The document discusses Six Sigma principles and methodology. It defines key Six Sigma metrics like defects per unit and defects per million opportunities. It also outlines the DMAIC methodology for process improvement, including defining problems, measuring key metrics, analyzing for root causes, improving processes, and controlling improvements. The document recommends selecting Six Sigma projects based on factors like financial impact and strategic fit. It also discusses team roles in Six Sigma projects and applying Six Sigma principles to services and small organizations.

1. Chapter 8
PRINCIPLES
OF
SIX SIGMA
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2. Six-Sigma Metrics
 Defect – any mistake or error that is passed on to a
customer
 Defects per unit (DPU) = number of defects
discovered ÷ number of units produced
 Defects per million opportunities (dpmo) = DPU ×
1,000,000 ÷ opportunities for error

3. Six-Sigma Quality
 Ensuring that process variation is half the design
tolerance (Cp = 2.0) while allowing the mean to shift
as much as 1.5 standard deviations, resulting in at
most 3.4 dpmo.

4. k-Sigma Quality Levels

5. PROJECT SELECTION FOR SIX
SIGMA
1. Conformance problems
2. Unstructured performance problems
3. Efficiency problems
4. Product design problems
5. Process design problems

6. Key Factors in Six Sigma
Project Selection
 Financial return, as measured by costs
associated with quality and process
performance, and impacts on revenues
and market share
 Impacts on customers and organizational
effectiveness
 Probability of success
 Impact on employees
 Fit to strategy and competitive
advantage

7. Problem Solving
 Problem: any deviation between what
“should be” and what “is” that is
important enough to need correcting
 Structured
 Semi structured
 Ill-structured
 Problem Solving: the activity associated
with changing the state of what “is” to
what “should be”
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8. Problem Solving Process
1. Redefining and analyzing the problem
2. Generating ideas
3. Evaluating and selecting ideas
4. Implementing ideas

9. DMAIC Methodology
1. Define
2. Measure
3. Analyze
4. Improve
5. Control

10. Common Six Sigma Tools

11. Define
 Describe the problem in operational terms
 Drill down to a specific problem statement (project
scoping)
 Identify customers and CTQs, performance metrics, and
cost/revenue implications

12. Measure
 Key data collection questions
 What questions are we trying to answer?
 What type of data will we need to answer the
question?
 Where can we find the data?
 Who can provide the data?
 How can we collect the data with minimum effort
and with minimum chance of error?

13. Analyze
 Focus on why defects, errors, or excessive variation occur
 Seek the root cause
 5-Why technique
 Experimentation and verification

14. Improve
 Idea generation
 Brainstorming
 Evaluation and selection
 Implementation planning

15. Control
 Maintain improvements
 Standard operating procedures
 Training
 Checklist or reviews
 Statistical process control charts

16. Tools for Six-Sigma and Quality
Improvement
 Elementary statistics
 Advanced statistics
 Product design and reliability
 Measurement
 Process control
 Process improvement
 Implementation and teamwork

17. Design for Six Sigma
 Focus on optimizing product and
process performance
 Features
 A high-level architectural view of the design
 Use of CTQs with well-defined technical requirements
 Application of statistical modeling and simulation
approaches
 Predicting defects, avoiding defects, and
performance prediction using analysis methods
 Examining the full range of product performance
using variation analysis of subsystems and
components

18. TEAM PROCESSES AND PROJECT
MANAGEMENT
 Team are vital to Six Sigma project
because of the interdisciplinary nature
of such project.
 Six Sigma teams rely on several
different types of professionals (roles).
- Champions
- Master Black Belts
- Black Belts
- Green Belts

19. SIX SIGMA IN SERVICES AND SMALL
ORGANIZATION
Key Six Sigma Metrics in Services
Accuracy
Cycle time
Cost
Customer satisfaction

20. Six Sigma and Lean Production
Lean production
Measurement and continuous improvement.
Cross-trained workers
Flexible and increasingly automated equipment
Efficient machine layout
Rapid set-up and changeover
Just-in-time delivery and scheduling
Realistic work standards
Worker empowerment to perform inspection and take
corrective action
Supplier partnerships
Preventive maintenance

21. Some of the key tools used in Lean
production include:
 The 5S’s: seiri (sort), seiton (set in order),
seiso (shine), seiketsu (standardize), and
shitsuke (sustain).
 Visual controls
 Efficient layout and standardized work
 Pull production
 Single minute exchange of dies (SMED)
 Total productive maintenance
 Source inspection
 Continuous improvement

22. LEAN SIX SIGMA AND SERVICES
 Lean production can easily be applied to
nonmanufacturing environments.
- lean enterprise.