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1 Six Sigma Page 1 What is 6  activity? 1. What are the statistics ? 2. Solution of the Practical Problem 3. What is the concept ? 4. 6  as the Business Strategy 5. 6  Application 6. 6  Activity Process 7. Comparing other tools 8. 6 Philosophy Page 2 Low Spec High Spec VARIATION is the enemy! "  Always know t he language of the e nemy ." WORLD CLASS QUALITY Providing a BETTER product or service, FASTER, and at a LOWER COST than our competition. Originally: Metric Based on the Statistical Measure Called Standard Deviation Expanded To: What is Six Sigma? Page 3 1. What are the statistics ? Population & Sample Sample Population N  1,000 Measure 10 samples (Spec. : 100 ± 4)  You may say “ This Population is Good because all the sample’s data are located between LSL & USL. BUT, If you estimate the defect rate using statistical analysis, this population has the probability of 2.8% defects per unit. Then this is - we call - “An epidemic” quality defect level.   Measuring defect rate on process through an expanding statistical concept, we can use measuring process capability. USL (Upper Spec Limit) LSL (Lower Spec Limit) What is 6  activity? 96 97 98 99 100 104 101 102 103 Total inspection is impossible ! Statistical variables (mean, variance) estimate population Page 4 μ USL USL T μ USL USL T USL USL T μ Precise but not Accurate Accurate but not Precise Shifting to Target & Reducing Variation Shift to Target Reducing Variation 2. Solution of the Practical Problem . What is 6  activity? Object of 6  is Shift to Target Reducing variation Page 5 Center of Process: Process Variance: Process Standard Deviation: 2 Graphical Meaning of y and  n ) y y ( n 1 i 2 i 2 n y y  i n 1 i
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Six Sigma Tools Techniques

Jun 03, 2018

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Page 1: Six Sigma Tools Techniques

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1

Six Sigma 

Page 1

What is 6 activity?

1. What are the statistics ?

2. Solution of the Practical Problem

3. What is the concept ?

4. 6 as the Business Strategy

5. 6 Application

6. 6 Activity Process

7. Comparing other tools

8. 6 Philosophy

Page 2

LowSpec

HighSpec

VARIATION is the enemy!

" Always know the language of the enemy ."

WORLD CLASS QUALITY

Providing a

BETTER product or service,

FASTER, and 

at a LOWER COST 

than our competition.

Originally: Metric Based on the Statistical Measure Called

Standard Deviation

Expanded To:

What is Six Sigma?

Page 3

1. What are the statistics ?

Population & Sample

Sample

Population N= 1,000

Measure 10 samples(Spec. : 100±4)

○ You may say “ This Population is Good because all the sample’s data are locatedbetween LSL & USL. BUT, If you estimate the defect rate using statistical analysis,

this population has the probability of 2.8% defects per unit.

Then this is - we call - “An epidemic” quality defect level. 

○ Measuring defect rate on process through an expanding statistical concept,we can use  measuring process capability.

USL(UpperSpecLimit)

LSL(LowerSpecLimit)

What is 6 activity?

96 97 98 99 100 104101 102 103

Total inspection is

impossible !

Statistical variables

(mean, variance)

estimate population

Page 4

μ 

USLUSL

T

μ 

USLUSL

T

USLUSL

T

μ 

Precise but not Accurate

Accurate but not Precise

Shifting to Target &Reducing Variation

Shift toTarget

ReducingVariation

2. Solution of the Practical Problem. What is 6 activity?

Objectof 6 is

Shift toTarget

Reducingvariation

Page 5

Center of Process:

Process Variance:

Process Standard Deviation: 2

Graphical Meaning of y and  

n

)yy(n

1i

2

i2

n

yy

  i

n

1i

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Page 6

Typical Areas under the Normal Curve

68.27%

95.45%

99.73%

99.9937%

99.999943%

99.9999998%

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

Graphical View of Variation andSix Sigma Performance

Page 7

VARIATION: COMMON AND SPECIAL CAUSES

PIECES VARY FROM EACH OTHER:  

BUT THEY FORM A PATTERN THAT, IF STABLE, IS CALLED A DISTRIBUTION : 

DISTRIBUTIONS CAN DIFFER IN: 

SIZE SIZE SIZE

SIZE SIZE SIZE SIZE

SIZE SIZE SIZE

LOCATION SPREAD SHAPE

. . . OR ANY COMBINATION OF THES E  

Normal Distribution

Each unit of measure is a numerical value on a continuous scale.

Graphical View of Variationand Six Sigma Performance

Page 8

6 Quality means that area

of the estimated normaldistribution is located between

USL&LSL with 6 .

In that case area of

the outlier spec.

(In other words estimated

defects) is just 3.4 PPM.

 : Standard Deviation Statistic index measures how much is data apart from target value

3.4ppm

Target USLLSL

+ 6- 6

σ 

+ 3- 3

σ 

6.68%

3. what is the 6 concept ?. What is 6 activity?

Statistical Definition of 6 

3σ 

6σ 

Page 9

6 3.4 

5 233

4 6,210

3 66,807

2 308,537

  PPM• 1 misspelled word in all of the bookscontained in a small library

•  $340 indebtedness per $100 millions assets

• 1.8 minutes per year

• 1.5 misspelled words per page in a book

• $6.7 millions indebtedness per $100 millionsassets

• 24 days per year

. What is 6 activity?

6 as the Business Strategy

3. what is the 6 concept ?

Page 10

•  In all Design, Manufacturing, and SVC processes

• Applying for 6 statistic Tools & Processes

• To find factors causing defects

• Acting the Analysis and Improvement

• Through the Defect Reduction, Increase Yield

& Total Customer Satisfaction

• Management Innovation Tool contributes to

Management Output

Achieving3.4 PPM 

(3.4 Defects Per Million)

What is 6 activity?

PPM : Parts per Million

. What is 6 activity?

6 as the Activity

3. what is the 6 concept ?

Page 11

1. It is a statistical measurement.

2. It is a improvement tool.

• It tells us how good our products, services, and processes really are.

• 6 helps us to establish our course and gauge our pace in the race for totalcustomer satisfaction.

It‟s a full packaged tool applying to design, manufacturing, sales& SVC. 

3. It is a business strategy.• It can greatly help us gain a competitive edge• As you improve the σ rating of a process, the product quality improves and costs  go down. Naturally, the customer becomes more satisfied as a result.

4. It is a philosophy.• This is one of working smarter, not harder.• Also it makes fewer and fewer mistakes in everything we do.

. What is 6 activity? 4. 6 as the Business Strategy

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• Ground Fruit• Logic and Intuition

Wall of 3 

• Low Hanging Fruit• Seven Basic Tools

• Bulk of Fruit• Process Characterization and

Optimization

Fruit-bearing 6 

• Sweet Fruit• Design for Manufacturability

Wall of 4 

Wall of 5 

Harvesting the Fruit of 6 

. What is 6 activity? 4. 6 as the Business Strategy

Page 13

1. CTQ

2. DPU / DPMO

3. Z Value

4. Process Capability Index

5. Rolled Throughput Yield (RTY)

#. 6 Common term

Page 14

1. CTQ

Definition of CTQ

Customer states as critical to quality

of product, service or process.

Main purpose of CTQ control is selecting

the factors to the most important to customer.

It is not hard to do, but right to do!

☞ 

Ex.) • Spec. of anything part

• Accuracy and reliability of billing

statements

• Time to repair

• Courteousness

Most CTQ’s are customer -driven,

but risk, economics, and regulation

may drive others.

Typical Tools

• Customer surveys

• Focus Groups Interview

• Customer needs Mapping

• Quality function deployment(QFD)

• Quick Market Intelligence

• Logic Tree

• Pareto Diagram

● 

● 

#. 6Common term

Page 15

2. DPU / DPMO

Defects Per Unit : Number of defects per unit

→ Judging the process as “No good”, we could not know if it had a defect. 

So 6 handling it.

Ex) A Claim report has 10 blanks, 2 blanks are wrong

DPU= Defect / Unit = 2 / 1 = 2

Defects Per Opportunity  : Number of defects related opportunities per unit

→ Expanding concept of DPU by opportunities 

Ex) A Claim report has 10 blanks, 2 blanks are wrong

2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2

Defect Per Million Opportunities : Value of DPO x 1,000,000,

→ Changing DPO to million unit because 6 uses PPM(Part Per Million) usually

Ex) DPMO = 0.2 DPO x 1,000,000 = 200 ,000

DPU

DPO

DPMO

#. 6 Common term

Page 16

3. Z Value

Definition of Z Value

It is standard normalized value for various

normal distributions to make easy

statistical analysis.

* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution 

◆ 

◆ 

*

**

T=μ 

1

USLLSL

X -T

σ Z =

Concept of Z Value

☞ In a Process, if six standard d eviations are

between spec.(USL, LSL), then we call

“6 level” . 

It is good process that has 3.4pp m, that is

3 or 4 defects per million.

Z is ratio value that difference between

X(USL or LSL) and target is divided

stadard deviation ().

That is numeric part of Level.

When Z is 6, it is 6 level.

***

*** USL : Upper Spec Limit / LSL : Lower Spec Limit

◆ 

#. 6 Common term

Page 17

4. Process Capability Index

◆ What is Process Capability?

- When the process is stable, it s hould

be measured by degree of satisfying

limits.

- Computing Cp, Cpk to know

How much mean is shifted and

variation is good.

- Cpk considers shifting mean.

- K value is deference target(T) from

mean.

1σ 

process variation

design tolerance

+3σ -3σ  +6σ -6σ 

Cp =Design tolerance

Process variation

Cpk = Cp(1-K)| T-m |

(Upper limit-Lower limit)/2K =

 As Unique capability of the process, reflects uniformity degree of producing product.

Process Capability Index

m T

#. 6Common term

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Page 18

5. Rolled Throughput Yield

◆ Rolled throughput yield is probability ratio to accept for all processes.

FinalGood

ProcessDefect Ratio

Loss byun-control

Input

Process 1 :99% Accept ratio

Process2 : 92%

Process3 :93%

FinalInspection: 97%

RTYControl

Processdefectratio

Control

*

* RTY : Rolled Through put Yield

RTY = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%

Object Productivity elevation through

quality improvement

 Apply Defect of all processes, Equipment

Model Change Loss

Tool 6σ 

Method 1person 1Project, Team activity

 Added Improvement

for hidden factory

#. 6Common term

Page 19

Pareto Diagram of Effects(for the factors affecting Process) 

Size of

coefficient

(A) (B) (C)

Knowledge-gaining Tools

(D) (E)

Page 20

Process Flow Diagram

Process Step

Output

Decision?

Input

No

Yes

Knowledge-gaining Tools

Page 21

Quality Function Deployment (QFD)

DesignCorrelation

Customer Requirements

Design Requirements

Knowledge-gaining Tools

Page 22

Knowledge-gaining Tools

Probability Distributions

Exponential

Parabolic

Normal

Uniform

Page 23

Cause & Effect Diagram

Causes or

Sources of

Variation

Manpower

Methods

Effect orResponse

Machines

Measurement

Miscellaneous

Materials

Knowledge-gaining Tools

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Page 30

1. Quality & Failure Rate

* Average of the SVC Defect rate of Home Appliance products

Trend of Quality Index*

SVCDefectRate

(%)

● ●  ●  ○ 

QualityInnovation

Tool

● 

. Why should we do 6?

96 97 98 200293

Page 31

Generally controlled F-Cost has small portion considering of Hidden Loss”  

Traditional F-Cost

( Easy Definition)

Inspection

Scrap

ReworkReject

SVC

Loss Opp. Sales

Delivery Delay

Brand Image Down

Office Loss Over Storage

Over Rework

Long cycle time

Design ChangePotential(Additional)

F-Cost(Difficult to measure)

. Why should we do 6? 1. Quality & Failure Rate

Page 32

2. Paradigm Shift

Old Belief New Belief

$ $

Quality Improves

Internal&External FailureCosts

Appraisal& PreventionCosts

 

Increased Qualitymeans Higher Cost

 5  6 

$

$

Quality Improves

Internal &External FailureCosts

Appraisal& PreventionCosts

Increased Qualityreduces Total Cost

Internal Failure : Scrap / Remake / Supplier Rework

External Failure : Cost to Customer / Warranty Cost / Compliant Adjustments / Returned Material

 Appraisal : Inspection / Test / Quality Audits / Test Equipment

Prevention : Quality Planning / Process Planning / Process Control / Training

. Why should we do 6?

Paradigm Shift for Quality

The high quality producer is the low cost producer not expensive.

Page 33

Comparing 6 with 3

The 3  Company The 6 Company

• Spends 15~25%of sales dollars on costof failure

• Produces 66,807 ppm opportunities

• Relies on inspection to find defects

• Believes high quality is expensive

• Does not have a disciplined approachto gather and analyze data

• Benchmarks themselves against theircompetition

• Believes 99% is good enough

• Define CTQ’s internally 

• Spends 5%of sales dollars on cost offailure

• Produces 3.4 ppm opportunities

• Relies on capable processes that don’t produce defects

• Knows that the high quality producer isthe low cost producer

• Use Measure, Analyze, Improve, Controland Measure, Analyze, Design

• Benchmarks themselves against the bestin the world

• Believes 99% is unacceptable

• Define CTQ’s externally 

. Why should we do 6? 2. Paradigm Shift

Page 34

Practical Meaning of “99% Good” 

• 20,000 lost articles in mail per hour.

• Unsafe drinking water almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• 2 short or long landings at most major airports each day

• 200,000 wrong drug prescription each year

• No electricity for almost 7 hours each month

4 = 99.38%

. Why should we do 6? 2. Paradigm Shift

Page 35

Traditional Approach 6σ Approach 

• %(Defect Rate)

• Discrete Data

• Satisfaction for MfgProcess

• Spec Outlier

• Experience + Job

• Bottom Up

• Mfg Process

•  

• Discrete + Continuous Data

•  Customer Satisfaction

• Variation Improvement

• Experience + Job +Statistical Ability

• Top Down

• Design, Mfg, Sales, SVC

ISSUE

Index

D a t a

Target

Range

Method

Action

Application

Traditional Quality / 6 Quality Method

. Why should we do 6? 3. Character of 6 

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Page 36

• Pursue common goal

• Control main factors at upstream

• Apply Statistics on all Biz.

• Support Statistics S/W

• Data analysis by experiment

• Make decision base on Data

→ Innovation through all Biz.

→ Reduce claim and rework 

→ Easy to access difficult problem  

→ Foolpr oof for statistics 

→ Make indistinct facts clear  

→ Exclude wrong ideas & prejudice 

Good Point of 6

. Why should we do 6? 3. Character of 6 

Page 37

Benefits and superiority of 6 

Benefits  :

Superiority ■  Variety of applications  : Can apply all industry include financing Biz.

■  3P Focus & reasonable index for appraisal Not only product and service, but also process and quality of human resourcecan be clear the goal and status by measuring.

■  High Effect of Investment No invest on hardware, only on human resources.

■  Clearness of effect f or cost Output can be estimated clearly by financial part take part in which controlcost and benefit form the beginning of project.

■  Data driven mind & easy to use statistics Tool.Through experimental data analysis indistinct fact can be clear.Exclude experience and prejudice.Can handle statistics by the S/W package(Minitab).

. Why should we do 6? 3. Character of 6 

- Decrease cost of loss, Improve quality of product and service ,satisfy the customer

- It can make clear the output of Business.

* 3P : Product, Process, People

*

Page 38

5. 6 Application

• Selecting CTQ to meet customer needs

• Decision reasonable Tolerance

• Guarantee of the CTQ’s capability analysis 

• Improvement serious problem using S/W

• Real Time Monitoring system→ CTQ Control system 

• Improvement cycle time and accuracy

• Cost Improvement

Guarantee for the Design completionin developing stage

Quality assurance in manufacturingstage

Maximizing for sales & SVC

6 is a tool that applies to all business systems - Design, Manufacturing,Sales and SVC

. What is 6 activity?

R&D6 

Manufacturing6 

De-sign

Sales

&SVC

Mfg.

6  

Transaction6 

Design

Mfg.

Sales&SVC

Page 39

Cp: Process Capability Potential (assumes a centered process)

Cpk: Process Capability (takes into consideration a shift in average)

 

  

 

3

LSLyor 

3

yUSLminCpk

6

LSLUSLCp

dpm 

45,500 133,600 

16,400 6,900 

2,700 55 

< 1PPM .0018 

<< 1PPB 

.67 

.5 

.8 

1.0 

.9 

1.33 

1.67 2.0 3.0 4.5 

15.0 7.0 

Cp 

LSL LCL  UCL USL TARGET 

Specification Width

Process Width

Measures of Quality

Page 40

CP = 2.0

CPK = 1.5

dpm = 3.4

Formal Definition of a Six SigmaCapable Process

Page 41

Is It at all cost?6

2 3 4 5 6 7

Optimal Point

DFSS

Design for sixsigma

TypicalSix Sigma Barrier

Total Cost

Sigma Rating

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Page 42

There is a correlation between a company's COPQ( cost of

poor quality) and the  rating of its key processes

2 3 4 6

5

10

15

20

30

40

25

35

COPQ (% of Sales) 

Sigma Rating

5

Why Six Sigma?

Page 43

Where Does the Cost of Poor Quality

(Waste or Muda) Come From? ...

Internal Failure Costs

External Failure Costs

 Appraisal Costs

Prevention Costs

Lost Opportunity Costs 

£ 

The Cost of Poor Quality

Page 44

DEFECT REDUCTION

Note: The ± 1.5 sigma shift is included.

A 4 company will spend >10% of revenue on internal and externalrepair

A 6 company will spend <1% of revenue on internal and external repair

>> 100x

 AverageCompany

“Best in Class” 

10

100

10K

1K

100K

Defects / M 

66810

6210

233

3.4

32

1

4 5 6 7

Sigma 

Why Six Sigma?

Page 45

Identify Customer-Driven

CTQ (Critical to Quality)

Characteristics

Identify Key Processes thatcause Defects in a CTQ

Characteristics

For Each Product or

Process CTQMeasure, Analyze, Improve,

& Control

6   is a rigorous analytical

 process for solving problem!!!

6. 6 Activity Process. What is 6 activity?

1. Who are your customers?- Internal / External

2. What do you provide your customers?3. What is critical to quality for your customers?

1. What are your internal processes forproviding your product or service CTQ‟s to your customers?

2. Where do defects occur in these processes?

D

• Practical Problem• Measurement System• Yield Calculation

•Process Mapping Calculation

• Benchmarking• Pareto Chart & Stratification

• Cause & Effect Diagram

• DOE• Brainstorming

• Action Workout Techniques• Piloting

• Control Mechanism• Control Chart

• Procedures

M

A

I

C

6  Activity Process(manufacturing & Transaction)

*

**

* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical.

** D : Define

Page 46

Example of development process apply R&D 6 

R&D6 

Kick

-Off

Evaluationmeeting for

present condition

Evaluation

meeting forbasic

concept

Evaluation

meeting forplanning

confirm

E/Sdrawing

confirm

Custo-merNeedsSurvey

QFDS-1

SpareCTQSelec-tion

SimilarprocessDatagathering

Z Valueof CTQ값 Analysis

Meetingfor CTQCheck

Z Valueoptimize,Designimprove

QFDS-2

DesignFMEA

ProcessFMEA

DevelopmentProcess

E/S

making

Developmentdrawing

confirm

Income

Parts

E/SQuality

meeting

P/L

Making

P/L

QualityMeeting

Income

parts

P.P

Making

P.P

Qualitymeeting

CTQ

Datafor newpartsgather-ing

Activity

forprocessimprove-ment

CTQ

for newpartsConfirm

CTQ

deci-sion

Z Value of

CTQconfirm

6. 6 Activity Process. What is 6 activity?

Page 47

7. Comparing other tools

- Define/

Measurement

- Variance of

CTQ

- Present con-

dition Analysis

- Improved

by expert’s Idea

- Control by

control chart- Process

4M control

Measure

- Symptoms

- Frequency

- Analysis for

statistics

- Effect analysis

caused factors

- Optimizing

condition by

statistical

analysis

Others

- Discrete Data- Difficult to apply practical

problem because of

complextity

- Discrete+Continuous

data- Easy to apply becauseof supporting statisticalsoftware.

Analysis Inprovement Control

- Control by

PTS

(CTQ,

Benefits)

• Focusing

experience/technology

* PTS : Project Tracking System

*

By Improvement Process

. What is 6 activity?

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Page 48

7. Compare with other tool

•  Detecting processdefects

•  Product managingcompare with spec.

•  Judging eachperson‟s Know-How

•  Manual Datagathering & analysis

• Control processvariation

•  Judging the statisticData

•  Simple & Effectiveanalysis using theS/W

• Prevention Controlvital few factors

•  Managing Tool •  Improvement Tool

→ Selecting Line→ Do process FMEA

- Selecting Cost issueprocess view of customer

→ Conform CTQ process → Sorting the process 

- Just need control process- Important control process- Law application process- Variation improvement

→ 100ppm / 6 applicationaccording to sortingprocess

100ppm / 6 

. What is 6 activity?

100ppm 6 100ppm / 6 Application

Page 49

CTQ(Y) = F( X1, X2, X3, ... Xn )

Y X

Focusing Point

● 6 activity is selecting the cost issue

problem on some system in view of

customer.

This is we called “CTQ” and

We achieved 6  target throughthe 6 process just selecting CTQ

● Also, 6 activity is focusing

the causing factor(x1,x2...xn),

not selecting CTQ itself

Dependent

Output

Effect

Symptom

Monitor

Independent

Input-process

Cause

Problem

Control

X factor effects on CTQ(Y) hasthe vital few 20% & trivial many80%.

. What is 6 activity? 8. 6 Philosophy

Page 50

We don‟t know what we don‟t know.

If we can‟t express what we know in the f orm

of numbers, we really don‟t know much about it.  

If we don‟t know much about it,

we can‟t control it. 

If we can‟t control it,

we are at the mercy of chance.

8. 6 Philosophy. What is 6 activity?

Page 51

Our survival is dependent upon growing the business.

Our business growth is largely determined by customer satisfaction.

Customer satisfaction is governed by quality, price, and delivery.

Quality, price, and delivery are controlled by process capability.

Our Process capability is greatly limited by variation.

Process variation leads to an increase in defects, cost, and cycle time.

To eliminate variation, we must apply the right knowledge.

In order to apply the right knowledge, we must first measure it.

Measure the problem, we„ll get the right knowledge. 

. What is 6 activity? 8. 6 Philosophy

Page 52

●  At the beginning of 80’s, In the Japanese

market, Motorola’s beeper lost its name

value because of the quality difference

compared to Japan’s

● In 1981 they tried to meet a challenge to

improve quality 5 times in 5 years and they

couldn’t. 

● They developed a consistent process base

on statistical knowledge.

● In 1987, they established 6σ goal

as a key initiative.

● In 1995 GE launched 6σ process

to overcome a difficult business

environment and to challenge

World Class Quality.

● They made new processes such as

Productivity,Inventory Return and NPI,

but improvement was delayed

because of defects in processes.

● GE thinks World Class Quality is

big challenge. GE will focus on

6σ process for next generation . 

4. 6 Case Study. Why should we do 6?

Start : Motorola Prosperity :GE

Start & Prosperity

Page 53

MOTOROLA T I G E SONY

Introduce

Outcome

Character-ristics

Remarks

1987 1988 1995 1997

Q. Cost Down Q. Cost Down Q. Cost Down By 2000 years$3.2billion 1988:30% $3.8billion Train 2,000

→1993:7.4% Black Belts 

Origin of 6σ Adopt to all Biz. First in Japan(Quality levelelevated 100 timesin 4 years)

Culture harmony TOP DOWN Train and do pjt. Consult withWestern & Oriental Quality Train 6 σ Academy 

. Why should we do 6?

Cases of other companies

4. 6 Case Study

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Output of other companies

● 6 do the role of Boundaryless Behavior.

● Organization become learning & logical

● Use 6 as worldwide common language.

● GE believes that 6 would take part

central role in the future.

G E

Motorola Motorola re ached 5.5σ level in 1992. Outcome is $3.2billion from1987 to 1992.

. Why should we do 6?

2

4

6

8

1

12

96 97 98

Costs

Benefits

4. 6 Case Study

Qualitative outputBenefits

Page 55

1. Key Factor for Success of 6 

2. 6 Operating system

3. Project tracking system

4. Case study for Infra.

Ⅲ. How to Launch 6?

Page 56

1. Key Factor for Success of 6 

■ Need Top Down Drive● Need Top management’s strong will for 6σ . 

● Top management’s strong and periodical

announcement about 6σ policy. 

■ All employees must participate...

● Not only manufacturing part, but also

nonmanufacturing part should join the program

● Focus on Customer’s requirements. 

■ 6 as Pan-Company’s common s tandard. 

● Common language .(CTQ, σ, C p,Z ....) 

●  Avoid personal translation about 6σ. 

●  All of Goal and target are represented as σscale. 

● Basic process for all of projects.

Ⅲ. How to Launch 6?

■ Start at Customer’s voice. ● CTQs from Customer’s voice,

Improve the item which has big impact first!

■ Need Training Program for All employees

● Complete understanding for 6σ program. 

● Hard training for all employees.

● Need resource investment resolutely.

■ Construct Infra

● Need successful case study project.

● Resource reformation for organization and sys tem.

● Reasonable appraisal and reward sy stem.

System requirement Methodology

Page 57

* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme → Output review)  

Champion

- 6 Operating

Project Team

- Operating Project

- Achieving 6  level for CTQ

MBB(Master Black Belt)

- Supporting 6σskill 

Coaching/Supporting

Request supporting

Chief of executive division

- 6 Driving

- 6 Involvement & Commitment

Champion

Review

Ⅲ. How to Launch 6? 2. 6 Operating system

Page 58

Ⅲ. How to Launch 6? 2. 6 Operating system

Champion

Definition

• Chief of 6 operating

• Chief of business groups

(Chief of OBU, Business

Executives, Chief of

subsidiary)

Roles

• Set the 6 goal

• Assignment subject for total optimization

• Guide direction and goal of Project

It is very important that the Champion gets involved in project and take ownership for 6 

- Present the Vision

• Monitor and support through Champion Review

• Directly support to settle bottleneck for 6σactivity 

- Involvement

• Continuously lead Activity through strong commitment

• Evaluate Output and Share best practice with MBB

- Drive 6 Activity

• Lead supporting all department in improvement

and control step for 6 Project team

• Deciding Investment and allocate resources

• Generate motives

- Support Project

☞ 

Page 59

Ⅲ. How to Launch 6? 2. 6 Operating system

MBB(Master Black Belt)

• 6 Technical Leader

• Full Time Job for 6 

• Complete MBB Course or

acquire MBB Cert.

It is very important to select excellent MBB and continuous ly improving skill

Definition Role

- Support Skill

• Coach BB/GB for 6σskill and tools 

• Level Up for 6 skill & tools

• Share best practice

- Drive project results

• Check the Project by 6σ progress step

• Report champion about project status and output

• Assure benefits are real

- Support Projects

• Mentor BB / GB and Train individuals in tools

• Support settlement for 6 Activity Barrier

• continuous management and control for improved process

☞ 

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Page 60

2. 6 Operating system

Main Job Role Requirements

• Leading BB/GB

• Project Drive

• Verity Output

• Training

• 6σ Technical Leader  

• Needs Stat. Skill

Propagate

• More than 4 Projects

&

• Consulting More than

5 Projects a year

• Full Time Project

On TDR Theme

• Execute Project

• Leader of Pjt. team

• Team membertraining

• 2 Projects

&

• 1 Project a year

• Join Project by

Part time

• Execute Project

• Team Leader or

Member

• 2 Projects

Master

BlackBelt

BlackBelt

GreenBelt

Belt

Ⅲ. How to Launch 6?

Belt Certification

Page 61

3. Project Tracking System

PTS Flow Benefit

- Update and control CTQ of Closed Project

- Easily manage and report for Project status

- Evaluate reduction cost of 6Project

- Share Project information

- Monitor 6 Project status

• Project Theme/Z value/Reduction cost

 Amount

• By Division/OBU/Product/Model

AllProjects

Belt

PTSChampion,

Owners

ProjectReviews

- Defect Data,Goal

- Project status

- Results

- Weekly update

• Weekly Review

• Confirm cost benefits

Benefits

• Check & monitor

*

* PTS : Project Tracking System

Ⅲ. How to Launch 6?

Page 62

4. Case Study For Infra.

6TrainingMaterial

Training For All Employees

Planning

6Strategy

- Briefing 6 

Process

- Planning 6 

Strategy/Goal

ConstructIT System

- Impove Chronic

Defects

: Minitab S/W

- Optimize

Process IT

: Real Time

Monitoring

: Data Base

For CTQs

- PTS

: Project Tracking

System

- Intoduce 6 

: All Employee

- 6 GB

Training Prg.

: Engineer,

Staff

- 6 WB

Training Prg.: Supervisor

Organizing

6Team

- Due part

MFG : QA Team

Leader

R&D : Chief of

Lab.

- Organize 6 

Surport Part

:2~3 person/OBU

→ Organize

6 Team

- Training for Employees

- Training for Boards

→ Project Review 

- MBB & BB : 80/Year

- Training

: 2,400 person

Case Study

- 6 Team

- Case Study

: 1 / OBU

* Case :LGE Home Appliance Division.

Ⅲ. How to Launch 6?

Page 63

StartDate

BusinessAreas of

Emphasis

Metrics SupplierInvolvement

TrainingEmphasis

RewardSystem

Amount ofCulturalChange

Return onInvestment

Motorola 1987 Production Defects Intimidation Six Sigma

Basics andStatistics

Black Belt

Recognition

Low £1.4 Billion

in 7 Years

DSEG(Raytheon/TI)

1990 Production Defects and

Cycle Time

TrainingSuppliers

in the Tools

Low Not

Published

AlliedSignal 1992 Production

and Design

Training

SuppliersBlack

Belts

Six Sigma

Basics,Statistics,

KISS for

Suppliers

GeneralElectric

1995 Production,

Design,

R&D, andTransactional,

i.e., the whole

organisation

Training

Suppliers

Black Belts

Black Belt,

Green Belt,

andManagement

Promotions,

Bonuses,

andStock

Options

High

Black Belt

Recognition

Black Belt

Recognition

MonetaryRewards

Six Sigma

Basics,Statistics,

and Soft

Skills

Defects,

Cycle Time,COPQ,

Cost

Reduction

Six Sigma

Basics,

Statistics,Soft Skills,

Finance

Skills, (KISS

and KBM)

Defects,

Cycle Time,

COPQ,Cost Reduction,

Stable

Operations,

 AnnualOperating ROI

(Intellectual

Capital)

Medium £1.4

Billion in

4 Years

Evolution of Six Sigma

£3 +Billion in

4 Years

(Taken

from

1999 Annual

Report)

Page 64

Design For Six Sigma

LSL USL

Manufacturing Goal:Reduce SigmaDesign Goal:

Relax Specs