Important terms and dimensions along with some intro. and history about Six Sigma

2. Six-Sigma
Presented to:
• Miss Nadia &
• Class Mates
Presented By:
• Muhammad Sultan Bhatti 1319-10
• Sumrah Shakeel 1339-10
• Hafiz Muhammad Shoaib 1341-10
• Rafia Tufail 1327-10
• Muhammad Zeshan Sarwar 1455-10
• Muhammad Tariq Saleem 1328-10

4.  Six Sigma is a highly disciplined process that helps a company to
focus on developing and delivering near-perfect products and
services. (Dell, PepsiCo) (China Mobile)
 Sigma; The word is a statistical term that measures how far a given
process deviates from perfection.
 It meets the both ends by value to companies in the forms of
increased profits and maximum value to consumers with high-
quality products and services at the lowest possible cost.

5.  The central idea behind Six Sigma is that if we can measure how
many" defects” we have in a process, we can systematically
determine how to eliminate those and approach to "zero defects”
Allied Signal
Johnson & Johnson,
Ford, Nissan,
Motorola
General Electric Honeywell
1985 1987 1992 1995 2002
Dr Mikel J Harry wrote a
Paper relating early failures to
quality

6.  The era ‘1986 to 1990’ is referred
 Pioneered at Motorola
 Statistical approach
 Measured Defects Per Million Opportunities (DPMO)
Focused on:
 Elimination of defects
 Improving product and service quality
 Reducing cost
 Continuous process improvement

7.  In the 1990s, the focus of Six Sigma shifted from product quality to
business quality. General Electric Corp. ushered in the second
generation of Six Sigma
 Six Sigma became a business-centric system of management
 Strong measurement on bringing dollars to the bottom line
 High potential candidates were selected as Black Belts

8.  Developed after the year 2000
 Korean steel maker Posco and electronics maker Samsung has begun a
Gen III program
 Gen III can show companies how to deliver products or services that, in
the eyes of customers, have real value
 Combines Lean Manufacturing Techniques and Six Sigma. Termed as
Lean Six Sigma

10.  Intense competitive pressures – especially from rapid globalization.
 Greater consumer demand for high quality products and services, little
tolerance for failures of any type.
 Top management (and stockholder) recognition of the high costs of
poor quality.

11. Defects per Million % Accuracy
Opportunities (DPMO)
One Sigma 691,500 30.85%
Two Sigma 308,500 69.15%
Three Sigma 66,810 93.32%
Four Sigma 6,210 99.38%
Five Sigma 233 99.977%
Six Sigma 3.4 99.9997%
Seven Sigma 0.020 99.999998%

12. Fig. 1 Cost of poor quality versus Sigma level
Cost of poor quality
as % of earnings
30%
20%
10%
0%
3 4 5 6 7
Sigma Level

13. Six Sigma - Three Dimensions
Customer Process A Process B Vendor
Define Measure Analyze Improve Control
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt Upper/Lower •
specification limits • ••••
••• ••••
•
Organization Tools ••••••
••••
Regression
35 100%
30
80%
25
20 60%
15 40%
10
20%
5
Process variation 0 0%
Enabled by quality
L K A F B C G R D
team.
Frequency Cumulative Frequency
Pareto Chart

15. Master
Black
Belt

16. Mentor, trainer, and coach of Black Belts and others
Master in the organization.
Black
Belt
Leader of teams implementing the six sigma
Black Belts methodology on projects.
Champions
Delivers successful focused projects using
the six sigma methodology and tools.
Green Belts
Team Members / Participates on and supports the
project teams, typically in the context
Yellow Belts of his or her existing responsibilities.

19. Voice of the Customer
Measure Analyze Improve
Define Control
Institutionalization
The DMAIC Model

20. Define Measure Analyze Improve Control
What is wrong? Data & Process When and where How to get Display
capability are the defects to six sigma key measures

21. Applications of Six Sigma that focus on the design or significant
redesign of products and services and their enabling processes so that
from the beginning customer needs and expectations are fulfilled
are known as Design for Six Sigma or DFSS.
The focal aim of DFSS is to create designs that are resource efficient,
capable of exceptionally high yields, and are robust to process
Variations.

24. Tools which we use in six sigma are given bellow:
Critical to Quality (CTQ) Tree:
 Identify the customer of the process targeted for improvement.
 Identify the need of the customer.
 Identify the first level of requirements of the need, that is, some
characteristic of the need that determines whether the customer is
happy with the need.
 Drill down to more detailed level(s) of the requirement if necessary.
Process Map:
 During the Define phase, the project team creates the first of
several process maps. A process map is a picture of the current steps
in the process targeted for improvement.

25. Tools which we use in six sigma are given bellow:
Control Chart:
 A control chart uses the data from a run chart to determine the
upper and lower control limits. Control limits are the expected
limits of variation above and below the average of the data.
Cause-Effect Diagram:
 Most important tool in determining root causation
 It captures all the ideas of the project team relative to what they feel
are the root causes behind the current sigma performance and
finally help in finding a root cause of the problem.

26. Tools which we use in six sigma are given bellow:
Scatter Diagram:
 Scatter diagram takes an idea about root causation and tracks
corresponding data in the response the team is trying to improve.
The team can validate an idea about root causation through one of
three methods. Using basic data collection, a designed experiment,
or through the scatter diagram.
Histogram:
 Used during the Analysis stage of DMAIC
 Project team will review data collected during the Measure stage of
DMAIC

27. Tools which we use in six sigma are given bellow:
Hypothesis Testing:
 Used in the for screening potential causes. A
hypothesis test calculates the probability, p, that an observed difference
between two or more data samples can be explained by random chance
alone, as opposed to any fundamental difference between the underlying
populations that the samples came from. So hypothesis testing answers the
question, what is the probability that these data samples actually came from
the same underlying population? If this probability, known as the p-value, is
small (typically below 0.05), then we conclude that the two samples likely
came from different underlying populations. For example, a p-value of 0.02
indicates that there is only a 2% chance that the data samples came from
the same underlying population.

28. Tools which we use in six sigma are given bellow:
Normality
 Statistical process used to determine if a sample, or any group
of data, fits a standard normal distribution
 Can be done mathematically or graphically
 Used, if assumption that the data being tested is normally
distributed is valid
House of Quality
 Matrix that is developed to assist product development teams with
complete understanding of the client requirements and also
prioritize based on the weightage given to each item by the client in
the requirements
 Customer requirements represent ‘What is required’ while the technical
requirements represent ‘How the requirement is going to be handled’

29. Tools which we use in six sigma are given bellow:
Pareto Chart
Process summary Work sheet

31. Control Limits

32. Poor quality:
defects are
Good quality:
common (Cpk<1)
defects are rare
(Cpk>1)
μ
target
μ
target
Cpk measures “Process Capability”
If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is exceptional.

33. Sample Means Chart:
UCL X X A2 R X
X
N
LCL X X A2 R
Range Chart: R
R
N
UCL R D4 R
LCL R D3 R

34. total number of defects
p
total number of units sampled
p (1 p )
p
n
UCL p p z p
LCL p p z p

38. QMS/Process improvement Yielded Results
tools
Six Sigma 53.6%
Process mapping 35.3%
Root cause analysis 33.5%
Cause-and-effect analysis 31.3%
Lean thinking/manufacturing 26.3%
Benchmarking 25.0%
Problem solving 23.2%
ISO 9001 21.0%
Process capability 20.1%
Statistical process control 20.1%
Performance metrics 19.2%
Control charts 19.2%
Process management 18.8%

40.  Metrics
 Benchmark
 Vision
 Philosophy
 Tool
 Method
 Symbol
 Value
 Goal
Discussing them briefly, we can say that :-

41.  Six-Sigma is a Metric (Statistical Measure)
 Higher the Number (6,5,4…) before “Sigma”- lesser the variation
 Higher the product quality and customer satisfaction
 Six-Sigma is a Benchmark
 To gain a competitive edge
 Six-Sigma is a Vision
 The desire and ability to look far ahead

42.  Six-Sigma is a Philosophy
 Creates a quality culture in the whole organization Higher the
product quality and customer satisfaction
 Lesser the opportunity for committing an error or mistake, So higher
the reward
 To measure and improve Business Bottom Line
 Adopts an excellent and powerful strategy.
 The Breakthrough Strategy (BTS).
 To Deliver quantum improvements in a short time

43.  Six-Sigma is a Symbol
 Indicates performance excellence in various facets of business.
 The highest level of Product Quality & customer Satisfaction
associated with it.
 Six-Sigma is a Value
 Continual improvement brings down costs
 Resulting in more profits, market share and customer satisfaction

44.  Six-Sigma is a Goal
 To scale to new heights and to reach world class level.
 Top down approach with aggressive campaign
 Initiated by the chief executive and involving right people for the right
job

45. • Working on too many improvements at the same time.
• Not having someone accountable for the problem.
• Not being a process-based company.
• A lack of trained and experienced people.
• Not suitable for small scale businesses
• Lack of metrics focused on customer value-added
processes.
• Lack of integrated information and financial systems.

46.  A true Six Sigma organization produces not only excellent product but
also maintains highly efficient production and administrative systems
that work effectively with the company's other service processes
 The primary factor in the successful implementation of a six sigma
project is to have the necessary resources, the support and leadership
of top management