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FUNDAMENTALS OF
SIX SIGMA
DPMO
3.4 233 6,210 66, 807 308, 537 500, 000
COPQ
< 10% 10 15 % 15 20 % 20 30 % 30 40 % > 40 %
SIGMA
6 5 4 3 2 1
Source: Journal for Quality and Participation, Strategy and Planning Analysis
Each of these metrics serves a different purpose and may be used at different levels in the organization to express the performance of a process in meeting the organizations (or customers) requirements. We will discuss each in detail as we do through the course. 1. Defects 2. Defects Per Unit (DPU) 3. Parts Per Million (PPM) 4. Defects Per Million Opportunities (DPMO) 5. Yield 6. First Time Yield 7. Rolled Throughput Yield (RTY) 8. Sigma(s)
In any process improvement endeavor, the ultimate objective is to make the process: 1. Better: DPU, DPMO, RTY (there are others, but they derive from these basic three) 2. Faster: Cycle Time 3. Cheaper: COPQ
If you make the process better by eliminating defects you will make it faster. If you choose to make the process faster, you will have to eliminate defects to be as fast as you can be. If you make the process better or faster, you will necessarily make it cheaper.
The metrics for all six sigma projects fall into one of these three categories
Six Sigma methods quantify individual defects and not just defectives 1. Defects account for all errors on a unit
i. ii.
A unit may have multiple defects An incorrect invoice may have the wrong amount due and wrong due date Doesnt matter how many defects they are The invoice is wrong, causes are unknown. is the measure of volume of output from your area. is observable and countable. It has a discrete start and stop point. It is an individual measurement and not an average of measurements.
3.A Unit:
(Defects / Opportunity)
(# of Defects) / (# of Units X # of Defect Opportunities / Unit)
DPO
Say: 10 Defects, 100 Pairs, 2 Opportunities / Carton DPO = 10/(100 X 2) = 0.05 or 5% for each type
SIGMA
Sigma Level
SIGMA VALUE
DPU is 0.008 DPMO=0.008 Y= RTY= e-DPU=0.992 Probablity of defect is P(d)=1-Y = 10.992=0.008 then use Z value table is 2.41 and add 1.5 shift, then the sigma level is 2.41+1.5=3.9 sigma level
DPU = 58/500 = 0.116 DPO = 58/(500 X 2) = 0.058 DPMO= DPO X 106 = 58,000 Yield = 1 DPO = 1 0.058 = 0.942 SIGMA VALUE = Normsinv(%Yield)+1.5 = 3.07
DPU = 300/100 = 3.0 DPO = 300/(100 X 50) = 0.0600 DPMO= DPO X 106 = 60,000 Yield = 1 DPO = 1 0.0600 = 0.9400 SIGMA VALUE = Normsinv(%Yield)+1.5 = 3.05
SIGMA TABLE
SIGMA LEVEL SHORT TERM LONG TERM (PROCESS NOT SHIFTED) (PROCESS SHIFTED 1.5 SIGMA)
Yield (OK) % Reject PPM Yield (OK) % Reject PPM
1 2 3 4 5 6
Calculation from above example: The unit of measure must be the same for the numerator and denominator throughout the calculation. Process 1 Yield: 46 passed / 50 entered = 92.0% Process 2 Yield (itself): 46 passed / 46 passed = 100% Yield AFTER Process 2: 46 passed / 50 entered: 92.0% Process 3 Yield (itself): 37 passed / 46 entered = 80.4% Yield AFTER Process 3 (also the same as the final yield of entire process): 37 passed / 50 entered = Final Yield = 74%
Process 3 has the lowest yield and probably the most cost associated since all the material, labor, and overhead costs are already in the pieces from the previous processes.
Calculation (assuming all rework only takes one time to correct): Process 1 TPY: 40 of the 50 pieces that entered Process 1 went through Process 1 correctly the first time. Therefore Process 1 TPY = 40 / 50 = 80.0% Process 2 TPY: 34 of the 46 pieces that entered into Process 2 went through Process 2 correctly the first time through. Therefore Process 2 TPY = 34 / 46 = 73.9% Process 3 TPY: 37 of the 46 pieces that entered Process 3 went through Process 3 correctly the first time. Therefore Process 3 TPY = 37/46 = 80.4% There is another method to calculate TPY for a single process. If the DPU or defects and units are known then:
Rolled Throughput Yield is the probability of the entire process producing zero defects. RTY is more important as a metric to use where the process has excessive rework.
Calculation from above example: RTY = Process 1 TPY * Process 2 TPY * Process 3 TPY RTY = 0.800 * 0.739 * 0.804 RTY = 0.475 = 47.5% There is a 47.5% of the entire process producing zero defects. Another method to estimate RTY if the defects per unit or defects and units are known:
DMAIC: Define
Define the project goals, business justification, & and project outcome 1. 2. 3. 4. 5. 6. 7. Customers and Critical to Quality (CTQs) Problem Statement, Goals and Benefits Identify Champion, Process Owner, and Team Resources Evaluate Key Organizational Support Develop Project Plan and Milestones Develop Process Map
ACTIVITIES
D1: IPO Diagram D2: SIPOC Diagram D3: Flow Diagram D4: CTQ Tree D5: Project Charter
TOOLS
DMAIC: Measure
Measure the baseline determine current performance and long term process capability 1. 2. 3. 4. 5. 6. 7. Define Defect, Opportunity, Unit and Metrics Detailed Process Map of Appropriate Areas Develop Data Collection Plan Validate the Measurement System Analysis (MSA) Collect the data and extensive study Begin Developing Y = f(x) Relationship Determine Process Capability and Sigma Baseline
M1: Check Sheets M2: Histograms M3: Run Charts M4: Scatter Diagrams M5: Cause and Effect Diagrams M6: Pareto Charts M7: Control Charts M8: Flow Process Charts M9: Process Capability Measurement
TOOLS
ACTIVITIES
DMAIC: Analyze
Extensive exercise to carry out root cause analysis
ACTIVITIES TOOLS
1. Define Performance Objectives 2. Identify Value / NonValue Added Process Steps 3. Identify Source of Variation 4. Determine Root Cause(s) 5. Determine Vital Few Xs, Y = f(x) Relationship
A1: Process Mapping A2: Regression Analysis A3: RU/CS Analysis A4: SWOT Analysis A5: PESTLE Analysis A6: The Five Whys9 involving six questions: Why, What, Where, When Who and How?)
DMAIC: Improve
Improve the process with experimentations by eliminating defects and reengineering.
ACTIVITIES TOOLS
1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5.
Perform Design of Experiments Develop Potential Solutions Define Operating Tolerances of Potential System Assess Failure Modes of Potential Solutions Validate Potential Improvement by Pilot Studies Correct/Re-Evaluate Potential Solution Mistake Proofing (Poke Yoke) Design of Experiments (DOE) House of Quality (Quality Function Deployment) Failure Mode and Effect Analysis Simulations
DMAIC: Control
Maintain the Process Capability.
1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4. 5. 6. 7. Define and Validate Monitoring and Control System Develop Standards and Procedures Implement Statistical Process Control Determine Process Capability and Cost of Quality Develop Transfer Plan, Handoff to Process Owner Verify Benefits, Cost Saving / Avoidance, Profit Growth Close Project, Finalize Documentation, Reward / Award Process Sigma Calculation Control Charts Cost of Quality Calculations Control Plan ISO 9001 Activity Network Diagram PDCA Cycle
TOOLS
ACTIVITIES
DMAIC Roadmap
Champion / Process Owner Define
Establish Team
Measure
LSS
DFSS
DFSS
RELIABILITY & ROBUSTNESS Design Features
Methodology
DMAIC
SIPOC, CTQ, SPC, FMEA, DOE, QFD, CoQ, ANOVA, Hypothesis, Regression, MSA (R & R)
DMAIC
5S, Value Mapping, Time Study, TPM, Cellular Prod., Supply Chain, Takt Time, Poke Yoke
DMADV
VOC, QFD, FMEA, CTQ, Gage R & R, DOE, Reliability Analysis, SPC, Systems Engineering
Tools
Champions
Coach Trainers
Black Belt
Green Belt
Green Belt
Green Belt
Green Belt
EXECUTIVE LEADERSHIP / LEADERSHIP TEAM: The leadership team is the executive responsible for that business unit and appropriate members of his/her staff and direct reports. This person has overall responsibility for approving the improvement projects undertaken by the SixSigma teams.
CHAMPION / PROCESS OWNER: Each project has a CHAMPION, a business leader whose job is to facilitate: project identification and selection, identify black belts and other team members who are necessary for successful project completion, remove barriers to project completion, make sure that the resources required for project completion are available, and Conduct regular meetings with the team or the Black Belt to ensure that progress is being made and the project is on schedule. The CHAMPION role is not full time, and CHAMPIONS often have several projects under their supervision.
MASTER BLACK BELT (MBB): A Master Black Belt (MBB) is a technical leader, and may work with the Champion and the leadership team in: project identification and selection, project reviews, consulting with Black Belts in technical issues, and training of Green Belts & Black Belts. Typically, the Black Belt and Master Black Belt roles are full time. BLACK BELT: Black Belts are application experts and work projects within the business. They should be well versed with the six sigma Technologies and have the ability to drive results. 1. Project team leader 2. Facilitates DMAIC teams in applying Six Sigma methods to solve problems. 3. Contributes to the accomplishment of organizational goals 4. Provides technical support to improvement efforts
Q
S
Project Scope
Metric:
Scope:
QUESTIONS