6 Sigma

1
2000, QualityToolBox.com, LLC, all rights reserved

Executive Overview
A STRATEGY FOR
PERFORMANCE
EXCELLENCE
2
What is Six Sigma?
Letter in the Greek alphabet (s)

sigma is a measure of the variation or
spread within a process.

The sigma value is a metric that indicates
how well a process is performing.

Six Sigma is a methodology to drive process
improvements by focusing on defect
elimination.

In Six Sigma philosophy, sigma is a common
language that indicates how often defects
occur in a process.
Six Sigma is a philosophy and a
methodology focused on defect reduction
3
Process Performance Metric
x
s
USL
2s 3s 4s
A good way to visualize Z:
Z is the number of times the standard
deviation will fit between the mean and
the spec limit.

It is a measure of the process variation
relative to the requirements.

Why use Z?
Accepted standard notation for process
performance.

Z numbers are easier to put in
perspective.
s (or Z) values, are used as a common process capability
metric and can be calculated for all data types.
4
Classical View of Performance
20,000 lost articles of mail per hour
Unsafe drinking water almost 15 minutes per day
5,000 incorrect surgical operations per week
2 short or long landings at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost 7 hours each month
Practical Meaning of 99% Good
3s Capability 93.32% Historical Standard
4s Capability 99.38% Recent Standard
6s Capability 99.99966% Industry Vision
*
*
*
* Long Term Yield assumes 1.5 s shift.
5
The New Equilibrium
Internal &
External
Failure
Costs
Prevention &
Appraisal
Costs
Old Belief
4s
C
o
s
t
s

Internal &
External
Failure Costs
Prevention &
Appraisal
Costs
New Belief
C
o
s
t
s

4s
5s
6s
Quality
Quality
Old Belief

High Quality = High Cost
New Belief

High Quality = Low Cost
s is a measure of how much
variation exists in a process
6
Goal of Six Sigma
2

3

4

5

6
308,537

66,807

6,210

233

3.4
s PPM
Process
Capability
Defects per Million
Opportunities
* Includes 1.5s shift
Focusing on s requires thorough process
understanding and breakthrough thinking
0
10
20
30
40
50
60
70
80
1 2 3 4 5 6
Process Sigma
%

C
h
a
n
g
e
0
100000
200000
300000
400000
500000
600000
700000
800000
P
P
M
From 1 to 2
From 3 to 4
From 4 to 5
From 5 to 6
% Change PPM
7
Keys to Defect Reduction
Six Sigma provides a methodology and tool set
that can be used to identify and reduce defects
Process Capability
Reduce the
Process Variation
Make it Difficult
to do Wrong
Eliminate the
Unnecessary and
the Confusing
(Kaizen)
(Poka Yoke)
(6s)
8
Key is Reducing Process Variation
5 4 3 2 1 0
5 4 3 2 1 0
5 4 3 2 1 0
Process
Reqt
Process
Defects
Process
Data
Data
Distribution
Understand the Causes
Control the critical factors
Mission
Create Robust Processes that
have Minimal Potential to Create
Defects
High Variation +
Poor Centering =
High Defects
Low Variation +
Centering =
Low Defects
9
Six Sigma Methodology
4 Step Methodology for Process Improvement
Process Characterization

1) Measure
Identify Project Scope / Goal
Define Key Process Elements
Establish Process Capability
Validate Measurement System

2) Evaluate
Benchmark Process
Entitlement
Data Analysis
Determine Critical
Factors

Process Optimization

3) Improvement
Develop Improvement Plan
Understand/Optimize Vital
Process Elements
Reduce Variation / Defects
Verify Impact

4) Control
Implement Long Term
Control Plan
Leverage to Similar
Products/Processes
Document & Standardize

Measure
Improvement
10
Strategy
Y = Dependent Variable Output, Defect
x = Independent Variables Potential Cause
x* = Independent Variable Critical Cause
Define the Problem / Defect Statement
Y = f ( x
1
*
, x
2
, x
3
, x
4
*
, x
5
. . . X
n
)
Use Data to Distinguish Vital Few from Trivial Many
Process
(Parameters)
Material
Methods
People
Environment
Output
Machine
Measurements
11
Strategy By Phase
Phase

Measure
(What)

Evaluate
(Where, When, Why)

Improve
(How)

Control
(Sustain, Leverage)

Step

What is the frequency of Defects?
Define the defect
Define performance standards
Validate measurement system
Establish capability metric

Where, when and why do Defects occur?
Identify sources of variation
Determine the critical process parameters

How can we improve the process?
Screen potential causes
Discover relationships
Establish operating tolerances
Were the improvements effective?
Re-establish capability metric

How can we maintain the improvements?
Implement process control mechanisms
Leverage project learning's
Document & Proceduralize

Focus

Y
Y
Y
Y

X
Vital X

X
Vital X
Vital X

Y, Vital X

Y, Vital X

Process Optimization
Measure
Improve
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Six Sigma Tools & Modules
Fundamental Quality Tools
Pareto Analysis
Process Mapping
Brainstorming
Cause-and- Effect
Defectives
Defects
Variables Data
Capability Analysis
Measurement System
Evaluation
Design of Experiments
Statistical Process Control (SPC)
Hypothesis Testing
t Test
Analysis of Variance (ANOVA)
Homogeneity of Variance (HOV)
Chi Squared (c
2
)
Linear Regression
Failure Mode and Effects Analysis
(FMEA)
Short and Long Term Analysis
Power & Sample Size
13
Measure
Define
Problem
Understand
Process
Collect
Data
Process
Performance
Process Capability
- Cp/Cpk
- Run Charts
Understand Problem
(Control or
Capability)
Data Types
- Defectives
- Defects
- Continuous
Measurement
Systems Evaluation
(MSE)
Define Process
- Process
Mapping
Historical
Performance
Brainstorm
Potential Defect
Causes

Defect
Statement
Project
Goals
Understand the Process and Potential Impact
Measure
Improve
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Define Problem
What do you want to improve?
What is your Y?
Reduce
Complaints
(int./ext.)
Reduce
Cost

Reduce
Defects
Problem Definitions need to be based on
quantitative facts supported by analytical data.
What are the Goals?
Measure
Improve
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Understand Process
To understand where you want to be,
you need to know how to get there.v
Map the Process
Measure the Process
Identify the variables - x
Understand the Problem -
Y = function of variables -x
Y=f(x)
Measure
Improve
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Identify Factors - x
Preheat 2 Solder Pot Cooling
C temp.
C proximity
C pot height
C solder height
N purity
N solder support
C temp.

C speed
N direction
From the
Process Map:
Factors (x)
N (noise factors):
factors that are uncontrollable, too costly to control or wish not to control.

S (standard operating procedures):
common sense procedures that describe how the process is run and
identify certain factors to be monitored and maintained.
Typically not parameters that would make sense to test
(e.g., prev. maint., training cleaning)

C (controllable process parameters): factors that can be manipulated to
see their effect on the product parameters.
How ?
Brainstorm
Interview
Experience
Measure
Improve
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Collect Data
What do you need to know?
Process Performance
Customer Satisfaction
Measurement System
Defects
Rework
Scrap
Yield
Z (Cp/Cpk)

Complaints
Returns
Service
Performance
Repeatability
Reproducibility
Timeliness
Cost
Accuracy
Adequacy
What do you want to know?
Measure
Improve
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Process Capability
LSL USL
LSL USL
LSL USL
Six Sigma methodology uses data to characterize and drive
process improvements, focusing on centering processes that
are off-target and/or reducing process variation.
Off-Target
Low Variation
High Potential Defects
On Target
High Variation
High Potential Defects
On-Target
Low Variation
Low Potential Defects
Variation reduction and process
centering create processes with
less potential for defects.
The concept of defect reduction
applies to ALL processes (not just
manufacturing)
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The Nature of the Problem
Time 1
Time 2
Time 3
Time 4
LSL
USL
Short Term Capability
Estimates
Long Term Capability
Estimate
Understanding short & long term capability provides
valuable insight into the Nature of the Problem
Zlt = Zst - Zsh
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The Goal
Z
S
h
i
f
t

Z Short Term
0
3.0 6.0
1.5
3.0
C
o
n
t
r
o
l

Capability
2

3

4

5

6
308,537

66,807

6,210

233

3.4
Zst
PPM
6s Goal
Create robust processes
(Zst > 6s) and provide
long term process control
(Zsh < 1.5s)
Zlt = Zst - Zsh
.5

1.5

2.5

3.5

4.5
Zlt
Both fundamental process capability and long term
process control are needed to create and maintain
robust processes.
Over time, a typical process will shift and
drift by approximately 1.5s (Zsh = 1.5s)
Measure
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Key Process Elements
Process capability is based on 3 elements.
Process improvement is driven by
focus on these 3 elements
Are the process capabilities and
process requirements compatible?
Is the process in
control?
Is the process centered
to minimize the
potential for defects?
Measure
Improve
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Evaluate
Data Analysis

Detailed Data
Collection
Eliminate non-critical
factors
Establish potential
critical factors
Apply statistical tools to
verify critical factors
Identify
Critical
Factors
Measure
Improve
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How is Process Performing?
What are Vital Process Elements?
Assess
Current
Process
Establish Process
Entitlement
Assess Project Goals
23
What is Entitlement?
Definition:

Entitlement is the best process capability that can be achieved without
significant investment.

Translation:

Using basically the existing process equipment/technology what is the
expected performance of the in control process.

Some Thoughts on Entitlement:

Entitlement is never static - there are always opportunities in a process
for incremental improvement.

The key in understanding entitlement is to know enough about the
process to recognize where the real opportunities lie!

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Establishing Entitlement
Short Term Process Capability
- Best Performance for current process

Best Practices
- Industry Standards, Journal
Recommendations, World Class Expectations

Process Benchmarks
- Competitive, Internal, Alternate Businesses
Entitlement is based on defining how really good processes
perform and assessing the existing process.
160 110 60 10
0.76
0.75
0.74
Observation
C
2
8
0.450
0.550
5.000
106.333
107.000
0.624
0.376
7.000
81.000
79.000
Approx P-Value f or Oscillation:
Approx P-Value f or Trends:
Longest run up or down:
Expected number of runs:
Number of runs up or down:
Approx P-Value f or Mixtures:
Approx P-Value f or Clustering:
Longest run about median:
Expected number of runs:
Number of runs about median:
Run Chart for C28
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Performance Benchmarking
When you know what you want to know, try
Benchmarking!
Your Product/Process/Service
Others
Product/Process/Service
?
Identify Differences
Use Data to determine
improvement opportunities

Direct/Indirect Sources
Measure
Improve
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Assess Project Goals
Current Process
Performance
Process
Entitlement
P
r
o
c
e
s
s

P
e
r
f
o
r
m
a
n
c
e

(
s
)

Project Goal
too passive
Project Goal
too aggressive
Time
Realistic
Project Goal
Assure Project Goals are Realistic and Achievable
Measure
Improve
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Data Analysis
Eliminate Trivial Many
Qualitative Evaluation
Technical Expertise
Graphical Methods
Screening Design of Experiments
Identify Vital Few
Pareto Analysis
Hypothesis Testing
Regression
Design of Experiments
Quantify
Opportunity
% Reduction in Variation
Cost/ Benefit
Our Goal:
Identify the Key Factors (xs)
Measure
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Statistical Analysis
0.025 0.020 0.015 0.010 0.005 0.000
7
6
5
4
3
2
1
0
New Machine
F
r
e
q
u
e
n
c
y
0.025 0.020 0.015 0.010 0.005 0.000
30
20
10
0
Machine 6 mths
F
r
e
q
u
e
n
c
y
Is the factor really important?

Do we understand the impact for
the factor?

Has our improvement made an
impact

What is the true impact?
Hypothesis Testing
Regression Analysis
55 45 35 25 15 5
60
50
40
30
20
10
0
X
Y
R-Sq = 86.0 %
Y = 2.19469 + 0.918549X
95% PI
Regression
Regression Plot
Apply statistics to validate actions & improvements
29
Understand Variation & Sample Size
Help us determine whether observed differences are:

statistically significant
or
due to chance
(normal variation / sampling variation)
30
Establish Critical Factors
Process Map (+15 factors)
Graphical Analysis
(10-15 factors)
FMEA/Multi-Vari/Scatter
8-10
Screen Design / Regression
5-8
DOE / Hypothesis Testing
2-5
Vital
Few
Measure
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Trivial
Many
31
Improve
Develop
Improvement
Plan
Optimize Key
Factors
Reduce
Variation/
Defects
Verify
Impact
Goals
Benefits
Timelines
Resources
Roles
Responsibilities
DOE
Process Limits

Implement
Improvements
Control Vital Xs

Capability
Analysis
Regression
Hypothesis
Testing
Assess against
Project Goal
Measure
Improve
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Implement & Validate Improvements
32
Develop Plan
Objectives
(what)
Tactics
(how)
Tactic Goals
(how much/when)
Financial Goals
(overall impact)
Document & Track:
Matrix
Gantt
Form
Other
Measure
Improve
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C
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Resources
(who)
Critical Factors
(where)
33
Focus on Effort & Impact
I
m
p
a
c
t

(
L
o
w
e
r

C
o
s
t
,

V
a
r
i
a
t
i
o
n

R
e
d
u
c
t
i
o
n
,

e
t
c
)

Effort
(Time, Resources, Investiment,etc)
Focus on High Impact, Low Effort Improvement Opportunities
Low
High
High
Low
Measure
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Reduce Variation/Defects
Identify Controllable
Improvements
Mistake
Proofing
Statistical
Process
Control
Control Charts
Control Limits
Poka-Yoke
Fixtures
Systems
Measure
Improve
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Visual
Indicators
Visual Management
Pull systems

Focus Controls
on Vital Xs
35
Optimize Factors
Perform Experiment
Interpret Results
Main Effects
Interactions
Significance
Optimize Prediction Model
Measure
Improve
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C
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Use Design of Experiments to understand and
optimize process settings
A
B
Low High
Low
High
C
Low
High
Zi nc Copper Cl eaner
6
7%
10
0%
7
1%
10
0%
9
0%
10
0%
0.000620
0.000595
0.000570
0.000545
0.000520
T
h
ic
k
n
e
s
s
Main Effects Plot - Data Means for Thickness
Y = A + Bx
1
+ Cx
2
+ D x
1
x
2
+ ... Reduce Variation
Reduce Defects
36
Control Process Factors
55 45 35 25 15 5
60
50
40
30
20
10
0
X
Y
R-Sq = 86.0 %
Y = 2.19469 + 0.918549X
95% PI
Regression
Regression Plot
Process Input (X)
P
r
o
c
e
s
s

O
u
t
p
u
t

(
Y
)

USL
LSL
Process
Limits
UCL
LCL
Specification
Limits
0 20 40 60 80
LSL USL
Before
10 20 30 40 50
LSL USL
After
Before
After
After
Before
s =1.5
s =3
Reduce Variation to gain
process performance and
expand process limits
Reduce defects by focusing control on process inputs
(Xs) not the output (Y)
Process
Variation
Measure
Improve
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Verify Improvements
Use statistical tools to validate the process improvements
0
1
2
3
4
5
6
7
-10.16 -0.06 10.05 20.15 30.25 40.36 50.46 60.56 70.67
Before
-2.40 6.61 16.71 26.81 36.92 47.02 57.13 67.23 34.64
After
Comparison of Distributions
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
-10.16 -0.06 10.05 20.15 30.25 40.36 50.46 60.56
Before After
Did we make a real improvement?
Do we have enough data to tell?
What is the true impact!
Process Performance
Measure
Improve
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Control
Implement
Control Plan
Leverage to
other Processes
Document &
Standardize
SPC
FMEA
Process Capability
Update Control
Plan

Similar Processes
Like Products

Procedures & Work
Instructions
Update Systems
Measure
Improve
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Assure Controls in Place to Maintain Improvements
Look for Leverage Opportunities
39
Failure Modes & Effects Analysis
Process control plan linked to potential product / process failures.
Actions Results
0
0
0
0
0
0
0
R
P
N
Actions Taken
S
E
V
O
C
C
D
E
T
Resp
Target
Date
Recommended Action(s)
0
0
0
0
0
0
0
C
l
a
s
s
D
E
T
R
P
N
Potential Cause(s) /
Mechanism(s) of Failure
O
C
C
Current Process
Control(s)
S
E
V
Process Function
Reqts
Potential Failure
Mode
Potential Effect(s) of
Failure
Rank
Rank
Severity
Severity
Occurrence
Occurrence
Detection
Detection
1
2
3
4
5
6
7
8
9
10
Transparent Remote Certain
Endangerment Certain Remote Worst
Worst
Best
Best
FMEA risk analysis considers Severity, Occurrence and Detection
RPN =Severity (SEV) x Occurrence (OCC) x Detection (DET)
FMEA minimizes risk of Product /
Process failures by linking each
potential failure to a potential
failure mode/cause and evaluating
the associated risks (RPN)
40
Process Control
100 50 0
80
70
60
50
40
30
20
10
0
-10
Observation Number
I
n
d
i
v
i
d
u
a
l

V
a
l
u
e
I Chart for C5 by C6
1
X=16.12
3.0SL=31.84
-3.0SL=0.3996
2
Measure
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Before After
Develop effective mechanisms to maintain control of
process improvements
Apply controls to process inputs -
Xs (not necessarily output - Y)
SPC
Other Examples of Control Mechanisms:

Go/No Go Gages for process inputs
Error Proof Designs
Poka Yoke Techniques
Equipment Indicator Lights
Etc.

41
Control Plan
Measure
Improve
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Update process control plan to maintain improvements
Now we Understand the Problem / Defect Statement
Y = f ( x
1
*
, x
2
, x
3
, x
4
*
, x
5
, X
6
)
Process
(Parameters)
X
4
*
Output
X
3

X
2

X
6
X
5

X
1
*

Vital Factors included in Process Control Plan
42
Rebenchmark Process Performance
Previous Process
Performance
New Process
Expectation
Adequate Controls in Place to Maintain Improved Process
43
Leveraging
Measure
Improve
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Understand Drivers
Improvement applied to specific part / problem

Apply learnings
Across part families
Like processes
Similar technologies
44
Six Sigma Summary
4 Step Methodology for Process Improvement
Measure
Characterize Process
Understand Process
Evaluate
Improve and Verify Process
Improve
Maintain New Process
Control
Roadmap for Performance Excellence

6 Sigma

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