12Scope of ModuleScope of Modulez A Brief of Historyz 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 Sigmaz The Road Map of Six Sigmaz 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 Curve5Normal Curve (Historical)Normal Curve (Historical)61.5 Sigma Shift at 31.5 Sigma Shift at 37Normal Curve (Historical)Normal Curve (Historical)8Normal Curve 6Normal Curve 691.5 Sigma Shift at 61.5 Sigma Shift at 610Process 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 ina) percentage (%)b) parts per million (ppm)c) parts per billion (ppb)Process CapabilityProcess Capability11Historically, a Cpof 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.CpReject Rate1.00 0.270 % (2,700 DPPM)1.33 0.007 % (70 DPPM)1.50 6.8 ppm2.00 2.0 ppbProcess PotentialProcess Potential12Short-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 instrumentLong-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 instruments Multiple lines Multiple lots from different suppliersST vs. LT CapabilityST vs. LT Capability13Short-Term Long-TermSample 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 CpPpProcess PerformanceCpkPpkST vs. LT CapabilityST vs. LT CapabilityCp- Measure of precision using short-term SDCpk - Measure of accuracy and precision using short-term SDPp- Measure of precision using long-term SDPpk - Measure of accuracy and precision using long-term SDCommon Capability MeasuresCommon Capability MeasuresLSLProcess WidthDesign ToleranceUSLT+ 3 - 3Short - Term Capability Indices Long - Term Capability Indicesterm shortpsLSL USLC=* 6term shortUSL pksX USLC=* 3) () (term longUSL pksX USLP=* 3) () (term longpsLSL USLP=* 6term shortLSL pksLSL XC=* 3) () (term longLSL pksLSL XP=* 3) () () , ( min) ( ) ( LSL pk USL pk pkC C C =) , ( min) ( ) ( LSL pk USL pk pkP P P =Cp/Cp/CpkCpkvs. Pp/vs. Pp/PpkPpkFormulaFormula16What 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 Methodology Methodology aimed at breakthrough breakthrough improvement to . . . ACHIEVE ACHIEVEMAXIMIZE MAXIMIZESUSTAIN SUSTAIN. . . business success business success171.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 z zany where there is a processany where there is a process.Defect Reduction Defect ReductionPerformancePerformance Improvement ImprovementImproved CustomerImproved Customer Satisfaction SatisfactionHigher Net Income Higher Net Income182.Six Sigma as a Problem Solving System2.Six Sigma as a Problem Solving SystemWhat If you could. . .? What If you could. . .?What If you could. . .?z Select One of Your Most Highly Leveraged Problemsz Identify and deploy dedicated resources.z Provide That Person With All of the Training, Tools, and Resources They Need to Fix Itz Guarantee Them Uninterrupted Time and Focus to Work on Itz Get a Well Thought Out, Data Driven Solution?19z Use Customer Requirements Throughout the Design and Development Process...z Proactively Solve Business Problems for Customersz 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. . .?2.Six Sigma as a Problem Solving System2.Six Sigma as a Problem Solving System20z 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 Problemsz Have Everyone Pulling in the Same Direction?What If you could. . .? What If you could. . .?What If you could. . .?2.Six Sigma as a Problem Solving System2.Six Sigma as a Problem Solving System213.Six Sigma as a Statistical Term3.Six Sigma as a Statistical Term2 308,5373 66,8074 6,2105 2336 3.4PPMPPMZscoreZscoreProcessCapabilityz 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 rangez Six Sigma represents a break-through goal for most organizations.22What 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)23What 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 InformationOpportunity .....Every Chance to Do SomethingEither Right or WrongSuccesses Vs. Defects .....Every Result of an Opportunity Either Meetsthe Customer Specification or it Doesnt25Six SigmaSix SigmaA Business StrategyA Business StrategyImproved Sigma-Rating of ProcessImproved Product or Process QualityReduced Cost of OperationsGreater Customer Satisfaction26Six SigmaSix SigmaA PhilosophyA Philosophyz Six Sigma is about working smarter, not harder.z Discover and neutralize harmful sources ofvariation Mistakes are reduced (or eliminated) Improved process capabilitySigma rating goes up27zTo 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 leadersTo increase our rate of quality and productivity improvement faster than our competitorsWhy Implement Six Sigma Now?Why Implement Six Sigma Now?28Why 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 disciplineBUTz Worldwide competition Makes neglect dangerousz Computing resources Makes application possible2999% Good is Not Good Enough99% Good is Not Good Enoughz 5,000 incorrect surgical procedures each weekz 20,000 lost articles of mail each hourz No electricity for almost 7 hours each monthz Unsafe drinking water for almost 15 minutes each day30Where Does Industry Stand?Where Does Industry Stand?7Sigma Scale of Measure1,000,000100,00010,0001,000100101PPMRestaurant BillsDoctor Prescription WritingPayroll ProcessingOrderWrite-upJournal VouchersWire TransfersAirline Baggage HandlingPurchased Material Lot Reject RateDomestic Airline Flight Fatality Rate (0.43 PPM)Best-in-ClassAverageCompany3 4 5 6 2 1IRS - Tax Advice(phone-in)(140,000 PPM)With the 1.5 shift31Why 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).SixSigma isaboutimprovingprofitability; improvedqualityandefficiencyareimmediateby-products.32z Lower Defects.....Scrap, Inventory, Warrantyz Lower Cycle Time....Time to Market, Higher Gross Margin, Reduced Inventoriesz Higher Productivity..Less Capital & Laborz Customer Satisfaction.Higher Revenue & Market Sharez Efficient Business PracticesGrowth through Higher Productivity, Lower Cost, Better ResponsivenessWhat are the Benefits?What are the Benefits? Supplier participation A common language and metrics for quality33Benefits of Six SigmaBenefits of Six SigmazCost reductionzProductivity improvementzMarket-share growthzCustomer retentionzCycle-time reductionzDefect reductionzCulture changezProduct/service development34How 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. Method351. Six Sigma Vision1. Six Sigma VisionThe 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.362. Six Sigma Philosophy2. Six Sigma PhilosophyThe 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.37Sigma 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 3.4PPMPPMProcessCapabilityProcessCapabilityDefects perMillion Opp.3. Six Sigma 3. Six Sigma --Aggressive GoalAggressive Goal38Breakthrough StrategyBreakthrough StrategySix Sigma - Six Sigma Enables Breakthrough LevelImprovement!1 2 3 4 5The problem with continuous improvements as the only goal,Organization sees improvement BUT loses the game.Time in YearsStandard Approaches Current Tools Kaizen Lean Manufacturing Re-engineering Typical TQMImprovementBreakthrough Strategy- Trained & DedicatedIndividuals- Analytical Expertise- >70% Improvement perProjectSix Sigma39Quality BreakthroughQuality BreakthroughTimeReject RateHistorical Level (0)Natural Variation under 0(30)Special VariationOptimum Level (1)Natural Variation under 1(31)40How 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. MethodMeasure of variationIndicator of the capability of our processes and quality of our products4. Metric Driven 4. Metric Driven --The SigmaThe Sigma1_01_01_016SigmaA 3A 3ProcessProcess = Target = TargetAverage Deviation from the Mean11USLUSL0.14% defUpper 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 ()3The 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 Mean11USL1 in a billion1 2 3 4 5 6A 6A 6ProcessProcessWhy do we need 6?Z score = 6In reality a 6 Sigma process is something like 1/billion defectivesThe z-score or - Level of the process is based on Short Term data but our process exhibits long term variability due to shifts and driftsLong TermShort TermSmall Standard Deviation Small Standard DeviationLarge Standard DeviationLarge Standard DeviationHow 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 TermDetermining the DifferenceDetermining the DifferenceWithout 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 1.5STLong TermShort TermSmall Standard Deviation Small Standard DeviationLarge Standard DeviationLarge Standard Deviation ST ST LT LTA Six Sigma ProcessA Six Sigma ProcessThe 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 LevelShort-Term DPPMLong-Term DPPM1 158655.3 691462.52 22750.1 308537.53 1350.0 66807.24 31.7 6209.75 0.3 232.76 0.0 3.43.4ppmLSL USL 4.5TA Six Sigma Process Shiftedby 1.5 LSL 60.001ppmUSLProcessCapabilityA Six Sigma Process CenteredT0.001ppmA Six Sigma Process With SD Inflated by 1.5 DPPM = Defective Product Per Million47Six Sigma Six Sigma ----Practical MeaningPractical Meaning99.99966% Good (6 Sigma)20,000 lost articles of mail per hourUnsafe drinking water for almost 15 minutes each day5,000 incorrect surgical operations per weekTwo short or long landings at most major airports each day200,000 wrong drug prescriptions each yearNo electricity for almost seven hours each monthSeven articles lost per hourOne unsafe minute every seven months1.7 incorrect operations per weekOne short or long landing every five years68 wrong prescriptions per yearOne hour without electricity every 34 years99% Good (3.8 Sigma)48How 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. Method49Customer Focus:A Model For SuccessCustomer Focus:A Model For SuccessTechnologyTechnologyCapabilityCapabilityOrganizationOrganizationPeoplePeopleProcessesProcesses 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.50Customer Focus Customer Focus Critical To ConceptCritical To ConceptPROCESSKPOV KPOVKPIV KPIV KPIVCTx(CTQ)KPOVProcess Output(Measurable)Process Inputswhich affectOutputsKPIVWhat 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: Quality Quality Cost Cost Delivery Delivery51 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 assessmentFocus on the Problem:Unique ApproachFocus on the Problem:Unique Approach52What Types of Problems Should We Target?What Types of Problems Should We Target?z High Defect Ratesz Low Yieldsz Excessive Cycle Timez Excessive Machine Down Timez High Maintenance Costsz Bottlenecksz Poor Process CapabilityNon-Conformance53The Cost of Poor Quality (COPQ) IcebergThe Cost of Poor Quality (COPQ) IcebergTraditional Quality CostsLost OpportunityHidden FactoryLost salesLate deliveryMore SetupsExpediting costsExcess inventoryLong cycle timesLost Customer LoyaltyEngineering change ordersAdditional Costs of Poor Quality(intangible)(tangible)(Difficult or impossible to measure)ScrapReworkInspectionWarrantyRejectsAdministration /DispositionConcessions54What 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 reworkz For most companies today, the cost of poor quality is likely to be 25 % of sales. 55Why Focus on Cost of Poor Quality?Why Focus on Cost of Poor Quality?ProfitTotal Cost tomanufactureand deliverproductsProfitCost ofPoor QualityCOPQTheoreticalCostsProfitCOPQTheoreticalCostsWhich Feels Better??Cost ofPoor QualityCOPQTheoreticalCostsPrice Erosion56Classical YieldClassical YieldFactory A100 85Factory B100 85Not all Yields are alike!Not all Yields are alike!15Scrap15 ScrapReworkFactory C: The Hidden Factory50 3557Classical YieldClassical YieldFactory A100 8515ScrapFactory B100 8515 ScrapNot all Yields are alike!Not all Yields are alike!50 35Equal Yields Unequal CostsClassical Yield does not correlate to cost, cycle time or inventory levelsEqual Yields Unequal CostsClassical Yield does not correlate to cost, cycle time or inventory levels58The Focus of Six Sigma The Focus of Six Sigma KPIVsKPIVs& & KPOVsKPOVsIf we canIf we can1.1.Establish a Establish a relationshiprelationshipbetween inputs and between inputs and outputs, andoutputs, and2.2.We can We can controlcontrolthe inputs, thenthe inputs, then3.3.We can We can predictpredictthe outputs!the outputs!59The Focus on the ProcessThe Focus on the ProcessIf 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 ControlTo 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 historicallyKPIVKPOV*60What To Do With the Vital Few. . . . .What To Do With the Vital Few. . . . .ProcessKPIVKPIVKPIVKPOVCTQVital FewCorrect(In-Spec)Defect-Free!KPIVControl Control Control Control Control Control --InputsInputsNote:Statistically proven relationships between Inputs and OutputsManage the INPUTS and good OUTPUTS will follow Manage the INPUTS and good OUTPUTS will follow61How 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. Method62The Foundation of the Six Sigma ToolsThe Foundation of the Six Sigma ToolsDataDataDriven AnalysisDriven Analysis1. 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 statisticsLevels of Analysis: What level are you at?What level are you at?GoalData is used to classify, describe, improve, controlData is used to classify, describe, improve, control63The Improvement Strategy (MAIC)The Improvement Strategy (MAIC)Focus__Vital FewxiYYYYYVital FewxiVital FewxiVital FewxiVital FewxiSIX SIGMA METHODS GENERATE DATA-BASED DECISIONS*Select product or process key characteristic(s); e.g. Customer YDefine performance standards for YValidate measurement system for YEstablish process capability of creating YDefine improvement objectives for YIdentify variation sources in YScreen potential causes for change in Y & identify vital few XiDiscover variable relationships between vital few XiEstablish operating tolerances on vital few XiValidate measurement system for vital few XiDetermine ability to control vital few XiImplement process control system on vital few XiX1, X2, XnX1, X2, XnPhaseMeasureAnalyseImproveControl64Narrow the Scope Narrow the Scope ----> ID Leveraged KPIVs> ID Leveraged KPIVsOptimized Process30 - 5010 - 154-8Key Process InputVariables (KPIVs)8 - 10KPIVsCritical KPIVs3-6Key LeverageKPIVsInput VariablesProcess MapMulti-Vari Studies,CorrelationsScreening DOEsDOEs, RSMC&E Matrix and FMEAGage R&R, CapabilityHypoth. Tests, ANOVAQuality SystemsSPC, Control PlansMeasureAnalyzeImproveControl65The Six Sigma Approach The Six Sigma Approach --DMAIC Strategy?DMAIC Strategy?z Know whats important to the Customer (CTQs)z Reduce defectsz Center around targetz Reduce Variation66Six 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 BBsBlackbeltsStrongAnalytical SkillsStrong ProblemSolving SkillsPeople & Leadership SkillsCritical toSuccessFastest or Largest ReturnLead FocusedEffortApply Skills andTools DetermineCauses andSolutionsImprove DriversSelect CapablePeopleSpecific Skill SetTrainingSelect KeyProblematic AreasAssign Project toBlackbeltsObtainResultsPreventative &Proactive Vs Appraisal &ReactionFewer TrialsFasterAccurate Solutions67How to Apply Six Sigma?How to Apply Six Sigma?ProcessProcessInput InputOutput OutputUnlikeconventionalimprovementprogramswhichfocuses onimprovingthedefectsontheoutput,SixSigma 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.68The 5 Phases of Six SigmaThe 5 Phases of Six Sigma69DefineDefineThe 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 71Baseline Metric DataBaseline Metric Dataz Baseline The average long-term defect level of a process when all input variables in the process are running in an unconstrained fashion.z EntitlementThe 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.72Breakthrough ImprovementBreakthrough ImprovementTimeReject RateBaseline ~ NID(0, 0) Natural Variation (30)Special VariationGoal ~ NID(1, 1)Natural Variation (31)EntitlementOpportunity 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 everythingis running smoothly? Whats the best that my process was Designed to do ?MMeasureeasure74MeasureMeasure75Capability AnalysisCapability Analysis--Six Sigma MetricsSix Sigma MetricszDefect Ratein defects per unit (DPU)in defects per million opportunities (DPMO)zYieldin throughput yieldin rolled throughput yieldin normalized yield76FirstFirst--Time Yield (Time Yield (YYft ft))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 968Accept32RejectFirst-Time Yield, Yft=968 / 1000=0.9681,000Input77Throughput Yield (Throughput Yield (YYtp tp))Throughput Yield is the probability that a unit of product or service will pass through a given process step error-free.Throughput Yield, Ytp=eDPUProcess 968Accept32Reject1,000Input(40 Defects)Throughput Yield, Ytp=e-(40/1000)=0.96178The Role of MeasurementThe Role of MeasurementIf we cannot express what we know in the form of numbers, we really dont know much about itIf we dont know much about it, we cannot control itIf we cannot control it, we are at the mercy of chanceConclusion:When measurement systems are inadequate, so are the decisions we make using them.79 (KPIV) Summary : Summary : Measure PhaseMeasure Phase801. (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 ?AAnalyzenalyzeAnalyzeAnalyzeProcessKPIVKPIVKPIVKPOVCTQManageCorrect(In-Spec.)Defect-Free!KPIVStatisticallyDescribe the Relationship BetweenInputs and the Output . . . toFind the Inputs with the Biggest Impact on the OutputY = f (X)83AnalyzeAnalyze84 KPIV's (KPIV's) 1. 2. KPOV (Key process output variables) 3. 4. "" Summary : Summary : Analyze PhaseAnalyze Phase85 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 ?IImprovemproveImproveImproveProcessKPIVKPIVKPIVKPOVCTQManageCorrect(In-Spec.)Defect-Free!KPIVHighLowMediumHigh????????Systematically Experimentwith the Inputs to Find the CombinationWhich Delivers the Optimal OutputY = f (X)88ImproveImprove89 6 (Variability) (Process) (Target) KPIV's KPOV (Optimizes) KPIV's KPIV's KPIV's Summary : Summary : Improve PhaseImprove Phase901. KPIV's DOE KPIV KPIV 2. y = f (x1 , x2 , ) Regression ANOVA (analysis of Variance) 3. (Optimize) Advanced DOE Methods, EVOPSummary : 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 CustomersCControlontrolControlControlControlControlControl Control ProcessKPIVKPIVKPIVKPOV CTQManageCorrect(In-Spec.)Defect-Free!KPIVHighLowMediumHighLock In the Inputs to RoutinelyGeneratethe Optimal Output!ControlControlY = f (X)93ControlControl94 KPIV's (Maintain The Gains) (Error Proof) Summary : Summary : Control PhaseControl Phase951. Documented Control Plans (SOP's) , , 2. (CriticaltoQuality factors : CTQ's) SPC KPOV KPIV's 3. (Simplify) (Error Proof) (5 ) Summary : Summary : Control PhaseControl Phase96In the Realize phase, ownership of the project is transferred to the finance representative, for tracking of financial benefits over the next 12 months.RealizeRealize97Six Sigma ProjectRoadMap98 FMEA , , CTQs COPQ est. : (Input) (Output) KPIV KPOV ? ( - Improvement)/ (Rolled Throughput Yield) :Six Sigma Six Sigma

11-- (Measure) (Measure) & 99 :() ( )DPMO; Sigma ScoreCp Pp CpkPpk / ( ) (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 ,,) - (Chi Sq., F-Test, Homogeneity of Variance) Multi-Vari RoadMapRoadMap Six Sigma(3)Six Sigma(3)--

(A)101(ANOVA)/ : ?( 1 factor levels)Correlation & Regression (Characterize Phase) KPIV KPOV : X YRoadMapRoadMap Six Sigma(4)Six Sigma(4)--

(A)102(Design of Experiment)Fractional Factorial :Set X Y / KPIV KPOVFull FactorialSimple 2K 2 ( / ): setX Full FactorialMultiple Variables : (I)RoadMapRoadMap Six Sigma(5)Six Sigma(5)-- : X Y 103DOE- (Blocking) Confound / ... ... ! EHS (Environment) (Health) (Safety) EHS / RoadMapRoadMap Six Sigma(6)Six Sigma(6)-- (I)104 / /CTQ SPC : Parameter , -, , :, : , , , , (C) : RoadMapRoadMap Six Sigma(7)Six Sigma(7)-- 105 / : CTQ : CTQ / (C) Functional Team Sign-Off&Celebrate!YesNoDFSSRoadMapRoadMap Six Sigma(8)Six Sigma(8)-- DFSSDFSS106Whos Who in Six Sigma to Make it HappenWhos Who in Six Sigma to Make it HappenBusinessBusinessChampionsChampionsHands onHands onChampionsChampionsMasterMasterBlack BeltsBlack BeltsBlack BeltsBlack BeltsManagementManagementGreen BeltsGreen BeltsExecutives &Executives &All EmployeesAll EmployeesProcess Leaders &Process Leaders &Six Sigma ExecutiveSix Sigma Executive107PlayersPlayersz Black Belt Chosen by management from the top people in the organization to work on improvement projects full time for 2 3 yearsz Brown Belt Same training as the Black Belt but without the full-time commitmentz 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 Belt2 (Management)(Management)109 Black Belts Project Champions ... Black Belt1 Project 4-6 2 ( ) 1 US$ / /Black BeltBB 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))112What 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, 2000113Six Sigma StrategiesSix Sigma StrategiesProcessImprovementProcessManagementProcess Design,RedesignFind focused solutions to eliminate root causes of business performance problemsReplace a process or part of a process with a new oneUnderstanding the facilitation and flow of work that provides value to a customer* The Six Sigma Way, Pande, Neuman, Cavanagh, McGraw Hill, 2000114Process &ProductImprovementDMAICProcess &ProductManagementBPMSProcess &Product Design,RedesignDFSSFocus:DEFECT REDUCTIONFocus:BUILD QUALITY INFocus: INFRASTURCTUREBPMS place into Six Sigma ApproachBPMS place into Six Sigma Approach115 116 3 2 1. 2. 3 117Thank You Thank You forforAttending the ClassAttending the Class