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Vision
Philosophy
Company
Strategy
Method
Culture
Tool
The Cost of Poor Quality (COPQ)
Inspection Warranty
Rework
Tangible Quality Costs
Scrap Rejects
Lost sales
On-target,
Off-Target
less variation Variation
x
xx x
xx x x x
x xx xxxx x
xxx x x
x x
x
Six Sigma goal identifies and controls process variations and targets.
Six Sigma methodology identifies processes that are off-target,
What is Six Sigma?
Integrates
Customer focus
Breakthrough improvement
Continuous improvement
People Involvement
Executive Management
Champion
34.13% 34.13%
13.06% 13.06%
2.14% 2.14%
0.13% 0.13%
LSL USL
Defects Defects
Acceptable
Six Sigma - Goal
Defects per
Million Opp.
1 691,462
2 308,537
3 66,807
4 6,210
5 233
6 3.4
Six Sigma -- Practical Meaning
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
16,000 lost articles of mail per hour 5.4 articles lost per hour
22,000 checks deducted from the 7.5 checks deducted from the
wrong bank account each hour wrong bank account each hour
500 incorrect surgical operations per 1.7 incorrect operations per week
week
• Characterize
T
LSL USL
T
• Optimize
USL
•
LSL
Breakthrough
T
LSL’ USL’
The 6 Sigma Breakthrough
Method 1 Define project and scope
D Define 2 Establish process
3 Identify key input/outputs variables
Characterization Measure 4 Identify process capability/
M measurement system
Problem statement
Goals/objectives for the team
Measurable gains (monetary
terms)
Milestone
Customer needs and
requirements
Process Mapping
Flow Line
Decision Point
A Connector A
Basic Structure
No
Start Rework
Yes
A
• What are the steps to capture?
• What are the operational steps?
• What are the decision points?
• Where are the problem area?
Good
Finished
A goods
Bad
Scrap
Versions of a Process
What You Think It Is... Start
Start No
What It Actually Is... Yes
Type of Data
Discrete
Continuous
Sampling
Representative
Random Sampling
Y-Axis
X-Axis
Metrics: What to measure?
Metrics
• Sigma level
• units: item produced or being serviced
• defect: event that does not meet the customer’s requirement
• opportunity: chance for a defect to occur
LSL USL
Three Sigma Process
Centered
LSL USL
LSL USL
Six Sigma Process
Centered
LSL USL
LSL USL
Analysis Tools
Analyze
Capabilities Hypothesis Testing
Multi-Vari ANOVA
Histogram Pareto
Purpose of the Improvement
Phase
Key variables are identified and
validated during this process .
Look to eliminate, reduce or neutralize
the effects of the input or root cause.
Design experiments to manipulate the
key input variables (X’s) to determine
their effect on the outputs (Y’s).
Select the solution that impacts the
root cause the most.
Design of Experiment
• Full Factorials
• 2K Factorials
• Fractional Factorials
DOE Example
12
10
Control
• Control Plan
• SPC
• Mistake
Proofing
• Automated
Control
Dynamics of Execution Strategy
40 - 50 Inputs
A Capability/Multi-Vari 8 - 10 X’s
C Control Plan
Who needs Six Sigma?
Service
Mfg. Design
6
Method
QC Admin.
Sales Maint.
As long as there is a process that produces an output, we can apply the Six Sigma
Methodology. Every function has a customer and a deliverable.
Six Sigma Project Consideration
Project is supportive of corporate objectives
Project is focused on an ongoing process /
recurring events that is causing defects
A 70% reduction in defects results
Customer (internal or external) will see or feel
the result
Takes 4-6 months to complete
Little or no capital required
Possible Six Sigma Projects
Low yield rate
High operating costs
High customer
failure/complaints
High scrap/rework
High inventory/WIP Inaccurate information
High maintenance costs Missing information
Supplier product quality Poor process control
problems Frequent set up requirements
Low productivity Long set up time
Long cycle times Unpredictable product
Low machine utilization performance
Six Sigma Success
Visible top-down leadership and commitment
World-class quality
Establishing meaningful,
focused metrics