An Introduction to

Six Sigma
Objectives
 Understand the goals and objectives of the Six Sigma
Initiative

 Understand the overall approach of Six Sigma

 To learn the systematic approach to Six Sigma

problem solving
D before M before A before I before C

 To understand and effectively utilize the D.M.A.I.C.

tool kit

2
 A Brief History of Six Sigma
Start from Motorola’s curtain

~1979 Motorola executive named Art Sundry said, at a meeting, "The real
problem at Motorola is that our quality stinks!"

Motorola was spending 5 ~ 10 % of its annual revenue correcting poor

quality.
~1985 Bill Smith decided the traditional quality levels,
developed the new standard and created methodology and
needed cultural change name as ‘Six Sigma’.

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A Brief History of Six Sigma
Then moved to AlliedSignal (later to become Honeywell) in 1992. It was the
CEO of Allied, Larry Bossidy, who started at Allied in 1991 and implemented
it in 1992. Larry Bossidy

Jack Welch

It was Larry Bossidy who told GE Chairman Jack Welch about Six Sigma and
GE started its movement in 1995.

Thus the Motorola - AlliedSignal (Honeywell) - GE triumvirate is often stated

as the forerunners of the movement.

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A Brief History of Six Sigma
Revenue ($B) Saving ($B) Saving per year

Motorola 356.9 16.0 1.0

(1986 ~ 2001)

GE 382.1 4.4 1.1

(1996 ~ 1999)

Honeywell 72.3 1.8 0.22

(1992 ~ 2000)

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6
A Brief History of Six Sigma
Since then, hundreds of companies around the world have
adopted ‘Six Sigma’ as a way of doing business.

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By the Numbers…

8
The Cost of Poor Quality (COPQ) “Iceberg”

Tangible Cost

Intangible cost

Lost Opportunity
Hidden Factory

9
Other Cost of Poor Quality

10
Why Focus on Cost of Poor Quality?

100 Price
Profit Profit Erosion
80
Cost of Cost of
Profit
Poor Poor Quality
60 Quality COPQ COPQ
Total Cost to
40 Manufacture
and Deliver Theoretical Theoretical Theoretical
Products Costs Costs Costs
20

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Six Sigma Structure
Six Sigma
Core Team

Improvement Leader
Champion
Everybody
Finance Rep.
Master Black Belt
Black Belt
Green Belt

Six Sigma Organization

Struggling Doll Model® 12
Roles In Six Sigma Organization
Six Sigma Executive

To be a leader and owner of corporate vectored direction, include

response to the success of company.

To lead a Six Sigma culture change of company.

Project Champion
To set goals, and select Six Sigma project.

To start project for BB/GB and remove the obstacles for project
success.

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Roles In Six Sigma Organization
Black Belt

To be a Messenger
Succeed the changing in company

Prototype of Six Sigma culture in company

To be a Trainer
Train team member during project running

Provide technical knowledge for company

To be a Leader
Breakthrough improvement process.
Project implementation guideline for team member

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Roles In Six Sigma Organization
Green Belt
To assist Black Belt.

To lead non complicate project.

To be a supporter in their own area.

To be a Six Sigma change agent.

Process Owner
To give an idea for interested project, to be a starting point and
finishing point of project.

To implement the solutions derived from project, to be a meeting

point between theorem and practice.
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Roles In Six Sigma Organization
Master Black Belt
To review the project clearer and more complete.

To be a coach and trainer for Black Belt.

Finance Representative
To take care an accuracy of project saving. ?
To be a financial consultant for Champion and
others.

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 The “Sigma”

s
 Measure of variation

 Indicator of the capability of

Sigma
process.
1_01_01_016

17
Six Sigma -- Practical Meaning
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost articles of mail per Seven articles lost per hour
hour

Unsafe drinking water for almost One unsafe minute every seven
15 minutes each day months

5,000 incorrect surgical 1.7 incorrect operations per week

operations per week

Two short or long landings at One short or long landing every

most major airports each day five years

200,000 wrong drug prescriptions 68 wrong prescriptions per year

each year

No electricity for almost seven One hour without electricity every

hours each month 34 years
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Sigma Level
Sigma Level = number of standard deviations
“away” from the specifications
 A universal metric used to compare performance
across products or processes

 Derived from the probability of producing a defect

/ defective unit

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 A 3s Process
The distance between the
point of inflection and the m = Target
mean constitutes one
sigma.
If three sigma can be fit Average Deviation from the Mean
between the target value
and the specification limit,
we would say the process
has “three sigma
capability.”

1s
0.14% def

USL
Upper Specification Limit (USL)
Lower Specification Limit (LSL) 3s
Mean of the distribution (m)
Sigma (s) 20
 A 6s Process

Why do we need 6s? m

Average Deviation from Mean

In reality a 6 Sigma
process is something like
1/billion defectives
Z score = 6
1 in a billion
1s

1 2 3 4 5 6 USL
s

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Six Sigma – Defect

s PPM
2 308,537
3 66,807
4 6,210
5 233
Process
6 3.4 Defects per
Capability Million Opp.

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Short and Long Term
Short Term
Long Term

Small Standard Deviation Large Standard Deviation

How can we determine the long term capability

from short term estimates of sigma?
e.g. What is the size difference?
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Determining the Difference
Short Term
Long Term
sST
sLT

Small Standard Deviation Large Standard Deviation

Without calculating both standard deviations it

is often assumed that the Long Term
distribution is made up of the short term
distribution’s mean shifting / drifting by 1.5sST
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A Six Sigma Process
The 1.5s shift is used as an off-set in the centering of the mean to
generally account for dynamic non-random shifts in the process. It
represents the average (estimated) amount of change a typical
process will exhibit over many cycles of that process.
Process A Six Sigma
Capability Process Centered
Sigma Short-Term Long-Term
Level DPPM DPPM 0.001 0.001
ppm ppm
1 158655.3 691462.5
T
2 22750.1 308537.5 LSL USL
± 6s
3 1350.0 66807.2
4 31.7 6209.7 A Six Sigma m A Six Sigma
5 0.3 232.7 Process With SD Process Shifted
Inflated by 1.5 s by 1.5 s
6 0.0 3.4
3.4
DPPM = Defective ppm
Product Per Million T
LSL 4.5s USL
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What is Six Sigma?

6σ
Six Sigma is …
The Management System based
Breakthrough Improvement Approach

Management Tools Set for

System Breakthrough

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Six Sigma Vision
The Vision of Six Sigma is to delight customers
by delivering world-class quality products
through the achievement of Six Sigma levels of
performance in everything we do.

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Six Sigma Philosophy
The Philosophy of Six Sigma is to apply a
structured, systematic approach to achieve
breakthrough improvement across all areas of
our business.

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What’s the Six Sigma Strategy?

 Know what’s important to Customer

 Center around target

 Reduce Variation

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Six Sigma - Aggressive Goal
s PPM
2 308,537
3 66,807
4 6,210
5 233
Process
6 3.4 Defects per
Capability Million Opp.

Sigma is a statistical unit of measure that reflects

process capability. The sigma scale of measure is
perfectly correlated to such characteristics as defects-
per-unit, parts-per-million defective, and the probability
of a failure/error. 30
Where Does Industry Stand?
PPM IRS - Tax Advice

1,000,000 (phone-in) With the 1.5s shift

(140,000 PPM)

100,000
Restaurant Bills
Doctor Prescription Writing
10,000 Payroll Processing
••
OrderWrite-up
Journal Vouchers
1,000 Wire Transfers
Airline Baggage Handling
100 Purchased Material
Lot Reject Rate

10 Best-in-Class
Domestic Airline Flight
1
Average Fatality Rate
Company (0.43 PPM)

1 2 3 4 5 6 7
Sigma Scale of Measure 31
Customer Focus: A Model For Success

Quality Defect

Delivery Cycle Time

???

Voice of Customer : VOC Price Cost/Value Corporate Goals

Six Sigma emphasizes to Customer Focus

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Six Sigma as a strategic
• Corporate Goals

• Business Unit Goals

• Organizational Goals

• Functional Goals

• Team & Individual

projects

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 Six Sigma Project Category

High
Six Sigma Six Sigma
Green Belt Black Belt
Just Team Team
Impact

Do
It!
AVOID
Low

Low Medium High

Difficulty / Complexity

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 D – M – A – I – C Methodology
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Define Measure Analyze Improve Control

What is What are What is What needs How do we

important? we doing? wrong? to be done? guarantee
performance?

Determine Evaluate Identify Implement Control

Defect Standard Operations Root Causes Solutions Process

Nonconformance Process Performance Solutions Verify results Audit Plan
Opportunities Measurement System

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Narrow the Scope
Process Map
Input Variables
C&E Matrix and FMEA
30 - 50
Key Process Input
Gage R&R, Capability Measure 10 - 15 Variables (KPIVs)

Multi-Vari Studies,
Correlations KPIVs
Analyze 8 - 10
Hypoth. Tests, ANOVA

Screening DOE’s
Improve 4-8 Critical KPIVs
DOE’s, RSM

Quality Systems Key Leverage

Control 3-6 KPIVs
SPC, Control Plans

Optimized Process
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What Types of Problems Should We Target?
 High Defect Rates

 Low Yields

 Excessive Cycle Time

 Excessive Machine Down Time

 High Maintenance Costs

 Bottlenecks

 Poor Process Capability

Non-Conformance 37
The Goals of Six Sigma
Defect Reduction

Yield Improvement

Improved Customer Satisfaction

Higher Net Income

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Objectives
 Understand the goals and objectives of the Six Sigma
Initiative

 Understand the overall approach of Six Sigma

 To learn the systematic approach to Six Sigma

problem solving

D before M before A before I before C

 To understand and effectively utilize the D.M.A.I.C.

tool kit
39
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