1. Development of
Six Sigma
Motorola launched the Six Sigma program in
the 1980s
General Electric initiated the implementation
of Six Sigma in the mid-1990s
Organizations in all industries have applied
Six Sigma in recent years
Six Sigma has replaced TQM and BPR as
the key strategy for quality improvement
2. Definitions
s – Standard Deviation, a measure of
variability
Six Sigma – A quality improvement philosophy
that focuses on eliminating defects through
reduction of variation in a process
Defect – A measurable outcome that is not
within acceptable (specification) limits
3. TQM Versus Six Sigma
TQM Six Sigma
A management
philosophy of quality
improvement
A philosophy that focuses
on defect reduction and
cost reduction
Encourages involvement
of all employees
Relies on a selected group
of highly-trained employees
Senior management
provides direct support
Senior management is held
accountable for results
4. Key Success Factors for
Six Sigma
Committed leadership from top management
Integration with existing initiatives, business
strategy, and performance measurement
Process thinking
Disciplined customer and market intelligence
gathering
A bottom-line orientation and continuous
reinforcement and rewards
Training
5. Six-Sigma Metrics –
Measuring Defect Rate
Defects per unit (DPU) = number of defects
discovered number of units produced
Defects per million opportunities (DPMO) =
number of defects discovered opportunities
for error 1,000,000
6. Estimating Defect Rate –
Process Capability Index (Cp)
USL/LSL : Upper & Lower Specification Limit
Cp = (USL –LSL) / (6s)
Example : Time to process a student loan
application (Standard = 26 working days)
Specification Limits : 20 to 32 working days
s : 2 working days
Cp = (32 – 20)/ (6*2) = 1.00 (Three Sigma)
7. Cp Index and DPMO
Cp Index DPMO
1 2,700
1.33 63
1.5 6.8
2 0.002
8. Estimating Process Capability
Index from A Sample - Cpk Index
XBAR : average outcome from a sample
S : standard deviation from a sample
Cpk = min { (USL-XBAR) / (3S),
(XBAR-LSL) / (3S) }
Example : XBAR = 25 days, S = 3 days
Cpk = min { (32-25)/(3*3), (25-20)/(3*3)}
= min {0.77, 0.55} = 0.55
9. Six-Sigma Quality (Cp =2 with
Mean Shifting from the Center)
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.
12. DMAIC - Define
Identify customers and their priorities
Identify business objectives
Select a six sigma project team
Define the Critical-to-Quality (CTQ’s)
characteristics that the customers consider
to have the most impact on quality
13. DMAIC - Measure
Determine how to measure the processes
•Identify key internal processes that
influence CTQ’s
•Measure the defect rates currently
generated relative to those processes
14. DMAIC - Analyze
Determine the most likely causes of
defects.
•Identify key factors that are most
likely to create process variation.
15. DMAIC - Improve
Identify means to remove causes of the
defects.
• Confirm the key variables and quantify the
effects on CTQ’s
• Identify maximum acceptable ranges for the
key variables and a system to measure
deviations of the variable
• Modify the process to stay within the
acceptable ranges
16. DMAIC - Control
Determine how to maintain the
improvement
•Put tools in place to ensure that the key
variables remain within the maximum
acceptable ranges under the modified
process
17. Tools for Six-Sigma
and Quality Improvement
Elementary and advanced statistics
Product design and reliability analysis
Measurement
Process control & Process improvement
Implementation and teamwork
Customer survey and feedback
Lean thinking
18. Organization for Six Sigma
Project Champions – project selection
and management, knowledge sharing
Master Black Belts – instructors, coaches,
technical leaders
Black Belts – project team leaders and
team members
Green Belts – project team members,
temporary team members