Intro to Six Sigma_Rev_14 Jan 06_For Attendants

2Scope of ModuleScope of Module

z A Brief of History

z What is Six Sigma?

z What makes Six Sigma Different?

z Why the Need for Six Sigma?

z How to Apply Six Sigma?

z The 5 Phases of Six Sigma

z The Road Map of Six Sigma

z Whos Who in Six Sigma?

3z 1981 : started at Motorola by Bob Galvinz 1985 : Six Sigma term 1st applied (Motorola)z 1989 : Group of Companies participating in Six

Sigma Research Institute Developmentz 1993 : started deployment in ABBz 1993 : started deployment in Texas Instrumentz 1994 : started deployment in Allied Signalz 1995 : started deployment in GEz ~ : Nokia(?),Sony(1999),

Toshiba(1999),Ford(1999)

Brief of History Brief of History

4Typical Normal CurveTypical Normal Curve

5Normal Curve (Historical)Normal Curve (Historical)

61.5 Sigma Shift at 31.5 Sigma Shift at 3

7Normal Curve (Historical)Normal Curve (Historical)

8Normal Curve 6Normal Curve 6

91.5 Sigma Shift at 61.5 Sigma Shift at 6

10

Process Capability is the inherent reproducibility of a processs output. It measures how well the process is currently behaving with respect to the output specifications. It refers to the uniformity of the process.

Capability is often thought of in terms of the proportion of output that will be within product specification tolerances. The frequency of defectives produced may be measured in

a) percentage (%)b) parts per million (ppm)c) parts per billion (ppb)

Process CapabilityProcess Capability

11

Historically, a Cp of 1.0 has indicated that a process is judged to be capable, i.e. if the process is centered within its engineering tolerance, 0.27% of parts produced will be beyond specification limits.

Cp Reject Rate1.00 0.270 % (2,700 DPPM)1.33 0.007 % (70 DPPM)1.50 6.8 ppm2.00 2.0 ppb

Process PotentialProcess Potential

12

Short-Term Capability shows the inherent variability of a machine or process operating within a brief period of time. One operator One line One material lot One supplier One measurement instrument

Long-Term Capability shows the variability of a machine or process operating over a period of time. It includes sources ofvariation in addition to the short-term variability.Multiple operators Multiple measurement instrumentsMultiple lines Multiple lots from different suppliers

ST vs. LT CapabilityST vs. LT Capability

13

Short-Term Long-Term

Sample Size 30 50 units 100 unitsNumber of Lots single lot several lotsPeriod of Time hours or days weeks or monthsNumber of Ops. single operator different operatorsProcess Potential Cp PpProcess Performance Cpk Ppk

ST vs. LT CapabilityST vs. LT Capability

Cp - Measure of precision using short-term SD

Cpk - Measure of accuracy and precision using short-term SD

Pp - Measure of precision using long-term SD

Ppk - Measure of accuracy and precision using long-term SD

Common Capability MeasuresCommon Capability Measures

LSL

Process Width

Design Tolerance

USL

T

+ 3- 3

Short - Term Capability Indices Long - Term Capability Indices

termshortp s

LSLUSLC

=*6

termshortUSLpk s

XUSLC

=*3

)()(

termlongUSLpk s

XUSLP

=*3

)()(

termlongp s

LSLUSLP

=*6

termshortLSLpk s

LSLXC

=*3

)()(

termlongLSLpk s

LSLXP

=*3

)()(

) , ( min )()( LSLpkUSLpkpk CCC = ) , ( min )()( LSLpkUSLpkpk PPP =

Cp/Cp/CpkCpk vs. Pp/vs. Pp/PpkPpk FormulaFormula

16

What is Six Sigma?What is Six Sigma?

1.1. Six Sigma is a business strategy.Six Sigma is a business strategy.

2.2. Six Sigma is a problem solving / prevention Six Sigma is a problem solving / prevention system.system.

3.3. Six Sigma is a statistical term.Six Sigma is a statistical term.

A comprehensive and flexible MethodologyMethodology aimed at breakthroughbreakthrough improvement to . . .

ACHIEVEACHIEVE

MAXIMIZEMAXIMIZE

SUSTAINSUSTAIN

. . . business successbusiness success

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1. Six Sigma as a Business Strategy1. Six Sigma as a Business Strategyz The goal of the Six Sigma

Business Strategy is to make fewer mistakesfewer mistakes in every aspect of our business, from manufacturing to

delivery,

from paying suppliers to invoicing customers,

from hiring to performance appraisals,

from taking a phone call to setting a travel itinerary

zz any where there is a processany where there is a process.

Defect ReductionDefect Reduction

Performance Performance ImprovementImprovement

Improved Customer Improved Customer SatisfactionSatisfaction

Higher Net IncomeHigher Net Income

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2. Six Sigma as a Problem Solving System2. Six Sigma as a Problem Solving System

What If you could. . .?What If you could. . .?What If you could. . .?z Select One of Your Most Highly

Leveraged Problems

z Identify and deploy dedicated resources.

z Provide That Person With All of the Training, Tools, and Resources They Need to Fix It

z Guarantee Them Uninterrupted Time and Focus to Work on It

z Get a Well Thought Out, Data Driven Solution?

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z Use Customer Requirements Throughout the Design and Development Process...

z Proactively Solve Business Problems for Customers

z Achieve the Industrys Lowest Costs Through Superior Product and Process Designs...

z Provide the Customer With Superior Reliability Through Superior Product Operating Margin?

What If you could. . .?What If you could. . .?What If you could. . .?


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z Really Understand What Your Customers Want...

z Clearly Understand and Optimize the Key Processes to Deliver What They Want ...

z Raise the Problem Solving and Prevention Skills of All Your Employees...

z Provide a Common Language, Tool Kit and Methodology With Which to Attack Your Problems

z Have Everyone Pulling in the Same Direction?

What If you could. . .?What If you could. . .?What If you could. . .?


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3. Six Sigma as a Statistical Term3. Six Sigma as a Statistical Term

2 308,5373 66,8074 6,2105 2336 3.4

PPMPPM

ZscoreZ

scoreProcess

Capability

z Six Sigma is a statistical term used to denote the quality of a process.

z Six Sigma processes operate at better than 3.4 defects per million opportunities.

z Many industrial products and processes perform in the 3-4 Sigma range

z Six Sigma represents a break-through goal for most organizations.

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What Is Six Sigma?What Is Six Sigma?

z It is a business process that allows companies to drastically improve their bottom line by designing and monitoring everyday business activities in ways that minimize waste and resources while increasing customer satisfaction.

z Mikel Harry, Richard Schroederz Six Sigma (Currency, 2000)

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What Is Six Sigma?What Is Six Sigma?

z Six Sigma is a comprehensive and flexible system for achieving, sustaining and maximizing business success. It is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, with diligent attention to managing, improving and reinventing business processes.

z Peter S Pande, Robert P Neuman, Roland R Cavanaghz The Six Sigma Way (McGraw Hill, 2000)

Whats Six Sigma Based On ?Whats Six Sigma Based On ?

Customer .....Anyone Who ReceivesProduct, Service, or Information

Opportunity .....Every Chance to Do SomethingEither Right or Wrong

Successes Vs. Defects .....Every Result of an Opportunity Either Meetsthe Customer Specification or it Doesnt

25

Six Sigma Six Sigma A Business StrategyA Business Strategy

Improved Sigma-Rating of Process

Improved Product or Process Quality

Reduced Cost of Operations

Greater Customer Satisfaction

26

Six Sigma Six Sigma A PhilosophyA Philosophy

z Six Sigma is about working smarter, not harder.

z Discover and neutralize harmful sources of variation

Mistakes are reduced (or eliminated) Improved process capability

Sigma rating goes up

27

zTo deal with a world of declining product priceszTo compete successfully with the best companies

in the worldzTo establish standard language and approaches

across functions and across businesseszTo develop the next generation of leaders

To increase our rate of quality and productivity improvement faster than our competitors

Why Implement Six Sigma Now?Why Implement Six Sigma Now?

28

Why Implement Six Sigma Now?Why Implement Six Sigma Now?

z Nothing New Most of the tools have been around for decades Neglected due to difficulty and discipline

BUTz Worldwide competition

Makes neglect dangerous

z Computing resources Makes application possible

29

99% Good is Not Good Enough99% Good is Not Good Enough

z 5,000 incorrect surgical procedures each week

z 20,000 lost articles of mail each hour

z No electricity for almost 7 hours each month

z Unsafe drinking water for almost 15 minutes each day

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Where Does Industry Stand?Where Does Industry Stand?

7

Sigma Scale of Measure

1,000,000

100,000

10,000

1,000

100

10

1

PPM

Restaurant BillsDoctor Prescription Writing

Payroll ProcessingOrderWrite-up

Journal VouchersWire Transfers

Airline Baggage HandlingPurchased Material Lot Reject Rate

Domestic Airline Flight Fatality Rate

(0.43 PPM)

Best-in-Class

AverageCompany

3 4 5 621

IRS - Tax Advice(phone-in)

(140,000 PPM)

With the 1.5 shift

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Why the Need for Six Sigma?Why the Need for Six Sigma?

z The goal of Six Sigma is not to achieve six sigma levels of quality (i.e. 3.4 dpmo).

Six Sigma is about improving profitability; improved quality and efficiency are immediate by-products.

32

z Lower Defects.....Scrap, Inventory, Warranty

z Lower Cycle Time....Time to Market, Higher Gross Margin, Reduced Inventories

z Higher Productivity..Less Capital & Labor

z Customer Satisfaction.Higher Revenue & Market Share

z Efficient Business PracticesGrowth through Higher Productivity, Lower Cost,

Better Responsiveness

What are the Benefits?What are the Benefits?

Supplier participation A common language and metrics for quality

33

Benefits of Six SigmaBenefits of Six Sigma

zCost reductionzProductivity improvementzMarket-share growthzCustomer retentionzCycle-time reductionzDefect reductionzCulture changezProduct/service development

34

How Does Six Sigma Make the Difference?How Does Six Sigma Make the Difference?

1. Vision2. Philosophy 3. Aggressive goal

Breakthrough improvement4. Metrics Driven5. Focus

Customer focus Problem focus Process focus

6. Method

35

1. Six Sigma Vision1. Six Sigma Vision

The Vision of Six SigmaThe Vision of Six Sigma is to delight customers by delivering world-class quality products through the achievement of Six Sigma levels of performance in everything we do.

36

2. Six Sigma Philosophy2. Six Sigma Philosophy

The Philosophy of Six SigmaThe Philosophy of Six Sigma is to apply a structured, systematic approach to achieve breakthrough improvement across all areas of our business.

37

Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

2 308,5373 66,8074 6,2105 2336 3.4

PPMPPM

ProcessCapabilityProcess

CapabilityDefects perMillion Opp.

3. Six Sigma 3. Six Sigma -- Aggressive GoalAggressive Goal

38

Breakthrough StrategyBreakthrough Strategy

Six Sigma - Six Sigma Enables Breakthrough LevelImprovement!

1 2 3 4 5

The problem with continuous improvements as the only goal,Organization sees improvement BUT loses the game .

Time in Years

Standard Approaches

Current Tools Kaizen Lean Manufacturing Re-engineering Typical TQM

I

m

p

r

o

v

e

m

e

n

t

Breakthrough Strategy

- Trained & DedicatedIndividuals

- Analytical Expertise- >70% Improvement per

Project

Six Sigma

39

Quality BreakthroughQuality Breakthrough

Time

R

e

j

e

c

t

R

a

t

e

Historical Level (0)Natural Variation under 0(30)

Special Variation

Optimum Level (1) Natural Variation under 1(31)

40

How Does Six Sigma Make the Difference? How Does Six Sigma Make the Difference?




6. Method

Measure of variation

Indicator of the capability of our processes and quality of our products

4. Metric Driven 4. Metric Driven -- The SigmaThe Sigma1

_

0

1

_

0

1

_

0

1

6

Sigma

A 3A 3 ProcessProcess = Target = Target

Average Deviation from the Mean

11

USLUSL

0.14% def

Upper Specification Limit (USL)Lower Specification Limit (LSL)Mean of the distribution ()Sigma ()

Upper Specification Limit (USL)Lower Specification Limit (LSL)Mean of the distribution ()Sigma ()

3

The distance between the point of inflection and the mean constitutes one sigma. If three sigma can be fit between the target value and the specification limit, we would say the process has three sigma capability.

The distance between the point of inflection and the mean constitutes one sigma. If three sigma can be fit between the target value and the specification limit, we would say the process has three sigma capability.

Average Deviation from Mean

11

USL

1 in a billion

1 2 3 4 5 6

A 6A 6 ProcessProcessWhy do we need 6?

Z score = 6

In reality a 6 Sigma process is something like

1/billion defectives

The z-score or - Level of the process is based on Short Term data but our process exhibits long term variability due to

shifts and drifts

Long TermShort Term

Small Standard DeviationSmall Standard Deviation Large Standard DeviationLarge Standard Deviation

How can we determine the long term capability How can we determine the long term capability from short term estimates of sigma?from short term estimates of sigma?

e.g. What is the size difference?e.g. What is the size difference?

Short and Long TermShort and Long Term

Determining the DifferenceDetermining the Difference

Without calculating both standard deviations it is often assumed that the Long Term distribution is made up of the short term distributions mean shifting / drifting by 1.5ST

Long TermShort Term

Small Standard DeviationSmall Standard Deviation Large Standard DeviationLarge Standard Deviation

STST LTLT

A Six Sigma ProcessA Six Sigma Process

The 1.5 shift is used as an off-set in the centering of the mean to generally account for dynamic non-random shifts in the process. It represents the average (estimated) amount of change a typical process will exhibit over many cycles of that process.

Sigma Level

Short-Term DPPM

Long-Term DPPM

1 158655.3 691462.52 22750.1 308537.53 1350.0 66807.24 31.7 6209.75 0.3 232.76 0.0 3.4

3.4ppm

LSL USL4.5T

A Six Sigma Process Shifted

by 1.5

LSL 6

0.001ppm

USL

ProcessCapability

A Six Sigma Process Centered

T

0.001ppm

A Six Sigma Process With SD Inflated by 1.5

DPPM = Defective Product Per Million

47

Six Sigma Six Sigma ---- Practical MeaningPractical Meaning

99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour

Unsafe drinking water for almost 15 minutes each day

5,000 incorrect surgical operations per week

Two short or long landings at most major airports each day

200,000 wrong drug prescriptions each year

No electricity for almost seven hours each month

Seven articles lost per hour

One unsafe minute every seven months

1.7 incorrect operations per week

One short or long landing every five years

68 wrong prescriptions per year

One hour without electricity every 34 years

99% Good (3.8 Sigma)

48





6. Method

49

Customer Focus: A Model For SuccessCustomer Focus: A Model For Success

TechnologyTechnology

CapabilityCapability

OrganizationOrganization

PeoplePeopleProcessesProcesses

Business survival is dependent upon how well we satisfy our customers.

Customer satisfaction is a function of quality, price, and delivery.

Quality, cost, and prompt delivery are dependent upon capability.

50

Customer Focus Customer Focus Critical To ConceptCritical To Concept

PROCESS

KPOV KPOV

KPIV KPIV KPIV

CTx(CTQ)

KPOVProcess Output(Measurable)

Process Inputswhich affect

Outputs

KPIV

What is critical to the customer?What is critical to the customer?Each project should be strategically linked and address at least one of three critical to areas:

QualityQuality

CostCost

DeliveryDelivery

51

Dedicated problem solvers, among the companys best people

Complete, disciplined data-based approach to problem solution

Combines the right people with the right tools on the right projects

Hard financial analysis on project selection and assessment

Focus on the Problem: Unique ApproachFocus on the Problem: Unique Approach

52

What Types of Problems Should We Target?What Types of Problems Should We Target?

z High Defect Rates

z Low Yields

z Excessive Cycle Time

z Excessive Machine Down Time

z High Maintenance Costs

z Bottlenecks

z Poor Process Capability

Non-Conformance

53

The Cost of Poor Quality (COPQ) IcebergThe Cost of Poor Quality (COPQ) Iceberg

Traditional Quality Costs

Lost OpportunityHidden Factory

Lost salesLate deliveryMore Setups

Expediting costsExcess inventoryLong cycle times

Lost Customer LoyaltyEngineering change orders

Additional Costs of Poor Quality

(intangible)

(tangible)

(Difficult or impossible to measure)

ScrapRework

InspectionWarranty

Rejects

Administration /DispositionConcessions

54

What is Cost of Poor Quality?What is Cost of Poor Quality?

z In addition to the direct costs associated with finding and fixing defects, Cost of Poor Quality also includes: The hidden cost of failing to meet customer expectations the first time The hidden opportunity for increased efficiency The hidden potential for higher profits The hidden loss in market share The hidden increase in production cycle time The hidden labor associated with ordering replacement material The hidden costs associated with disposing of defects The hidden cost of rework

z For most companies today, the cost of poor quality is likely to be 25 % of sales.

55

Why Focus on Cost of Poor Quality?Why Focus on Cost of Poor Quality?

Profit

Total Cost tomanufactureand deliverproducts

Profit

Cost ofPoor Quality

COPQ

TheoreticalCosts

Profit

COPQ

TheoreticalCosts

Which Feels Better??

Cost ofPoor Quality

COPQ

TheoreticalCosts

Price Erosion

56

Classical YieldClassical Yield

Factory A100 85 Factory B100 85

Not all Yields are alike!Not all Yields are alike!

15Scrap

15 Scrap

ReworkFactory C: The Hidden Factory

50 35

57

Classical YieldClassical Yield

Factory A100 8515Scrap

Factory B100 85

15 Scrap

Not all Yields are alike!Not all Yields are alike!

50 35

Equal Yields Unequal CostsClassical Yield does not correlate to cost, cycle time or inventory levels

Equal Yields Unequal CostsClassical Yield does not correlate to cost, cycle time or inventory levels

58

The Focus of Six Sigma The Focus of Six Sigma KPIVsKPIVs & & KPOVsKPOVs

If we canIf we can

1.1. Establish a Establish a relationshiprelationship between inputs and between inputs and outputs, andoutputs, and

2.2. We can We can controlcontrol the inputs, thenthe inputs, then

3.3. We can We can predictpredict the outputs!the outputs!

59

The Focus on the ProcessThe Focus on the Process

If we are so good at X, why do we constantly test and inspect Y?

Y Dependent Output Effect Symptom Monitor

X1 . . . XN Independent Input-Process Cause Problem Control

To get results, should we focus our behavior on the Y or X?

f (X)f (X)Y=Y=

Focus on X rather than Y, as done historicallyFocus on X rather than Y, as done historically

KPIV

KPOV

*

60

What To Do With the Vital Few. . . . .What To Do With the Vital Few. . . . .

ProcessKPIVKPIVKPIV

KPOV CTQ

Vital Few Correct(In-Spec)

Defect-Free!

KPIV

Control Control Control Control Control Control -- InputsInputs

Note: Statistically proven relationships between Inputs and Outputs

Manage the INPUTS and good OUTPUTS will followManage the INPUTS and good OUTPUTS will follow

61





6. Method

62

The Foundation of the Six Sigma ToolsThe Foundation of the Six Sigma Tools

DataData Driven AnalysisDriven Analysis

1. We only use experience, not data2. We collect data, but just look at the numbers3. We group the data so as to form charts and graphs4. We use census data with descriptive statistics5. We use sample data with descriptive statistics6. We use sample data with inferential statistics

Levels of Analysis:

What level are you at?What level are you at?

Goal

Data is used to classify, describe, improve, controlData is used to classify, describe, improve, control

63

The Improvement Strategy (MAIC)The Improvement Strategy (MAIC)Focus__

Vital Fewxi

Y

Y

Y

Y

Y

Vital Fewxi

Vital Fewxi

Vital Fewxi

Vital Fewxi

SIX SIGMA METHODS GENERATE DATA-BASED DECISIONS *

Select product or process key characteristic(s); e.g. Customer Y

Define performance standards for Y

Validate measurement system for Y

Establish process capability of creating Y

Define improvement objectives for Y

Identify variation sources in Y

Screen potential causes for change in Y & identify vital few Xi

Discover variable relationships between vital few Xi

Establish operating tolerances on vital few Xi

Validate measurement system for vital few Xi

Determine ability to control vital few Xi

Implement process control system on vital few Xi

X1, X2, Xn

X1, X2, Xn

Phase

Measure

Analyse

Improve

Control

64

Narrow the Scope Narrow the Scope ----> ID Leveraged KPIVs> ID Leveraged KPIVs

Optimized Process

30 - 50

10 - 15

4-8

Key Process InputVariables (KPIVs)

8 - 10 KPIVs

Critical KPIVs

3-6 Key LeverageKPIVs

Input VariablesProcess Map

Multi-Vari Studies,Correlations

Screening DOEs

DOEs, RSM

C&E Matrix and FMEA

Gage R&R, Capability

Hypoth. Tests, ANOVA

Quality Systems

SPC, Control Plans

Measure

Analyze

Improve

Control

65

The Six Sigma Approach The Six Sigma Approach -- DMAIC Strategy?DMAIC Strategy?

z Know whats important to the Customer (CTQs)

z Reduce defects

z Center around target

z Reduce Variation

66

Six Sigma System Six Sigma System -- How Does It Work?How Does It Work?

1. Measure - What is the Frequency and Accuracy?

2. Analyze - When & Where Does the Problem Occur?

3. Improve - How Can We Fix the Problem/Process?

4. Control - How Can We Make the Process Stay Fixed?

Y = f (X)

ChampionsMaster BBsBlackbelts

StrongAnalytical SkillsStrong ProblemSolving SkillsPeople & Leadership Skills

Critical toSuccessFastest or Largest Return

Lead FocusedEffort

Apply Skills andTools

DetermineCauses andSolutionsImprove Drivers

Select CapablePeople

Specific Skill SetTraining

Select KeyProblematic Areas

Assign Project toBlackbelts

ObtainResults

Preventative &Proactive Vs Appraisal &ReactionFewer TrialsFasterAccurate Solutions

67

How to Apply Six Sigma?How to Apply Six Sigma?

ProcessProcessInputInput OutputOutput

Unlike conventional improvement programs which focuses on improving the defects on the output, Six Sigma focuses on the process that creates or eliminates the defects.

Six Sigma seeks to reduce variability in a process by means of a systematic approach called the Breakthrough Strategy.

68

The 5 Phases of Six SigmaThe 5 Phases of Six Sigma

69

DefineDefine

The Define phase sets the stage for a successful Six Sigma project by addressing the following questions:

What is the problem of our focus? Whats our goal? And by when? Whos the customer impacted? What are the CTXs in-concern? Whats the process under investigation?

Who is my Customer ?

What matters ? (CTQ - Critical to Quality) ?

Whats the Scope ?

What Defect am I trying to Reduce ?

By how much (Realistic/Appropriate Goal) ?

Whats the current Cost of defects (Poor Quality) ?(What Benefits will we get by reducing defects ?)

Project Definition Project Definition

71

Baseline Metric DataBaseline Metric Data

z Baseline The average long-term defect level of a process when all input variables in the process are running in an unconstrained fashion.

z Entitlement The best-case short-term defect level of a process when all input variables in the process are centered and in-control.

z Benchmark The defect level of the process deemed by comparison to be the best process possible.

72

Breakthrough ImprovementBreakthrough Improvement

Time

R

e

j

e

c

t

R

a

t

e

Baseline ~ NID(0, 0)Natural Variation (30)

Special Variation

Goal ~ NID(1, 1) Natural Variation (31)Entitlement

Opportunity for

Improvement ()

0.7

Whats my Process ? How does it function ?

Which Outputs affect CTQs most

Which Inputs seem to affect Outputs (CTQs) most ?

Is my ability to Measure/Detect Good Enough?

Hows my process doing today ?

How good could my (current) process be when everything is running smoothly?

Whats the best that my process was Designed to do ?

MMeasureeasure

74

MeasureMeasure

75

Capability Analysis Capability Analysis -- Six Sigma MetricsSix Sigma Metrics

zDefect Rate in defects per unit (DPU) in defects per million opportunities (DPMO)

zYield in throughput yield in rolled throughput yield in normalized yield

76

FirstFirst--Time Yield (Time Yield (YYftft))

First-Time Yield is the number of units that pass a particular inspection, compared with the total number of units that pass through that point in the process.

Process 968 Accept

32 Reject

First-Time Yield, Yft = 968 / 1000 = 0.968

1,000Input

77

Throughput Yield (Throughput Yield (YYtptp))

Throughput Yield is the probability that a unit of product or service will pass through a given process step error-free.

Throughput Yield, Ytp = eDPU

Process 968 Accept

32 Reject

1,000Input

(40 Defects)

Throughput Yield, Ytp = e-(40/1000) = 0.961

78

The Role of MeasurementThe 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

Conclusion: When measurement systems are inadequate, so are the decisions we make using them.

79

(KPIV)

Summary : Summary : Measure PhaseMeasure Phase

80

1. (KPIV) Process Mapping / Cause & Effect / FMEA

2. 3. ""

Rolled through put yield , DPPM (Process Capability)

4. (Entitlement)

Summary : Summary : Measure PhaseMeasure Phase

Which Inputs actually (For Sure) affect my CTQs most ?

By how much ?

Do combinations of variables affect outputs?

If I change an input, do I really change the output ?

If I observe results (outputs) from the same process, differentlocations, and results appear to be different..... are they really ?

How many observations do I need to draw conclusions ?

What level of confidence do I have regarding my conclusions ?

AAnalyzenalyze

AnalyzeAnalyze

Process

KPIVKPIVKPIV

KPOV CTQ

ManageCorrect(In-Spec.)

Defect-Free!

KPIV

Statistically Describe the Relationship BetweenInputs and the Output . . . to

Find the Inputs with the Biggest Impact on the Output

Y = f (X)

83

AnalyzeAnalyze

84

KPIV's (KPIV's)

1. 2. KPOV (Key process output

variables) 3. 4. ""

Summary : Summary : Analyze PhaseAnalyze Phase

85

KPOV = F (KPIV's) 2total = 2between + 2within "" (Do it right the first time)

Summary : Summary : Analyze PhaseAnalyze Phase

Once I know for sure which inputs most affect my outputs, how do I set (properly implement) them ?

How many trials do I need to run to find and confirmthe optimal setting/procedure of these key inputs ?

IImprovemprove

ImproveImprove

Process

KPIVKPIVKPIV

KPOV CTQ

ManageCorrect(In-Spec.)

Defect-Free!

KPIV

HighLowMediumHigh

????????

Systematically Experimentwith the Inputs to Find the CombinationWhich Delivers the Optimal Output

Y = f (X)

88

ImproveImprove

89

6 (Variability) (Process) (Target) KPIV's KPOV (Optimizes)

KPIV's KPIV's KPIV's

Summary : Summary : Improve PhaseImprove Phase

90

1. KPIV's DOE KPIV KPIV 2. y = f (x1 , x2 , ) Regression ANOVA (analysis of Variance) 3. (Optimize) Advanced DOE Methods, EVOP

Summary : Summary : Improve PhaseImprove Phase

Once Ive reduced the Defects, how do thefunctional team and I keep them there ?

How does the functional team keep it going (routinely) ?

What do I set up to keep it going even when thingschange ...... People, Technology, and Customers

CControlontrol

ControlControl ControlControl Control Control

ProcessKPIVKPIVKPIV

KPOV CTQ

Manage Correct(In-Spec.)

Defect-Free!

KPIV

HighLowMediumHigh

Lock In the Inputs to Routinely Generatethe Optimal Output!

ControlControl

Y = f (X)

93

ControlControl

94

KPIV's (Maintain The Gains)

(Error Proof)

Summary : Summary : Control PhaseControl Phase

95

1. Documented Control Plans (SOP's) , , 2. (CriticaltoQuality factors : CTQ's) SPC KPOV KPIV's 3. (Simplify) (Error Proof) (5 )

Summary : Summary : Control PhaseControl Phase

96

In the Realize phase, ownership of the project is transferred to the finance representative, for tracking of financial benefits over the next 12 months.

RealizeRealize

97

Six Sigma ProjectRoadMap

98

FMEA , ,

CTQs COPQ est. : (Input) (Output)

KPIV KPOV

? ( - Improvement)

/

(Rolled Throughput Yield)

:

Six Sigma Six Sigma 1 1 -- (Measure) (Measure)

&

99

:() ()DPMO; Sigma ScoreCp Pp Cpk Ppk

/()

(COQ)

Minitab KPIV/KPOV

(

M

)

(

A

)

RoadMapRoadMap Six Sigma (2) Six Sigma (2) --

100

-(t-tests)

/

-Attribute

(Contingency Tables,Non-parametric study)

: ?( 2

: ?( 2 , )

: ?( 2 ,,)

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(Chi Sq., F-Test, Homogeneity of Variance)

Multi-Vari


(

A

)

101

(ANOVA)

/ : ?( 1 factor levels)

Correlation & Regression

(Characterize Phase) KPIV KPOV

: X Y


(

A

)

102

(Design of Experiment)

Fractional Factorial

:Set X Y

/ KPIV KPOV

Full FactorialSimple 2K

2 ( / )

: set X

Full Factorial

Multiple Variables

:

(

I

)


: X Y

103

DOE- (Blocking)

Confound

/

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EHS(Environment) (Health) (Safety)

EHS /


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104

/

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CTQ

SPC

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105

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: CTQ

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Functional Team Sign-Off&

Celebrate!

Yes

NoDF

S

S

RoadMapRoadMap Six Sigma (8) Six Sigma (8) -- DFSSDFSS

106

Whos Who in Six Sigma to Make it HappenWhos Who in Six Sigma to Make it Happen

BusinessBusinessChampionsChampions

Hands onHands onChampionsChampions

MasterMasterBlack BeltsBlack Belts Black BeltsBlack Belts

ManagementManagement

Green BeltsGreen Belts

Executives &Executives &All EmployeesAll Employees

Process Leaders &Process Leaders &Six Sigma ExecutiveSix Sigma Executive

107

PlayersPlayers

z Black Belt Chosen by management from the top people in the organization to work on improvement projects full time for 2 3 years

z Brown Belt Same training as the Black Belt but without the full-time commitment

z Green Belt Remainder of the technical-professional staffz Orange Belt Technician trainingz Master Black Belt Coaches, mentors, trainersz Hands-on-Champion Supervises Black belt in matters of

project selection, execution, resultsz Business Champion Executive leader for the divisionz Six Sigma Director Responsible for leading the ongoing

design and implementation of Six Sigma across the corporation

108

Black Belt Six Sigma Green Belt

Six Sigma Six Sigma FMEA, DOE, SPC

Black Belt 2

(Management)(Management)

109

Black Belts Project Champions ...

Black Belt 1 Project 4-6 2 () 1 US$ / / Black Belt

BB Project (Measure) , (Analysis), (Improve) (Control) - Y=F(X)

(Minitab,FMEA,DOE)BB Green Belt

( (Black Belt Black Belt -- BB)BB)

110

Green Belts Champions Black Belts Six Sigma Black Belts Project 3

Six Sigma FMEA, DOE, SPC Black Belt 2

((Green BeltGreen Belt -- GBGB))

111

((Finance RepresentativeFinance Representative))

112

What Is A Six Sigma Company? *What Is A Six Sigma Company? *

An organization that is actively working to build the themes and practices of Six Sigma into its daily management activities, and is showing significant improvements in process performance and customer satisfaction* The Six Sigma Way, Pande, Neuman, Cavanagh, McGraw Hill, 2000

113

Six Sigma StrategiesSix Sigma Strategies

ProcessImprovement

ProcessManagement

Process Design,Redesign

Find focused solutions to

eliminate root causes of business

performance problems

Replace a process or part of a process with a new one

Understanding the facilitation and flow of work that provides value to a customer

* The Six Sigma Way, Pande, Neuman, Cavanagh, McGraw Hill, 2000

114

Process &Product

Improvement

DMAICProcess &

ProductManagement

BPMS

Process &Product Design,Redesign

DFSS

Focus:DEFECT REDUCTION

Focus:BUILD

QUALITY IN

Focus: INFRASTURCTURE

BPMS place into Six Sigma ApproachBPMS place into Six Sigma Approach

116

3

2

1. 2.

3

117

Thank You Thank You forfor

Attending the ClassAttending the Class

Intro to Six Sigma_Rev_14 Jan 06_For Attendants

Documents

sigma term

sigma shift

sigma different

lt capability13shortterm

lt capabilityst

lt capabilitycp measure

shortterm variability

shortterm sdpp measure