TOTAL

QUALITY
MANAGEMENT

T QM

SIX SIGMA
By: HakeemUrRehman
IBITPU

EVOLUTION OF QUALITY
FIELD
TQM+ Wave II
Lean Six
Sigma

TQM Wave I
HRM

QA
QC
Inspection/
Testing
Metrology

ISO9000
SPC
Quality
Circles

OPR MGT.

GROUP
DYNAMICS
Teams
Efficiency
BPR

Six Sigma
Knowledge
Mgt.
IT

TPM
JIT/MRP

Product Insp. to Process to System to Culture to Performance

Control
(Opr Mgt )
Change
2

SIX SIGMA
DEFINITIONS
A
Management
driven,
scientific
methodology for product and process
improvement which creates breakthroughs in
financial
performance
and
Customer
satisfaction.
Source: Motorola
A methodology that provides businesses with
the tools to improve the capability of their
business
processes.
This
increase
in
performance and decrease in process
variation lead to defect reduction and
improvement in profits, employee morale
and quality of product.
Source: ASQ

WHAT IS SIX SIGMA?

DIFFERENT OPINIONS ON THE DEFINITION OF
SIX SIGMA:
Six Sigma is a PHILOSOPHY: This perspective views all work as
processes that can be defined, measured, analyzed, improved and
controlled. Processes require inputs (x) and produce outputs (y). If
you control the inputs, you will control the outputs: This is generally
expressed as y = f(x).
Six Sigma is a SET OF TOOLS: The Six Sigma expert uses
qualitative and quantitative techniques to drive process
improvement. A few such tools include statistical process control
(SPC), control charts, failure mode and effects analysis and
flowcharting.
Six Sigma is a METHODOLOGY: This view of Six Sigma recognizes
the underlying and rigorous approach known as DMAIC (define,
measure, analyze, improve and control). DMAIC defines the steps a
Six Sigma practitioner is expected to follow, starting with identifying
the problem and ending with the implementation of long-lasting
solutions. While DMAIC is not the only Six Sigma methodology in
use, it is certainly the most widely adopted and recognized.
Six Sigma is a METRIC: it uses the measure of sigma, DPMO

WHAT IS A SIX
SIGMA As a
Measure?

1.5
Sigma
Shift
Theory

Yield

DPMO

99.997%

WHAT IS A SIX
SIGMA As a
Benchmark?
COPQ

SIGMA

3.4

< 10%

99.976%

233

10 15 %

99.4%

6,210

15 20 %

93%

66, 807

20 30 %

65%

308, 537

30 40 %

50%

500, 000

> 40 %

Source: Journal for Quality and Participation, Strategy and Planning

Analysis

WHAT IS A SIX
SIGMA As a
metrics serves a differentMetric?
purpose and

Each of these
may be used at different levels in the organization to
express the performance of a process in meeting the
organizations (or customers) requirements. We will
discuss each in detail as we do through the course.
1. Defects
2. Defects Per Unit (DPU)
3. Parts Per Million (PPM)
4. Defects Per Million Opportunities (DPMO)
5. Yield
6. First Time Yield
7. Rolled Throughput Yield (RTY)
8. Sigma Level

SIX SIGMA:
Metrics (Cont)
DPU
(Defects / Unit)
(# of Defects / # of
Units)

DPO
(Defects /
Opportunity)
(# of Defects) / (# of
Units X # of Defect
Opportunities / Unit)

Say:
10 Defects, 100 Pairs
DPU = 10/100 = 0.1 (10%)

Say:
10 Defects, 100 Pairs,
2 Opportunities / Carton
DPO = 10/(100 X 2) = 0.05
or 5% for each type

SIX SIGMA:
Metrics (Cont)
DPMO
(Defects / M.
Opportunities)
DPO X 106

SIGMA
Consult ZTable or
Excel
Sigma Level

Say:
10 Defects, 100 Pairs
2 types of defects
DPMO = 0.05 X 106 =
50,000
Yield =1DPO =10.05 = 95
%
From M.S. Excel:
=Normsinv(%Yield)+1.5

EXAMPLE:

Calculate Sigma
Level
and DPMO of a telecom

Calculate the Sigma Level

network had 500 minutes of downtime in 2005.
Product:
Network (Connectivity)
CTQ:
Up time / Down time
CTQ Measure: Minutes
CTQ Specs:
no downtime
Defect measure: One minute of Network down
Opportunity/Unit: 1
Total Defects in 2005: 500 minutes
Total Time (Minutes): 365days X 24hours X 60min. =
525,600

DPU = 500/525,600 = 0.000951

DPO = 500 / (525600 X 1) = 0.000951
DPMO= 0.000951 X 106 = 951
Yield = 1 DPO = 1 0.000951 = 0.999049

EXAMPLE:

Calculate Sigma
Level
hard drives wants to

A manufacturer of computer
measure their Six Sigma level. Over a given period of
time, the manufacturer creates 83,934 hard drives. The
manufacturer performs 8 individual checks to test
quality of the drives. During testing 3,432 are rejected.
# of Defects = 3432
# of Units = 83934
# of Defect Opportunities per Unit = 8

DPU = 3432/83934 = 0.041

DPO = 3432/(83934 X 8) = 0.0051
DPMO= DPO X 106 = 5111
Yield = 1 DPO = 1 0.0051 = 0.9949
SIGMA LEVEL = Normsinv(%Yield)+1.5 = 4.07

EXAMPLE:

Calculate Sigma
Level
A project is focused on a billing process. The team wants
to have correct bills sent to the customer. They have
defined one opportunity for this process - either the bill
is correct or not. All of the bills produced are the same in
terms of complexity. The team took a sample of 250 bills
and found 60 defects.
# of Defects = 60
# of Units = 250
# of Defect Opportunities per Unit = 1

DPU = 60/250 = 0.24

DPO = 60/(250 X 1) = 0.24
DPMO= DPO X 106 = 240,000
Yield = 1 DPO = 1 0.24 = 0.76
SIGMA LEVEL = Normsinv(%Yield)+1.5 = 2.21

EXAMPLE:

Calculate Sigma
Level
delivery orders and you find

If you have a total of 500

out that 41 of those were delivered late, and 17 were
incorrect orders.
# of Defects = 41+17 = 58
# of Units = 500
# of Defect Opportunities per Unit = 2
(delivery time and correct order)

DPU = 58/500 = 0.116

DPO = 58/(500 X 2) = 0.058
DPMO= DPO X 106 = 58,000
Yield = 1 DPO = 1 0.058 = 0.942
SIGMA LEVEL = Normsinv(%Yield)+1.5 = 3.07

EXAMPLE:

Calculate Sigma
Level
defects of one year from the

A telecom service provider complies the

inspection of 100 sites. The severity of each defect is classified in the
following:
i.
Critical
ii. Major
iii. Minor
iv. Trivial
The complete checklist comprises of 50 types of defects. The data of 2005
of 100 sites reveals the following figures:
Total # of Critical Defects: 5
Total # of Major Defects: 20
Total # of Minor Defects: 120
Total # of Trivial Defects: 155
Calculate the Sigma Value and the DPMO for the year 2005.
. # of Defects = 5 + 20 + 120 + 155 = 300
. # of Units (Opportunities) = 100
. # of Defect Opportunities per Unit = 50
. DPU = 300/100 = 3.0
. DPO = 300/(100 X 50) = 0.0600
. DPMO= DPO X 106 = 60,000
. Yield = 1 DPO = 1 0.0600 = 0.9400

SIGMA TABLE
SHORT TERM
(PROCESS NOT
SHIFTED)

LONG TERM
(PROCESS SHIFTED 1.5
SIGMA)

SIGM
A
LEVEL

Yield (OK)
%

Reject
PPM

Yield (OK)
%

Reject
PPM

68.27

317,300

30.23

697,700

95.45

45,500

69.13

308,700

99.73

2,700

93.32

66,810

99.9937

63

99.3790

6,210

99.999943

0.53

99.97670

233

99.999999
8

0.002

99.999660

3.4

SIX SIGMA: Metrics

(Cont)

Final Yield (FY)

Final Yield represents the acceptable pieces at the end of the process
divided by the pieces started. The FY excludes scrap.

FY = (Total Unit Passed) / (Total Unit

Tested)

Calculation from above example: The unit of measure must be the same for the
numerator and denominator throughout the calculation.
Process 1 Yield: 46 passed / 50 entered = 92.0%
Process 2 Yield (itself): 46 passed / 46 passed = 100%
Yield AFTER Process 2: 46 passed / 50 entered: 92.0%
Process 3 Yield (itself): 37 passed / 46 entered = 80.4%
Yield AFTER Process 3 (also the same as the final yield of entire process): 37
passed / 50 entered = Final Yield = 74%
Process 3 has the lowest yield and probably the most cost associated since all the
material, labor, and overhead costs are already in the pieces from the previous

SIX SIGMA: Metrics

(Cont)

Throughput Yield (TPY):

Also called:
FIRST PASS YIELD or
FIRST TIME YIELD (FTY)

Throughput Yield (TPY) is the number of

acceptable pieces at the end of a process
divided by the number of starting pieces
excluding scrap and rework.
TPY is the traditional quality metric for yield
Unfortunately, it does not account for any
necessary rework

SIX SIGMA: Metrics

(Cont)

Throughput Yield (TPY): Also called FIRST PASS YIELD (FIRST TIME
YIELD)

Calculation (assuming all rework only takes one time to correct):

Process 1 TPY:
40 of the 50 pieces that entered Process 1 went through Process 1 correctly the
first time. Therefore Process 1 TPY = 40 / 50 = 80.0%
Process 2 TPY:
34 of the 46 pieces that entered into Process 2 went through Process 2 correctly
the first time through. Therefore Process 2 TPY = 34 / 46 = 73.9%
Process 3 TPY:
37 of the 46 pieces that entered Process 3 went through Process 3 correctly the
first time. Therefore Process 3 TPY = 37/46 = 80.4%

SIX SIGMA: Metrics

(Cont)

Rolled Throughput Yield (RTY):

Rolled Throughput Yield is the probability of the entire process

producing zero defects. RTY is more important as a metric to
use where the process has excessive rework.

Calculation from above example:

RTY = Process 1 TPY * Process 2 TPY * Process 3 TPY
RTY = 0.800 * 0.739 * 0.804
RTY = 0.475 = 47.5%
There is a 47.5% of the entire process producing zero defects.

DESIGN FOR SIX

SIGMA

SIX SIGMA & LEAN

SIX SIGMA

SIX SIGMA
METHODOLOGIES

DMAIC METHODOLOGY
DEFINE: The problem is defined, including who the
customers are and what they want, to determine what
needs to improve. It is important to know which quality
attributes are most important to the customer, what the
defects are, and what the improved process can deliver.
MEASURE: The process is measured, data are collected,
and compared to the desired state.
ANALYZE: The data are analyzed in order to determine the
cause of the problem.
IMPROVE: The team brainstorms to develop solutions to
problems; changes are made to the process, and the
results are measured to see if the problems have been
eliminated. If not, more changes may be necessary.
CONTROL: If the process is operating at the desired level
of performance, it is monitored to make sure the
improvement is sustained and no unexpected and
undesirable changes occur.

SIX SIGMA FRAMEWORKS

Progra
m
Focus /
Theme
Methodolo
gy

Tools

SIX
SIGMA
VARIATION
Defects
Cost of Poor
Quality

DMAIC
SIPOC, CTQ,
SPC, FMEA,
DOE, QFD,
CoQ,
ANOVA,
Hypothesis,
Regression,
MSA (R & R)

Lean Six
Sigma
WASTE
/ SPEED
Cycle Time,
Delivery
Cost of
Operation

DFSS
RELIABILITY &
ROBUSTNESS
Design Features

DMAIC

DMADV

5S, Value
Mapping, Time
Study, TPM,
Cellular Prod.,
Supply Chain,
Takt Time,
Poke Yoke

VOC, QFD,
FMEA, CTQ,
Gage R & R,
DOE,
Reliability
Analysis, SPC,
Systems
Engineering

SIX SIGMA STRUCTURE

HODS /
Owners

Quality Council / Steering

Committee
Sponsors
SS Project
Champi
Process
Managers
Owner
Master ons
Black
Belt
Black
Belt
Green
Belt

Coach
Trainers
Team
Leaders
Team
Members

Green
Belt

Green
Belt

Black
Belt
Green
Belt

SIX SIGMA TOOLS

What is
Lean?

A systematic approach to identify and eliminate waste (and non

value-added activities) through continuous improvement by
flowing the product at the pull of the customer in pursuit of
perfection.

Lean Thinking is all about continuous waste elimination !

LEAN MANUFACTURING:
ELIMINATING THE WASTE
(Unreasonablene
ss)overstressing people,
Waste caused by
equipment, or systems

Waste due to unevenness or

variation

(Inconsistency)

(Waste)

TypeI
Muda:
Non-Value
added, but necessary for the
system to function
TypeII Muda: Non Value
added and unnecessary for the
system to function; the first
targets for elimination

LEAN MANUFACTURING:
ELIMINATING THE WASTE

fec
t

Types of Waste (Muda)

De

n
it o
o
M
tion
c
u
d
pro
r
e
v
O
Transportation

Transportation
Inventory
Motion
Waiting
Overproduction
Over processing
Defect
Non-utilized
people

Invent
roc
e

g
tin
ai
W

Ov
er
p

o ry

ssi
ng

COMPARISON OF
LEAN & SIX
SIGMA
Six Sigma was developed by Motorola in the
1980s to
systematically improve quality by elimination of
defects.
SIX SIGMA

LEAN

Objective

Deliver value to customer

Deliver value to customer

Theory

Reduce variation

Remove waste

Focus

Problem focused

Flow focused

Assumptions

A problem exists
Figures and numbers
are valued
System output
improves if variation in
all processes inputs is
reduced

Waste removal will

improve business
performance
Many small
improvements are
better than system
analysis

Six Sigma is a data driven philosophy and process resulting in

dramatic improvement in products/service quality and customer
satisfaction.

LEAN & SIX SIGMA

TOOLS

QUESTIONS