Operational

Excellence
Six Sigma

Six Sigma

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 Understand the Basics of the Six Sigma

 Application of six sigma in different industries
 Theory behind six sigma
 DMAIC
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What is Six Sigma?

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 A measure of quality that strives for near perfection

 A methodology for eliminating defects in any process

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 Six Sigma seeks to improve the quality of process outputs

by identifying and removing the causes of defects (errors)
and variation in manufacturing and business processes.
 Operational
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Six Sigma According To:

Motorola
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At Motorola University (Motorola's Six Sigma training and

consultancy division), we think about Six Sigma at three
different levels:

 As a metric
 As a methodology
 As a management system
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 A scale for levels of 'goodness' or quality.

 Six Sigma' equates to 3.4 defects per one million
opportunities (DPMO).
 A defect reduction effort in manufacturing.
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 As Six Sigma has evolved, there has been less emphasis

on the literal definition of 3.4 DPMO, or counting defects in
products and processes. Six Sigma is a business
improvement methodology that focuses an organization
on:
 Understanding and managing customer requirements
 Aligning key business processes to achieve those
requirements
 Utilizing rigorous data analysis to minimize variation in
those processes
 Driving rapid and sustainable improvement to business
processes.."
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At the heart of the methodology is the DMAIC model for

process improvement and work as a management system.

 Define opportunity
 Measure performance
 Analyze opportunity
 Improve performance
 Control performance
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Six Sigma According To:

GE
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General Electric Improve

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 "Six Sigma is a highly disciplined process that helps us

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.
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General Electric Improve

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Six Sigma revolves around a few key concepts:

 Critical to Quality: Attributes most important to the
customer
 Defect: Failing to deliver what the customer wants
 Process Capability: What your process can deliver
 Variation: What the customer sees and feels
 Stable Operations: Ensuring consistent, predictable
processes to improve what the customer sees and feels
 Design for Six Sigma: Designing to meet customer needs
and process capability."
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Six Sigma According To:

Isixsigma
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Isixsigma
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“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' in manufacturing and service-related
processes.”
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Operational Excellence Training

 Operational
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The Theory Behind:

Six Sigma

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 Six sigma reflects the goal of having the customer’s

specification limits of the items produced by a process be
twice the natural variation (± 3 α) of the process output
(the process variation to be half the specification limits) for
example suppose the output of the process are normally
distributed.
 By the definition of ± 3 α, 99.17% of the outputs are within
± 3 α of the mean and therefore .27% are outside ± 3 α of
the mean. Thus if the specification limits of the products
are set equal to ± 3 α for the process we could expect .
27% of the outputs to be out of specification. That is we
could expect 2.7 units per thousand of 2700 parts per
million to be out of specification
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 Now we decide that defect rate of 2700 ppm is too high. If

the specification limits are kept at the same place and the
process is improved so the output variation is much less,
the probability of producing a unit out of specification will
go down. In particular suppose the process is improved to
the point where the interval of natural variation (± 3 α) of
the process is half of the interval of the specification limits
(which then by definition will be ± 6 α for the process
outputs). Then, the probability of producing a unit outside
the ± 3 α interval remains about two parts per billion.
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 'Six Sigma' name (Sigma is in fact Greek, for the letter 's',
and a long-standing symbol for a unit of statistical variation
measurement)

 Sigma is Greek for the letter 'S', and the term 'sigma' has
been used for many years by statisticians, mathematicians
and engineers, as a measurement unit of statistical
variation.
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 Train its people to focus on key performance areas

 Understand where the organization wants to go (its strategy,
related to its market- place)
 Understand the services that the organization's customers
need most
 Understand and better organize main business processes that
deliver these customer requirements.
 Aligning critical improvement efforts to business strategy.
 Mobilizing teams to attack high-impact projects.
 Accelerating the improvement of business results.
 Governing efforts (of teams and people) to achieve and sustain
improvements.

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(Distribution Shifted ± 1.5σ )

σσ PPM
PPM
22 3
30
08
8,5
,5 337
7
33 66
66 ,8
,8 0
07
7
44 66 ,21
,210
0
55 2
23333
66 3
3.4
.4
Process
Process Defects
Defectsper
perMillion
Million
Capability
Capability Opportunities
Opportunities

Sigma is a statistical unit of measure which reflects process

capability. The sigma scale of measure is perfectly correlated to such
characteristics as defects-per-unit, parts-per million defective, and
the probability of a failure/error.
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DMAIC
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Operational Excellence
Training
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Define Analyze
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“Solving a problem with an unknown solution”.

The problem “y” is to be defined in concrete measurable terms with an
operational definition. in the define phase, the six sigma project team
identifies a project based on business objectives and customers of the
process and their needs and requirements.
The team identifies the CTQs (critical to quality characteristics) that have
the most impact on quality – separating the “vital few” from the “trivial
many” – and creates the map to be improved.

Operational Excellence
Training
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Objectives Main Activities

 To identify & validate the
improvement opportunity
 To develop the business
processes, define critical
customer requirements, and
repair themselves to be an
effective project team.
 Validate/identify business
opportunity
 Identify stakeholders
 Identify team members
 Validate/develop map processes
 Define project Y’s
 Develop team guidelines and
ground rules

Operational Excellence
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The belt leading the project determines both the initial capability and
stability of the project Y, and determines the ability to measure the Y.
once the project has a clear definition with a clear measurable Y, the
process is studied to determine the key process Steps and key inputs
for each process.
With a prioritized list of inputs in hand, the belt will determine the
potential ways the process could go wrong or how the input could go
wrong.
During the measure phase it should begin with proper metrics. Valid
and reliable metrics to monitor the progress of the project are
established.
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Objectives Main Activities

 To identify critical measure what
are necessary to evaluate the
success. Meeting critical
customer requirements and
begin developing a methodology
to effectively collect data to
measure process performance.
 Identify input, process, and
output
 Develop operational definition
and measurement plan
 Plot and analyze data
 Determine if special cause is
exists
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 To understand the elements  Cause and effect metrics

of the six sigma calculation  Collect other baseline
and establish baseline sigma performance data
for the processes the team is  Failure modes and effects
analyzing analysis
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Through analysis, the team can determine the causes of the problem that needs improvement
and how to eliminate the gap between existing performance and the desired level of
performance. This involves discovering why defects are generated by identifying the key
variables that are most likely to create process variation.

A common error people make when they discuss the Six Sigma process is they think the DMAIC
process takes too long to accomplish improvements. This is far from the truth; often "quick hits"
are established early in the project and frequently already implemented by the time the team
reaches the Analyze phase. If the team has not already identified major improvements, then the
breakthrough often results from careful process analysis with data. Six Sigma analysis
techniques are the proper tools to uncover more difficult solutions.
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This phase is often the most fun and at the same time the most
difficult. Once problem causes are determined in the Analyze phase,
the team finds creative new improvement solutions. More often than
not simple process experimentation and simulation bring the team
big gains in this step.
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Objectives Main Activities

 To identify, evaluate and select
the right
 To develop a change
management process to assist
the organization in adapting to
the changes introduced through
solution implementation
 Design of experiment
 Response surface methods
 Generate solution ideas
 Determine solution impacts
benefits
 Evaluate the select solutions
 Develop process maps & high
level plans
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Control Improve
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Success in this phase depends upon how well we did in the previous four
phases. If we used proper change management methods starting with
identifying key stakeholders we should be on the way to success. In the
Control phase, tools are put in place to ensure that the key variables
remain within the acceptable ranges over time so that process
improvement gains are maintained. The team develops a project hand off
process, reaction plans, and training materials to guarantee performance
and long-term project savings.
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objectives Main Activities

 To understand the
importance of planning and
executing against the plan
and determine the approach
to be taken to assure
achievement of the targeted
result
 Verify reduction in roof cause
sigma improvement resulted
from solution
 Identify whether additional
solutions are necessary to
achieve goals
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 To understand how to  Identify and develop

disseminate lessons learned,
identify replication and
standardization
opportunities/processes and
develop related planes
replication and
standardization opportunities
 Integrate and manage
solutions in daily work
processes
 Integrate lessons learned
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Lower Specification Upper Specification

Limit (LSL) Limit (USL)

defects defects

Target or Normal
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±3α Analyze
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 A variation of the process is measured in Std. Dev, (Sigma) from the Mean.
The normal variation, defined as process width, is +/-3 Sigma about the
mean.

 By the definition of ± 3 α, 99.73% of the outputs are within ± 3 α of the mean

and therefore .27% are outside ± 3 α of the mean.

• That is we could expect 2.7 units per thousand or 2700 parts per million
to be out of specification
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 Companies with six-sigma processes insist that a process

making a part be capable of operating so that the design
specification limits are six standard deviation away from the
Process Mean
 For bearing (+- .005 inch)
.005/6 = .00083 inch
So to six sigma capable the process
Mean =1.250
Sd = .0083 inch
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 It can be shown that a design which can accept TWICE THE NORMAL
VARIATION of the process, or +/- 6 sigma, can be expected to have no
more than 3.4 parts per million defective.

• even if the process mean shifts by as much as +/- 1.5 sigma.

 In the same case of a product containing 1200 parts/steps, we would now

expect only 0.0041 defects per unit (1200 x 0.0000034).
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 To quantify this, Capability Index (Cp) is used; where: Control

Capability Index Cp
= Design specification width / Process width

 However, the process mean can shift. When the process mean is shifted
with respect to design mean, the Capability Index is adjusted with a factor k,
and becomes Cpk.
Cpk = Cp(1-k),
where:
k Factor = Process Shift / Design Specification
Width
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