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Introduction to Six Sigma
Shashi Mishra
“ A program aimed at the near – elimination of defects from every product, process and transactions.”-
Tomkins ( 1997 )
Six Sigma as,
Philosophy— The philosophical perspective views all work as processes that can be defined, as
1. Customer Focus 2. Employee Engagement 3. Distaste to defect and Variation
Set of tools— The Six Sigma expert uses qualitative and quantitative techniques to drive process
improvement. A few such tools include statistical process control (SPC), control charts, failure mode
and effects analysis, and process mapping. Six Sigma professionals do not totally agree as to exactly
which tools constitute the set.
Methodology— This view of Six Sigma recognizes the underlying and rigorous approach known
as DMAIC (define, measure, analyse, improve and control). DMAIC defines the steps a Six Sigma
practitioner is expected to follow, starting with identifying the problem and ending with the
implementation of long-lasting solutions. While DMAIC is not the only Six Sigma methodology in use,
it is certainly the most widely adopted and recognized.
Metrics – In simple terms, Six Sigma quality performance means 3.4 defects per million opportunities
(accounting for a 1.5-sigma shift in the mean).
Management System- Three framework for process improvement , DMAIC, DMADV, DFSS ( ISO
13053)
WHAT IS SIX SIGMA?
History of Six Sigma
1777 – 1855 Carl Frederick Gauss introduced the concept of the normal curve
1986 Six Sigma formulated by Bill Smith in Motorola.
1988 Motorola becomes the first company to win Malcolm Baldridge National Quality Award.
1993 Allied Signal adopted Six Sigma
1995 General Electric (GE) launched the Six Sigma initiative. ( Jack Welch )
1998 Honeywell adopted Six Sigma
2000 Ford adopted Six Sigma
2005 Mass Adoption of Six Sigma
Why is Six Sigma called Six Sigma, and not Four or Five Sigma or
Eight Alpha?
• Sigma is used to designate the distribution or
spread about the mean of any process or
procedure.
• A normally distributed process if mean plus
minus 3σ range of output is between USL and
LSL then around 99.997% (or almost all) of the
output will be non-defective or the process is of
6σ level.
• Now, if the USL and LSL of a process are such that
the difference between USL and LSL is less than
6σ value of the process, then it won’t be a Six
Sigma process.
• To make this process a Six Sigma process you
have to reduce the values of σ.
• The Six Sigma methodology broadly tells
about how to reduce the value of σ and make
it a six-sigma process.
• DPMO (Defect Per Million Opportunities) is used
for counting defects in statistical processes. A Six
Sigma process will have 99.997% accuracy or 3.4
DPMO which is extremely accurate.
Calculation of DPMO
Designco 2019 Data ( 216 Inspections )
Type Sample Count Defective Sample No of Defects
$__ALL__$ 11797 762 764
Total Opportunities 58985 5 Possible Defects in each sample Assumption
DPO Defects/Opportunities 0.012952446 Defect Per Total Opportunities
DPMO Defect/Opportunities*1000000 12952
Defect Per Million
Opportunities
Sigma Level 3.727 = (NORMSINV(1-$D2))+1.5 D2=DPMO/1000000
Sigma Value DPMO Implied Performance Cost of Quality
6 3.4 World Class <10 %
5 233 10-15 %
4 6210 Average 15-20%
3 66807 20-30 %
2 308537 Non Competitive 30-40 %
Comparing Six Sigma and Lean. Essentially, Six Sigma and Lean systems have the same goal.
Lean practitioners believe that waste comes from unnecessary steps in the production process that
do not add value to the finished product, while Six Sigma proponents assert that waste results from
variation within the process.
Lean & Six Sigma
The driving force behind any Six Sigma project comes from its primary focus - "bringing breakthrough
improvements in a systematic manner by managing variation and reducing defects".
Six Sigma’s greatest strength may be the way it organizes people.. It has a belt system as follow :-
Champions – Business Leaders, provide resource and support implementations
Master Black Belts (MBB) – Experts and culture changers, mentor BBs and GBs.
Black Belts – Black Belts are full-time Six Sigma professionals. They help select Six Sigma projects and
prepare project charters. They train team members and help them design experiments and analyze
data. Black Belts are responsible for communicating progress to Champions and process owners.
Green Belts – Green Belts are typically part-time Six Sigma practitioners who spend about 25% of
their time working on Six Sigma projects. They select project team members and provide training on
the fundamentals of Six Sigma.
Based on Process , there are three frameworks for process improvement.
DMAIC – This method improves existing processes. The acronym stands for the stages of define,
measure, analyze, improve and control. It requires teams to look objectively at problems and use fact-
based statistical analysis to find ways to improve them.
DMADV/DFSS – This acronym stands for define, measure, analyze, design and verify. It is used to
develop a new product or service or to redesign a process that has reached its limits. This model
forces project teams to identify and translate customer needs into a product or service that satisfies
the customer.
How does 6 Sigma work?
Define the problem, improvement activity, opportunity for improvement, the project goals, and
customer (internal and external) requirements.
Measure process performance.
Analyze the process to determine root causes of variation, poor performance (defects).
Improve process performance by addressing and eliminating the root causes.
Control the improved process and future process performance.
DMAIC is an acronym for the five phases that make up the process
The process kicks off with a clear statement of the target business problem and the scope of the
intended improvements.
The current state is documented in great detail as is the problem to be solved.
At this point, teams also determine the objectives of improvement and map out what success looks
like.
Some organizations use formal project charters at the outset of a DMAIC cycle, while others are less
formal.
Ample documentation and detail are essential nevertheless.
1-Define
Tools are Used for DMAIC
D-Define Phase Tools Used
• Define Customers and Requirements (CTQs)
• Develop Problem Statement, Goals and
Benefits
• Identify Champion, Process Owner and Team
• Define Resources
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map
• Project Charter
• Process Flowchart
• SIPOC Diagram
• Stakeholder Analysis
• DMAIC Work Breakdown Structure
• CTQ Definitions
• Voice of the Customer Gathering
DMAIC is a data-driven approach to improvement.
That means that you need to have baseline measurements that can be compared to post-
improvement results.
Quantifiable process effectiveness measurements might include the number of defects, process
duration, process cost, or other relevant metrics.
One or more members of the team should be assigned the responsibility for measurement and the
team should agree on how frequently the measurement will take place.
2-Measure
Tools are Used for DMAIC
M – Measure Phase Tools Used
• Define Defect, Opportunity, Unit and Metrics
• Detailed Process Map of Appropriate Areas
• Develop Data Collection Plan
• Validate the Measurement System
• Collect the Data
• Begin Developing Y=f(x) Relationship
• Determine Process Capability and Sigma
Baseline
• Process Flowchart
• Data Collection
• Plan/Example
• Benchmarking
• Measurement System Analysis/Gage R&R
• Voice of the Customer Gathering
• Process Sigma Calculation
Now that the team is armed with data, a root-cause analysis is performed to determine the underlying
reason(s) for the business problem.
Many organizations find that the 5 Whys technique is a helpful way to structure the process.
Process maps are also popular.
It is important to remember that many problems have more than one root-cause.
Keeping attention on the causes, not the symptoms, helps make solutions more apparent and reduces
the tendency to become defensive or to blame people, rather than processes.
3-Analyze
Tools are Used for DMAIC
A – Analyze Phase: Tools Used
• Define Performance Objectives
• Identify Value/Non-Value Added Process Steps
• Identify Sources of Variation
• Determine Root Cause(s)
• Determine Vital Few x’s, Y=f(x) Relationship
• Histogram
• Pareto Chart
• Time Series/Run Chart
• Scatter Plot
• Regression Analysis
• Cause and Effect/Fishbone Diagram
• 5 Whys
• Process Map Review and Analysis
• Statistical Analysis
• Hypothesis Testing(Continuous and Discrete)
• Non-Normal Data Analysis
It is essential to fight the urge to leap to the Improve stage.
Proposed improvements should be implemented only after careful measurement and thoughtful
analysis.
There is an element of experimentation in DMAIC, but it should be tempered with good data and
sound logic.
Any risks associated with the improvement should be identified and communicated, along with the
steps taken to mitigate those risks.
Everyone should be on the lookout for unintended consequences so that action can be taken swiftly.
4-Improve
Tools are Used for DMAIC
I – Improve Phase Tools Used
• Perform Design of Experiments
• Develop Potential Solutions
• Define Operating Tolerances of Potential
System
• Assess Failure Modes of Potential Solutions
• Validate Potential Improvement by Pilot
Studies
• Correct/Re-Evaluate Potential Solution
• Brainstorming
• Mistake Proofing
• Design of Experiments
• Pugh Matrix
• QFD/House of Quality
• Failure Modes and Effects Analysis (FMEA)
• Simulation Software
The final step in a DMAIC cycle is Control.
It is an essential piece of the equation that is often missing when improvement work occurs without
structure.
Control is about making sure that successful improvements don’t degrade over time.
At this point teams, verify measurable improvement and determine if the improvements as
implemented have achieved the project goals.
They also update Standard Work documentation and look for other ways to integrate the lessons that
have been learned.
5-Control
Tools are Used for DMAIC
C – Control Phase: Tools Used
• Define and Validate Monitoring and Control
System
• Develop Standards and Procedures
• Implement Statistical Process Control
• Determine Process Capability
• Develop Transfer Plan, Handoff to Process
Owner
• Verify Benefits, Cost Savings/Avoidance, Profit
Growth
• Close Project, Finalize Documentation
• Communicate to Business, Celebrate
• Process Sigma Calculation
• Control Charts(Variable and Attribute)
• Cost Savings Calculations
• Control Plan
There are two approaches to implementing DMAIC:-
The first is the team approach in which individuals who are skilled in the tools and method, such as
quality or process improvement experts, lead a team.
The team members work on the project part-time while caring for their everyday responsibilities.
The quality or process improvement expert might be assigned to several projects. These are long-
duration projects taking months to complete.
The second tactic involves the kaizen event method, an intense progression through the DMAIC
process typically done in about a week.
Prep work is completed by the quality or process improvement expert, and is cantered on the define
and measure phases.
The rest of the phases are done by a team of individuals who have been pulled from their regular
duties for the duration of the kaizen event.
In most cases, the changes are piloted during the event, and full-scale implementation is completed
after the event.
It is crucial the impact of these changes—whether they are wanted or not—are monitored.
The advantage of this approach is the ability to make rapid change.
How is DMAIC deployed?
Step 1
• Select Problems and Issues
Step 2
• Define Your Goals
Step 3
• Estimate The Resources
Step 4
• Train The Steering Committee
Step 5
• Select & Identify The Right DMAIC projects
Step 6
• Select and train the right people for your Lean Six Sigma Project
Step 7
• Launch Your First Project & Align Your Trainings With Your Change Management Objectives
Step 8
• Sustain and Control your Operational Excellence Initiatives
Six Sigma Deployment
The second focuses on process design using Design For Six Sigma (DFSS) approach. DFSS typically
requires IDOV:
Identify process goals in terms of critical parameters, industry & competitor benchmarks
Design involves enumeration of potential solutions and selection of the best
Optimize performance by using advanced statistical modeling and simulation techniques and design
refinements
Validate that design works in accordance to the process goals
Sometimes a DMAIC project may turn into a DFSS project because the process in question requires
complete re-design to bring about the desired degree of improvement.
Such a discovery usually occurs during improvement phase of DMAIC.
Design For Six Sigma (DFSS) Approach
Six Sigma Project Structure

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Introduction to Six Sigma.pptx

  • 1. Introduction to Six Sigma Shashi Mishra
  • 2. “ A program aimed at the near – elimination of defects from every product, process and transactions.”- Tomkins ( 1997 ) Six Sigma as, Philosophy— The philosophical perspective views all work as processes that can be defined, as 1. Customer Focus 2. Employee Engagement 3. Distaste to defect and Variation Set of tools— The Six Sigma expert uses qualitative and quantitative techniques to drive process improvement. A few such tools include statistical process control (SPC), control charts, failure mode and effects analysis, and process mapping. Six Sigma professionals do not totally agree as to exactly which tools constitute the set. Methodology— This view of Six Sigma recognizes the underlying and rigorous approach known as DMAIC (define, measure, analyse, improve and control). DMAIC defines the steps a Six Sigma practitioner is expected to follow, starting with identifying the problem and ending with the implementation of long-lasting solutions. While DMAIC is not the only Six Sigma methodology in use, it is certainly the most widely adopted and recognized. Metrics – In simple terms, Six Sigma quality performance means 3.4 defects per million opportunities (accounting for a 1.5-sigma shift in the mean). Management System- Three framework for process improvement , DMAIC, DMADV, DFSS ( ISO 13053) WHAT IS SIX SIGMA?
  • 3. History of Six Sigma 1777 – 1855 Carl Frederick Gauss introduced the concept of the normal curve 1986 Six Sigma formulated by Bill Smith in Motorola. 1988 Motorola becomes the first company to win Malcolm Baldridge National Quality Award. 1993 Allied Signal adopted Six Sigma 1995 General Electric (GE) launched the Six Sigma initiative. ( Jack Welch ) 1998 Honeywell adopted Six Sigma 2000 Ford adopted Six Sigma 2005 Mass Adoption of Six Sigma
  • 4. Why is Six Sigma called Six Sigma, and not Four or Five Sigma or Eight Alpha? • Sigma is used to designate the distribution or spread about the mean of any process or procedure. • A normally distributed process if mean plus minus 3σ range of output is between USL and LSL then around 99.997% (or almost all) of the output will be non-defective or the process is of 6σ level. • Now, if the USL and LSL of a process are such that the difference between USL and LSL is less than 6σ value of the process, then it won’t be a Six Sigma process. • To make this process a Six Sigma process you have to reduce the values of σ. • The Six Sigma methodology broadly tells about how to reduce the value of σ and make it a six-sigma process. • DPMO (Defect Per Million Opportunities) is used for counting defects in statistical processes. A Six Sigma process will have 99.997% accuracy or 3.4 DPMO which is extremely accurate.
  • 5. Calculation of DPMO Designco 2019 Data ( 216 Inspections ) Type Sample Count Defective Sample No of Defects $__ALL__$ 11797 762 764 Total Opportunities 58985 5 Possible Defects in each sample Assumption DPO Defects/Opportunities 0.012952446 Defect Per Total Opportunities DPMO Defect/Opportunities*1000000 12952 Defect Per Million Opportunities Sigma Level 3.727 = (NORMSINV(1-$D2))+1.5 D2=DPMO/1000000 Sigma Value DPMO Implied Performance Cost of Quality 6 3.4 World Class <10 % 5 233 10-15 % 4 6210 Average 15-20% 3 66807 20-30 % 2 308537 Non Competitive 30-40 %
  • 6. Comparing Six Sigma and Lean. Essentially, Six Sigma and Lean systems have the same goal. Lean practitioners believe that waste comes from unnecessary steps in the production process that do not add value to the finished product, while Six Sigma proponents assert that waste results from variation within the process. Lean & Six Sigma
  • 7. The driving force behind any Six Sigma project comes from its primary focus - "bringing breakthrough improvements in a systematic manner by managing variation and reducing defects". Six Sigma’s greatest strength may be the way it organizes people.. It has a belt system as follow :- Champions – Business Leaders, provide resource and support implementations Master Black Belts (MBB) – Experts and culture changers, mentor BBs and GBs. Black Belts – Black Belts are full-time Six Sigma professionals. They help select Six Sigma projects and prepare project charters. They train team members and help them design experiments and analyze data. Black Belts are responsible for communicating progress to Champions and process owners. Green Belts – Green Belts are typically part-time Six Sigma practitioners who spend about 25% of their time working on Six Sigma projects. They select project team members and provide training on the fundamentals of Six Sigma. Based on Process , there are three frameworks for process improvement. DMAIC – This method improves existing processes. The acronym stands for the stages of define, measure, analyze, improve and control. It requires teams to look objectively at problems and use fact- based statistical analysis to find ways to improve them. DMADV/DFSS – This acronym stands for define, measure, analyze, design and verify. It is used to develop a new product or service or to redesign a process that has reached its limits. This model forces project teams to identify and translate customer needs into a product or service that satisfies the customer. How does 6 Sigma work?
  • 8. Define the problem, improvement activity, opportunity for improvement, the project goals, and customer (internal and external) requirements. Measure process performance. Analyze the process to determine root causes of variation, poor performance (defects). Improve process performance by addressing and eliminating the root causes. Control the improved process and future process performance. DMAIC is an acronym for the five phases that make up the process
  • 9. The process kicks off with a clear statement of the target business problem and the scope of the intended improvements. The current state is documented in great detail as is the problem to be solved. At this point, teams also determine the objectives of improvement and map out what success looks like. Some organizations use formal project charters at the outset of a DMAIC cycle, while others are less formal. Ample documentation and detail are essential nevertheless. 1-Define
  • 10. Tools are Used for DMAIC D-Define Phase Tools Used • Define Customers and Requirements (CTQs) • Develop Problem Statement, Goals and Benefits • Identify Champion, Process Owner and Team • Define Resources • Evaluate Key Organizational Support • Develop Project Plan and Milestones • Develop High Level Process Map • Project Charter • Process Flowchart • SIPOC Diagram • Stakeholder Analysis • DMAIC Work Breakdown Structure • CTQ Definitions • Voice of the Customer Gathering
  • 11. DMAIC is a data-driven approach to improvement. That means that you need to have baseline measurements that can be compared to post- improvement results. Quantifiable process effectiveness measurements might include the number of defects, process duration, process cost, or other relevant metrics. One or more members of the team should be assigned the responsibility for measurement and the team should agree on how frequently the measurement will take place. 2-Measure
  • 12. Tools are Used for DMAIC M – Measure Phase Tools Used • Define Defect, Opportunity, Unit and Metrics • Detailed Process Map of Appropriate Areas • Develop Data Collection Plan • Validate the Measurement System • Collect the Data • Begin Developing Y=f(x) Relationship • Determine Process Capability and Sigma Baseline • Process Flowchart • Data Collection • Plan/Example • Benchmarking • Measurement System Analysis/Gage R&R • Voice of the Customer Gathering • Process Sigma Calculation
  • 13. Now that the team is armed with data, a root-cause analysis is performed to determine the underlying reason(s) for the business problem. Many organizations find that the 5 Whys technique is a helpful way to structure the process. Process maps are also popular. It is important to remember that many problems have more than one root-cause. Keeping attention on the causes, not the symptoms, helps make solutions more apparent and reduces the tendency to become defensive or to blame people, rather than processes. 3-Analyze
  • 14. Tools are Used for DMAIC A – Analyze Phase: Tools Used • Define Performance Objectives • Identify Value/Non-Value Added Process Steps • Identify Sources of Variation • Determine Root Cause(s) • Determine Vital Few x’s, Y=f(x) Relationship • Histogram • Pareto Chart • Time Series/Run Chart • Scatter Plot • Regression Analysis • Cause and Effect/Fishbone Diagram • 5 Whys • Process Map Review and Analysis • Statistical Analysis • Hypothesis Testing(Continuous and Discrete) • Non-Normal Data Analysis
  • 15. It is essential to fight the urge to leap to the Improve stage. Proposed improvements should be implemented only after careful measurement and thoughtful analysis. There is an element of experimentation in DMAIC, but it should be tempered with good data and sound logic. Any risks associated with the improvement should be identified and communicated, along with the steps taken to mitigate those risks. Everyone should be on the lookout for unintended consequences so that action can be taken swiftly. 4-Improve
  • 16. Tools are Used for DMAIC I – Improve Phase Tools Used • Perform Design of Experiments • Develop Potential Solutions • Define Operating Tolerances of Potential System • Assess Failure Modes of Potential Solutions • Validate Potential Improvement by Pilot Studies • Correct/Re-Evaluate Potential Solution • Brainstorming • Mistake Proofing • Design of Experiments • Pugh Matrix • QFD/House of Quality • Failure Modes and Effects Analysis (FMEA) • Simulation Software
  • 17. The final step in a DMAIC cycle is Control. It is an essential piece of the equation that is often missing when improvement work occurs without structure. Control is about making sure that successful improvements don’t degrade over time. At this point teams, verify measurable improvement and determine if the improvements as implemented have achieved the project goals. They also update Standard Work documentation and look for other ways to integrate the lessons that have been learned. 5-Control
  • 18. Tools are Used for DMAIC C – Control Phase: Tools Used • Define and Validate Monitoring and Control System • Develop Standards and Procedures • Implement Statistical Process Control • Determine Process Capability • Develop Transfer Plan, Handoff to Process Owner • Verify Benefits, Cost Savings/Avoidance, Profit Growth • Close Project, Finalize Documentation • Communicate to Business, Celebrate • Process Sigma Calculation • Control Charts(Variable and Attribute) • Cost Savings Calculations • Control Plan
  • 19. There are two approaches to implementing DMAIC:- The first is the team approach in which individuals who are skilled in the tools and method, such as quality or process improvement experts, lead a team. The team members work on the project part-time while caring for their everyday responsibilities. The quality or process improvement expert might be assigned to several projects. These are long- duration projects taking months to complete. The second tactic involves the kaizen event method, an intense progression through the DMAIC process typically done in about a week. Prep work is completed by the quality or process improvement expert, and is cantered on the define and measure phases. The rest of the phases are done by a team of individuals who have been pulled from their regular duties for the duration of the kaizen event. In most cases, the changes are piloted during the event, and full-scale implementation is completed after the event. It is crucial the impact of these changes—whether they are wanted or not—are monitored. The advantage of this approach is the ability to make rapid change. How is DMAIC deployed?
  • 20. Step 1 • Select Problems and Issues Step 2 • Define Your Goals Step 3 • Estimate The Resources Step 4 • Train The Steering Committee Step 5 • Select & Identify The Right DMAIC projects Step 6 • Select and train the right people for your Lean Six Sigma Project Step 7 • Launch Your First Project & Align Your Trainings With Your Change Management Objectives Step 8 • Sustain and Control your Operational Excellence Initiatives Six Sigma Deployment
  • 21. The second focuses on process design using Design For Six Sigma (DFSS) approach. DFSS typically requires IDOV: Identify process goals in terms of critical parameters, industry & competitor benchmarks Design involves enumeration of potential solutions and selection of the best Optimize performance by using advanced statistical modeling and simulation techniques and design refinements Validate that design works in accordance to the process goals Sometimes a DMAIC project may turn into a DFSS project because the process in question requires complete re-design to bring about the desired degree of improvement. Such a discovery usually occurs during improvement phase of DMAIC. Design For Six Sigma (DFSS) Approach
  • 22. Six Sigma Project Structure