Chapter 10: Principles of Six Sigma

Chapter 10
Principles of Six Sigma
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Key Idea
Although we view quality improvement tools and techniques from the perspective of Six Sigma, it is important to understand that they are simply a collection of methods that have been used successfully in all types of quality management and improvement initiatives, from generic TQM efforts, to ISO 9000, and in Baldrige processes.
Six-Sigma Metrics
any mistake or error that is passed on to a customer Defects per unit (DPU) = number of defects discovered number of units produced Defects per million opportunities (dpmo) = DPU 1,000,000 opportunities for error
Defect
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, resulting in at most 3.4 dpmo.
Key Idea
Although originally developed for manufacturing in the context of tolerancebased specifications, the Six Sigma concept has been operationalized to apply to any process and has come to signify a generic quality level of at most 3.4 defects per million opportunities.
k-Sigma Quality Levels
Problem Solving
Problem: any deviation between what should be and what is that is important enough to need correcting

Structured Semistructured Ill-structured
Problem Solving: the activity associated with changing the state of what is to what should be
7
Quality Problem Types

1.
2. 3. 4. 5.
Conformance problems Unstructured performance problems Efficiency problems Product design problems Process design problems
Key Factors in Six Sigma Project Selection
Financial return, as measured by costs associated with quality and process performance, and impacts on revenues and market share Impacts on customers and organizational effectiveness Probability of success Impact on employees Fit to strategy and competitive advantage
Problem Solving Process

1.
2.
3.
4.
Redefining and analyzing the problem Generating ideas Evaluating and selecting ideas Implementing ideas
Key Idea
A structured problem-solving process provides all employees with a common language and a set of tools to communicate with each other, particularly as members of crossfunctional teams.
DMAIC Methodology
1. 2.
3.
4. 5.
Define Measure Analyze Improve Control
Common Six Sigma Tools
Define
Describe
the problem in operational
terms Drill down to a specific problem statement (project scoping) Identify customers and CTQs, performance metrics, and cost/revenue implications
Measure
Key
data collection questions
What
questions are we trying to answer? What type of data will we need to answer the question? Where can we find the data? Who can provide the data? How can we collect the data with minimum effort and with minimum chance of error?
Analyze
Focus
on why defects, errors, or excessive variation occur Seek the root cause 5-Why technique Experimentation and verification
Improve
Idea
generation Brainstorming Evaluation and selection Implementation planning
Control
Maintain
improvements Standard operating procedures Training Checklist or reviews Statistical process control charts
Tools for Six-Sigma and Quality Improvement
Elementary statistics Advanced statistics Product design and reliability Measurement Process control Process improvement Implementation and teamwork
Design for Six Sigma
Focus on optimizing product and process performance Features

A high-level architectural view of the design Use of CTQs with well-defined technical requirements Application of statistical modeling and simulation approaches Predicting defects, avoiding defects, and performance prediction using analysis methods Examining the full range of product performance using variation analysis of subsystems and components
Key Idea
All Six Sigma projects have three key characteristics: a problem to be solved, a process in which the problem exists, and one or more measures that quantify the gap to be closed and can be used to monitor progress.
Key Six Sigma Metrics in Services

Accuracy
Cycle Cost Customer
time satisfaction
Lean Production and Six Sigma

The 5Ss: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain). Visual controls Efficient layout and standardized work Pull production Single minute exchange of dies (SMED) Total productive maintenance Source inspection Continuous improvement
Traditional Economic Model of Quality of Conformance

Total cost
Cost due to nonconformance
Cost of quality assurance
optimal level of quality
100%
Modern Economic Model of Quality of Conformance
Total cost Cost due to nonconformance
Cost of quality assurance 100%

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Chapter 10: Principles of Six Sigma

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Chapter 10

Principles of Six Sigma

k-Sigma Quality Levels

Structured Semistructured Ill-structured

Quality Problem Types

Key Factors in Six Sigma Project Selection

Problem Solving Process

Define Measure Analyze Improve Control

Common Six Sigma Tools

the problem in operational

data collection questions

generation Brainstorming Evaluation and selection Implementation planning

Tools for Six-Sigma and Quality Improvement

Design for Six Sigma

Focus on optimizing product and process performance Features

Key Six Sigma Metrics in Services

Lean Production and Six Sigma

Traditional Economic Model of Quality of Conformance

Cost due to nonconformance

Cost of quality assurance

optimal level of quality

Modern Economic Model of Quality of Conformance

Total cost Cost due to nonconformance

Cost of quality assurance 100%

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