7

Six Sigma
The ability to simplify means to eliminate the unnecessary so that the necessary may speak

Hans Hofmann

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Total Quality Management

Learning Objectives
After studying this chapter, you should be able to:

Explain Six-sigma
Describe Six-sigma quality level Understand fundamentals of Six-sigma strategy Explain steps in implementing Six-sigma (DMAIC, DMADV, DFSS) Discuss Six-sigma training programme

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Six Sigma

A Six-sigma quality level is said to equate to 3.4 defects per million opportunities (Cp=2.0, Cpk=1.5). Six-sigma stands for Six Standard Deviations from mean. Six-sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process.

Six-sigma pioneer Motorola started the quality program in 1987 t. It took five full years to see significant results of six- sigma. Six- sigma has been adopted as a quality philosophy by companies such as Texas Instruments, Allied signal, Eastman Kodak and in India by ICICI

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Six-Sigma Quality
Six-sigma quality fundamentally means a breakthrough strategy that can be interpreted as a disciplined method of using extremely rigorous data gathering and statistical analysis to identify the sources of errors and ways of eliminating them.

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Six-Sigma Metrics

Defect any mistake or error that is passed on to a customer Defects per unit (DPU) = number of defects discovered number of units produced

Defects per million opportunities (dpmo) = DPU 1,000,000 opportunities for error

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Key Sigma Metrics in Services

Accuracy Cycle time Cost

Customer satisfaction

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Key Concepts of Six-Sigma

Critical to Quality (CTQ) : Attributes most important to the customer Defect: Failing to deliver what the customer wants Process Capability: What your process can deliver Variation: What the customer sees and feels

Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels
Design for Six-sigma: Designing to meet customer needs and process capability

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Comparison of Sigma Level Errors

Sigma Level of Error 3 4 5 6 Spelling Mistakes in a book 1.5 miss pelt words per page per book 1 misspelt word/30 pages/book 1 misspelt word/set of encyclopedias 1 misspelt word/per small library Time Error in a Century 3.5 months/century

2.5 days/century 30 minutes/century

6 seconds/century

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Shift and Its Role

Offcentring 0 0.25 sigma 0.5 sigma 0.75 sigma 1.0 sigma 1.25 sigma 1.5 sigma 1.75 sigma 3 sigma 3.5 sigma 4 sigma 4.5 sigma 5 sigma 5.5 sigma 6 sigma

2,700 3,577 6,440 12,288 22,832 40,111 66,803 105,601

465 666 1,382 3,011 6,433 12,201 22,800 40,100

63 99 236 665 1,350 3,000 6,200 12,200

6.8 12.8 32 88.5 233 577 1,350 3,000

0.57 1.02 3.4 11 32 88.5 233 577

0.034 0.1056 0.71 0.02 3.4 10.7 32 88.4

0.002 0.0063 0.019 0.1 0.39 1 3.4 11

2.0 sigma

158,700

66,800
Charantimath

22,800

6,200

1,300

233

32

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Two Most Common Approaches to Implement Six-Sigma

Define, Measure, Analyse, Improve and Control (DMAIC) Define, Measure, Analyse, Design, Verify (DMADV)

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DMAIC Vs DMADV

DMAIC Business Need/ Change Initiated? No Strengthen process management

Define

Yes

Measure

Analyze Process, Product, or service exists? No DMADV No Yes Yes DMADV Improve

Meets Constomer Requirements?

No

Incremental Improvement Sufficient?

Yes

Is the Solution a new process, product, or service?

Yes Strengthen process management

No Continue with improvements

Control

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Six-Sigma Facilitators

Champions and Sponsors Master black belt Black belt Green belt Yellow belt

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