1 Six SigmaPage 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 VARIATIONis the enemy! " Always know t he language of the e nemy." WORLD CLASS QUALITY Providing a BETTERproduct or service, FASTER,andat aLOWER COSTthan 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 PopulationN = 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 usemeasuring 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 μUSL USL T μUSL USL T USL USL T μPrecise 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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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?
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
. 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
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)