Measurement of Six-Sigma and Rolled Throughput Yield Sasadhar Bera, !IM RanchiUnderstanding Defect Before calculating Sigma level performance ofa process, we have to find out or define defect. Wentifying the ‘opportunites fora defect generation is also needed. ‘Defect: A measurable characterise ofa product or service (oF process isnot within the acceptae custamer lis ie. ‘any nar-confrmity to a product or service or process. In Service Industries, a defect may bean error ar 2 mistake Defective unit: A unit of product or service i considered to be defective if ithas at least one defect or multiple defects. ‘Opportunites: The umber of potential chances for @ defect. These potential chances are known 3s opportunites. Understanding Non-conforming Unit The dyeing department ofa textile frm randomly selected 152 lots that are produced during last one month. It was ‘observed that 30 lots are not propery coloured (or tone), ‘he numberof non-conforming unit = 30 An insurance frm has set standard that policy appleatlons be processed within 3 days of receipt. In a month, out of 1000 applications, 5D fal meet this requirement The numberof non-conforming unit = $0 Understanding Defect ‘The folowing are the types of defector non-conformances fora courier service compar |. Percent of packages sorting to Incorrect locations in the sorting hub i. Percentage of packages loaded on the wrong truck tthe stnibution center. Percentage of packages not delivered ontime based on route statistics. Understanding Opportunities ‘A process where defects are classified by types of ‘haraese and umber of potential chances of faire for each characteristic provides mare insight into the process. Example: An institut rary has diferent types of books such 235 Computer scence, Mathemate, Economics, Stats, and Management. The books are kept ite racks within a shel as per catalogue number 2 book stot avaabe inthe defined poston as per catalogue number, we ca al leation defect ‘There are three possible ways 2 lation defect can occur ‘These are called opportunites. ‘Type A: Book placed in wre rack ‘ype B: Book placed in ight rack But wrong shelf ‘ype C: Book misplaced within the shelfUnderstanding Opportunities... Consider prelght inspection testing process is observed in last one month, 35 prelight inspection for military airerafts ‘wove performed. Nor-conformances were noted in 18 cases. Each inspection required to check 60 items, "Number of unit inspected = U= 35 Number of non-conforming units observed = 0 = 18 Number of opportunities in each defect = 0 = 60, “tak opportumities = Ut0.=35%60=2100 ‘Typical Process Drifting ‘The Automotive Industry Action Group (AIAG) recognized In ‘the mid 1980's thatthe process conter rarely stay at target {n).The center tends to "shi" above or below the target. |s assumed that @ normaly distributed process has process center within a range of 1.59 above oc 15a below the target (ie. #150 shit) The sigma level performance caleuation takes into account ‘01.56 process mean sift. This s known as “ypieal process ring Understanding PPM and DPMO Performance ofa process measured by parts per milion (PM) detect ete oF defects per millon opportunities {pPMo, PPM measures now many parts are defectives out of every rllon of items produced. 1 is based on non-conforming DPMO measures bow many defeets ae observed out of ‘every milion of opportunities. t's based on opportunities of detects PPM or DPIO both makes eale for anyone to visualize and understand the quality level of a process. ‘Typical Process Drifting eroces follows normal distribution and process mean shift £1.50‘Sigma Level Performance Measurement ‘Basic relationship Number of defective units Number of units produced = U Opportunities fora defect =O ‘Total opportunites = TOP = U0 opu- 2 U Defects per uni Defect per unit epportunities = 0°0 = Ux0 Defect per milion opportunites = DPO*i0 Zlong term (2,) = NORM S.NV(2~DPO) = NORM S.NV(3~ 0008573) ©2.38 Zahort term Sigma performance level = 2, 5 415-2384 150-288 28 Method2: Using sgma conversion table For DpMo: 571, Sir performance level =Z, = 3.88 Example: Sigma Level Performance Consider preflight inspection testing graces Is observed in last one month, 35 preflight inspection of military aircrafts ‘were performed. Non-canformances were noid in 18 cases Each inspection required to check 60 tems. What gma level 05 this correspond to? Defectne units=0= 18 [Number of unit checked = U=35. (Opportunities for a ete ‘otal opportunities =? Defects per unt (OPU) =? Defect per unit opportunities (OPO) = Defect er milion opportunities (OPMO) =? Understanding Yield eld measures the probablity of a defect free unt. Thus Yields the area under the probability density curve between tolerances, The formula using Poisson distribution for zero failure and rate of alles given below en 0 eYield Relationship atin ‘ect Peta fing wh 2c t= =F ate cn Yn i whetstone ea ec ort TOP Nein Sel Vaz at eid t= 7 we 2 Zee Zech: awe 20.018 [Noa ] Example2: Sigma Level Performance Current process performance level, Method eu =0.05 Zlong term 2) = NORM.SINV(1- DPU) = 14 Shortie Snag) 2y AS 165 1150=3.1¢ Current sigma eve! “Method 2: Using sigma conversion table For PPM = 50000, Current sigma level = Zs, Example2: Sigma Level Performance ‘An insurance fem has seta standard that policy aplications be processed within 3 days of receipt. In a month, out of 1000 applications, 50 fll to meet ths requirement. What Is the cutent process performance level? What should be the target sigma level (benchmark)? Answer: Example2: Sigma Level Performance ‘eget performance level: Method 1; ‘Throughput yield = Probability of obtaining 2 unit with zero defect = Vu = POO} = 9° = 2% = 0.9512 For m= 1, Rolled throughput yield = Vi= Yor Normalized Viel: Ys = sqr.9512) = 0.9753 Defects Parts Pr Milian (PPM) in normalized unit Yen) 10 = 25000 Zong term f2y) =NORMS.INVpore) = 1.965 Short term Sigma (2) = y 1.5 * 1965+ 1.50" 2.465 “Target performance level = 3.465Example2: Sigma Level Performance “Target performance level: method ‘Throughout yield = Probabitty of obtaining a unit with zero elect =p PURA0) ets CO = O.OSH? For m= 1, Rolled throughput yield = Y= Yop Normalized Viel: Yin = sqr(0.9512) © 0.9753 Defects Parts Fer Mion (PPR) in normalized unt = fo) 10° 25000 For DPMO « 25000, sigma value from table= 3.45 Hence target performance level = 3.45, ‘Yield Calculation in Multistage Process —.. First pass yield 1s nase on non-defectives and expressed 35 ratio of numberof non-defective units and total number of units tested, Rolled ehroughput Ved (Yq): Rolle throughput yield i the probabilty of obtaining a defects frae unit. Is based an Selects that occur throughout a multistage proces. Hidden Factory Concept Reworking Is done on removable defect. The part of the process step that handles defective product by ceworking to nest the speciation is known as ‘hidden factory: Rework has financial impact as cost and time are involved wren organizations only focus on a defect rate atthe end of 2 process, they can lose insight of reworks that occu within the process. Rolled throughput yield measurements can give visibilty of the process steps that have high defects rates or rework need. Yield Calculation in Multistage Process Process A: 100 units wih 10 serapped and 5 reworked. Hence we got 80 units. [Acual Yel, = (200-15) 100 = 0.85 Process 8:90 units with 10 scrapped and 7 reworked, So we got 80 units (Actual Viel), = (90-37/90= 0.82 Process C80 units with S scrapped and 3 reworked. So we got Ts nis(Atual a= (808)/80 = 0.90 Process 0:75 units wih strange and 10 reworked, So we got ‘TO nits (Actua Vel = (75-151/75 080 Using muitipiation formula, Throughput yield Ya) oeRolled Throughput Yield fori La cn font Line Example: Yield in Multistage ‘Curent performance level: TDPU = 0.73868 resus in 2 Zen NORM.S.NVII~ TDPU) NORM SiNVJ~0,73868) 064 Basoline Sigma Level: Zr = 2q +15 =-0.64+1.50=086 ‘current performance level =0.85. Example: Yield in Muttistage ‘process has D defects and U units protuced within a penod ‘often m number Example: Yield in Multistage ‘Target performance lev: Method 3 Number of sages, m= 10, Yq, = 047774 ‘Wormaized yield = Yuan = (Yar) {longterm 2y= NORA S NVI) 348 ‘stot tr Method 2 Normale ve = Yn Detect per Normalized Ut 0a * 0073869 ‘Therelors, Detective Pats Per Man (PPR) in normale unit gn) 108» 73869 \Uang 2M to sigma conversion table, Target Sigma level (Benchmae): Zcsnat