Six Sigma. Six Sigma What is Six Sigma? Philosophy: We should work smarter, not harder. Business strategy: We gain a competitive edges in Quality,

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Presentation transcript:

Six Sigma

What is Six Sigma? Philosophy: We should work smarter, not harder. Business strategy: We gain a competitive edges in Quality, Cost, Customer Satisfaction. Statistical measurement: We measure defect rates in all processes through an expanding statistical concept.

What is Six Sigma? Sigma is a statistical measure of variation from the average For a manufacturing process, the sigma value is a metric that indicate how well that process is performing. The value of 1 sigma is one standard deviation from the mean.

Six Sigma Approach Combines some of the best technique of the past with recent breakthroughs in management thinking and plain old common sense. The term ‘Six Sigma’ is a reference to a particular goal of reducing defects to near zero.

Benefits: The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty.

Goals of Six Sigma To achieve Zero Defect (3.4 PPM) in all outputs of the company through: Measurement of defects in six sigma scale Process re-design to improve capability Involvement of all Employees

Six Sigma Belts: Black Belt: Someone who either coaches or actually leads a Six Sigma team. Master Black Belt: A person who coaches a large number of Six Sigma teams. Green Belt: Employees who have received basic Six Sigma training.

Calculating Sigma Step 1: Calculating Defects per Unit (DPU) DPU = Total number of defects Total number of units

Calculating Sigma Step 2: Calculating Defects Per Million Opportunities for error (DPMO) DPMO = DPU X 1,000,000 No. of opp. for error

Calculating Sigma Step 3: Correlate the DPMO to the chart showing correlation between “defects per million opportunities” and sigma levels.

SIGMA CONVERSION CHART Sigma and it’s DPMO SIGMA CONVERSION CHART Sigma (σ) value Defects per million opportunities (+/-) 2 308, 537.0 (+/-) 3 66, 810.0 (+/-) 3.5 22, 750.0 (+/-) 4 6, 210.0 (+/-) 4.5 1,350.0 (+/-) 5 233.0 (+/-) 5.5 32.0 (+/-) 6 3.4

Tolerance UCL USL LCL LSL X +3σ +6σ -3σ -6σ

N number of CTQs (Critical To Quality parameters) Case Example STEP ACTION EQUATION CALCUL. 1. How many units were put through the Process? -- 1283 2. How many came out error free? 1138 3. Compute the yield of the process. step 2/ step 1 0.8870 4. Compute the defect rate. 1 – step 3 0.113 5. Compute the number of potential things that could create a defect. N number of CTQs (Critical To Quality parameters) 24

Slightly above average performance Case Example STEP ACTION EQUATION CALCUL. 6. Calculate the defect rate per CTQ characteristics Step 4/ step 5 0.0047 7. Compute the defects per million opportunities Step 6 X 1,000,000 4709 8. Convert the DPMO into sigma value using the sigma conversion chart -- 4.1 sigma 9. Draw conclusions Slightly above average performance

Six Sigma Tools: There are two six sigma methodologies: DMAIC (define, measure, analyze, improve, control) DMADV (define, measure, analyze, design, verify)

Six Sigma Tools: For existing processes D Define M Measure A Analyze I Improve C Control

Six Sigma Tools: For new processes D Define M Measure A Analyze D Design V Verify

The Journey Six Sigma aims at continual improvement through the journey starting from the existing sigma level, gradually moving towards six sigma level and beyond.