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# Six sigma & levels of sigma processes

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### Six sigma & levels of sigma processes

1. 1. FICCI CE Six Sigma
2. 2. Six Sigma in simple terms Accurate and PrecisionSix Sigma can be best explainedby using the analogy of a rifle firingat a target.
3. 3. Accuracy and precisionWith the center of the target taken to be the truevalue of the characteristic being measured andby the rifle shots representing the measuredvalues, there are four combinations of accuracyand precision as depicted in the following slides.
4. 4. Inaccurate and imprecise
5. 5. Accurate and imprecise
6. 6. Precise but inaccurate
7. 7. Accurate and precise
8. 8. Objectives of Six SigmaAs observed from the Picturization in the preceding slides, the objective ofmoving towards world class manufacturing a is to continuously achievegreater consistency of the processes by aiming for higher levels of accuracy& precision
9. 9. FICCI CE Sigma in statistical terms Standard deviation is also referred to as the Greek letter sigma in quality management literature. Consequently process variation can be described by how many sigmas ( i.e how many multiples of standard deviation or SD ) fit within the specification limits.The higher this number, the better is the quality and vice versa. Sigma is a statistical measure of the quality consistency for a particular process / product.
10. 10. FICCI CE Sigma process From a sigma process we come to know that at what distance, in terms of the standard deviation, the specification limits are placed from the target value.
11. 11. FICCI CE Move beyond 3 sigma Until a few years back all statistical process controls were designed on the basis of 3 sigma limits. It is only in the recent years that this concept has been challenged and the organizations have started looking for quality levels beyond 3 Sigma.
12. 12. FICCI CE 3 Sigma process Mean=8 LSL SD = 2 USL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 - 3 SD + 3 SD Note : LSL is Lower specification limit and USL is Upper specification limit.
13. 13. FICCI CE 4 Sigma process LSL Mean=8 USL SD = 1.33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 - 4 SD + 4 SD
14. 14. FICCI CE 5 Sigma process Mean=8 LSL SD = 1.07 USL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 - 5 SD + 5 SD
15. 15. FICCI CE 6 Sigma process Mean=8 LSL SD = 1 USL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 - 6 SD + 6 SD
16. 16. FICCI CE Precision Lesser the standard deviation of the process, more precise or consistent is the process
17. 17. FICCI CE 3 Sigma Vs 6 Sigma The goal of Six Sigma program is to reduce the variation in every process to such an extent that the spread of 12 sigmas i.e. 6 Sigmas on either side of the mean fits within the process specifications. The figure on next slide shows what this looks like.
18. 18. FICCI CE 3 Sigma Vs 6 Sigma 6 Sigma curve LSL USL 3 Sigma curve 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 In a 3 sigma process the values are widely spread along the center line, showing the higher variation of the process. Whereas in a 6 Sigma process, the values are closer to the center line showing less variation in the process.
19. 19. FICCI CE 3 Sigma Vs 6 Sigma The comparison on the previous slide also shows a process in which the process spread of Six Sigmas (ie. 3 Sigmas on either side just fits within the specifications). In this case one must be extremely careful to ensure that the process average never slips off the target, otherwise the curve will shift and non-conforming items will increase. With Six Sigma requirement the process mean can shift by as much as 1.5 sigma before the likelihood of non-conforming items is increased. Even if the process mean does shift off center by as much as 1.5 sigma, only 3.4 non-conforming items per million parts should result.
20. 20. FICCI CE Amount of process shift allowed 1.5 SD 1.5 SD LSL USL SD = 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
21. 21. FICCI CE Sigma levels and defect rate Quality level % Quality Defective PPM* 3 Sigma 99.73 66807 4 Sigma 99.9937 6210 5 Sigma 99.999943 233 6 Sigma 99.9999998 3.4 *Parts Per Million
22. 22. FICCI CE Sigma levels & Cost of quality Sigma Defect rate(PPM) Cost of quality Competitive level 6 3.4 <10% World 5 233 10-15% Class 4 6210 15-20% Industry 3 66807 20-30% Average 2 308537 30-40% Non >40% Competitive 1 6,90000
23. 23. FICCI CE