An Introduction to Six Sigma

concepts

Dr Jane Marshall
Quality, Reliability and Maintenance
Module

Objectives of the session

History of Six Sigma
Describe the Six Sigma Philosophy
Six Sigma management structure
Explain the Six Sigma methodology –
DMAIC

1
Six Sigma Background
Motorola employee investigating variation
in various processes
Acted on results using tools to reduce
variation
Improved the effectiveness and efficiency
of the processes
Engaged CEO
GE is the company that made Six Sigma a
management philosophy

Introduction to Six Sigma

Six Sigma is:
A business process
– Proactive approach to designing and monitoring key
activities
– Philosophy
– Methodology
– A process that is customer focussed and profit driven
– A project driven approach to reduce variation in
processes, minimise defects and thus increase profitability

2
Six Sigma key concepts

Standard Normal Distribution

m
-2s -1s +1s
+2s
68.27%
-3s +3s
95.45%

99.73%

3
 Six Sigma shift factor
Sigma Probability in DPMO DPMO
tails without shift with shift
The SS shift 1 0.158655 158655 690000
factor 2 0.022750 22750 308000
is 1.5σ of the 3 0.0013499 1349 66807
standard Normal
distribution 3.5 0.00023267 232 22750
4.5 0.00000340 3.400 1350
5 0.000000287 0.287 232
6 0.000000000990 0.000990122 3.4
1

What is six sigma performance ?

Sigma ( s ) is a statistical metric that corresponds to
dpm (defectives per million)

2s 3s 4s 5s 6s
308,537 dpm 66,807 dpm 6,210 dpm 233 dpm 3.4 dpm

4
What is six sigma performance ?
Precise but not accurate
Target

Precise and Accurate

Target

LSL USL

Accurate but not precise

Target
LSL USL

Defects
LSL USL

Six Sigma strategy

Responsibility of management
– Identify key processes (CTQ)
– Measure effectiveness and efficiency
– Initiate improvement
– Assign ownership and set up project team
– Benchmark
– Identify projects

5
 Key Six Sigma players
Customer
Green Belts
Black belts
Master Black belts
Champions
Executive
leadership

Six Sigma Methodology

DMAIC

6
 DMAIC Define business objectives
Set Up project team, establish the charter and
develop project plan
Review customer requirements
Define Map process
Data collection plan
Confirm starting and targets
Measure Validate measurement system

Data analysis
Analyse Root cause analysis
Process analysis

Improve Solution generation, selection and implementation

Launch new improvements

Control Monitor controls and track defect reduction
Design and implement audit plan

Define

7
Define: 3 Steps
Project team purpose and objective
– Produce a document giving details of the business
case, problem statement, project scope, goals and
objectives, milestones, roles and responsibilities
Customer requirements
High level process map
– Creating using sequence: name of process;
start/stop points; input; output; customer; supplier;
5 to 7 high level steps between start and stop.

Define
Why the project - Customer, Business and
Project Objectives
What the project is - scope, timing, targets,
financials
Who the project will involve - team membership
How the project will run - expectations, report-
outs, communication

8
Measure

Measure: 2 Phases

The creation of the data collection

plan; and

The implementation of the data

collection plan

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Measure: Data Collection
What to measure
The type of measure
The type of data
Sampling
Target/specification

Measure: CTQs
CTQ = Critical to Quality characteristic of a product,
service or information that is measurable
Example: Customer CTQ
– Delivery every Tuesday at 11.00 am to unload and
book into stores under controlled conditions
Example: Customer based spec
– Deliver every Tuesday, at 11.00 am  15 minutes
Example: Customer based performance target
– Really need it to be  5 minutes

10
 Measure: Common metrics
Defective
– any unit which fails to meet a customer Specification
Defect
– is any part of a unit which causes the unit to fail to
meet a Customer Specification
DPM
– Defectives per million Units
DPMO
– Defects per million Opportunities
PPM
– Parts per million Defective

Measure: Example
Units = 9, Defectives = 1

dpm = 1 x 1,000,000 = 111,111 dpm

9
Opportunities per unit = 6, Defects = 2

Total opportunities = Opportunities per unit (6) x no. of units

(9) = 54
Defects per total opportunities = 2/54 = 0.037
Defects per million opportunities = 0.037 x 1,000,000 = 37,000
dpmo
Sigma, based on 37,000 dpmo = 3.29 s,
(Sigma, based on 111,111 dpm = 2.7 s )

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Measure: Example
DPMO SIGMA Percent Yield (%) DPMO SIGMA Percent Yield (%)
Defect Defect
3.4 6 0.00034 99.99966 66800 3 6.68 93.32
5 5.9 0.0005 99.9995 80800 2.9 8.08 91.92
8 5.8 0.0008 99.9992 96800 2.8 9.68 90.32
10 5.7 0.001 99.999 115000 2.7 11.5 88.5
20 5.6 0.002 99.998 135000 2.6 13.5 86.5
30 5.5 0.003 99.997 158000 2.5 15.8 84.2
40 5.4 0.004 99.996 184000 2.4 18.4 81.6
70 5.3 0.007 99.993 212000 2.3 21.2 78.8
100 5.2 0.01 99.990 242000 2.2 24.2 75.8
150 5.1 0.015 99.985 274000 2.1 27.4 72.6
230 5 0.023 99.977 308000 2 30.8 69.2
330 4.9 0.033 99.967 344000 1.9 34.4 65.6
480 4.8 0.048 99.952 382000 1.8 38.2 61.8
680 4.7 0.068 99.932 420000 1.7 42 58
960 4.6 0.096 99.904 460000 1.6 46 54
1350 4.5 0.135 99.865 500000 1.5 50 50
1860 4.4 0.186 99.814 540000 1.4 54 46
2550 4.3 0.255 99.745 570000 1.3 57 43
3460 4.2 0.346 99.654 610000 1.2 61 39
4660 4.1 0.466 99.534 650000 1.1 65 35
6210 4 0.621 99.379 690000 1 69 31
8190 3.9 0.819 99.181 720000 0.9 72 28
10700 3.8 1.07 98.93 750000 0.8 75 25
13900 3.7 1.39 98.61 780000 0.7 78 22
17800 3.6 1.78 98.22 810000 0.6 81 19
22700 3.5 2.27 97.73 840000 0.5 84 16
28700 3.4 2.87 97.13 860000 0.4 86 14
35900 3.3 3.59 96.41 880000 0.3 88 12
44600 3.2 4.46 95.54 900000 0.2 90 10
54800 3.1 5.48 94.52 920000 0.1 92 8

Measure:Variation
When we measure or collect data
– how much of the variation is really due to the process or part,
– how much is due to the measurement system?

What we see What is really The errors we make

happening when we measure
Total observed = Process or part + Measurement
variation or variation or system variation or
variability variability variability
or VARIANCE
(via SPC Analysis) (via R&R Study )
s2TOTAL s2PARTS s2MSA

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 Measure:Variation
Measurement System

Accuracy Precision

Linearity Bias Stability Repeatability Reproducibility

Operator Operator-Part
Interaction

Accuracy - the difference between the measurement

and the part’s actual value
Precision - the variation you see when you measure
the same part repeatedly with the same gauge.

Analyse

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Analyse: 3 Phases

Process Analysis
Root Cause Analysis
Data Analysis

Analyse: Statistics in SS
Samples and populations
Variable and attribute data
Descriptive statistics and visual displays
Normal distribution
Confidence intervals
Comparative statistics
ANOVA, Regression
Statistical process control and Process
Capability

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 Analyse: Process capability

Process control
– Voice of the process

Process Capability
– Measuring the goodness of a process
– Comparing the voice of the process with
the voice of the customer

Analyse: Process capability

Comparison of what the process should do
with what it is actually doing
Compare the spec width with spread
The smaller the process variability or
spread the less chance of falling out of
spec
Measure how close the centre is to
nearest spec limit

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Specification limits
Established by design engineers to meet a particular
function
Tolerance is the difference between the specification
limits
The process spread is the spread of the distribution of
the individual values
No relationship between the control limits and the
process spread
Control charts cannot determine if the process is meeting
its specification

Analyse: Process capability

CAPABILITY
Short Term
In Control
Pooled std dev
compares
How spec range
much (tolerance) Cp
variability to process
width
how close
process
How
centred
centre is to Cpk
nearest
spec limit

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 Analyse: Process capability

Cp compares specification range (tolerance)to

process width regardless of where the process is
centred. It is the ratio of the specification width to 6 x
process standard deviation.
Cp = USL-LSL
s =
6sP
pooled standard deviation
P

Weaknesses of Cp
Doesn’t consider the mean of the process
No reflection on the impact that shifting
the process mean has on the ability to
produce within specification

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 Analyse: Process capability

Cpk measure how close the process centre is to the

nearest customer spec.
difference between the process average and the nearest spec
3 x the process standard deviation
sP = pooled standard deviation

Analyse: Process capability

Cpkl = X-LSL Cpku = USL-X

Cpk = min {Cpkl, Cpku}
3sP 3sP
sP = pooled standard deviation

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 Process capability Assumptions

Normally distributed data

Independent process

Process in statistical control - If the

process is unstable it has indeterminate
capability

Analyse: Process capability

Rules of thumb:

Cp Cpk
Red (Bad) < 1.00 < 1.00

Yellow (OK) 1.00 - 1.33 1.00 - 1.33

Green (Good) > 1.33 > 1.33

Use Cp and Cpk together

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 Analyse: Process capability
Capability Analysis in Minitab: example

Process Capability Analysis for Data

LSL USL
Process Data
USL 520.000 ST
Target * LT
LSL 420.000
Mean 435.833
Sample N 30
StDev (ST) 10.7176
StDev (LT) 59.6888

Potential (ST) Capability

Cp 1.56
CPU 2.62
CPL 0.49
Cpk 0.49
Cpm *
250 350 450 550 650

Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance

Pp 0.28 PPM < LSL 366666.67 PPM < LSL 69795.44 PPM < LSL 395402.81
PPU 0.47 PPM > USL 100000.00 PPM > USL 0.00 PPM > USL 79256.43
PPL 0.09 PPM Total 466666.67 PPM Total 69795.44 PPM Total 474659.24
Ppk 0.09

Process capability Comments

The Cp value does not change as the process
centre changes

Cp = Cpk when the process is centred

Cpk is always equal to or less then Cp

A Cp value less than 1 indicates the process is not

capable

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Analyse: Process capability

LSL USL
Cp 1.60, Cpk 1.60

Analyse: Process capability

LSL USL
Cp 1.60, Cpk 0.40

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Analyse: Process capability

LSL USL

Cp 0.40, Cpk 0.15

Analyse: Process capability

LSL USL
Cp 0.40, Cpk 0.40

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 Sigma conversion table

Improve

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 Improve: Prioritise
Lots of data and many improvement
actions
Danger of “Analysis paralysis”
Must prioritise
– Cause and effect matrix
– FMEA
– QFD
– Pugh Matrix
– Design of experiments (DOE)

Control

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 Control: Check list
• Identify customer groups
- associated, suppliers, customers etc
• What do you want to control
- which input or output is being measured
• Frequency of measurement
- continuous, daily, weekly, at random etc
• Measurement system analysis
• Resource requirements
• Visual output/ type of graph
- SPC, time series, histogram etc

Summary

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 DMAIC: Summary
Six sigma refers to 3.4 DPMO
Originated at Motorola in 1980s
Philosophy developed primarily by GE
The methodology is made up of five steps
– Define, Measure, Analyze, Improve, and
Control, known as DMAIC.

Perspective!

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