Module 1 - Six Sigma Introduction

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History of Six Sigma

Established by Motorola in the 1980s and still being developed. Seen as a cornerstone to the
companys culture.
Companies adopting 6 Sigma include General Electric, Allied Signal, ABB, Sony, Lockheed Martin,
Ford, Nissan and many others
It is essential for companies to take responsibility for their own (unique) programme.

Copyright 2012 BSI. All rights reserved.

What is Six Sigma?

LSL
A systematic approach to process improvement.
Processes can be related to design, manufacturing or administrative functions.
It involves the use of statistical tools and techniques to analyse & improve processes.
The relentless pursuit of variability reduction and defect elimination.

LSL

Copyright 2012 BSI. All rights reserved.

USL

USL

Where can Six Sigma be applied?

Six Sigma can be applied to all company processes

A distinction is often made between:
Design applications (Design for Six Sigma)
Manufacturing applications (Operational Six Sigma)
Administrative and Service applications (Transactional Six Sigma)

Copyright 2012 BSI. All rights reserved.

The Six Sigma Metric

Sigma

Used in statistics as a measure of variation

Standard Deviation
The central philosophy of 6 Sigma is the reduction
of variation in all our work processes

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The Normal Distribution

Lower
Spec.
Limit

Upper
Spec.
Limit

y 1
= 68.26%
y 2
= 95.44%
y 3
= 99.73%

-3

-2

-1
y
+1
+2
+3

(Target)

The 3 Sigma mentality means 2700 defectives per million!

Copyright 2012 BSI. All rights reserved.

The 6 Sigma Metric

Normal Distribution
Centred on Target

Lower
Specification
Limit

-6
-5
-4
-3

Specification
Limit

-2

-1

Upper
Specification
Limit

+1
+2
+3
+4
+5
+6

Percent within Specification

(Centred Distribution)

Defects Per Million

(Centred Distribution)

99.73
99.9937

2700

99.99994

99.999999999

0.6
0.002

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63

From 3 Sigma to 6 Sigma

Lower
Spec.
Limit

Upper
Spec.
Limit

Defects per Million

2700
Lower
Spec.
Limit

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Upper
Spec.
Limit

0.002
8

Motorolas 6 Sigma Metric

1.5
Shift

Lower
Spec.
Limit

-6
-5
-4
-3
-2

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Upper
Spec.
Limit

-1

+1
+2
+3
+4
+5
+6

Calculating Sigma Level

Number of defects or error opportunities per unit

Number of Units Processed

100

Total No. of defects

16

Defects per Unit

DPU

D/N

0.16

Defects per opportunity

DPO (DPU/O)

D .
NxO

0.04

Defects per Million Opportunity DPMO

DPO x 10,00,000

Sigma Level
Yield

3.25
1-DPO

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40,000

96%
10

Motorolas 6 Sigma Metric

Specification
Limit

Percent within
Specification
(Centred)

Percent within
Specification
(1.5 shift)

Defects
per million
(Centred)

Defects
per million
(1.5
shift)

68.26

30.23

317400

697700

95.44

69.13

45600

308700

99.73

93.32

2700

66810

99.9937

99.38

63

6210

99.99994

99.98

0.6

233

99.9999998

99.9997

0.002

3.4

Motorolas definition of a 6 Sigma process is one

which achieves 3.4 defects per million or less.
Copyright 2012 BSI. All rights reserved.

11

6 Sigma & Defect Rates

A Process with 10 Steps

Each Process Step has a 3 Quality Level = 93.32% Yield
The probability of success (non-defective) at each step = 0.9332
The probability of overall success = 0.933210 = 0.5008
Overall Process Yield = 50.08% (499200 dpm)

Copyright 2012 BSI. All rights reserved.

12

6 Sigma & Defect Rates

Another Process with 10 Steps

Each Process Step has a 6 Quality Level = 99.99966% Yield
The probability of success (non-defective) at each step = 0.9999966
The probability of overall success = 0.999996610 = 0.999966
Overall Process Yield = 99.9966% (34 dpm)

Copyright 2012 BSI. All rights reserved.

13

The Hidden Factory

To produce a defect uses production time, production capacity, energy, raw material.
This all takes time, people, material, energy, floor space....
It must be identified by testing and/or inspection, transported, stored, re-tested.
Often this non-value added activity is not shown within the factory metrics - the hidden factory
It must be reworked and then checked or scrapped and disposed of

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14

Process Yield

Raw
Materials

Mixing

Forming

This process has 100% yield. Our

customers would be very pleased.
Should we be just as happy?

Cooling

0% Fail

Finished
Product

Final
Inspection

100% Pass

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15

Rolled Throughput Yield

Raw
Materials

Mixing

Forming

Finished
Product

Cooling

Rework
& Repair

Final
Inspection

Rework
& Repair

7.5% of Units

Rework
& Repair

6% of Units

5% of Units

RTY =

0.925

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0.94

0% Fail

0.95

100% Pass

= 0.826 = 82.6%

16

DMAIC Improvement Process

Define
Measure
Identify
Opportunity

Analyse
Identify Key ys
(Outputs)

y = f(x)
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Improve
Identify
Critical xs
(Inputs)

Control
Optimise
xs

Control
xs

17

DMAIC Improvement Process

Define

Measure

Select Project
Define Project
Objective
Form the Team

Define Measures (ys)

Analyse

Improve

Identify Potential xs

C1 C2 C3

Evaluate Measurement
System

Effect

Map the Process

Identify Customer
Requirements

Determine Process
Stability
Determine Process
Capability
LSL

15

Identify Priorities
Update Project File

Phase Review

20

USL

25

30

35

Set Targets for

Measures

Phase Review
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. .. .
.
. .. .. . x

y=f(x1,x2,..)

C4 C5 C6

Characterise xs

Analyse xs

Run

1
2
3
4
5
6
7
8

1
1
1
1
2
2
2
2

1
1
2
2
1
1
2
2

1
1
2
2
2
2
1
1

1
2
1
2
1
2
1
2

1
2
1
2
2
1
2
1

1
2
2
1
1
2
2
1

1
2
2
1
2
1
1
2

Select Critical xs

Optimise xs

Phase Review

Control Critical xs

10.2

Upper Control Limit

10.0

9.8

Lower Control Limit

9.6
1

10

15

20

Monitor ys

y
Set Tolerances for xs
Verify Improvement

xx
x
x x x
x x
x
x
x

Control

LSL

15

20

Validate Control
Plan

Close Project

USL

25

30

35

Phase Review

Phase Review
18

Problem Solving Process

1. Define the Problem
8. Standardise and Future Actions

2. Interim Actions

7. Verify the Results

3. Acquire and Analyse Data

6. Action Plan and Implement

4. Determine Root Cause

5. Evaluate Possible Solutions

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19

A Few of the Six Sigma Tools!

Cause & Effect
Diagram
Man Machine

Effect

Review
Templates
M
A
I
C

Measurement
System
Variation

D e s c rip tive S ta tis tic s

V a ria b le : S A T
A n d e r s o n - D a r lin g N o r m a lity T e s t
A- S q u a r e d :
P - V a lu e :

Regression
Analysis

44 0

5 00

5 60

620

Calibration

Stability
Reproducibility

Gauge R&R

A1 A2

Repeatability

Minitab Software

Maint. Method

Analysis of Variance

Accuracy

6 80

M ea n
S tD e v
Va r ia n c e
Sk ew n e ss
K u r to s is
N

74 0

M in im u m
1 s t Q u a r tile
M e d ia n
3 r d Q u a r tile
M a x im u m

9 5 % C o n fid e n c e In te r v a l fo r M u

0 .3 2 9
0 .5 1 2

Process
Validation

5 9 0 .2 4 0
6 5 .1 0 1
4 2 3 8 .0 8
2 .6 3 E - 0 2
- 4 .0 E - 0 1
10 0
4 2 6 .0 0 0
5 4 2 .2 5 0
5 9 8 .0 0 0
6 4 0 .0 0 0
7 4 0 .0 0 0

Customer
Focus
Flow
Chart

9 5 % C o n fid e n c e In te r v a l fo r M u
5 7 7 .3 2 3
568

5 78

5 88

59 8

60 8

6 0 3 .1 5 7

9 5 % C o n fid e n c e In te rv a l fo r S ig m a
5 7 .1 5 9

7 5 .6 2 6

9 5 % C o n fid e n c e In te r v a l fo r M e d ia n
9 5 % C o n fid e n c e In te r v a l fo r M e d ia n

5 7 0 .7 1 1

6 0 5 .0 0 0

y=f(x)
Control Charts

Hypothesis Testing
Test Statistic
Distribution

x
Process
Capability

CL

Pareto

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Histogram

Test Statistic
Value

CR

Mistake
Proofing

Scatter
Diagram

FMEA

x
x x
x
x x x
x
x x
x x

20