1. Six Sigma - Understanding basic concepts A learning from 6σ Black Belt training

2. Business Relevance of 6σ (Old Products & Services)
Substitution
Improvement
(in Qly, Cost, Del & Serv.)
Govt.
Policies
Competition
Maintenance
(Old Products & Services)
Customer

3. Gaps to be addressed continuously
Gap analysis – Do’s & Needs
Quality
Supplier
Defect Free
Needs
Customer
Delivery
Do’s
Cycle Time
Price
Cost
Gaps to be addressed continuously

4. Six sigma – Simple concept
6 σ is a level of performance that reduces the defects in products & services significantly
A set of statistical tools that helps to measure, analyse, improve and control processes.
A commitment to customers to achieve an acceptable level of performance
Mind Set + Tool Set = Six σ

5. 6 Sigma Theme Customer focussed Processes are key drivers
Fact driven and Proactive for creativity
Result oriented - demands financial analysis to verify gains

6. 6 Sigma Theme
Voice of Customer (VOC): Specs decided by customers (Dependent variable, say Y)
- Response time; TAT; Breakdowns; Product performance, waiting time at ATM/counter etc.
Voice of Process (VOP): Variability of a process; Process variations cause defects (Independent variable, say x)

7. Process should be with minimum variability
6 Sigma Quality Theme
Six Sigma Quality
Hitting the
Target
(Centralise the
Process)
Elimination of
Process variability
Process should be with minimum variability
and on the target

8. What does 6 Sigma do? Y y y = f(xi) Statistical problem
Statistical solution
Real life problem Y y
y = f(xi)
Real life solution

9. 6 Sigma Steps - RDMAIC Step 1 Recognition Step 2 Define Step 3 Measure
Analyse
Step 5
Improve
Step 6
Control

10. 6 Sigma Steps - RDMAIC Y= f (xi) Step 1
Recognition
To identify the major business issues
To recognise key processes that need improvement
Areas that need break throughs
Identify critical to customer (CTC)
Drill down to CTQ (translating expectations to parameters);
Define specs, UL & LL, Targets
Y= f (xi)

11. 6 Sigma Steps - RDMAIC Step 1 Tools generally used Recognition
QFD Matrix
Importance gain matrix
Project selection criteria
high gain
low hanging fruits
Urgency
Efforts required

12. 6 Sigma Steps - RDMAIC Step 1 Define the key requirements to customer
Recognition
Define the key requirements to customer
Customers know their language
Listening to customers means understanding their needs.
Drill down the CTC
Step 2
Define
Define step will deliver
Project Chartering
(Goal, Milestone, Roles)
Process Mapping (SIPOC model)
Customer say… Engineers say..
Long life ,000 Hrs life
Reliable MTBF
Comfort cooling ± 1 Deg C

13. 6 Sigma Steps - RDMAIC
Input, Process and output measures are to be defined
Measure process stability
Measure repeatability and reproducability
Measure current process capability
Step 1
Recognition
Step 2
Define
Step 3
Measure
Standard softwares are available
to process the data

14. 3 Sigma process X 1 1 1 1 1 1 99.78% 95.44% 68.26% Total surface
Upper
Control
Limit
Total surface
area 100%
Lower
Control
Limit 1 1 1 1 1 1 X

15. Customer perceive and register the variance more than average

16. 6 Sigma process (statistical vision)
Upper
Spec.
Lower
Spec. 6 6 X

17. Defects vs Defectives Defects
Countable failures that are associated with a single unit.
A single unit can be defective but may contain more than one defect.
Defectives
Completed units that are classified as bad or not meeting specs. Whole unit is said to be of defective.

18. Terminologies used DPU DPU= Defects / unit DPMO DPU x 1,000,000 DPMO =
Opportunities per unit
Defects =
x 1,000,000
Opportunities
= Defects per million opportunities

19. 6 Sigma process (measures)
Sigma Defects per Million
(DPMO)
2 308,537
,807
,210
% non-defective
69.1%
93.32%
99.379% % %
24% 6%
0.6%
0.023%

20. 52 defects, 250 AMC proposals, 4 defects opportunities / proposal
Example 1 :
52 defects, 250 AMC proposals, 4 defects opportunities / proposal
DPMO = [(52)/ (250*4)] X
= 52,000 = 3.1 Sigma level
Traditional approach
5 applications were rejected
(contains 52 defects)
5/250 = 2% rejection
Example 2 :
99 defects, 750 products, 150 defects opportunities /product
DPMO = [(99)/ (750*150) ]X
= 880 = 4.65 Sigma level
Traditional approach
10 products were rejected
(contains 99 defects)
10/750 = 1.33% rejection

21. Software (Minitab) outputs – some screens…..

22. Software (Minitab) outputs – some screens…..
Data follows normal distribution

23. Software (Minitab) outputs – some screens…..
Short term
Long term

24. 6 Sigma Steps - RDMAIC Step 1 Recognition
Identify cause & effect [ y = f (x) ]
Use analytical tools to vital few
Short list causes that are vital few which can be taken to improve phase
Step 2
Define
Step 3
Measure
Step 4
Analyse

25. 6 Sigma Steps - RDMAIC Identify and Quantify and Identify
formulate causes
Quantify and
verify causes
Identify
Opportunities
process mapping
FMEA
QFD
Process Capability
Stratification
Seven QC tools
Why-why analysis
Brainstorming
Hypothesis tests
DOE
Identify success factor
List of opportunities in vital few
Y = f(x1, x2, x3, x4, x5,……..xn)
This s the function that models and quantifies the relationship between X & Y

26. 6 Sigma Steps - RDMAIC Step 1 Recognition To find out vital causes (x)
Optimal value of causes
Verify optimal setting with set tolerances
Step 2
Define
Step 3
Measure
Step 4
Analyse
DOE is one of the tools used to establish relationship between inputs & outputs
Step 5
Improve

27. 6 Sigma Steps - RDMAIC Step 1 Recognition
Measurement System validation for inputs
Process capability
Implementation of SPC Charts
Step 2
Define
Step 3
Measure
Step 4
Analyse
Step 5
Improve
Step 6
Control

28. FMEA
FMEA is an analytical technique used by designers, engineers and analysts to ensure that all design or manufacturing or process failure modes have been considered and are assessed with a view of elimination.
System FMEA
Process FMEA
Product/Design FMEA
What is a failure?
A component or system not meeting or not functioning as per design (Ex. Break failure)
What is a failure mode?
The manner in which a component or a system failure occurs (Ex. leakage of break oil )
What is an Effect?
The impact or consequence of failure (vehicle meeting accident)

29. (Risk Priority Number)
FMEA
Degree of chances that it gets detected before it goes to customer
Severity of effect? (Scale 1-10)
Possibility of failure? (scale 1-10)
Possibility of detecting? (scale 1-10)
Severity of impact
Prob. of occurrence
RPN
(Risk Priority Number)
Detectability 2 4 64
(Max 1000, Min 1) 6 9
216
Work on high RPN
Reduce severity, rarely changes
Reduce prob of occurrence (Have parallel system, hand break)
Improve detectability (process, tests, reliability)

30. QFD Y Tool used priorities the areas to focus. Correlation between X’sM L Y y1 y2 y3 y4 y5
Importance X1 X2 X3 X4 X5 5 3 2 6 2 4 3 4
Customer Requirements 4 3 2 2 3 7 1 3 1 1 5 1 57 32 56
Proj to focus

31. DOE
Structured proactive process for finding relationship between input and output factors.
Multiple input factors are considered and controlled simultaneously to ensure that the effect on the output is significant.
Why DOE?
To find out vital few Xs that influence the quality of Y
To identify the best combination of values of Xs to get the optimal value of process performance

32. Sigma level - Customer focus
Sell & forget 1
Know what happens to sold products 2
Inspect before despatch (QC) 3
Inspect the process (Process monitoring)- QC 4
Control the process 5
Understand the process & control it (SPC) 6
Re-engineer the process in line with customers’ expectation (RDMAIC) 7
Right product meeting expectations (RDMAIC) 8
Understand customer requirements & design prod / service features defect free (Design for 6 σ)

33. Sigma level of different sectors
Tax advice
Prescription
writing
Restaurant bill
Payroll processing
1000,000
Air Lines
Baggage handling
100,000
10,000
Best in Class
1000
Air Lines
safety
Defects in
PPM
100 10 1 1 2 3 4 5 6 7

34. Some references :
Six Sigma-Michael Harry
Six Sigma way- Peter Pandey
What Six Sigma – Peter Pandey
Power of Six Sigma – Subir Choudhuri
Lean Six Sigma- Michael George
Lean Six Sigma Pocket book – Michael George
Web site

35. Thank you