This document provides an overview of using Six Sigma approaches to evaluate competitiveness levels. It first defines Six Sigma and discusses its history and objectives of reducing variation and defects to achieve world-class quality. It then examines various quality assessment metrics used in Six Sigma such as DPMO, sigma levels, yield, and throughput yield. Two examples are provided showing how to calculate weighted DPMO and sigma levels to classify competitiveness. The conclusion states that Six Sigma aims to ensure quality and customer satisfaction through reducing variations and offers indicators to assess and control quality and competitiveness.

1. Soltani Mohyiddine
Analysis of competitiveness level
by using Six Sigma approach

2. SAMMARY
What is Six Sigma
History of six Sigma
Objective of Six Sigma
Competitiveness evaluation
Example 1
Example 2
Conclusion
References
Quality assessment

3. What is Six Sigma ?
Six
Sigma
it is an improvement
approach to reduce the
variation in processes.
it is an enhancement
strategy that seeks to
identify and eliminate
the causes of errors.
it is a statistical measure
that describes the process
performance.
it is an organized Approach
to Strategic Manufacturing
Process Improvement in
order to achieve a world-
class of quality.

4. History of Six Sigma ?
1986
Was developed by
Motorola company
1988
Motorola becomes
the first company
to win the MBNQA
1993
Allied Signal
adopted Six Sigma
1995
General Electric
(GE) launched the
Six Sigma initiative
1998
Allied Signal
adopted Six Sigma

5. Assess and control the quality level
Reduce the variation in processes
Ensure the costumer satisfaction
lead to the world class of quality
2
3
4
1
Objective of Six Sigma
Six Sigma approach
aims to

6. DPU
• Defect Per opportunity is a measurement representing the average
number of defects that occur with each product unit.
• 𝐷𝑃𝑈 =
NB of defects
NB of units
DPO
• DPO is a ratio between the total number of defects and the total
possible opportunities that a defect could occur
• 𝐷𝑃𝑈 =
NB of defects
NB of units × 𝑁𝐵 𝑜𝑓 𝑑𝑒𝑓𝑒𝑐𝑡𝑠 𝑜𝑝𝑝𝑜𝑟𝑡𝑢𝑛𝑖𝑡𝑖𝑒𝑠 𝑃𝑒𝑟 𝑈𝑛𝑖𝑡
Quality assessment

7. Yield
• Yield is the ratio of number of acceptable units after production
over number of units that enters production.
• 𝑌𝑖𝑒𝑙𝑑 =
NB of 𝑎𝑐𝑐𝑒𝑝𝑡𝑎𝑏𝑙𝑒 𝑢𝑛𝑖𝑡𝑠
units 𝑒𝑛𝑡𝑟𝑖𝑛𝑔 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
Throughput
Yield
• Throughput Yield is a Six Sigma metric indicating the ability of the
process to produce conform units.
• Throughput Yield = 1 − 𝐷𝑃𝑈 𝑜𝑟 Throughput Yield = 𝑒−𝐷𝑃𝑈
Quality assessment

8. DPMO
•expresses the proportion of defects over the
total number of opportunities in a data set
Sigma Level
•Presents a key factor that used to determine
the competitive situation of firms
Quality assessment

9. DPMO + SIGMA
DPO
DPO
DPMO
Sigma
level
Yield
RTY
Evaluate the competitiveness of the
manufacturing process
Competitiveness evaluation

10. DPMO
Weight ×
Weighted DPMO
Assess the level of
quality based on other
criteria
Detect the criteria affect
the competitiveness
Enhahe estimation rate
of nce tthe quality level
The conventional competitiveness
assessment is based on
Production
costs
Quality of
product
Costumer
satisfaction
Availability
of product
Competitiveness evaluation

11. Sigma level class DPMO
6 Word class 3,4
5 230
4 Middle class 6200
3 67000
2 Non competitive 310000
1 700000
Weighted Sigma
Level
Calculate DPMO
DPMO= (w*ND)/106
DPMO =
(w*DPO)*106
Sigma level=
1,5 + 𝑁𝑂𝑅𝑀𝑆𝐼𝑁𝑉(1 −
𝐷𝑃𝑀𝑂)
Calculate DPO
DPO= ND/(NU*Op)
Method 1 Method 2
Classification
Competitiveness evaluation

12. Weighted Sigma Level
Method 1 Method 2
Found the exact value of sigma level
Monitor the variation of sigma level
Detect the enhancement and the
degradation in real time
Simple to use
Just generate the final classification
Found the exact value of DPMO
VS
Competitiveness evaluation

13. Weighted DPMO existing in
literature
Soltani et
al (2020)
Aouag et
al (2015)
Weighted DPMO based on
the costs of poor quality
(CPQ)
𝑾𝒊 =
𝑪𝑷𝑸𝒊
𝒊=𝟏
𝒏
𝑪𝑷𝑸𝒊
Weighted DPMO based on
Life Cycle Cost (LCC)
𝑾𝒊 =
𝑳𝑪𝑪𝒊
𝒊=𝟏
𝒏
𝑳𝑪𝑪𝒊
Competitiveness evaluation

14. Example (method 1)
• A company XYZ that produces a product A based on four operations
• Based on the weighting approach of Aouag et al (2015), the weights
are as follows:
1 4
2 3
CPQ
57,16
CPQ
169,66
CPQ
108,93
CPQ
70,43
442355 414252 385919
ND: 855 ND: 1241 ND: 2064 ND: 285
440451
Example 1
𝑊𝐼 =
𝑪𝑷𝑸𝒊
𝒊=𝟏
𝒏
𝑪𝑷𝑸𝒊
= (𝑂𝑃1 = 0.1407, 𝑂𝑃2 = 0.4177, 𝑂𝑃3 = 0.2688, 𝑂𝑃4 = 0.1734)

15. 𝐷𝑃𝑀𝑂=∑(ND𝑖)/106
𝐷𝑃𝑀𝑂 = (855+1241+2064+285) /106
.
𝐷𝑃𝑀𝑂 =0.004445.
Sigma level is calculated as follows:
𝑍 = 1.5 + 𝑁𝑂𝑅𝑀𝑆𝐼𝑁𝑉(1 − 0.004445).
𝑍 = 1.5 + 𝑁𝑂𝑅𝑀𝑆𝐼𝑁𝑉(0.99555).
𝑍 =3.52.
𝐷𝑃𝑀𝑂=∑(𝑊𝑖 × ND𝑖)/106
𝐷𝑃𝑀𝑂 = (0,1407×855+0,4177×1241+0,2682×2064+0,1734×285) /106
.
𝐷𝑃𝑀𝑂 =0.00124163.
Sigma level is calculated as follows:
𝑍 = 1.5 + 𝑁𝑂𝑅𝑀𝑆𝐼𝑁𝑉(1 − 0.00124163).
𝑍 = 1.5 + 𝑁𝑂𝑅𝑀𝑆𝐼𝑁𝑉(0.99876).
𝑍 =4.52.
Conventional Sigma Level
Weighted Sigma Level
Example 1

16. The weighted sigma level is greater than the conventional sigma
level
Both of results indicates that the company belongs to the middle
class
The obtained weights show that the operation 2 is the critical part
in the manufacturing process with a weight of 0,4177
It doesn't means the weighting approach enhance the
estimation rate
It means that in this company, the quality level based
cost approach is better than conventional quality level
interpretation
Example 1

17. • Example 2 (method 2)
• A company XYZ that produce a product A based on four operations
• Remarque: there are three opportunities (OP) of defects
1 4
2 3
LCC
1574
LCC
8223
LCC
244,5
LCC
131
606 577 563
ND: 19 ND: 29 ND: 14 ND: 0
625
5
6
7
8
LCC
2134
LCC
23,6
LCC
496
LCC
1500 ND: 0 ND: 6 ND: 0 ND: 17
576
576
570
Example 2

18. • Based on the weighting approach of Soltani et al (2020), the weights
are as follows:
𝑊𝐼 =
𝑳𝑪𝑪𝒊
𝒊=𝟏
𝒏
𝑳𝑪𝑪𝒊
= (𝑂𝑃1 = 0.11, 𝑂𝑃2 = 0.574, 𝑂𝑃3 = 0.0171, 𝑂𝑃4 = 0.0092, 𝑂𝑃5 = 0.149,
𝑂𝑃6 = 0.0016, 𝑂𝑃7 = 0.0346, 𝑂𝑃8 = 0,1047)
𝐷𝑃𝑀𝑂𝑜𝑡𝑎𝑙= ∑(𝑊𝑖 × DPO) × 106
𝐷𝑃𝑀𝑂 = (0,1100 × 0,0304 + 0,5740 × 0,0239
+ 0,0171 × 0,0122 + 0,0092 × 0 + 0,1490 ×
0,0101 + 0,0016 × 0 + 0,0346 × 0,0110 +
0,1047 × 0) × 106.
𝐷𝑃𝑀𝑂𝑇𝑜𝑡𝑎𝑙 = 19160,33.
𝐷𝑃𝑀𝑂= (DPO𝑇𝑜𝑡𝑎𝑙) ×106
𝐷𝑃𝑀𝑂 = (
85
625×3
) × 106 .
𝐷𝑃𝑀𝑂𝑇𝑜𝑡𝑎𝑙 = 45333,33.
Conventional DPMO
Weighted DPMO
Example 2

19. the value of weighted DPMO is equal to 19160,33. (230 <
19160.33 <67000). Please see the above table,
The value of the conventional DPMO is obtained as 45333,33.
(230 < 45333,33 <67000). Please see the above table,
Both approaches indicates that the manufacturing process
belongs to the middle class
interpretation
Example 2

20. Conclusion
Six Sigma approach aims to reduce variations in a
manufacturing process to ensure product quality,
increase the level of customer satisfaction
Six sigma approach has applied in various sector
(industry, services…) and achieved a satisfactory
findings
Six Sigma approach offers
various indicators that used to
assess and control the quality
of products
Six Sigma approach provide
the ability to underline the
position of the company in
the world of industry
conclusion

21. References
• Soltani, M., Aouag, H., & Mouss, M. D. (2020). Enhancement of the
competitiveness and the financial capability of a manufacturing
process through a new value stream mapping approach. International
Journal of Productivity and Quality Management, 29(4), 439-453.
• Aouag, H., Kobi, A., & Mechenene, A. (2015). Analysis of
competitiveness level in an industrial company using a continuous
improvement-based approach. International Journal of Six Sigma and
Competitive Advantage, 9(2-4), 87-108
References

22. Thank
you
E-mail: soltani.mohyiddine@gmail.com
Adress : el riadh city Batna
Web site: www.researchgate.net/profile/Soltani-Mohyiddine