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Lean Six SigmaA journey to excellence
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Six Sigma IntroLets get started!
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What is Six Sigma ( ) ?
JR Consulting - 1 (787) 367 1862
Six Sigma is a total management commitment and
philosophy of excellence.
The central idea behind Six Sigma is that if you can
measure how many defects you have in a process,
you can systematically figure out how to eliminate
them and get as close to zero defects as possible.
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Is Six Sigma another fad ?
JR Consulting - 1 (787) 367 1862
No, the record shows that its been a hugesuccess in many organizations.
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Motorolasaves $16billion in 15
years*
JR Consulting - 1 (787) 367 1862
we will share Six Sigma with the world, and itwill come back to us with new ideas and new
perspectives.Bob Galvin, Board Member, Motorola
For Which We Stand. A Statement of Purpose; Objectives and Ethics.May, 1986
* As of 2001 5
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GE saves$4.4 billion
in 4 years*
JR Consulting - 1 (787) 367 1862
Six Sigma has spread like wildfire across thecompany and its transforming everything we do.
Jack Welch, CEO, GEBusiness Week special report
June 8, 1998* As of 1999
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Why use Six Sigma ?
JR Consulting - 1 (787) 367 1862
Decisions based on facts and data rather than opinion.
Reduces the dependency on Tribal Knowledge.
Attacks the high-hanging fruitthe hard stuff.
Eliminates chronic problemsa common cause of variation. Improves customer satisfaction.
Changes the company culture.
Provides a disciplined approach to problem solving.
Creates a competitive advantage.
Improves profits!
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Process Variation
JR Consulting - 1 (787) 367 1862
8
Sigma
Level (Z)
Defects perMillion
Opportunities (DPMO)
Percent
Defects (%)
PercentSuccess
(Yield %)
Capability
(CP)
1 691,462 69 31 0.33
2 308,538 31 69 0.67
3 66,807 6.7 93.3 1.00
4 6,210 0.62 99.38 1.33
5 233 0.023 99.977 1.67
6 3.4 0.00034 99.99966 2.00
The higher the sigma score, the better the process.
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Six Sigma Targets Variation JR Consulting - 1 (787) 367 1862
Poor process:
66,807 defectsper millionopportunities.
9
3s
LCL UCLTolerance
Target =
66,807ppm
66,807
ppm
3s
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Less Variation, Less Defects JR Consulting - 1 (787) 367 1862
Process withalmost no defects:3.4 defects per
million opportunities.
10
6s
LSL USL
Tolerance
Target =
3.4ppm
3.4ppm
6s
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LessVariation,
BetterYield
JR Consulting - 1 (787) 367 1862
11Z = 2
Z = 3
Z = 4
Z = 5
Z = 6
USLLSL Mean
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Inspection vs. a Capable Process
JR Consulting - 1 (787) 367 1862
12
125.08125.06125.04125.02125.00124.98124.96124.94124.92
Upper SpecLower Spec
s
Mean-3s
Mean+3s
Mean
n
k
LSL
USL
Targ
Cpm
Ppk
PPL
PPU
Pp
Long-Term Capability
0
24969
0
32255
0.00
2.50
0.00
3.23
Obs
PPMUSL Exp
Obs
%USL Exp
0.026
124.923
125.080
125.001
782.000
0.029
124.950
125.050
*
*
0.62
0.65
0.62
0.63
Process Capability Analysis for Supplier 1
125.04125.02125.00124.98124.96
Upper SpecLower Spec
s
Mean-3s
Mean+3s
Mean
n
k
LSL
USL
Targ
Cpm
Ppk
PPL
PPU
Pp
Long-Term Capability
0
1
0
1
0.00
0.00
0.00
0.00
Obs
PPMUSL Exp
Obs
%USL Exp
0.010
124.969
125.031
125.000
1000.00
0.00
124.95
125.05
*
*
1.62
1.63
1.62
1.62
Process Capability Analysis for Supplier 2
100 % Yield due to 100 % Inspection 100 % Yield due to a capable Process
Which Supplier would you select ?
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What causes variation inyour trip home ?
JR Consulting - 1 (787) 367 1862
Stop Signs. School bus.
Red lights.
People in crosswalks.
The gas tanker truck that crashed into the bridge.
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Six Sigmas main elements
JR Consulting - 1 (787) 367 1862
Customer focus is a top priority.
SS is always data driven.
Understanding processes is the key to success.
Management is proactivelooking for new ways.
Collaboration has no boundaries.
Overachievement demands failure tolerance.
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Process Capability
JR Consulting - 1 (787) 367 1862
It depends on the process
We must be able to measure its key input and output variables.
But also on the customer We must also know the customers requirements, or tolerances.
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Tolerance
JR Consulting - 1 (787) 367 1862
The capability of a processor how good it is
depends on how well it meets the customers specific
requirements (CTQs), and their Tolerance limits. E.g.
Customer service wait time: less than 5 minutes.
Pizza delivery time: within 30 minutes.
Diameter of a shaft: 2.5 0.0001 inches.
A greater tolerance is less costly.
Does the customer really need the specified level oftolerance? Why does he require this tolerance? Could hiscustomers live with a lesser tolerance?
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Measurement challenges
JR Consulting - 1 (787) 367 1862
What should be measured? KPIV and KPOV ?
Who will measure?
How often?
With what precision? Min 10 readings withintolerance.
Whats the Gage error? Max 30% of tolerance.
How big a sample of data? Min 30 for var. data.
Hawthorne effect?
Cheating the system?
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JR Consulting - 1 (787) 367 1862
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CpkProcess Capability
UCL = Upper Control Limit of Tolerance.
LCL = Lower Control Limit of Tolerance.
s = {s sample sigma (for n > 25 sample).
s / c4 (for n
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JR Consulting - 1 (787) 367 1862
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Define Find a meaningful problem.
Measure Specify baseline Y performance.
Analyze Find root causes Xs of the problem.
Improve Implement new improved solution.
Control Assure new Y performance.
The DMAIC Roadmap
Redesign?
Improve
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Define Measure Analyze Improve Control
JR Consulting - 1 (787) 367 1862
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Review project
Charter.
Validate problemstatement and goals.
Validate Voice
of the Customer.
Validate financial
Benefits.
Validate high-level
Value Stream Map
and scope.
Createcommunication plan.
Select team roster.
Develop project
Schedule.
Draw Value Stream
Map for deeper
understanding & focus. Identify key input,
process, & output
metrics.
Develop Field Guide
for measurement taking
procedures.
Develop data
collection plan.
ValidateMeasurement System.
Collectbaseline Data.
Determine baseline
process capability.
The To Do List
Determine critical
Inputs.
Identify potentialroot causes.
Reduce list of
potential root causes.
Confirm root cause
Effect on output.
Estimate impact
of root causes on key
outputs.
Prioritize rootcauses.
Develop potential
Solutions.
Evaluate, select, andoptimize Best
solutions.
Develop Future
Value Stream Map.
Develop and
implement pilot
Solution.
Confirm attainment
of project goals. Develop full-scale
Implementation Plan.
Implement mistake
Proofing.
Develop SOPs,
training plan, and
process controls. Implement solution
and ongoing Process
measurements.
Identify opportunities
to apply project Lessons.
TransferMonitoring -
control to process Owner.
Close Project.
Source:TheSixSigmaPocketToolbox
Find a
meaningfulproblem.
Specify
baseline Yperformance.
Find root
causes Xs ofthe problem.
Implement
new improvedsolution.
Assure new Yperformance.