c2sixsigma

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Six SigmaSix SigmaBy Kittiwat By Kittiwat SirikasemsukSirikasemsuk

2Kittiwat S. KMITL-IE

What Is Six Sigma?What Is Six Sigma?• Goal for Competitive Strength• Strategy for Running a Business• Tool to Eliminate Variation• Vision of Product & Service Excellence• Value to Our Customers• Metric of World Class Companies

Kittiwat S. KMITL-IE3

What is Six Sigma? (GE.)What is Six Sigma? (GE.)• Six Sigma is a highly disciplined

process that helps us focus on developing and delivering near-perfect products and services.


HistoryHistory

Motorola

Allied Signal

General Electric Jack Welch

: 1995

Lawrence Bossidy

Year ‘80


Background of 6Background of 6--SigmaSigma• Motorola implemented a quality improvement

program in 1982.• Quality improvement efforts pointed to the

need for improved analytical tools.• 6-Sigma tools were developed.• Motorola won the Malcolm Baldrige Award in

1988.

Motorola developed and implemented many of the 6-Sigma techniques used today.


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Background of 6Background of 6--SigmaSigma• Companies that have implemented 6-Sigma

include:

• ABB Inc.• Allied Signal• Bombardier• Dow• DuPont• General Electric• Honeywell• Johnson Controls1

• Lear• Lockheed Martin• Motorola• Nokia• Raytheon• Sony• Sun Microsystems• Texas Instruments


Measuring variation and qualityMeasuring variation and quality

σσ•Sigma is measure of variation and quality

•Sigma is measure of quality level.


What is Sigma?What is Sigma?Sigma is a letter in the Greek alphabet. The term “sigma” is used to designate the distribution or spread (variation) about the average or center (mean) of any process or procedure measurement.

The sigma value indicates how often defects are likely to occur. The higher the sigma value, the less likely a process will produce defects. As sigma increases, cost and cycle time go down while customer satisfaction goes up. A winning combination!


66ss ... The Way We Run The Business... The Way We Run The Business

22 308,537308,53733 66,80766,80744 6,2106,21055 23323366 3.43.4

σσ PPMPPM

ProcessCapabilityProcess

Capability

Defects perMillion

Opportunities

DD σσAs defectsgo down...

the Sigma Capabilitygoes up

(Distribution Shifted ± 1.5σ)


A central normal distributionA central normal distribution


A 1.5 sigma shiftA 1.5 sigma shift


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Defect rates versus sigma quality levelDefect rates versus sigma quality level

Kittiwat S. KMITL-IE 13

The Six Sigma StrategyThe Six Sigma Strategy

• a process must produce no more than 3.4 defects per million opportunities.


Six Sigma Breakthrough ChallengeSix Sigma Breakthrough Challenge

20,000 lost articles of mail per hourUnsafe drinking water almost 15 minuteseach day5,000 incorrect surgical operations per week2 short or long landings at most majorairports each day200,000 wrong drug prescriptions each yearNo electricity for almost 7 hours each month

Practical Meaning of “99% Good”

3σ Historical Standard 93.32%Short-Term Yield

4σ Current Standard 99.38%Short-Term Yield

6σ New Standard 99.99966%Short-Term Yield

Execution Excellence!6

Whatis

SixSigma?

• New Competition -- New Standards!


Six Sigma Six Sigma ---- Practical MeaningPractical Meaning99.99966% Good (6 Sigma)

• 20,000 lost articles of mail per hour

• Unsafe drinking water for almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• Two short or long landings at most major airports each day

• 200,000 wrong drug prescriptions each year

• No electricity for almost seven hours each month

• Seven articles lost per hour

• One unsafe minute every seven months

• 1.7 incorrect operations per week

• One short or long landing every five years

• 68 wrong prescriptions per year

• One hour without electricity every 34 years

99% Good (3.8 Sigma)


What are the Limits to Improvement?What are the Limits to Improvement?Clean Sheet

2 sigma 3 sigma 4 sigma 5 sigma 6 sigma

Basic Quality Basic Quality ToolsTools

Statistical Statistical Tools to Tools to Improve Improve ProcessProcess

Designing for Designing for Six Sigma Six Sigma

(DFSS)(DFSS)

Rel

ativ

e Pr

oble

m L

evel

Basic Tools Wall Design Wall


Harvesting the Fruit of Six SigmaHarvesting the Fruit of Six Sigma

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sweet FruitDesign for Six Sigma

Bulk of FruitProcess Characterization and Optimization

Low Hanging FruitSeven Basic Tools

Ground FruitLogic and Intuition

Process Entitlement

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -3 σ Wall, Beat Up Suppliers3 σ Wall, Beat Up Suppliers

4 σ Wall, Improve Processes4 σ Wall, Improve Processes

5 σ Wall, Improve Designs5 σ Wall, Improve Designs


4

The Old Way

Eventually, weEventually, we’’ll find the ll find the right solution.right solution.

How We Search for Solutions How We Search for Solutions

Use a solution Use a solution ““plan.plan.””

The Way


Understanding Process CapabilityUnderstanding Process Capability

LSL USL

Poor Process Capability

Very High Probability of Defects

LSL USL

Excellent Process

CapabilityVery Low Probability of Defects

Very High Probability of Defects

Very Low Probability of Defects

USLUSL

Y = f (X 1 . . . X )n

The variation inherent to any dependent variable (Y) is determined bythe variations inherent to each of the independent variables. (X)


•• An "opportunity" is defined as a chance for An "opportunity" is defined as a chance for nonconformance, or not meeting the required nonconformance, or not meeting the required specifications.specifications.


Reducing VariabilityVariability occurs in every process. All such variances are accumulated and piled up on the output (product or service) and delivered to the customer.

Basic Principles for Reducing VariabilityBasic Principles for Reducing VariabilityBasic Principles for Reducing Variability

••Write it downWrite it down••Show me the dataShow me the data••Say it with graphSay it with graph

CompanyCompany

OutputOutput(Product or Service)(Product or Service)

Vender


Scientific Approaches - From KKD to Science

To reduce variability, SSS employs sceintific approaches.To reduce variability, SSS employs To reduce variability, SSS employs sceintificsceintific approaches.approaches.

• Highly accurate forecasts are possible because quantitative causalities are understood.

• Objective judgment can be made based on statistical facts.

• Simulations allow accurate estimations in different environments and under different conditions.

World of World of KKDKKD

Scientific approach: Make objective judgment based on data.Scientific approach: Make objective judgment based on data.Scientific approach: Make objective judgment based on data.

World of ScienceWorld of Science

• You make judgment based on your intuition and experience alone. You need courage because you have nobody or nothing to rely on but yourself.

• Variability is induced by change in the environment, personnel, or time.

STARTSTARTENDEND

Metrics (Y)Metrics (Y)

y = f (x1, x2)


Basics of the Scientific Approaches

Write it downWrite it down -- Organize your ideas systematically. By documenting Organize your ideas systematically. By documenting principles and procedures, you can share them with principles and procedures, you can share them with others and prevent miscommunication and fruitless others and prevent miscommunication and fruitless discussions.discussions.

Show me the dataShow me the data -- Make objective judgment based on facts and data.Make objective judgment based on facts and data.

Say it with graphSay it with graph -- Show data graphically using figures and graphs, thus Show data graphically using figures and graphs, thus making critical points easy to understand.making critical points easy to understand.


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This Drives Breakthrough ImprovementThis Drives Breakthrough Improvement

Time

Perf

orm

ance

GOOD

BAD 3 Sigma

6 Sigma

Six SigmaBreakthrough


The Cost of Poor Quality The Cost of Poor Quality ““IcebergIceberg””

Additional Costs of Poor Quality 25-35% of sales

Traditional Quality Costs 4-6% of sales

• Inspection

• Warranty

• Scrap

• Rework

• Rejects

Tangible --Measurable Costs

Intangible -- Difficult or Impossible to Measure

• More Setups

• Expediting

• Lost Sales

• Late Delivery

• Lost Customer Loyalty

• Long Cycle Times

• Engineering Change Orders


Kittiwat S. KMITL-IE27 28

Kittiwat S. KMITL-IE

Will it cost too much to improve?Will it cost too much to improve?

Appraisaland

Prevention

QualityQuality

Internal and

External Failure Old Belief

44σσ

Cost


The enlightened perspective!The enlightened perspective!

Appraisaland

Prevention

Internal and

External Failure

44σσ

55σσ66σσ

New Belief

Quality

CostWorld Class


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The Focus of Six SigmaThe Focus of Six Sigma

f (X)f (X)Y=Y=

YDependentOutputEffectSymptomMonitor

X1 . . . XnIndependentInput-ProcessCauseProblemControl


Understanding Process DataUnderstanding Process Data

LSL x USL Zlt = 4.5 LSL x USL

Zst = 6.0

CUMULATIVELONG-TERMCAPABILITY

CUMULATIVESHORT-TERMCAPABILITY

Center the Means

RATIONAL SUBGROUPSNOTE:SHORT-TERMPROCESSES AREASSUMEDCENTERED


In Control

(Common Cause)

Controlled state with a high process capability

(low variance due to common causes)

Process Capability and Process Control

1. Execute process control.

2. Improve process capability.

UCLLCL

USLLSL Controlled state but with a low process capability

(large variance due to common causes)

Out of Control

(Special Cause)11

22

33

44


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Focus of six sigma Focus of six sigma ““processprocess””1. Defect Reduction1. Defect Reduction2. Customer Satisfaction2. Customer Satisfaction3. Cycle time Reduction3. Cycle time Reduction4. Variation Reduction4. Variation Reduction

PROFITPROFIT……Kittiwat S. KMITL-IE

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Addition : Six sigmaAddition : Six sigma• Not narrow, not only process line to

QI.• Being culture and a way of life.• Not try manage problem but will try

eliminate problem.• Not CI , select one problem to

being project.

power six sigma= people power + process powerpower six sigma= people power + process powerKittiwat S. KMITL-IE

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Deployment StructureDeployment Structure

Master Black Belts (Full /Part-Time)

Champions (Part-Time)

Black Belts (Full-Time)

Green Belts (Part-Time)

Member of Project (Part-Time)


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Sony Six Sigma Members

ChampionChampionChampion

Grand ChampionGrand ChampionGrand Champion

Sector ChampionSector ChampionSector Champion

Executive ChampionExecutive ChampionExecutive Champion

Green BeltGreen BeltGreen Belt

Black BeltBlack Belt

Yellow BeltYellow BeltYellow Belt

White BeltWhite Belt

TrainerTrainerTrainer

Presidents at Sony Companies, Labs, and Affiliated CompaniesPresidents at Plants

Officers at Sony Companies, Directors at Plants and Affiliated Companies, GMs

Senior Managers, Deputy GMs, GMs at Plants and Affiliated Companies

Assistant Managers and Leaders

Members with 3-5 year's experience

Recruits

Corporate EVP and above

COO CFO

NC PresidentsEurope-CEO SEL-COO

Corporate CEOGuidelineGuideline

SDT SSS committeeSDT SSS SDT SSS

committeecommittee


Traditional ApproachTraditional Approach

Statistical Tools Statistical Consultant

Engineer


• Six Sigma Black Belts need to have many qualities to be effective. They need strong leadership and project management skills. They also need to be aware of decision alternative relative to choosing the right Six Sigma tool for a given situation.

• People selected to become Black Belts need to be respected for their ability to lead change, effectively analyze a problem, facilitate a team, and successfully manage a project.

Black Black BletBlet SelectionSelection


- Full-Time, Trained (coach) Resource who Completes 5-10 Projects to Reduce Defects

Black Black BletBlet (BB)(BB)


The Leadership Role The Leadership Role -- (Champions)(Champions)– Facilitate the Leadership, Implementation, and

Deployment of Six Sigma Philosophy• Create the Vision• Define the Path• Tear Down/destroy Roadblocks• Ensure Process Owner’s Support• Encourage Follow-up and Monitoring Activities• Realize/understand the Gains


The Master Black Belt RoleThe Master Black Belt Role–Individuals with an aptitude for

statistics and a strong interest in understanding and making breakthrough improvements in the processes


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- A Full Time/Part Time –Teacher and Mentor of Black Belts.

Master Black Belt Master Black Belt ((MBBMBB))


The Green Belt Role (GB)The Green Belt Role (GB)– Incorporate tools/methodology of Six Sigma into

current jobs to make improvements on processes• Understand 6s Methodology• Communicate Project Status• Deliver on Project Results

– Expectation: 2 Projects per year• Use tools to improve processes• Sustain improved process after improvement


Reach a Critical MassReach a Critical Mass

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18

Time in quarters (Roughestimate only!)

Time in quarters (Roughestimate only!)

Num

ber o

f peo

ple

Num

ber o

f peo

ple

Master BlackBelts

Master BlackBelts

BlackBelts

BlackBelts

Green BeltsGreen Belts

Project TeamMembers and allother Employees

Project TeamMembers and allother Employees


Number of Suitable People Number of Suitable People Black Belt = 1% of all employees.Master Black Belt : # Black Belt

1:5 (4 year initiated) 1:20 (5 year later)

Green Belt = 100% (in 4 year) of all employeesProject Champion = 100% (in 4 year)

of all board executive.Kittiwat S. KMITL-IE

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The Breakthrough PhasesThe Breakthrough Phases

BreakthroughStrategy

Characterization

Phase 1:Measurement

Phase 2:Analysis

Optimization

Phase 3:Improvement

Phase 4:Control


D D -- M M -- A A -- I I -- CC

Define

Measure

Analyze

Improve

Control

1. Customer expectations of the process?

2. What is the frequency of defects?

3. When and where do defects occur?

4. How can we fix the process?

5. How can we make the process stay fixed?

y = f (x)


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Basic Approach to Sony Six Sigma - 14 StepsDDefineefine

CTQ Break down the CTQ

Define CTQ based on VOC and the company’s profitsStep 1

Step 2

AAnalyzenalyzeVital Few (X)

Verify the reliability of the Vital Few (X) measurement system

Identify Vital Fews (X) that are critical to the metrics (Y)

List and analyze factors of variance of the metrics (Y)Step 6

Step 7

Step 8

IImprovemproveOptimal Condition Test and verify the optimal conditions in the real process

Identify the relationship between the Vital Fews (X) and the metrics (Y)Set optimal conditions for the Vital Fews (X) including their tolerances

Step 9

Step 10

Step 11

CControlontrolStandardization

Share the improvement process and transfer best practicesto others

Establish a Vital Few (X) control system and sustain itOrganize and accumulate the knowledge gained through the project

Step 12

Step 13

Step 14

MMeasureeasureCheck the current status of the metrics (Y) and determine the target for improvement

Define metrics (Y) that represent CTQ quantitatively

Verify the reliability of the measurement system for the metrics (Y)

Step 3

Step 4

Step 5Metrics (Y)

Following these 14 DMAIC steps substantially increases the chance of implementing CTQ.

Following these 14 DMAIC steps substantially increases the chance of implementing CTQ.


DMAICDMAIC


S4

Phase of Smart Six Sigma Solution.(SPhase of Smart Six Sigma Solution.(S44))Kittiwat S. KMITL-IE 51 52Kittiwat S. KMITL-IE


The Breakthrough CookbookThe Breakthrough CookbookDefineA Identify Customer CTQB Product/Process TreeC Bound Project / BenefitsD Formal Approval

Measure 1 Select CTQ Characteristic Y Fishbone, FMEA, Pareto,Customer, QFD2 Define Performance Standards Y Customer, Blueprints (Plan, Design)3 Validate Measurement System Y Gage Study

Analyze4 Establish Product Capability Y Capability Indices 5 Define Performance Objective Y Team, Benchmarking6 Identify Variation Sources* X Multi-Vari ,Hypothesis Tests

Improve7 Screen Potential Causes X DOE-Fraction8 Discover Variable Relationships X DOE-Full9 Establish Operating Tolerances X Predict. Eqns., DFSS ,Realistic Tolerancing

Control10 Validate Measurement System* X Gage Study 11 Determine Process Capability X Capability Indices12 Implement Process Control System X Risk Analysis,Mistake Proof, SPC* You may want to validate the Measurement System for “X” before step 6.

Step Description Focus Tools


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Why do we really measure?Why do we really measure?

BehaviorsValues Measures


Discrete Vs. Continuous DataDiscrete Vs. Continuous Data

FAIL PASS

Electrical Circuit

DISCRETE

NO-GO GO

QTY UNIT DESCRIPTION TOTAL

1 $10.00 $10.003 $1.50 $4.5010 $10.00 $10.002 $5.00 $10.00

SHIPPING ORDER

ERROR

$

TEMPERATURE

Thermometer

Time

CONTINUOUS

Caliper$


Understanding ProcessesUnderstanding ProcessesDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

Select CTQ Characteristic

Define Performance Standards

Validate Measurement System

Select CTQ Characteristic

MeasureMeasureMeasure

FishboneC&E MatrixFMEAPareto

X1

X2X3

X4

X5

X6X7

X8

X9

X10

XX33 XX88

Vital Few XsVital Few Xs

Funnel EffectFunnel Effect


Fishbone DiagramFishbone Diagram

Problem Statement

Measurements Materials Men & Women

MethodsEnvironment Machines


C&E MatrixC&E MatrixRating of

Importance toCustomer

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Req

uire

men

t

Total

Process Step Process Input

1 02 03 04 05 06 07 08 09 010 011 012 013 014 015 016 017 018 019 020 0

0

Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Lower Spec

TargetUpper Spec

Cause and EffectMatrix

XsXs

YsYs


FMEAFMEASeverity×Occurrence×Detection＝RPNRPN


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FMEA Form FMEA Form –– 6 Sigma6 Sigma

Process Step/Input Potential Failure Mode Potential Failure Effects

SEV

Potential CausesOCC

Current ControlsDET

RPN

Actions Recommended

What is the process step/ Input under

investigation?

In what ways does the Key Input go wrong?

What is the impact on the Key Output Variables (Customer Requirements) or internal requirements?

How

Sev

ere

is th

e ef

fect

to th

e cu

sotm

er? What causes the Key Input to

go wrong?

How

ofte

n do

es c

ause

or

FM

occ

ur? What are the existing controls and

procedures (inspection and test) that prevent eith the cause or the Failure Mode? Should include an SOP number.

How

wel

l can

you

de

tect

cau

se o

r FM

? What are the actions for reducing the

occurrance of the Cause, or improving detection? Should

have actions only on high RPN's or easy

fixes.

0

0

0

FMEAFMEA


Pareto ChartPareto Chart

Missing Screw s

Missing Clips

Leaky Gasket

Defective Housing

Incomplete Part

Others

274 59 43 19 10 1864.8 13.9 10.2 4.5 2.4 4.3 64.8 78.7 88.9 93.4 95.7 100.0

0

100

200

300

400

0

20

40

60

80

100

DefectCount

PercentCum %

Perc

ent

Cou

nt

Pareto Chart for Defects


The Measurement PhaseThe Measurement Phase

The Process

X1 X2 X3

Controllable Inputs

Z1 Z2 Z3

Inputs:

Raw Materials,

components, etc.

Uncontrollable Inputs

Y1, Y2, etc.

Quality Characteristics:

Outputs LSL USL

• Establish the performance baseline


The Analysis PhaseThe Analysis Phase

The Process

X1 X2 X3Controllable Inputs

Z1 Z2 Z3

Inputs:

Raw Materials,

components, etc.


Y1, Y2, etc.


OutputsLSL USL

• Identify vital few X’s

X1

X2X3

X4

X5

X6X7

X8

X9

X10

XX33 XX88

Vital Few XsVital Few Xs

Funnel EffectFunnel Effect


Using Tools in Analysis PhaseUsing Tools in Analysis Phase

• T-Test• Homogeneity of Variance

• 1-Way ANOVA

• Scatterplot• Simple Regression

Continuous Discrete

X (Factor) treated as:X (Factor) treated as:

Y (R

espo

nse)

Y (R

espo

nse)

Con

tinuo

usD

iscr

ete

A B C X=Car Brand

Y=Gas Mileage(mpg)

Avg

Avg Avg30

20

10

0 .5 1 1.5 2X=Car Weight (tons)

Y=Gas Mileage(mpg)

30

20

10

A B C X=Car Brand

Y= InjurySeverity

Death

Major

Minor

None

75 60 65

160 115 175

100 65 135

15 10 25

• Goodness of Fit

• Test of Independence



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The Improvement PhaseThe Improvement Phase


The Process


Z1 Z2 Z3

Inputs:

Raw Materials,

components, etc.

Y1, Y2, etc.


OutputsX

X

XLSL USL

LSL USL

• Determine the governing equation


Six Sigma IMPROVESix Sigma IMPROVEXsXs YsYs

Process


Six Sigma IMPROVESix Sigma IMPROVEReworkRework

NVANVA

Hidden FactoryHidden Factory

XsXs YsYsDefectDefectReduce the Variance Reduce the Variance

Process


The Control PhaseThe Control Phase

The Process


Inputs:

Raw Materials,

components, etc.

Z1 Z2 Z3Uncontrollable Inputs

Y1, Y2, etc.


Outputs LSL USL

• Implement long-term control methods


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Management commitmentManagement commitmentJack WelchJack Welch- promoting opposition have to be trained

six sigma formerly.- Special reward of Executive Manager

40%

Six sigma has changed the DNA of GESix sigma has changed the DNA of GE

- it is now the way we work — in everything we do and in every product we design.


GE 2001 Annual Report Industrial Systems

-- using Six Sigma tools and using Six Sigma tools and processes to meet commitments processes to meet commitments and achieveand achieve cyclecycle--time reductions time reductions of up to 45%. of up to 45%. -- WithWith 700 full700 full--time Black Belt time Black Belt professionalsprofessionals andand 15,000 active 15,000 active Six Sigma projectsSix Sigma projects across our across our businesses around the globe.businesses around the globe. 74Kittiwat S. KMITL-IE

GE 2001 Annual Report Aircraft Engines

Throughout 2001,Throughout 2001,- we deployed At the Customer, - For the Customer Six Sigma quality teams, …-- they completed 3,000 costthey completed 3,000 cost--saving saving projects.projects.-- our productivity gains from Six our productivity gains from Six SigmaSigma 75Kittiwat S. KMITL-IE

GE 2001 Annual Report Appliances.

GEA Six SigmaGEA Six Sigma- probing their processes and assisting them with quality improvement. -- Large customers like Large customers like SheaSheaHomes Homes were were recognized/admittedrecognized/admittednationally for their Six Sigma nationally for their Six Sigma efforts.efforts. 76Kittiwat S. KMITL-IE

GE 2001 Annual Report Industrial Systems

Six Sigma continued Six Sigma continued -- improve processes and deliver improve processes and deliver substantial productivitysubstantial productivity benefitsbenefitsto customers.to customers.-- resulting inresulting in significant savingssignificant savingswhilewhile improving customerimproving customersatisfaction. Because of this satisfaction. Because of this success.success. 77Kittiwat S. KMITL-IE

Applying Six Sigma for Used Life• How to increase the family income?

- Select important problem and cause.- Interested in Xs to improve.

• How to divide some work for operator.- Separate high variance work to give

for one operator.• How to increase the time to reading?• How to go to U. or work in time?

elseKittiwat S. KMITL-IE

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14

We don't know what we don't knowWe can't act on what we don't knowWe won't know until we searchWe won't search for what we don't questionWe don't question what we don't measureHence, We just don't know


79 80Kittiwat S. KMITL-IE

c2sixsigma

Documents

external failure appraisal

x2 x3quality characteristics

master black belt

black belts

measurement system

major airports

z2 z3

long landings