Professional Practice 434

Six Sigma
 Objective

To introduce the principle of Six Sigma (6σ)

To deliver the knowledge of methodologies

To present the implementation of Six Sigma

 Sigma s
• Standard of deviation
• Measure of the inherent variability or of
a particular characteristic of a population
about its mean value (µ), such as some
dimension on a mass-manufactured part.
 Sigma Level
Sigma Level Defect per million Percent defective Percentage yield
opportunities
(DPMO)
1 691,462 69% 31%

2 308,538 31% 69%

3 66,807 6.7% 93.8%

4 6,210 0.62% 99.38%

5 233 0.023% 99.977%

6 3.4 0.00034% 99.99966%

7 0.019 0.0000019% 99.999981%

 Six Sigma
The Genesis
• An approach developed by Motorola during
the 1980s to systematically improve processes
by eliminating defects.
• At Motorola, Six Sigma was used as:
A metric
A methodology
A management system
 Six Sigma
Key Concept
1) Critical to Quality
 Attributes most important to the customers.
2) Defect
 Falling to deliver what customer wants
3) Process Capability
 What the process can deliver
4) Variation
 What the customer sees and feels
 Why Six Sigma?
• Output defect levels lower than 3.4 per million
opportunities.
• Reduction of process variation.
• Improve production process, service delivery
process, administration process, etc.
• Quality improvement program.

Reduction of the cost of poor quality

 Six Sigma Methodologies
• Types of Methodologies:

 DMAIC
Used for projects aimed at improving existing business
process

 DMADV
Used for projects aimed at creating new product or
process designs
 Six Sigma Methodologies
DMAIC
Phase 1: Define (D)
 Who are the customers and what are their priorities?

Phase 2 : Measure (M)

 How is the process measured and how is it performing?

Phase 3: Analyze (A)

 What are the most important causes of defects?

Phase 4: Improve (I)

 How do we remove the causes of the defects?

Phase 5: Control (C)

 How can we maintain the improvements?
 Six Sigma Methodologies
DMADV
Phase 1: Define (D)
 What problem can the new invention solve?

Phase 2 : Measure (M)

 Measure the technical requirement and specification?

Phase 3: Analyze (A)

 What are the process options that meets the customer needs?

Phase 4: Design (D)

 How do you design the process to meet customer needs?

Phase 5: Verify (V)

 How do you verify and test the design, assess performance and ability?
 Business Management
• Six Sigma development is Evolutionary not Revolutionary.
Organizational Infrastructure:

Champions
• Leaders in six sigma tools
• Promoting and leading the company’s Six Sigma program

• Responsible for setting qualities strategies and

deployment methods

• Assume full-time responsibility for leading and consulting

• Trained in data collection and analysis tool

• Assist in immediate superior

• Trained in Six Sigma methodology

• Assist in immediate superior
 Engineering Applications

Industry Example of Six Sigma Applicability

Automotives • Enhances supplier quality

• Reduces manufacturing defects at each
stage
• Reduces time to manufacture
• Reduces design defects

Engineering Parts • Reduces manufacturing cycle time (time of

Manufacturing order to delivery)
• Improves customer service performance
scores
• Reduces scarp of poor quality
 Success Stories
Six Sigma
Company Metric/ Measures Benefit/Savings

Motorola (1992) In-process defect levels 150 times reduction

Motorola (1995) Financial $15 billion over 11 years

General Electric Financial $ 2.0 billion in 1999

Honeywell Financial $ 1.2 billion

Raytheon Financial $ 1.8 billion in first four years

Lockheed Martin Saving $ 5.0 billion since 1990

ITT Industries Saving $ 135 million in a $ 4.7 billion

project
Xerox Reduction of cost $ 2.0 million
 Six Sigma Challenges
“Sick” Sigma

On Individual Level

Perform observational methods and

experimentation in the scientific context

Two-level factorial experiments and

graphical methods for the analysis of these
experiments.
 Six Sigma Challenges
“Sick” Sigma

On Cooperate Level

Resistance to change

Inadequate tools

Poor communication
 Six Sigma Failures
“Sick” Sigma
Although powerful, Six Sigma may fail when some critical issues
are neglected.

• Infrequent team meetings

• The wrong people assigned to projects

• Projects team that are too large

• Poor communication of initiatives and progress

 Evolutions are a
lengthy and painful
process
The End
Q & A Session