Quality

Six Sigma

DEG/FHC 1
 Definitions

 Management philosophy focused on business process

improvements to:
• Eliminate waste, rework, and mistakes
• Increase customer satisfaction
• Increase profitability and competitiveness

 Statistical measure to objectively evaluate processes.

 Six Sigma is a set of tools— The Six Sigma expert uses qualitative
and quantitative techniques to drive process improvement. A few
such tools include statistical process control (SPC), failure mode
and effects analysis and flowcharting.

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Definitions
 Six sigma is an organized and systematic problem-solving
method for strategic system improvement and new product and
service development that relies on statistical methods and the
scientific method to make dramatic reductions in customer
defined defect rates and/or improvements in key output
variables. (Linderman et al (2003)-Journal of Operations Mgt)

 “Six Sigma: A comprehensive and flexible system for achieving,

sustaining and maximizing business success. Six Sigma is
uniquely driven by a close understanding of customer needs,
disciplined use of facts, data, and statistical analysis and diligent
attention to managing, improving, and reinventing business
processes.” (Pande, P.S., Neuman, R.P., & Cavanagh, R.R. (2000). The Six Sigma Way: How GE,
Motorola and other Top Companies are Honing Their Performance. New York, New York: McGraw Hill.)

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Brief history
 1979-Motorola quality imperative roots of six sigma
 1981-Motorola quest to improve 10 fold in 5 years
 1988-Motorola wins MBQA
 1992-Motorola, Texas Instruments,IBM, and others
start to deveop the 6sigma Black Belt program
 1995-GE starts its 6 sigma program
 1997/8-GE invests large sums with huge payoffs

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Brief history

 Before Six-Sigma methodology, 3-sigma tolerance levels (for any process)

used to be the benchmark for quality measurements.

 One of Motorola's most significant contributions was to change the discussion of

quality from one where quality levels were measured in percentages (parts per
hundred) to a discussion of parts per million.

 Motorolas’s Process Capability measured in sigmas

 Aim: improve every process – whether for products or services – to have a 6-

sigma capability, that is, the number of defects (nonconformances) produced in
the process is less than 3.4 ppm (DPMO-defects per million opportunities).

 The Six-Sigma Process started at the production function was later extended
throughout the company. Many other companies followed: GE, Honeywell,HP,
Boing,...

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Statistical concept

 The starting point for the six-sigma capability is the normal

probability distribution and the areas lying under different
regions of the normal curve.

 The following table shows the proportions of a normal

population under different regions of the normal distribution
curve.

 The expected non-conformances are 0.002 parts per million

(two parts per billion) for a process which specification are
located at between +6 and -6 sigmas from the center. The
process is said to have a six-sigma capability.

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 Proportions of a normal population

Range % of products in % of non conforming Non conformance out of

around µ conformance products a million

-1σ to + 1σ 68.26 31.74 317400

-2σ to + 2σ 95.46 4.54 45400

-3σ to + 3σ 99.73 .27 2700

-4σ to +4σ 99.9937 .0063 63

-5σ to + 5σ 99.999943 .000057 .57

-6σ to + 6σ 99.9999998 .00000002 .002

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 Static Process (no movement of mean)

LSL m (Mean) USL

6s 6s

s
0.01ppm 0.01ppm

12s
Distance between USL and LSL is 12  .(12 times of )
Probability of out-of-spec is 0.02ppm
(Motorola) Six-Sigma Table (long-term)
(values may be slightly different from table to table)

yield %: DPMO: Sigma :

30.2 697,000 1.0

69.2 308,000 2.0

93.3 66,800 3.0

99.4 6,210 4.0

99.98 230 5.0

99.9997 3.4 6.0

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Statistical concept

 Which one - 0.002 (normal curve) or 3.4 ppm?

 The difference occurs because that the process’ mean can drift
1.5 sigma in either direction in the long run. The area of a
normal distribution beyond 4.5 sigma from the mean is indeed
3.4 parts per million.

 Thus, to accommodate 1.5 sigma shift, they (Motorola) aimed at

6 sigma capability.

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Process not centered:1.5 sigma shift (or ‘drift’)

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Statistical concept

 In six sigma methodology ~99.9997% (or more) of

process data lies within +/- six sigma from the mean,
thus having only 3.4 defects per million opportunities
(DPMO).

 Now, ~99.9997% value is actually for 4.5 sigma level

in Normal curve, but keeping in view the 1.5 sigma
process shift, the process’ sigma level is actually six.

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Statistical concept

 Six Sigma short-term capability occurs when the process is

centered on the target and there is no distribution shift
(variability due to common causes). It also assumes continuous
uniform process with no changes.

 Six Sigma long-term capability assumes that the process mean

changes due to variability (random and special causes) . This
change could result in an average of 1.5 sigma distribution shift
in either direction for long-term performance.

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DPMO calculation
 DPO-defects per opportunity
 D/ (U*O)
 D: number of defects observed in a sample

 U: number of units in a sample

 O: number of defect opportunities per unit

 DPMO= DPO*106

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example
 Consider that in 100 invoices there are 10
with defects. Also, there are 5 opportunities
for errors (defects) for every invoice.
 Then:
 DPO= 10/ (100*5) = 0.02
 DPMO= 0.02*106 = 20,000  sigma=3.55

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The Six-Sigma System

 Six themes
 Three strategies
 Improvement processes
 Road Map
 The organization for six-sigma

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Six themes for Six-Sigma

 Focus on the Customer

 Data and fact-driven management

 Process focus

 Proactive Management

 Boundaryless collaboration

 Drive for perfection

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Three strategies

 Process Improvement (DMAIC)

 Process design/redesign (DMADV)

 Process management

Not mutually exclusive

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Improvement-DMAIC
 DMAIC methodology is aimed at improving a Process or
product (through reduction in Variation) in an incremental
fashion:
Define -> Measure -> Analyse -> Improve -> Control -> Define...

 Define
 Identify the problem(s)
 Identify requirements (VOC: Critical to Quality-CTQ-
characteristics)
 Define the Goals:
 Involving customers (VOC, QFD), employees

 Strategic (e.g., increase market share,...); Operation

(increase output); Project (e.g., reduce the defects
level)
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DMAIC
 Measure
 Validate problem/process
 Refine problem/goal
 Measure key steps/inputs
 Measure the existing system: start from the current

baseline; use reliable metrics; use proper Tools;

understand the data.
 Analyse
 Develop causal hypothesis
 Identify root causes (the ‘vital few’)
 Validate hypothesis
 RCA

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DMAIC
 Improve
 Develop ideas to remove root causes
 Test solutions
 Standardize solutions
 Measure the results
 Iterate whenever necessary

 Control
 Establish standard measures to maintain performance
 Create and use documentation

 Correct problems as needed

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DMAIC-Exemples of tools/methologies used
(Thomas Pyzdek)

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DMAIC exemple

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DFSS-Designing For Six-Sigma

 The DMADV model is the Design for Six Sigma (DFSS) model
used to create major new features of existing products, services,
or processes, or to create entirely new products, services, or
processes. It has 5 phases:

Define -> Measure -> Analyse -> DESIGN-> Validate -> Define

Some authors refer to the Process as DMEDI

(D_M_Explore_D_Implement)

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The Roadmap

 Five steps to implementing Six-Sigma

1-Identify core processes and key customers

2-Define customer requirements
3-Measure current performance
4-Prioritize, analyze, implement improvements
5-Expand and integrate the Six-Sigma system

DEG/FHC 25
Organizing Six-Sigma

 Key Roles
 Leadership Team
 Champions
 Mentors (master ‘Black Belts’)
 Experts (‘Black Belts’)
 Participants (Green Belts)

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Organizing Six-Sigma

 The Leadership Group

 Be actively involved from outset
 Develop a strategic plan
 Establish Roles and Infrastructure
 Establish supporting policies
 Job descriptions

 Reward/Compensation systems
 Career paths

 Select projects
 Prioritize projects and allocate resources
 Facilitate, guide, manage

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Organizing Six Sigma

 The Champions
 Find appropriate projects
 Represent projects to the leadership
 Provide coaching
 Ensure allocation of resources
 Resolve issues

 Master Back Belts

 Coach and support project leaders
 Work as a change agent
 Train others in the use of Six-Sigma tools

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Organizing Six Sigma

 Black Belts
 Highly trained experts
 Manage project leaders
 Lead project teams

 Green Belts
 Trained in the use of statistical tools
 Lead project teams
 Participate on project teams

DEG/FHC 29
Fad... Or not!

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References
 Quality Mgt-Goetsch/Davies (Ch. 1)
 The Certified Manager of Quality Handbook-Westcott (Ch. 13).
 First Course in Quality Engineering-Krishnamoorthi (Ch. 5)
 DMAICtools

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