6 sigma


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6 sigma

  1. 1. 6 σ SIX SIGMA
  2. 2. SIX SIGMA <ul><li>Developed by Bill Smith at Motorola in 1980s </li></ul><ul><li>Adopted by General Electric, Allied Signal, Ford Company </li></ul><ul><li>Many Organizations run at 4 σ or 5 σ level </li></ul><ul><li>230 to 6210 defects per million </li></ul>
  3. 3. SIX SIGMA <ul><li>Six Sigma is a Quality objective that identifies the variability of a process in terms of the specifications of the product, so that product quality and reliability meet and exceed customer’s requirements. </li></ul><ul><li>Six Sigma refers to a process capability </li></ul><ul><li>that generates 3.4 defects per million. </li></ul>
  4. 4. <ul><li>Based on teachings of Dr. Walter Shewhart, Dr. W. E. Deming & Dr. J. Juran. </li></ul><ul><ul><li>Process Control; </li></ul></ul><ul><ul><li>Plan Do Check Act; </li></ul></ul><ul><ul><li>Common and Special Causes; </li></ul></ul><ul><ul><li>Improvement can be done project by project </li></ul></ul><ul><ul><li>Statistical tools </li></ul></ul><ul><ul><li>Hawthorne Plant Experiences </li></ul></ul><ul><li>Developed by Bill Smith at Motorola in 1980s </li></ul>What is Six Sigma ?
  5. 5. What Is Six Sigma? <ul><ul><li>Degree of variation; </li></ul></ul><ul><ul><li>Level of performance in terms of defects; </li></ul></ul><ul><ul><li>Statistical measurement of process capability; </li></ul></ul><ul><ul><li>Benchmark for comparison; </li></ul></ul><ul><ul><li>Process improvement methodology; </li></ul></ul><ul><ul><li>It is a Goal; </li></ul></ul><ul><ul><li>Strategy for change; </li></ul></ul><ul><ul><li>A commitment to customers to achieve an acceptable level of performance </li></ul></ul>
  6. 6. Six Sigma Definitions <ul><li>Business Definition </li></ul><ul><ul><li>A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business. </li></ul></ul><ul><li>Technical Definition </li></ul><ul><ul><li>A statistical term signifying 3.4 defects per million opportunities. </li></ul></ul>
  7. 7. 68 times 3.4 6  27 times 230 5  11 times 6,210 4  5 times 66,800 3  2 times 308,000 2  690,000 1  Rate of Improvement Defects Per Million Opportunities Sigma Level
  8. 8. Goals of Six Sigma <ul><li>Reduce Defects </li></ul><ul><li>Improve Yield </li></ul><ul><li>Improve Customer Satisfaction </li></ul><ul><li>Reduce Variation </li></ul><ul><li>Ensure Continual Improvement </li></ul><ul><li>Increase Shareholder Value </li></ul>
  9. 9. Benefits of Six Sigma <ul><li>Generates sustained success </li></ul><ul><li>Sets performance goal for everyone </li></ul><ul><li>Enhances value for customers </li></ul><ul><li>Accelerates rate of improvement </li></ul><ul><li>Promotes learning across boundaries </li></ul><ul><li>Executes strategic change </li></ul>
  10. 10. Six Sigma Results Six Sigma Savings as % of revenue vary from 1.2 to 4.5 % For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million. Investment: salary of in house experts, training, process redesign. Annual Savings Company *$1.5 billion (*since inception in 1998) JP Morgan Chase $600 million Honeywell $500 million Johnson & Johnson $ 16 billion (*since inception in 1980s) Motorola $2.0+ billion General Electric
  11. 11. Six Sigma Project Methodology Control Define Measure Analyze Improve <ul><li>Establish standards to maintain process; </li></ul><ul><li>Design the controls, implement and monitor. </li></ul><ul><li>Evaluate financial impact of the project </li></ul><ul><li>Identify, evaluate and select projects for improvement </li></ul><ul><li>Set goals </li></ul><ul><li>Form teams. </li></ul><ul><li>Collect data on size of the selected problem, </li></ul><ul><li>identify key customer requirements, </li></ul><ul><li>Determine key product and process characteristic . </li></ul><ul><li>Analyze data, establish and confirm the “ vital few “ determinants of the performance. </li></ul><ul><li>Validate hypothesis </li></ul><ul><li>Improvement strategy </li></ul><ul><li>Develop ideas to remove root causes </li></ul><ul><li>Design and carry out experiments, </li></ul><ul><li>Optimize the process. </li></ul><ul><li>Final solutions </li></ul>Project Phases
  12. 12. DCOV Model <ul><li>Define </li></ul><ul><li>Characterize </li></ul><ul><li>Optimize </li></ul><ul><li>Verify </li></ul>
  13. 13. Six Sigma Integration <ul><li>6 σ integrates Technology, Co Assets, Management and employees with continual Improvement practices Such as : </li></ul><ul><li>Project Management , Team Problem solving, SPC, Measurement System assessment, Process FMEA, Mistake proofing, Team Buliding, Applied Statistics, Design of Experiments , Cost of Quality, Process Mapping, Product eliability </li></ul>