Six Sigma Slides

Quality Systems Six Sigma
What is the Tool / Application Flow?
Walk the Process High Level Map Detail Map
Review Charter Baseline Data
(backwards) SIPOC/VSM Brown Paper
DEFINE MEASURE
Root Cause Select Improvements
Value Analysis Waste Walk Future State Map
Fishbone Brainstorm & PICK
ANALYZE IMPROVE
Risk Assessment Demonstrate
Pilot & Implement Mistake Proof Control Plans
SxOxD Improvements
IMPROVE CONTROL
Quality, 5th ed.
Donna C. S. Summers 2 2 © 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Six Sigma Roadmap (DMAIC)
Next Project Define
Customers, Value, Problem Statement Validate
Scope, Timeline, Team Project R
Celebrate
Primary/Secondary & OpEx Metrics
Project
Current Value Stream Map
R Measure
Voice Of Customer (QFD)
Control Assess specification / Demand
Document process (WIs, Std Work) Measurement Capability (Gage R&R)
Mistake proof, TT sheet, CI List Correct the measurement system
Analyze change in metrics Process map, Spaghetti, Time obs.
Value Stream Review Measure OVs & IVs / Queues
Prepare final report
Validate
Project R
Validate
Project R
Improve Analyze (and fix the obvious)

Optimize KPOVs & test the KPIVs Root Cause (Pareto, C&E, brainstorm)
Redesign process, set pacemaker Find all KPOVs & KPIVs
Validate
5S, Cell design, MRS FMEA, DOE, critical Xs, VA/NVA
Project R
Visual controls Graphical Analysis, ANOVA
Value Stream Plan Future Value Stream Map
Quality, 5th ed. © 2010 Pearson Higher Education,
Donna C. S. Summers 4 Upper Saddle River, NJ 07458. • All Rights Reserved.
Quality Systems: Six Sigma
 Bill Smith, Reliability Engineer,
Motorola Corporation
 The increasing complexity of systems and
products used by consumers created higher
than desired system failure rates.
 Holistic approach to reliability and quality
and developed a strategy for improving
both (1988).
 Six Sigma is a structured, data driven
methodology for eliminating waste from
processes, products, and other business
activities while having a positive impact on
financial performance.
Six Sigma Process Improvement in a
Nutshell
 Six Sigma Process Improvement is a rigorous
approach to improving business processes by
addressing the underlying causes of variation that
lead to poor performance as experienced by the
‘customer’, who is the recipient of the outputs.
The early exponents were Motorola and GE in the
1980s. Since then, many organisations ranging
from manufacturing to service in all sectors, have
successfully deployed Six Sigma to deliver
measurable cost, quality and time based
improvements.
 Six Sigma Perceptions
 Perceived to be a business system that improves
the bottom line.
 Perceived as fitting naturally into the business
systems of most companies.
 Perceived as being more easily and more
successfully launched than traditional Total
Quality Management programs.
 TQM perceived as technical system owned by technical
specialists.
Six Sigma Quality Systems
Highly focused problem Highly focused problem
solving system solving system
DMAIC PDSA
Focus on profits Focus on improving
organizational performance
including profit
Tools include SPC, DOE, FMEA Tools include SPC, DOE, FMEA,
Project management, capability studies, benchmarking,
Benchmarking. Theory of constraints
3.4 defects/million Process capability
Focus on metrics Measures of Performance
 Benefits of adopting the Six Sigma
methodology
 Enhanced ability to provide value to customer
 Enhanced understanding of key business processes
 Reduction of waste
 Improved profit performance
 Six Sigma Methodology focuses on:
 Customer knowledge
 Critical to Quality information
 Core processes
 Key business processes that deliver value directly to the
customer
 Accurate performance measures of both
 Six Sigma Methodology is based on:
 Statistical Process Control Techniques
 Data Analysis Methods
 Project Management Techniques
 Systematic Training of Participants
 Six Sigma is data driven and profit
focused.
 The goal of Six Sigma is to reach 3.4
defects per million opportunities over the
long term.
 Six Sigma seeks to reduce the variability
present in processes.
Sigma Defects per million opportunities Yield
1 690,000 30.90%
2 308,000 69.20%
3 66,800 93.30%
4 6,210 99.40%
5 320 99.98%
6 3.4 99.9997%
A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part
are statistically expected to be free of defects (3.4 defective features per million opportunities).
Six Sigma as a Metric
D
 2
RE

 ( xi  x )
SO
 =
n 1
N
Sigma =  = Deviation
CE
( Square root of variance )
Axis graduated in Sigma

-5
-2
-1
-7
-6
-4
-3
1
2
3
5
6
7
0
4
between + / - 1 68.27 % result: 317300 ppm outside (deviation)
between + / - 2 95.45 % 45500 ppm
between + / - 3 99.73 % 2700 ppm
between + / - 4 99.9937 % 63 ppm
between + / - 5 99.999943 % 0.57 ppm
between + / - 6 99.9999998 % 0.002 ppm
 An improvement of just 1 sigma can result in a
tenfold reduction in the number of defects
 At three sigma, 66,800 defects per million costing
R10/piece to fix = R668,000
 At four sigma, 6,210 defects per million costing
R10/piece to fix = R62,100
 Six Sigma projects are selected based on
their ability to contribute to and enhance an
organization’s financial performance.
 Six Sigma projects seek out sources of
waste (overtime, warranty claims,
production backlogs, customer issues).
 Six Sigma projects have five phases:
 Define
 Measure
 Analyze
 Improve
 Control
(note similarity to PDSA)
 Define
 Identify the problem/project
 Define the requirements
 Establish the goals to be achieved
 Measure
 Gather information about the current process
 Define and measure key process steps and inputs
 Refine the problem statement and goals
 Analyze
 Identify potential root causes of the problem
 Validate the cause and effect relationship
 Identify the vital few root causes
 Improve
 Implement solution to address root causes of
problem
 Test solutions
 Measure results
 Control
 Evaluate and monitor improvements
 Make adjustments as needed
 Establish standard procedures
 Eight essential tools of Six Sigma Methodology
 Used within DMAIC process
 Process Maps
 Cause and Effect Diagrams
 Failure Modes and Effects Analysis
 Measurement System Analysis
 Process Capability Studies
 Multivariate studies
 Design of Experiments
 Process Control Plans
USAGE OF SIX SIGMA
Quality, 5th ed.
Donna C. S. Summers 25
25 © 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
2: Methods of Six Sigma
Six Sigma uses a special role model with

popular certifications:
Six Sigma Champions: Six Sigma Master Black
Project sponsors
Project sponsors Belts:
and mentors
and mentors Fulltime program managers,
PMO heads and educators
Six Sigma Green Belts:
Part time project coordinators and
Six Sigma Black Belts:
assistants
Fulltime project
managers (training, complete a cost
savings project)
Black Belt Training
Time on
Consulting/ Mentoring Related
Task
Projects
Training
Green Utilize Statistical/

Find one
Quality technique
Belt 2%~5% new green
belt
2 / year
Lead use of
technique and
communicate new
Black ones 5%~10%
Two green
4 / year
Belt belts
Master Consulting/
Five Black
Black Mentoring/ 80~100%
Belts
10 / year
Belt Training
 Six Sigma Project Participants
 Green Belts
 training
 complete a costsavings project (R50,000+)
 Black Belts
 training (more advanced)
 complete costsavings projects (R500,000+)
 Master Black Belts
 extensive training
 complete costsavings projects (R5,000,000+)
 In order to successfully adopt the Six Sigma
methodology, an organization must have:
 Visible management commitment
 Visible management involvement
 Clear definition of customer requirements
 Understanding of key business processes
 Sound measures of performance
 Discipline
 Rewards
 Who is doing it?
 Motorola
 G.E.
 DuPont
 Ford
 AlliedSignal
 Texas Instruments
 Honeywell
 Six Sigma for the smaller company
 Six Sigma Methodology is scaleable.
 Ideas and concepts are viable regardless of size or type
of industry.
 Six Sigma Methodology requires participation and
training of Black Belts
 Timeconsuming (412 months)
 Expensive (R1015K)
 A point to consider:
 Six Sigma focuses on defects while other quality
improvement methodologies emphasize non
conformances.
 A subtle, yet important distinction, especially in the legal
sense.
 Another point to consider:
 When the organization say no more improvement is
possible.
 Remember Six Sigma has a two pronged approach:
 Fix the existing problems
 Design Six Sigma into processes, products and services.
 Six Sigma is about results
 Enhancing profitability through improved
quality and efficiency.

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Improve Analyze (and fix the obvious)

Axis graduated in Sigma

between + / - 2 95.45 % 45500 ppm

between + / - 3 99.73 % 2700 ppm

between + / - 4 99.9937 % 63 ppm

between + / - 5 99.999943 % 0.57 ppm

between + / - 6 99.9999998 % 0.002 ppm

Six Sigma uses a special role model with

Green Utilize Statistical/

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