Professional Documents
Culture Documents
Introduction To Six Sigma: UNIT-4
Introduction To Six Sigma: UNIT-4
It is a business concept and used to achieve high quality and defect free
business, service or manufacturing process leading to customer satisfaction. It
is a highly disciplined process that helps us focus on developing and delivering
near perfect products and services. The central idea behind the six – sigma is
that if you can measure how many ‘defects’ you have in a process, you can
systematically figure out how to eliminate them and get as close to zero defects
as possible.
HISTORY
We must strive hard to delight our customers and relentlessly seek for new
ways to exceed their expectations by defect free processes. This is possible
through six – sigma approach to quality.
Earlier quality has been evaluated and specified in terms of percent defective.
With the increase in technology as well as skill level of the workforce, better
and better quality products can be produced. Industry is continuously striving
to meet high quality standards so that it can compete globally and also use
quality as competitive advantage. Thus, at present, the quality level is specified
in terms of parts per million (ppm). Based on ppm quality achieved, companies
can be rated in terms of sigma quality level.
We have studied in second unit that the process operates between ±3 sigma
limits but we noted that when the process operates between ±3 sigma limits,
there are 0.27% ( or 2700 defects per million) of defective items(outside ±3
sigma limits), but when we change the limits between upper specification
limits and lower specification limits from ±3 sigma to ±6 sigma (i.e. we have
minimized our process variations and now our process is operating between
±6 sigma limits)
From the above figure, we can make out, when we are operating between ±3
sigma limits the defects per million is 2700, then when we are operating
between ±4 sigma limits the defects per million is 63, then when we are
operating between ±5 sigma limits the defects per million is 0.6, then when
we are operating between ±6 sigma limits the defects per million is 0.2.
But Motorola also believe that after some time the process can shift about 1.5
σ which can result in the following table, which shows that when the process is
centred (then operating outside ±6 sigma) can result into 0.002 defects per
million but if the process is shifted 1.5 σ, then also the defects per million will
be just 3.4.
Lean Manufacturing
When we eliminate all waste, the order production cycle time (time
from receipt of order to receipt of payment) is compressed. The result is
short cycle and delivery times, higher quality, and lower costs.
TQM has its roots in Japan’s Total 10 Quality Control, which originated as
Company-Wide Quality Control in the 1950s. Following the lead of Dr. W.
Edwards Deming, Japan was handily winning the quality wars when TQM
emerged in the 1980s. Deming’s focus on process and a structured approach
toward improvement through the Plan–Do–Check–Act (PDCA) circle of
improvement are key elements of TQM.
1. Customer satisfaction.
2. Quality assurance.
3. Effective involvement and utilisation of the entire work-force.
4. Continuous improvement.
5. Treating suppliers as partners.
6. Establishing performance measures for the processes.
7. Process approach.
8. Involvement of people.
9. System approach to management.
1. Customer’s satisfaction.
2. Improvement of quality at every level.
3. Participative and integrative approach to work.
4. Change in organizational culture.
5. Cost reduction/maximization of profit.
6. Integration of various systems of the organization.
HOW TQM IS DIFFERENT FROM SIX SIGMA?(This was the result of its
downfall)
1. TQM sets vague goals of customer satisfaction and highest quality at the
lowest price, whereas Six Sigma sets a specific goal of 3.4 defects per
million opportunities.
2. Six Sigma also focuses on bottom line expense reductions with
measurable, documented results. Thus, unlike TQM, project selection is
of prime importance in Six Sigma.
3. For execution of the strategy, TQM is owned by the quality department,
making it difficult to integrate throughout the business. Six Sigma is a
business strategy supported by a quality improvement strategy. Further,
the infrastructure of Six Sigma is designed to be owned by the business
units and supported by the quality department.
TQM enjoyed widespread attention during the late 1980s and early 1990s
before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma.
When launching Six Sigma, the CEO should appoint a small group of senior
executives, representing various functions and business units, to provide
leadership and oversight to the Six Sigma implementation. This group acts as
an extension of the CEO’s leadership, removing operational and organizational
barriers to success while providing leadership to the Six Sigma teams.
Training and development are very important for Six Sigma implementation. As
employees are expected to learn and demonstrate new skills, some level of
training for all levels of the organization is recommended. The following are
MASTER BLACK BELT TRAINING The majority of candidates for Master Black
Belt have previously completed the Black Belt training and have many years of
experience in applying statistical tools to improve quality and the productivity
of an organization. Demonstrated leadership and mentoring skills are also a
prerequisite of this role. A Master Black Belt is certified to teach Champions,
Black Belts, and Green Belts on Six Sigma methodology, tools, and applications.
TEAM TRAINING These individuals, are the one who do not attend specialized
Black Belt or Green Belt training. They can be process owners to subject matter
experts, providing valuable insight into specific job functions or work processes
that are the focus of a Six Sigma project. In selecting the team, it is important
to include employees, having knowledge of both, the customer’s behaviour or
requirements as well as critical aspects of a process
1. Team effectiveness.
2. Problem solving and decision making.
3. Effective communication
1. Technical training that provides an overview of Six Sigma and the basic
DMAIC methodology.
2. Training team members also lays the foundation for eventual
integration of the Six Sigma approach into all of the organization’s key
processes.
CHAMPION TRAINING This training is geared for middle managers to the top
leaders of an organization. At a high level, the training accomplishes three
main objectives:
The selection criteria for key roles need to be part of the early implementation
planning efforts. Developing clear criteria for Master Black Belts, Black Belts,
and Green Belts is critical. Organizations should use the same level of scrutiny
Definition of VOC
The process of gathering, analyzing, and integrating customer input back into
the organization’s operations is called the “voice of the customer” (VOC) and is
one of the most critical components of Six Sigma.
Many companies claim they are customer focused, yet show little concrete
evidence to substantiate it. An organization that is truly committed to a
customer- focused strategy has multiple customer feedback channels and a
structured methodology for integrating the data into its product development
and customer service delivery processes.
The methods for capturing VOC range from monitoring inbound phone calls to
formal surveys and focus groups. The company should have ongoing processes
for continuously gathering customer data.
1. Surveys
The drawbacks of surveys include low response rates and limited ability to
obtain open-ended responses and biased response of the customers.
(For details see page 45-46 of Betsi Harris Ehrlich-Transactional Six Sigma and
Lean Servicing)
a. Time-consuming to conduct.
b. Difficult to consolidate and codify qualitative responses.
c. Variability of data quality and volume with multiple interviewers and
focus group facilitators.
d. Small size of focus group and one-on-one interviews limits the number
of customers that an organization can effectively reach.
e. More costly than surveys.
Table 1
For this a CTQ tree can be helpful:- A CTQ tree translates initial customer
requirements to numerical or quantified requirements for the product or
service.
CTQ trees are very helpful in this regards as they define quality from
customer’s point of view. Most excellent approach is to design a CTQ tree
for every singular need, as it results in a thorough and complete list of
demands and requirements that are required to provide a superior quality
product for customer’s satisfaction.
Need
Driver
Requirements
The systematic approach used in six – sigma project is generally referred as six
– sigma methodology. This consists of two six – sigma sub methodologies
called DMAIC (define, measure, analyse, improve and control), and DMADV
(define, measure, analyse, design and verify). The former DMAIC is used for
improving the quality of existing process/products and the DMADV for the
design and development of new processes/products. Here, we will just discuss
the DMAIC methodology.
1. Define Phase:- In this phase, goals and scope of the project are defined.
This includes the product or process that will be improved or the needs