and Product does not fail excessively in service.


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FOCUS ON TOTAL DEFECTS PER UNIT

REDUCES THE CYCLE TIME PER UNIT

REDUCES WIP INVENTORY CARRYING COSTS

REDUCES DELIVERED DEFECTS

REDUCES EARLY LIFE FAILURE RATE

REDUCES DEFECT ANALYSIS AND REPAIR COST

PER UNIT

. . . HIGHER QUALITY, LOWER COST, ON TIME

. . . INCREASES CUSTOMER SATISFACTION

REASONS FOR IMPROVING QUALITY


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BUSINESSES WHICH HAVE ACHIEVED

SIGNIFICANT QUALITY IMPROVEMENT EARN 8%HIGHER PRICES.

BUSINESSES WHICH ACHIEVE A SUPERIOR

QUALITY POSITION ARE 3 TIMES MORE

PROFITABLE AS THOSE WITH INFERIOR LEVELSOF QUALITY

BUSINESSES WHICH IMPROVED THEIR QUALITY

GAINED 4% MARKET SHARE PER YEAR

EACH SIGNIFICANT POSITIVE SHIFT IN PROCESSCAPABILITY EQUATES TO A 10 TIMES

IMPROVEMENT IN PROFITABILITY

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What is a Defect?


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What is a Defect?

A defect is any variation of a required characteristicof the product (or its parts) or services which is far

enough from its target value to prevent the product

from fulfilling the physical and functional

requirements of the customer, as viewed through

the eyes of your customer.

A defect is also anything that causes the processor

or the customer to make adjustments.

ANYTHING THAT DISSATISIFIES YOUR CUSTOMER

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DEFINING A UNIT


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A 'unit' may be as diverse as a: Number of equipment

Line of software / harness

Purchase Order raised

Delivery / delay made against invoice Freight cost paid

Inventory every week

Job time card punched

DEFINING A UNIT

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THE COMMON METRIC:


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THE COMMON METRIC:

DEFECTS PER UNIT (DPU)

DPU is the best measure of the overall quality of the

process.

DPU is the independent variable.

Process yields are dependent upon DPU.

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DEFINING A UNIT & Defect


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'unit Defect Number of equipment ------- Rework Type

Line of software / harness ------- Mistake

Purchase Order raised ------- Wrong / missing entry

Invoice -------------------- Payment beyond 60 days Freight cost paid -------Cost more than certain amt.

Inventory every week -- MMI beyond a target value

Job time card punched-- wrong code / missing code

DEFINING A UNIT & Defect

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Histogram - XYZs arrival at PSW


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Histogram XYZ s arrival at PSW

2 2

3 3

87

5

4

6

2

0

1

2

3

4

5

6

7

8

9

7.55 8

8.05 8.

18.

15 8.2

8.25 8.

38.35 8.

4

56

Sigma level for XYZs arrival


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For 8.28 am ( Upper specification limit )

Defects = 08

Total cases = 42

Defects per unit ( DPU) = 08 / 42 = 0.1904

No. of opportunities (O) = 1

Defect per opportunity (DPO) = DPU / O = 0.1904

Defect per million opportunities (DPMO) = 190,400

Zlt = 0.88

Zst = 0.88+ 1.5 = 2.38 SIGMA LEVEL

57Normal Table


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Z DPO Z DPO Z DPO Z DPO

0.0 0.50

0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968

0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687

0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484

0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.0003370.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233

0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159

0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108

0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.0000720.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048

1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032

58Sigma level for error in PO

500 PO h k d


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500 POs are checked.

Defects ( mistakes) = 10

Total POs = 500

Defects per unit ( DPU) = 10 / 500 = 0.0200

No. of opportunities per PO (O) = 5

Total no. of opportunity (5 x500) = 2500

Defect per opportunity (DPO) = 10 / 2500= 0.0040

Defect per million opportunities (DPMO) =DPO x 106

=4000 Zlt = 2.65

Zst = 2.65+ 1.5 = 4.15 SIGMA LEVEL

59Normal Table


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0.0 0.50

0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968

0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687

0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484

0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.0003370.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233

0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159

0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108

0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.0000720.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048

1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032

60Normal Table


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Z DPO

4.1 0.0000208

4.2 0.0000134

4.3 0.00000862

4.4 0.00000548

4.5 0.000003454.6 0.00000215

4.7 0.00000133

4.8 0.000000818

4.9 0.0000004195.0 0.000000300

Z DPO

5.1 0.000000180

5.2 0.000000107

5.3 0.0000000627

5.4 0.0000000366

5.5 0.00000002125.6 0.0000000122

5.7 0.00000000698

5.8 0.00000000396

5.9 0.000000002236.0 0.00000000125

6.1 0.000000000694

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No. of opportunities = No. of points checked

If you dontcheck some points then it becomes a passive

opportunity. We should take only active opportunities intoour calculation of DPO, and level.

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Histogram - GR clearance time


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g

195215

151

52

16 10 9 81 3 4 1 2 1

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14

63sigma level - calculation Target = 4 days


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Target = 4 days

From June 2000 data, out of 668 GRs 55 GRs werecleared in 5 or more days

Number of defects (D) = 55

Number units (U) = 668

Defects per unit (DPU) = 55 / 668 = 0.0823

Opportunities for defects (O) = 1

Defects per opportunity(DPO) = (0.0823 / 1) = 0.0823 Defect per million opportunities (DPMO) = 82300

64Normal Table


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0.0 0.50

0.1 0.46 1.1 0.136 2.1 0.0179 3.1 0.000968

0.2 0.421 1.2 0.115 2.2 0.0139 3.2 0.000687

0.3 0.382 1.3 0.0968 2.3 0.0107 3.3 0.000484

0.4 0.345 1.4 0.0808 2.4 0.00820 3.4 0.0003370.5 0.309 1.5 0.0668 2.5 0.00621 3.5 0.000233

0.6 0.274 1.6 0.0548 2.6 0.00466 3.6 0.000159

0.7 0.242 1.7 0.0446 2.7 0.00347 3.7 0.000108

0.8 0.212 1.8 0.0359 2.8 0.00256 3.8 0.0000720.9 0.184 1.9 0.0287 2.9 0.00187 3.9 0.000048

1.0 0.158 2.0 0.0228 3.0 0.00135 4.0 0.000032

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Sigma value


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ZLT = 1.4,

ZST = 1.4+1.5 = 2.9 (Current Sigma level)

The target can be to achieve ZST = 4.4 byJanuary 2001.

66Improvement Scale


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308 537

66807

6210

233

Process

capability

23

Defects per million

opportunities

No. of times

improvement

45

3.46

4.6 times

11 times

68 times

26 times

67How Six sigma is different?

Its a systematic & structured way of problem solving that involves measurement


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It s a systematic & structured way of problem solving that involves measurement,analysis & monitoring of performance of a system or a process by using provenstatistical techniques. Some of them are -

1Estimating sigma level 8 Graphical Analysis

2 Rolled through put yield 9 Multi-vari charts

3 Measurement System Analysis 10 Central Limit Theorem

4 Process capability Indices 11 Confidence Interval5 Hypothesis testing 12 Control Charts

6 Correlation and Regression and

7 Design of Experiment 13 Control Plan

THE FOCUS OF SIX SIGMA


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Y = f (X)

TO GET RESULTS , SHOULD WE FOCUS OUR BEHAVIOUR

ON Y OR X ?

Y X1 .............................. XN

DEPENDENT INDEPENDENT

OUTPUT INPUT- PROCESS

EFFECT CAUSE

SYMPTOM PROBLEM

MONITOR CONTROL

IF WE ARE SO GOOD AT X , WHY DO WE CONSTANTLY TEST AND

INSPECT Y ?

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6 Sigma Awareness

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