12

Section

WARWICK MANUFACTURING GROUP

Quality, Reliability and Maintenance (QRM)

Six Sigma

Warwick Manufacturing Group

 SIX SIGMA

Contents

1 Introduction 1
2 Why Six Sigma? 3
3 What’s different about Six Sigma compared to
other quality management philosophies? 3
4 Six Sigma background 6
5 Developing a Six Sigma Strategy 7
6 Six Sigma Methodology 9
7 Management of Six Sigma 29
8 Design for Six Sigma (DFSS) 31
9 References 33
10 Appendix 1 34

Copyright © 2006 University of Warwick

Warwick Manufacturing Group

Six Sigma Page 1

SIX SIGMA
1 Introduction

Six Sigma (SS) is a business process that allows companies to improve their bottom line by
designing and monitoring everyday business activities in ways that minimise waste and
resources while increasing customer satisfaction. It is said that past quality control programs
have focussed on detecting and correcting commercial, industrial and design defects whereas
Six Sigma has a broader focus:

It provides specific methods to re-create the process so that defects and errors never arise
in the first place.

Many companies have adopted the Six Sigma philosophy including the following:

• AlliedSignal;

• General Electric;

• Sony;

• Honda;

• Maytag;

• Raytheon,

• Texas Instruments,

• Bombardier;

• Canon;

• Hitachi;

• Lockhead Martin

• Polaroid

They have adopted the SS philosophy because they believe that it will help them increase
market share, decrease costs, and grow profit margins. As a result they are attempting to tie
quality to profit.

To increase profitability the SS philosophy is adopted by the whole company, that is,
operators, designers, service providers and managers. An internal infrastructure is created to
enable all employees to become aware of quality performance and how it affects profitability.

The philosophy encourages people to ask questions about every process and every step along
the way to creating the final product. It is about asking tougher and tougher questions until
quantifiable answer can be achieved that result in a change in behaviour. Such questions

Warwick Manufacturing Group

Six Sigma Page 2

cannot be answered without a planned approach to solutions, the SS methodology is therefore

designed to pave the way to find the right answers.

Organisations need ways of measuring what they claim to value. The foundation of SS uses
metrics or measurements to calculate success; a company using the SS methodology must
therefore measure all its processes and changes to its processes.

There are three components necessary to becoming more effective and efficient using SS,
these are:

1. Business Process Management. This strategic component is the responsibility of

executive management.

2. A scientific method used to define and measure problems, analyzing root causes, and
testing theories of improvement. In essence, this is the methodology used in SS to
improve effectiveness and efficiency and encompasses well known and successful
statistical tools.

3. Another key component of SS is a cultural one. All employees within a company, from
senior executives to operators, must embrace and apply the methodology to ensure a
successful outcome.

This module will introduce the concept behind the SS philosophy. It will outline its history
and provide details on the methodology. The management of a SS programme within an
organisation is also discussed and examples given.

KEY POINTS

Six Sigma is a management philosophy attempting to improve effectiveness and efficiency.

Unlike other quality initiatives that focused just on tools, Six Sigma is based on the active
involvement it generates from management

Using the Six Sigma methodology makes all parties in a company aware of what effects
profitability

Six Sigma is concerned with measuring processes and changes to processes

It is believed that results from Six Sigma have not been paralleled by any other quality
initiative.

Warwick Manufacturing Group

Six Sigma Page 3

2 Why Six Sigma?

The goal of Six Sigma is not to achieve SS levels of quality but is about improving
profitability. However, improved quality and efficiency are immediate by-products of SS.

While SS is a long-term, forward thinking initiative designed to fundamentally change the

way companies do business, it is mainly designed to generate immediate improvements to
profit margins.

Many large companies have implemented SS because of the focus of profitability

improvement and also the claims made on the successes of using SS.

SS consultants claim:

If a company operating at the three sigma level introduces SS and makes a one sigma shift
improvement each year the company will experience:

• 20% margin improvement

• 12-18% increase in capacity

• 12% reduction in the number of employees

• 10-30% capital reduction

It is also claimed that the profit margin increases from 3 sigma to 4.8 sigma are dramatic and
that at 4.8 sigma companies requires a redesigning of processes, known as Design for Six
Sigma (DFSS).

With promises of such increases in profit margins many large organisations have
implemented the SS Philosophy.

3 What’s different about Six Sigma compared to other quality

management philosophies?

Firstly, how is SS measured? Simplistically, it focuses on the concept of defects per million
opportunities DPMO. It uses the standard normal distribution as its measurement system.
From the standard normal distribution, the mean is 0 (denoted by µ) and the standard
deviation is 1 (denoted by σ). From figure 1, 95% of the population falls within ±1.96σ of the
mean (µ) or alternatively 99% of the population falls within ±2.58σ of the mean (µ)

Warwick Manufacturing Group

Six Sigma Page 4

μ
-1.96σ +1.96σ
-2.58σ 95% +2.58σ

99%

Figure 1: standard normal distribution

Similarly from figure 2, 68.2% of the population lies within ±1.0σ of the mean, 95.45% of the
population lies within ±2.0σ of the mean and 99.73% of the population lies within ±3.0σ of
the mean

μ
-2σ -1σ +1σ +2σ
68.27%
-3σ +3σ
95.45%

99.73%

Figure 2: standard normal distribution

Warwick Manufacturing Group

Six Sigma Page 5

0.00135
0.9986

µ 3σ

Figure 3: one-sided normal distribution.

So for example, from figure 3, when σ = 3 there are 1350 DPMO ((1-0.998)*1000000).

It is said that companies that have a two to three sigma level of performance experience
business problems. Management wants to increase profitability. Often, they focus on the short
term and begin to lay off employees and consequently, in the short term, the bottom line
looks improved. With less people in the organization, there is more work for those who
remain and therefore by downsizing, profitability may get worse with less people expected to
work harder. The business is therefore neither effective nor efficient.

In the early 1980s companies showed an interest in Japanese manufacturing techniques and
consequently many manufacturers introduced techniques such as Statistical Process Control
or Just in Time Manufacturing. However they used them as cost savings measures and the
workforce saw these efforts as attempts to get more work out of fewer workers. This was
particularly the case when these quality efforts were combined with downsizing. In addition,
management only attempted to implement these initiatives as programs and this meant that
the focus was almost exclusively on the tactics of improvement at the worker level with
virtually no work done by management itself.

SS was started at Motorola in the mid-1980s, but popularised in the 1990s by AlliedSignal
and General Electric.

In many other quality approaches, management played little if any role other than approval of
bringing in external consultants to train the workforce, but with SS, the work begins with
management. First, executives create the Process Management system identifying and
measuring the processes of their organization. Management will therefore measure the
current sigma performance for key processes. The lowest performing processes that have the
most direct impact on the company’s business objectives are identified and project teams are

Warwick Manufacturing Group

Six Sigma Page 6

established to identify areas for improvement. Individual workers will join these project
teams with the objective of improving the performance of the worst processes. The teams
exist in the short term and members of the team are instructed on a number of tools,
techniques and concepts. The SS philosophy therefore incorporates a methodology that
includes a number of key concepts and tools and these will be described in a later section.

4 Six Sigma background

Six Sigma originated at Motorola and began through an engineer who was studying the
variations in the various processes within the company. This study highlighted that too much
variation in any process resulted in poor customer satisfaction and ineffectiveness in meeting
the customer requirements. Motorola acted on what processes produced the most variation by
applying a complete set of tools to reduce and control the variation in the poorly performing
processes and greatly improved the effectiveness and efficiency of those processes. However
not only did they improve those processes, they actively engaged their Chief Executive
Officer in their work.

Management at AlliedSignal also started using a SS approach similar to that taken by

Motorola and quickly generated significant improvements, both in effectiveness and
efficiency. This was done through focusing on customer measures of effectiveness and
generating greater efficiencies through both managing processes and chartering SS teams to
improve performance. Within three years, it is said that AlliedSignal was saving millions of
dollars and improving their reputation with customers while not resorting to cost cutting
through downsizing or lay-offs.

By the end of 1995, General Electric had decided to make SS a corporate-wide initiative.
Again, like at Motorola and AlliedSignal, General Electric decided to make SS different from
other programs that had been associated with quality. SS would have both the formal support
and active involvement of management. It would be the way a company manages their
business, not something to be foisted on the workforce as something extra to be done after
they worked long hours making up for all the work left by those who had been laid off during
downsizing.

As successful as Motorola and AlliedSignal were in their implementation of SS, General

Electric is the organization that used SS most impressively to drive improvement in
effectiveness and efficiency. In his autobiography, Straight from the Gut, Jack Welch
described multiple successes that were generated through the application of SS.

GE Plastics had wanted to obtain Sony’s business for Lexan polycarbonates in the making of
CD-ROMs and CDs. However, purity standards were very high, and General Electric was
operating only at a 3.8 sigma level. After applying SS improvement methods, they went to a
5.7 sigma level and earned Sony’s business.

Warwick Manufacturing Group

Six Sigma Page 7

At GE Power Systems, rotors were cracking due to high vibration. A third of the 37 operating
units had to have rotors replaced due to the high level of poor performance. Through
application of SS methods, vibrations were reduced by 300 percent and at the time of
publication of Jack Welch’s book, there had been no replacement of rotors.

At General Electric Capital customer response time dramatically improved in the mortgage
business. At one point, getting a customer representative by phone averaged only 75 percent.
After applying SS methods, this improved to over 99 percent.

It is believed that, less than two years after the initial application of SS, General Electric had
generated over $320 million in cost savings. By 1998, it had generated three quarters of a
billion dollars in cost savings and anticipated over a billion dollars of cost savings by 1999.

In the past five years, hundreds of organizations have indicated their interest in making SS
their management philosophy of choice. While many of the businesses attempting to
implement SS are well intentioned and want to implement SS properly just as General
Electric did, there are also those impatient executives who now look on SS in the same way as
they look on downsizing. This quick-fix approach to SS is a sure path to the same short-term
results that prevent long-term profitability.

KEY POINTS

• Six Sigma was first developed at Motorola.

• AlliedSignal was the second organization to be involved with Six Sigma.

• General Electric is the organization that made Six Sigma a management philosophy

• Six Sigma is based on the active involvement it generates from management.

5 Developing a Six Sigma Strategy

As mentioned in earlier sections one of the key reasons for success of the SS Philosophy is
due to management leadership and involvement. One of the problems with previous quality
initiatives is workforce perception. They felt that management used such quality activities as
methods for making them work harder. They saw how they had to change the way they
worked and how they had to participate in teams, learning new concepts, but with little
management involvement or change. Analysis of failed quality initiatives highlighted lack of
management support as one of the reasons behind the failure. SS is different because the
work first and foremost begins with management. Management of any organization is
responsible for the strategy of how SS is implemented.

Creating a SS strategy is therefore the responsibility of management and such a strategy

includes:

Warwick Manufacturing Group

Six Sigma Page 8

• Identifying the key processes of the organization, sometimes known as CTQs (critical
to quality)

• Measuring their effectiveness and efficiency of these processes

• Initiating improvement of the worst performing processes.

The management team therefore identifies key processes and assigns ownership. These can
be the existing management team or more often personnel from non-management with the
following characteristics:

• Expertise on a subject matter expert.

• Someone who experiences the gain if the process is working well and the pain if the
process is working poorly.

• Someone who has respect among employees in preceding and subsequent processes.

• Someone with an aptitude for process thinking and improvement.

The process owner therefore has the responsibility of acquiring the key measures of
performance for the process. This is often called benchmarking.

The process owner is also responsible for identifying the consequences of poor performance
by investigating customer requirements. By investigating customer satisfaction and
compliance with requirements and also benchmarking the process the team can focus on
improvements. The improvement team can then identify the CTQs i.e. those processes that
when improved would give the most impact on requirements compliance and use SS tools to
measure and consequently identify areas for improvement with the final outcome of
increasing the sigma value of the process.

For example, it is said that most businesses in the United States operate between a two and
three sigma performance. This means in SS terms that for a process sigma of 2 there is DPMO
of 308,538 and for a process sigma of 3 the DPMO 66,807. This implies that such companies
are not being effective and efficient.

The next section explains the SS methodology DMAIC.

Warwick Manufacturing Group

Six Sigma Page 9

KEY POINTS

• Six Sigma is a management philosophy that includes active management involvement,

not just support.

• Management’s initial involvement with Six Sigma is to create the business process
management system.

• Management clarify and communicate the strategic business objectives of the

organization.

• Management must identify the key processes of the organization and measure their
current performance in terms of effectiveness and efficiency.

• The lowest performing, highest impact processes (CTQs) should be targeted for SIX
Sigma improvements.

6 Six Sigma Methodology

As has been mentioned in the previous sections the SS approach contains a management
philosophy and a methodology. This section explains the methodology and systematic
approach to defining, measuring, analysing, improving and controlling a particular processor
processes.

After a process owner is identified a team is established with the function of improving
effectiveness and efficiency of the process. Implementing the SS Methodology does this.

6.1 Key concepts

The SS Methodology is a systematic, logical approach to identifying and solving problems. It

is founded on well-known and established statistical techniques as the basis for measuring key
parameters of a process. The majority of the techniques are concerned with identifying and
measuring the variation in a process and consequently use the Normal Distribution as a means
of translating the measure of variation into DPMO.

6.1.1 The Standard Normal Distribution

Simplistically, there are two statistical measures that are crucial when using the Normal
distribution, and these are:

Warwick Manufacturing Group

Six Sigma Page 10

µ the mean of the distribution; and

σ the standard deviation of the distribution

μ
-1.96σ +1.96σ
-2.58σ 95% +2.58σ

99%

The Normal distribution is a symmetrical distribution with the mean as the centre and the
standard deviation denoting the variation in the data. The standard normal distribution has a
mean of 0 and a standard deviation equal to 1. The statistics used in SS originate from this
distribution, where for example, 99% of the population lies within ±2.58σ of the mean. The
statistics of the SS methodology therefore concentrates on the amount of variation in a
process. It also concentrates on the area in the tails of the distribution; so for example, in a
one-sided standard normal distribution (need to use the positive side as defects are positive) a
3 sigma process implies 1350 defects per million opportunities (DPMO).

Warwick Manufacturing Group

Six Sigma Page 11

0.00135
0.9986

µ 3σ

6.1.2 Specification limits

Specification limits express the customer’s needs and sets the goalposts for determining
defects. In Manufacturing, engineers determine specification limits and operators ensure that
they are met. For example, a complex electronic product is designed and prior to shipping is
exposed to a serious of tests known as production acceptance tests (PAT). If the product
passes these tests then it is shipped. The designers of the product design the tests and specific
electronic parameters within the product are measured. The engineers therefore are able to
work out from the their designs what limits would cause the product not necessarily to fail but
be close to the limits of it’s design and therefore with the stress of operation in the field may
consequently fail.

6.1.3 Variation

There are three primary sources of variation:

1. Inadequate design margins;

2. Unstable parts and materials provided by suppliers; and

3. Insufficient process capability or the inability of processes to meet specification limits.

6.1.4 Sporadic vs persistent problems

Some defects that occur are the result of sporadic or periodic flare-ups in a process that is
otherwise maintained at some level of capability. A process that is defective 2% of the time

Warwick Manufacturing Group

Six Sigma Page 12

but suddenly jumps to 5% can be considered sporadic and will most likely set off alarm bells.
Most companies will respond to sporadic faults but this will not necessarily raise its sigma
level. SS is concerned with identifying and reducing persistent problems.

Persistent defects are usually caused by hidden design flaws, inadequate tolerances,
inadequate tool maintenance, employee carelessness and insufficient inspection feedback to
name a few. Signs of persistent defects may include, high scrap, lots of rework, escalating
cost of inspection and testing as well as higher than expected manufacturing costs.

6.1.5 Long term vs short term capability

One strength of the SS approach is that it recognises and accounts for the fact that processes
vary over time. When data is gathered about a process over a period of time, it can be seen
that the process does not always perform on target. If you consider a lower and upper
specification limit (USL and LSL) you would expect that the target would be centred between
the USL and the LSL. Thus USL and LSL create an area of acceptable performance.
Variation can be looked at in two ways, namely, design variation and process variation.
Owing to natural sources of variation you would expect a distribution within the design
acceptable performance area. By comparing the actual process distribution spread with the
limits allowed by the USL and LSL process capability can be measured. As the process
variation narrows in relation to the design variation, process capability increases.

However, over an extended period of time the process centre may be on target but during that
time the process average may have been off target. The aggregate effect of shifts in the
process centre will widen the process variation and this will degrade capability over time and
increase the likelihood of defects.

Shift and drift is inevitable and has to be accounted for in the design. So when companies say
that their processes are SS they really mean that in the short-term capability of their processes
is SS.

6.1.6 The Six Sigma shift factor

To account for shift and drift the SS approach uses a shift factor to allow the total process
variation to be subdivided into short-term and long-term components.

The SS shift factor is 1.5σ to the standard Normal distribution thus giving the following
values of DPMO:

Warwick Manufacturing Group

Six Sigma Page 13

Sigma Probability in tail DPMO without shift DPMO with shift

from standard normal

1 0.1586552597590 158655.2598 690000

1.5 0.0668072287935 66807.22879 500000

1.96 0.0249978251810 24997.82518 308000

2 0.0227500620362 22750.06204 308000

2.58 0.0049400459364 4940.045936 15800

3 0.0013499672232 1349.967223 66807

3.5 0.0002326733737 232.6733737 22750

4.5 0.0000034008031 3.400803062 1350

4.8 0.0000007943527 0.794352669 480

5 0.0000002871050 0.287105 232

6 0.0000000009901 0.000990122 3.4

So for example, 4.5σ gives a DPMO of 3.4 and that is the DPMO for 6σ using the 1.5σ shift.
This means that in the short-term the processes are SS but in the long term are 4.5 sigma.

This shift comes from Motorola’s experience of implementing the SS process. It is used to
compensate for the consequences associated with process centring. The adjustment takes into
account what happens to every process over many cycles of manufacturing. It is a way of
accounting for unexpected errors or movement over time.

6.2 DMAIC

The SS methodology is based on the following process:

Warwick Manufacturing Group

Six Sigma Page 14

¾ Define business objectives

Define
¾ Set Up project team, establish the charter and develop
project plan
¾ Review customer requirements
¾ Map process

¾ Data collection plan

Measure ¾ Confirm starting and targets
¾ Validate measurement system

¾ Data analysis
Analyse ¾ Root cause analysis
¾ Process analysis

Improve ¾Solution generation, selection and implementation

¾ Launch new improvements

Control ¾ Monitor controls and track defect reduction
¾ Design and implement audit plan

Appendix 1 and 2 gives a list of all quality tools against phase in DMAIC as well as the
shifted DPMO to sigma table.

6.2.1 Define

The Define stage can be split 3 main phases (sometimes known as tollgates)

1. The purpose and objectives of the SS project team

• The business case: This is a sentence or two that describes why this project should be
done, why it has priority over other projects, and indicates the strategic business
objective(s) the project impacts.

• The problem statement: This is a short measurable statement about the problem. It
should indicate how long the problem has been going on, be stated as specifically as
possible, describe the gap between the current and desired state, describe the impact of
the problem, and be stated in neutral terms with no blame, perceived solution(s) or
root cause(s).

Warwick Manufacturing Group

Six Sigma Page 15

• Project scope: Scope refers to what the team should focus on but more importantly
what the team should try to avoid. Six Sigma teams often fail when they don’t clearly
define what to work on and what not to work on.

• Goals and objectives: The goals and objectives are what the team should strive to
achieve in the four to six months they exist. Typically, a first wave Six Sigma team
should aim at improving the problem by 50 percent.

• Milestones: Milestones indicate to the team where they should be in the DMAIC
process and when. For example, Define and Measure should take no more than 8
weeks of the project. Analysis should take no more than 6 weeks after Measure.
Improvements should be implemented in the next 12 weeks. As a result of these
milestones, the team should be ready to implement Control at the end of those 12
weeks devoted to Improvement implementation.

• Roles and responsibilities of the project team: There are several roles critical to the
success of the Six Sigma team. First, there is the Champion. The Champion is usually
the process owner who guides the project team strategically but will usually not be a
full-time team member. They assist in picking the team, providing resources, and
removing roadblocks that get in the way of the team doing its work. Second, there is
the team leader, who is called the Black Belt. The Black Belt is responsible for the
day-to-day activities associated with the team, from setting the team agendas, to
keeping the team on track with meeting the specific responsibilities of DMAIC. If the
team leader has organizational responsibilities other than being a team leader they are
called a Green Belt. The Master Black Belt is equivalent to an internal consultant.
They are not full-time members of the team but assist the team with the more technical
aspects of their work on an as needed basis. The rest of the team are called team
members and should be the subject matter experts who will conduct the actual work of
the project.

The following is an example of one company’s view of setting the problem statement:

Warwick Manufacturing Group

Six Sigma Page 16

1. Customer(s) : 2. Customer CTQs :

3. Defect or Variation: I will Reduce 5. Data Needed & Units of Measurement (relate to
defect):

Type(s) of Data:
4. Current Performance & Reduction Goal :
Sources for Measurement
in dpmo / sigma

6. Financials - Potential Benefits: Annualised estimate

7. Project Scope: 8. Potential Team Members

9. Problem Statement & Project Definition:

2. Customers and Requirements

Every project has customers. A customer is the recipient of the product or service of the
process targeted for improvement. Every customer has a need (or multiple needs) from his or
her supplier. For each need provided for, there are requirements for the need.

3. High level process map

To assist a team in creating their high-level process map, the team needs to be mindful of the
suppliers, inputs, process, output, and customers. A high-level process map may be created in
the following sequence:

• Name the process (use nouns).

• Establish the start and stop points of the process.

• Determine the output(s) of the process (use nouns).

• Determine the customer(s) of the process.

• Determine the supplier(s) of the process.

• Determine the input(s) of the process.

Warwick Manufacturing Group

Six Sigma Page 17

• Agree on the five to seven high-level steps that occur between the start and stop points
of the process (use action words like verbs and adjectives).

The diagram below is an example of the final version of a process flow using brainstorming
and post-it notes.

Process Name
Suppliers Inputs Outputs Customers
start

end

6.2.2 Measure

There are two major phases in Measure, namely:

• the creation of the data collection plan; and

• the implementation of the data collection plan

The purpose of the Six Sigma team is to improve effectiveness and efficiency of a process.
Effectiveness applies to the output measures important to the customer and the effectiveness
of suppliers. The efficiency measures refer to what occurs inside the process whether it is the
amount of time, cost, labour, or value occurring between the start and stop points in the
process map. The process map developed in the define stage should be used to look for
opportunities for improvement, identify where defects are found and identify where
measurements need to be put in place.

6.2.2.1 Creation of the Data Collection Plan

The data collection plan has an important role in calculating the baseline sigma. The follow
list includes the areas that should be included in the data collection plan:

• What to measure: the requirements determined in the Define stage of DMAIC.

• The type of measure: Agreement on the type of measure and number of output and
input measures. Typically, there should be two or three output measures, one or two
input measures, and at least one process measure. Using this as a guide, the project

Warwick Manufacturing Group

Six Sigma Page 18

team can determine if they are collecting too much or too little data. Measurements of
the defects or roots causes of the problem should be taken.

• The type of data: There are two types of data. The first type of data is discrete data.
Discrete data is binary, off/on, good/bad, male/female. Continuous data refers to data
that exists on a continuum such as height, weight, minutes, days, length, and so on.
Continuous data is preferred over discrete data because it tells us more about a
process.

• Operational definitions: Agree definitions, for example,

a. CTQ – critical to quality characteristic of a product, service or information that

is measurable;

b. A defective is a unit that fails to meet a customer specification;

c. A unit can be a product, part of a product, sub-assembly, a system, or a

component;

d. A defect is any part of that unit that causes the unit to fail to meet a customer
specification;

e. Defective units may have several defects or families of defects;

f. Common measurements include: defects per unit (DPU); defects per million
opportunities (DPMO), parts per million defective (PPM) or defectives per
million units (DPM).

• Targets/specifications: The target measure is the customer’s ideal performance of the

product or service.

• Sampling: Sampling is the process of taking only a proportion of the total population
of available data, when measuring the entire population would either be too expensive
or takes too much time. The sample must therefore be representative of the larger
population and be taken randomly. A random sample ensures that any one sample has
an equal likelihood of being taken this is important to ensure that the Six Sigma
project team does not introduce a bias in the sample.

6.2.2.2 Implementation of the Data Collection Plan

The second phase is the implementation of the data collection plan to generate the baseline
sigma:

Calculating baseline sigma: There are several methods to calculate baseline sigma. The easiest
way is to determine what a unit, defect, and opportunity is for the process. For example, an
electronic unit is made of 3 circuit boards the following shows the metrics that can be
calculated for this unit:

• At unit level - based on average over last 3 months, 1st time unit pass rate was
20% so the defective rate was 80%. The DPM = 800,000 and sigma=0.66σ. DPM is

Warwick Manufacturing Group

Six Sigma Page 19

given by number of failed units /number of units tested. Sigma is taken from the table
shown in Appendix 1.

• For the three circuit boards that the make up the unit the 1st time board pass rates are
as follows:

o B1 - 39% , defective rate 61% and DPM=610,000 and sigma = 1.22σ

o B2 - 43%, defective rate 57% and DPM=570,000 and sigma = 1.32σ

o B3 - 19%, defective rate 81% and DPM=810,000 and sigma = 0.62σ

o The overall 1st time board pass rate was 35% and therefore the defective rate
was 65% and DPM=650,000 with 1.11σ

• The most useful metric would be the one that gave the most useful information. In the
previous example the metrics measured show that the all areas needs improvement but
by looking at the metrics for each individual board you can identify the board that
requires the greatest improvement and thus makes a good starting point.

It is worth reiterating that the SS methodology assumes that the underlying data is normally
distributed. This is important to remember during both the measure and analysis phase when
data is being collected and measurements made. If it cannot be assumed that the data is
normally distributed then a test for normality ought to be conducted.

Other measurements used may include Process yield, Process mean and standard deviation
and Process capability among many others. Appendix 1 gives a list of all quality tools against
phase in DMAIC.

6.2.2.3 Measurement Systems Analysis

When we measure or collect data, how much of the variation that we see is really due to the
process or part, and how much is due to the measurement system? The measurement system is
a process involving the 6M’s:

Man - do we measure consistently? Will our measurement of a part or Identification of a

defect or categorisation of a query be the same tomorrow as it is today? Does person A
measure or identify or categorise the same as person B Are some people better than others at
measuring or collecting data? Are inspectors properly trained and regularly tested?

Method - Is there a process map, written procedure and detailed instructions, maintenance
plan, regular calibration and certification of gauges, according to industry standards?

Machine / Material - Does the measurement device (gauge) read correctly - what about
accuracy and precision? Do we have the correct or best tools to measure?

EnvironMent - the work culture, physical storage of test equipment, heat, humidity, noise...

Measure - the interaction between all these factors will determine whether we have a
Measurement System that is adequate.

Warwick Manufacturing Group

Six Sigma Page 20

Consider a process with variable data as shown in the following diagram:

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 or VARIANCE or VARIANCE

(via SPC Analysis) (via R&R Study )

σ2TOTAL σ2PARTS σ2MSA

Note: SPC mean Statistical process control and R&R means repeatability and reproducibility

The total observed variation is made up of variation in the process and variation in the
measurement system. If for example we have the following total observed variation where
does the problem lie, the process or the measurement system?

Warwick Manufacturing Group

Six Sigma Page 21

What we see What is really The errors we make

happening when we measure

A
= +

= +

Unit A and B have the same overall distribution i.e. same variation and mean, but they are
made up with different distributions. Unit A has tight measurement variability but wider
process variation compared with Unit B. Problem is how do you know that you have wide
measurement variation, it also means that you could spend lots of time and money improving
the process variation but not actually get better because of the measurement system. The key
elements of a measurement system are therefore: Accuracy and precision.

Accuracy is the difference between the measurement and the part’s actual value and
precision is the variation when measuring the same part repeatedly.

Warwick Manufacturing Group

Six Sigma Page 22

Measurement System

Accuracy Precision

Linearity Bias Stability Repeatability Reproducibility

Operator Operator-Part

Interaction

It is important therefore to attempt to minimise both variation in the process and variation in
the measurement systems. There are a number of tools that can assist in measuring and
consequently reducing such variation.

Tools used in accuracy include SPC, linear regression and bias.

Precision is also referred to as Gauge R&R analysis. Repeatability is the variation due to the
measuring gauge or the variation observed when the same operator measures the same part
repeatedly with the same gauge under the same environmental conditions. Reproducibility is
the variation due to the measurement act or the variation observed when different operators
measure the same parts with the same gauge under different environmental conditions.
There may be differences between operators across all parts or just with some parts and so
reproducibility can further broken down (with ANOVA) into operator/part interaction.

6.2.3 Analyse

There are three main phases in Analyse and these are: Date analysis, Process analysis and root
cause analysis.

6.2.3.1 Data Analysis

Data collected during the measure phase of DMAIC needs to be analysed, particularly if the
team has a goal to improve the effectiveness of some customer’s requirement. The type of
data analysis is dependent on the type of data collected in the measure phase of DMAIC,
discrete (attribute) or continuous (variable).

6.2.3.2.1 Discrete or attribute data analysis

Discrete or attribute data is data collected as pass/fail or go/no-go or is measured in discrete

values. The type of analysis used for attribute data includes:

Warwick Manufacturing Group

Six Sigma Page 23

• Displays of data, for example, Pareto, descriptive statistics, pie charts;

• Process capability – calculate DPM and convert to sigma values using table as shown
in Appendix 1.

6.2.3.2.2 Continuous or variable data analysis

Continuous or variable data is data collected from continuous measurements. The type of
analysis used for variable data include:

• Displays of data, for example, Pareto, descriptive statistics, time series (CUSUM),
scatter diagrams, dot plots, histograms, box plots, gauge R&R, ANOVA, regression
and correlation and control charts.

• Process capability, use Cp, Cpk, Pp and Ppk . These measures indicate whether a
process has a problem with centring or with variation. Cpk can be linked to sigma
values as shown in Appendix 1.

• Hypothesis testing - A statistical method that uses a rigorous approach to

testing an hypothesis against an alternative hypothesis. This is done using statistical
methods in the SS methodology this usually the normal distribution.

• Testing for normality – this a statistical test that test the hypothesis that the data comes
from a Normal population and is a key assumption for many of the analyses
techniques used in SS.

• CUSUM - this is a plot that looks at data as series through time

• Regression analysis - Linear regression is a mathematical statement about the

relationship between two variables

• Correlation - This is a measure of the strength of a linear relationship

between two variables.

• ANOVA - Analysis of variance is a statistical approach to analyzing the

variation between and within sets of data.

Many of these analysis techniques have been covered in the statistics for problem solving
module including: descriptive statistics, discrete and continuous distributions, sampling
and inference (hypothesis testing), ANOVA, Linear regression and design of experiments.

Capability analysis is concerned with measuring how well a process is doing in terms of
potential capability and actual performance. Capability is the best we can do in the short
term and performance is how we are doing in the long term as described in the diagram
below.

Warwick Manufacturing Group

Six Sigma Page 24

1 2
CAPABILITY PERFORMANCE
Short Term Long Term

Pooled std dev Total / overall std dev

compares
How spec range
a much (tolerance) Cp Pp
variability to process
width
how close
process
How
b
centred
centre is to Cpk Ppk
nearest
spec limit

Long term refers to any trends throughout the period and short term refers to identifying
within the trends if there are any trends or relationships i.e. no major outliers. Cp and Pp
compares the specification range to process width regardless of where the process is centred
and is therefore concerned with variation but not centring. Cpk and Ppk measure how close the
process centre is to the nearest customer specification. So if Cp = Cpk then the long term and
the short are the same. Cp, Cpk, Pp and Ppk are given by:

Cp = USL-LSL Pp = USL-LSL
6σP 6σT

and

Cpkl = X-LSL Cpku = USL-X Cpk = min {Cpkl, Cpku}

3σP 3σP
Ppkl = X-LSL Ppku = USL-X Ppk = min {Ppkl, Ppku}
3σT 3σT

The table below gives some rules of thumb for interpreting the four capability measures of
performance.

Cp Cpk Pp Ppk Sigma

Red (Bad) <1.00 <1.00 <1.33 <1.33 <4.5

Yellow (OK) 1.00 – 1.33 1.00 – 1.33 1.33 – 1.67 1.33 – 1.67 4.5 – 5.5

Green (Good) >1.33 >1.33 >1.67 >1.67 >5.5

Warwick Manufacturing Group

Six Sigma Page 25

For example,

1. Cp 1.60, Pp 1.60, Cpk 1.60, Ppk 1.60

This shows a capable in control process.

2. Cp 1.60, Pp 1.20, Cpk 0.40, Ppk 0.30

This shows in the short term poor centring and in the long term continuation of the poor
centring and also an increase in the variation.

3. Cp 0.40, Pp 0.40, Cpk 0.40, Ppk 0.40

This shows that the short term and the long term are the same however there is too much
variation and it is not well centre implying an out of control process

Warwick Manufacturing Group

Six Sigma Page 26

4. Cp 0.40, Pp 0.20, Cpk 0.15, Ppk 0.10

This shows a shift in the mean of the distributions from short to long term. But there is also
too much variation and implies poor process control

Data analysis therefore focuses on analysing the measured data and making judgements about
the results. Consequently the results lead the direction that the team should take in improving
the process. It is unlikely that only one of the techniques would be used in isolation but a
combination of techniques.

6.2.3.2 Process analysis

Process analysis includes creating a more detailed process map and analysing the more
detailed map for where the greatest inefficiencies exist.

6.2.3.3 Root Cause Analysis

The third and most important phase of Analysis is root cause analysis. As stated previously,
SS project team members will likely have their own pet theories about how to improve the
process they work in. While we want to tap into the expertise of the team members, it is also
true that a SS project team must let “data lead the way.” Many teams ignore going through
root cause analysis, jumping prematurely to the Improve phase of DMAIC. When done
properly, the root cause analysis section of the SS project team’s work is the key ingredient to
project success.

There are three important steps for root cause analysis to be done properly. They are:

• The open step: During this phase of root cause analysis, the project team brainstorms
all the possible explanations for current sigma performance.

• The narrow step: During this phase, the project team narrows the list of possible
explanations for current sigma performance.

• The close step: During this phase, the project team validates the narrowed list of
explanations that explain sigma performance.

After analysing all the data and validating the root causes the next stage of DMAIC is
improve.

Warwick Manufacturing Group

Six Sigma Page 27

6.2.4 Improve

If the project team does a thorough job in the root causation phase of Analysis, the Improve
phase of DMAIC can be quick, easy, and satisfying work. There are two Improve tollgates,
namely, generating solutions and selecting solutions.

It is recommended that when implementing solutions, the project team prioritizes the
solutions and implements them one at a time or in groups, immediately following
implementation of the solutions with a recalculation of sigma. This should be done because
many times the goals and objectives of the project team may be achieved without
implementing all the proposed solutions. Tools to aid prioritisation include cause-effect
matrix, FMEA and QFD. Deign of experiments may be used during the improve phase to
screen out those inputs that do not have any effect, to identify interactions between inputs and
to optimize the output (yield).

6.2.5 Control

There are two major phases in the last topic in DMAIC. They are:

• Determining the technical method of control.

• Creating the response plan.

To determine the technical method of control a control selection checklist can be completed.
This checklist contains the following categories:

• 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

The response plan is similar in appearance to the data collection plan. It chronicles the new
process map the team creates as a result of their the most important measures for the new
process, the specifications and targets as verified by the customers of the process, what data
collection forms are used, the control methods chosen by the team (in this process, control
charts), and the most notable process improvements.

6.2.6 Summary

DMAIC was introduced and described as the methodology of the SS philosophy. It is an

improvement methodology that drives improvement of effectiveness and efficiency on
selected projects targeted for improvement.

Warwick Manufacturing Group

Six Sigma Page 28

It addresses how to create the project charter, define the customer, their needs and
requirements, and how to create a high level map of the current process. These steps
constitute the Define phase of DMAIC. The measure phase consists of how to create and
implement a data collection plan where ultimately the project team calculates baseline sigma
performance. The importance of the Analysis phase of DMAIC is stressed where the project
team analyses the data they collected, the process in greater detail, and most importantly,
brainstorms and validates a set of process variables that they believe are the root causes for
current sigma performance. Improve is the next step in DMAIC and if the team does a good
job in Analysis, this step should be relatively easy. Finally, in the Control phase of DMAIC,
the team determines how to technically control the newly improved process and creates a
response plan to ensure the new process maintains the improved sigma performance.

KEY POINTS

• There is 1.5σ shift from the Normal distribution tables used in the SS philosophy

• Six sigma refers to 3.4 DPMO

• The Six Sigma methodology is based on defining a problem, measuring the impact of
the problem, determining root causes, and forming and testing hypotheses.

• The methodology is made up of five steps: Define, Measure, Analyze, Improve, and
Control, known as DMAIC.

• Each step in DMAIC has a series of sub-steps.

• The sub-steps of Define include creating the team’s charter, identifying the customers
of the process, their needs and requirements, and creating a high-level map of the
process.

• Measure includes creation of the data collection plan and implementing that plan.

• Analysis includes analysing the data, analysing the process, and analysing the root
causes for current sigma performance and is the most important step to implement in
project success.

• Improve includes generating and selecting solutions.

• Control includes choosing and implementing a form of technical control over the new
process and creating a Response Plan.

Warwick Manufacturing Group

Six Sigma Page 29

7 Management of Six Sigma

There is a structured approach to managing SS. It originates from the view that successful
companies are driven by the vision and values of their leaders. The inverted pyramid, shown
below, has been used by consultants to indicate the key SS players:

Customer
Green Belts
Black belts
Master Black belts
Champions
Executive leadership

At the bottom of the pyramid is the executive leadership, they are few but crucial for laying
the foundation for the successful implementation. Without commitment from executive there
will be no support from senior management, middle management and so on. The executive
leader selects individuals who will champion SS within specific business across the
organisation.

There are two types of champions, namely, deployment champions and project champions.
Deployment champions work to implement SS throughout their respective businesses.
Project champions at the business unit level as they oversee black belts and focus on SS at the
project level. Project champions perform assessments of the organisation’s capabilities,
benchmark their products and services, develop a cross-functional SS deployment plan and
provide managerial and technical leadership to master black belts and black belts.

Warwick Manufacturing Group

Six Sigma Page 30

Deployment and project champions organise and lead the initialisation, deployment and
implementation of SS across the organisation. They choose specific projects and begin the
task of implementing the tactics and strategies of SS.

The table below gives a comparison of the roles, qualifications and training for champions,
master black belts and green belts.

Qualifications Training Number of

employees
trained

Champions Senior executives and One week of One champion

managers with familiarity of champion training per business
basic and advances group or
statistical tools manufacturing
site

Master black belt Technical degree. Chief Two one-week One per 30 black
engineer level. Mastery of training sessions plus belts. They can
basic and advanced black belt training represent a
statistical tools division

Black belt Technical degree. May be
an engineer with 5 or more
years experience. Mastery
of basic statistical tools
Four one-week One per 100
sessions with 3 weeks employees
between sessions to
apply strategy to
assigned projects.
Project review in2nd,
3rd and 4th sessions.

Green belt Technical and support Two 3 day sessions 1 per 20

background. Their current
jobs are associated with the
problem to be solved.
Familiarity with basic
statistical tools.
with 3 weeks between employees.
sessions to apply
strategy too assigned
projects. Project
nd
review in 2 session.

Master black belts are selected by champions to act as in-house experts and work with
champions to coordinate project selection and training. Master black belts spend all their time
working on SS. Black belts work under a master black belt and apply the methodology to
specific projects; they also spend all their time on SS projects.

Unlike the executive leadership and champions, who decide what gets done, master black
belts and black belts work full time on how to get it done.

Warwick Manufacturing Group

Six Sigma Page 31

Green belts are employees throughout the organisation who use SS as part of their overall
jobs. They focus on projects that tie directly to their day-to-day work.

Overall the success of SS comes down to the implementation of the methodology within an
organisation. High-level management must be involved in the methodology and flow this
down to the workers. It is unlikely to work if external people are brought in to give
mandatory course to all employees. A more subtle approach is required to instil the SS values
as part of the overall working culture of the company.

8 Design for Six Sigma (DFSS)

8.1 Introduction

Design for Six Sigma is a systematic methodology for designing or redesigning products or
services according to customer requirements and expectations. DFSS project teams integrate
characteristics of Six Sigma at the outset of development with a disciplines set of tools.

DFSS has its roots in systems engineering and in systems engineering, management of
requirements guides and drives the entire lifecycle processes. Thus DFSS focuses on
providing a methodology that systematically integrates tools, methods and processes to:

• assess customer needs;

• perform functional analysis;

• identify CTQs

• select the concept design;

• enhance detailed design and processes; and

• produce control plans

It is said that only about 60% of new products launched in all industries are a success and
about 45% of resources allocated to developing and commercialising new products go into
products that are killed or fail to provide adequate financial return. Some companies gave the
following reasons:

• Inadequate market analysis;

• Product problems or defects;

• Lack of effective marketing effort;

• Higher costs than anticipated;

• Competitive strength or reaction;

• Poor timing of introduction;

Warwick Manufacturing Group

Six Sigma Page 32

• Technical or production problems.

Thus DFSS is a systematic methodology that optimises the design process to achieve Six
Sigma performance and avoid some of the problems given above.

8.2 DFSS Methodology

The DFSS methodology begins by finding and analysing the gaps in processes that are
negatively affecting new product performance. It also focuses on customer response to the
product. Once this has been completed the project to tackle the problems can be established.

The process for solving problems is called DMADV i.e. Define, Measure, Analyse, Design
and Verify or sometimes it is called PIDOV i.e. Plan, Identify, Design, Optimise and
Validate.

Essentially these are approaches to designing products, services and processes to reduce
delivery time and development costs, increase effectiveness and better satisfy customers. The
basic procedure is outlined as follows:

• Capture customer requirements;

• Analyse and prioritise requirements;

• Develop design;

• Flow down requirements from the system level to sub-systems, components and
processes;

• Track the product capability at each step;

• Highlight any gaps between requirements and capabilities and make these actionable;
and

• Establish a control plan.

The two methodologies mentioned above have the same objectives and are both rigorous in
nature; their only real difference is in terminology.

Most industrial organisations will have some version of this process and this is usually known
as the Product Introduction Process PIP.

8.3 Difference between Six Sigma DMAIC and DFSS

DFSS is said to be the logical extension of Six Sigma but their initiatives are different. Their
differences include:

• DMAIC is more focussed on reacting, on detecting and resolving problems, while

DFSS tends to be more proactive, a means of preventing problems;

Warwick Manufacturing Group

Six Sigma Page 33

• DMAIC is for products or service that already exist, while DFSS is for the design of
new products, services or processes;

• DMAIC is based on manufacturing processes and DFSS is focussed on marketing,

R&D and design.

• Financial benefits of DMAIC can be quantified more quickly with benefits from DFSS
being more long-term.

• The DFSS team is almost always cross-functional so that the entire project team is
involved in all aspects of the design process, from market research to project launch.

For more detailed information on DFSS and Six Sigma see section 9.

9 References

1. T. Pyzdek, “The Six Sigma project planner” ,McGraw-Hill, 2003.

2. T. Pyzdek, “The Six Sigma handbook” ,McGraw-Hill, 2001.

3. F. W. Breyfogle, J. M. Cuppelo and B. Meadows, “Managing Six Sigma”, J Wiley, 2000.

4. C. M. Creveling, J. L. Slutsky and D. Antis, “Design for six sigma in technology and
product development”, Prentice-Hall 2003.

5. J. Welch with J. A. Byrne, “ Jack, Straight from the Gut” , Warner Brothers Books, 2001.

6. M. Harry and R. Schroeder, “Six Sigma – The breakthrough management strategy”,

Doubelday, 2000.

7. G. Brue, “Design for six sigma”, McGraw-Hill 2003.

8. G. Eckes, “Six sigma for everyone”, Wiley 2003

Warwick Manufacturing Group

Six Sigma Page 34

10 Appendix 1

Six Sigma tables

Yield
DPM Cpk SIGMA Sigma Percent (%)
σST sLT Defect
3.4 1.50 6 4.5 0.00034 99.99966
5 1.47 5.9 4.4 0.0005 99.9995
8 1.43 5.8 4.3 0.0008 99.9992
10 1.40 5.7 4.2 0.001 99.999
20 1.37 5.6 4.1 0.002 99.998
30 1.33 5.5 4 0.003 99.997
40 1.30 5.4 3.9 0.004 99.996
70 1.27 5.3 3.8 0.007 99.993
100 1.23 5.2 3.7 0.01 99.990
150 1.20 5.1 3.6 0.015 99.985
230 1.17 5 3.5 0.023 99.977
330 1.13 4.9 3.4 0.033 99.967
480 1.10 4.8 3.3 0.048 99.952
680 1.07 4.7 3.2 0.068 99.932
960 1.03 4.6 3.1 0.096 99.904
1350 1.00 4.5 3 0.135 99.865
1860 0.97 4.4 2.9 0.186 99.814
2550 0.93 4.3 2.8 0.255 99.745
3460 0.90 4.2 2.7 0.346 99.654
4660 0.87 4.1 2.6 0.466 99.534
6210 0.83 4 2.5 0.621 99.379
8190 0.80 3.9 2.4 0.819 99.181
10700 0.77 3.8 2.3 1.07 98.93
13900 0.73 3.7 2.2 1.39 98.61
17800 0.70 3.6 2.1 1.78 98.22
22700 0.67 3.5 2 2.27 97.73
28700 0.63 3.4 1.9 2.87 97.13
35900 0.60 3.3 1.8 3.59 96.41
44600 0.57 3.2 1.7 4.46 95.54
54800 0.53 3.1 1.6 5.48 94.52
Yield
DPM Cpk SIGMA Sigma Percent (%)
σST sLT Defect
66800 0.50 3 1.5 6.68 93.32
80800 0.47 2.9 1.4 8.08 91.92
96800 0.43 2.8 1.3 9.68 90.32
115000 0.40 2.7 1.2 11.5 88.5
135000 0.37 2.6 1.1 13.5 86.5
158000 0.33 2.5 1 15.8 84.2
184000 0.30 2.4 0.9 18.4 81.6
212000 0.27 2.3 0.8 21.2 78.8

Warwick Manufacturing Group

Six Sigma Page 35

242000 0.23 2.2 0.7 24.2 75.8

274000 0.20 2.1 0.6 27.4 72.6
308000 0.17 2 0.5 30.8 69.2
344000 0.13 1.9 0.4 34.4 65.6
382000 0.10 1.8 0.3 38.2 61.8
420000 0.07 1.7 0.2 42 58
460000 0.03 1.6 0.1 46 54
500000 0.00 1.5 0 50 50
540000 0.00 1.4 0 54 46
570000 0.00 1.3 0 57 43
610000 0.00 1.2 0 61 39
650000 0.00 1.1 0 65 35
690000 0.00 1 0 69 31
720000 0.00 0.9 0 72 28
750000 0.00 0.8 0 75 25
780000 0.00 0.7 0 78 22
810000 0.00 0.6 0 81 19
840000 0.00 0.5 0 84 16
860000 0.00 0.4 0 86 14
880000 0.00 0.3 0 88 12
900000 0.00 0.2 0 90 10
920000 0.00 0.1 0 92 8

Warwick Manufacturing Group

Six Sigma Page 36

Appendix 2

Table of tools split by DMAIC phase.

Tool Define Measure Analyse Improve Control

5S • • • • •

7 (+1) wastes • • • • •

Brainstorming • • • • •

Elevator speech • • • • •

Kaizan • • • • •

Jidoka • • • • •

Kanban • • • • •

Production smoothing • • • • •

Line stop • • • • •

Poka-Yoke • • • • •

Six thinking hats • • • • •

Benchmarking • • • •

Cost of quality • •

Critical to quality • •
CTQ

Cost benefit analysis • •

Confidence intervals • • • •

Affinity diagram • • •

Data displays • • •

Defectives and • • •
defects

Descriptive statistics • • •

Mind Mapping • • •

Normal distribution • • •

Normality test • • •

Pareto analysis • • •

Warwick Manufacturing Group

Six Sigma Page 37

Process capability • • •

Process mapping • • •

Reliability • • •

Tree diagram • • •

Process yield •

Samples and •
populations

ANOVA • •

Cause and Effect • •

analysis

Comparative statistics • •

FMEA • •

Cusum analysis • •

Correlation •

Regression analysis •

SWOT •

Design of • •
experiments

SPC •

Warwick Manufacturing Group