1

2
Scope of Module
Scope of Module
z A Brief of History
z What is Six Sigma?
z What makes Six Sigma Different?
z Why the Need for Six Sigma?
z How to Apply Six Sigma?
z The 5 Phases of Six Sigma
z The Road Map of Six Sigma
z Whos Who in Six Sigma?
3
z 1981 : started at Motorola by Bob Galvin
z 1985 : Six Sigma term 1st applied (Motorola)
z 1989 : Group of Companies participating in Six
Sigma Research Institute Development
z 1993 : started deployment in ABB
z 1993 : started deployment in Texas Instrument
z 1994 : started deployment in Allied Signal
z 1995 : started deployment in GE
z ~ : Nokia(?),Sony(1999),
Toshiba(1999),Ford(1999)
Brief of History
Brief of History
4
Typical Normal Curve
Typical Normal Curve
5
Normal Curve (Historical)
Normal Curve (Historical)
6
1.5 Sigma Shift at 3
1.5 Sigma Shift at 3
7
Normal Curve (Historical)
Normal Curve (Historical)
8
Normal Curve 6
Normal Curve 6
9
1.5 Sigma Shift at 6
1.5 Sigma Shift at 6
10
Process Capability is the inherent reproducibility of a
processs output. It measures how well the process is
currently behaving with respect to the output
specifications. It refers to the uniformity of the
process.
Capability is often thought of in terms of the proportion
of output that will be within product specification
tolerances. The frequency of defectives produced may
be measured in
a) percentage (%)
b) parts per million (ppm)
c) parts per billion (ppb)
Process Capability
Process Capability
11
Historically, a C
p
of 1.0 has indicated that a process is
judged to be capable, i.e. if the process is centered
within its engineering tolerance, 0.27% of parts produced
will be beyond specification limits.
C
p
Reject Rate
1.00 0.270 % (2,700 DPPM)
1.33 0.007 % (70 DPPM)
1.50 6.8 ppm
2.00 2.0 ppb
Process Potential
Process Potential
12
Short-Term Capability shows the inherent variability of a
machine or process operating within a brief period of time.
One operator One line One material lot
One supplier One measurement instrument
Long-Term Capability shows the variability of a machine or
process operating over a period of time. It includes sources of
variation in addition to the short-term variability.
Multiple operators Multiple measurement instruments
Multiple lines Multiple lots from different suppliers
ST vs. LT Capability
ST vs. LT Capability
13
Short-Term Long-Term
Sample Size 30 50 units 100 units
Number of Lots single lot several lots
Period of Time hours or days weeks or months
Number of Ops. single operator different operators
Process Potential C
p
P
p
Process Performance C
pk
P
pk
ST vs. LT Capability
ST vs. LT Capability
Cp - Measure of precision using short-term SD
Cpk - Measure of accuracy and precision using
short-term SD
Pp - Measure of precision using long-term SD
Ppk - Measure of accuracy and precision using
long-term SD
Common Capability Measures
Common Capability Measures
LSL
Process Width
Design Tolerance
USL
T
+ 3 - 3
Short - Term Capability Indices Long - Term Capability Indices
term short
p
s
LSL USL
C

=
* 6
term short
USL pk
s
X USL
C

=
* 3
) (
) (
term long
USL pk
s
X USL
P

=
* 3
) (
) (
term long
p
s
LSL USL
P

=
* 6
term short
LSL pk
s
LSL X
C

=
* 3
) (
) (
term long
LSL pk
s
LSL X
P

=
* 3
) (
) (
) , ( min
) ( ) ( LSL pk USL pk pk
C C C =
) , ( min
) ( ) ( LSL pk USL pk pk
P P P =
Cp/
Cp/
Cpk
Cpk
vs. Pp/
vs. Pp/
Ppk
Ppk
Formula
Formula
16
What is Six Sigma?
What is Six Sigma?
1.
1.
Six Sigma is a business strategy.
Six Sigma is a business strategy.
2.
2.
Six Sigma is a problem solving / prevention
Six Sigma is a problem solving / prevention
system.
system.
3.
3.
Six Sigma is a statistical term.
Six Sigma is a statistical term.
A comprehensive and flexible Methodology Methodology aimed at
breakthrough breakthrough improvement to . . .
ACHIEVE ACHIEVE
MAXIMIZE MAXIMIZE
SUSTAIN SUSTAIN
. . . business success business success
17
1. Six Sigma as a Business Strategy
1. Six Sigma as a Business Strategy
z The goal of the Six Sigma
Business Strategy is to make
fewer mistakes
fewer mistakes in every
aspect of our business,
from manufacturing to
delivery,
from paying suppliers to
invoicing customers,
from hiring to performance
appraisals,
from taking a phone call to
setting a travel itinerary
z z
any where there is a process
any where there is a process.
Defect Reduction Defect Reduction
Performance Performance
Improvement Improvement
Improved Customer Improved Customer
Satisfaction Satisfaction
Higher Net Income Higher Net Income
18
2. Six Sigma as a Problem Solving System
2. Six Sigma as a Problem Solving System
What If you could. . .? What If you could. . .?
What If you could. . .?
z Select One of Your Most Highly
Leveraged Problems
z Identify and deploy dedicated
resources.
z Provide That Person With All of
the Training, Tools, and
Resources They Need to Fix It
z Guarantee Them Uninterrupted
Time and Focus to Work on It
z Get a Well Thought Out, Data
Driven Solution?
19
z Use Customer Requirements
Throughout the Design and
Development Process...
z Proactively Solve Business
Problems for Customers
z Achieve the Industrys Lowest
Costs Through Superior Product
and Process Designs...
z Provide the Customer With
Superior Reliability Through
Superior Product Operating
Margin?
What If you could. . .? What If you could. . .?
What If you could. . .?
2. Six Sigma as a Problem Solving System
2. Six Sigma as a Problem Solving System
20
z Really Understand What Your
Customers Want...
z Clearly Understand and Optimize
the Key Processes to Deliver What
They Want ...
z Raise the Problem Solving and
Prevention Skills of All Your
Employees...
z Provide a Common Language, Tool
Kit and Methodology With Which to
Attack Your Problems
z Have Everyone Pulling in the Same
Direction?
What If you could. . .? What If you could. . .?
What If you could. . .?
2. Six Sigma as a Problem Solving System
2. Six Sigma as a Problem Solving System
21
3. Six Sigma as a Statistical Term
3. Six Sigma as a Statistical Term
2 308,537
3 66,807
4 6,210
5 233
6 3.4

PPM
PPM
Z
score
Z
score
Process
Capability
z Six Sigma is a statistical term used to denote the quality of a process.
z Six Sigma processes operate at better than 3.4 defects per million
opportunities.
z Many industrial products and processes perform in the 3-4 Sigma range
z Six Sigma represents a break-through goal for most organizations.
22
What Is Six Sigma?
What Is Six Sigma?
z It is a business process that allows companies to
drastically improve their bottom line by
designing and monitoring everyday business
activities in ways that minimize waste and
resources while increasing customer satisfaction.
z Mikel Harry, Richard Schroeder
z Six Sigma (Currency, 2000)
23
What Is Six Sigma?
What Is Six Sigma?
z Six Sigma is a comprehensive and flexible system for
achieving, sustaining and maximizing business success. It is
uniquely driven by close understanding of customer needs,
disciplined use of facts, data and statistical analysis, with
diligent attention to managing, improving and reinventing
business processes.
z Peter S Pande, Robert P Neuman, Roland R Cavanagh
z The Six Sigma Way (McGraw Hill, 2000)
Whats Six Sigma Based On ?
Whats Six Sigma Based On ?
Customer .....
Anyone Who Receives
Product, Service, or Information
Opportunity .....
Every Chance to Do Something
Either Right or Wrong
Successes Vs. Defects .....
Every Result of an Opportunity Either Meets
the Customer Specification or it Doesnt
25
Six Sigma
Six Sigma

A Business Strategy
A Business Strategy
Improved Sigma-Rating of Process
Improved Product or Process Quality
Reduced Cost of Operations
Greater Customer Satisfaction
26
Six Sigma
Six Sigma

A Philosophy
A Philosophy
z Six Sigma is about working smarter, not harder.
z Discover and neutralize harmful sources of
variation
Mistakes are reduced (or eliminated)
Improved process capability
Sigma rating goes up
27
zTo deal with a world of declining product prices
zTo compete successfully with the best companies
in the world
zTo establish standard language and approaches
across functions and across businesses
zTo develop the next generation of leaders
To increase our rate of quality and productivity
improvement faster than our competitors
Why Implement Six Sigma Now?
Why Implement Six Sigma Now?
28
Why Implement Six Sigma Now?
Why Implement Six Sigma Now?
z Nothing New
Most of the tools have been around for decades
Neglected due to difficulty and discipline
BUT
z Worldwide competition
Makes neglect dangerous
z Computing resources
Makes application possible
29
99% Good is Not Good Enough
99% Good is Not Good Enough
z 5,000 incorrect surgical
procedures each week
z 20,000 lost articles of mail
each hour
z No electricity for almost 7
hours each month
z Unsafe drinking water for
almost 15 minutes each day
30
Where Does Industry Stand?
Where Does Industry Stand?
7
Sigma Scale of Measure
1,000,000
100,000
10,000
1,000
100
10
1
PPM

Restaurant Bills
Doctor Prescription Writing
Payroll Processing
OrderWrite-up
Journal Vouchers
Wire Transfers
Airline Baggage Handling
Purchased Material
Lot Reject Rate
Domestic Airline Flight
Fatality Rate
(0.43 PPM)
Best-in-Class
Average
Company
3 4 5 6 2 1
IRS - Tax Advice
(phone-in)
(140,000 PPM)
With the 1.5 shift
31
Why the Need for Six Sigma?
Why the Need for Six Sigma?
z The goal of Six Sigma is not to achieve six
sigma levels of quality (i.e. 3.4 dpmo).
Six Sigma is about improving profitability;
improved quality and efficiency are immediate by-
products.
32
z Lower Defects.....Scrap, Inventory, Warranty
z Lower Cycle Time....Time to Market, Higher
Gross Margin, Reduced
Inventories
z Higher Productivity..Less Capital & Labor
z Customer Satisfaction.Higher Revenue & Market
Share
z Efficient Business PracticesGrowth through Higher
Productivity, Lower Cost,
Better Responsiveness
What are the Benefits?
What are the Benefits?
Supplier participation
A common language and metrics for quality
33
Benefits of Six Sigma
Benefits of Six Sigma
zCost reduction
zProductivity improvement
zMarket-share growth
zCustomer retention
zCycle-time reduction
zDefect reduction
zCulture change
zProduct/service development
34
How Does Six Sigma Make the Difference?
How Does Six Sigma Make the Difference?
1. Vision
2. Philosophy
3. Aggressive goal
Breakthrough improvement
4. Metrics Driven
5. Focus
Customer focus
Problem focus
Process focus
6. Method
35
1. Six Sigma Vision
1. Six Sigma Vision
The Vision of Six Sigma
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.
36
2. Six Sigma Philosophy
2. Six Sigma Philosophy
The Philosophy of Six Sigma
The Philosophy of Six Sigma is to apply a
structured, systematic approach to achieve
breakthrough improvement across all areas
of our business.
37
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.
2 308,537
3 66,807
4 6,210
5 233
6 3.4

PPM
PPM
Process
Capability
Process
Capability
Defects per
Million Opp.
3. Six Sigma
3. Six Sigma
-
-
Aggressive Goal
Aggressive Goal
38
Breakthrough Strategy
Breakthrough Strategy
Six Sigma - Six Sigma Enables Breakthrough Level
Improvement!
1 2 3 4 5
The problem with continuous improvements as the only goal,
Organization sees improvement BUT loses the game.
Time in Years
Standard Approaches
Current Tools
Kaizen
Lean Manufacturing
Re-engineering
Typical TQM
I
m
p
r
o
v
e
m
e
n
t
Breakthrough Strategy
- Trained & Dedicated
Individuals
- Analytical Expertise
- >70% Improvement per
Project
Six Sigma
39
Quality Breakthrough
Quality Breakthrough
Time
R
e
j
e
c
t

R
a
t
e
Historical Level (
0
)
Natural Variation under
0
(3
0
)
Special Variation
Optimum Level (
1
)
Natural Variation under
1
(3
1
)
40
How Does Six Sigma Make the Difference?
How Does Six Sigma Make the Difference?
1. Vision
2. Philosophy
3. Aggressive goal
Breakthrough improvement
4. Metrics Driven
5. Focus
Customer focus
Problem focus
Process focus
6. Method
Measure of variation
Indicator of the
capability of our
processes and quality of
our products
4. Metric Driven
4. Metric Driven
-
-
The Sigma
The Sigma
1
_
0
1
_
0
1
_
0
1
6
Sigma
A 3
A 3

Process
Process
= Target
= Target
Average Deviation from the Mean
1
1
USL
USL
0.14% def
Upper Specification Limit (USL)
Lower Specification Limit (LSL)
Mean of the distribution ()
Sigma ()
Upper Specification Limit (USL)
Lower Specification Limit (LSL)
Mean of the distribution ()
Sigma ()
3
The distance between the
point of inflection and the
mean constitutes one
sigma.
If three sigma can be fit
between the target value
and the specification limit,
we would say the process
has three sigma
capability.
The distance between the
point of inflection and the
mean constitutes one
sigma.
If three sigma can be fit
between the target value
and the specification limit,
we would say the process
has three sigma
capability.
Average Deviation from Mean
1
1
USL
1 in a billion
1 2 3 4 5 6

A 6
A 6

Process
Process
Why do we need 6?
Z score = 6
In reality a 6 Sigma
process is something like
1/billion defectives
The z-score or - Level of the process is based on Short Term
data but our process exhibits long term variability due to
shifts and drifts

Long Term
Short Term
Small Standard Deviation Small Standard Deviation
Large Standard Deviation
Large Standard Deviation
How can we determine the long term capability
How can we determine the long term capability
from short term estimates of sigma?
from short term estimates of sigma?
e.g. What is the size difference?
e.g. What is the size difference?
Short and Long Term
Short and Long Term
Determining the Difference
Determining the Difference
Without calculating both standard deviations it
is often assumed that the Long Term
distribution is made up of the short term
distributions mean shifting / drifting by 1.5
ST
Long Term
Short Term
Small Standard Deviation Small Standard Deviation
Large Standard Deviation
Large Standard Deviation

ST ST

LT LT
A Six Sigma Process
A Six Sigma Process
The 1.5 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.
Sigma
Level
Short-Term
DPPM
Long-Term
DPPM
1 158655.3 691462.5
2 22750.1 308537.5
3 1350.0 66807.2
4 31.7 6209.7
5 0.3 232.7
6 0.0 3.4
3.4
ppm
LSL USL 4.5
T

A Six Sigma
Process Shifted
by 1.5
LSL
6
0.001
ppm
USL
Process
Capability
A Six Sigma
Process Centered
T
0.001
ppm
A Six Sigma
Process With SD
Inflated by 1.5
DPPM = Defective
Product Per Million
47
Six Sigma
Six Sigma
--
--
Practical Meaning
Practical Meaning
99.99966% Good (6 Sigma)
20,000 lost articles of mail per
hour
Unsafe drinking water for almost
15 minutes each day
5,000 incorrect surgical
operations per week
Two short or long landings at
most major airports each day
200,000 wrong drug prescriptions
each year
No electricity for almost seven
hours each month
Seven articles lost per hour
One unsafe minute every seven
months
1.7 incorrect operations per week
One short or long landing every
five years
68 wrong prescriptions per year
One hour without electricity every
34 years
99% Good (3.8 Sigma)
48
How Does Six Sigma Make the Difference?
How Does Six Sigma Make the Difference?
1. Vision
2. Philosophy
3. Aggressive goal
Breakthrough improvement
4. Metrics Driven
5. Focus
Customer focus
Problem focus
Process focus
6. Method
49
Customer Focus: A Model For Success
Customer Focus: A Model For Success
Technology
Technology
Capability
Capability
Organization
Organization
People
People
Processes
Processes
Business survival is dependent upon how
well we satisfy our customers.
Customer satisfaction is a function of
quality, price, and delivery.
Quality, cost, and prompt delivery are
dependent upon capability.
50
Customer Focus
Customer Focus

Critical To Concept
Critical To Concept
PROCESS
KPOV KPOV
KPIV KPIV KPIV
CTx
(CTQ)
KPOV
Process Output
(Measurable)
Process Inputs
which affect
Outputs
KPIV
What is critical to the customer?
What is critical to the customer?
Each project should be strategically
linked and address at least one of three
critical to areas:
Quality Quality
Cost Cost
Delivery Delivery
51
Dedicated problem solvers, among the companys
best people
Complete, disciplined data-based approach to
problem solution
Combines the right people with the right tools on
the right projects
Hard financial analysis on project selection and
assessment
Focus on the Problem: Unique Approach
Focus on the Problem: Unique Approach
52
What Types of Problems Should We Target?
What Types of Problems Should We Target?
z High Defect Rates
z Low Yields
z Excessive Cycle Time
z Excessive Machine Down Time
z High Maintenance Costs
z Bottlenecks
z Poor Process Capability
Non-Conformance
53
The Cost of Poor Quality (COPQ) Iceberg
The Cost of Poor Quality (COPQ) Iceberg
Traditional Quality Costs
Lost Opportunity
Hidden Factory
Lost sales
Late delivery
More Setups
Expediting costs
Excess inventory
Long cycle times
Lost Customer Loyalty
Engineering change orders
Additional Costs of Poor Quality
(intangible)
(tangible)
(Difficult or impossible
to measure)
Scrap
Rework
Inspection
Warranty
Rejects
Administration /
Disposition
Concessions
54
What is Cost of Poor Quality?
What is Cost of Poor Quality?
z In addition to the direct costs associated with finding and fixing defects,
Cost of Poor Quality also includes:
The hidden cost of failing to meet customer expectations the first time
The hidden opportunity for increased efficiency
The hidden potential for higher profits
The hidden loss in market share
The hidden increase in production cycle time
The hidden labor associated with ordering replacement material
The hidden costs associated with disposing of defects
The hidden cost of rework
z For most companies today, the cost of poor quality is likely to be 25 % of
sales.
55
Why Focus on Cost of Poor Quality?
Why Focus on Cost of Poor Quality?
Profit
Total Cost to
manufacture
and deliver
products
Profit
Cost of
Poor Quality
COPQ
Theoretical
Costs
Profit
COPQ
Theoretical
Costs
Which Feels Better??
Cost of
Poor Quality
COPQ
Theoretical
Costs
Price Erosion
56
Classical Yield
Classical Yield
Factory A
100 85
Factory B
100 85
Not all Yields are alike!
Not all Yields are alike!
15
Scrap
15 Scrap
Rework
Factory C: The Hidden Factory
50 35
57
Classical Yield
Classical Yield
Factory A
100 85
15
Scrap
Factory B
100 85
15 Scrap
Not all Yields are alike!
Not all Yields are alike!
50 35
Equal Yields Unequal Costs
Classical Yield does not correlate to cost,
cycle time or inventory levels
Equal Yields Unequal Costs
Classical Yield does not correlate to cost,
cycle time or inventory levels
58
The Focus of Six Sigma
The Focus of Six Sigma

KPIVs
KPIVs
&
&
KPOVs
KPOVs
If we can
If we can
1.
1.
Establish a
Establish a
relationship
relationship
between inputs and
between inputs and
outputs, and
outputs, and
2.
2.
We can
We can
control
control
the inputs, then
the inputs, then
3.
3.
We can
We can
predict
predict
the outputs!
the outputs!
59
The Focus on the Process
The Focus on the Process
If we are so good at X, why do we constantly test and inspect Y?
Y
Dependent
Output
Effect
Symptom
Monitor
X1 . . . XN
Independent
Input-Process
Cause
Problem
Control
To get results, should we focus our behavior on the Y or X?
f (X)
f (X)
Y=
Y=
Focus on X rather than Y, as done historically
Focus on X rather than Y, as done historically
KPIV
KPOV
*
60
What To Do With the Vital Few. . . . .
What To Do With the Vital Few. . . . .
Process
KPIV
KPIV
KPIV
KPOV
CTQ
Vital Few
Correct
(In-Spec)
Defect-
Free!
KPIV
Control Control Control
Control Control Control
-
-
Inputs
Inputs
Note: Statistically proven relationships
between Inputs and Outputs
Manage the INPUTS and good OUTPUTS will follow Manage the INPUTS and good OUTPUTS will follow
61
How Does Six Sigma Make the Difference?
How Does Six Sigma Make the Difference?
1. Vision
2. Philosophy
3. Aggressive goal
Breakthrough improvement
4. Metrics Driven
5. Focus
Customer focus
Problem focus
Process focus
6. Method
62
The Foundation of the Six Sigma Tools
The Foundation of the Six Sigma Tools
Data
Data
Driven Analysis
Driven Analysis
1. We only use experience, not data
2. We collect data, but just look at the numbers
3. We group the data so as to form charts and graphs
4. We use census data with descriptive statistics
5. We use sample data with descriptive statistics
6. We use sample data with inferential statistics
Levels of Analysis:
What level are you at?
What level are you at?
Goal

Data is used to classify, describe, improve, control

Data is used to classify, describe, improve, control
63
The Improvement Strategy (MAIC)
The Improvement Strategy (MAIC)
Focus__
Vital Fewx
i
Y
Y
Y
Y
Y
Vital Fewx
i
Vital Fewx
i
Vital Fewx
i
Vital Fewx
i
SIX SIGMA METHODS GENERATE DATA-BASED DECISIONS
*
Select product or process key characteristic(s); e.g. Customer Y
Define performance standards for Y
Validate measurement system for Y
Establish process capability of creating Y
Define improvement objectives for Y
Identify variation sources in Y
Screen potential causes for change in Y & identify vital few X
i
Discover variable relationships between vital few X
i
Establish operating tolerances on vital few X
i
Validate measurement system for vital few X
i
Determine ability to control vital few X
i
Implement process control system on vital few X
i
X
1
, X
2
, X
n
X
1
, X
2
, X
n
Phase
Measure
Analyse
Improve
Control
64
Narrow the Scope
Narrow the Scope
--
--
> ID Leveraged KPIVs
> ID Leveraged KPIVs
Optimized Process
30 - 50
10 - 15
4-8
Key Process Input
Variables (KPIVs)
8 - 10
KPIVs
Critical KPIVs
3-6
Key Leverage
KPIVs
Input Variables
Process Map
Multi-Vari Studies,
Correlations
Screening DOEs
DOEs, RSM
C&E Matrix and FMEA
Gage R&R, Capability
Hypoth. Tests, ANOVA
Quality Systems
SPC, Control Plans
Measure
Analyze
Improve
Control
65
The Six Sigma Approach
The Six Sigma Approach
-
-
DMAIC Strategy?
DMAIC Strategy?
z Know whats important to the
Customer (CTQs)
z Reduce defects
z Center around target
z Reduce Variation
66
Six Sigma System
Six Sigma System
-
-
How Does It Work?
How Does It Work?
1. Measure - What is the Frequency and Accuracy?
2. Analyze - When & Where Does the Problem Occur?
3. Improve - How Can We Fix the Problem/Process?
4. Control - How Can We Make the Process Stay Fixed?
Y = f (X)
Champions
Master BBs
Blackbelts
Strong
Analytical Skills
Strong Problem
Solving Skills
People &
Leadership Skills
Critical to
Success
Fastest or
Largest Return
Lead Focused
Effort
Apply Skills and
Tools
Determine
Causes and
Solutions
Improve Drivers
Select Capable
People
Specific Skill Set
Training
Select Key
Problematic Areas
Assign Project to
Blackbelts
Obtain
Results
Preventative &
Proactive Vs
Appraisal &
Reaction
Fewer Trials
Faster
Accurate
Solutions
67
How to Apply Six Sigma?
How to Apply Six Sigma?
Process
Process
Input Input
Output Output
Unlike conventional improvement programs which focuses
on improving the defects on the output, Six Sigma focuses
on the process that creates or eliminates the defects.
Six Sigma seeks to reduce variability in a process by means of
a systematic approach called the Breakthrough Strategy.
68
The 5 Phases of Six Sigma
The 5 Phases of Six Sigma
69
Define
Define
The Define phase sets the stage for a
successful Six Sigma project by addressing
the following questions:
What is the problem of our focus?
Whats our goal? And by when?
Whos the customer impacted?
What are the CTXs in-concern?
Whats the process under investigation?
Who is my Customer ?
What matters ? (CTQ - Critical to Quality) ?
Whats the Scope ?
What Defect am I trying to Reduce ?
By how much (Realistic/Appropriate Goal) ?
Whats the current Cost of defects (Poor Quality) ?
(What Benefits will we get by reducing defects ?)
Project Definition
Project Definition
71
Baseline Metric Data
Baseline Metric Data
z Baseline The average long-term
defect level of a process when all
input variables in the process are
running in an unconstrained
fashion.
z Entitlement The best-case short-
term defect level of a process when
all input variables in the process are
centered and in-control.
z Benchmark The defect level of the
process deemed by comparison to
be the best process possible.
72
Breakthrough Improvement
Breakthrough Improvement
Time
R
e
j
e
c
t

R
a
t
e
Baseline ~ NID(
0
,
0
) Natural Variation (3
0
)
Special Variation
Goal ~ NID(
1
,
1
)
Natural Variation (3
1
)
Entitlement
Opportunity
for
Improvement
()
0.7
Whats my Process ? How does it function ?
Which Outputs affect CTQs most
Which Inputs seem to affect Outputs (CTQs) most ?
Is my ability to Measure/Detect Good Enough?
Hows my process doing today ?
How good could my (current) process be when everything
is running smoothly?
Whats the best that my process was Designed to do ?
M
M
easure
easure
74
Measure
Measure
75
Capability Analysis
Capability Analysis
-
-
Six Sigma Metrics
Six Sigma Metrics
zDefect Rate
in defects per unit (DPU)
in defects per million opportunities (DPMO)
zYield
in throughput yield
in rolled throughput yield
in normalized yield
76
First
First
-
-
Time Yield (
Time Yield (
Y
Y
ft ft
)
)
First-Time Yield is the number of units that pass
a particular inspection, compared with the total
number of units that pass through that point in
the process.
Process 968
Accept
32
Reject
First-Time Yield, Y
ft
= 968 / 1000 = 0.968
1,000
Input
77
Throughput Yield (
Throughput Yield (
Y
Y
tp tp
)
)
Throughput Yield is the probability that a unit of
product or service will pass through a given
process step error-free.
Throughput Yield, Y
tp
= e
DPU
Process 968
Accept
32
Reject
1,000
Input
(40 Defects)
Throughput Yield, Y
tp
= e
-(40/1000)
= 0.961
78
The Role of Measurement
The Role of Measurement
If we cannot express what we know in the form of
numbers, we really dont know much about it
If we dont know much about it, we cannot control it
If we cannot control it, we are at the mercy of chance
Conclusion: When measurement systems are inadequate,
so are the decisions we make using them.
79




(KPIV)




Summary :
Summary :

Measure Phase
Measure Phase
80
1. (KPIV)
Process Mapping / Cause & Effect / FMEA

2.
3. ""
Rolled through put yield , DPPM
(Process Capability)
4. (Entitlement)
Summary :
Summary :


Measure Phase
Measure Phase
Which Inputs actually (For Sure) affect my CTQs most ?
By how much ?
Do combinations of variables affect outputs?
If I change an input, do I really change the output ?
If I observe results (outputs) from the same process, different
locations, and results appear to be different..... are they really ?
How many observations do I need to draw conclusions ?
What level of confidence do I have regarding my conclusions ?
A
A
nalyze
nalyze
Analyze
Analyze
Process
KPIV
KPIV
KPIV
KPOV
CTQ
Manage
Correct
(In-Spec.)
Defect-
Free!
KPIV
StatisticallyDescribe the Relationship Between
Inputs and the Output . . . to
Find the Inputs with the Biggest Impact on the Output
Y = f (X)
83
Analyze
Analyze
84
KPIV's
(KPIV's)

1.
2. KPOV (Key process output
variables)
3.
4. ""

Summary :
Summary :

Analyze Phase
Analyze Phase
85

KPOV = F (KPIV's)

2
total
=
2
between
+
2
within


"
" (Do it right the first time)
Summary :
Summary :


Analyze Phase
Analyze Phase
Once I know for sure which inputs most affect my
outputs, how do I set (properly implement) them ?
How many trials do I need to run to find and confirm
the optimal setting/procedure of these key inputs ?
I
I
mprove
mprove
Improve
Improve
Process
KPIV
KPIV
KPIV
KPOV
CTQ
Manage
Correct
(In-Spec.)
Defect-
Free!
KPIV
High
Low
Medium
High
????????
Systematically Experiment
with the Inputs to Find the Combination
Which Delivers the Optimal Output
Y = f (X)
88
Improve
Improve
89
6 (Variability)
(Process) (Target)
KPIV's KPOV
(Optimizes)
KPIV's
KPIV's
KPIV's


Summary :
Summary :

Improve Phase
Improve Phase
90
1. KPIV's DOE
KPIV
KPIV
2. y = f (x1 , x2 , )
Regression ANOVA (analysis of
Variance)
3. (Optimize)
Advanced DOE Methods, EVOP
Summary :
Summary :


Improve Phase
Improve Phase
Once Ive reduced the Defects, how do the
functional team and I keep them there ?
How does the functional team keep it going (routinely) ?
What do I set up to keep it going even when things
change ...... People, Technology, and Customers
C
C
ontrol
ontrol
Control
Control
Control
Control
Control
Control
Process
KPIV
KPIV
KPIV
KPOV CTQ
Manage
Correct
(In-Spec.)
Defect-
Free!
KPIV
High
Low
Medium
High
Lock In the Inputs to RoutinelyGenerate
the Optimal Output!
Control
Control
Y = f (X)
93
Control
Control
94
KPIV's

(Maintain The Gains)


(Error Proof)

Summary :
Summary :

Control Phase
Control Phase
95
1.
Documented Control Plans (SOP's)
, ,

2. (CriticaltoQuality
factors : CTQ's)
SPC KPOV KPIV's

3. (Simplify)
(Error Proof)
(5 )
Summary :
Summary :


Control Phase
Control Phase
96
In the Realize phase, ownership of the project is
transferred to the finance representative, for
tracking of financial benefits over the next 12
months.
Realize
Realize
97
Six Sigma Project
RoadMap
98


FMEA , ,

CTQs
COPQ est.
:
(Input)
(Output)
KPIV KPOV

?
( - Improvement)

(Rolled Throughput Yield)

Six Sigma
Six Sigma

1
1
-
-


(Measure)
(Measure)

&

99

:
() ( )
DPMO; Sigma Score
Cp Pp Cp
k
Pp
k
/

(
)

(COQ)

Minitab

KPIV/KPOV

(
M
)

(
A
)

RoadMap
RoadMap

Six Sigma (2)

Six Sigma (2)
-
-

100
-
(t-tests)
/

-
Attribute
(Contingency Tables,
Non-parametric study)

:
?
( 2

:
?
( 2 ,
)
:
?
( 2 ,
,)

(Chi Sq., F-Test, Homogeneity of

Variance)
Multi-Vari

RoadMap
RoadMap

Six Sigma (3)

Six Sigma (3)
-
-

(
A
)

101

(ANOVA)
/
:
?
( 1 factor levels)
Correlation &
Regression
(Characterize Phase)
KPIV KPOV

:
X
Y
RoadMap
RoadMap

Six Sigma (4)

Six Sigma (4)
-
-

(
A
)
102

(Design of Experiment)
Fractional Factorial
:
Set X
Y
/

KPIV KPOV
Full Factorial
Simple 2
K
2
( / )
:
set X



Full Factorial
Multiple Variables
:

(
I
)
RoadMap
RoadMap

Six Sigma (5)

Six Sigma (5)
-
-

:

X
Y

103
DOE-
(Blocking)


Confound
/


. . .
. . .
!
EHS

(Environment)
(Health)
(Safety)
EHS
/

RoadMap
RoadMap

Six Sigma (6)

Six Sigma (6)
-
-

(
I
)
104
/


/
CTQ
SPC
:
Parameter , -
, ,

:
,

:
,
,

(
C
)
:





RoadMap
RoadMap

Six Sigma (7)

Six Sigma (7)
-
-

105

/

CTQ

:

CTQ
/

(
C
)

Functional Team Sign-Off
&
Celebrate!
Yes
No
D
F
S
S
RoadMap
RoadMap

Six Sigma (8)

Six Sigma (8)
-
-


DFSS
DFSS
106
Whos Who in Six Sigma to Make it Happen
Whos Who in Six Sigma to Make it Happen
Business
Business
Champions
Champions
Hands on
Hands on
Champions
Champions
Master
Master
Black Belts
Black Belts
Black Belts
Black Belts
Management
Management
Green Belts
Green Belts
Executives &
Executives &
All Employees
All Employees
Process Leaders &
Process Leaders &
Six Sigma Executive
Six Sigma Executive
107
Players
Players
z Black Belt Chosen by management from the top people in
the organization to work on improvement projects full time
for 2 3 years
z Brown Belt Same training as the Black Belt but without
the full-time commitment
z Green Belt Remainder of the technical-professional staff
z Orange Belt Technician training
z Master Black Belt Coaches, mentors, trainers
z Hands-on-Champion Supervises Black belt in matters of
project selection, execution, results
z Business Champion Executive leader for the division
z Six Sigma Director Responsible for leading the ongoing
design and implementation of Six Sigma across the
corporation
108


Black Belt
Six Sigma
Green Belt

Six Sigma
Six Sigma FMEA, DOE, SPC

Black Belt 2


(Management)
(Management)
109
Black Belts Project Champions

...

Black Belt 1 Project 4-6 2
( )
1 US$ / / Black Belt
BB Project (Measure) ,
(Analysis), (Improve) (Control)
- Y=F(X)

(Minitab,FMEA,DOE)
BB Green Belt

(
(
Black Belt
Black Belt
-
-
BB)
BB)
110
Green Belts
Champions Black Belts Six
Sigma
Black Belts Project
3


Six Sigma FMEA, DOE, SPC
Black Belt 2

(
(
Green Belt
Green Belt
-
-
GB
GB
)
)
111

(
(
Finance Representative
Finance Representative
)
)
112
What Is A Six Sigma Company? *
What Is A Six Sigma Company? *
An organization that is
actively working to
build the themes and
practices of Six Sigma
into its daily
management activities,
and is showing
significant
improvements in
process performance
and customer
satisfaction
* The Six Sigma Way, Pande, Neuman, Cavanagh, McGraw Hill, 2000
113
Six Sigma Strategies
Six Sigma Strategies
Process
Improvement
Process
Management
Process
Design,
Redesign
Find focused
solutions to
eliminate root
causes of
business
performance
problems
Replace a
process or
part of a
process
with a new
one
Understanding the facilitation and flow of work that
provides value to a customer
* The Six Sigma Way, Pande, Neuman, Cavanagh, McGraw Hill, 2000
114
Process &
Product
Improvement
DMAIC
Process &
Product
Management
BPMS
Process &
Product
Design,
Redesign
DFSS
Focus:
DEFECT
REDUCTION
Focus:
BUILD
QUALITY IN
Focus: INFRASTURCTURE
BPMS place into Six Sigma Approach
BPMS place into Six Sigma Approach
115


116

3

2

1.
2.

3

117
Thank You
Thank You
for
for
Attending the Class
Attending the Class