LEAN

MANUFACTURING
Module-5 SIX SIGMA
1
POM04
Definitions of quality
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Traditional Definition
Quality means fitness for use
Modern Definition
Quality is inversely proportional to variability
Quality Improvement is reduction in variability in processes and
products
What is Six Sigma?
3
Six sigma can be best described as a business process
improvement approach that

seeks to find and eliminate causes of defects and errors,
reduces cycle times and cost of operations,
improves productivity,
better meets customer expectations, and
achieves higher asset utilization and returns on investment in
manufacturing and service processes.
Six Sigma was born when Motorola published its Six Sigma
quality programme in 1987.
What is Six Sigma?
4
Six sigma is based on three key quality principles

Focusing on customers

Critical to quality parameters (CTQs)

Continuous improvement

Employee participation and empowerment
Six sigma is based on the philosophy of integrated systems based
thinking
Six Sigma
5
Defect
Anything that does not meet customer requirements is called
defect.
Metric
A metric is a verifiable measurement of some particular characteristic
,either numerically (e.g. percentage of defects ) or in qualitative terms
(e.g. level of satisfaction poor or excellent).
In Six sigma a defect or non-conformance is a measure of quality
Defects per million Opportunities(DPMO)
6
Defects per
unit
Defects per million opportunities(DPMO)

DPMO = (Number of defects discovered/opportunities for
error)*1000000
Defined as number of defects in a given unit of product or process.
Opportunity for error = Number of units produced Opportunities for
defects per unit
Defects per million Oppurtunities(DPMO)
7
Use of DPMO is used to define quality broadly
For Six Sigma projects ,the value is 3.4 defects per million
opportunities
Defects per million Oppurtunities(DPMO)
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If the average no of bags per customer is 1.6 and the airline
recorded 3 lost bags for 8000 customers in one month .
No of defects discovered = 3
No of opportunities = 1.6 8000 = 12800
DPMO = (3/12800 ) 1000000 = 234.375
Sigma Level
Sigma Level = NORMSINV(1- Number of defects
discovered/opportunities for error) + 1.5
Sigma Conversion Table
9
DPMO & Sigma Level
10
HudsonBella company makes designer bags for several of its
client stores in Oklahoma. During
the quality inspection conducted on 500 random bags on each of
its three manufacturing lines on
Sep 5,
2012, following defects were found:
Line 1: 10 defects
Line 2: 15 defects
Line 3: 25 defects
What is the overall sigma level at which HudsonBella is operating
?
DPMO & Sigma Level
11
An electronics firm manufactures 500,000 circuit boards
per month. A random sample of 5,000 boards is inspected
every week for 5 characteristics. During a recent week, 2
defects were found for one characteristic, and one defect,
each, was found for the other four characteristics. If these
inspections produced defect counts that were
representative of the population, what is the overall sigma
level for the process? What is the sigma level for
thecharacteristic that showed 2 defects?
Sigma Problem Solving Methodology
12
The problem solving methodology used in Six Sigma is called
DMAIC (Define , Measure , Analyze , Improve , Control
Define Phase
What are the problems and their scope?
Identify the customers and the critical to quality parameters
Address project management issues such as what will need to be
done ,by whom and when.
What are the independent and dependent variables affecting the
project?
Define Phase
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The customer perception about quality attributes are updated
from time to time by conducting customer surveys.
Important tools used in this Phase
Brainstorming

Pareto Analysis

Quality Function Deployment (QFD)

Process Mapping
Project Charter
14
In the Define phase ,the project leaders create a Project
Charter.
Necessary Project Charter Areas
Project Title: It is important to the name the project with a properly
descriptive title that will allow people to quickly view and select your
project based on key words and phrases.

Ex: If you are increasing Call Centre effectiveness, a possible title
may be Call Centre Cycle time or Call Center Variation reduction.


Project Charter
15
Necessary Project Charter Areas
Black Belt/Green Belt: This is the person leading the process
improvement project . It is important to identify the project leader so
management knows who is leading the effort and others can locate
the leader for gather further knowledge at a later date.

Mentor/Master Black Belt: It is important to identify a resource for
the project leader to lean on if any project questions or issues arise.

Project Charter
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Necessary Project Charter Areas
Project Start Date:
Anticipated Project End Date

Project Charter
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Necessary Project Charter Areas
Cost of Poor Quality:
Process Importance

Project Charter
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Necessary Project Charter Areas
Process Problem
Process Start/Stop Points

Project Goals

Project Charter
19
Necessary Project Charter Areas
Team Members

Project Time Frame

Project Measurements

20
Measure Phase
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Measuring the processes that impact the CTQs and the defects
arising in the product due to the process.
Identify causal relationships between the process performance(X) and
Customer Value (Y), that is

Y =f(x)
Collect data

Measure Phase
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Important tools used in this Phase
Process Mapping

QFD

Cause and effect matrix

7 Quality control tools

Calculation of process sigma and process capability studies

Gauge R and R studies

ANOVA

Analyze Phase
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Focus on why defects ,errors or excessive variation occurs


Experiments are conducted to verify the hypothesized
relationship


Statistical thinking ,analysis and computer simulation techniques
re used
Analyse Phase
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Important tool used in this Phase

Gap analysis and improvement goals

Process map analysis

Regression analysis

ANOVA

Test of hypothesis

Improve Phase
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Focuses on removing or resolving the problem and improving the
performance measures of the CTQs

Problem solutions often entail technical and organizational
changes
Improve Phase
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Design of experiments techniques

Test of hypothesis

Important tools used:
Control Phase
27
Focuses on how to maintain the improvements over time.

Can include establishing the new standards and procedures
,training the workforce and instituting controls like check lists ,
periodic status reviews ,statistical process control charts etc.