Development of  Six Sigma <ul><li>Motorola launched the Six Sigma program in the 1980s </li></ul><ul><li>General Electric ...
Definitions <ul><li>  – Standard Deviation, a measure of variability </li></ul><ul><li>Six Sigma  – A quality improvement...
TQM Versus Six Sigma Senior management is held accountable for  results Senior management provides direct support Relies o...
Key Success Factors for Six Sigma <ul><li>Committed leadership from top management </li></ul><ul><li>Integration with exis...
Six-Sigma Metrics –  Measuring Defect Rate <ul><li>Defects per unit (DPU)  = number of defects discovered    number of un...
Estimating Defect Rate – Process Capability Index (Cp) <ul><li>USL/LSL : Upper & Lower Specification Limit </li></ul><ul><...
Cp Index and DPMO 0.002 2 6.8 1.5 63 1.33 2,700 1 DPMO Cp Index
Estimating Process Capability Index from A Sample -  Cpk  Index   <ul><li>XBAR : average outcome from a sample </li></ul><...
Six-Sigma Quality  (Cp =2 with Mean Shifting from the Center ) Ensuring that process variation is half the design toleranc...
k-Sigma Quality Levels <ul><li>Six sigma  results in at most  3.4 defects  per million opportunities </li></ul>
GE’s Six-Sigma  Problem Solving Approach <ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul>...
DMAIC -  Define <ul><li>Identify customers and their priorities </li></ul><ul><li>Identify business objectives </li></ul><...
DMAIC -  Measure <ul><li>Determine how to measure the processes </li></ul><ul><ul><li>Identify key internal processes that...
DMAIC -  Analyze <ul><li>Determine the most likely causes of defects. </li></ul><ul><ul><li>Identify key factors that are ...
DMAIC -  Improve   <ul><li>Identify means to remove causes of the defects. </li></ul><ul><ul><li>Confirm the key variables...
DMAIC -  Control <ul><li>Determine how to maintain the improvement </li></ul><ul><ul><li>Put tools in place to ensure that...
Tools for Six-Sigma  and Quality Improvement <ul><li>Elementary and advanced statistics </li></ul><ul><li>Product design a...
Organization for Six Sigma <ul><li>Project Champions  – project selection and management, knowledge sharing </li></ul><ul>...
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Six Sigma

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Transcript of "Six Sigma"

  1. 1. Development of Six Sigma <ul><li>Motorola launched the Six Sigma program in the 1980s </li></ul><ul><li>General Electric initiated the implementation of Six Sigma in the mid-1990s </li></ul><ul><li>Organizations in all industries have applied Six Sigma in recent years </li></ul><ul><li>Six Sigma has replaced TQM and BPR as the key strategy for quality improvement </li></ul>
  2. 2. Definitions <ul><li> – Standard Deviation, a measure of variability </li></ul><ul><li>Six Sigma – A quality improvement philosophy that focuses on eliminating defects through reduction of variation in a process </li></ul><ul><li>Defect – A measurable outcome that is not within acceptable ( specification ) limits </li></ul>
  3. 3. TQM Versus Six Sigma Senior management is held accountable for results Senior management provides direct support Relies on a selected group of highly-trained employees Encourages involvement of all employees A philosophy that focuses on defect reduction and cost reduction A management philosophy of quality improvement Six Sigma TQM
  4. 4. Key Success Factors for Six Sigma <ul><li>Committed leadership from top management </li></ul><ul><li>Integration with existing initiatives, business strategy, and performance measurement </li></ul><ul><li>Process thinking </li></ul><ul><li>Disciplined customer and market intelligence gathering </li></ul><ul><li>A bottom-line orientation and continuous reinforcement and rewards </li></ul><ul><li>Training </li></ul>
  5. 5. Six-Sigma Metrics – Measuring Defect Rate <ul><li>Defects per unit (DPU) = number of defects discovered  number of units produced </li></ul><ul><li>Defects per million opportunities (DPMO) = number of defects discovered  opportunities for error  1,000,000 </li></ul>
  6. 6. Estimating Defect Rate – Process Capability Index (Cp) <ul><li>USL/LSL : Upper & Lower Specification Limit </li></ul><ul><li>Cp = (USL –LSL) / (6  </li></ul><ul><li>Example : Time to process a student loan application (Standard = 26 working days) </li></ul><ul><li>Specification Limits : 20 to 32 working days </li></ul><ul><li>  2  working days </li></ul><ul><li>Cp = (32 – 20)/ (6*2) = 1.00 (Three Sigma) </li></ul>
  7. 7. Cp Index and DPMO 0.002 2 6.8 1.5 63 1.33 2,700 1 DPMO Cp Index
  8. 8. Estimating Process Capability Index from A Sample - Cpk Index <ul><li>XBAR : average outcome from a sample </li></ul><ul><li>S : standard deviation from a sample </li></ul><ul><li>Cpk = min { (USL-XBAR) / (3S), </li></ul><ul><li>(XBAR-LSL) / (3S) } </li></ul><ul><li>Example : XBAR = 25 days, S = 3 days </li></ul><ul><li>Cpk = min { (32-25)/(3*3), (25-20)/(3*3)} </li></ul><ul><li>= min {0.77, 0.55} = 0.55 </li></ul>
  9. 9. Six-Sigma Quality (Cp =2 with Mean Shifting from the Center ) Ensuring that process variation is half the design tolerance (Cp = 2.0) while allowing the mean to shift as much as 1.5 standard deviations.
  10. 10. k-Sigma Quality Levels <ul><li>Six sigma results in at most 3.4 defects per million opportunities </li></ul>
  11. 11. GE’s Six-Sigma Problem Solving Approach <ul><li>Define </li></ul><ul><li>Measure </li></ul><ul><li>Analyze </li></ul><ul><li>Improve </li></ul><ul><li>Control </li></ul>DMAIC
  12. 12. DMAIC - Define <ul><li>Identify customers and their priorities </li></ul><ul><li>Identify business objectives </li></ul><ul><li>Select a six sigma project team </li></ul><ul><li>Define the Critical-to-Quality (CTQ’s) characteristics that the customers consider to have the most impact on quality </li></ul>
  13. 13. DMAIC - Measure <ul><li>Determine how to measure the processes </li></ul><ul><ul><li>Identify key internal processes that influence CTQ’s </li></ul></ul><ul><ul><li>Measure the defect rates currently generated relative to those processes </li></ul></ul>
  14. 14. DMAIC - Analyze <ul><li>Determine the most likely causes of defects. </li></ul><ul><ul><li>Identify key factors that are most likely to create process variation. </li></ul></ul>
  15. 15. DMAIC - Improve <ul><li>Identify means to remove causes of the defects. </li></ul><ul><ul><li>Confirm the key variables and quantify the effects on CTQ’s </li></ul></ul><ul><ul><li>Identify maximum acceptable ranges for the key variables and a system to measure deviations of the variable </li></ul></ul><ul><ul><li>Modify the process to stay within the acceptable ranges </li></ul></ul>
  16. 16. DMAIC - Control <ul><li>Determine how to maintain the improvement </li></ul><ul><ul><li>Put tools in place to ensure that the key variables remain within the maximum acceptable ranges under the modified process </li></ul></ul>
  17. 17. Tools for Six-Sigma and Quality Improvement <ul><li>Elementary and advanced statistics </li></ul><ul><li>Product design and reliability analysis </li></ul><ul><li>Measurement </li></ul><ul><li>Process control & Process improvement </li></ul><ul><li>Implementation and teamwork </li></ul><ul><li>Customer survey and feedback </li></ul><ul><li>Lean thinking </li></ul>
  18. 18. Organization for Six Sigma <ul><li>Project Champions – project selection and management, knowledge sharing </li></ul><ul><li>Master Black Belts – instructors, coaches, technical leaders </li></ul><ul><li>Black Belts – project team leaders and team members </li></ul><ul><li>Green Belts – project team members, temporary team members </li></ul>
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