Presentation

1-1

Six Sigma

6

1-2

Dilbert

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Hooving 30 m2 on 6-level means only 1 cm2 missed. 1/3.4 million part of the day equals 0.29 second 1/3.4 million part of the equator of the earth equals about 140

meter.

is the symbol for the standard deviation.

6 is equivalent with 3.4 defects per million opportunities.

6 : new world

Introduction

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Statistical background

Nominal

LSL USL

T olerance

ppm0.001

ppm1350

ppm1350

ppm0.001

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Statistical background

LSL

0 ppm ppm3.4

T olerance USL

ppm3.4ppm

66803

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What is Six Sigma?

Simple– Eliminate defects– Eliminate the opportunity to have defects

Complex– Vision– Metric (Standard measuring method)– Benchmark– Philosofy– Method– Tool for:

Customer satisfaction ‘Breakthrough’ improvements Continuous improvement

Employee involvement – Agressive goals

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Six Sigma Methods

Six Sigma is everywhere

Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

M & S

IT

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23456

30853766807

62102333.4

PPM69.1%93.3%99.38%99.977%99.9997%

Yield

Processperformance

Defects permillion

Long termyield

Current standard

World class

‘Sigma’-metric

Uniform standard

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Financially interesting

Benefits of 6approach w.r.t. financials

-level Defect rate (ppm)

Costs of poor quality Status of the company

6 3.4 < 10% of turnover World class 5 233 10-15% of turnover 4 6210 15-20% of turnover Current standard 3 66807 20-30% of turnover 2 308537 30-40% of turnover Bankruptcy

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Redo

Waste

Redo

Waste

The hidden factory

InputInput Processstep

Processstep

goodproductsgood

products ClientClientInspectionInspection

Why improvement?

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Six Sigma

• Motorola (1987)• Texas Intruments en DEC (1988)• IBM (1989)• AlliedSignal en Kodak (1994)• General Electric (1995)• Whirlpool, Bombardier en Polaroid (1996)• Sony, Citibank (1997)• Paccar-DAF Trucks, Black & Decker (1998)• Perlos, American Express (1999)• Ford (2000)

• Motorola (1987)• Texas Intruments en DEC (1988)• IBM (1989)• AlliedSignal en Kodak (1994)• General Electric (1995)• Whirlpool, Bombardier en Polaroid (1996)• Sony, Citibank (1997)• Paccar-DAF Trucks, Black & Decker (1998)• Perlos, American Express (1999)• Ford (2000)

Companies implementing Six SigmaCompanies implementing Six Sigma

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A scientific and practical method to achieve improvements in a company

Scientific:• Structured approach.• Assuming quantitative data.

Practical:• Emphasis on financial result.• Start with the voice of the customer.

Six Sigma

“Show me the data”

”Show me the money”

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DMAIC

Define Select a project

Measure Make concrete the project

Analyse Characterise the current situation

Improve Optimise the process

Control Assure the improvements

Method

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Caffeine% = f(DCM, time to extract, number of extracts, temperature, …)

Y = f(X1, X2, …, Xn)

OutputProcess Inputs

Focus on the process:

Method

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Praktical solution Statistical solution

Statistical problemPraktical problem

Y = f(X1, X2, …, Xn)

Approach to improve

New way?

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Define

Projects may be selected according to:

1. A complete list of requirements of customers.

2. A complete list of costs of poor quality.

3. A complete list of existing problems or targets.

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1. Requirements,2. Costs,3. Problems.

1.Collect data 2.Arrange the information

3.Give priority-Financial benefits-Expected throughput time of the project-Severity of the problem

321

Priorities

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Characteristics involved

Y = f(X1, X2, …, Xn)

Critical to Quality (External)Critical to Quality (Internal) Influence factors:

• Process parameters• Disturbances• Noise variables

Six Sigma

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RoastRoast

CoolCool

GrindGrind

PackPack

Coffeebeans

Sealed coffee

Moisture content

Moisture content

Example

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MeasureMeasure

Concrete the problem:• Establish how to measure in the

process;• Investigate the demands (USL,

LSL);• Evaluate the measurement method.

Concrete the problem:• Establish how to measure in the

process;• Investigate the demands (USL,

LSL);• Evaluate the measurement method.

Measure

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4.54.0

USLUSL

Moisture%Moisture%

Measure

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AnalyseAnalyse

Study the current performance of the process:

• Determine the kind of problem;• Identify the influence factors.

Study the current performance of the process:

• Determine the kind of problem;• Identify the influence factors.

Analyse

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20015010050

20

10

0

Index

C1

20015010050

20

10

0

Index

C3

SPC

DoE

To run experiments one needs a process which is

in statistical control.

Analyse

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FMEA,Data

Multi-vari,Trendgraph

Testing-theory

Improvements Experiment

Control chart,Cp, Cpk

IdentifyX’s

SelectX’s

IdentifyX’s

SelectX’s

Uncontrolled processes Controlled processes

Assure,Control loop

Process Capabilitystudy

Improve

Control

FMEA,Control chart

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3.2 3.7 4.2 4.7 5.2

USLUSL

Process Capability Analysis for Vocht%

USL

Target

LSL

Mean

Sample N

StDev (ST)

StDev (LT)

Cp

CPU

CPL

Cpk

Cpm

Pp

PPU

PPL

Ppk

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

4.50000

*

*

3.91502

500

0.177731

0.193639

*

1.10

*

1.10

*

*

1.01

*

1.01

*

10000.00

10000.00

*

498.51

498.51

*

1259.86

1259.86

Process Data

Potential (ST) Capability

Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance

STLT

Waste!

Analyse

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Analyse

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USLUSL

USLUSL

Analyse

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Caffeine content of Extracted coffee

Caffeine%raw coffee

Stuffed-upfilter

Time to extract

ProcessparameterProcessparameter

May be used to control.

May be used to control.

Noise variableNoise variable

Undesirable sources of variation.

Undesirable sources of variation.

DisturbanceDisturbance

Outliers, incidents

Outliers, incidents

Three types of influence factors

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ImproveImprove

Run a statistical experiment:• Determine which influence factors

are really important;• Model the relationship with the

CTQ.

Run a statistical experiment:• Determine which influence factors

are really important;• Model the relationship with the

CTQ.

Improve

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Improve

Moisture% = –16.57 + 0.023B + 0.025G – 0.0003BGMoisture% = –16.57 + 0.023B + 0.025G – 0.0003BG

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ControlControl

Implement improvements:• Use the relationship to define an

optimal process;• Design a system to assure the

improvements.

Implement improvements:• Use the relationship to define an

optimal process;• Design a system to assure the

improvements.

Control

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BeforeBefore

σ = 0.19σ = 0.19

AfterAfter

σ = 0.04σ = 0.04

USL

Control

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Y e llo w B e lts

M a ster B la ck B e lts

G re e nB e lts

G re e nB e lts

Black Belts

G re e nB e lts

G re e nB e lts

Black Belts

G re e nB e lts

G re e nB e lts

Black Belts

S ix S igm aC h am p ions

C E O

Organisation

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• Belongs to management• Selects projects • Gives priority• Solves bottlenecks• Is willing to change• Has social skills• 1 day training• Is responsible for the BB project w.r.t. the

organisation

ChampionChampion

Persons

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• Belongs to the middle management• Is well-educated• Project is related to daily activities• May prioritise his work• Enough motivation• Willing to change• Has good social skills

Black BeltBlack Belt

Persons

Improvement potential: € 50 000

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Training (1 week)Training (1 week)

Work on project(3 weeks)

Work on project(3 weeks)

ReviewReview

Define

Measure

Analyse

Improve

Control

Throughput time projectThroughput time project

4 months (full time)4 months (full time)

BB training