Understanding 6 Sigma

Understanding 6s (Six Sigma)
Contents
6σ
What is 6σ activity?
Why should we do 6σ?
How to Launch 6σ ?
Common term
What is Six Sigma Activity ?
6σ
1. What are the statistics ?

2. Solution of the Practical Problem
3. What is the 6σconcept ?
4. 6σ as the Business Strategy
5. 6σ Application
6. 6σ Activity Process
7. Comparing other tools
8. 6σ Philosophy
1. What are the statistics ?

6σ
◆ Population & Sample Measure 10 samples
(Spec. : 100±4)
LSL USL
Population (Lower (Upper
N ＝ 1,000 Total inspection is Spec Spec
impossible ! Limit) Ⅹ Limit)
Ⅹ
Ⅹ Ⅹ Ⅹ
Sample Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ
Statistical variables 96 97 98 99 100 101 102 103 104
(mean, variance)
estimate population
○ You may say “ This Population is Good because all the sample’s data are located
between LSL & USL. BUT, If you estimate the defect rate using statistical analysis,
this population has the probability of 2.8% defects per unit.
Then this is - we call - “An epidemic” quality defect level.
○ Measuring defect rate on process through an expanding statistical concept,
we can use measuring process capability.
Basic Statistics - I 6σ
Contents
1. Sample & Population.

2. Types of data
3. Measures of central tendency.
- Mean, Median, Mode.
4. Measures of dispersion
- Standard dev, Variance, Range
5. Graphs
- Histogram, Boxplot, Dotplot
6. Correlation
1. Population & sample 6σ
Let us consider a example: Suppose we want to find out average height of males of Delhi. Since we can
not measure the height of each male of Delhi, we will have to select a sample (say 1000 nos) of males to
predict the average height of entire male population (1crore) of Delhi.
Characteristic of population
Population : Parameter
Sample Characteristic of sample

: Statistics
From the given example, we conclude the following:
Population : Nos of entire males of Delhi.

Parameter : Average height of males of Delhi.
Sample : 1000 males of Delhi
Statistics : Average height of 1000 males of Delhi.
Thus statistics is used to predict parameter of population.

How to collect data ? 6σ
In the picture shown over here ,
a woman is preparing tea.
Before serving tea, she is
testing the taste of tea.
For this purpose, she has to
shake the tea well . For sample,
she is tasting one spoon.
Based on the taste of this spoon
she is going to make decision,
whether tea is good for serving
or not.
The origin of a sampling survey
1. Shake it well ☞ No bias The above example shows that

since we cannot measure the
whole population, the sample
☞ Sampling must be selected at random,
2. Take one spoon
so that statistic reflects or
predicts parameter exactly.
3. Make Decision ☞ Based on Statistics
4. Action
2. Data Types
6σ
Data in any form can be of two types :
1) Discrete types
2) Continuous types
Discrete data : A data which is based on information such as pass / fail . In discrete data you
cannot be more specific.Tolerance : Infinity

Ex1. Do you love me ?
The answer can only be yes or no . ie the data is discrete
Ex2. AC Gas leakage can be either OK or NOK type.
Continous data - The data which uses a measurement scale of length, time or any scale. The
continous data contains more information than discrete data. Defined

Tolerance
Ex1. How much do you love me?
The answer can be anything , for eg on a scale of 1-10 you can say 1
if you don’t love me much, but you can give 10 if you are deeply in love
with me . This is an example of continuous data.
Ex2. Height, Length , weight, diameter etc.
.
3. Measures of Central Tendency
6σ
3.1 MEAN
The mean (also called the average) is a measure of where the center of your distribution lies. It
is simply the sum of all observations divided by the number of observations.
Eg For the rainfall data in 11 major cities of the country,
the mean is:
(2 + 3 + 10 + 5 + 4 + 4 + 3 + 3 + 1 + 2 + 3) / 11 = 3.636.
The mean is strongly influenced by extreme values. Even though most cities (7 out of 11) had 3 mm or
less of rainfall, the mean is close to 4. The extreme value of 10 mm with rainfall for Mumbai is affecting
the mean quite a bit. Without this observation, the mean would be exactly 3. On the other hand, if you
include Mumbai with 30 mm of rain instead of 10 in the calculations, the mean would be 5.455, a
value that is greater than all but one observation!
3.2 MEDIAN
. median (also called the 2nd quartile or 50th percentile) is the middle observation in the data
The
set. It is determined by ranking the data and finding observation number [N + 1] / 2. In the rainfall data set,
there are11 (non-missing) observations. Thus, the median is the value of the 6th highest (or 6th lowest)
observation, which is 3:
1 2 2 3 3 3 3 4 4 5 10
If there are an even number of observations, the median is extrapolated as the value midway between that
of observation numbers N / 2 and [N / 2] + 1.
The median is less sensitive to extreme values than the mean.For example, the median of this data set
would be 3 even if there were 30 mm with rainfall in Mumbai instead of 10. Therefore, the median is
often used instead of the mean when data contain outliers, or are skewed.
NB: Always arrange the given data in ascending or descending order
6σ
3.4 MODE:
The mode is the value in an array of data that is repeated the most. The mode is also a measure of
central tendency but is rarely used,as in some cases , chances are there that a single unrepresentative
value is also the one that is repeated most often.
For eg in the data of the rainfall in the 11 cities here the most repeated value is 3 so the mode is 3, but if
our data had been 0, 2 ,5 ,7 ,15 ,1 ,4 ,6 ,8 ,15
Then our mode would have been 15.
4. Measures of Dispersion
6σ
4.1 STANDARD DEVIATION (STDEV): σ
The standard deviation (StDev) is a measure of how far the observations in a sample deviate from the
mean. It is analogous to an average distance (independent of direction) from the mean.
The standard deviation is the most commonly reported measure of dispersion. It also serves as an
estimate of the dispersion in the broader population from which a sample is taken.
Consider example of rainfall given on page 1.
2 2
rainfall
2
x -x
2 - 3.636
(x - x ) 2
(2 - 3.636) 2
σ = Σ (x-x) /( n)
3 3 - 3.636 (3 - 3.636)2
10 10 - 3.636 (10 - 3.636) 2 σ = Standard deviation
5 5 - 3.636 (5 - 3.636) 2 x = item or observation
4 4 - 3.636 (4 - 3.636) 2 x = population mean
4 4 - 3.636 (4 - 3.636)2 n = total no. of items in the population
3 3 - 3.636 (3 - 3.636) 2
3 3 - 3.636 (3 - 3.636) 2 In given case we have, n=11
1 1 - 3.636 (1 - 3.636) 2
2 2 - 3.636 (2 - 3.636) 2
3 3 - 3.636 (3 - 3.636) 2 So σ = 56.54/11 = 2.378
x=3.636 Σ (x-x) =56.54
2
The standard deviation for the rainfall data is 2.378mm . This tells you that on average, the values in the
data set tend to differ from the mean by ± 2.378.
If the data are normally distributed, then the standard deviation and mean can be used to determine what
proportion of the observations fall within any given range of values. For example, 95% of the values in a
normal distribution fall within ± 1.96 standard deviations of the mean.
Like the mean, the standard deviation is very sensitive to extreme values. The large value of 10 mm of
rainfall for Mumbai increases the standard deviation quite a bit. Without this value, the standard
deviation would be 1.155 instead of 2.378. Conversely, if Mumbai had 30 mm of rain, the standard
deviation would be 8.210
6σ
4.2 STANDARD ERROR OF THE MEAN (SE MEAN):
The standard error of the mean (SE Mean) is not often used as a descriptive statistic, but it is important
in hypothesis testing. It is an estimate of the dispersion that you would observe in the distribution of
sample means, if you continued to take samples of the same size from the population.
The standard error of the mean is the standard deviation divided by N
4.3 RANGE:
The range is defined as the difference between the highest and the lowest observed values, in a given
array of data.
It is very easy to understand but has very limited usefulness as a measure of dispersion.
For eg: for the given rain data - the highest value is 10 & the lowest value is 1,
so the range is 10-1 =9
4.4 VARIANCE
:
The variance of a2 population signifies the deviation of the data values from the mean value, it is
symbolized by σ . To calculate the population variance we have the following formula:
2 2
σ = Σ(x-µ)2 / N σ = population variance
x = item or observation
= population mean
µ
= total no. of items in the population
6σ
4.5 FIRST AND THIRD QUARTILES (Q1 AND Q3)
The first quartile (Q1, also called the 25th percentile) is the highest value for the lowest 25% of the
observations. For the rainfall data, Q1 is 2.
The third quartile (Q3, also called the 75th percentile) is the lowest value for the highest 25% of the
observations. For the rainfall data, Q3 is 4.
Q1 and Q3 are often used to calculate the inter quartile range (IQR), which is another statistic used to
describe dispersion. The IQR is the range of the middle 50% of the values and is calculated by the
formula Q3 - Q1. The IQR for the rainfall data set is 4 - 2 = 2.
The IQR is relatively insensitive to extreme values. For example, the IQR would remain the same even
if there were 30 mm with rain in Mumbai instead of 10.
5. Graphs
6σ
5.1 HISTOGRAM OF DATA
A histogram displays data that have been summarized into intervals.
It can be used to assess the symmetry or skewness of the data. To construct a histogram, the
horizontal axis is divided into equal intervals as shown below , and a vertical bar is drawn at each
interval to represent its frequency (the number of values that fall within the interval).
4
In the histogram of the rainfall data, notice the single
3 extreme value in the interval from 9.5 to 10.5. If not for
this outlier, the distribution would be perfectly symmetric
Frequency
2
and fairly normal.
1
1 2 3 4 5 6 7 8 9 10
rainfall
5.2 DOTPLOT OF DATA

Use the dotplot to examine the dispersion and concentration of the data. Each circle represents one or
more observations.
In the dotplot of the rainfall data set, notice that several of the dots represent more than one observation.
Dotplot for rainfall
1 2 3 4 5 6 7 8 9 10
rainfall
6σ
5.3 BOXPLOT OF DATA
Boxplots summarize information about the shape, dispersion, and center of your data. They can also
help you spot outliers. Box plot is as shown below :
Q3
.
Q1
Median
0 1 2 3 4 5 6 7 8 9 10
rainfall
A. The left edge of the box represents first quartile (Q1), while the right edge represents third quartile (Q3).
Thus the box portion of the plot represents the interquartile range (IQR), or the middle 50% of the obs
.
B. The line drawn through the box represents the median of the data.
C The lines extending from the box are called whiskers. The whiskers extend outward to indicate the
lowest and highest values in the data set (excluding outliers).
D Extreme values, or outliers, are represented by asterisks (*). A value is considered an outlier if it is
outside of the box (greater than Q3 or less than Q1) by more than 1.5 times the IQR.
.
6σ
Use the boxplot to assess the symmetry of the data:
• If the data are fairly symmetric, the median line will be roughly in the middle of the IQR box
and the whiskers will be similar in length.
• If the data are skewed, the median may not fall in the middle of the IQR box, and one whisker
will likely be noticeably longer than the other.
In the boxplot of the rainfall data the median is centered in the IQR box,and the whiskers are the same
length. This indicates that except for the outlier (asterisk), the data are symmetric. This is a good
indication that the outlier may not be from the same population as the rest of the sample data.
6. CORRELATION 6σ
6.1 CORRELATION
A Pearson correlation coefficient measures the extent to which two continuous variables are
linearly related.
Suppose you have a sample of candies and you want to know if the temperature of your production
facility is associated with changes in the thickness of the chocolate coating. Or, you may have a
sample of golf balls and want to determine if differences in their diameter are associated with
differences in elasticity.
There are a few points to keep in mind when performing or interpreting a correctional analysis:
•Correlation coefficients only measure linear relationships. A meaningful nonlinear relationship can
exist even if the correlation coefficient is 0.
•It is never appropriate to conclude that changes in one variable cause changes in another based on
a correlation. Only properly controlled experiments allow you to determine if a relationship is causal.
•The correlation coefficient is very sensitive to extreme values. A single value that is very different
from the others in a data set can change the value of the coefficient a great deal.
The correlation coefficient can range in value from -1 to +1, and tells you two things about the linear
relationships between two variables:
•Strength — The larger the absolute value of the coefficient, the stronger the linear relationship
between the variables. An absolute value of one indicates a perfect linear relationship, and a value of
zero indicates the absence of a linear relationship. Whether an intermediate value is interpreted as a
weak, moderate,or strong correlation depends on your objectives and requirements.
•Direction — The sign of the coefficient indicates the direction of the relationship. If both variables
tend to increase or decrease together, the coefficient is positive. If one variable tends to increase as
the other decreases, the coefficient is negative.
6σ
Following graphs tell about the strength & direction of relationship between 2 variables
r=1 r= -1 r=0 r > 0.8 means a

correlation exists
between the 2 variables.
slope is positive slope is negative slope is zero
Perfect positive correlationPerfect negative correlation No correlation
Formula for r
r=0.4 r= -0.4
slope is positive slope is negative For the two variables x and y,
r = ∑ ( X - X ) (Y - Y)
Sx S y (n -1 )
Slight positive correlation Slight negative correlation where and Sx are the sample mean and
standard deviation for the first sample,
and and sy are the sample mean and
standard deviation for the second sample.
6σ
Suppose , we want to find out , whether any correlation exists between height(ht) & weight(wt) of
individuals .We measure ht & wt of 7 individuals & get data as shown below :
Height(cm) Weight(Kg)
151 55
155 65
Pearson correlation of Height and Weight = 0.979
183 76
129 48
(as derived from the formula for ‘r’ given on the
189 80 previous page
178 75 P-Value = 0.000
165 68
The correlation coefficient value of 0.979 indicates that there exists a strong correlation between
height & wt of individual.
The p-value tells you if the correlation coefficient is significantly different from 0.
(A coefficient of 0 indicates there is no linear relationship):
•·If the p-value is less than or equal to your level, then you can conclude that the correlation is
different from zero, which means there exists a correlation between 2 variables.
• If the p-value is greater than your level, then you can not conclude that the correlation is
different from zero, which means there does not exist a correlation between 2 variables.
Generally , value of is chosen as 0.05 , therefore in the given case, since p value is 0, we can
conclude that there definitely exists a correlation between ht & wt.
2. Solution of the Practical Problem

6σ
Precise but not Accurate Shift to Shifting to Target &
Target Reducing Variation
T
T Object
LSL USL
LSL USL
of 6σ is
μ Shift to
μ Accurate but not Precise Target
T Reducing
LSL USL variation
Reducing
Variation
3. What is the 6σ concept ?

6σ
Statistical Definition of 6σ
LSL Target USL
6.68%
3σ
σ
6σ Quality means that area
-3σ +3σ of the estimated normal
distribution is located between
USL&LSL with 6 σ.
3.4ppm
In that case area of
6σ σ the outlier spec.
(In other words estimated
-6σ +6σ defects) is just 3.4 PPM.
* σ : Standard Deviation Statistic index measures how much is data apart from target value

6σ
6σ as the Business Strategy
σ PPM • 1 misspelled word in all of the books

contained in a small library
6 3.4
• $340 indebtedness per $100 millions assets
5 233 • 1.8 minutes per year
4 6,210
• 1.5 misspelled words per page in a book
3 66,807 • $6.7 millions indebtedness per $100 millions
assets
2 308,537 • 24 days per year

6σ
6σ as the Activity
What is 6σ activity?
• In all Design, Manufacturing, and SVC
processes
Achieving
• Applying for 6σ statistic Tools & Processes
3.4 PPM
• To find factors causing defects (3.4 Defects Per Million)
• Acting the Analysis and Improvement
• Through the Defect Reduction, Increase Yield
& Total Customer Satisfaction
• Management Innovation Tool contributes to
Management Output
PPM : Parts per Million

6σ
1. It is a statistical measurement.
• It tells us how good our products, services, and processes really are.
• 6σ helps us to establish our course and gauge our pace in the race for total
customer satisfaction.
2. It is a improvement tool.
It’s a full packaged tool applying to design, manufacturing, sales& SVC.
3. It is a business strategy.
• It can greatly help us gain a competitive edge
• As you improve the Sigma rating of a process, the product quality improves
and costs go down. Naturally, the customer becomes more satisfied as a result.
4. It is a philosophy.
• This is one of working smarter, not harder.
• Also it makes fewer and fewer mistakes in everything we do.

6σ
Harvesting the Fruit of 6σ
Fruit-bearing 6σ
• Sweet Fruit
• Design for Manufacturability
Wall of 5σ
• Bulk of Fruit
• Process Characterization and
Optimization
Wall of 4σ
• Low Hanging Fruit
• Seven Basic Tools
Wall of 3σ
• Ground Fruit
• Logic and Intuition
5. 6σ Application
6σ
6σ is a tool that applies to all business systems - Design, Manufacturing,
Sales and SVC
Design Guarantee for the Design completion

De- R&D in developing stage
sign 6σ • Selecting CTQ to meet customer needs
• Decision reasonable Tolerance
• Guarantee of the CTQ’s capability analysis
6σ
Quality assurance in manufacturing
Mfg. Mfg.
stage
• Improvement serious problem using S/W
Sales Manufacturing • Real Time Monitoring system
&SVC 6σ → CTQ Control system
Transaction
6σ Sales& Maximizing for sales & SVC
SVC • Improvement cycle time and accuracy
• Cost Improvement
6σ
6σ Activity Process(manufacturing & Transaction)
Identify Customer-Driven 1. Who are your customers?

CTQ* (Critical to Quality) - Internal / External
2. What do you provide your customers?
Characteristics ** 3. What is critical to quality for your customers?
D
Identify Key Processes that 1. What are your internal processes for
cause Defects in a CTQ providing your product or service CTQ’s to
Characteristics your customers?
2. Where do defects occur in these processes?
For Each Product or
Process CTQ • Practical Problem •Process Mapping
M • Measurement System σ Calculation
Measure, Analyze, Improve, • Yield Calculation
& Control • Benchmarking • Cause & Effect Diagram
A • Hypothesis Testing
• DOE • Action Workout Techniques

I • Brainstorming • Piloting
6σ is a rigorous analytical
• Control Mechanism • Procedures
process for solving problem!!! C • Control Chart
* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical.
** D : Define
6σ
Example of development process apply R&D 6σ
Evaluation Evaluation
Evaluation meeting for meeting for E/S
Kick meeting for basic planning drawing
Development -Off present condition concept confirm confirm
Process
Custo- QFD Design Process QFD Spare Similar Z Value Z Value Meeting
R&D mer S-1 FMEA FMEA S-2 CTQ process of CTQ 값 optimize, for CTQ
6σ Needs Selec- Data Analysis Design Check
Survey tion gathering improve
E/S Development P/L P.P

E/S Quality drawing Income P/L Quality Income P.P Quality
making meeting confirm Parts Making Meeting parts Making meeting
CTQ
CTQ Data Activity CTQ Z Value of
deci- for new for for new CTQ
sion parts process parts confirm
gather- improve- Confirm
ing ment
7. Comparing other
6σ
tools
By Improvement Process
Measure Analysis Improvement Control
- Symptoms - Present con- - Improved - Control by

Others - Discrete Data
- Frequency dition Analysis by expert’s control chart
• Focusing Idea - Process - Difficult to apply practical
experience/ 4M control problem because of
technology complextity
6σ - Define/ - Analysis for - Optimizing - Control by - Discrete+Continuous

Measurement statistics condition by PTS * data
- Variance of - Effect analysis statistical (CTQ, - Easy to apply because
CTQ caused factors analysis Benefits) of supporting statistical
software.
* PTS : Project Tracking System

90 29
7. Compare with other tool

6σ
100ppm / 6σ
100ppm / 6σ Application
100ppm 6σ
→ Selecting Line
• Detecting process • Control process
→ Do process FMEA
defects variation - Selecting Cost issue
process view of customer
• Managing Tool • Improvement Tool
→ Conform CTQ process
• Product managing • Prevention Control → Sorting the process
- Just need control process
compare with spec. vital few factors
- Important control process
- Law application process
• Judging each • Judging the statistic - Variation improvement
person’s Know-How Data
→ 100ppm / 6σ application
• Manual Data • Simple & Effective
according to sorting
gathering & analysis analysis using the process
S/W
6σ
8. 6σ Philosophy
Focusing Point
CTQ(Y) = F( X1, X2, X3, ... Xn )

● 6σactivity is selecting the cost issue
Y X problem on some system in view of
customer.
¶ Dependent ¶ Independent
This is we called “CTQ” and
¶ Output ¶ Input-process We achieved 6σ target through
¶ Effect ¶ Cause the 6σ process just selecting CTQ
¶ Symptom ¶ Problem
● Also, 6σ activity is focusing
¶ Monitor ¶ Control
the causing factor(x1,x2...xn),
not selecting CTQ itself
X factor effects on CTQ(Y) has

the vital few 20% & trivial many
80%.
6σ
8. 6σ Philosophy
◆ We don’t know what we don’t know.
◆ If we can’t express what we know in the form

of numbers, we really don’t know much about it.
◆ If we don’t know much about it,

we can’t control it.
◆ If we can’t control it,

we are at the mercy of chance.
8. 6σ Philosophy
6σ
◆ Our survival is dependent upon growing the business.

◆ Our business growth is largely determined by customer satisfaction.
◆ Customer satisfaction is governed by quality, price, and delivery.
◆ Quality, price, and delivery are controlled by process capability.
◆ Our Process capability is greatly limited by variation.
◆ Process variation leads to an increase in defects, cost, and cycle time.
◆ To eliminate variation, we must apply the right knowledge.
◆ In order to apply the right knowledge, we must first measure it.
◆ Measure the problem, we‘ll get the right knowledge.
Why do we do Six Sigma ?
6σ
1. Quality & Failure Cost
2. Paradigm Shift
3. Character of 6σ
4. 6σ Case Study
1. Quality & Failure Rate

6σ
“Generally controlled F-Cost has small portion considering of Hidden Loss”
Inspection
SVC Traditional F-Cost
Scrap
( Easy Definition)
Reject Rework
Potential(Additional)
Design Change Loss Opp. Sales
F-Cost
(Difficult to measure)
Long cycle time Delivery Delay
Over Rework Brand Image Down
Office Loss Over Storage

2. Paradigm Shift
6σ
Paradigm Shift for Quality
Old Belief New Belief
$
Internal&
Appraisal
& Prevention $ $ Internal &
Appraisal
& Prevention
External Failure Costs External Failure Costs
Costs Costs
Increased Quality Increased Quality
means Higher Cost reduces Total Cost
$
4σ
5σ
4σ 6σ
Quality Improves Quality Improves

The high quality producer is the low cost producer not expensive.
Internal Failure : Scrap / Remake / Supplier Rework
External Failure : Cost to Customer / Warranty Cost / Compliant Adjustments / Returned Material
Appraisal : Inspection / Test / Quality Audits / Test Equipment
Prevention : Quality Planning / Process Planning / Process Control / Training
2. Paradigm Shift
6σ
Comparing 6σ with 3σ
The 3 σ Company The 6 σ Company

• Spends 15~25%of sales dollars on cost • Spends 5%of sales dollars on cost of
of failure failure
• Produces 66,807 ppm opportunities • Produces 3.4 ppm opportunities
• Relies on inspection to find defects • Relies on capable processes that don’t

produce defects
• Believes high quality is expensive • Knows that the high quality producer is
the low cost producer
• Does not have a disciplined approach • Use Measure, Analyze, Improve, Control
to gather and analyze data and Measure, Analyze, Design
• Benchmarks themselves against their • Benchmarks themselves against the best

competition in the world
• Believes 99% is good enough • Believes 99% is unacceptable
• Define CTQ’s internally • Define CTQ’s externally

2. Paradigm Shift
6σ
Practical Meaning of “99% Good”
➷ 20,000 lost articles in mail per hour.

➷ Unsafe drinking water almost 15 minutes each day
➷ 5,000 incorrect surgical operations per week
➷ 2 short or long landings at most major airports each day
➷ 200,000 wrong drug prescription each year
➷ No electricity for almost 7 hours each month
4 σ = 99.38%
3. Character of 6σ
6σ
Traditional Quality / 6σ Quality Method
ISSUE Traditional Approach 6σ Approach
Index • %(Defect Rate) •σ
Data • Discrete Data • Discrete + Continuous Data
Target • Satisfaction for Mfg • Customer Satisfaction

Process
Range • Spec Outlier • Variation Improvement
Method • Experience + Job • Experience + Job +

Statistical Ability
Action • Bottom Up • Top Down
Application • Mfg Process • Design, Mfg, Sales, SVC

3. Character of 6σ 6σ
Good Point of 6σ
¶ Pursue common goal ¶ Innovation through all Biz.
¶ Control main factors at upstream ¶ Reduce claim and rework
¶ Apply Statistics on all Biz. ¶ Easy to access difficult problem
¶ Support Statistics S/W ¶ Foolproof for statistics
¶ Data analysis by experiment ¶ Make indistinct facts clear
¶ Make decision base on Data ¶ Exclude wrong ideas & prejudice

3. Character of 6σ
6σ
Benefits and superiority of 6σ
Benefits : - Decrease cost of loss, Improve quality of product and service ,
satisfy the customer
- It can make clear the output of Business.
Superiority ■ Variety of applications : Can apply all industry include financing Biz.
*
■ 3P Focus & reasonable index for appraisal
Not only product and service, but also process and quality of human resour
can be clear the goal and status by measuring.
■ High Effect of Investment
No invest on hardware, only on human resources.
■ Clearness of effect for cost
Output can be estimated clearly by financial part take part in which control
cost and benefit form the beginning of project.
■ Data driven mind & easy to use statistics Tool.
Through experimental data analysis indistinct fact can be clear.
Exclude experience and prejudice.
Can handle statistics by the S/W package(Minitab).
* 3P : Product, Process, People

4. 6σ Case Study
6σ
Start & Prosperity
Start : Motorola Prosperity :GE
● At the beginning of 80’s, In the Japanese ● In 1995 GE launched 6σ process

market, Motorola’s beeper lost its name to overcome a difficult business
value because of the quality difference environment and to challenge
compared to Japan’s World Class Quality.
● In 1981 they tried to meet a challenge to ● They made new processes such as
improve quality 5 times in 5 years and they Productivity,Inventory Return and NPI,
couldn’t. but improvement was delayed
because of defects in processes.
● They developed a consistent process base
on statistical knowledge. ● GE thinks World Class Quality is
big challenge. GE will focus on
● In 1987, they established 6σ goal 6σ process for next generation .
as a key initiative.
4. 6σ Case Study
6σ
Cases of other companies
MOTOROLA T I G E SONY
Introduce 1987 1988 1995 1997
Outcome Q. Cost Down Q. Cost Down Q. Cost Down By 2000 years

$3.2billion 1988:30% $3.8billion Train 2,000
→1993:7.4% Black Belts
Character Origin of 6σ Adopt to all Biz. First in Japan

-ristics (Quality level
elevated 100 times
in 4 years)
Remarks Culture harmony TOP DOWN Train and do pjt. Consult with
Western & Oriental Quality Train 6 σ Academy
4. 6σ Case Study
6σ
Output of other companies
Benefits Qualitative output
Motorola Motorola reached 5.5σ level in 1992.

Outcome is $3.2billion from1987 to 1992.
1200
Costs
1000
● 6σ do the role of Boundaryless Behavior.
Benefits
● Organization become learning & logical
800
G E
● Use 6σ as worldwide common language.
600
● GE believes that 6σ would take part
400
central role in the future.
200
0
96 97 98
How to Launch Six Sigma ?
6σ
1. Key Factor for Success of 6σ
2. 6σ Operating system
3. Project tracking system
4. Case study for Infra.

1. Key Factor for Success of 6σ

6σ
System requirement Methodology
■ Need Top Down Drive ■ Start at Customer’s voice.

● Need Top management’s strong will for 6σ. ● CTQs from Customer’s voice,
● Top management’s strong and periodical Improve the item which has big impact first!
announcement about 6σ policy.
■ All employees must participate... ■ Need Training Program for All employees
● Not only manufacturing part, but also ● Complete understanding for 6σ program.
nonmanufacturing part should join the program ● Hard training for all employees.
● Focus on Customer’s requirements. ● Need resource investment resolutely.
■ 6σ as Pan-Company’s common standard. ■ Construct Infra

● Common language .(CTQ, σ, Cp,Z ....) ● Need successful case study project.
● Avoid personal translation about 6σ. ● Resource reformation for organization and system.
● All of Goal and target are represented as σscale. ● Reasonable appraisal and reward system.
● Basic process for all of projects.
6σ
Chief of executive division
- 6σ Driving
- 6σ Involvement & Commitment
Champion
- 6σ Operating
Re
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Champion
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Review
tin
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Coaching/Supporting
MBB(Master Black Belt) Project Team
- Supporting 6σskill Request supporting - Operating Project
- Achieving 6σ level for CTQ
* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme → Output review)
6σ
Champion
Definition Roles
- Present the Vision

• Set the 6σ goal
• Assignment subject for total optimization
• Guide direction and goal of Project
- Drive 6σ Activity
• Chief of 6σ operating • Continuously lead Activity through strong commitment
• Evaluate Output and Share best practice with MBB
• Chief of business groups
(Chief of OBU, Business - Involvement
Executives, Chief of • Monitor and support through Champion Review
subsidiary) • Directly support to settle bottleneck for 6σactivity
- Support Project
• Lead supporting all department in improvement
and control step for 6σ Project team
• Deciding Investment and allocate resources
• Generate motives
It ☞
is very important that the Champion gets involved in project and take ownership for 6σ
6σ
MBB(Master Black Belt)
Definition Role
- Support Skill
• Coach BB/GB for 6σskill and tools
• Level Up for 6σ skill & tools
• Share best practice
• 6σ Technical Leader
- Drive project results
• Full Time Job for 6σ
• Check the Project by 6σ progress step
• Report champion about project status and output
• Complete MBB Course or
• Assure benefits are real
acquire MBB Cert.
- Support Projects
• Mentor BB / GB and Train individuals in tools
• Support settlement for 6σActivity Barrier
• continuous management and control for improved process
☞ It is very important to select excellent MBB and continuously improving skill

6σ
Belt Certification
Belt Main Job Role Requirements
• 6σ Technical Leader • Leading BB/GB • More than 4 Projects

Master • Needs Stat. Skill • Project Drive &
• Verity Output • Consulting More than
BlackBelt Propagate
5 Projects a year
• Training
• Full Time Project • Execute Project • 2 Projects

BlackBelt On TDR Theme • Leader of Pjt. team &
• Team member • 1 Project a year
training
• Join Project by • Execute Project • 2 Projects

GreenBelt Part time • Team Leader or
Member
3. Project Tracking System

6σ
PTS* Flow Benefit
All Project - Update and control CTQ of Closed Project

Projects
PTS
Reviews - Easily manage and report for Project status
Belt Champion,
Owners - Evaluate reduction cost of 6σProject
- Share Project information
- Defect Data,Goal • Weekly Review
- Project status - Monitor 6σ Project status
• Confirm cost benefits
- Results Benefits • Project Theme/Z value/Reduction cost
- Weekly update • Check & monitor Amount
• By Division/OBU/Product/Model
* PTS : Project Tracking System

4. Case Study For Infra.

6σ
Organizing Planning 6σTraining Construct Training For

Case Study
6σTeam 6σStrategy Material IT System All Employees
- Due part - Briefing 6σ - Introduce 6σ - Improve Chronic - 6σ Team - Training for Employees
MFG : QA Team Process : All Employee Defects
Leader : Minitab S/W - Training for Boards
R&D : Chief of - Planning 6σ - 6σ GB → Project Review
Lab. Strategy/Goal Training Prg. - Optimize
: Engineer, Process IT
- Organize 6σ Staff : Real Time
Surport Part Monitoring
:2~3 person/OBU - 6σ GB : Data Base
Training Prg. For CTQs
→ Organize : Supervisor
6σ Team - PTS
: Project Tracking
System
Common Terms
6σ
1. CTQ
2. DPU / DPMO
3. Z Value
4. Process Capability Index
5. Rolled Throughput Yield

Common Terms
1. CTQ
6σ
Definition of CTQ Typical Tools
● Customer states as critical to quality

• Customer surveys
of product, service or process.
• Focus Groups Interview
• Customer needs Mapping
● Most CTQ’s are customer-driven,
• Quality function deployment(QFD)
but risk, economics, and regulation
may drive others. • Quick Market Intelligence
• Logic Tree
Ex.) • Spec. of anything part • Pareto Diagram
• Accuracy and reliability of billing
statements
☞ Main purpose of CTQ control is selecting
• Time to repair the factors to the most important to customer.
• Courteousness It is not hard to do, but right to do!
Common Terms
2. DPU / DPMO
6σ
Defects Per Unit : Number of defects per unit
DPU
→ Judging the process as “No good”, we could not know if it had a defect.
So 6σ handling it.
Ex) A Claim report has 10 blanks, 2 blanks are wrong

DPU= Defect / Unit = 2 / 1 = 2
Defects Per Opportunity : Number of defects related opportunities per unit

DPO
→ Expanding concept of DPU by opportunities
Ex) A Claim report has 10 blanks, 2 blanks are wrong

2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2
Defect Per Million Opportunities : Value of DPO x 1,000,000,

DPMO
→ Changing DPO to million unit because 6σ uses PPM(Part Per Million) usually
Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000

Common Terms
3. Z Value
6σ
Definition of Z Value Concept of Z Value
** value for various

◆ It is standard normalized
normal distributions* to make easy LSL USL
statistical analysis. 1σ
X -T
Z=
σ
◆
Z is ratio value that difference between
T=μ
***
X(USL or LSL) and target is divided
stadard deviation (σ). ☞ In a Process, if six standard deviations are
between spec.(USL, LSL), then we call
“6σ level” .
◆ That is numeric part of σLevel. It is good process that has 3.4ppm, that is
When Z is 6, it is 6σ level. 3 or 4 defects per million.
* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)
** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution
*** USL : Upper Spec Limit / LSL : Lower Spec Limit
Common Terms
4. Process Capability Index

6σ
◆ What is Process Capability?
As Unique capability of the process, reflects uniformity degree of producing product.
Process Capability Index

µ Τ
- When the process is stable, it should

be measured by degree of satisfying
limits.
-6σ -3σ 1σ +3σ +6σ
- Computing Cp, Cpk to know process variation
How much mean is shifted and design tolerance
variation is good.
- Cpk considers shifting mean. Design tolerance

Cp =
Process variation
- K value is deference target(T) from
mean. | T-µ |
Cpk = Cp(1-K) K=
(Upper limit-Lower limit)/2
Common Terms
6σ
5. Rolled Throughput Yield
◆ Rolled throughput yield is probability ratio to accept for all processes.
Input
Object Productivity elevation through
Process 1 : quality improvement
99% Accept ratio RTY
Control Apply Defect of all processes, Equipment
Process2 : 92% Model Change Loss
Process3 :
93% Tool 6σ
Final Process
Inspection defect
: 97% ratio Method 1person 1Project, Team activity
Control
Loss by Process Final

un-control Defect Ratio Good
Added Improvement
RTY* = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%
for hidden factory
* RTY : Rolled Throughput Yield

Understanding 6 Sigma

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Understanding 6 Sigma

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Understanding 6s (Six Sigma)

1. What are the statistics ?

1. What are the statistics ?

1. Sample & Population.

Sample Characteristic of sample

From the given example, we conclude the following:

Population : Nos of entire males of Delhi.

Thus statistics is used to predict parameter of population.

The origin of a sampling survey

1. Shake it well ☞ No bias The above example shows that

cannot be more specific.Tolerance : Infinity

continous data contains more information than discrete data. Defined

The standard error of the mean is the standard deviation divided by N

5.2 DOTPLOT OF DATA

Dotplot for rainfall

r=1 r= -1 r=0 r > 0.8 means a

Perfect positive correlationPerfect negative correlation No correlation

2. Solution of the Practical Problem

3. What is the 6σ concept ?

LSL Target USL

3. What is the 6σ concept ?

σ PPM • 1 misspelled word in all of the books

3. What is the 6σ concept ?

PPM : Parts per Million

4. 6σ as the Business Strategy

Design Guarantee for the Design completion

Identify Customer-Driven 1. Who are your customers?

• DOE • Action Workout Techniques

E/S Development P/L P.P

Measure Analysis Improvement Control

- Symptoms - Present con- - Improved - Control by

6σ - Define/ - Analysis for - Optimizing - Control by - Discrete+Continuous

* PTS : Project Tracking System

7. Compare with other tool

CTQ(Y) = F( X1, X2, X3, ... Xn )

X factor effects on CTQ(Y) has

◆ We don’t know what we don’t know.

◆ If we can’t express what we know in the form

◆ If we don’t know much about it,

◆ If we can’t control it,

◆ Our survival is dependent upon growing the business.

1. Quality & Failure Cost

1. Quality & Failure Rate

Over Rework Brand Image Down

Office Loss Over Storage

Old Belief New Belief

Quality Improves Quality Improves

The 3 σ Company The 6 σ Company

• Produces 66,807 ppm opportunities • Produces 3.4 ppm opportunities

• Relies on inspection to find defects • Relies on capable processes that don’t

• Benchmarks themselves against their • Benchmarks themselves against the best

• Believes 99% is good enough • Believes 99% is unacceptable

• Define CTQ’s internally • Define CTQ’s externally

Practical Meaning of “99% Good”

➷ 20,000 lost articles in mail per hour.

ISSUE Traditional Approach 6σ Approach

Index • %(Defect Rate) •σ

Data • Discrete Data • Discrete + Continuous Data

Target • Satisfaction for Mfg • Customer Satisfaction

Method • Experience + Job • Experience + Job +

Application • Mfg Process • Design, Mfg, Sales, SVC

¶ Pursue common goal ¶ Innovation through all Biz.

¶ Control main factors at upstream ¶ Reduce claim and rework