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1Notes:1SixSigma-AnOverview(SixSigma-)2Notes:2SixSigmaANOVAY=f(x)X'sY's3Notes:3ModuleObjectives()•WhatisSixSigmaQuality?(SixSigma?)•WhataretheManyFacetsofSixSigma?(SixSigma)•WhySixSigma?(SixSigma?)•WhataretheBenefitsofSixSigma?(SixSigma?)•ReviewofBasicConcepts()Y=f(X)4Notes:4Acomprehensiveandflexiblesystemforachieving,sustaining,andmaximizingbusinesssuccessFasterandMorePredictablythananyotherknownmethod.()12345SixSigmaEffortsTraditionalEffortsWhatisSixSigma?(SixSigma)5Notes:5IRS-TaxAdvice()SigmaLevel1,000,000100,00010,0001,000100101PPMRestaurantBills()PayrollProcessing()PrescriptionWriting()BaggageHandling()SurgicalProcedures()01234567AsigmaratingindicatestheabilityofaprocesstoperformwithoutdefectsWhatDoesSixSigmaMeaninDailyLife?(6Notes:64-6%ofSalesTheCostofPoorQualityTypicallyFallsBetween25-35%ofTotalSalesLostOpportunity()TraditionalQualityCostsAdditionalCostsofPoorQualityRejectsScrapInspectionReworkLongcycletimes()Expeditingcosts()Lostsales()Latedelivery()Lostcustomerloyalty()Excessinventory()CostofPoorQualityIceberg()7Notes:7TheHistoryofSixSigma(SixSigma)•MotorolaSixSigma•SixSigma…•GeneralElectric•TexasInstruments•AlliedSignal•SeagateTechnology•DuPont•AmericanExpressHammer,M.(2002).ProcessManagementandtheFutureofSixSigma:MITSloan8Notes:8TheManyFacetsofSixSigma(SixSigma)Symbol()Term()Goal()Metric()Benchmark()Philosophy()Method()Tool()9Notes:9SixSigmaasaSymbol,Term,andMetric(SixSigma)•Sigmaisthe18thletteroftheGreekalphabet.()•Theterm“sigma”isusedtodesignatethedistributionorspreadaboutthemean(average)ofanyprocessorprocedure.(“sigma”)•Forabusinessormanufacturingprocess,thesigmavalueisametricthatindicateshowwellthatprocessisperforming.Thehigherthesigmavalue,thebetter.σσ10Notes:10SixSigmaasaGoal(SixSigma)2308,537366,80746,210523363.4σPPMProcessCapabilityDefectsperMillionOpp.(Shifted1.5σ,long-term)11Notes:11SixSigmaasaPhilosophy(SixSigma)ThephilosophyofSixSigmaistoapplyastructured,systematicapproachtoachieveoperationalexcellenceacrossallareasofyourbusinesswithanunderstandingthatdefect-freeprocessesresultfrombreakthroughimprovement.12Notes:12SixSigmaasaVision(SixSigma)ThevisionofSixSigmaistodelightcustomersbydeliveringworld-classqualityproductsandservicesthroughtheachievementofSixSigmalevelsofperformanceineverythingyoudo.SixSigmaSixSigma13Notes:13SixSigmaasaBenchmarkIssueProcessAProcessBBeforeYieldDPUStepsStepsDPUStepYieldSigma95%96%0.05130.040883830.00060.00050.99940.99954.734.885%87%0.16250.13932862860.00060.00050.99940.99954.754.8AfterBeforeAfter?14Notes:14SixSigmaasaTool(SixSigma)•ProcessMapping()•LeanTools()•HypothesisTesting()•ControlPlans()•MultipleRegression()•SPC•ProjectManagement()•Andmanymore….(….)15Notes:15Is99%GoodEnough?(99%)99%(2.8Sigma)99.99966%(6Sigma)¾¾15¾5,000¾¾200,000()¾¾¾1¾1.7¾¾68()¾34116Notes:16SixSigmaMethodologyRecognize()Measure()Analyze()Improve()Control()Realization()Define()17Notes:1730–50(X’s)8-15X’s4-8CriticalX’s3-6CriticalX’sVariableReduction()ProcessMapFishboneDiagramC&EMatrixFMEAMulti-VariStudiesPoka-YokeSPC18Notes:18SixSigmaTheSixSigmaProject(SixSigma)PracticalProblemsConvertedtoStatisticalProblemsGetAPracticalSolutionNeverHavetoFixAgain19Notes:19HarvestingtheFruitofSixSigma(SixSigma)SweetFruitDesignforManufacturability()ProcessEntitlementGroundFruitLogicandIntuition()LowHangingFruitBasicTools()BulkofFruitProcessCharacterizationandOptimization()20Notes:20WhySixSigma?(SixSigma)•=••=••ContinuousImprovement=Survival•Thecompetitionisusingcontinuousimprovement•Breakthrough=Dominance•GettingbetterfasteristhekeyProcessBreakthrough()GettingBetter,Faster()Improvementiscriticaltosurvival.Worldwide,thestandardsforqualityandproductivityarechanging.Survivalisdependentoncontinualimprovement.Thekeytobeingthebestinyourindustrytoimprovefasterthanchangesincostandservicedemands.Improvementsmustbeinallareas,planning,design,andexecution.Gettingbetter,fasterwillprovideacontinuousadvantageoverthecompetition.21Notes:21BenefitsofSixSigma–Organization(SixSigma)•ReductionofDefects()•LowerCosts()•HigherCustomerSatisfaction()•ShorterCycleTime()•PredictableProcesses()•CultureChange()•FocusonQuality,theCustomerandDoingitRight•PrideinBeingtheBest•StandardizationforProblemSolving()•HighlyTrainedWorkforce()•CommonLanguage()•Organizational,InstitutionalMemory()22Notes:22BenefitsofSixSigma–Personal(SixSigma)•BlackBelt/GreenBeltTraining•MakesYourJobEasier()•IncreasesYourEffectiveness()•EnhancesYourCredibility()•QuantifiedSuccessesinHighVisibilityProjects•FocusedWorkWithStrongManagementSupport•Reduction/EliminationofWhack-a-moleActivities(/“”)23Notes:23BasicSixSigmaConcepts(SixSigma)•Variation()•StandardDeviation–SigmaLevel(SigmaLevel)•LongTerm&ShortTerm(&)•Shift&Drift()•Inspection–NotaSolution()•FocusofSixSigma(SixSigma)•CTx(CriticalTo…)•HiddenFactory()•Measurement/Metrics(/)•Capability()•Entitlement()•Defects&Defectives(&)•RolledThroughputYield(RTY)()24Notes:24SigmaisaMeasureofVariationandQuality(SixSigma)()()(LSL)(USL)(T)()()3-Sigma()25Notes:25ASixSigmaProcess(SixSigma)6-Sigma()Inasixsigmaprocessyoucanfitsixstand