Introduction to Six Sigma

Prepared & Edited by

Nazim Uddin
Assistant Professor
National Institute of Textile Engineering & Research
Six Sigma
 WHAT IS SIX SIGMA?
s Six Sigma is a method that provides organizations tools to
improve the capability of their business processes.
s This increase in performance and decrease in process
variation lead to defect reduction and improvement in
profits, employee morale, and quality of products or
services.
s Six Sigma quality is a term generally used to indicate a
process is well controlled (within process limits ±3s from
the centre line in a control chart, and requirements/
tolerance limits ±6s from the centre line).
 Development of Six Sigma
s Motorola launched the Six Sigma program in the 1980s
s General Electric initiated the implementation of Six
Sigma in the mid-1990s
s Organizations in all industries have applied Six Sigma
in recent years
s Six Sigma has replaced TQM and BPR as the key
strategy for quality improvement
 Definitions
s σ – Standard Deviation, a measure of variability
s Six Sigma – A quality improvement philosophy that
focuses on eliminating defects through reduction of
variation in a process
s Defect – A measurable outcome that is not within
acceptable (specification) limits
 TQM Versus Six Sigma
TQM Six Sigma
A management A philosophy that focuses
philosophy of quality on defect reduction and
improvement cost reduction
Encourages involvement Relies on a selected group
of all employees of highly-trained employees
Senior management Senior management is
provides direct support held accountable for results
 Key Success Factors for
Six Sigma
s Committed leadership from top management
s Integration with existing initiatives, business
strategy, and performance measurement
s Process thinking
s Disciplined customer and market intelligence
gathering
s A bottom-line orientation and continuous
reinforcement and rewards
s Training
 Six-Sigma Metrics –
Measuring Defect Rate
s Defects per unit (DPU) = number of defects discovered
÷ number of units produced

s Defects per million opportunities (DPMO) = number of

defects discovered ÷ opportunities for error × 1,000,000
 Estimating Defect Rate – Process
Capability Index (Cp)
s USL/LSL : Upper & Lower Specification Limit
s Cp = (USL –LSL) / (6σ)
s Example : Time to process a student loan application
(Standard = 26 working days)
s Specification Limits : 20 to 32 working days

s σ : 2 working days
s Cp = (32 – 20)/ (6*2) = 1.00 (Three Sigma)
Cp Index and DPMO
Cp Index DPMO
1 2,700
1.33 63
1.5 6.8
2 0.002
 Estimating Process Capability Index
from A Sample - Cpk Index
s XBAR : average outcome from a sample
s S : standard deviation from a sample
s Cpk = min { (USL-XBAR) / (3S),
(XBAR-LSL) / (3S) }
s Example : XBAR = 25 days, S = 3 days
s Cpk = min { (32-25)/(3*3), (25-20)/(3*3)}
= min {0.77, 0.55} = 0.55
 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.
 k-Sigma Quality Levels
s Six sigma results in at most 3.4 defects per
million opportunities
GE’s Six-Sigma
Problem Solving Approach

1. Define
2. Measure
3. Analyze
4. Improve
5. Control
 DMAIC - Define
s Identify customers and their priorities
s Identify business objectives
s Select a six sigma project team
s Define the Critical-to-Quality (CTQ’s)
characteristics that the customers consider
to have the most impact on quality
 DMAIC - Measure
s Determine how to measure the processes
s Identify key internal processes that
influence CTQ’s
s Measure the defect rates currently
generated relative to those processes
 DMAIC - Analyze
s Determine the most likely causes of
defects.
s Identify key factors that are most
likely to create process variation.
 DMAIC - Improve
s Identify means to remove causes of the
defects.
s Confirm the key variables and quantify the
effects on CTQ’s
s Identify maximum acceptable ranges for the
key variables and a system to measure
deviations of the variable
s Modify the process to stay within the
acceptable ranges
 DMAIC - Control
s Determine how to maintain the
improvement
s Put tools in place to ensure that the key
variables remain within the maximum
acceptable ranges under the modified
process
 Tools for Six-Sigma
and Quality Improvement
s Elementary and advanced statistics
s Product design and reliability analysis
s Measurement
s Process control & Process improvement
s Implementation and teamwork
s Customer survey and feedback
s Lean thinking
 Organization for Six Sigma
s Project Champions – project selection and
management, knowledge sharing
s Master Black Belts – instructors, coaches,
technical leaders
s Black Belts – project team leaders and
team members
s Green Belts – project team members,
temporary team members
 The Difference between Six Sigma
and Lean Six Sigma
s Comparing Six Sigma and Lean. Essentially, Six
Sigma and Lean systems have the same goal.
s Lean practitioners believe that waste comes from
unnecessary steps in the production process that do
not add value to the finished product, while Six
Sigma proponents assert that waste results from
variation within the process.
Six Sigma Pioneered at Motorola
& GE in the mid-1980s
 Why is Six Sigma called Six Sigma, and
not Four or Five Sigma or Eight Alpha?
s Sigma is a Greek symbol represented by "σ".
s Sigma is a statistical term that measures process
deviation from the process mean or target.
s Mean is also referred to as average in common
language
DMAIC
DMAIC
 DMAIC
s DMAIC is a data-driven quality strategy used to
improve processes.
s It is an integral part of a Six Sigma initiative, but in
general can be implemented as a standalone quality
improvement procedure or as part of other process
improvement initiatives such as lean.
 DMAIC is an acronym for the five
phases that make up the process
s Define the problem, improvement activity,
opportunity for improvement, the project goals, and
customer (internal and external) requirements.
s Measure process performance.
s Analyze the process to determine root causes of
variation, poor performance (defects).
s Improve process performance by addressing and
eliminating the root causes.
s Control the improved process and future process
performance.
 1-Define
s The process kicks off with a clear statement of the
target business problem and the scope of the
intended improvements.
s The current state is documented in great detail as is
the problem to be solved.
s At this point, teams also determine the objectives of
improvement and map out what success looks like.
s Some organizations use formal project charters at the
outset of a DMAIC cycle, while others are less formal.
s Ample documentation and detail are essential
nevertheless.
 2-Measure
s DMAIC is a data-driven approach to improvement.
s That means that you need to have baseline
measurements that can be compared to post-
improvement results.
s Quantifiable process effectiveness measurements
might include the number of defects, process
duration, process cost, or other relevant metrics.
s One or more members of the team should be
assigned the responsibility for measurement and the
team should agree on how frequently the
measurement will take place.
 3-Analyze
s Now that the team is armed with data, a root-cause
analysis is performed to determine the underlying
reason(s) for the business problem.
s Many organizations find that the 5 Whys technique is a
helpful way to structure the process.
s Process maps are also popular.
s It is important to remember that many problems have
more than one root-cause.
s Keeping attention on the causes, not the symptoms, helps
make solutions more apparent and reduces the tendency
to become defensive or to blame people, rather than
processes.
 Determine the Root Cause: 5
Whys
s When Is 5 Whys Most Useful
s When problems involve human factors or interactions.
s In day-to-day business life; can be used within or without a Six Sigma project.

s How to Complete the 5 Whys

s 1-Write down the specific problem. Writing the issue helps you formalize the
problem and describe it completely. It also helps a team focus on the same
problem.
s 2-Ask Why the problem happens and write the answer down below the
problem.
s 3-If the answer you just provided doesn’t identify the root cause of the
problem that you wrote down in Step 1, ask Why again and write that answer
down.
s 4-Loop back to step 3 until the team is in agreement that the problem’s root
cause is identified. Again, this may take fewer or more times than five Whys.
 4-Improve
s It is essential to fight the urge to leap to the Improve
stage.
s Proposed improvements should be implemented only
after careful measurement and thoughtful analysis.
s There is an element of experimentation in DMAIC,
but it should be tempered with good data and sound
logic.
s Any risks associated with the improvement should be
identified and communicated, along with the steps
taken to mitigate those risks.
s Everyone should be on the lookout for unintended
consequences so that action can be taken swiftly.
 5-Control
s The final step in a DMAIC cycle is Control.
s It is an essential piece of the equation that is often
missing when improvement work occurs without
structure.
s Control is about making sure that successful
improvements don’t degrade over time.
s At this point teams, verify measurable improvement and
determine if the improvements as implemented have
achieved the project goals.
s They also update Standard Work documentation and look
for other ways to integrate the lessons that have been
learned.
 How is DMAIC deployed?
s There are two approaches to implementing DMAIC:-
s The first is the team approach in which individuals
who are skilled in the tools and method, such as
quality or process improvement experts, lead a team.
s The team members work on the project part-time
while caring for their everyday responsibilities.
s The quality or process improvement expert might be
assigned to several projects. These are long-duration
projects taking months to complete.
 How is DMAIC deployed?
s The second tactic involves the kaizen event method, an
intense progression through the DMAIC process typically
done in about a week.
s Prep work is completed by the quality or process improvement
expert, and is cantered on the define and measure phases.
s The rest of the phases are done by a team of individuals who
have been pulled from their regular duties for the duration of
the kaizen event.
s In most cases, the changes are piloted during the event, and
full-scale implementation is completed after the event.
s It is crucial the impact of these changes—whether they are
wanted or not—are monitored.
s The advantage of this approach is the ability to make rapid
change.
 When Should DMAIC be Used?
s When improving a current process, if the problem is complex
or the risks are high, DMAIC should be the go-to method.
s Its discipline discourages a team from skipping crucial steps
and increases the chances of a successful project, making
DMAIC a process most projects should follow.
s If the risks are low and there is an obvious solution, some of
the DMAIC steps could be skipped, but only if:
s Trustworthy data show this is the best solution for your
problem.
s Possible unintended outcomes have been identified and
mitigation plans have been developed.
s There is buy-in from the process owner.
s If the obvious solution can’t be proven with trustworthy data, a
DMAIC project should be launched.
 Tools are Used for DMAIC
D-Define Phase Tools Used
s Define Customers and s Project Charter
Requirements (CTQs)
s Process Flowchart
s Develop Problem Statement,
Goals and Benefits s SIPOC Diagram
s Identify Champion, Process s Stakeholder Analysis
Owner and Team s DMAIC Work Breakdown
s Define Resources Structure
s Evaluate Key Organizational
Support s CTQ Definitions
s Develop Project Plan and s Voice of the Customer
Milestones Gathering
s Develop High Level Process
Map
 Tools are Used for DMAIC
M – Measure Phase Tools Used
s Define Defect, Opportunity, s Process Flowchart
Unit and Metrics
s Data Collection
s Detailed Process Map of
Appropriate Areas s Plan/Example
s Develop Data Collection Plan s Benchmarking
s Validate the Measurement s Measurement System
System Analysis/Gage R&R
s Collect the Data
s Voice of the Customer
s Begin Developing Y=f(x)
Relationship Gathering
s Determine Process Capability s Process Sigma Calculation
and Sigma Baseline
 Tools are Used for DMAIC
A – Analyze Phase: Tools Used
s Histogram
s Define Performance
s Pareto Chart
Objectives s Time Series/Run Chart
s Identify Value/Non-Value s Scatter Plot
s Regression Analysis
Added Process Steps s Cause and Effect/Fishbone
s Identify Sources of Variation Diagram
s 5 Whys
s Determine Root Cause(s) s Process Map Review and Analysis
s Statistical Analysis
s Determine Vital Few x’s, s Hypothesis Testing(Continuous and
Y=f(x) Relationship Discrete)
s Non-Normal Data Analysis
 Tools are Used for DMAIC
I – Improve Phase Tools Used
s Perform Design of s Brainstorming
Experiments s Mistake Proofing
s Develop Potential Solutions
s Design of Experiments
s Define Operating Tolerances
s Pugh Matrix
of Potential System
s Assess Failure Modes of s QFD/House of Quality
Potential Solutions s Failure Modes and Effects
s Validate Potential Analysis (FMEA)
Improvement by Pilot s Simulation Software
Studies
s Correct/Re-Evaluate
Potential Solution
Tools are Used for DMAIC
C – Control Phase: Tools Used
s Define and Validate Monitoring and
Control System s Process Sigma Calculation
s Develop Standards and Procedures s Control Charts(Variable
s Implement Statistical Process Control
s Determine Process Capability
and Attribute)
s Develop Transfer Plan, Handoff to s Cost Savings Calculations
Process Owner
s Verify Benefits, Cost Savings/ s Control Plan
Avoidance, Profit Growth
s Close Project, Finalize
Documentation
s Communicate to Business, Celebrate
 Design For Six Sigma (DFSS)
Approach
s The second focuses on process design using Design For
Six Sigma (DFSS) approach. DFSS typically requires IDOV:
s Identify process goals in terms of critical parameters,
industry & competitor benchmarks
s Design involves enumeration of potential solutions and
selection of the best
s Optimize performance by using advanced statistical
modeling and simulation techniques and design
refinements
s Validate that design works in accordance to the process
goals
 Design For Six Sigma (DFSS)
Approach
s Sometimes a DMAIC project may turn into a DFSS
project because the process in question requires
complete re-design to bring about the desired degree
of improvement.
s Such a discovery usually occurs during improvement
phase of DMAIC.
 Six Sigma
s It is extremely important to remember that Six Sigma
is not just about product quality where only three
products in a million are defective.
s It is about what is important or critical to the
customer, whether internal or external.
s It is focuses on value in context of the customer
and the market.