LETS START

What is six sigma?

•Sigma is a measure of “goodness: the capability

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of a process to produce perfect work.

•A “defect” is any mistake that results in customer

dissatisfaction.
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•Sigma indicates how often defects are likely to occur.

•The higher the sigma level, the lower the defect rate.
•
•The lower the defect rate, the higher the quality.
 The Six Sigma Evolutionary Timeline

1818: Gauss uses the normal curve 1924: Walter A. Shewhart introduces
to explore the mathematics of error the control chart and the distinction of
analysis for measurement, probability special vs. common cause variation as
analysis, and hypothesis testing. contributors to process problems.

1736: French 1896: Italian sociologist Vilfredo

mathematician Alfredo Pareto introduces the 80/20
Abraham de rule and the Pareto distribution in
Moivre publishes Cours d’Economie Politique.
an article
introducing the
normal curve.

1949: U. S. DOD issues Military

Procedure MIL-P-1629, Procedures
for Performing a Failure Mode Effects 1960: Kaoru Ishikawa
and Criticality Analysis. introduces his now famous
cause-and-effect diagram.

1941: Alex Osborn, head of 1970s: Dr. Noriaki Kano

BBDO Advertising, fathers a introduces his two-dimensional
widely-adopted set of rules for quality model and the three
“brainstorming”. types of quality.

1986: Bill Smith, a senior engineer

and scientist introduces the 1995: Jack Welch
concept of Six Sigma at Motorola launches Six Sigma at
GE.

1994: Larry Bossidy launches

Six Sigma at Allied Signal.
 Why six sigma?

•Sigma allows comparison of products and services

of varying complexity

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•
•Also, it provides a common basis for benchmarking
(competitors and non-competitors).
•

•
is performing.
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•The higher the sigma level, the better your operation

•Sigma measures how well you’re doing in getting

to zero defects.
 Cost of poor quality.

Traditional Costs
•
•Real but Overlooked

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•Long Cycle Time
Inspection
•Cost of Capital
Overtime
•Redundant Processes
Defects
Idle Time
Rework
6 •Expediting Costs

•Lost Sales

•Lost Customer Loyalty

•Missed Deadlines

•Excessive Planning

•Inaccurate Reports

•
 Big Question???
lIs it a Goal, a Measure, a Process, or a Tool?

•l

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l

lYes



•
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 Customer Focused

Our Performance Compared to Competitors

•Quality •OTD
Importance to Customers

High

•Training
Moderate-
•Price
•Complaints to-’Low’

We’re Better They’re Better

Operational Excellence Training

 Breakthrough performance

ᵟ
(Distribution Shifted ± 1.5σ )

σσ PPM
PPM
2 3
08,5
37
3 6 68
6
, 07
4 6,2
10
5 2
33
6 3.4

Process
Process Defects
Defectsper
perMillion
Million
Capability
Capability Opportunities
Opportunities
 Possible applications

•Human Resources: reduce the number of requisitions

unfilled after 30 days.

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•
•Customer Service: measure the number of calls answered
on the first ring.
•
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•Order Fulfillment: eliminate Customer returns because of
incorrect parts or product being shipped.
•
•Finance: reduce the instances of accounts being paid
after a specified time limit has elapsed.
 Calculating quality

How Six sigma is calculated???.....

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Mechanically .
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 DMAIC

it is an approach undertaken to improve existing business

process
Six sigma acronym of 5 interconnected phases of a process
improvement project.following are the phases:
 Process

1.Define high-level project goals and the current process.

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2.Measure key aspects of the current process and collect relevant data.

3.Analyze the data to verify cause-and-effect relationships. Determine what

the relationships are, and attempt to ensure that all factors have been
considered.

tools
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4.Improve or optimize the process based upon data analysis using various

5.Control to ensure that any deviations from target are corrected before
they result in defects.
 Tools used for dmaic
approach
define
measure
1.Stakeholders analysis
2.VOC 1.FMEA

ᵟ
3.Surveys Improve 2.Pareto analysis
4.CTQ’s 3.Data collection
5.Benchmarking 4.PDSA cycle
6. 5. Run charts
7. Brainstormin
8. g
Force Field
Analysis Analysis 6
(PDSA) Cycle Control
Cause and Effect Chart Team
Brainstorming Performance FMEA
Histogram Improvement Control Plans
Pareto analysis Plan, Do, Study,
Scatter Plot Act (PDSA) Cycle
Regression Analysis Plan
FMEA analysis Team
Performance
Improvement
 DMADV APPROACH

This approach is undertaken when there is a

need to create new design or product:
5 steps in DMADV approach-
Define
Measure
Analyze
Design details
Verification
 DMADV

Define design goals that are consistent with customer demands and the
enterprise strategy.

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Measure and identify CTQs (characteristics that are Critical To
Quality), product capabilities, production process capability, and risks.

Analyze to develop and design alternatives, create a high-level design

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and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification.
This phase may require simulations.

Verify the design, set up pilot runs, implement the production process
and hand it over to the process owners.
DMADV is also known as DFSS, an abbreviation of "Design For Six
Sigma".
DMAIC DMADV
.

1.Define
customer needs

1.Defines a 2.Measure
business process customer needs
& specifications
2.Measuring
current process 3.Analyze options
to meet customer

V/S
3.Identify root satisfaction
cause of the
recurring problem 4.Model is
designed to meet
4.Improvements customer needs
made to reduce
defects 5.Model put
through
5. Keep check on simulation tests
future for verification
performance
 The six sigma organization.

The six sigma team has five levels of

hierarchy
 What is a BELT?

ØBelt refers to the level or the position, of a person in an

organization at the time of performing a work or at the

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time of implementation of a project.
Ø
Ø
ØThere are four “Belt” levels :-

1.Champion
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2.Master black belt(MBB)
3.Black belt(BB)
4.Green belt(GB)
5.Yellow belt(YB)
Ø
 Champion

•Lay down policies and guidelines regarding

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functioning of six sigma teams
•Approves six sigma projects
•Removes road blocks in the path of six sigma
implementation 6
•Receives presentations
•Monitors project
•Make available necessary resources
•Sort out conflicts
 Master black belts

§The highest level of Six Sigma expertise;

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§
§All duties involve implementation of Six
Sigma, including statistical analysis,
strategic 6
and policy planning
implementation, and training and mentoring
of Black Belts.
and
 Black belts

§a Six Sigma-trained professional who has usually

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completed an examination and been certified in its
methods;
§
§all job duties include implementation of Six Sigma

§
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methodology throughout all levels of the business,

§leading teams and projects, and providing Six

Sigma training and mentoring to Green and Yellow
Belts.
 Green belt

§In many organizations, Six Sigma's "entry

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level";
§
§a Six Sigma-trained professional who does not
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work on Six Sigma projects exclusively, but
whose duties include leading projects and
teams and implementing Six Sigma
methodology at the project level
 Yellow belt

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§The lowest level of Six Sigma expertise;
§
§applies to a professional who has a basic working
knowledge and who may manage smaller process

§
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improvement projects,

§but who does not function as a project or team

leader.
Number game In hierarchy

one

15 - 20

100-5GB

20

Team
members
Principles underlying six sigma

•Variability is necessary.
•Total variability is the result of two types of

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causes : chance causes and assignable
causes . chance causes cant be identified and
hence can not b e eliminated while
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assignable causes can be identified and
immediately eliminated.
•Process means in real life can shift from the
nominal mean by 1.5 times of standard
deviation.
•Defects are randomly distributed
throughout the units, and parts and
processes are individual.
 Continue…….

6.For execution of any operation certain standard is

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specified for the output and some variations are allowed
from the ideal measure.
These requirements are usually stated in terms of
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USL=upper specification limit
LSL=lower specification limit
Defects are randomly distributed throughout the units
and parts and processes are individual. since measured
values follow a normal distribution with mean and
standard deviation, the process capability of the process
will be equal to mean.
 Continue………….

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•Since process mean in real life can shift from
nominal by 1.5 times the standard deviation
due to gradual drift or as a result of sudden
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drift, defects rates in practice expected at a
different sigma levels are higher than in the
mean centered process.
•
•Measurements are the key elements
How six sigma can reduce defects?

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•By reducing the value of
variation (standard
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deviation).

•Increasing the design width.

 Defects in six sigma.

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•Six sigma is extracting but not
exciting
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•Detraction from creativity
•
•Six sigma not for small business
 Examples : GE

1995 Operating margin—13.5%

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1998 Operating margin—16.7%
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Result: $600million bonus
Example : Dabbawalas
Example : Dabbawalas
Summary

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