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Six Sigma
What Is Six Sigma ?
• A metric — standard deviations in a normal curve
• A goal — 3.4 defects per million opportunities
• A rigorous, process focused methodology
– the DMAIC process
• A management
philosophy
Business
and/or Customer
Requirement
1
2
3
4
5
6
Defects Good
Where Does Six Sigma Come From?
• Necessity is the mother of invention
 Motorola was losing market share to foreign rivals who had
better quality and lower cost.
 A Japanese firm took over a Motorola television factory. After
implementing changes, the factory was producing with 1/20th
the defect rate. Same people, same equipment, same
designs…..different management and different processes.
• ―Our quality stinks.‖ — Art Sundry, Motorola
• Late 1970s Mikel Harry (the man with two first names), a senior staff
engineer, is using statistical analysis for problem solving. He was working in
the Government Electronics Group (GEG)
• Though certainly not the first to apply statistical thinking to manufacturing
analysis, he is the one who went on to refine a methodology and then call it
―Six Sigma.‖ He wrote an internal paper called ―The Strategic Vision for
Accelerating Six Sigma Within Motorola."
Who Developed Six Sigma ?
• Bill Smith and throughput yield:
– Motorola had quality issues even on products that had
highly capable processes. Why?
– Bill Smith (sometimes referred to as the father of Six
Sigma) examines the issue.
– Individual yields are combined into a ―rolled
throughput yield.‖ (So a 100-component product with
individual yields of 99.9% still only gives a completed
product with 90% reliability.)
– He also developed many of the tools and techniques that
became the Six Sigma methodology.
Why Six of Those Sigmas ?
Six Sigma Early Development
• By the mid-1980s, Bob Galvin, Motorola CEO, has the company focused on
improving quality.
• 1988, Motorola wins the first Malcolm Baldridge Quality Award. Part of
winning this national quality award is the agreement to share the methods used
to achieve the high levels of quality.
• Other companies initiate ―Six Sigma‖ programs, notably Larry Bossidy at Allied
Signal.
• Larry tells his friend Jack Welch about it. Jack applies it at GE in a very big,
very GE way.
Six Sigma’s Methodologies
Six Sigma
Process Management
Improve EXISTING
processes so that
their outputs meet
customer
requirements
Control and manage cross-function
processes to meet business goals
Design
NEW products
and processes
that meet
customer needs
• Project management
• Voice of the Customer
• Process mapping
• Data collection
• Data graphs
• Gage R&R
• Operational definitions
• Process Capability Assessment
• Hypothesis testing
• Regression analysis
• Designed experiments
• Statistical process control
• FMEA
• Stakeholder analysis
• Implementation planning
• Tollgate reviews
Common Six Sigma Tools
nothing new here . . .
Analyze
Define
Measure
Improve
Control
The Powerful DMAIC Road Map
Define
Define
Project Charter
Problem Statement:
Goal:
Business Case:
Scope:
Cost Benefit Projection:
Milestones:
VOC Key Issue CTQ
Delighters
More Is Better
Must Be
Voice of the CustomerBusiness Case
Initial Process Mapping
OutputsProcessInputs
Yield: 60%
Yield: 90%
Yield: 45%
Yield: 98%
CUSTOMERS
SUPPLIERS
Measure
Measure
Col # 1 2 3 4 5 6
Inspector A B
Sample # 1st Trial 2nd Trial Diff 1st Trial 2nd Trial Diff
1 2.0 1.0 1.0 1.5 1.5 0.0
2 2.0 3.0 1.0 2.5 2.5 0.0
3 1.5 1.0 0.5 2.0 1.5 0.5
4 3.0 3.0 0.0 2.0 2.5 0.5
5 2.0 1.5 0.5 1.5 0.5 1.0
Totals 10.5 9.5 3.0 9.5 8.5 2.0
Averages 2.1 1.9 0.6 1.9 1.7 0.4
Sum 4.0 Sum 3.6
XA 2.0 XB 1.8R
A
R
B
Validate Measurement
Systems
Display Data
0
1000
-1000
10 20 30
UCL
X
LCL
D B F A C E Other
Identify the Metrics
Data Collection Plan
Operational Definition and Procedures
Data Collection Plan
What questions do you want to answer?
Data
What Measure type/
Data type
How
measured
Related
conditions
Sampling
notes
How/
where
How will you ensure
consistency and stability?
What is your plan for
starting data collection?
How will the data be displayed?
Prioritize the Metrics
I1
I2
I3
I4
O1 O2 O3 O4
FMEA
Identify Process Capability
LSL USL
Cp = 0.4
s = 2.7
Measure
the
process
I P O
Input
Measures
Process
Measures
Output
Measures
Analyze
Analyze
.
VA NVA
Process Door
Regression Analysis
Chi-Square
c²
Regression
t-test
ANOVA
X1
Y
Hypothesis-Testing Design of Experiments
.
Cause & Effect
Data Door
22
21
20
19
18
17
16
15
14
13
12
1 2 3 4 5 6 7 8 9 10
X
O
n
X
O
n
X
O
n
X
O
n
X
O
n
X
O
n
X
O
n
X
O
n
O
n
X
O
n
.
Improve
Perform
Cost-Benefit
Analysis
Generate Solutions
A
B
C
D
4
1
3
2
Assess Risks
Run Pilot
Test
Full scale
Original
2 4 86 10
G
1 3 5 7 9
A
B
C
D
FE
JIH
G
Plan
Implementation
Select the Solution
Improve
FMEA
Control
Control
Evaluate Project
Results
.
UCL
LCL
Ownership &
Monitoring
Before After
Step 4 changes
implemented
}Improvement
Target
} Remaining Gap
Good
}Improvement
Before After
A1 A2 A3 A4 A2 A1 A3 A4
Process Change
Management
Learnings
Recommendations
Results
•
•
•
next
Key Learnings
QC Process Chart
Work
Instructions
Control/Check Points Response to Abnormality
NotesCode # Charac-
teristics
Control
LimitsMethodWho
Immediate
Fix
Permanent
Fix WhoFlowchart
2
12
Product Name
Process Name
Process Code #
Date of Issue: Issued by: Approved by:
Revision Date Reason Signature
1
Document &
Standardize
Training
Curriculum
Training
Manual
Fill to here
.
Closure
LSL USL
s = 3.7
Cp = 1.4
s = 2.7
Cp = 0.4
Process
Owner
A Philosophy ?
• Identify the process and customers right up front.
• Time spent identifying root causes and not just symptoms is time well spent.
D, M, A, then I !!
• ―Show me the Data !‖ (valid data please)
• Great ideas with poor support will fail.
• Put good people in a bad process and the process will win every time.
• Y = f (x)
An Illustrative Project Example
PROCESSES
TOOLS
SKILLS
TRAINING
LEAN SIGMA
(DMAIC +)
Integrated Improvement
Y1
y1
VOICE OF...
• Market
Customer•
Employee•
•Business
FEEDBACK
CORE & ENABLING PROCESSES
PROCESS
MAPS SYSTEMS
EXECUTION (PROCESS MANAGEMENT)
WORKOUT
SIX SIGMA
LEAN SIGMA
STRATEGY
If new product
or process
Big Y’s
Sub Y’s
PROCESS
DFSS (DMADV)
Fundamental Redesign
D
R
I
V
E
S
S
U
P
P
O
R
T
S
Flexible Problem Solving Models
Y1
y1
VOICE OF...
• Market
• Customer
• Employee
• Business
BUSINESS
OBJECTIVES
RESULTS:
Top-Level
Indicators
(Dashboards)
PROCESS
MAPS
SYSTEMS
PROCESS IMPROVEMENT
STRATEGY
If new product
or process
Projects
PROCESS
DFSS
D
R
I
V
E
S
S
U
P
P
O
R
T
S
PROCESS
CONTROL
ALIGNMENT
SIX SIGMA
(DMAIC)
Incremental Improvement
GE WORKOUT
Quick Wins
Accelerated Improvement
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS
The power of the Lean Tools &
Principles fully integrated into
DMAIC & DFSS

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6 sigma

  • 2. What Is Six Sigma ? • A metric — standard deviations in a normal curve • A goal — 3.4 defects per million opportunities • A rigorous, process focused methodology – the DMAIC process • A management philosophy Business and/or Customer Requirement 1 2 3 4 5 6 Defects Good
  • 3. Where Does Six Sigma Come From? • Necessity is the mother of invention  Motorola was losing market share to foreign rivals who had better quality and lower cost.  A Japanese firm took over a Motorola television factory. After implementing changes, the factory was producing with 1/20th the defect rate. Same people, same equipment, same designs…..different management and different processes. • ―Our quality stinks.‖ — Art Sundry, Motorola
  • 4. • Late 1970s Mikel Harry (the man with two first names), a senior staff engineer, is using statistical analysis for problem solving. He was working in the Government Electronics Group (GEG) • Though certainly not the first to apply statistical thinking to manufacturing analysis, he is the one who went on to refine a methodology and then call it ―Six Sigma.‖ He wrote an internal paper called ―The Strategic Vision for Accelerating Six Sigma Within Motorola." Who Developed Six Sigma ?
  • 5. • Bill Smith and throughput yield: – Motorola had quality issues even on products that had highly capable processes. Why? – Bill Smith (sometimes referred to as the father of Six Sigma) examines the issue. – Individual yields are combined into a ―rolled throughput yield.‖ (So a 100-component product with individual yields of 99.9% still only gives a completed product with 90% reliability.) – He also developed many of the tools and techniques that became the Six Sigma methodology. Why Six of Those Sigmas ?
  • 6. Six Sigma Early Development • By the mid-1980s, Bob Galvin, Motorola CEO, has the company focused on improving quality. • 1988, Motorola wins the first Malcolm Baldridge Quality Award. Part of winning this national quality award is the agreement to share the methods used to achieve the high levels of quality. • Other companies initiate ―Six Sigma‖ programs, notably Larry Bossidy at Allied Signal. • Larry tells his friend Jack Welch about it. Jack applies it at GE in a very big, very GE way.
  • 7. Six Sigma’s Methodologies Six Sigma Process Management Improve EXISTING processes so that their outputs meet customer requirements Control and manage cross-function processes to meet business goals Design NEW products and processes that meet customer needs
  • 8. • Project management • Voice of the Customer • Process mapping • Data collection • Data graphs • Gage R&R • Operational definitions • Process Capability Assessment • Hypothesis testing • Regression analysis • Designed experiments • Statistical process control • FMEA • Stakeholder analysis • Implementation planning • Tollgate reviews Common Six Sigma Tools nothing new here . . .
  • 11. Define Project Charter Problem Statement: Goal: Business Case: Scope: Cost Benefit Projection: Milestones: VOC Key Issue CTQ Delighters More Is Better Must Be Voice of the CustomerBusiness Case Initial Process Mapping OutputsProcessInputs Yield: 60% Yield: 90% Yield: 45% Yield: 98% CUSTOMERS SUPPLIERS
  • 13. Measure Col # 1 2 3 4 5 6 Inspector A B Sample # 1st Trial 2nd Trial Diff 1st Trial 2nd Trial Diff 1 2.0 1.0 1.0 1.5 1.5 0.0 2 2.0 3.0 1.0 2.5 2.5 0.0 3 1.5 1.0 0.5 2.0 1.5 0.5 4 3.0 3.0 0.0 2.0 2.5 0.5 5 2.0 1.5 0.5 1.5 0.5 1.0 Totals 10.5 9.5 3.0 9.5 8.5 2.0 Averages 2.1 1.9 0.6 1.9 1.7 0.4 Sum 4.0 Sum 3.6 XA 2.0 XB 1.8R A R B Validate Measurement Systems Display Data 0 1000 -1000 10 20 30 UCL X LCL D B F A C E Other Identify the Metrics Data Collection Plan Operational Definition and Procedures Data Collection Plan What questions do you want to answer? Data What Measure type/ Data type How measured Related conditions Sampling notes How/ where How will you ensure consistency and stability? What is your plan for starting data collection? How will the data be displayed? Prioritize the Metrics I1 I2 I3 I4 O1 O2 O3 O4 FMEA Identify Process Capability LSL USL Cp = 0.4 s = 2.7 Measure the process I P O Input Measures Process Measures Output Measures
  • 15. Analyze . VA NVA Process Door Regression Analysis Chi-Square c² Regression t-test ANOVA X1 Y Hypothesis-Testing Design of Experiments . Cause & Effect Data Door 22 21 20 19 18 17 16 15 14 13 12 1 2 3 4 5 6 7 8 9 10 X O n X O n X O n X O n X O n X O n X O n X O n O n X O n .
  • 17. Perform Cost-Benefit Analysis Generate Solutions A B C D 4 1 3 2 Assess Risks Run Pilot Test Full scale Original 2 4 86 10 G 1 3 5 7 9 A B C D FE JIH G Plan Implementation Select the Solution Improve FMEA
  • 19. Control Evaluate Project Results . UCL LCL Ownership & Monitoring Before After Step 4 changes implemented }Improvement Target } Remaining Gap Good }Improvement Before After A1 A2 A3 A4 A2 A1 A3 A4 Process Change Management Learnings Recommendations Results • • • next Key Learnings QC Process Chart Work Instructions Control/Check Points Response to Abnormality NotesCode # Charac- teristics Control LimitsMethodWho Immediate Fix Permanent Fix WhoFlowchart 2 12 Product Name Process Name Process Code # Date of Issue: Issued by: Approved by: Revision Date Reason Signature 1 Document & Standardize Training Curriculum Training Manual Fill to here . Closure LSL USL s = 3.7 Cp = 1.4 s = 2.7 Cp = 0.4 Process Owner
  • 20. A Philosophy ? • Identify the process and customers right up front. • Time spent identifying root causes and not just symptoms is time well spent. D, M, A, then I !! • ―Show me the Data !‖ (valid data please) • Great ideas with poor support will fail. • Put good people in a bad process and the process will win every time. • Y = f (x)
  • 21. An Illustrative Project Example PROCESSES TOOLS SKILLS TRAINING LEAN SIGMA (DMAIC +) Integrated Improvement Y1 y1 VOICE OF... • Market Customer• Employee• •Business FEEDBACK CORE & ENABLING PROCESSES PROCESS MAPS SYSTEMS EXECUTION (PROCESS MANAGEMENT) WORKOUT SIX SIGMA LEAN SIGMA STRATEGY If new product or process Big Y’s Sub Y’s PROCESS DFSS (DMADV) Fundamental Redesign D R I V E S S U P P O R T S Flexible Problem Solving Models Y1 y1 VOICE OF... • Market • Customer • Employee • Business BUSINESS OBJECTIVES RESULTS: Top-Level Indicators (Dashboards) PROCESS MAPS SYSTEMS PROCESS IMPROVEMENT STRATEGY If new product or process Projects PROCESS DFSS D R I V E S S U P P O R T S PROCESS CONTROL ALIGNMENT SIX SIGMA (DMAIC) Incremental Improvement GE WORKOUT Quick Wins Accelerated Improvement The power of the Lean Tools & Principles fully integrated into DMAIC & DFSS The power of the Lean Tools & Principles fully integrated into DMAIC & DFSS