Introduction to Six Sigma Concept

ENGI 9397, 2014

Objectives:

•  Continuous Improvements depends on process and not on checking/verifications

•  Variation affect customer. •  A methodology for improvement is important

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This is a modern approach to quality

Definition Quality is inversely proportional to variability

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The Six Sigma Evolutionary Timeline

1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.

1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.

1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems.

1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.

1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.

1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.

1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing.

1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.

1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola

1994: Larry Bossidy launches Six Sigma at Allied Signal.

1995: Jack Welch launches Six Sigma at GE.

Source : Internet

•  The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola

•  Late 1970s - Motorola started experimenting with problem solving through statistical analysis

•  1987 - Motorola officially launched it’s Six Sigma program as follows: Improve quality 10 times by 1989 Improve quality 100 times by 1991 Achieve six sigma (3.4 DPMO) performance by 1992

Motorola won the first Malcolm Balridge National Quality Award in 1988.

Origin of Six Sigma

Source : Internet

•  Jack Welch launched Six Sigma at GE in Jan,1996

•  1998/99 - Green Belt exam certification became the criteria for management promotions

•  2002/03 - Green Belt certification became the criteria for promotion to management roles

The Growth of Six Sigma

•  Scope of six sigma initiative has changed from ‘manufacturing’ to the entire business – service, product design and innovation.

Source : Internet

•  The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure.

•  For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

Two Meanings of Sigma

Source : Internet

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Time Line

2002 1995 1992 1987 1985

Dr Mikel J Harry wrote a Paper relating early failures to quality

Motorola

Allied Signal

General Electric

Johnson & Johnson, Ford, Nissan, Honeywell

Source : Internet

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Systematic Approach for improving processes and thereby Reducing Defects which Affect What is Important to the Customer & To the Business

Six Sigma Tools Qualitative, Statistical and Instructional Devices for “Observing” Process Variables & understanding their Relationships as well as “Managing” their Character. Use of DMAIC & DMADOV TOOLKIT.

Six Sigma - The Initiative

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Customer ..... Anyone Who Receives Product, Service, or Information

Opportunity ..... Every Chance to Do Something Either “Right” or “Wrong”

Successes Vs. Defects ..... Every Result of an Opportunity Either Meets the Customer Specification or it Doesn’t

What is it based on?

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•  Know What’s Important to the Customer

•  Reduce Defects

•  Reduce Variation

•  Center Around Target

Breakthrough Improvement is Not Incremental!

Strategy

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Decision Making Growth Path

Types of Problems You Will Normally Solve

1. Intuition, gut feel, I think …..

2. We have Raw Data and look at it

3. We make graphs / charts of the data

4. We use advanced statistical tools to evaluate the data

Simple

Complex

How Many Times Have You Heard This ? “I Think The Problem Is…”

Changing The Decision Making Processes

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Quiz – 1: The Goals Of Six Sigma:

Variation Reduction

Defect Reduction

Yield Improvement

Improved Customer Satisfaction

Higher Net Income A : High average but less variation B : Less average but high variation

The following data represent Turn Around Time (TAT) of two courier companies from Head Office to Branch. Analyze it and conclude whose performance is better!

The Ability to Learn Faster than our Competitors is the Only Sustainable Advantage

Business Survival & Growth

Customer Satisfaction

Quality, Price, Delivery

Process Capability/Performance

Level of Process Variation

Knowledge

CTQ’s

Knowledge is the Foundation

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Risk of Loss

Extent of Knowledge (Derived from Observation & Measurement)

Knowledge is the Foundation

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Old Philosophy of Quality

Area outside the specification limits represent quality losses.

Conformance to Specifications

“Goal Post Mentality”

LSL USL

No Losses @ the Target

Deviation from the target represents quality losses. Taguchi’s Loss Function

Average Loss = k[σ2 + (y - T)2]

“Variation is Evil” -Some Production Guy

The Changing Quality Philosophy

LSL USL

Poor Poor Good

New Philosophy of Quality

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Quality: Uniformity Around a Target Value

Specifications are met. The pilot landed on the runway each time.

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Quality: Uniformity Around a Target Value

The pilot lands closer to the center of the runway (the target value)

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•  With which Pilot would you rather fly?

•  Why? •  How your

processes look?

Producing to a target value means we need to change our habits!

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Six Sigma & bottom line results...

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Sigma rating and PPM are correlated

SIGMA RATING A PERFORMANCE MEASURE

Sigma Rating PPM 2 308,537 3 66,807 4 6,210 5 233 6 3.4

Process Defects per Capability Million Opportunities

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1. Assume the QC is normally distributed

2. Allowance of 1.5 sigma shift for process mean

3. Use Normal distribution to compute the defective rate by assuming that the specifications are at different sigma levels

Six Sigma

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IRS - Tax Advice (phone-in)

(140,000 PPM)

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1,000,000

100,000

10,000

1,000

100

10

1

PPM

•

Restaurant Bills Doctor Prescription Writing

Payroll Processing Order Write-up

Journal Vouchers Wire Transfers

Domestic Airline Flight Fatality Rate (0.43 PPM)

Best-in-Class

Average Company

3 4 5 6 2 1

Airline Baggage Handling

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Inspection exercise Count how often the sixth letter of the alphabet appears in the following text

The necessity of training farm hands for first class farms in the fatherly handling of farm live stock is foremost in the eyes of farm owners. Since the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of farm live stock, the farm owners feel they should carry on with the family tradition of training farm hands of first class farmers in the fatherly handling of farm live stock because they believe it is the basis of good fundamental farm management.

Can‘t We Just Inspect Quality In?

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Effectiveness of an Inspection System

Effective- = ness

Number of identified defects

Number of existing defects

!  The effectiveness of many inspection systems used in practice falls between approx. 70 - 90 %.

!  The effectiveness often depends on the type of defect, that is, certain defects are more difficult to locate.

Inspections

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

Focus on X rather than Y, as done historically

■  Y ■  Dependent ■  Output ■  Effect ■  Symptom ■  Monitor

■  X1 . . . XN

■  Independent ■  Input-Process ■  Cause ■  Problem ■  Control

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

The Focus of Six Sigma

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During a monthly progress review, the service department presented the fact, that number of customer complaints is reduced from 50 (Nov 2012) to 5 (Dec 2012).

Quiz -2

Based on above information do you like to conclude that customer complaint is reduced significantly and team to be congratulated ?

a)  Yes b)   No c)  May be. It depends

Even we hypothetically agree that complaints is reduced but we can’t assure sustenance of same results.

Hence the issue is how?

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Re-establishing Control!

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PROCESS

Meets customer demands

(Process Effectiveness)

and

Meets business objectives

(Process Efficiency)

How do we understand our Y of processes?

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- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Harvesting the Fruit of Six Sigma

Process Entitlement

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

We don't know what we don't know We can't act on what we don't know We won't know until we search We won't search for what we don't question We don't question what we don't measure Hence, We just don't know

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If Quality Leadership is to consist of… The Company must embrace…

Superior Quality of Conformance Six Sigma Process Improvement (DMAIC)

Superior Quality of Design Design for Six Sigma (DMADOV)

The Many Approaches of Six Sigma

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Six Sigma Breakthrough Strategy

1. Select CTQ Characteristic

2. Define Performance Standards

3. Validate Measurement System

4. Establish Product Capability

5. Define Performance Objectives

6. Identify Variation Sources

7. Screen Potential Causes

8. Discover Variable Relationships

9. Establish Operating Tolerances

10. Validate Measurement System

11. Determine Process Capability

12. Implement Process Controls

Measure

Analyze

Modify Design

?

Design

Yes

Improve

No

Control

Define

The Roadmap

Optimise

Validate

DMAIC DMADOV The approaches are interlinked.

The Six Sigma model for process improvements

The DMAIC Model of Six Sigma

Combination of change management & statistical analysis

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Process Improvements Plus Product Redesign to Match

Improved Process Capability Time

Sigma Level

6

5

4

3

Redesign Benefit

Process Improvements Only

“5σ Wall”

Break through the “5σ wall” by redesign for manufacturability

The “5 Sigma Wall”

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D. F. S. S.

DFSS Process

Optimize Quality, Reliability and Durability and improve Robustness

Verify predicted Quality and Reliability

Develop Concepts

Develop, select and synthesize concepts

for better designs

Select Projects based on Quality indicators

and gap to targets

Translate Voice of the Customer to Design Requirements

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Six Sigma Methods

Where can we use Six Sigma?

MFG.

DESIGN SERVICE

PURCH.

MAINT.

ADMIN.

QA

HR

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Who is involved with Six Sigma?

•  Company leaders •  Project champions •  Finance department representatives •  Black Belt Candidates and Black Belts •  Green Belt Candidates and Green Belts •  Yellow Belt Candidates and Yellow Belts •  Six Sigma project teams

•  Master Black Belt Candidates

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Functions

Communicate the vision

Create the mandate for improvement

Provide direction and remove barriers

Achieve financial results and communicate success

Responsibilities

Identify Black Belts and Green Belts

Identify and approve all Six Sigma projects

Monthly review of all projects

Measure Black Belt performance

Training

2 day Champion Training

Champion

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Master Black Belt

Functions

Provide technical expertise on Six Sigma and Lean methodology to Black Belts and Green Belts

Work in support of the Black Belt and Champion

Assist in education and training activities

Responsibilities (Full time)

Work daily with team members, Black Belts and Champions

Participate in the review of projects

Monitor all Six Sigma projects

Training

Qualified Black Belt having aptitude in Training and worked 2 years minimum as a Black Belt.

10 days training in MBB

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Black Belts and Green Belts

Functions Black Belts/ Green Belts dedicated for 2 years to process improvement. Work on improvement projects with other Green Belts and Team Members Achieve financial results for each project

Responsibilities Use the DMAIC/DMADV methodology to create breakthroughs in performance

Report progress to the Champion Hold team meetings and provide excellent project management

Work with the Master Black Belt

Training 15 day Black Belt Training / 5 day Green Belt Training

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Team Members

Functions

Participate in Six Sigma projects

Support team activities

Identify opportunities for improvement

Responsibilities

Participate in Six Sigma activities as requested

Complete action items as assigned by the team

Attend team meetings

Training

1/2 day Six Sigma Employee training

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•  Infrastructure

•  Methodology & Tools

• Data Driven

• Statistically Validated

• Use Of Software tools

• Linkage with Business results

•  Best People Dedicated to Defect Reduction

•  Project Focused

What Makes Six Sigma Different?

What Six Sigma is….

"  Six Sigma is THE change programme

"  Six Sigma is a customer driven process improvement system that: –  puts our Customers (BOTH INTERNAL & EXTERNAL) and their

requirements first

–  focuses on eliminating defects and reducing variation

–  combines proven statistical and analytical tools and techniques into an integrated system

–  is a fact-based, data driven, scientific approach

–  is cross-functional, process-driven

–  helps select Projects based on measurable top and bottom-line results

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Six Sigma is not all new; but is a strategic assembly of proven techniques that have

been used effectively for many years

•  Software (***) •  Roadmap •  Train - Apply -Review •  Non-manufacturing

projects •  Design Projects •  Voice of the Customer

•  Team structure •  Gage Studies •  Capability •  SPC •  DOE

What’s not What’s new

What’s Included