Six Sigma


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Important terms and dimensions along with some intro. and history about Six Sigma

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Six Sigma

  1. 1. Six-SigmaPresented to:• Miss Nadia &• Class MatesPresented By:• Muhammad Sultan Bhatti 1319-10• Sumrah Shakeel 1339-10• Hafiz Muhammad Shoaib 1341-10• Rafia Tufail 1327-10• Muhammad Zeshan Sarwar 1455-10• Muhammad Tariq Saleem 1328-10
  2. 2.  Six Sigma is a highly disciplined process that helps a company to focus on developing and delivering near-perfect products and services. (Dell, PepsiCo) (China Mobile) Sigma; The word is a statistical term that measures how far a given process deviates from perfection. It meets the both ends by value to companies in the forms of increased profits and maximum value to consumers with high- quality products and services at the lowest possible cost.
  3. 3.  The central idea behind Six Sigma is that if we can measure how many" defects” we have in a process, we can systematically determine how to eliminate those and approach to "zero defects” Allied Signal Johnson & Johnson, Ford, Nissan, Motorola General Electric Honeywell 1985 1987 1992 1995 2002Dr Mikel J Harry wrote aPaper relating early failures toquality
  4. 4.  The era ‘1986 to 1990’ is referred Pioneered at Motorola Statistical approach Measured Defects Per Million Opportunities (DPMO)Focused on:  Elimination of defects  Improving product and service quality  Reducing cost  Continuous process improvement
  5. 5.  In the 1990s, the focus of Six Sigma shifted from product quality to business quality. General Electric Corp. ushered in the second generation of Six Sigma Six Sigma became a business-centric system of management Strong measurement on bringing dollars to the bottom line High potential candidates were selected as Black Belts
  6. 6.  Developed after the year 2000 Korean steel maker Posco and electronics maker Samsung has begun a Gen III program Gen III can show companies how to deliver products or services that, in the eyes of customers, have real value Combines Lean Manufacturing Techniques and Six Sigma. Termed as Lean Six Sigma
  7. 7.  Intense competitive pressures – especially from rapid globalization. Greater consumer demand for high quality products and services, little tolerance for failures of any type. Top management (and stockholder) recognition of the high costs of poor quality.
  8. 8. Defects per Million % Accuracy Opportunities (DPMO)One Sigma 691,500 30.85%Two Sigma 308,500 69.15%Three Sigma 66,810 93.32%Four Sigma 6,210 99.38%Five Sigma 233 99.977%Six Sigma 3.4 99.9997%Seven Sigma 0.020 99.999998%
  9. 9. Fig. 1 Cost of poor quality versus Sigma levelCost of poor quality as % of earnings 30% 20% 10% 0% 3 4 5 6 7 Sigma Level
  10. 10. Six Sigma - Three Dimensions Customer Process A Process B Vendor Define Measure Analyze Improve Control Process Map Analysis LSL US L MethodologyLed bySenior Mgmt Upper/Lower • specification limits • •••• ••• •••• • Organization Tools •••••• •••• Regression 35 100% 30 80% 25 20 60% 15 40% 10 20% 5 Process variation 0 0% Enabled by quality L K A F B C G R D team. Frequency Cumulative Frequency Pareto Chart
  11. 11. MasterBlack Belt
  12. 12. Mentor, trainer, and coach of Black Belts and others Master in the organization. Black Belt Leader of teams implementing the six sigma Black Belts methodology on projects.Champions Delivers successful focused projects using the six sigma methodology and tools. Green Belts Team Members / Participates on and supports the project teams, typically in the context Yellow Belts of his or her existing responsibilities.
  13. 13. Voice of the Customer Measure Analyze ImproveDefine Control Institutionalization The DMAIC Model
  14. 14. Define Measure Analyze Improve ControlWhat is wrong? Data & Process When and where How to get Display capability are the defects to six sigma key measures
  15. 15. Applications of Six Sigma that focus on the design or significantredesign of products and services and their enabling processes so thatfrom the beginning customer needs and expectations are fulfilledare known as Design for Six Sigma or DFSS.The focal aim of DFSS is to create designs that are resource efficient,capable of exceptionally high yields, and are robust to processVariations.
  16. 16. Tools which we use in six sigma are given bellow:Critical to Quality (CTQ) Tree:  Identify the customer of the process targeted for improvement.  Identify the need of the customer.  Identify the first level of requirements of the need, that is, some characteristic of the need that determines whether the customer is happy with the need.  Drill down to more detailed level(s) of the requirement if necessary.Process Map:  During the Define phase, the project team creates the first of several process maps. A process map is a picture of the current steps in the process targeted for improvement.
  17. 17. Tools which we use in six sigma are given bellow:Control Chart:  A control chart uses the data from a run chart to determine the upper and lower control limits. Control limits are the expected limits of variation above and below the average of the data.Cause-Effect Diagram:  Most important tool in determining root causation  It captures all the ideas of the project team relative to what they feel are the root causes behind the current sigma performance and finally help in finding a root cause of the problem.
  18. 18. Tools which we use in six sigma are given bellow:Scatter Diagram:  Scatter diagram takes an idea about root causation and tracks corresponding data in the response the team is trying to improve. The team can validate an idea about root causation through one of three methods. Using basic data collection, a designed experiment, or through the scatter diagram.Histogram:  Used during the Analysis stage of DMAIC  Project team will review data collected during the Measure stage of DMAIC
  19. 19. Tools which we use in six sigma are given bellow:Hypothesis Testing:  Used in the for screening potential causes. A hypothesis test calculates the probability, p, that an observed difference between two or more data samples can be explained by random chance alone, as opposed to any fundamental difference between the underlying populations that the samples came from. So hypothesis testing answers the question, what is the probability that these data samples actually came from the same underlying population? If this probability, known as the p-value, is small (typically below 0.05), then we conclude that the two samples likely came from different underlying populations. For example, a p-value of 0.02 indicates that there is only a 2% chance that the data samples came from the same underlying population.
  20. 20. Tools which we use in six sigma are given bellow:Normality  Statistical process used to determine if a sample, or any group of data, fits a standard normal distribution  Can be done mathematically or graphically  Used, if assumption that the data being tested is normally distributed is validHouse of Quality  Matrix that is developed to assist product development teams with complete understanding of the client requirements and also prioritize based on the weightage given to each item by the client in the requirements  Customer requirements represent ‘What is required’ while the technical requirements represent ‘How the requirement is going to be handled’
  21. 21. Tools which we use in six sigma are given bellow:Pareto ChartProcess summary Work sheet
  22. 22. Control Limits
  23. 23. Poor quality: defects areGood quality: common (Cpk<1)defects are rare(Cpk>1) μ target μ target Cpk measures “Process Capability”If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is exceptional.
  24. 24. Sample Means Chart: UCL X X A2 R X X N LCL X X A2 RRange Chart: R R N UCL R D4 R LCL R D3 R
  25. 25. total number of defectsp total number of units sampled p (1 p ) p nUCL p p z pLCL p p z p
  26. 26. QMS/Process improvement Yielded Results tools Six Sigma 53.6% Process mapping 35.3% Root cause analysis 33.5% Cause-and-effect analysis 31.3% Lean thinking/manufacturing 26.3% Benchmarking 25.0% Problem solving 23.2% ISO 9001 21.0% Process capability 20.1% Statistical process control 20.1% Performance metrics 19.2% Control charts 19.2% Process management 18.8%
  27. 27.  Metrics Benchmark Vision Philosophy Tool Method Symbol Value GoalDiscussing them briefly, we can say that :-
  28. 28.  Six-Sigma is a Metric (Statistical Measure) Higher the Number (6,5,4…) before “Sigma”- lesser the variation Higher the product quality and customer satisfaction Six-Sigma is a Benchmark To gain a competitive edge Six-Sigma is a Vision The desire and ability to look far ahead
  29. 29.  Six-Sigma is a Philosophy Creates a quality culture in the whole organization Higher the product quality and customer satisfaction Lesser the opportunity for committing an error or mistake, So higher the reward To measure and improve Business Bottom Line Adopts an excellent and powerful strategy. The Breakthrough Strategy (BTS). To Deliver quantum improvements in a short time
  30. 30.  Six-Sigma is a Symbol Indicates performance excellence in various facets of business. The highest level of Product Quality & customer Satisfaction associated with it. Six-Sigma is a Value Continual improvement brings down costs Resulting in more profits, market share and customer satisfaction
  31. 31.  Six-Sigma is a Goal To scale to new heights and to reach world class level. Top down approach with aggressive campaign Initiated by the chief executive and involving right people for the right job
  32. 32. • Working on too many improvements at the same time.• Not having someone accountable for the problem.• Not being a process-based company.• A lack of trained and experienced people.• Not suitable for small scale businesses• Lack of metrics focused on customer value-added processes.• Lack of integrated information and financial systems.
  33. 33.  A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the companys other service processes The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management