Six Sigma

Introduction to Six Sigma
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Raza Industrial Engineering Solutions, Islamabad A NUST Technology Incubation Company raiesconsulting@yahoo.com
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Defining Six Sigma
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The simplest definition of Six Sigma is to eliminate defects / waste and to mistake proof the process that create value for customers A Six Sigma initiative is more about managerial innovation than about statistical process control. In essence, Six Sigma initiative leads to a culture that strives for continuous improvement of products, services, processes and behaviors
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Why Six Sigma ?
Mail Delivery

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99 % defect free (3.8 ) means 20,000 lost articles per hour While delivery at 6 (99.99966 % defect free) means 7 articles lost per hour 99 % defect free (3.8 ) means no electricity for 7 hours per month While at 6 (99.99966 % defect free) it means 1 hour no electricity every 34 years
Electricity
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Why Six Sigma ?
Surgeries

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99 % defect free (3.8 ) means 5000 errors per week While at 6 (99.99966 % defect free) means 1.7 errors per week
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Why Six Sigma ? Contd.

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Six Sigma Initiatives are simply a formalized, organized, strategic approach to identify and apply opportunities for innovation in products, services, and processes
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Customer Expectations Technological Change Global Competition Market Fragmentation
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Six Sigma emerged as a natural evolution in business The Current business environment now demands and rewards innovation more than ever before
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Basic Statistics
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Population is the universe under study. A population could consist of all invoices sent to customers, all customers inquires seeking technical support, or a production run Sample is small group of observations actually available Mean is the measure of central tendency of population Mode is the most frequently observed value for a characteristic
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Basic Statistics
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Numerical Examples
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An inspector checks the resistance value of five coils and records the values in ohms: 3.35, 3.37, 3.28, 3.34, and 3.30. Determine the average. Find the mode of following data: 22, 24, 24, 24, 30, 32 Find the standard deviation of the following data: 3.2, 2.9, 3.0, 2.9, 3.1, 2.9
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Normal Distribution / Curve
A bell shape curve that follows the following mathematical relation
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Standard Normal Curve
The standard normal curve is the normal curve with a mean of zero and a standard deviation of one.
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Introduction to Six Sigma

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Introduction to Six Sigma Contd.
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What factors does process of shooting arrows involve ?
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Selecting the arrow (raw material) Holding the bow steady and smoothly releasing the bowstring (human factor) The wood of the bow and strength of string (machinery) Aiming to centre (calibration and process control) Arrow in the target (product)
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Two General Kinds of Data
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2.
Discrete Data (a.k.a. Attribute Data) Type 1: One can count both the number of occurrences and non-occurrences Heads / Tails, Yes / No, Pass / Fail Type 2: One can only count the occurrences, e.g. number of scratches on a car hood, number of employee accidents per month Continuous Data (a.k.a. Variable Data) It is a measured data and decimal subdivisions are meaningful, e.g. time to answer the telephone
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Two General Kinds of Data Contd.
Manufacturing Process: Making Sheets of Glass
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Choosing Data Types
CTQ Type
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Performance Standard Source

Drawings
Continuous
Discrete
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Dimensions
Actual Dimensions
Good/Bad In/Out Tol. Pass/Fail Under/Over Estimate
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Standards, Customer, Quotes/Bids Quotes/Bids Budgets
Actual Time
Money
Actual Cost
Under/Over Budget
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Exercise: Which Type of Data is it?
1. 2. 3. 4. 5. 6. 7. 8. 9.
Cycle time for a Credit Check process Percent cream content in milk bottles Sales Hit Rate (number of sales proposals that were won) reported each month Number of defects per square yard of cloth Number of employee accidents per month Proportions of orders that were late coming out of sales dept. in daily sample of 100 orders Percent defective parts in hourly production Number of surface blemishes in four piece sets of coffee cups Length of screws in samples of size ten from production lot
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Define Phase
Define Measure
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Analyze
Improve
Control
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A. Identify Your Projects/ Customers CTQs
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B. Develop a Team Charter
C. Define and Build a High Level Process Map
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What is CTQ?
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CTQ means Critical to Quality .What does your customer think is essential and how do you set-up a project to meet their desires. External CTQs are customer driven Internal CTQs are process driven
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How Does Six Sigma Work
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Y = f (X)
Where: Y = Customer CTQ (Desired outcome) X = Controllable components of the processes
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Process Flow vs. Thinking Flow
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flow thinking
Requirements
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Requirements
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Outputs
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Process
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Inputs
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Suppliers
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Customer
The Focus is on the Customer: COPIS
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Measure Phase
Define Measure
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Analyze Improve Control
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1.Select CTQ Characteristics
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2. Define Performance Standards
3. Establish Data Collection Plan, Validate Measurement System, and Collect Data
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QFD Flowdown
Functional Requirements (HOWs)
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Part Characteristics (HOWs) Manufacturing Processes (HOWs) Part Characteristics (WHATs)
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Manufacturing Processes (WHATs)
House Of Quality #1
Fundamental Requirements (WHATs)
Customer CTQs (WHATs)
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House Of Quality #2
House Of Quality #3
Process Variables (HOWs)
Key Functional Requirements
House Of Quality #4
Key Part Characteristics
Key Manufacturing Processes
Key Process 26 Variables
Process Mapping
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A tool to represent a process graphically and come to common understanding of the different factors or steps involved in a process
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Input
Process
Output
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Cause & Effect Diagram (Fishbone Diagram)

Purpose

To provide a visual display of all possible causes of a specific problem To expand your thinking to consider all possible causes To gain groups input To determine if you have correctly identified the true problem
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When:
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Categories
Cause Cause
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Effect Effect
Problem Statement
Causes
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Your Turn
Which one does not belong here?
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People
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Distractions Insufficient Training Uniform Lack of experience Workload
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Identify Vital Few
Vital Few
Frequency or Cost
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Trivial Many
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Causes
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Failure Modes and Effects Analysis
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Identify ways the product or process can Identify ways the product or process can fail. Then plan to prevent those failures. fail. Then plan to prevent those failures.
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Concept Concept
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FMEA Links Cause to Effect
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Effect 1 Effect 1 Cause 1 Cause 1 Effect 2 Effect 2
Cause 1 Cause 1
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Effect 1 Effect 1
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Cause 2 Cause 2
Effect 2 Effect 2
Cause 1 Cause 1 Effect 1 Effect 1 Cause 2 Cause 2
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Components of a Good Performance Standard

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Operational Definition Target Performance Specification Limit Definition of Defect
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Operational Definition Example
Customer: On time means that my flight leaves the ground at the time printed on my ticket
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Airline: On time means the door to the jet-way is closed at the scheduled departure time Airline (Revised): Departure time means when the plane leaves the ground
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Think About It!
How can we best measure the airline ontime performance?

a.
b.
Record the number of flights that leaves the ground at scheduled time in a period of one month Calculate the difference between scheduled departure time and the actual departure time for each flight in a period of one month
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Good Performance Standard (contd.)

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Lower Spec. Limit
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Specification Limit Target Performance Definition of Defect
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Target
Upper Spec. Limit
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Lower Spec. Limit
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Target
Upper Spec. Limit
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9:45 Upper Spec. Limit
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Lower Spec. Limit / Target
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Lower Spec. Limit / Target
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Upper Spec. Limit
Defect
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9:30
9:45
Defect
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Analyze Phase
Define Measure
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4. Establish Process Capability
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5. Define Performance Objectives
6. Identify Variation Sources
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Which is Better?
Which route will minimize your chances of arriving late? You have 35 minutes to reach office.
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Choose:
Option 1: Route 1 is better Option 2: Route 2 is better Option 3: Insufficient data to choose
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Route 1: Mean (average) time = 25.3 min. Route 2: Mean (average) time = 20.6 min.
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Variation and Standard Deviation
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Obs. No. 1 2 3 4 5 6 7 8 9 10 So on Route 1 25 27 23 25 25 29 21 25 27 23 Route 2 20 20 20 20 21 25 15 13 14 40
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Frequency
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Mean 25.4
StDev 4.3
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Route 1
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USL
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Frequency
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Mean 20.6
StDev 7.4
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Route 2
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USL
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Process Capability
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Process capability measures the ability of your process to meet customer requirements. It compares process variability to the customers allowable variability.
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Calculate Process Capability

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Common Causes
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Special Causes
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Calculation of DPMO
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Calculation of DPMO Contd.
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Types of Yield
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Types of Yield
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Classical Yield = YC= =75% Classical yield is the number of defect-free parts for the whole process divided by the total number of parts inspected. If we say the yield is or 75%, we lose valuable data on the true performance of the process. This loss of insight becomes a barrier to process improvement. First time Yield = YFT= = 25% First time yield is the number of defect-free parts divided by the total number of parts inspected for the first time. If we say the yield is or 25%, we are really talking about the First Time Yield (FTY). This is a better yield estimate to drive improvement. Throughput Yield = YTP=P(0)=e-DPU=e-2.25=0.1054=10.54% YTp is the percentage of units that pass through an operation without any defects. This is the best yield estimate to drive improvement.
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Define Performance Objective

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Your Turn
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1. 2. 3. 4.
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We want our performance objective to exceed process entitlement. What does this mean?
False data from competitor May need to change a part of the technology in our process The data collection methodology was flawed Our process entitlement is better than we thought
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Identify Sources Of Variation

Y

= f (X)
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To get result, should we focus our behavior on the result Y or X?
Y Dependent Output Effect Symptom Monitor
X1 . . . Xn Independent Input-Process Cause Problem Control

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Historically the Y, with Six Sigma the Xs

Improve Phase
Define
7. Screen Potential Causes
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Measure
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8. Discover Variable Relationships
9. Establish Operating Tolerances
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Design of Experiments (DOE)
Types of DOE
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Screening DOE is used to identify the vital Xs for the CTQ Optimization DOE is used to determine the optimal settings for the vital Xs
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Considerations and Trade-Offs

Budget for testing Availability of personnel Time allotted for testing
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Full factorial or fractional factorial design
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Control Phase
Define Measure
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Analyze
Improve
Control
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10. Define and Validate Measurement System on Xs in Actual Application
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11.Determine Process Capability
12. Implement Process Control
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Six Sigma

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Six Sigma

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Introduction to Six Sigma

Customer Expectations Technological Change Global Competition Market Fragmentation

Introduction to Six Sigma

Introduction to Six Sigma Contd.

What factors does process of shooting arrows involve ?

Performance Standard Source

Good/Bad In/Out Tol. Pass/Fail Under/Over Estimate

Standards, Customer, Quotes/Bids Quotes/Bids Budgets

A. Identify Your Projects/ Customers CTQs

B. Develop a Team Charter

C. Define and Build a High Level Process Map

Where: Y = Customer CTQ (Desired outcome) X = Controllable components of the processes

The Focus is on the Customer: COPIS

1.Select CTQ Characteristics

2. Define Performance Standards

Part Characteristics (HOWs) Manufacturing Processes (HOWs) Part Characteristics (WHATs)

Manufacturing Processes (WHATs)

Fundamental Requirements (WHATs)

Customer CTQs (WHATs)

Process Variables (HOWs)

Key Functional Requirements

Key Part Characteristics

Key Manufacturing Processes

Key Process 26 Variables

Cause & Effect Diagram (Fishbone Diagram)

Distractions Insufficient Training Uniform Lack of experience Workload

Effect 1 Effect 1 Cause 1 Cause 1 Effect 2 Effect 2

Cause 1 Cause 1 Effect 1 Effect 1 Cause 2 Cause 2

Components of a Good Performance Standard

Operational Definition Target Performance Specification Limit Definition of Defect

How can we best measure the airline ontime performance?

Lower Spec. Limit

Specification Limit Target Performance Definition of Defect

Upper Spec. Limit

Upper Spec. Limit

9:45 Upper Spec. Limit

Lower Spec. Limit / Target

Upper Spec. Limit

4. Establish Process Capability

5. Define Performance Objectives

6. Identify Variation Sources

Calculate Process Capability

Define Performance Objective

Identify Sources Of Variation

To get result, should we focus our behavior on the result Y or X?

Y Dependent Output Effect Symptom Monitor

X1 . . . Xn Independent Input-Process Cause Problem Control

Historically the Y, with Six Sigma the Xs

8. Discover Variable Relationships

9. Establish Operating Tolerances

Budget for testing Availability of personnel Time allotted for testing

Full factorial or fractional factorial design

10. Define and Validate Measurement System on Xs in Actual Application

11.Determine Process Capability

12. Implement Process Control

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