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Six Sigma and Quality

Topics of discussion
What is quality? What is six sigma? History of six sigma Six Sigma Philosophy Six Sigma Methodology Project Implementation Six Sigma Quality Tools

What is quality?
Conformance to internal requirements Characteristic of product or service that bears on its ability to satisfy stated or implied need The result of set of activities in the generation of product or service that meets its defined criteria and provides value to customer Fitness of use- Dr Juran Efficient production that market expects- Dr Deming Value added by productive endeavor Difference between potential and actual quality is waste.

Six Sigma
Six Sigma is a fact-based, data-driven philosophy of improvement that values defect prevention over defect detection It drives customer satisfaction and bottom-line results by reducing variation and waste thereby promoting a competitive advantage (helps in producing products better, faster, cheaper) It applies anywhere variation and waste exist and every employee should be involved Six Sigma performance is equal to 3.4 defects per million opportunities (DPMO)

Error Rate and sigma levels


Sigma Level 2 3 4 5 6 % Good PPM/DPMO Cost of Quality as % of Sales Over 40% 25 - 40% 15 - 25% 5 - 15% Less than 1% 95.45 99.73 99.9937 99.99994 100 45500 2700 63 0.57 0.002

Error Rate vs Sigma Levels


800,000 700,000 600,000 DPMO 500,000 400,000 300,000 200,000 100,000 0 0 2 4 Sigma Levels 6 8

Quality Costs
Scrap, Rework, Warranty Commonly Measured Failure Costs True Failure Cost Engineering time, Management time, Shop and field downtime, Increased Inventory, Decreased capacity, Late Delivery, lost orders Hidden Failure Costs

External failure cost: warranty claims, service cost Internal failure cost: the costs of labor, material associated with scrapped parts and rework Cost of appraisal and inspection: these are materials for samples, test equipment, inspection labor cost, quality audits, etc. Cost related to improving poor quality: quality planning, process planning, process control, and training

History of six sigma


Walter A. Shewhart- Father of Statistical quality control (SPC). Developed control charts W. Edwards Deming- 14 points Create constancy of purpose for improvement of product and service. Adopt a new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost by working with a single supplier. 5. Improve constantly and forever every process for planning, production, and service. 6. Institute training on the job. 7. Adopt and institute leadership. 8. Drive out fear. 9. Break down barriers between staff areas 10. Eliminate slogans, exhortations, and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride of workmanship. 13. Institute a vigorous program of education and self- improvement for everyone. 14. Put everybody in the company to work to accomplish the transformation. 1. 2. 3. 4.

Joseph M Juran Developed Juran Triology, three managerial processes quality planning, quality control, and quality improvement for quality management Deming and Juran worked in both the United States and Japan to help businesses understand the importance of continuous process improvement. In mid 1980s Motorola started six sigma quality program after its success in a firm that manufactured TV sets and which was led by Japanese management Using Six Sigma Motorola became known as a quality leader and a profit leader After Motorola won the Malcolm Baldrige National Quality Award in 1988; the secret of their success became public knowledge and the Six Sigma revolution was on General Electric, Honeywell, Tata Steel, etc

Meaning of the term six sigma


Six Sigma is, basically, a process quality goal, where sigma is a statistical measure of variability in a process Six Sigma requires that processes operate such that the nearest engineering requirement is at least Six Sigma from the process mean

Six Sigma philosophy


All work can broken down into processes which can be defined, measured, analyzed, improved and controlled (DMAIC) Any process require inputs and produce output By controlling input we can control the output y = f (x)

Process characteristics
Inputs Process Step Machine Man Material Methods Measurement Mother Nature Management Products Services Outputs

Feedback loop

Process Steps

Six Sigma Methodology


D Define the goals of the improvement activity M Measure the existing system A Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal I Improve the system C Control the new system

Implementing Six Sigma


Focus comes from two perspectives: down from the top-level goals and up from problems and opportunities. The opportunities meet the goals at the Six Sigma project, whose selection and development become critical aspects of meeting organizational objectives Six Sigma projects link the activities of the enterprise to its improvement goals Six Sigma activities focus on the few things that matter most to three key constituencies: customers, shareholders, and employees

Success Factors
Leadership support and sponsorship Infrastructure Communication and awareness Stakeholder feedback system Process feedback system Project Selection Project deployment

Six Sigma Infrastructure


Champions and sponsors Master Black belts Black belts Green belts For a company with 1000 employees resource requirements and savings are
Master Black Belt Black Belts Projects Estimated savings 1 10 50 to 70 $9 to $14 million dollar

Recognizing improvement opportunities


Competitive Pressure

Kano Model for mapping customer requirements

CTx requirements
CTQ CTC CTP CTS CTD Critical to Quality Critical to Cost Critical to Process Critical to Safety Critical to Delivery

Quality Function Deployment (QFD)


QFD is used to link the voice of the customer directly to internal process requirement

Correlation matrix Hows (columns) Whats (rows) Relationship Matrix (Intersection of row and column)
Importance Weighting

Competitive Evaluation

Target Values Competitive Evaluation Importance Weighting

Design requirements Customer requirements Product Planning Matrix Part characteristics Design requirements Part Deployment Matrix Part characteristics Manufacturing requirements Process Planning Matrix Production operations Manufacturing requirements Production Planning Matrix

QFD using Macabe Approach

Six Sigma Define Phase


Develop the Project Charter Define scope, objectives, and schedule Define the process (top-level) and its stakeholders Select team members Obtain authorization from sponsor Assemble and train the team

Measure Phase
The objectives of the Measure stage include: 1. Process definition: to ensure the specific process under investigation is clearly defined. 2. Metric definition: to define a reliable means of measuring the process, relative to the project deliverables. 3. Establish the process baseline: to quantify the current operating results as a means of verifying previously-defined business needs, and to properly substantiate improvement results. 4. Evaluate measurement system: to validate the reliability of data for drawing meaningful conclusions.

Process Flowchart

SIPOC (Supplier Input Process Output Customer)

SIPOC diagram for husband preparing tea for wife

Cause and Effect Diagram

Pareto chart

separating the vital few from the trivial many

Mean and Standard Deviation


Mean

Standard Deviation

Process Capability Studies


Process Capability Index Cp = USL - LSL 6

Estimates the ability of a process to produce output within specification limits . Assumes process output is approximately normally distributed and the process is under statistical control

Establishing Process Baseline


Process baselines are a critical part of any process improvement effort, as they provide the reference point for assertions of benefits attained. Statistical process control (SPC) charts are used to define the process baseline If the process is statistically stable, as evidenced by the SPC charts, then process capability and sigma level estimates can be used to quantify the performance of the process relative to requirements.

Principles of SPC
A central concept in statistical process control (SPC) is that every measurable phenomenon is a statistical distribution There are three basic properties of a distribution: location, spread, and shape A phenomenon will be said to be controlled when, through the use of past experience, we can predict, at least within limits, how the phenomenon may be expected to vary in the future The basic rule of SPC is variation from common-cause systems should be left to chance, but special causes of variation should be identified and eliminated Variation between the two control limits designated by the dashed lines will be deemed as variation from the common-cause system. Any variability beyond these fixed limits will be assumed to have come from special causes of variation Any system exhibiting only common-cause variation is statistically controlled. Control limits are calculated from actual process data using valid statistical methods

Types of variation

Analyze
The key objectives of the Analyze phase include: For existing processes, analyze the value stream to identify ways to eliminate the gap between the current performance and the desired performance Analyze the sources of variation that contribute to the gap (for DMAIC) Determine the drivers, the little x s that correlate to the customer requirements (CTQ, CTS, CTC) and significantly influence the process or design Use benchmarking techniques to evaluate best in class for similar products or services.

Lean Manufacturing
Elimination of waste (non-value added activities) through continuous improvement by flowing the product at the pull of customer in pursuit of perfection Non-value added include: Overproduction- excess WIP Excess motion- due to poor workplace layout Waiting Inventory Excess movement of material Defect correction Excess processing Lost creativity 5S Seiri (sort or sifting) Seiton (set in order) Seiso (shine; also, sanitize or scrub) Seiketsu (standardize) Shitsuke (sustain or self- discipline)

Kanban, Pull Systems and Continuous Flow Manufacturing (CFM)


A kanban is a system that signals the need to replenish stock or materials or to produce more of an item. Kanban is also known as a pull approach CFM is a method in which items are produced and moved from one processing step to the next, one piece at a time. Rather than producing batches of identical products, a pulloriented organization produces a mix of products with the mix of features that customers order. In the ideal pull system, the receipt of the customer order initiates orders for the component parts to be delivered to the assembly line at scheduled times

Improve
The primary objective of the Improve of DMAIC is to implement the new system. The first consideration is to prioritize the various opportunities, if more than one proposal exists. Once a preferred approach has been determined, the new process or product design is defined and optimal settings established. This new design can then be evaluated for risks and potential failure modes. If any of these steps require changes in prior assumptions, then steps must be repeated to properly evaluate the new proposal.

FMEA (Failure Mode Effect Analysis)

Control
The main objectives of the Control stage is to: Statistically validate that the new process or design meets the objectives and benefits sought through the project Develop and implement a control plan to institutionalize the new process or design Document lessons learned and project findings

Summary
Six Sigma is a data driven and fact based continuous process improvement methodology Six Sigma drives customer satisfaction and bottomline results by accurately capturing customer requirements and incorporating them to products and services It is methodology developed to improve system efficiency by waste elimination and creation of value to customers, stakeholders and employees