Supply Chain Management

Six Sigma

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• Capability Statistical Cp and Cpk
- Let us assume we have a data: we need to check if process ok

USL

Target

LSL

- Observation (15-30 pcs): what is decision according to Obs.

2% 2%

LSL USL 2
• Capability Statistical Cp and Cpk
- Let us go to Cp:
- calculate STD Dev.(Ϭ ) from the observation data

To predict
observation

2% 2%

- 6Ϭ
Predicted Range

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• Capability Statistical Cp and Cpk
- Let us go to Cp:

So now we have predicted range, and Cp=1.0 , Cp potentially can be fit

But not sure its central

Cp= 1

6Ϭ
Cp= 2
- Cpk= 1
- Let us go to Cpk: Cpk : actual

6Ϭ
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• Capability Statistical Cp and Cpk

- Observation take time (3 months) to draw ,

- Cp and Cpk by using soft wares ,takes 3minutes or 3days

Saving time and money,,,

More intelligent decision,

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• Interpretations of Cp and Cpk
• When the Cp value >1:
The process spread is less and all products fall within the
specification limit. Thus the process is quite capable of
meeting the specification limit.
•When the Cp value = 1:
The process spread is little wide, but and all products fall
within the specification limit. Thus the process is just
capable of meeting the specification limit.

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• Interpretations of Cp and Cpk

• When the Cp value <1:

The process spread is wide and most of products fall
outside the specification limit. Thus, the process
is incapable .
• When Cp value = Cpk value:
The Process is assumed to be at the centre.

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• Interpretations of Cp and Cpk
• When the Cpk value < 1:
That means the process is shifted from the center
and defects will be existing

• When the Cpk value > 1 :

That means the process could be shifted from the target,
but the process is still capable to meet the design
requirements.

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• Interpretations of Cp and Cpk
Important Notes:
- To achieve Six Sigma quality in the organization, the
variation in the process must be reduced as the desired
value of Cp.
• Cp value should be ≥ 1.33 during the normal production
process.
• Cp should be ≥ 1.67 is recommended during the new
product development.
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• Six Sigma Quality
• Six Sigma

• Six-Sigma (origins at Motorola in 1987, expanded impact

during 1990s to present)

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• Six Sigma Quality
• The term Six-Sigma quality refer to an organization’s
continues improvement efforts,
• The idea behind six-sigma quality is to reduce the
variability of a process so that 12 standard deviations
can now be squeezed between the tolerance limits.

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• CP and Cpk for Six Sigma Process
• Cp and Cpk for centered process with 6 sigma specifications =2
• when process is centered Cp=cpk

LSL µ
USL
6Ϭ

12 Ϭ

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• CP and Cpk for Six Sigma Process
• Assume there a shift in process mean.
•

1.5 Ϭ

LSL µ USL LSL µ USL

6Ϭ

12 Ϭ

- How it can affect Cp and Cpk values

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• CP and Cpk for Six Sigma Process
• Assume there a shift in process mean.
USL - µ
• To calculate Cp & Cpk,

1.5 Ϭ

=
LSL µ USL
6Ϭ 6Ϭ
-However, Cp remains the same = 2

- measure Cp alone may not able to pick the right picture,

Therefore Cpk take into account the position of the mean of
specification limits. 14
• Six Sigma Quality
• Focus of Six Sigma
 Process Improvement with emphasis on achieving
significant business impact
• A process is an organized sequence of activities that
produces an output that adds value to the organization
• All work is performed in (interconnected) processes
• Any process can be improved
• An organized approach to improvement is necessary
• The process focus is essential to Six Sigma
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• Example: Source: Bozarth, C. and Handfield, R., (2006). Introduction to Operations
and Supply Chain Management, Example 4.5 , Chapter 4, pp. 91

Milburn Textiles has recalibration its dyeing process so that

the process mean is now exactly 140 degrees, with a new,
lower standard deviation of 1.40 degrees. Given upper and
lower tolerance limits of 148 and 132 degrees, does the
dyeing process provide six-sigma quality levels?
Calculating the process capability ratio for six-sigma quality
levels:

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• Example: Source: Bozarth, C. and Handfield, R., (2006). Introduction to Operations
and Supply Chain Management, Example 4.5 , Chapter 4, pp. 91

Solution:

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• Six-Sigma:

• Six Sigma allows managers to readily describe

process performance using a common metric:
Defects Per Million Opportunities (DPMO): It is a ratio of
the number of defects in a sample to the number of defect
opportunities multiplied by 1 million

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• Six-Sigma:

Defects Per Million Opportunities (DPMO)

Sources: https://www.youtube.com/watch?v=VC9f6JX7mBc
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• Six-Sigma Quality:(DPMO)

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• Six-Sigma Quality: DMAIC Cycle
• (DMAIC) = Define, Measure, Analyze, Improve, and Control
• Developed by General Electric as a means of focusing
effort on quality using a methodological approach.
• Overall focus of the methodology is to understand and
achieve what the customer wants.
• A 6-sigma program seeks to reduce the variation in the
processes that lead to these defects.
• DMAIC consists of five steps....

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• Six-Sigma Quality: DMAIC Cycle
• DMAIC consists of five steps....

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• Example to illustrate the process...
• We are the maker of cereal. Consumer reports has just
published an article that shows that we frequently have less
than 15 ounces of cereal in a box. Boxes are advertised as
containing 16 ounces.

• What should we do?

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• Example to illustrate the process...

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• References:

•Bozarth, C. and Handfield, R., (2006). Introduction to

Operations and Supply Chain Management,

• Supply Chain Management , F2021 , Dr. Soha Mousa

Sources: https://www.slideshare.net/avinashsweetguy/house-of-quality-14734317

Sources: https://www.youtube.com/watch?v=VC9f6JX7mBc

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