Lean Six Sigma

A journey to excellence

Six Sigma Intro

Lets get started!

What is Six Sigma (

)?

Six Sigma is a total management commitment and philosophy of excellence.

The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible.

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Is Six Sigma another fad ?

No, the record shows that its been a huge success in many organizations. 4
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Motorola saves $16 billion in 15 years*

we will share Six Sigma with the world, and it will come back to us with new ideas and new perspectives.
Bob Galvin, Board Member, Motorola For Which We Stand. A Statement of Purpose; Objectives and Ethics. May, 1986

* As of 2001

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GE saves $4.4 billion in 4 years*

Six Sigma has spread like wildfire across the company and its transforming everything we do.
Jack Welch, CEO, GE Business Week special report June 8, 1998

* As of 1999

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Why use Six Sigma ?

Decisions based on facts and data rather than opinion.
Reduces the dependency on Tribal Knowledge.

Attacks the high-hanging fruit the hard stuff.

Eliminates chronic problems a common cause of variation. Improves customer satisfaction.

Changes the company culture.

Provides a disciplined approach to problem solving.

Creates a competitive advantage.

Improves profits!
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Process Variation
The higher the sigma score, the better the process.
Sigma Level (Z) 1 2 3 4 5 6 Defects per Million Opportuniti es (DPMO) 691,462 308,538 66,807 6,210 233 3.4 Percent Defects (%) 69 31 6.7 0.62 0.023 0.00034 Percent Success (Yield %) 31 69 93.3 99.38 99.977 99.99966 Capability (CP) 0.33 0.67 1.00 1.33 1.67 2.00

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L CL

Tolerance

U CL Poor process: 66,807 defects per million opportunities.

66,807 ppm

66,807 ppm

Target =

3s

3s

Six Sigma Targets Variation

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Tolerance
LSL USL
Process with almost no defects: 3.4 defects per million opportunities.
3.4 ppm 3.4 ppm

Target =

6s

6s

Less Variation, Less Defects

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LSL

Mean

USL

Z=6 Z=5 Z=4 Z=3

Less Variation, Better Yield

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Z=2

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Inspection vs. a Capable Process

Process Capability Analysis for Supplier 1
Lower Spec Upper Spec

Process Capability Analysis for Supplier 2

Lower Spec Upper Spec

124.92 Long-Term Capability Pp PPU PPL Ppk Cpm 0.63 0.62 0.65 0.62 * Targ USL LSL k n

124.94

124.96

124.98

125.00

125.02

125.04

125.06

125.08

124.96 Long-Term Capability

124.98

125.00

125.02

125.04

* 125.050 124.950 0.029 782.000

Mean Mean+3s Mean-3s s

125.001 125.080 124.923 0.026

%>USL Exp Obs %<LSL Exp Obs

3.23 0.00 2.50 0.00

PPM>USL Exp 32255 Obs Obs 0 0 PPM<LSL Exp 24969

Pp PPU PPL Ppk Cpm

1.62 1.62 1.63 1.62 *

Targ USL LSL k n

* 125.05 124.95 0.00 1000.00

Mean Mean+3s Mean-3s s

125.000 125.031 124.969 0.010

%>USL Exp Obs %<LSL Exp Obs

0.00 0.00 0.00 0.00

PPM>USL Exp Obs PPM<LSL Exp Obs

1 0 1 0

100 % Yield due to 100 % Inspection

100 % Yield due to a capable Process

Which Supplier would you select ?

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What causes variation in your trip home ?

Stop Signs. School bus. Red lights. People in crosswalks. The gas tanker truck that crashed into the bridge.

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Six Sigmas main elements

Customer focus is a top priority. SS is always data driven. Understanding processes is the key to success. Management is proactive looking for new ways. Collaboration has no boundaries. Overachievement demands failure tolerance. 14
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Process Capability
It depends on the process
We must be able to measure its key input and output variables.

But also on the customer

We must also know the customers requirements, or tolerances.

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Tolerance
The capability of a process or how good it is depends on how well it meets the customers specific requirements (CTQs), and their Tolerance limits. E.g.
Customer service wait time: less than 5 minutes. Pizza delivery time: within 30 minutes. Diameter of a shaft: 2.5 0.0001 inches.

A greater tolerance is less costly. Does the customer really need the specified level of tolerance? Why does he require this tolerance? Could his customers live with a lesser tolerance?

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Measurement challenges
What should be measured? KPIV and KPOV ? Who will measure? How often? With what precision? Min 10 readings within tolerance. Whats the Gage error? Max 30% of tolerance. How big a sample of data? Min 30 for var. data. Hawthorne effect? Cheating the system? 17
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Cpk Process Capability

= UCL LCL 6s = Upper Control Limit of Tolerance. = Lower Control Limit of Tolerance. =

s sample sigma (for n > 25 sample). s / c4 (for n <= 25 sample).

Cpk Cpk

=1 =2

for s=3 for s=6

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The DMAIC Roadmap

Define
Redesign ?

Find a meaningful problem. Specify baseline Y performance.

Analyze
Improve

Find root causes Xs of the problem.

Implement new improved solution.

Control

Assure new Y performance.

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Improve

Measure

The To Do List
Find a meaningful problem.

Specify baseline Y performance.

Find root causes Xs of the problem.

Implement new improved solution.

Assure new Y performance.

Define
Review project Charter. Validate problem statement and goals. Validate Voice of the Customer. Validate financial Benefits. Validate high-level Value Stream Map and scope. Create communication plan. Select team roster. Develop project Schedule.

Measure
Draw Value Stream Map for deeper understanding & focus. Identify key input, process, & output metrics. Develop Field Guide for measurement taking procedures. Develop data collection plan. Validate Measurement System. Collect baseline Data. Determine baseline process capability.

Analyze
Determine critical Inputs. Identify potential root causes. Reduce list of potential root causes. Confirm root cause Effect on output. Estimate impact of root causes on key outputs. Prioritize root causes.

Improve
Develop potential Solutions. Evaluate, select, and optimize Best solutions. Develop Future Value Stream Map. Develop and implement pilot Solution. Confirm attainment of project goals. Develop full-scale Implementation Plan. Implement mistake Proofing.

Control
Develop SOPs, training plan, and process controls. Implement solution and ongoing Process measurements. Identify opportunities to apply project Lessons. Transfer Monitoring control to process Owner. Close Project.

Source: The Six Sigma Pocket Toolbox

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