Khalid

Mehmood Abbasi

WHAT IS SIX SIGMA?

A methodology to improve a business process by constantly reviewing, updating and re-tuning the existing process. o Six Sigma improves the process performance, decreases variation and maintains consistent quality of the process output. o This leads to defect reduction and improvement in profits, employee morale, product quality and finally customer satisfaction. o Six Sigma Strives for perfection. It allows for only 3.4 defects per million opportunities for each product or service transaction.
o

WHAT IS SIX SIGMA?

Six Sigma relies heavily on statistical techniques to reduce defects and measure quality. Philosophy of reducing defects so we can improve customer satisfaction and reduce costs Business Strategy that increases process performance resulting in enhanced customer satisfaction and improved bottom line

SIX SIGMA DEFINITIONS

Business Definition
A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.

Technical Definition
A statistical term signifying 3.4 defects per million opportunities.
4

WHY SIX SIGMA?

Intense

competitive pressures especially from rapid globalization. Greater consumer demand for high quality products and services, little tolerance for failures of any type. Top management (and stockholder) recognition of the high costs of poor quality. The availability and accessibility of large data bases and the increasing ability to explore, understand, and use the data.

Where Does Six Sigma Come From?



Necessity is the mother of invention

 Motorola A

was losing market share to foreign rivals who had better quality and lower cost.

Japanese firm took over a Motorola television factory. After implementing changes, the factory was producing with 1/20th the defect rate. Same people, same equipment, same designs, different management and different processes.

INVENTOR OF SIX SIGMA

Motorola

is known for its cool cell phones, but the company's more lasting contribution to the world is the qualityimprovement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of Six Sigma.

SIX SIGMA - FIRST GENERATION (SSG 1)

The era 1986 to 1990 is referred to as the first generation of Six Sigma, or SSG 1 for short. Pioneered at Motorola Statistical approach Measured Defects Per Million Opportunities (DPMO) Focused on:

Elimination of defects y Improving product and service quality y Reducing cost y Continuous process improvement
y

SIX SIGMA - SECOND GENERATION (SSG 2)

In

the 1990s, the focus of Six Sigma shifted from product quality to business quality. General Electric Corp. ushered in the second generation of Six Sigma, or SSG 2 as it is known. Six Sigma became a business-centric system of management. Strong measurement on bringing dollars to the bottom line. High potential candidates were selected as Black Belts.

SIX SIGMA - THIRD GENERATION (SSG 3)

Developed after the year 2000. Gen III can show companies how to deliver products or services that, in the eyes of customers, have real value. Combines Lean Manufacturing Techniques and Six Sigma. Termed as Lean Six Sigma. Korean steel maker Posco and electronics maker Samsung has begun a Gen III programme.

SIX SIGMA IMPROVEMENT METHODS

DMAIC VS. DMADV
Define

Measure

Analyze
Continuous Improvement Reengineering

Improve

Design

Control

Validate

DMAIC ROAD MAP

Control Analyze Improve

Define

Measure

SIX SIGMA DMAIC PROCESS

Control Improve Define Analyze Measure

Identify

projects that are measurable Define projects including the demands of the Customer and the content of the internal process. Develop team charter Define process map

DEFINE
Business Case Voice of the Customer
Delighters More Is Better

VOC

Key Issue

CTQ

Must Be

Project Charter
Problem Statement: Goal: Business Case: Scope: Cost Benefit Projection: Milestones:

Initial Process Mapping

Inputs Process Outputs

CUSTOMERS

SUPPLIERS

Yield: 60% Yield: 90% Yield: 45% Yield: 98%

SIX SIGMA DMAIC PROCESS

Control Improve Define Analyze Measure

Define

performance standards Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. Identify all potential causes for such problems.

MEASURE
Identify the Metrics
I P O

Identify Process Capability

LSL USL

Display Data
UCL
1000 0 -1000

Cp = 0.4 s = 2.7

X LCL

10

20

30

D B F A C E Other

Input Measures

Process Measures

Output Measures

Measure the process Validate Measurement Systems

Col # Inspector Sample # 1 2 3 4 5 Totals Averages 1 2 3 Diff 1.0 1.0 0.5 0.0 0.5 3.0 0.6 4 5 6 Diff 0.0 0.0 0.5 0.5 1.0 2.0 0.4 A 1st Trial 2nd Trial 2.0 1.0 2.0 3.0 1.5 1.0 3.0 3.0 2.0 1.5 10.5 9.5 2.1 1.9 Sum XA 4.0 2.0 B 1st Trial 2nd Trial 1.5 1.5 2.5 2.5 2.0 1.5 2.0 2.5 1.5 0.5 9.5 8.5 1.9 1.7 Sum XB 3.6 1.8

Prioritize the Metrics

O1 O2 O3 O4 I1 I2 I3 I4

Data Collection Plan

Data Collection Plan
What questions do you want to answer? Operational Definition and Procedures Data What Measure type/ How Related Sampling How/ Data type measured conditions notes where

FMEA

How will you ensure What is your plan for consistency and stability? starting data collection? How will the data be displayed?

R A

R B

SIX SIGMA DMAIC PROCESS



Control Improve Define Analyze Measure

  
     

Establish process capability Define performance objectives Identify variation sources Tools for analysis
Process Mapping Failure Mode & Effect Analysis Statistical Tests Design of Experiments Control charts Quality Function Deployment (QFD)

ANALYZE
Process Door
VA NVA
22 21

Data Door
O O O O O

Cause & Effect

20 19 18 17 16 15 14 13 12

n O n

n X

O n

n O

X n O X n X X

n X X

10

Hypothesis-Testing
Chi-Square

Design of Experiments

c
Y

t-test ANOVA

Regression Analysis
X1

Regression

. .

SIX SIGMA DMAIC PROCESS

Control

Improve Define

Analyze Measure

Screen potential causes Discover variable relationships among causes and effects Establish operating tolerances Pursue a method to resolve and ultimately eliminate problems.

IMPROVE
Generate Solutions
A B C D 4 1 3 2

Plan Implementation
1 2
A B C D
G E

10

F G H I J

Perform Cost-Benefit Analysis

Run Pilot
Full scale Original Test

Assess Risks Select the Solution

FMEA

SIX SIGMA DMAIC PROCESS

Control

Improve Define Analyze Measure

Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.

CONTROL
Document & Standardize
Training Curriculum Training Manual

Key Learnings
Results Learnings

Closure

Fill to here

Recommendations
next

QC Process Chart
Date of Issue: Revision Date Product Name Process Name Process Code # Issued by: Reason Approved by: Signature Flowchart Control/Check Points Response to Abnormality Work ImmediatePermanent Control Instructions Code # CharacWho Notes Method ho W Limits Fix Fix teristics

Process Owner

. Evaluate Project Results

12

Ownership & Monitoring

UCL

Process Change Management

Before After

s = Cp =

3.7 1.4 LSL

USL

s = 2.7 Cp = 0.4

}
A1 A2 A3 A4

Improvement

A2 A1 A3 A4

Before

After

Good

} Improvement

LCL

Step 4 changes implemented

} Remaining Gap
Target

SIX SIGMA QUALITY: DMAIC CYCLE

CASES/EXAMPLES FROM CLASSMATES 1. Define (D)
2. Measure (M)

Customers and their priorities Process and its performance Causes of defects Remove causes of defects Maintain quality

3. Analyze (A) 4. Improve (I) 5. Control (C)

DMADV OR DFSS


The DMADV project methodology, also known as DFSS ("Design For Six Sigma") five phases : Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a highlevel design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulation. Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

SIX SIGMA DMADV PROCESS

Validate Design Define Analyze Measure

Design: Develop detailed design for new process. Determine and evaluate enabling elements. Create control and testing plan for new design. Use tools such as simulation, benchmarking, DOE, Quality Function Deployment (QFD), FMECA analysis, and cost/benefit analysis.

SIX SIGMA DMADV PROCESS

Validate Design Define Analyze Measure

Validate: Test detailed design with a pilot implementation. If successful, develop and execute a full-scale implementation. Tools in this step include: planning tools, flowcharts/other process management techniques, and work documentation.

 Muhammad

Zaheer

SIGMA AND % ACCURACY

One Sigma Two Sigma Three Sigma Four Sigma Five Sigma Six Sigma Seven Sigma

Defects per Million Opportunities (DPMO) 691,500 308,500 66,810 6,210 233 3.4 0.020

% Accuracy 30.85% 69.15% 93.32% 99.38% 99.977% 99.9997% 99.999998%

LEVELS OF

SIX SIGMA

Three levels of Six Sigma are as under:

As a Metric  As a Methodology  As a Management system


AS A METRIC

The term Sigma is often used as a scale for levels of goodness or quality.
Equates to 3.4 defects per one million opportunities (DPMO). y Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.
y

AS A METHODOLOGY

A business improvement methodology that focuses an organization on:

Understanding and managing customer requirements y Aligning key business processes to achieve those requirements y Utilizing rigorous data analysis to minimize variation in those processes y Driving rapid and sustainable improvement to business processes
y

AS A MANAGEMENT SYSTEM
A top-down solution to help organizations: y Align their business strategy to critical improvement efforts y Mobilize teams to attack high impact projects y Accelerate improved business results y Govern efforts to ensure improvements are sustained Framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.

QUALITY MANAGEMENT TOOLS AND METHODS USED IN SIX SIGMA



Six Sigma utilizes many established quality-management tools that are also used outside of Six Sigma. The following table shows an overview of the main methods used;
Analysis of variance Cause & effects diagram (also known as fishbone or Ishikawa diagram) Check sheet Control chart Design of experiments Pareto analysis Regression analysis Scatter diagram

SIX SIGMA AT MOTOROLA

Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including:
y y y y y y

Sales and Marketing Product design Manufacturing Customer service Transactional processes Supply chain management

SIX SIGMA COMPANIES

Companies who have successfully adopted Six Sigma strategies include:

SIX SIGMA: REASONS FOR SUCCESS

The
y

Success at Motorola, GE and AlliedSignal has been attributed to:

Strong leadership (Jack Welch, Larry Bossidy and Bob Galvin personally involved) y Initial focus on operations y Aggressive project selection (potential savings in cost of poor quality > $50,000/year) y Training the right people

LARGE ORGANIZATIONS THAT HAVE ADOPTED SIX SIGMA

        

These are some the large US corporations referenced by Motorola Inc that have used Six Sigma. There are thousands more all over the world. 3M Advanced Micro Devices Citicorp Intel HP Microsoft Parkview Hospital Sony Texaco

BENEFITS OF SIX SIGMA

Generates sustained success Sets performance goal for everyone Enhances value for customers; Accelerates rate of improvement; Promotes learning across boundaries; Executes strategic change

38

CRITICISM

Lack

of originality Role of consultants Potential negative effects

LEAN

Lean is a process management philosophy and methodology derived mostly from the Toyota Production System (TPS). The Lean philosophy and methodology aim to optimize the flow or speed of producing goods and services by removing the traditional "8 deadly wastes": Overproduction - making or doing too much or too early Transportation - moving people, product, material, and information Motion - unnecessary human movement Correction - product, material, and information that needs fixing Over Processing - anything that is done to the product, material, and information that does not add value to the product or service Inventory - product, material, and information that is waiting to be worked Waiting - people waiting for product, material, and information to arrive Unused Employee Ideas & Talent - people's ideas not being captured and talents not being utilized

LEAN METHODS

Lean methods are used to quantify and eliminate the cost of complexity. Typical Lean process improvement techniques Include: 5S Value Stream Mapping (VSM) Visual Management Standardized Work Error Proofing Kanban Quick Changeover Total Productive Maintenance (TPM) Constraint Management

LEAN SIX SIGMA

Lean Six Sigma is a process improvement methodology that combines tools and methods of both Lean and Six Sigma, as the name implies. While Lean focuses on speed and flow, Six Sigma focuses on quality (defects and process variation). Lean does not make a process stable or under statistical control. Six Sigma does not improve the flow of information and material through a process. Nor does Six Sigma reduce non-value-added time, movement, effort, inventory, and invested capital.

TPS TOOLS
List of tools was divided into five main categories: Organizational Management Planning, Mapping, and Improvement Determining Project Priority Determining Root Cause Tracking and Preventing Defects Simulations and Controlled Experiments

LEAN MANUFACTURING

Toyota does not have a Six Sigma program in place. They use the Toyota Production System, or, as it is most commonly called in the rest of the world, Lean Manufacturing. Looking beyond Toyota, James Womack and Daniel Jones in the book Lean Thinking performed a study on 50 companies that have implemented Lean. After an initial lean conversion, the companies averaged a 50% reduction in errors reaching customers and a 50% reduction in scrap rate

Lean is the most effective methodology when used by itself (while making use of the statistical methods and problem solving tools of six sigma). Many companies that have implemented lean (such as Toyota) have superb quality without having implementing Six Sigma specifically. However, it should be noted that these companies do apply the statistical methods of Six Sigma to improve their processes. This has been going on long before the term "Six Sigma" as a program was ever used.

CONCLUSION

A gauge of quality and efficiency, Six Sigma is also a measure of excellence. Embarking on a Six Sigma program means delivering top-quality service and products while virtually eliminating all internal inefficiencies (Dedhia, 2005). A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the company's other service processes (Lucas, 2002). The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management.