Six Sigma Introduction

six sigma model

What is six sigma?

Sigma ( s ) is Greek letter used to indicate standard deviation

– A sigma level provides a statistical estimation of the the defect (error) rate

– Six sigma relates to 3.4 Defects Per Million Opportunities (DPMO)

2 ways of implementing six sigma

– As a management philosophy, e.g. General Electric

– As a quality tool for problem solving , most of companies are using it in this way

Six Sigma Origins

�In 80�s, a Motorola engineer found that less than 5% of the products reached the final station without any repair with a big impact on productivity & repair costs

�The engineers decided that the traditional way of measuring defect rate (%) is not satisfying, instead to measure defects per million opportunities

�Motorola developed this new concept and created the methodology, which named Six Sigma

– As a continuous improvement tools

The results for MOTOROLA� up till 2003

�Spent $70 million on quality related education

�In 1988, won Malcolm Baldrige (the USA quality award)

�Productivity increased average of 12% /yr

�Cost of quality reduced by more than 84%

�99.7% of in-process defects eliminated

�$16 billion in manufacturing costs saved

General Electric Six Sigma Deployment

�Capacity improvement of 12-18%

�Rise in operating margin to 16.7%

�$750 million in saving

�

GE Capital Mortgage Insurance

�Cut defects 96%

�Claim payments were reduced by $8M, while borrowers were offered alternatives to foreclosure

�Reported a 160% increase in new transactions

Normal Distribution Curve

Accuracy & Precision

Why 3.4 DPMO ( Defect Per Million Opportunity) ?

Measured process may shift by much as 1.5 sigma, resulting in a max DPMO of 3.4

Six Sigma scale

Harvesting the fruits of 6 s

The Six Sigma DMAIC Model

Define

�Define and scope the project (including deliverables)

�Define an acceptable project schedule

�Achieve consensus on project definition

Measure

�Process definition

�Metric Definition

�Measure process baseline

�Evaluate Measurement System

Analysis

�Analyze value stream

�Analyze source of variation

�Determine process drivers

Improve

�Generate improvement ideas

�Prioritize improvement opportunities

�Define new process flow

�Define & mitigate failure modes

�Define new process factor levels

Control

�Maintain improvement

�Measure realized bottom-line impact

�Apply the knowledge elsewhere

The Six Sigma Tool Box

�SPC

�Engineering process control

�Operational procedures

�control plans

�Training

�Audit

Improve

�Brainstorming

�Affinity

�Mind mapping

�Benchmark

�FMEA

�DOE

�Six thinking hats technique

�Root cause analysis

�Process decision program chart

Analysis

�Scatter diagram

�Regression model

�Anova

�Multiple regression

�DOE

�Lean methods

�Value stream analysis

�Process cycle efficiency

�5 S

�Setup reduction

Measure

�Flowcharts

�Process Maps

�SIPOC

�Box-Whisker plots

�Cause & effect diagram

�Check sheets

�Interrelation digraph

�Pareto diagram

�Stem & leaf plot

�Gage R&R

�SPC control charts

�Histogram

�Process capability

Define

�Matrix diagrams

�Work breakdown structure

�Pareto diagram

�Process maps

�Financial analysis

�Affinity diagram

�Nominal group technique

�Prioritization matrix

�Project scheduling

�Activity network diagram

�Pert analysis

�Gannt chart

�Quality function deployment

How to apply six sigma (general concept)?