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 Introduction to Six Sigma

Purpose

Increase Profits

Customer
Satisfaction

Reducing
Variation
Consistency

Reducing Defects

Six Sigma is a methodology for pursuing continuous improvement in customer satisfaction

and profit. It is a management philosophy attempting to improve effectiveness and efficiency.
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 Introduction to Six Sigma

Frequency
Normal Curve:

Random Variable

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 Introduction to Six Sigma

Normal Distribution:

Probability Density

z statistic

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 Introduction to Six Sigma

What is Six Sigma?

• Six Sigma is a highly disciplined process that helps us focus on
developing and delivering near-perfect products and services.
• The word Sigma is a statistical term that measures how far a given
process deviates from perfection.
• Get as close to "zero defects" as possible and specifically it means a
failure rate of 3.4 parts per million or 99.9997% perfect

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 Introduction to Six Sigma

Good Enough?

P( z <=-3) + P(z>=3) = 0.27 % 3 Sigma

P( z <=-6) + P(z>=6) = 0.000000197% or 0.00197 DPMO
With 1.5 σ shift ( allowable)
P( z <=-7.5) + P(z>=4.5) = 0.00034% or 3.4 DPMO 6 sigma
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 Overview of Six Sigma
Management

• 1978 Motorola Company

• 1981 CEO Bob Galvin -- Quality improvement program--10 X less defects in next 5
years
• 1987 Analysis of Performance----Same target less time– 10 X in 2yrs—100-- in 5 yrs
• 1988 Malcolm Bridge National Quality Award for practicing Six Sigma and Sharing it to
the world.
• Mid 90’s: GE , Whirlpool and allied companies started the implementation of six sigma
• Six Sigma is based on various quality management theories (e.g. Deming's 14 point
for management, Juran's 10 steps on achieving quality)

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 Features of Six Sigma

• Six Sigma's aim is to eliminate waste and inefficiency, thereby

increasing customer satisfaction by delivering what the customer is expecting.
• Six Sigma follows a structured methodology, and has defined roles for the
participants.

• Six Sigma is a data driven methodology, and requires accurate data collection for
the processes being analyzed.
• Six Sigma is about putting results on Financial Statements.
• Six Sigma is a business-driven, multi-dimensional structured approach for:
o Improving Processes
o Lowering Defects
o Reducing process variability
o Reducing costs
o Increasing customer satisfaction
o Increased profits

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 Terminologies in Six Sigma Management

At its core, Six Sigma revolves around a few key concepts.

• Critical to Quality: Attributes most important to the customer.
• Defect: Failing to deliver what the customer wants.
• Process Capability: What your process can deliver.
• Variation: What the customer sees and feels.
• Stable Operations: Ensuring consistent, predictable processes to improve what
the customer sees and feels.
• Design for Six Sigma: Designing to meet customer needs and process capability.

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first on reducing
process variation and then on improving the process capability

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 Elements of Six Sigma

Define
Customers Quality

Improve
Processes

Roles
Employee &
Responsibilities
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 Voice of Customer (VoC)

Voice of the customer (VoC) is a term used in any business to describe the in-
depth process of capturing customer's expectations, preferences and dislikes.
Ref:
ustoday.com

Ref: colorbox.com

Affordable Stylish Washable

Fogging Speaking Back of Ear

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 Voice of Process (VoP)

The Voice of the Process (VOP) basically describes what the process is telling you:

Achieve Control

Process

Signals

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 Voice of Process (VoP)

• One of the best ways to find out the Voice of the Process is to use a control chart.

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VoC vs VoP

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 PDCA

The PDCA (Plan-Do-Check-Act) model first introduced by Walter Shewhart in 1929 and
popularized by W. Edwards Deming in the 1950s as “a flow diagram for learning, and for
improvement of a product and a process”
It is an iterative, four-stage approach for continually improving processes, products or
services, and for resolving problems.
It involves systematically testing possible solutions, assessing the results, and
implementing the solutions
The PDCA cycle provides a feedback mechanism for continual quality improvement.

PDCA is one approach toward Total Quality Management, and the basis on which Six
Sigma’s DMAIC model rests

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 PDCA Cycle
Plan – Do– Check – Act

Plan
Identify The Analyze The
Problem Problem
• Identify the problem to be examined • Divide overall system into individual
• Formulate a specific problem statement to processes - map the process
clearly define the problem • Brainstorm potential causes for the problem
• Set measurable and attainable goals • Collect and analyze data to validate the root
• Identify stakeholders and develop cause
necessary communication gain approval • Verify or revise the original problem
statement

Tools :
Direct observation of process, Process mapping, Flowcharting
Cause and Effect diagrams and Pareto analysis
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 PDCA Cycle

Do

Implement a
Develop Solutions Solution

•Establish experimental •Implement the experiment/solution on

success criteria a trial or pilot basis
•Design experiment to test
hypothesis
Tools:
•Gain stakeholder approval
• Design of Experiment (DOE)
and support for the chosen
• On job training
solution
• Stakeholder management & communication
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 PDCA Cycle

Check

Achieve desired
Evaluate the result
goals

• Gather/analyze data on the • If YES go to act

solution • Else go to plan, revise
• Validate hypothesis hypothesis/problem statement

Tools:
• Direct observation of process
• Graphical analysis
• Control charts MED GEC
 PDCA Cycle

Act

Look for
Implement the improvement
solution opportunities

• Identify systemic changes and training needs

• Plan ongoing monitoring of the solution

Tools: • Continuous improvement

• Process mapping (new process)

• Standardization of work and process
• Error proofing

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 PDCA Cycle

Plan

Do

Check
Improvement

No
Goal?

Act
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 Roles and Responsibilities

There are seven specific responsibilities or "role areas" in a Six Sigma program, which are
as follows.
Leadership
Team

Sponsor

Implementation
Leader

Coach

Team Leader

Team Member

Process Owner MED GEC

 Roles and Responsibilities
Leadership
Team

A leadership team or council defines the goals and objectives in the Six Sigma process.

Responsibilities:
• Defines the purpose of the Six Sigma program
• Explains how the result is going to benefit the customer
• Sets a schedule for work and interim deadlines
• Develops a mean for review and oversight
• Support team members and defend established positions

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 Roles and Responsibilities
Sponsor

Six Sigma sponsors are high-level individuals who understand Six Sigma and are
committed to its success.
The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma
project.
Sponsors are the owners of processes and systems, who help initiate and coordinate Six
Sigma improvement activities in their areas of responsibilities.

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 Roles and Responsibilities
Implementation
Leader

The person responsible for supervising the Six Sigma team effort, who supports the
leadership council by ensuring that the work of the team is completed in the desired
manner, is the Implementation Leader.
Ensuring success of the implementation plan and solving problems as they arise, training
as needed, and assisting sponsors in motivating the team are some of the key
responsibilities of an implementation leader.

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 Roles and Responsibilities
Coach

Coach is a Six Sigma expert or consultant who sets a schedule, defines result of a project,
and who mediates conflict, or deals with resistance to the program.

Duties include working as a go-between for sponsor and leadership, scheduling the work
of the team, identifying and defining the desired results of the project, mediating
disagreements, conflicts, and resistance to the program and identifying success as it
occurs.

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 Roles and Responsibilities
Team Leader

• It is an individual responsible for overseeing the work of the team and for acting as a go
between with the sponsor and the team members.
• Responsibilities include communication with the sponsor in defining project goals and
rationale, picking and assisting team members and other resources, keeping the project
on schedule, and keeping track of steps in the process as they are completed.

Team Member

• An employee who works on a Six Sigma project, given specific duties within a project,
and has deadlines to meet in reaching specific project goals.
• Team members execute specific Six Sigma assignments and work with other members of
the team within a defined project schedule, to reach specifically identified goals.

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 Roles and Responsibilities
Process Owner

The individual who takes on responsibility for a process after a Six Sigma team has
completed its work.

Extended Definitions of Roles – Belt Colours

Six Sigma Certification Level Hierarchy:

• Six Sigma Champion
• Six Sigma Master Black Belt
• Six Sigma Black Belt
• Six Sigma Green Belt
• Six Sigma Yellow Belt
• Six Sigma White Belt

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 Roles and Responsibilities

White Belt
Six Sigma White Belt is the basic level of certification that provides you
information about basic concepts of Six Sigma.
White Belts can not only assist with change management within an
organization, but they can also participate on local problem solving teams
that support projects

Process Owner

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 Roles and Responsibilities

Yellow Belt
Six Sigma Yellow Belts are those who have basic knowledge of Six
Sigma but don't lead their own projects. While they're not project leaders,
they often start projects using a method known as PDCA, which stands for
Plan, Do, Check, and Act.
Yellow Belts are responsible for identifying certain processes that need
improvement. The Yellow Belt is an introductory position within Six
Sigma that is often called upon to assist Green and Black Belts with projects.

Team Member

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 Roles and Responsibilities

Green Belt
Six Sigma Green belts are skilled team players and their aim is to improve
process quality. They help to bridge the gap between the Six Sigma theory
and real-world application.
Six Sigma Green Belt candidates play a vital role in improving the process,
data inspection or Project Management.
The Green Belts have two primary tasks: first, to help successfully deploy
Six Sigma techniques, and second, to lead small-scale improvement projects
within their respective areas.

Team Member

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 Roles and Responsibilities

Black Belt
The person possessing this belt has achieved the highest skill level and is an
experienced expert in various techniques.
As applied to the Six Sigma program, the individual designated as a Black
Belt has completed a thorough internal training program and has
the experience of working on several projects.
The black belt holder is usually given the role of, the person who is
responsible for execution and scheduling.
A certified Black Belt exhibits team leadership, understands team dynamics,
and assigns their team members with roles and responsibilities

Team Leader
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 Roles and Responsibilities

Master Black Belt

Master Black Belt who is a Black Belt with additional training and
experience.
He or she has been able to gain experience managing several projects and
has a deep expertise and knowledge base in the tools and methods of Six
Sigma.
A person who deals with the team or its leadership; but is not a direct
member of the team itself.
The Master Black Belt is available to answer procedural questions and
to resolve the technical issues that come up.
Coach

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 Roles and Responsibilities

Champion
The Six Sigma Champion is a senior or middle level executive whose role is
choosing and sponsoring specific projects.
He or she ensures the availability of resources. A champion is the person on
the team who knows the business at hand inside and out as well as the Six
Sigma Methodology.
They are responsible for ensuring that whatever projects are undertaken
mesh well with the goals and intentions of the business or corporation
overall.

Implementation Leader

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 Data Analysis

1. Measures of Central Tendency

• Arithmetic mean
• Median
• Mode
2. Measures of Variation
• Range
• Semi-interquartile range
• Mean deviation
• Standard deviation
3.Skewness
4. Kurtosis
5. Process Capability
6. Measurement system analysis using Gage R&R.
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 Measures of Central Tendency

Measures of Central Tendency

• Arithmetic mean ( Mathematical Average)
• Median
Positional
• Mode Average

To find the arithmetic mean, add the values of all terms and them divide sum by the number
of terms, the quotient is the arithmetic mean.

X1+X2+X3…….Xn
Arithmetic Mean =
n

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 Example 1
Arithmetic Mean

Class 20-30 30-40 40-50 50-60 60-70

Frequency 8 26 30 20 16

Class Mid f fx
Value(x)
20-30 25 8 200
30-40 35 26 910
40-50 45 30 1350
50-60 55 20 1100
60-70 65 16 1040
Total --- 100 4600

AM = (Σfx)/n= 4600/100 = 46

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 Example 2
Arithmetic Mean

Class 0-11 11-22 22-33 33-44 44-55 55-66

Frequency 9 17 28 26 15 8

Class Mid f fx
Value(x)
0-11 5.5 9 49.5
11-22 16.5 17 280.5
22-33 27.5 28 770
33-44 38.5 26 1001
44-55 49.5 15 742.5
55-66 60.5 8 484
Total --- 103 3327.5

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 Measures
MeasuresofofCentral
CentralTendancy
Tendency
Median

The median is defined as the measure of the central term, when the given terms are
arranged in the ascending or descending order of magnitudes.
In other words the median is value which total of the frequencies above this
value is equal to the total of the frequencies below this value.
The median is the value of the variable which divides the group into two
equal parts one part comprising all values greater, and the other all values less then the
median

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 Measures of Central Tendency

Procedure :
1. Arrange the variables in ascending or descending order
2. Case A : Odd number (n) of variates:
(n+1)/2th = Median
Case B: Even number (n) of variates:
Mean of n/2th and (n/2)+1th gives the Median

48 85 47 90 66 68 74 39 85

88 47 56 66 50 42 74 69 70

Above table shows the marks of 18 students in a subject. Calculate the mean and
median
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 Measures
MeasuresofofCentral
CentralTendancy
Tendency
Ascending order
n/2th
39 42 47 47 48 50 56 66 66

68 69 70 74 74 85 85 88 90
(n/2)+1th

n= 18

Mean = 64.66

Median= (66+68) / 2 = 67

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 Measures of Central Tendency

Mode

The mode is that value (or size) of the variate for which the frequency is
maximum or the point of maximum frequency or the point of maximum density.
In other words, the mode is the maximum ordinate of the ideal curve which gives the
closest fit to the actual distribution.

X 1 2 3 4 5 6 7 8 9

Frequency 1 2 1 0 3 1 2 1 2

Mode = 5

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 Measures of Central Tendency

Example:
1. Following table shows the values of percent humidity for a period of 20 days of a
city.
Calculate Mean, median and mode.

56.5 55 58.3 59.4 45.6 39.2 41.3 51.6 52.3 46

51.3 58.9 45.8 56.1 52.9 55.8 54.2 52.6 45.2 50

Answers: Mean =
Median =
Mode=

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 Measures of Central Tendency

Example:
2. Following table shows the values of CO in gms /km of 11 BS IV diesel vehicles that
visited a particular pollution centre. Calculate the Mean median and mode.

0.42 0.41 0.35 0.48 0.38 0.41 0.31 0.32 0.58 0.36 0.34

Answers: Mean =
Median =
Mode=

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 Measures of Central Tendency
Median ( for grouped series)

Md = L + ( n/2 – c.f )X i
f

L = lower limit of median class

c.f. = total of all frequencies before median class
f = frequency of median class
i = class width of median class.

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 Measures of Central Tendency

Example1 . Find the median for the following distribution:

Wages in Rs. 0-10 10-20 20-30 30-40 40-50

No. of workers 22 38 46 35 20

Solution:
Cumulative Frequencies
Wages in Rs. No. of Workers (f) (c.f.)
0-10 22 22
10--20 38 60
20-30 46 106
30-40 35 141
40-50 20 161

(( 161/2) – 60))
= 20 + x 10 = 20+4.46=24.46
46
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 Measures of Central Tendency

Example2 . Find the median for the following distribution:

Wages in Rs. 0-10 10-20 20-30 30-40 40-50 Skewness

No. of workers 12 8 46 65 30 Skewness

Solution:
Cumulative Frequencies
Wages in Rs. No. of Workers (f) (c.f.)
0-10 12 12
10--20 8 20
20-30 46 66
30-40 65 131
40-50 30 161

= 30 + (( 161/2) – 66))x 10 = 30+2.23=32.23

65
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 Measures of Central Tendency

Example2 . Find the median for the following distribution:

Wages in Rs. 0-10 10-20 20-30 30-40 40-50 50 - 60

No. of workers 12 8 46 65 30 00

Solution:
Cumulative Frequencies
Wages in Rs. No. of Workers (f) (c.f.)
0-10 12 12
10--20 8 20
20-30 46 66
30-40 65 131
40-50 30 161
50-60 00 161

= 30 + (( 161/2) – 66))x 10 = 30+2.23=32.23

65
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 Measures of Central Tendency

Example 2. Find the median of the following frequency

distribution:

Marks No. of students Marks No. of students

Less than 10 15 Less than 50 106

Less than 20 35 Less than 60 120

Less than 30 60 Less than 70 125

Less than 40 84

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 Measures
MeasuresofofCentral
CentralTendancy
Tendency

Marks No. of Students f Cumulative Frequencies (c.f.)

0-10 15 15
10--20 20 35
20-30 25 60
30-40 24 84
40-50 22 106
50-60 14 120
60-70 5 125

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 Measures of Central Tendency

Mode ( for grouped data)

f1 – f0
Mode = L + 2f1 – f0 –f2 X i

L = lower limit of class,

f1 = frequency of modal class,
f0 =frequency of the class just preceding to the modal class,
f2 =frequency of the class just following of the modal class,
i =class interval

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 Measures of Central Tendency

Example Compute the mode of the following distribution:

Class : 0-7 7-14 14-21 21-28 28-35 35-42 42-49

Frequency :19 25 36 72 51 43 28

Solution.
Here maximum frequency 72 lies in the class-interval 21-28. Therefore 21-28 is
the modal class. f1 – f0
Mode = L + 2f1 – f0 –f2 X i

Mode =25.42

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 Partition Values

1 1
2 2
3 3
4 4 Q1 (Lower Quartile)
5 5
6 6
7 7
8 8 Median
9 9
10 10
11 11
12 12 Q3 ( Upper Quartile )
13 13
14 14
15 15

Median
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 Partition Values
Compute Q1, Q2, Q3 for following data

10.1 10 10.4 10.8 9.5 9.2

10.2 10.5 10.5 11.6 9.9 10.9

10.3 10.4 10.6 12 9.8 8.8

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 Partition Values

The given series can be divided into four, ten and hundred equal pars.
The values of the variate dividing into four equal parts are called Quartile, into ten equal
parts are called Decile and into hundred equal parts are called Percentile.
Quartile Decile

DY = L + (Y)x(n)/10 – c. f x i
Q1 = L + n/4 – c. f x i
f
f

Q3 = L + 3n/4 – c. f x i Y= 1 to 10
f

Percentile
.
PZ= L + (Z)x(n)/100 – c. f x i
f

Z= 1 to 100 MED GEC

 Measures of Central Tendency

Example :
Compute the median , lower and upper quartiles, fourth decile and 70th percentile for
the following distribution:

Marks group 5--10 10--15 15--20 20--25 25--30 30--35 35--40 40--45
Number of
students 5 6 15 10 5 4 2 2

Marks group Frequency Cumilative frequency

5--10 5 5
10--15 6 11
15--20 15 26
20--25 10 36
25--30 5 41
30--35 4 45
35--40 2 47
40--45 2 MED GEC
49
 Measures of Central Tendency
Identify
a. Median class b. Lower Quartile class c. Upper Quartile class
49/2=24.5 49/4= 12.25 (3x49)/4 = 36.75

d. 4th Decile Class e. 70th Percentile Class L= 15 , c.f =11, f = 15 , i = 5, n = 49

(4/10)x49= 19.6 (70/100)x49 = 34.3
L= 25 , c.f =36, f = 5 , i = 5, n = 49

L= 20 , c.f =26, f = 10 , i = 5, n = 49

Marks group Frequency Cumilitive frequency

5--10 5 5
10--15 6 11
15--20 15 26
20--25 10 36
25--30 5 41
30--35 4 45
35--40 2 47
40--45 2 MED GEC 49
 Measures of Central Tendency

Median, Lower Quartile, 4th Decile

L= 15 , c.f =11, f = 15 , i = 5, n = 49

Md= L + n/2 – c. f x i 49/2 – 11 x 5

= 15 +
f 15

Q1 = L + n/4 – c. f x i 49/4 – 11 x 5
= 15 +
f 15

D4= L + 4n/10 – c. f x i 4*49/10 – 11 x 5

= 15 +
f 15

Md= 19.5 Q1= 15.416 Q3=25.75

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 Measures of Central Tendency

Upper Quartile
L= 25 , c.f =36, f = 5 , i = 5, n = 49

Q3 = L + 3n/2 – c. f x i 3*49/2 – 36 x 5
= 25 +
f 5

70th Percentile
L= 20 , c.f =26, f = 10 , i = 5, n = 49

70 n/100 – c. f x i 70*49/100 – 26 x 5
P70= L + = 20 +
f 10

Md= 19.5 Q1= 15.416 Q3=25.75 D4 = 17.98 P70=24.15

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 Measures of Variation

1. The Range:
• It is the simplest possible measure of dispersion.
• The range of a set of numbers (data) is the difference between the largest and
the least numbers in the set i.e. values of the variable.
• If this difference is small then the series of numbers is supposed regular and if
this difference is large then the series is supposed to be irregular.

Example : Compute the range for the following observation

15 20 25 25 30 35
Solution: Range = Largest – Smallest
i.e., 35-15=20

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 Measures of Variation

2. Semi-inter-quartile range:
• The inter quartile range of a set of data is defined by Inter-quartile range = Q3-
Q1
• where Q1 and Q3 are respectively the first and third quartiles for the data.
• Semi-inter quartile range (or quartile deviation) is denoted by Q and is defined by
Q =(Q3 – Q1)/2
• The semi-inter-quartile range is a better measure of dispersion than the range and
is easily computed.

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 Measures of Variation

3. Variance
n
Σ ( xi – mean )2
= i=1
n-1

4. Standard deviation:

n
Σ ( xi – mean)2
i=1
=
n-1

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 Parameter versus Statistic

Population Sample

P S

Number : N n
Mean: μ x̅
Variance : σ2 s2
Std Deviation: σ s

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 Measures of Variation for sample
3. Variance
n
Σ ( xi – x̅ )2
S2 = i=1
n-1

4. Standard Deviation

n
S= Σ ( xi – x̅ )2
i=1
n-1

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 Measures of Variation

Example: Calculate the variance and standard deviation for the following

Time 39 32 29 28 32 45 41 37 39 32 38 27 40 34

Solution : n = 14
x̅ = 35.2

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 Measures of Variation

Time (s) ( xi - x̅ ) ( xi - x̅ )2
39 3.79 14.36
32 -3.21 10.30
29 -6.21 38.56
28 -7.21 51.98
S2 = 29.41
32 -3.21 10.30
45 9.79 95.84 S = 5.42
41 5.79 33.52
37 1.79 3.20
39 3.79 14.36
32 -3.21 10.30
38 2.79 7.78
27 -8.21 67.40
40 4.79 22.94
34 -1.21 1.46
382.36
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 Variance and Std. Deviation for
Grouped Data

Find an estimate of the mean, variance and standard deviation of the following data for
the marks obtained in a test by 88 students.

Marks 0--10 10--20 20--30 30--40 40--50

Frequency 6 16 24 25 17

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 Mean, Variance and Std. Deviation for
Grouped Data

Marks Mid Range(x) f fx x2 fx2

x̅ = (Σfx)/n= 2510/88 = 28.52

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 Variance and Std. Deviation for
Grouped Data

Variance:
S2 = (Σfx2) __ x̅2 = 83800 __ (28.52)2 = 138.72
n 88

S. D = (138.72)1/2 = 11.78

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Variance and Std. Deviation for
Grouped Data

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 Skewness

• By skewness in some frequency distribution, we mean the lack in symmetry.

• If the frequencies are symmetrically distributed about the mean, then the distribution is
called symmetrical.

• Skewness is also termed as asymmetry.

• Skewness denotes the tendency of distribution to depart from symmetry.
• Skewness or asymmetry is the attribute of a frequency distribution that extends further on
one side of the class with the highest frequency that on the other.

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 Skewness

M=Md=Mo

We know that for a symmetrical distribution the mean, median and mode coincide.
Therefore, skewness in a distribution is shown when these three averages do not
coincide.

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 Positive Skewness

Back

The skewness is positive if Mo<Md<M and negative if M<Md<Mo, where M,

Md and Mo are mean, median and mode respectively.
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 Measure of skewness

First coefficient of skewness :

Q3 + Q1 – 2Md
JQ =
Q3 – Q1

Second coefficient of skewness:

M – Mo
J=
S

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 Example :
Compute the first and second coefficient of skewness for following data

Marks group 5--10 10--15 15--20 20--25 25--30 30--35 35--40 40--45
Number of
students 5 6 15 10 5 4 2 2
First coefficient of skewness :

Q3 + Q1 – 2Md
JQ = = 0.21
Q3 – Q1
Second coefficient of skewness

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