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Introduction to Six Sigma
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 6
Defining Six Sigma

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 The simplest definition of Six Sigma is to eliminate

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defects / waste and to mistake proof the process that
al
tri
create value for customers
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 A Six Sigma initiative is more about managerial

hi
ac

innovation than about statistical process control. In

fM

essence, Six Sigma initiative leads to a culture that

pd

strives for continuous improvement of products,

services, processes and behaviors

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 6
Why Six Sigma ?

n


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Mail Delivery

rs
 99 % defect free (3.8  ) means 20,000 lost articles

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per hour
al
While delivery at 6  (99.99966 % defect free)
tri

ne

means 7 articles lost per hour

hi


ac

Electricity
fM

 99 % defect free (3.8  ) means no electricity for 7

pd

hours per month

 While at 6  (99.99966 % defect free) it means 1
hour no electricity every 34 years
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 6
Why Six Sigma ?

n


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Surgeries

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99 % defect free (3.8  ) means 5000 errors
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
al
per week
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While at 6  (99.99966 % defect free) means

ne


hi
ac

1.7 errors per week

fM
pd

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 6
Why Six Sigma ? Contd.

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

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Six Sigma emerged as a natural evolution in business
The Current business environment now demands – and

rs


ve
rewards – innovation more than ever before
al

tri
Customer Expectations

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Technological Change
 Global Competition
hi
ac

 Market Fragmentation
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 Six Sigma Initiatives are simply a formalized, organized,

pd

strategic approach to identify and apply opportunities for

innovation in products, services, and processes

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 6
Basic Statistics

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

io
Population is the universe under study. A population

rs
ve
could consist of all invoices sent to customers, all
al
customers inquires seeking technical support, or a
tri
production run
ne


hi

Sample is small group of observations actually available

ac

 Mean is the measure of central tendency of population

fM


pd

Mode is the most frequently observed value for a

characteristic

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 6
Basic Statistics

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 6
Numerical Examples

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

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An inspector checks the resistance value of

rs
ve
five coils and records the values in ohms:
al
tri
3.35, 3.37, 3.28, 3.34, and 3.30. Determine
ne

the average.
hi


ac

Find the mode of following data: 22, 24,

fM

24, 24, 30, 32

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 Find the standard deviation of the

following data: 3.2, 2.9, 3.0, 2.9, 3.1, 2.9
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 6
Normal Distribution / Curve

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io
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A bell shape curve that follows the
al
following mathematical relation
tri
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hi
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 6
Standard Normal Curve

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The standard normal curve is the normal
al
curve with a mean of zero and a standard
tri
deviation of one.
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hi
ac
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 6
Introduction to Six Sigma

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 6
Introduction to Six Sigma Contd.

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 6
Introduction to Six Sigma Contd.

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 6
Introduction to Six Sigma Contd.

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 6
Introduction to Six Sigma Contd.

n


io
What factors does process of shooting

rs
ve
arrows involve ?

al
Selecting the arrow (raw material)
tri
 Holding the bow steady and smoothly
ne
hi

releasing the bowstring (human factor)

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 The wood of the bow and strength of string

fM

(machinery)
pd

 Aiming to centre (calibration and process

control)
 Arrow in the target (product)
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Introduction to Six Sigma Contd.

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 6
Two General Kinds of Data

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io
1. Discrete Data (a.k.a. Attribute Data)

rs
Type – 1: One can count both the number of
ve
al
occurrences and non-occurrences
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Heads / Tails, Yes / No, Pass / Fail
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Type – 2: One can only count the occurrences, e.g.

hi
ac

number of scratches on a car hood, number of

fM

employee accidents per month

pd

2. Continuous Data (a.k.a. Variable Data)

It is a measured data and decimal subdivisions are
meaningful, e.g. time to answer the telephone
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 6
Two General Kinds of Data Contd.

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Manufacturing Process: Making Sheets of Glass

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 6
Choosing Data Types

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io
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Performance

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CTQ Type Standard Continuous Discrete
al Source
tri
Good/Bad
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Dimensions Drawings Actual Dimensions In/Out Tol.

hi

Pass/Fail
ac
fM

Standards,
Under/Over
Time Customer, Actual Time
pd

Estimate
Quotes/Bids

Quotes/Bids Under/Over
Money Budgets
Actual Cost
Budget

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 6
Exercise: Which Type of Data is it?

n
Cycle time for a “Credit Check” process

io
1.

rs
ve
2. Percent cream content in milk bottles
3. al
Sales Hit Rate (number of sales proposals that were won)
tri
reported each month
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4. Number of defects per square yard of cloth

hi

Number of employee accidents per month

ac

5.
fM

6. Proportions of orders that were late coming out of sales dept.

pd

in daily sample of 100 orders

7. Percent defective parts in hourly production
8. Number of surface blemishes in four piece sets of coffee cups
9. Length of screws in samples of size ten from production lot
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 6
Define Phase

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Define Measure Analyze Improve Control

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A. Identify Your al B. Develop a C. Define and Build a
tri
Project’s/ Customer’s
Team Charter High Level Process Map
ne

CTQs
hi
ac
fM
pd

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 6
What is CTQ?

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

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CTQ means Critical to Quality .What does
al
your customer think is essential and how
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do you set-up a project to meet their
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hi

desires.
ac
fM
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 External CTQs are customer driven

 Internal CTQs are process driven
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 6
How Does Six Sigma Work

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Y = f (X)
Where:
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Y = Customer CTQ (Desired outcome)

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X = Controllable components of the

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processes
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 6
Process Flow vs. Thinking Flow

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flow

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thinking
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Requirements Requirements
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C O P I S
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Customer Outputs Process Inputs Suppliers

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The Focus is on the Customer: COPIS

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 6
Measure Phase

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Define Measure Analyze Improve Control

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1.Select CTQ al 2. Define Performance 3. Establish Data Collection
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Characteristics Standards Plan, Validate Measurement
System, and Collect Data
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hi
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 QFD Flowdown 6

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Functional

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Requirements
(HOW’s) Part Characteristics
(HOW’s)
al Manufacturing
tri
Processes
Fundamental Requirements

House
Customer CTQs

(HOW’s)
(WHAT’s)

Of House
ne

Process Variables
(WHAT’s)

(HOW’s)

Part Characteristics
Quality Of House
hi

(WHAT’s)
#1 Quality

Manufacturing Processes
Of
ac

#2 Quality House
fM

(WHAT’s)
#3 Of
pd

Quality
Key #4
Functional Key Part
Requirements Characteristics Key
Manufacturing
Processes Key
Process
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 6
Process Mapping

n
io
A tool to represent a process graphically and come

rs
ve
to common understanding of the different factors
al
or steps involved in a process
tri
ne
hi
ac

Process
fM

Input Output
pd

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 Cause & Effect Diagram 6
(Fishbone Diagram)

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

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Purpose

rs
 To provide a visual display of all possible causes of a specific problem

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 When:
 al
To expand your thinking to consider all possible causes
tri
 To gain group’s input
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 To determine if you have correctly identified the true problem

hi
ac

Cause
Cause
Categories Effect
Effect
fM
pd

Problem
Statement

Causes

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 6
Your Turn

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io
Which one does not belong here?

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ve
al
tri
People
ne
hi
ac

Distractions
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Insufficient Training
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Uniform

Lack of experience
Workload

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 6
Identify Vital Few

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Vital Few

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al
Frequency or Cost

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Trivial Many
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Causes
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 6
Failure Modes and Effects Analysis

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al
tri
Concept
Concept
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hi
ac

Identify
Identifyways
waysthe
theproduct
productororprocess
processcan
can
fM

fail.
fail.Then
Thenplan
planto
toprevent
preventthose
thosefailures.
pd

failures.

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 6
FMEA Links Cause to Effect

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al Effect 1
Effect 1
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Cause 1
Cause 1
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Effect 2
Effect 2
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Cause 1 Effect 1
Cause 1 Effect 1
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Cause 1
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Cause 2 Effect 2 Cause 1

Cause 2 Effect 2
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Effect 1
Effect 1

Cause 2
Cause 2

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Components of a Good Performance 6
Standard

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

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Operational Definition

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Target Performance
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
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Specification Limit
hi


ac

Definition of Defect
fM
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 6
Operational Definition Example

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Customer: On time means that my flight leaves

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the ground at the time printed on my ticket
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tri
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hi

Airline: On time means the door to the jet-way is

ac

closed at the scheduled departure time

fM
pd

Airline (Revised): Departure time means when

the plane leaves the ground

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 6
Think About It!

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

io
How can we best measure the airline on-

rs
ve
time performance?
al
Record the number of flights that leaves the
tri
a.
ne

ground at scheduled time in a period of one

hi

month
ac
fM

b. Calculate the difference between scheduled

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departure time and the actual departure time

for each flight in a period of one month

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 6
Good Performance Standard (contd.)

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

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Specification Limit

al
Target Performance
tri


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Definition of Defect
hi
ac
fM

Lower Spec. Limit Target Upper Spec. Limit

pd

9:15 9:30 9:45

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 6
Good Performance Standard (contd.)

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io
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Lower Spec. Limit
al Target Upper Spec. Limit
tri
ne
hi
ac

9:15 9:30 9:45

fM

Lower Spec. Limit / Target Upper Spec. Limit

pd

9:30 9:45

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 6
Good Performance Standard (contd.)

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io
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ve
al
Lower Spec. Limit / Upper Spec.
tri
Target Limit
ne
hi

Defect Defect
ac

9:30 9:45
fM
pd

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Analyze Phase
6

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Define Measure Analyze Improve Control

rs
ve
al
4. Establish Process 5. Define Performance 6. Identify Variation
tri
Capability Objectives Sources
ne
hi
ac
fM
pd

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 6
Which is Better?

n
io
rs
 Which route will minimize your chances of

ve
arriving late? You have 35 minutes to reach
al
office.
tri

ne

Route 1: Mean (average) time = 25.3 min.


hi

Route 2: Mean (average) time = 20.6 min.

ac
fM

Choose:
pd

 Option 1: Route 1 is better

 Option 2: Route 2 is better
 Option 3: Insufficient data to choose

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 6
Variation and Standard Deviation

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Obs. No. Route 1 Route 2

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1 25 20
al 2 27 20
tri
3 23 20
ne

4 25 20
hi

5 25 21
ac

6 29 25
fM

7 21 15
pd

8 25 13

9 27 14

10 23 40

So on

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 6
Variation and Standard Deviation

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io
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ve
30
Mean StDev
al 25.4 4.3
tri
ne
Frequency

20
hi
ac
fM

10
pd

20 Route 1 30
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 6
Variation and Standard Deviation

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30
Mean StDev
al 20.6 7.4
tri
ne
Frequency

20
hi
ac
fM

10
pd

20 Route 2 30
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 6
Process Capability

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

ve
Process capability measures the ability of
al
your process to meet customer
tri
requirements. It compares process
ne
hi

variability to the customer’s allowable

ac
fM

variability.
pd

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Calculate Process Capability
6

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 6
Common Causes

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 6
Special Causes

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 6
Calculation of DPMO

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 6
Calculation of DPMO Contd.

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 6
Types of Yield

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 6
Types of Yield

n
Classical Yield = YC= ¾ =75%

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

rs
Classical yield is the number of defect-free parts for the whole

ve
process divided by the total number of parts inspected. If we say
the yield is ¾ or 75%, we lose valuable data on the true
al
tri
performance of the process. This loss of insight becomes a barrier
ne

to process improvement.
 First time Yield = YFT= ¼ = 25%
hi
ac

First time yield is the number of defect-free parts divided by the

fM

total number of parts inspected for the first time. If we say the yield
is ¼ or 25%, we are really talking about the First Time Yield
pd

(FTY). This is a better yield estimate to drive improvement.

 Throughput Yield = YTP=P(0)=e-DPU=e-2.25=0.1054=10.54%
YTp is the percentage of units that pass through an operation
without any defects. This is the best yield estimate to drive
improvement.
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Define Performance Objective 6

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 6
Your Turn

n
io
rs
 We want our performance objective to
ve
exceed process entitlement. What does
al
tri
this mean?
ne

False data from competitor

hi

1.
ac

2. May need to change a part of the technology

fM

in our process
pd

3. The data collection methodology was flawed

4. Our process entitlement is better than we
thought
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Identify Sources Of Variation 6

n
io
rs
Y = f (X) To get result, should we focus

ve
our behavior on the result Y or X?
al
tri
• Y • X1 . . . Xn
ne

• Independent
hi

• Dependent
ac

• Output • Input-Process
fM

• Effect • Cause
pd

• Symptom • Problem
• Monitor • Control
Historically the Y, … with Six Sigma the Xs
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Improve Phase
6

n
io
Define Measure Analyze Improve Control

rs
ve
al
7. Screen Potential 8. Discover Variable 9. Establish Operating
tri
Causes Relationships Tolerances
ne
hi
ac
fM
pd

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 6
Design of Experiments (DOE)

n


io
Types of DOE

rs


ve
Screening DOE is used to identify the vital
X’s for the CTQ
al
tri


ne

Optimization DOE is used to determine the

hi

optimal settings for the vital X’s

ac
fM
pd

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 6
Considerations and Trade-Offs

n
io
rs


ve
Budget for testing

al
Full factorial or fractional factorial design
tri


ne

Availability of personnel
hi


ac

Time allotted for testing

fM
pd

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 6
Control Phase

n
io
Define Measure Analyze Improve Control

rs
ve
10. Define and Validate
al 11.Determine 12. Implement
Measurement System on
X’s in Actual Application
tri
Process Capability Process Control
ne
hi
ac
fM
pd

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