Six Sigma

Six Sigma

Introduction

The Lean System crossing

Lean

CM

6 Sigma

Six Sigma

Lean Definition

Value Stream Map

Current State

Future State

A strategy for achieving Continual Improvement in performance

through the Enhancement of VALUE in all resources and time
invested throughout the total business process.

Why I am here...

Six Sigma

Business Strategy

Product Family
Identification

Current State Map

Lean System
Where I am...
Customers
Process & Information
Flow
Suppliers

Where I
want to be...
Future State Map

How Im going to get there...

5S

6 Sigma

TPM

[When I dont have the solution]

SMED
Continuous Flow

Lean Tools
[When I know the solution]

Pull
Standardized Work
Poka-Yoke

Implementation
Plan

Constraint Management

When Im going
to get there

[Control while Im Improving]

What Are The Steps

VSM

Six Sigma

Strategy Definition
Current State Map
Future State Map
Implementation Plan

Constraint Management

Kaizens

6 Sigma Tools

Lean Tools
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Six Sigma

What is the Six Sigma Concept?

Developed at Motorola in the 1980s

Uses facts (or data) and statistics

Focused on problem solving

Helps drive defects to near zero and reduce waste

Can be used in all departments

Not another Quality Program

Institutions
OurFinancial
Customers
Large Manufacturers
Small Manufacturers

WHOS USING
IT?

Telecoms
Hospitals Large Cities

Our Competitors
Universities

A TOOL TO DRIVE BUSINESS RESULTS

5

What is Six Sigma?

Six Sigma

Six sigma is the fastest growing business management system in

industry today.
Centred on a powerful problem solving and process optimisation
methodology.
The main thrust of six sigma is the application of statistical tools in the
context of a well-disciplined, easy to follow methodology.
Six sigma is a defect reduction methodology. It uses Define,
Measure, Analyse, Improve and Control tools to reduce variation &
improve areas of the business.
Most companies have between 35000 and 50000 defects per million
operations, or about 3 sigma.
The goal is to reduce defects to the point where errors would be
almost non existent: 3.4 defects per million, or 6 sigma
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Six Sigma

Six Sigma

Greek letter looks like this

A sigma level measures the process

[its ability to generate no defects]
The higher the sigma level the better
[the less likelihood a defect will occur]
As the sigma level of a process increases

Costs decrease
Defects decrease
Cycle time decreases
Customer Satisfaction increases
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Six Sigma

How Does 6 Measure

Sigma

% Good

% Bad

DPMO

30.9%

69.1%

691,462

69.1%

30.9%

308,538

93.3%

6.7%

66,807

99.38%

0.62%

6,210

99.977%

0.023%

233

99.9997%

0.00034%

3.4

Six Sigma

6 Practical Meaning?
99%
99% Good
Good Four
Four Sigma
Sigma

99.99966%
99.99966% Good
Good Six
Six Sigma
Sigma

U.S.
U.S. Postal
Postal System
System
20,000
20,000 lost
lost articles
articles of
of mail/hour
mail/hour

U.S.
U.S. Postal
Postal System
System
Seven
Seven lost
lost articles
articles of
of mail/hour
mail/hour

Airline
Airline
Airline System
System
Airline System
System
Two
One shortshort- // long-landing/five
long-landing/five years
years
Two shortshort- // long-landings/day
long-landings/day One
Medical
Medical Profession
Profession
200,000
200,000 wrong
wrong drug
drug
prescriptions/year
prescriptions/year

Medical
Medical Profession
Profession
68
68 wrong
wrong drug
drug prescriptions/year
prescriptions/year
Long-Term Yield

Six Sigma

The Focus of Six Sigma...

Y = f(x1, x2, x3, x4 xn)

Good Carrot cake = a function of (flour, carrots, recipe, sugar,

cinnamon, eggs, frosting, oil, baking soda, heat, to last item)

Output is a function of a number of inputs.

In other words Garbage in yields garbage out
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Six Sigma

Premise for Six Sigma Methods

A defect is process output outside of
customer expectations
Variation can result in defects
Sources of variation can be
Identified
Quantified
Eliminated by control or prevention

Measurements are critical

Show me the Data!
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Six Sigma

Measurements Are Critical ...

If we cant accurately
measure something,
we really dont know
much about it.
If we dont know much
about it, we cant
control it.
If we cant control it, we
are at the mercy of
chance.
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Six Sigma Objectives

Six Sigma

Gaining process knowledge

Achieving continuous process improvement
Making fact-based decisions
Applying the right tools to achieve business objectives
Making positive behavioral changes

Getting Real Business Results

Customer Satisfaction
13

Six Sigma Comparison

Traditional
Traditional

Six Sigma

Six
Six Sigma
Sigma

14

Improvement Roadmap

Six Sigma

Objective

The 5-step
Six Sigma
Problem
Solving
Process

Define the problem

Phase
Phase1:
1:
Define
Define

Phase
Phase2:
2:
Measure
Measure

Take measurements & verify accuracy

Phase
Phase3:
3:
Analyze
Analyze

Identify the critical few factors which

directly influence the problem

Phase
Phase4:
4:
Improve
Improve

Determine ways to improve the results

Phase
Phase5:
5:
Control
Control

Make sure the problem does not

re-occur by controlling the few factors

What is the problem?

How do we know?

Whats causing it?

How can it be improved?

How do we keep it on track?

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Remember Y=f(x1, x2 xn.)?

Six Sigma

DEFINE

MEASURE

Practical
Practical Problem
Problem

Statistical
Statistical Problem
Problem
What are the X's?

y f ( x1 , x2 ,..., xn )
What is the relationship of the Xs?

Practical
Practical Solution
Solution
CONTROL

ANALYSE

What are the main inputs, their effects

and optimum values

Statistical
Statistical Solution
Solution
IMPROVE
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Six Sigma Roadmap Phases & Tools

Six Sigma

Define

Measure

Analyze

Improve

Control

VSM
Thought & Process Map
Cause & Effect Matrix
Potential Failure Mode Effects Analysis
Measurement Systems Analysis
Statistical Process Control
Components of Variation Study
Design of Experiments
Capability Study
Control Plans
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Six Sigma

Logic Behind a Six Sigma Project

DEFINE

Clarify business
strategy and
customer input

Select projects:
VSM, strategy,
customers, etc.

Assign resources:
Champion, BB, GB,
other

Develop initial
Thought Map

Determine major
outputs: Big Ys of
the project (CTQs)

Define baseline,
and objectives for
key project metrics

Define Project
Charter and agree
on savings

Define project team

and review /
support structure
18

Six Sigma

Logic Behind a Six Sigma Project

D

MEASURE

Develop Process
Map with inputs (xs)
and outputs (ys)

Classify inputs (xs)

in Process Map
(C / NC)

Develop Cause
and Effect Matrix

Identify key inputs

(top xs) from C&E
Matrix x

Define actions for

inputs (xs) with high
RPN Control Plan

Complete MSA for

inputs (xs) / outputs
of interest

Update Thought
Map and revise
Project Charter
Complete FMEA for
key inputs (top xs)

Define baseline for

key outputs (ys)
SPC / Capability
19

Logic Behind a Six Sigma Project

Six Sigma

ANALYZE

Define major
effects: key inputs
outputs
Multi-Vari / COV

Understand effects:
Chi-Square,
ANOVA and
Regression

Develop Design of
Experiments plan

Conduct Design of
Experiments
DOE

Define relationships
between inputs and
outputs y=f(x)

Define how to
eliminate / reduce
output variation (ys)

Conduct
confirmation studies
and DOEs

Define improvement
opportunities and
update Thought
Map

Monitor process for

critical xs and ys
SPC / Capability
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Logic Behind a Six Sigma Project

Six Sigma

IMPROVE

Implement process
improvements for
critical xs and ys

Continue to learn
about y=f(x) and
update Thought
Map

Conduct DOE
optimization studies
(Response
Surface)

Update Process
Map, MSA, FMEA
and Control Plan

Document / monitor
improvements
SPC / Capability

Define follow-up
actions and
responsibilities

Define financial
impact of
improvements

Update Project
Charter
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Logic Behind a Six Sigma Project

Six Sigma

CONTROL

Define control
methods for critical
xs / ys: Control
Plan

Finalize Process
Map and FMEA

Establish / review
Quality System
procedures

Establish process
control for critical
xs / ys: SPC

Ensure capable
measurement
systems: MSA

Document product /
process changes

Finalize financial
benefits with
Controller

Update Project
Tracking and Cost
Out

Assure that gains

are sustained
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Lean & Six Sigma

Six Sigma

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THEORY OF CONSTRAINTS
(TOC)
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