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Six sigma basics

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Page 1: Six Sigma Presentation Basics

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Page 2: Six Sigma Presentation Basics

What is Six Sigma ?

Page 3: Six Sigma Presentation Basics

Understanding Variation

When the Lord created the world and people to live in it - an enterprise which, according to modern science, took a very long time – I could well imagine that he reasoned with himself as follows:

“If I make everything predictable, these human beings, whom I have endowed with pretty good brains, will undoubtedly learn to predict everything,

and they will thereupon have no motive to do anything at all,

because they will recognize that the future is totally determined and cannot be influenced by any human action.

Page 4: Six Sigma Presentation Basics

Understanding Variation

On the other hand, if I make everything unpredictable,

they will gradually discover that there is no rational basis for any decision whatsoever and, as in the first case, they will thereupon have no motive to do anything at all.

Neither scheme would make sense.

I must therefore create a mixture of the two.

Let some things be predictable and let others be unpredictable.

They will then, amongst many other things, have the very important task of finding out which is which.

Page 5: Six Sigma Presentation Basics

Understanding Variation

Variation is inherent to a process……

Page 6: Six Sigma Presentation Basics

Understanding Variation

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Sum

Mean

S2

S1

X X–X (X-X)2

i 1

(Xi- X ) 2

n

n 1

(Xi- X ) 2

i 1

n

n 1

(Xi- X ) 2

n

130

166

178

131

140

125

127

145

110

184

161

194

171

125

163

2250

150

400

256

784

361

100

625

529

25

1600

1156

121

1936

441

625

169

9128

652

25.53

–20

16

28

–19

–10

–25

–23

–5

–40

34

11

44

21

–25

13

X

X =X

ii =1

n

nSample Mean

Sample Standard Deviation s =

(Xi- ) 2

i 1

n

n 1

Page 7: Six Sigma Presentation Basics

Understanding Variation

If we take the height of all the people of India and draw a distributionOf frequencies it will tend to follow a normal distribution

Page 8: Six Sigma Presentation Basics

Understanding Variation

MeanX-bar

Page 9: Six Sigma Presentation Basics

Understanding Variation

MeanX-bar LSLUSL

LSL and USL are those specification limits beyond which your product doesn’t have a salable value in the market

Page 10: Six Sigma Presentation Basics

Understanding Variation

MeanX-bar USLLSL

T

Cp = T/6σ

Cpk = {(Mean - LSL)/3σ ,(USL - Mean)/3σ }

Page 11: Six Sigma Presentation Basics

Understanding Variation

-3s -2s -1s X +1s +2s +3s

68.26%

95.46%

99.73%

68.26% Fall Within +\- 1 Sigma

95.46% Fall Within +\- 2 Sigma

99.73% Fall Within +\- 3 Sigma

SIGMA

34.13% 34.13%

13.60% 13.60%2.14% 2.14%

0.13% 0.13%

Page 12: Six Sigma Presentation Basics

Understanding Variation

0x

y

1SD= 68% DATA

2SD = 95% DATA

3SD = 99%DATA

Page 13: Six Sigma Presentation Basics

Understanding Variation

Common Cause

Special Cause

Type of Variation Characteristics

Always Present Expected

PredictableNormal

Not Always Present

UnexpectedUnpredictable

Not NormalHas a surprise

element

Characteristics

Common vs. Special Cause

Page 14: Six Sigma Presentation Basics

Understanding Variation

• 2 short or long landings at almost all major airports each day

• Unsafe drinking water almost 15 minutes each day

• No electricity for almost 7 hours each month

• 20000 lost articles of mail per hour

• 5000 incorrect surgical operations per week

• 200000 wrong drug prescriptions each year

Can you believe, all above correspond to a performance level of 99%!

• 50 Newborn Babies Dropped At Birth By Doctors Each Day

Page 15: Six Sigma Presentation Basics

Understanding Variation

• Then We Would Have…• One Hour Of Unsafe Drinking Water Every Month• Two Unsafe Plane Landings Per Day At O’Hare International

Airport In Chicago

• 16,000 Pieces Of Mail Lost By The U.S. Postal Service Every Hour

• 500 Incorrect Surgical Operations Each Week• 50 Newborn Babies Dropped At Birth By Doctors Each Day• 22,000 Checks Deducted From The Wrong Bank Accounts Each

Hour• 32,000 Missed Heartbeats Per Person, Per Year

If We Accepted The Goal Of 99.9% Quality

Page 16: Six Sigma Presentation Basics

Understanding Variation

The Sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.

Sigma Rating PPM2 308,5373 66,8074 6,2105 2336 3.4

Process Defects per Capability Million Opportunities

Page 17: Six Sigma Presentation Basics

Understanding Variation

Higher σ = less variation = fewer defects

= better performance

Lower Specification

Limit (LSL)

Upper Specification Limit (USL)

6 σ process

Page 18: Six Sigma Presentation Basics

Understanding Variation

SPECIFICATION WIDTH

Process Width

Cp = Specification width Process Width

Process variability

If the variability is well within the specified width then the process is capable

Page 19: Six Sigma Presentation Basics

3-Sigma VS 6-Sigma Process

LSL USL LSL USL

-6 -5 -3 -2 -1 0 1 2 3 4 5 6 -6 -5 -3 -2 -1 0 1 2 3 4 5 6

Z- Scale Z- Scale

1.5 1.5

66,807 DPMO 3.4 DPMO

3-Sigma Process 6-Sigma Process

In every process it is observed that 1.5 Sigma long term drift takes place

6-= 99.99966%

3-= 99.73%

Page 20: Six Sigma Presentation Basics

What is Six Sigma ?

A Measurement Scale Which Compares The Output

Of A Process To Customer Requirements

Page 21: Six Sigma Presentation Basics

What is Six Sigma ?

93% 66,807 3.0

98% 22,750 3.5

99% 6,210 4.0

99.87% 1,350 4.5

99.9997% 3.4 6.0

DPMODPMOPercentPercent

Page 22: Six Sigma Presentation Basics

Understanding Variation

IRS - Tax Advice (phone-in)

SIGMA (with ±1.5 Sigma Shift)

2 3 4 5 6 7

100K

10K

1K

100

10

1

(233 ppm)

Best in Class

Purchased Material Lot Reject Rate

Domestic AirlineFlight Fatality Rate

(0.43 ppm)

Payroll Processing

Journal VouchersWire Transfers

Air Line BaggageHandling

Order Write-upAverageCompany

Restaurant Bills Doctor Prescription Writing

(6210 ppm)

(3.4 ppm)

Benchmarking

(66810 ppm)

Page 23: Six Sigma Presentation Basics

Understanding Variation

Sweet Fruit – 6 Design for Six Sigma (DFSS)

Bulk of Fruit – 4 to 5 Process Improvement Six Sigma Tools

Low Hanging Fruit – 3 to 4

Ground Fruit – Up to 2Logic and Intuition + Basic Quality Tools

Process Entitlement

DMAIC

DFSS

Page 24: Six Sigma Presentation Basics

Kano Model

Satisfaction

+

Dissatisfaction

One-DimensionalDelighters

Must Be

InnovationCompetitive Priority

Critical Priority

FunctionalDysfunctional

Page 25: Six Sigma Presentation Basics

Taguchi Model

Cos

t

Performance

Page 26: Six Sigma Presentation Basics

Six Sigma

Six sigma is about reducing variations in a process

Customer Happy

Page 27: Six Sigma Presentation Basics

Methodology

The methodology:

DMAIC

(define, measure, analyse, improve, control)

methodology to root out and eliminate the causes of defects

Page 28: Six Sigma Presentation Basics

Methodology

Charter

Business Case

Problem Statement

Goal Statement

Project Scope

Milestones

Roles

Definitions:

– Units

– Defects

– Opportunity

– Process Sigma

Data Collection Plan

Data Display Tools

Process

Stratification Map Analysis C & E

Scatter Plots Regression DOE

Solution Summary

Cost/Benefit Analysis

Pilot

Standardizing

Response Plan

CPM Tree

S I P O CS

Monitoring

Documenting

Root Cause Analysis

Wk 2 Wk 4 Wk 8Wk 6 Wk 12Wk 10

AA

BB

C

D

G

H

I

J

E

Wk 1 Wk 3 Wk 5 Wk 7 Wk 9 Wk 11

F

Page 29: Six Sigma Presentation Basics

Induce Statistical thinking

Practical problemPractical problem

Statistical problemStatistical problem

Statistical Statistical solutionsolution

Practical solutionPractical solution

Page 30: Six Sigma Presentation Basics

DMAIC Methodology

Define

Measure

Clarify Customer RequirementsClarify Customer Requirements

Define Process (SIPOC)Define Process (SIPOC)

Charter A TeamCharter A Team

Define

Measure

Analyze

$ Identify And Quantify The Opportunity $

Clarify Customer Requirements

Define Process (SIPOC)

Output Measurement

Root Cause Analysis

Stratification

Scatter Plots Regression

Map Analysis C & E

Process Variation

DOE

Charter A Team

Page 31: Six Sigma Presentation Basics

DMAIC Methodology

Improve

Implement

Control

Monitoring Standardizing Documenting

Generate Solutions

Select

Pilot

Response Plan

Page 32: Six Sigma Presentation Basics

Different Faces

Plan 1 Charter/Theme Define

2 Data Collection Measure

3 Root Cause Analyze

Do 4 Solution ImprovePlanning AndImplementation

Check 5 ConfirmingSolution Works

6 Standardization Control

Act 7 Reflect NextSteps

PDCA 7 STEPS “DMAIC”

The Different Faces

Page 33: Six Sigma Presentation Basics

Define The Customer, Their Requirements, The Team Charter And The Core Business Process• Team Charter Documented And Reviewed With Champion• Customer Requirements Derived And Documented• Validated High Level Process Map Completed

Deliverables

DefineDefine Measure Improve ControlAnalyze

Define

Page 34: Six Sigma Presentation Basics

Measure The Core Business Process Performance • Identified Key Measures• Developed A Data Collection Plan For The Process• Executed The Plan And Document Results• Process Variation Displayed With Appropriate Charts

And Graphs• Calculated Baseline Sigma Performance

Deliverables

Define MeasureMeasure ImproveAnalyze Control

Measure

Page 35: Six Sigma Presentation Basics

• Complete Detailed Process Map For At Least

One Subprocess

• Identify Process Streamlining Opportunities

• Identify, Verify And Quantify Root Causes

• Establish Improvement Targets

• Quantify Opportunity

Analyze (The Data And Map) To Determine Root Causes/Opportunities

AnalyzeAnalyzeMeasure Improve ControlDefine

Deliverables

Analyse

Page 36: Six Sigma Presentation Basics

Generate, Select, Design And Implement Improvements • Solution Design Developed And Documented• Solution Validated And Cost/Benefit Proposal Presented

To Champion• Solutions Tested On A Small Scale Or Pilot Program• Implementation Plan Developed And Executed

AnalyzeMeasure ImproveImprove ControlDefine

Deliverables

Improve

Page 37: Six Sigma Presentation Basics

Institutionalize The Improvement And ImplementOngoing Monitoring • Developed, Documented And Implemented An Ongoing Process/Monitoring Plan• Standardized The Process• Procedures Documented• Response Plan Developed And Displayed

Deliverables

Define Measure ImproveAnalyze ControlControl

Control

Page 38: Six Sigma Presentation Basics

Six Sigma Organisation

Site LeaderSite Leader

Champion/SponsorChampion/Sponsor

Master Black BeltMaster Black Belt

Black BeltBlack Belt

Team MembersYellow Belt

Team MembersYellow Belt

Green BeltGreen Belt

Quality Leader/Six Sigma

Coordinator

Quality Leader/Six Sigma

Coordinator

Black BeltBlack Belt

Green BeltGreen Belt

Team MembersYellow Belt

Team MembersYellow BeltTeam Members

Yellow BeltTeam Members

Yellow BeltTeam Members

Yellow BeltTeam Members

Yellow Belt

External ConsultantExternal

Consultant

Page 39: Six Sigma Presentation Basics

Six Sigma Project Example

Yield Improvement in PSF Plant