1

Six Sigma

Page 1

What is 6 activity?

1. What are the statistics ?

2. Solution of the Practical Problem

3. What is the 6concept ?

4. 6 as the Business Strategy

5. 6 Application

6. 6 Activity Process

7. Comparing other tools

8. 6 Philosophy

Page 2

Low

Spec

High

Spec

VARIATION is the enemy!

"Always know the language of the enemy."

WORLD CLASS QUALITY

Providing a

BETTER product or service,

FASTER, and

at a LOWER COST

than our competition.

Originally: Metric Based on the Statistical Measure Called

Standard Deviation

Expanded To:

What is Six Sigma?

Page 3

1. What are the statistics ?

◆ Population & Sample

Sample

Population N ＝ 1,000

Measure 10 samples (Spec. : 100±4)

○ You may say “ This Population is Good because all the sample’s data are located between LSL & USL. BUT, If you estimate the defect rate using statistical analysis,

this population has the probability of 2.8% defects per unit.

Then this is - we call - “An epidemic” quality defect level.

○ Measuring defect rate on process through an expanding statistical concept, we can use measuring process capability.

Ⅹ

Ⅹ

Ⅹ

Ⅹ

Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ

Ⅹ

USL (Upper

Spec

Limit)

LSL (Lower

Spec

Limit)

What is 6 activity?

96 97 98 99 100 104 101 102 103

Total inspection is

impossible !

Statistical variables

(mean, variance)

estimate population

Page 4

μ

USL USL

T

μ

USL USL

T

USL USL

T

μ

Precise but not Accurate

Accurate but not Precise

Shifting to Target &

Reducing Variation

Shift to Target

Reducing Variation

2. Solution of the Practical Problem . What is 6 activity?

Object

of 6 is

Shift to

Target

Reducing

variation

Page 5

Center of Process:

Process Variance:

Process Standard Deviation: 2

Graphical Meaning of y and

n

)yy(n

1i

2

i2

n

yy

i

n

1i

2

Page 6

Typical Areas under the Normal Curve

68.27%

95.45%

99.73%

99.9937%

99.999943%

99.9999998%

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

Graphical View of Variation and Six Sigma Performance

Page 7

VARIATION: COMMON AND SPECIAL CAUSES

PIECES VARY FROM EACH OTHER:

BUT THEY FORM A PATTERN THAT, IF STABLE, IS CALLED A DISTRIBUTION:

DISTRIBUTIONS CAN DIFFER IN:

SIZE SIZE SIZE

SIZE SIZE SIZE SIZE

SIZE SIZE SIZE

LOCATION SPREAD SHAPE

. . . OR ANY COMBINATION OF THESE

Normal Distribution

Each unit of measure is a numerical value on a continuous scale.

Graphical View of Variation and Six Sigma Performance

Page 8

6 Quality means that area

of the estimated normal

distribution is located between

USL&LSL with 6 .

In that case area of

the outlier spec.

(In other words estimated

defects) is just 3.4 PPM.

: Standard Deviation Statistic index measures how much is data apart from target value

3.4ppm

Target USL LSL

+ 6 - 6

σ

+ 3 - 3

σ

6.68%

3. what is the 6 concept ? . What is 6 activity?

Statistical Definition of 6

3σ

6σ

Page 9

6 3.4

5 233

4 6,210

3 66,807

2 308,537

PPM • 1 misspelled word in all of the books contained in a small library • $340 indebtedness per $100 millions assets • 1.8 minutes per year

• 1.5 misspelled words per page in a book • $6.7 millions indebtedness per $100 millions assets • 24 days per year

. What is 6 activity?

6 as the Business Strategy

3. what is the 6 concept ?

Page 10

• In all Design, Manufacturing, and SVC processes

• Applying for 6 statistic Tools & Processes

• To find factors causing defects

• Acting the Analysis and Improvement

• Through the Defect Reduction, Increase Yield

& Total Customer Satisfaction

• Management Innovation Tool contributes to

Management Output

Achieving

3.4 PPM (3.4 Defects Per Million)

What is 6 activity?

PPM : Parts per Million

. What is 6 activity?

6 as the Activity

3. what is the 6 concept ?

Page 11

1. It is a statistical measurement.

2. It is a improvement tool.

• It tells us how good our products, services, and processes really are.

• 6 helps us to establish our course and gauge our pace in the race for total

customer satisfaction.

It‟s a full packaged tool applying to design, manufacturing, sales& SVC.

3. It is a business strategy. • It can greatly help us gain a competitive edge

• As you improve the σ rating of a process, the product quality improves and costs

go down. Naturally, the customer becomes more satisfied as a result.

4. It is a philosophy. • This is one of working smarter, not harder.

• Also it makes fewer and fewer mistakes in everything we do.

. What is 6 activity? 4. 6 as the Business Strategy

3

Page 12

• Ground Fruit

• Logic and Intuition

Wall of 3

• Low Hanging Fruit

• Seven Basic Tools

• Bulk of Fruit

• Process Characterization and

Optimization

Fruit-bearing 6

• Sweet Fruit

• Design for Manufacturability

Wall of 4

Wall of 5

Harvesting the Fruit of 6

Ⅰ. What is 6 activity? 4. 6 as the Business Strategy

Page 13

1. CTQ

2. DPU / DPMO

3. Z Value

4. Process Capability Index

5. Rolled Throughput Yield (RTY)

#. 6 Common term

Page 14

1. CTQ

Definition of CTQ

Customer states as critical to quality

of product, service or process.

Main purpose of CTQ control is selecting

the factors to the most important to customer.

It is not hard to do, but right to do!

☞

Ex.) • Spec. of anything part

• Accuracy and reliability of billing

statements

• Time to repair

• Courteousness

Most CTQ’s are customer-driven,

but risk, economics, and regulation

may drive others.

Typical Tools

• Customer surveys

• Focus Groups Interview

• Customer needs Mapping

• Quality function deployment(QFD)

• Quick Market Intelligence

• Logic Tree

• Pareto Diagram

●

●

#. 6Common term

Page 15

2. DPU / DPMO

Defects Per Unit : Number of defects per unit

→ Judging the process as “No good”, we could not know if it had a defect.

So 6 handling it.

Ex) A Claim report has 10 blanks, 2 blanks are wrong

DPU= Defect / Unit = 2 / 1 = 2

Defects Per Opportunity : Number of defects related opportunities per unit

→ Expanding concept of DPU by opportunities

Ex) A Claim report has 10 blanks, 2 blanks are wrong

2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2

Defect Per Million Opportunities : Value of DPO x 1,000,000,

→ Changing DPO to million unit because 6 uses PPM(Part Per Million) usually

Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000

DPU

DPO

DPMO

#. 6 Common term

Page 16

3. Z Value

Definition of Z Value

It is standard normalized value for various

normal distributions to make easy

statistical analysis.

* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)

** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution

◆

◆

*

**

T=μ

1

USL LSL

X -T

σ Z =

Concept of Z Value

☞ In a Process, if six standard deviations are

between spec.(USL, LSL), then we call

“6 level” .

It is good process that has 3.4ppm, that is

3 or 4 defects per million.

Z is ratio value that difference between

X(USL or LSL) and target is divided

stadard deviation ().

That is numeric part of Level.

When Z is 6, it is 6 level.

***

*** USL : Upper Spec Limit / LSL : Lower Spec Limit

◆

#. 6 Common term

Page 17

4. Process Capability Index

◆ What is Process Capability?

- When the process is stable, it should

be measured by degree of satisfying

limits.

- Computing Cp, Cpk to know

How much mean is shifted and

variation is good.

- Cpk considers shifting mean.

- K value is deference target(T) from

mean.

1σ

process variation

design tolerance

+3σ -3σ +6σ -6σ

Cp = Design tolerance

Process variation

Cpk = Cp(1-K)

| T-m |

(Upper limit-Lower limit)/2 K =

As Unique capability of the process, reflects uniformity degree of producing product.

Process Capability Index

m T

#. 6Common term

4

Page 18

5. Rolled Throughput Yield

◆ Rolled throughput yield is probability ratio to accept for all processes.

Final

Good

Process

Defect Ratio

Loss by un-control

Input

Process 1 :

99% Accept ratio

Process2 : 92%

Process3 :

93%

Final

Inspection

: 97%

RTY

Control

Process

defect

ratio

Control

*

* RTY : Rolled Throughput Yield

RTY = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%

Object Productivity elevation through

quality improvement

Apply Defect of all processes, Equipment

Model Change Loss

Tool 6σ

Method 1person 1Project, Team activity

Added Improvement

for hidden factory

#. 6Common term

Page 19

Pareto Diagram of Effects (for the factors affecting Process)

Size of

coefficient

(A)

(B)

(C)

Knowledge-gaining Tools

(D) (E)

Page 20

Process Flow Diagram

Process Step

Output

Decision?

Input

No

Yes

Knowledge-gaining Tools

Page 21

Quality Function Deployment (QFD)

Design

Correlation

Customer Requirements

Design Requirements

Knowledge-gaining Tools

Page 22

Knowledge-gaining Tools

Probability Distributions

Exponential

Parabolic

Normal

Uniform

Page 23

Cause & Effect Diagram

Causes or

Sources of

Variation

Manpower

Methods

Effect or Response

Machines

Measurement

Miscellaneous

Materials

Knowledge-gaining Tools

5

Page 24

Component Failure

Mode

Failure

Effect S Cause O D R “Fool Proof” Plan

Failure Mode and Effect Analysis

S: Severity, O: Occurrence,

D: Detection, R: Risk Priority Number

R = S • O • D

Knowledge-gaining Tools

Page 25

Knowledge-gaining Tools

Scatter Diagram (from Doralese Blending & Compression Process)

Magnesium Stearate Concentration

Tablet

Hardness

Page 26

Regression Modeling

5 10 15 20

5

10

15

20

x

y = 18 - .65x

y

Knowledge-gaining Tools

Page 27

Control Chart

UCL

CENTERLINE

LCL

Time

y

Knowledge-gaining Tools

Page 28

6. Other terms #. 6Common term

1. QFD - Quality function deployment

2. FMEA - Failure Mode & effect analysis.

3. ANOVA - Analysis of Variance

4. Gage R&R - Gage Repeatability & reproducibility.

5. DOE - Design of experiments.

6. RSM - Response surface methodology

7. DMAIC - Define measure analyse improve control

8. DFR - Design for reliability.

Page 29

1. Quality & Failure Cost

2. Paradigm Shift

3. Character of 6

4. 6 Case Study

Ⅱ. Why should we do 6?

6

Page 30

1. Quality & Failure Rate

* Average of the SVC Defect rate of Home Appliance products

Trend of Quality Index *

SVC

Defect

Rate

(%)

● ● ● ○

☆

Quality

Innovation

Tool

●

Ⅱ. Why should we do 6?

‘96 ‘97 ‘98 2002 ‘93

Page 31

“Generally controlled F-Cost has small portion considering of Hidden Loss”

Traditional F-Cost

( Easy Definition)

Inspection

Scrap

Rework Reject

SVC

Loss Opp. Sales

Delivery Delay

Brand Image Down

Office Loss Over Storage

Over Rework

Long cycle time

Design Change Potential(Additional)

F-Cost (Difficult to measure)

Ⅱ. Why should we do 6? 1. Quality & Failure Rate

Page 32

2. Paradigm Shift

Old Belief New Belief

$ $

Quality Improves

Internal&

External Failure

Costs

Appraisal

& Prevention

Costs

4

Increased Quality

means Higher Cost

4 5

6

$

$

Quality Improves

Internal &

External Failure

Costs

Appraisal

& Prevention

Costs

Increased Quality

reduces Total Cost

Internal Failure : Scrap / Remake / Supplier Rework

External Failure : Cost to Customer / Warranty Cost / Compliant Adjustments / Returned Material

Appraisal : Inspection / Test / Quality Audits / Test Equipment

Prevention : Quality Planning / Process Planning / Process Control / Training

Ⅱ. Why should we do 6?

Paradigm Shift for Quality

The high quality producer is the low cost producer not expensive.

Page 33

Comparing 6 with 3

The 3 Company The 6 Company

• Spends 15~25%of sales dollars on cost of failure • Produces 66,807 ppm opportunities • Relies on inspection to find defects • Believes high quality is expensive • Does not have a disciplined approach to gather and analyze data • Benchmarks themselves against their competition • Believes 99% is good enough • Define CTQ’s internally

• Spends 5%of sales dollars on cost of failure • Produces 3.4 ppm opportunities • Relies on capable processes that don’t produce defects • Knows that the high quality producer is the low cost producer • Use Measure, Analyze, Improve, Control and Measure, Analyze, Design • Benchmarks themselves against the best in the world • Believes 99% is unacceptable • Define CTQ’s externally

Ⅱ. Why should we do 6? 2. Paradigm Shift

Page 34

Practical Meaning of “99% Good”

• 20,000 lost articles in mail per hour.

• Unsafe drinking water almost 15 minutes each day

• 5,000 incorrect surgical operations per week

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

• 200,000 wrong drug prescription each year

• No electricity for almost 7 hours each month

4 = 99.38%

Ⅱ. Why should we do 6? 2. Paradigm Shift

Page 35

Traditional Approach 6σ Approach

• %(Defect Rate)

• Discrete Data

• Satisfaction for Mfg

Process

• Spec Outlier

• Experience + Job

• Bottom Up

• Mfg Process

•

• Discrete + Continuous Data

• Customer Satisfaction

• Variation Improvement

• Experience + Job +

Statistical Ability

• Top Down

• Design, Mfg, Sales, SVC

ISSUE

Index

D a t a

Target

Range

Method

Action

Application

Traditional Quality / 6 Quality Method

Ⅱ. Why should we do 6? 3. Character of 6

7

Page 36

• Pursue common goal

• Control main factors at upstream

• Apply Statistics on all Biz.

• Support Statistics S/W

• Data analysis by experiment

• Make decision base on Data

→ Innovation through all Biz.

→ Reduce claim and rework

→ Easy to access difficult problem

→ Foolproof for statistics

→ Make indistinct facts clear

→ Exclude wrong ideas & prejudice

Good Point of 6

Ⅱ. Why should we do 6? 3. Character of 6

Page 37

Benefits and superiority of 6

Benefits :

Superiority ■ Variety of applications : Can apply all industry include financing Biz.

■ 3P Focus & reasonable index for appraisal Not only product and service, but also process and quality of human resource can be clear the goal and status by measuring.

■ High Effect of Investment No invest on hardware, only on human resources.

■ Clearness of effect for cost Output can be estimated clearly by financial part take part in which control cost and benefit form the beginning of project.

■ Data driven mind & easy to use statistics Tool. Through experimental data analysis indistinct fact can be clear. Exclude experience and prejudice. Can handle statistics by the S/W package(Minitab).

Ⅱ. Why should we do 6? 3. Character of 6

- Decrease cost of loss, Improve quality of product and service ,

satisfy the customer

- It can make clear the output of Business.

* 3P : Product, Process, People

*

Page 38

5. 6 Application

• Selecting CTQ to meet customer needs

• Decision reasonable Tolerance

• Guarantee of the CTQ’s capability analysis

• Improvement serious problem using S/W

• Real Time Monitoring system

→ CTQ Control system

• Improvement cycle time and accuracy

• Cost Improvement

Guarantee for the Design completion

in developing stage

Quality assurance in manufacturing

stage

Maximizing for sales & SVC

6 is a tool that applies to all business systems - Design, Manufacturing,

Sales and SVC

Ⅰ. What is 6 activity?

R&D

6

Manufacturing

6

De- sign

Sales

&SVC

Mfg.

6

Transaction

6

Design

Mfg.

Sales& SVC

Page 39

Cp: Process Capability Potential (assumes a centered process)

Cpk: Process Capability (takes into consideration a shift in average)

3

LSLyor

3

yUSLminCpk

6

LSLUSLCp

dpm

45,500 133,600

16,400 6,900 2,700

55 < 1PPM

.0018

<< 1PPB

.67

.5

.8

1.0 .9

1.33

1.67 2.0 3.0

4.5

15.0 7.0

Cp

LSL LCL UCL USL TARGET

Specification Width

Process Width

Measures of Quality

Page 40

CP = 2.0

CPK = 1.5

dpm = 3.4

Formal Definition of a Six Sigma Capable Process

Page 41

Is It at all cost? 6

2 3 4 5 6 7

Optimal Point

DFSS

Design for six

sigma

Typical

Six Sigma Barrier

Total Cost

Sigma Rating

8

Page 42

There is a correlation between a company's COPQ( cost of

poor quality) and the rating of its key processes

2 3 4 6

5

10

15

20

30

40

25

35

COPQ (% of Sales)

Sigma Rating

5

Why Six Sigma?

Page 43

Where Does the Cost of Poor Quality

(Waste or Muda) Come From? ...

Internal Failure Costs

External Failure Costs

Appraisal Costs

Prevention Costs

Lost Opportunity Costs

£

The Cost of Poor Quality

Page 44

DEFECT REDUCTION

Note: The ± 1.5 sigma shift is included.

A 4 company will spend >10% of revenue on internal and external repair

A 6 company will spend <1% of revenue on internal and external repair

>> 100x

Average Company

“Best in Class”

10

100

10K

1K

100K

Defects / M

66810

6210

233

3.4

3 2

1

4 5 6 7

Sigma

Why Six Sigma?

Page 45

Identify Customer-Driven

CTQ (Critical to Quality)

Characteristics

Identify Key Processes that

cause Defects in a CTQ

Characteristics

For Each Product or

Process CTQ

Measure, Analyze, Improve,

& Control

6is a rigorous analytical

process for solving problem!!!

6. 6 Activity Process Ⅰ. What is 6 activity?

1. Who are your customers?

- Internal / External

2. What do you provide your customers?

3. What is critical to quality for your customers?

1. What are your internal processes for

providing your product or service CTQ‟s to

your customers?

2. Where do defects occur in these processes?

D

• Practical Problem

• Measurement System

• Yield Calculation

•Process Mapping

Calculation

• Benchmarking

• Pareto Chart & Stratification

• Cause & Effect Diagram

• DOE

• Brainstorming

• Action Workout Techniques

• Piloting

• Control Mechanism

• Control Chart

• Procedures

M

A

I

C

6 Activity Process(manufacturing & Transaction)

*

**

* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical.

** D : Define

Page 46

Example of development process apply R&D 6

R&D

6

Kick

-Off

Evaluation

meeting for

present condition

Evaluation

meeting for

basic

concept

Evaluation

meeting for

planning

confirm

E/S

drawing

confirm

Custo-

mer

Needs

Survey

QFD

S-1

Spare

CTQ

Selec-

tion

Similar

process

Data

gathering

Z Value

of CTQ값

Analysis

Meeting

for CTQ

Check

Z Value

optimize,

Design

improve

QFD

S-2

Design

FMEA

Process

FMEA

Development

Process

E/S

making

Development

drawing

confirm

Income

Parts

E/S

Quality

meeting

P/L

Making

P/L

Quality

Meeting Income

parts

P.P

Making

P.P

Quality

meeting

CTQ

Data

for new

parts

gather-

ing

Activity

for

process

improve-

ment

CTQ

for new

parts

Confirm

CTQ

deci-

sion

Z Value of

CTQ

confirm

6. 6 Activity Process Ⅰ. What is 6 activity?

Page 47

7. Comparing other tools

- Define/

Measurement

- Variance of

CTQ

- Present con-

dition Analysis

- Improved

by expert’s

Idea

- Control by

control chart

- Process

4M control

Measure

- Symptoms

- Frequency

- Analysis for

statistics

- Effect analysis

caused factors

- Optimizing

condition by

statistical

analysis

Others Others

6 6

- Discrete Data - Difficult to apply practical

problem because of

complextity

- Discrete+Continuous

data - Easy to apply because of supporting statistical software.

Analysis Inprovement Control

- Control by

PTS

(CTQ,

Benefits)

• Focusing

experience/

technology

* PTS : Project Tracking System

*

By Improvement Process

Ⅰ. What is 6 activity?

9

Page 48

7. Compare with other tool

• Detecting process

defects

• Product managing

compare with spec.

• Judging each

person‟s Know-How

• Manual Data

gathering & analysis

• Control process

variation

• Judging the statistic

Data

• Simple & Effective

analysis using the

S/W

• Prevention Control

vital few factors

• Managing Tool • Improvement Tool

→ Selecting Line

→ Do process FMEA - Selecting Cost issue

process view of customer

→ Conform CTQ process

→ Sorting the process - Just need control process

- Important control process

- Law application process

- Variation improvement

→ 100ppm / 6 application

according to sorting

process

100ppm / 6

Ⅰ. What is 6 activity?

100ppm 6 100ppm / 6 Application

Page 49

CTQ(Y) = F( X1, X2, X3, ... Xn )

Y X

Focusing Point

● 6 activity is selecting the cost issue

problem on some system in view of

customer.

This is we called “CTQ” and

We achieved 6 target through

the 6 process just selecting CTQ

● Also, 6 activity is focusing

the causing factor(x1,x2...xn),

not selecting CTQ itself

◆ Dependent

◆ Output

◆ Effect

◆ Symptom

◆ Monitor

◆ Independent

◆ Input-process

◆ Cause

◆ Problem

◆ Control

X factor effects on CTQ(Y) has

the vital few 20% & trivial many

80%.

Ⅰ. What is 6 activity? 8. 6 Philosophy

Page 50

◆ We don‟t know what we don‟t know.

◆ If we can‟t express what we know in the form

of numbers, we really don‟t know much about it.

◆ If we don‟t know much about it,

we can‟t control it.

◆ If we can‟t control it,

we are at the mercy of chance.

8. 6 Philosophy Ⅰ. What is 6 activity?

Page 51

◆ Our survival is dependent upon growing the business.

◆ Our business growth is largely determined by customer satisfaction.

◆ Customer satisfaction is governed by quality, price, and delivery.

◆ Quality, price, and delivery are controlled by process capability.

◆ Our Process capability is greatly limited by variation.

◆ Process variation leads to an increase in defects, cost, and cycle time.

◆ To eliminate variation, we must apply the right knowledge.

◆ In order to apply the right knowledge, we must first measure it.

◆ Measure the problem, we„ll get the right knowledge.

Ⅰ. What is 6 activity? 8. 6 Philosophy

Page 52

● At the beginning of 80’s, In the Japanese

market, Motorola’s beeper lost its name

value because of the quality difference

compared to Japan’s

● In 1981 they tried to meet a challenge to

improve quality 5 times in 5 years and they

couldn’t.

● They developed a consistent process base

on statistical knowledge.

● In 1987, they established 6σ goal

as a key initiative.

● In 1995 GE launched 6σ process

to overcome a difficult business

environment and to challenge

World Class Quality.

● They made new processes such as

Productivity,Inventory Return and NPI,

but improvement was delayed

because of defects in processes.

● GE thinks World Class Quality is

big challenge. GE will focus on

6σ process for next generation .

4. 6 Case Study Ⅱ. Why should we do 6?

Start : Motorola Prosperity :GE

Start & Prosperity

Page 53

MOTOROLA T I G E SONY

Introduce

Outcome

Character

-ristics

Remarks

1987 1988 1995 1997

Q. Cost Down Q. Cost Down Q. Cost Down By 2000 years

$3.2billion 1988:30% $3.8billion Train 2,000

→1993:7.4% Black Belts

Origin of 6σ Adopt to all Biz. First in Japan (Quality level

elevated 100 times

in 4 years)

Culture harmony TOP DOWN Train and do pjt. Consult with

Western & Oriental Quality Train 6 σ Academy

Ⅱ. Why should we do 6?

Cases of other companies

4. 6 Case Study

10

Page 54

Output of other companies

● 6 do the role of Boundaryless Behavior.

● Organization become learning & logical

● Use 6 as worldwide common language.

● GE believes that 6 would take part

central role in the future.

G E G E

Motorola Motorola Motorola reached 5.5σ level in 1992.

Outcome is $3.2billion from1987 to 1992.

Ⅱ. Why should we do 6?

0

200

400

600

800

1000

1200

96 97 98

Costs

Benefits

4. 6 Case Study

Qualitative output Benefits

Page 55

1. Key Factor for Success of 6

2. 6 Operating system

3. Project tracking system

4. Case study for Infra.

Ⅲ. How to Launch 6?

Page 56

1. Key Factor for Success of 6

■ Need Top Down Drive ● Need Top management’s strong will for 6σ.

● Top management’s strong and periodical

announcement about 6σ policy.

■ All employees must participate...

● Not only manufacturing part, but also

nonmanufacturing part should join the program

● Focus on Customer’s requirements.

■ 6 as Pan-Company’s common standard.

● Common language .(CTQ, σ, Cp,Z ....)

● Avoid personal translation about 6σ.

● All of Goal and target are represented as σscale.

● Basic process for all of projects.

Ⅲ. How to Launch 6?

■ Start at Customer’s voice. ● CTQs from Customer’s voice,

Improve the item which has big impact first!

■ Need Training Program for All employees

● Complete understanding for 6σ program.

● Hard training for all employees.

● Need resource investment resolutely.

■ Construct Infra

● Need successful case study project.

● Resource reformation for organization and system.

● Reasonable appraisal and reward system.

System requirement Methodology

Page 57

* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme → Output review)

Champion

- 6 Operating

Project Team

- Operating Project

- Achieving 6 level for CTQ

MBB(Master Black Belt)

- Supporting 6σskill

Coaching/Supporting

Request supporting

Chief of executive division

- 6 Driving

- 6 Involvement & Commitment

Champion

Review

Ⅲ. How to Launch 6? 2. 6 Operating system

Page 58

Ⅲ. How to Launch 6? 2. 6 Operating system

Champion

Definition

• Chief of 6 operating

• Chief of business groups

(Chief of OBU, Business

Executives, Chief of

subsidiary)

Roles

• Set the 6 goal

• Assignment subject for total optimization

• Guide direction and goal of Project

It is very important that the Champion gets involved in project and take ownership for 6

- Present the Vision

• Monitor and support through Champion Review

• Directly support to settle bottleneck for 6σactivity

- Involvement

• Continuously lead Activity through strong commitment

• Evaluate Output and Share best practice with MBB

- Drive 6 Activity

• Lead supporting all department in improvement

and control step for 6 Project team

• Deciding Investment and allocate resources

• Generate motives

- Support Project

☞

Page 59

Ⅲ. How to Launch 6? 2. 6 Operating system

MBB(Master Black Belt)

• 6 Technical Leader

• Full Time Job for 6

• Complete MBB Course or

acquire MBB Cert.

It is very important to select excellent MBB and continuously improving skill

Definition Role

- Support Skill

• Coach BB/GB for 6σskill and tools

• Level Up for 6 skill & tools

• Share best practice

- Drive project results

• Check the Project by 6σ progress step

• Report champion about project status and output

• Assure benefits are real

- Support Projects

• Mentor BB / GB and Train individuals in tools

• Support settlement for 6Activity Barrier

• continuous management and control for improved process

☞

11

Page 60

2. 6 Operating system

Main Job Role Requirements

• Leading BB/GB

• Project Drive

• Verity Output

• Training

• 6σ Technical Leader

• Needs Stat. Skill

Propagate

• More than 4 Projects

&

• Consulting More than

5 Projects a year

• Full Time Project

On TDR Theme

• Execute Project

• Leader of Pjt. team

• Team member

training

• 2 Projects

&

• 1 Project a year

• Join Project by

Part time

• Execute Project

• Team Leader or

Member

• 2 Projects

Master

BlackBelt

BlackBelt

GreenBelt

Belt

Ⅲ. How to Launch 6?

Belt Certification

Page 61

3. Project Tracking System

PTS Flow Benefit

- Update and control CTQ of Closed Project

- Easily manage and report for Project status

- Evaluate reduction cost of 6Project

- Share Project information

- Monitor 6 Project status

• Project Theme/Z value/Reduction cost

Amount

• By Division/OBU/Product/Model

All

Projects Belt

PTS Champion,

Owners

Project

Reviews

- Defect Data,Goal

- Project status

- Results

- Weekly update

• Weekly Review

• Confirm cost benefits

Benefits

• Check & monitor

*

* PTS : Project Tracking System

Ⅲ. How to Launch 6?

Page 62

4. Case Study For Infra.

6Training

Material

Training For

All Employees

Planning

6Strategy

- Briefing 6

Process

- Planning 6

Strategy/Goal

Construct

IT System

- Impove Chronic

Defects

: Minitab S/W

- Optimize

Process IT

: Real Time

Monitoring

: Data Base

For CTQs

- PTS

: Project Tracking

System

- Intoduce 6

: All Employee

- 6 GB

Training Prg.

: Engineer,

Staff

- 6 WB

Training Prg.

: Supervisor

Organizing

6Team

- Due part

MFG : QA Team

Leader

R&D : Chief of

Lab.

- Organize 6

Surport Part

:2~3 person/OBU

→ Organize

6 Team

- Training for Employees

- Training for Boards

→ Project Review

- MBB & BB : 80/Year

- Training

: 2,400 person

Case Study

- 6 Team

- Case Study

: 1 / OBU

* Case :LGE Home Appliance Division.

Ⅲ. How to Launch 6?

Page 63

Start

Date

Business

Areas of

Emphasis

Metrics Supplier

Involvement

Training

Emphasis

Reward

System

Amount of

Cultural

Change

Return on

Investment

Motorola 1987 Production Defects Intimidation Six Sigma

Basics and

Statistics

Black Belt

Recognition

Low £1.4 Billion

in 7 Years

DSEG

(Raytheon/TI) 1990 Production Defects and

Cycle Time Training Suppliers

in the Tools

Low Not

Published

AlliedSignal 1992 Production

and Design

Training

Suppliers

Black

Belts

Six Sigma

Basics,

Statistics,

KISS for

Suppliers

General

Electric

1995 Production,

Design,

R&D, and

Transactional,

i.e., the whole

organisation

Training

Suppliers

Black Belts

Black Belt,

Green Belt,

and

Management

Promotions,

Bonuses,

and

Stock

Options

High

Black Belt

Recognition

Black Belt

Recognition

Monetary

Rewards

Six Sigma

Basics,

Statistics,

and Soft

Skills

Defects,

Cycle Time,

COPQ,

Cost

Reduction

Six Sigma

Basics,

Statistics,

Soft Skills,

Finance

Skills, (KISS

and KBM)

Defects,

Cycle Time,

COPQ,

Cost Reduction,

Stable

Operations,

Annual

Operating ROI

(Intellectual

Capital)

Medium £1.4

Billion in

4 Years

Evolution of Six Sigma

£3 +

Billion in

4 Years

(Taken

from

1999

Annual

Report)

Page 64

Design For Six Sigma

LSL USL

Manufacturing Goal:

Reduce Sigma Design Goal:

Relax Specs