SixSigmaOverview(6GreenBelt–SIXSIGMAOPERATIONAL-FSG-SM01RevB2GreenBeltTrainingObjectivesTolearnthesystematicapproachtoSixSigmaproblemsolvingMbeforeAbeforeIbeforeCàààTounderstandandeffectivelyutilizetheM.A.I.C.toolkitM.A.I.C.TounderstandhowyouwillbeaffectedbyapplicationoftheSixSigmamethodologyFSG-SM01RevB3SixSigmaConceptDefineMeasure,Analyze,ImproveandControlExplainthedefinitionandscopeofGreenBeltandBlackBeltDefineKPIVandKPOV“”“”ExplainhowprocessoutputsareafunctionoftheinputsExplainthevalueofmeasurement(KPIV)(KPOV)ExplainthevalueofmeasurementFSG-SM01RevB499%GoodisNotGoodEnough99%5,000incorrectsurgicalprocedureseachweek500020,000lostarticlesofmaileachhour20000Noelectricityforalmost7hourseachmonth7Unsafedrinkingwaterforalmost15minuteseachday15FSG-SM01RevB571,000,000100,00010,0001,000100101PPM••RestaurantBillsDoctorPrescriptionWritingPayrollProcessingOrderWrite-upJournalVouchersWireTransfersAirlineBaggageHandlinglDomesticAirlineFlightFatalityRate(0.43PPM)Best-in-Class345621)(140,000PPM)FSG-SM01RevB6?Vision:Philosophy:Vehiclefor:CustomerfocusBreakthroughimprovementContinuousimprovementPeopleinvolvementAggressivegoalMetric(standardofmeasurement)MethodFSG-SM01RevB7SixSigmaVisionTheVisionofSixSigmaistodelightcustomersbydeliveringworld-classqualityproductsthroughtheachievementofSixSigmalevelsofperformanceineverythingwedo,,,FSG-SM01RevB8SixSigmaPhilosophyThePhilosophyofSixSigmaistoapplyastructured,systematicapproachtoachievebreakthroughimprovementacrossallareasofourbusiness.FSG-SM01RevB9SixSigmaPhilosophy:TechnologyCapabilityOrganizationPeopleProcesses•Businesssurvivalisdependentuponhowwellwesatisfyourcustomers••Customersatisfactionisafunctionofquality,price,anddelivery•,.•Quality,cost,andpromptdeliveryaredependentuponcapability•,FSG-SM01RevB10What’stheStrategy?Knowwhat’simportanttotheCustomer(CTQ’s)ReducedefectsCenteraroundtargetReduceVariationFSG-SM01RevB11BreakthroughStrategySixSigma-SixSigmaEnablesBreakthroughLevelImprovement!12345Theproblemwithcontinuousimprovementsastheonlygoal,OrganizationseesimprovementBUTlosesthegame.TimeinYearsStandardApproaches•Kaize••LeanManufacturing••Re-engineering••TypicalTQM••CurrentTools•ImprovementBreakthroughStrategyTrained&DedicatedIndividualsAnalyticalExpertise70%ImprovementperProject70%SixSigmaFSG-SM01RevB12QualityBreakthroughTimeRejectRateSpecialVariationHistoricalLevel(m0)()OptimumLevel(m1)(1)NaturalVariationunderμ0NaturalVariationunderm1m1(3σ0)(3σ1)FSG-SM01RevB13ProcessVariationCausesA“HiddenFactory”IncreasedCost–LostCapacity“”,Eachdefectmustbedetected,repairedandplacedbackintheprocess.Eachdefectcoststimeandmoney.,.YieldAfterInspectionorTestReworkReworkHiddenFactoryNOTOKOperationOperationInputsInputsInspectInspectFirstTimeFirstTimeYeildYeildOKTime,cost,people,.CustomerQuality90%CustomerQuality90%90%90%TheHiddenFactoryFSG-SM01RevB1466%66%isnot90%...whynot?isnot90%...whynot?66%,66%,90%?90%?123RolledYield81%73%466%=90%Yield90%Yield90%Yield90%Yield90%Yield90%Yield90%Yield90%Yield90%Yield90%YieldUsingFinalTestfirsttimeyieldignoresthehiddenfactory.Finaltestperformanceisafunctionofinspection/testorprevention.,/.RolledYieldvs.First-TimeYieldYieldAfterInspectionorTestReworkReworkHiddenFactoryNOTOKOperationOperationInputsInputsInspectInspectFirstTimeFirstTimeYeildYeildOKTime,cost,people,.CustomerQuality90%CustomerQuality90%90%90%FSG-SM01RevB15FormulastoKnowDPU(Defectsperunit)=Defects/Unit=/PPM(DefectsperMillionUnits)=Defects/Unitx106=/x106TOP(TotalOpportunities)=Units*Opportunitiestomakedefects=*DPMO(DefectsperMillionOpportunities)=Defects/TOPx106RTY(RolledThroughputYieldThelikelihoodthatanygivenunitofproductwillcontain0defectsYRT=RTY=YieldProcess(1)xYieldP(2)x...…YieldP(finalinspection)nYRT=RTY=(1)x(2)x...…nMeasures:FSG-SM01RevB16Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-per-milliondefective,andtheprobabilityofafailure/error..Sigma,2308,537366,80746,210523363.4ssPPMPPMProcessCapabilityProcessCapabilityDefectsperMillionOppFormulastoKnowFSG-SM01RevB17Whatdoesa6sigmaprocesslooklike?6mAverageDeviationfromMean1sTUSLp(d)p(d)123456σ3s3sThisisa6SigmaProcessFSG-SM01RevB18WhatisthisSigmashift??Iftheinitialdataweregivenas3σshort-term,theconversiontolong-termwouldbe:3σ,:TheIndustryStandardistoreportaprocessasshorttermSigmaforbenchmarkingpurposes..3s-1.5s=1.5sShort-TermSigmalevelShiftFactorLong-TermSigmalevelLSLUSLShort-Term:1350ppmLong-Term:66810ppm1.5s3sLong-TermCapability1.5sShort-Term:1350ppmLong-Term0ppmShort-TermCapabilityFSG-SM01RevB1999.99966%Good(6Sigma)20,000lostarticlesofmailperhour20000Unsafedrinkingwaterforalmost15minuteseachday155,000incorrectsurgicaloperationsperweek5000Twoshortorlonglandingsatmostmajorairportseachday200,000wrongdrugprescriptionseachyear2000000Noelectricityforalmostsevenhourseachmonth7()Sevenarticleslostperhour7Oneunsafeminuteeverysevenmonths1.7incorrectoperationsperweek1.7Oneshortorlonglandingeveryfiveyears68wrongprescriptionsperyear68Onehourwithoutelectric