Industrial Management 2

Six Sigma Overview

 Six Sigma
Six Sigma is a highly disciplined process that helps a company
focus on developing and delivering near-perfect products and
services. Why “sigma”? The word is a statistical term that
measures how far a given process deviates from perfection.
“Six Sigma is a rigorous and disciplined methodology that uses data
and statistical analysis to measure and improve a company's
operational performance by identifying and eliminating ‘defects’ and
waste in manufacturing and service-related processes.
Commonly defined as 3.4 defects per million opportunities,
Six Sigma can be defined and understood at three distinct levels
: metric, methodology and philosophy…”
 Six Sigma: 6
A Measurement

• 6 = 3.4 PPM = World-Class

• Parts Per Million Opportunities (ppm)

• Defects or Errors per Million Opportunities

(dpmo)

• Returns per Million Units Shipped

 “Six Sigma” Quality
Ensuring that process variation is half the design
tolerance (Cp = 2.0) while allowing the mean to shift as
much as 1.5 standard deviations.
 0.4

Statistics of Six-sigma Quality

0.35

0.3

0.25

Process is centered on 0.2

target 0.15

0.1

0.05

0
-6 -4 -2 0 2 4 6

-6 -4 -2 =T 2 4 6

Specification Percent inside ppm defective

limit specifications
1 sigma 68.27 317300
2 sigma 95.45 45500
3 sigma 99.73 2700
4 sigma 99.9973 63
5 sigma 99.9999943 0.57
6 sigma 99.9999998 0.002
Statistics of Six-sigma Quality
(Continued)
Process mean is shifted 1.5 from the
target

Specification Percent inside ppm defective

limit specifications
1 sigma 30.23 697700
2 sigma 69.13 608700
3 sigma 93.32 66810
4 sigma 99.3790 6210
5 sigma 99.97670 233
6 sigma 99.999660 3.4
 Voice of the Customer

Measure Analyze Improve

Define Control

Institutionalization

The DMAIC Model

 Six Sigma Methodologies
• DMAIC
Define the project goals, scope and customer (internal and
external) deliverables (requirements, expectations…)

Measure the process to determine current performance; ie

input AND output variables

Analyze and determine the root cause(s) of the defects;

relationships between input and output variables

Improve the process by eliminating defects; experiment to

establish cause-effect relationships

Control future process performance; placed on inputs

NOT outputs (e.g. inspection)
 Six Sigma Tools
• Tools Used for DMAIC
§ Define
- Flow Chart; Value Stream Map; QFD (House of Quality)
§ Measure
- Measurement System Analysis / R&R Study
§ Analyze
- QC tools (histogram, Pareto analysis, control charts) first, then
Design Of Experiments (DOE) if necessary
§ Improve
- DOE; Action Plan = Accountability
§ Control
- Control Plan; Poka-yoke; Preventive Maintenance; Control
Charts; Audits; Assessments…
 Six Sigma Organization Roles
and Responsibilities
•Own vision, direction, •Part-time
integration, results Executive Project Member •Project-specific
•Lead change

Champion All employees Green Belts

•Project owner •Understand vision •Part-time

•Implement solutions •Apply concepts •Help Black Belts
•Black Belt managers

Master Black Black Belts

Belts

•Full-time •Devote 50%-100% of time to Black Belt activities

•Train and coach Black and Green Belts •Facilitate and practice problem solving
•Statistical problem solving experts •Train and coach Green Belts and project teams
Define Measure Analyze Design Verify
the Project Customer Concepts The Product Design
Requirements Performance
1 Develop 1 Understand 1 Identify Key 1 Ident. & Prior. 1 Conduct and
Charter VOC Functions High-level
Design Require.
Evaluate Pilot

2 Develop 2 Translate VOC 2 Prioritize the 2 Develop Design 2 Implement the

Project Plans Needs into Req. Functions Requirements
(CTQs)
Design

3 Develop Org. 3 Prioritize CTQs 3 Generate Concepts 3 Develop High- 3 Close Project
Change Plan Level Design

4 Identify Risks 4 Reassess Risk 4 Evaluate & Select 4 Test High-Level

Concepts Design

5 Tollgate Review 5 Tollgate Review 5 Review Concepts 5 Ident. & Prior.

Detailed Design
Elements
6 Tollgate Review 6 Develop the
Detailed Design
7 Test Det. Design

8 Develop Proc.
Mgt. Plans
9 Review Pre-Pilot
Design
10 Tollgate Review
 Hindrances to Six Sigma Success

vWorking on too many improvements at the same time.

vNot having someone accountable for the problem.
vNot being a process-based company.
vA lack of trained and experienced people.
vMiddle managers who fear uncertainty about future roles.
vLack of metrics focused on customer value-added
processes.
vLack of integrated information and financial systems.
vFragmented, staff-driven approaches.
STEP TOOLS OUTPUTS
DEFINE the Market Analysis Tools: Project Charter
project Mkt. Forecasting Tools;
Customer Value Analysis; Project Plan
lDevelop a clear project Technology Fore. &
definition. Visioning;
Organizational Change
Competitor Analysis.
Plan
Process Analysis Tools:
lDevelop organizational
change plans, risk Control Charts;
Pareto Charts. Risk Management Plan
management plans, and
project plans. Project Planning Tools:
Work Breakdown Tollgate Review &
Structures; Storyboard Presentation
PERT Charts;
Gantt Charts;
Activity Network Diagrams.
DMADV Specific Tools:
Project Charter;
In/Out of Scope Tool;
Organizational Change Plan
STEP TOOLS OUTPUTS
MEASURE Cust. Segmentation Tree Prioritized CTQs
Customer Req. Data Collection Plan
Updated risk
Customer Research Tools: management plan and
l Collect VOC Data Interviews; multistage project plan,
Contextual Inquiry; if appropriate.
Translate the VOC into Focus Groups;
l
Tollgate Review &
design requirements - Surveys.
Updated Storyboard
CTQs VOC Table
Affinity Diagrams
lIdentify the most
important CTQs. Kano Model
Perform. Benchmarking
Revise Risk
l QFD Matrix
Management Plan CTQ Risk Matrix
Multistage Plan
If necessary, develop a
l

multistage project plan. Tollgate Review

STEP TOOLS OUTPUTS
ANALYZE QFD Matrix: Selected concept for
Concepts: Creativity Tools: further analysis and
design
Brainstorming/
lGenerate, evaluate,
Brainwriting; Tollgate Review &
and select the
Analogies; Updated Storyboard
concept that best
meets the CTQs Assumption Busting;
within budget and Morphological Box.
resource constraints. Pugh Matrix
Tollgate Review
Forms
STEP TOOLS OUTPUTS
DESIGN the QFD Matrix Tested and approved
product high-level design
Simulation
lDevelop the high-level Tested and approved
and detailed design. Prototyping detailed design

lTest the design Design Scoreboard Detailed updated risk

components. assessment

FMEA / EMEA
lPrepare for pilot and Plans for conducting the
full-scale deployment. pilot
Planning Tools
Completed design
Process Management reviews and approvals
Chart
Tollgate Review &
Tollgate Review Forms Updated Storyboard
STEP TOOLS OUTPUTS
VERIFY Design Planning Tools Working Prototype with
Performance Documentation
Data Analysis Tools: Plans for full
Control Charts; implementation
lConduct the Pilot and
Stress Test and Debug Pareto Charts.
Control Plans to Help
the Prototype.
Process Owners
Standardization Tools: Measure, Monitor, and
l Implement the Design. Flowcharts; Maintain Process
Checklists; Capability.
lTransition Process Management
Charts. Transition Ownership to
Responsibility to the
Operations
Appropriate People in
the Organization. Completed Project Doc.

l Close the Team. Project Closure

Final Tollgate Review &

Updated Storyboard