Have FAITH in Six Sigma - the FAITH model for effective Six Sigma deployment.
By Dr Roy Rimington, Lecturer, NgeeAnn Polytechnic
ABSTRACT
Many organisations, both in the public and private sectors of industry and service have
recognised the need for continual quality excellence. This approach now forms the basis
of customer and certification requirements. Six Sigma is rapidly gaining acceptance as a
vehicle to affect continual improvement in ISO 9001: 2000, QS 9000, Cost of Quality
and award model such as SQA. In addition to the material and labour savings which flow
directly to the bottom line, a company engaged in a Six Sigma programme can expect to
see improvements in customer satisfaction, capacity, process flow, output and
product/service reliability, reduced defects, work in progress and cycle times.
This paper examines the factors for effective deployment of a Six Sigma programme. To
illustrate the key ingredients, the author will introduce the FAITH model. Also discussion
will take place on the main stages of the Six Sigma programme and the level of
commitment required by senior management. The author will also describe how as a Six
Sigma Champion in his last company (Siemens Telecommunications) significant
achievements resulted.
Defining Six Sigma
The term sigma is taken from a letter in the Greek alphabet  and is used in statistics as a
measure of variation. The fundamental objective of Six Sigma is customer satisfaction
through continuous improvement in quality. For a business or manufacturing process, the
Sigma value is a metric that indicates how well that process is performing. The higher the
Sigma value within specification limits, the better. When we say a process is Six Sigma,
we are saying it is best-in-class. However, only when all the processes are of Six Sigma
level can we say that the organisation is an overall Six Sigma World - Class beater.
Six Sigma improvement was an expression created by Motorola in the early eighties as a
synonym for their quality programme. If you have a process according to the normal
distribution theorem of Gauss, then the mean average value and standard deviation
(sigma) are well defined parameters. Under certain conditions nearly 100% (exactly:
99.99966%) of all opportunities are covered in the range of 6 x Sigma. Or in other words:
out of an amount of 1 Million opportunities only 3.4 defects can be found. This is a
theoretical limit for practically attainable quality.
More important as the statistical calculation is the philosophy behind this theory. Here
Six Sigma means the improvement or design/redesign of business processes to meet
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exactly customer requirements, to offer products, which are 100% compliant to the customer related – specifications, produced at minimal costs.
Sigma measures the capability of the process to perform defect-free work. A defect is
anything that results in customer dissatisfaction. With Six Sigma the common
measurement index is "defects per unit," where a unit can be virtually anything - a
component part, piece of material, line of code, administrative form, time frame, distance,
etc. The sigma value indicates how often defects are likely to occur. As sigma increases,
cost and cycle time go down while customer satisfaction goes up.
What is the difference between 3 and 6 sigma?
3 Sigma
 1.5 misspelled words per page in a book
 20,000 lost articles of mail per hour
 Unsafe drinking water for almost 15 minutes each day
 5,000 incorrect surgical operations per week
 Two short or long landings at most major airports each day
 200,000 wrong drug prescriptions each year
6 Sigma
 1 Misspelled word in all the books in a small library
 Seven articles lost per hour
 1.7 incorrect operations per week
 One short or long landing every five years
 68 wrong prescriptions per year
Today many organizations operate between 2 and 3 sigma.
Basic Human Processes are 4 Sigma At Best ...
Origins of Six Sigma
The origins of Six Sigma as a quality improvement approach in the 1980’s can be traced
to the American electronic giant Motorola, where a goal of improving all products –
goods as well as services – by an order of magnitude (e.g. a factor of ten) within five
years was established. This provided an important focus on the improvement rate and in
particular, that simply ‘‘better’’ may not be sufficient, but that the critical consideration is
that of becoming more better quickly. At Motorola, Six Sigma clearly focused resources
including human effort, on reducing variation in all processes, which included
manufacturing processes, administrative processes and all other processes.
Success at Motorola quickly became apparent, and from 1987 to 1997 Motorola achieved
a fivefold growth in sales with profits climbing nearly 20% per year and cumulative
savings at $US14billion. Motorola also became the first winner of America’s Malcolm
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Baldrige National Quality Award in 1988. Other companies soon became interested in
the Six Sigma programme, and were able to demonstrate good results. For example,
General Electric saved $US1 billion over a two year period and AlliedSignal achieved
savings of $US2 billion during a five-year period. One of five key reasons cited by Hoerl
(1998) for the success of Six Sigma was “the big dollar impact”. The other four reasons
cited by Hoerl for Six Sigma success are: value placed on understanding and satisfying
customer needs, emphasis on a quantitative and disciplined approach to process
improvement, the manner in which it combines right projects with the right people and
tools, and continued top management support and enthusiasm.
Difference of Six Sigma from other quality programmes
"This is not about sloganeering or bureaucracy or filling out forms, it finally gives us a
route to get to the control function, the hardest thing to do in a corporation."
– Jack Welch, CEO General Electric
In the quest for Business Excellence, Six Sigma should be viewed more as a business
than as a quality program. Undertaking a Six Sigma improvement programme does not
undermine the value of any existing quality initiatives. Six Sigma is an evolutionary
phase of a company's quality strategy, serving to further enhance the results of existing
programmes. Six Sigma programmes leverage the last under utilized assets of the best
managed corporations - their intellectual resources. While many corporations have
undertaken numerous quality improvement programmes, most fail to deliver what Six
Sigma consistently identifies as tangible and quantifiable increases in shareholder value.
Other systems for measuring quality have traditionally focused on the cost of quality, but
with Six Sigma, the belief is that quality is free, in that the more you work towards zerodefect production, the more return on investment you'll have. Also, the Six Sigma method
allows us to reduce things to a common denominator - defects per unit and sigma. This
provides us with a common language and the ability to benchmark ourselves against like
products, processes and practices. Only then can we discover new ways of doing things
that helps the business.
Business perspectives of Six Sigma
"Although Six Sigma was originally designed for manufacturing, it can be applied to
transactional services. One obvious example is in making sure the millions of credit card
and other bills GE sends to customers are correct, which drives our costs of making
adjustments. One of our biggest costs in the financial business is winning new customers.
If we treat them well, they will stay with us, reducing our customer-origination costs."
- Dennis Nayden, President of GE Capital
In every aspect of an organisation from manufacturing to delivery, from human
resources to customer services, from taking a phone call to transportation; any place can
involve Six Sigma.
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"Six Sigma programmes simultaneously benefit both the profitability of a company and
its sales growth by enabling it to take market share as a preferred supplier in its industry.
The benefits of Six Sigma are multi-faceted; Six Sigma drives top line growth, increases
operating margins, expands cash flow, reduces working capital requirements and capital
spending needs, frees up additional production capacity and enhances growth when the
economy is not doing well by improving a company's prospects of becoming a
customer's preferred supplier." - Prudential Securities
Customers form the base of today's world market, and are sending a clear and undeniable
message - produce high quality products at lower costs with greater responsiveness. To
compete in a world market, companies have to move toward a Six Sigma level of
performance. If you are not measuring your performance on a level playing field, you
don't know how you compare to those around you or the rest of the world. The internal
and external changes that occur with companies striving for Six Sigma translate to hard
currency. The most profitable and admired companies in the world have set the goal of
Six Sigma quality. In every case, Six Sigma has translated to cost reduction and profit
improvement. The bottom line is that companies moving toward Six Sigma levels of
performance have saved millions of dollars. Studies show that today's typical
organisation is operating at a level of two to three sigma. At two sigma, the cost of poor
quality is generally 40% of sales revenue. As progress is made towards Six Sigma, the
cost of poor quality declines dramatically to 10% of sales revenue.
Six Sigma has been launched all the world over and many companies testify to its pivotal
role in their success (Hutchins, 2000). Well-known examples of Six Sigma companies
include: Motorola, General Electric, AlliedSignal (now Honeywell), ABB, Lockheed
Martin, Polaroid, Sony, Honda, American Express, Ford, Lear Corporation and
Solectron. Six Sigma has generated substantial return on the investment made in its
implementation (McClusky, 2000).
Zero defects revisited
Some authors argue, that from a content perspective Six Sigma does not in principle
contain anything new. It’s focus on processes and variation is central to what is
historically thought of as ‘‘quality control and zero defects” and can be found in works
by W. Edwards Deming, Walter A.Shewhart and Philip Crosby. Design of experiments
and statistical process control, both of which are featured in Six Sigma programmes, are
not new – though their proactive use to improve processes, products and services is
certainly praiseworthy. Quality tools such as Pareto diagrams and Ishikawa diagrams
used in a Six Sigma programme noteworthy. But what is new about Six Sigma? In Reed
(2000), the author states that there is nothing at all new about Six Sigma and that it ‘‘has
been around for many years, just called something else”.
Reed goes on to say that Six Sigma ‘‘could be called problem solving, teambuilding,
SPC, plan, act, do, check, whatever you want to call it”. Authors Carnell and Lambert
(2000), simply state what we all know – “that Six Sigma is no silver bullet and that like
most change processes involving people it is difficult to institutionalise.”
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The perspectives offered by these authors is that Six Sigma is a tactical tool of great value
in achieving operational excellence. Operational excellence is, of course, required for the
overall attainment of business excellence – something that also requires customer-related,
financial, and marketplace performance excellence states Edgeman (2000). It is argued
that the ‘‘new’’ of Six Sigma is its explicit linking of the tactical with the strategic. That
is, what is new in Six Sigma is that efficient, often statistical, techniques are used in a
systematic way to and improve processes and there is a focus on results – including
customer-related ones that lead to enhanced marketplace performance and hence
improved bottom-line financial results. The point is that Six Sigma is of great value in
attainment of business excellence and measurement of progress. Appropriately
configured and deployed, Six Sigma programmes may be highly consistent with resultsorientation underlying various international quality awards, such as the Singapore Quality
Award, America’s Malcolm Baldrige National Quality Award, and the European Quality
Award.
The content of the Six Sigma approach varies from company to company. However, Six
Sigma programmes do have some common characteristics such as:

It is the ability to directly link bottom line results to the company. Metrics used rolled-throughput yield is new concept in how you define yield; hidden factory and
design for manufacturability/service.

It is a top-down, rather than bottom-up approach.

It is a highly disciplined, structured approach that typically includes five stages:
define, measure, analyse, improve and control.

It is a data-oriented approach, making use of various statistical decision tools.
Mikel Harry (2000), key developer and proponent of the Six Sigma program at Motorola,
has defined Six Sigma as ‘‘a disciplined method of using extremely rigorous data
gathering and statistical analysis to pinpoint sources of errors and ways of eliminating
them’’. The statistician and quality consultant Ron Snee (2000) indicated that ‘‘Six Sigma
should be a strategic approach that works across all processes, products, company
functions and industries’’ and Bajaria (2000) reinforces this idea – as ‘‘nuts and bolts.’’
Six Sigma can be of great value in attainment of business excellence and measurement of
that progress. Appropriately configured and deployed, Six Sigma programmes may be
highly consistent with results-orientation underlying various international quality awards
such as the Singapore Quality Award, America’s Malcolm Baldrige National Quality
Award, and the European Quality Award.
The author of this paper further suggests that Six Sigma can act as a catalyst for change
in the quest for business excellence by mobilising the intellectual capital of an
organisation, providing there is total commitment.
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Six Sigma and TQM
Six Sigma provides a structured and systematic means of pushing process and product
improvement. Whereas, TQM can be regarded as a management system consisting of
values, methodologies and tools that aims to improve customer satisfaction with a
reduced amount of resources, covering values such as:






Top management commitment
Focus on customers
Let everybody be committed
Focus on processes,
Base decisions on facts
Improve continuously
These values contribute to creation of organizational culture. To attain this, the values
have to be supported, systematically and continuously, by suitable methodologies and
tools. An organizational value of focusing on processes can be obtained through use of
Process Management, and that methodology tools such as process maps and control
charts are needed to map and control processes. Process Management defines the
essential elements in the Customer - Supplier chain in order to identify the opportunities
critical to quality (CTQ's). Process Management also forms the foundation for
improvement and breakthrough to occur. In building or transforming an organizational
culture we must identify those values that we desire.
We should then choose methodologies supporting those values and finally tools
supporting those methodologies. Methodologies, supporting several values are important
to the success of TQM. Six Sigma also illustrates that the management system is
dynamic. New methodologies and new tools will appear and be developed and Six Sigma
is an excellent example of this.
It can therefore be said that Six Sigma is a methodology within- not an alternative to
TQM, in much the same way as business process re-engineering launched in the 1990’s
by Hammer and Champy (1993). Six Sigma is a methodology that might cut costs for
your organisation; however, think about how the Six Sigma methodology supports the
values of your organization and how you choose the tools and, above all, do not forget
the totality of TQM.
Taking a leap of FAITH
It is argued that many companies are barely achieving three sigma levels. To go beyond
this point requires a vision that higher levels of performance are possible. But this will
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require new outlooks and mindsets, and to support these, new skills, techniques and
resources will be required. To take this giant exponential leap will require a much higher
level of commitment in movement towards six sigma and beyond. Conversely, costs
should reduce and savings increase as a result. For some companies the leap of FAITH
may be impossible, and they may have to settle for an optimum point. Those whoever,
who do successfully take the leap of FAITH will join the ranks of World-Class
organisations
Six Sigma FAITH application
The author suggests that a methodology and structure to ensure an effective Six Sigma
programme is implemented and sustained covers five areas. The FAITH model embraces
these features:
 Fortitude
The Six Sigma journey will not be an easy ride for many companies, many barriers will
faced, results may take a long time to materialise. Organisations invariably will undergo
change in a dynamic market environment. Changes will affect Customers, Supply
sources, Management Positions, Plant Equipment and Operating resources. Additionally,
personal attitudes can create a positive or negative climate which will affect a Six Sigma
programme. Traditional ideologies and negative attitudes will lead to comments such as
" we tried it before and it failed" or "this is just a management scheme to get more out of
us". Despite all of this, the Six Sigma Champion must have the fortitude and
perseverance to overcome these barriers and affect attitude change. By demonstration of
how successful companies overcame their difficulties to achieve great gain would surely
convince the most ardent skeptics.
 Application
It is often too easy to rush into a Six Sigma programme just by applying statistics as a
means to solve all the problems. However, whilst statistics may be involved with
collecting and analysing data, it may not address other issues such as the feedback
mechanism, people involvement, ownership and strategical focus. To make a Six Sigma
programme successful requires an application methodology which combines both a
Strategical focus to mobilise the organisation's intellectual capital and a Tactical
application of tools and techniques such as SPC. During the implementation of a Six
Sigma programme into the author's previous company, an eight stage development
approach was taken.
 Involvement
The traditional approach of collecting has been by QC/QA personnel, with very little
provision of participation by process owners. This approach results in a "them and us"
attitude and quality personnel seen being a policeman.
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For a Six Sigma programme to be successful, process owners must be identified to take
over the responsibilities for the process, product and recognise their role in suppliercustomer chains. With the emphasis of building quality into a product or service at
source, Quality personnel can take on more broader responsibilities of facilitation,
training, problem solving and process/systems auditing to determine areas for potential
improvement.
 Training
Many SPC and Six Sigma programmes have failed because they were too mathematical
approach and too complicated for staff/operators to understand. Also, not enough follow
through was undertaken once the training was completed and hence the knowledge was
lost. Consideration should be given to training the Six Sigma Champion(s)/Black Belts
by an external body, but these costs can exceed $20,000/ person. Obviously, when these
people have been trained then they can act as a trainer to the trainers in the organisation.
Consideration should be given to using alternative methods for training a large number of
Green/Yellow belts. In the author's experience, interactive video methods can solve this
issue. Black belts would then simply coach people through the training modules and
assess an individual's performance during application into the workplace. Interactive
video training can be an easy to understand, low mathematical approach with in-built
work exercises. Additionally, they can be easily assessable and taken at a convenient time
to suit the needs of the organisation and individual.
 Honesty
Companies intent on wooing customers may be tempted to 'massage data'. Similarly, data
may lose accuracy as it permeates it's way up through the layers of an organisation's
hierarchy. Continual improvement can only be achieved if the data is accurate. It is a big
step forward for process owners to input their own data, analyse it and recommend
actions for improvement. Accuracy of data can only be achieved is there is an attitude of
'honesty and trust'. Taking shortcuts and falsifying data will eventually be found out by
an experienced auditor or even a customer. Also, automatic data collection systems (MIS)
should have a high level of integrity and reliability. The starting point on the path to
continual improvement must be the disclosure of honest and accurate data, reported in a
reliable system.
In Summary we can say that properly deployed, the FAITH model will combine
People Power with Process Power to maximise the real Power of Six Sigma.
Discussion part 2. A CASE STUDY OF A MAJOR UK COMPANY
The implementation and development of Statistical Process Control and Six Sigma
in Siemens Telecommunications, Nottingham, U.K
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Introduction to the company.
Siemens Telecommunications, Nottingham origins go back to 1988 when it was formed
from two of the U.K’s major telecommunications companies- GEC Telecommunications
and Plessey Telecommunications. At the time the company was named GEC-Plessey
Telecommunications Ltd. However in 1989, the Plessey ownership was brought out by
Siemens and the company named GPT Limited. The ownership stood at GEC 60% and
Siemens 40%. In 1995, Siemens ownership went to 100%. The products produced at the
Nottingham site included private telecommunication exchange systems, video
conferencing products and telephone terminals with multiple features.
Myths & Legends
Previous attempts of introducing SPC into the company
The company in the past had attempted to implement SPC but programmes had failed due
to:
- Lack of top level commitment.
- Poor co-ordination
- Mathematical approach and too complicated for operators to understand.
- Ownership only by the Quality department not operators.
- Results examined at a time when it was too late to affect the process.
- Inadequate training and follow-through.
- Not a company-wide approach, limited only to machine shop.
- Did not involve external bodies such as design, material and equipment suppliers.
Rationale for introducing SPC and Six Sigma
As a newly appointed Senior Quality Executive in 1989, the author was brought into the
newly formed company to drive major changes through, the author was tasked to develop
a implementation programme which would ultimately embrace suppliers with an
objective to ship material directly to production lines thereby saving time and cost , and
give ownership for process control and improvement directly to producers and operatives.
The Challenge –untying the Gordian Knot
The author was faced with a tremendous challenge of how to deploy quality ownership to
process owners, how to train over 1000 people in SPC using a low mathematical
approach, in a relatively short time period. The author decide to use the Gordian Knot
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principle (see note 1) and disregard previous failures and use a different approach. An
implementation plan was developed which turned out to be the key to the programmes
success.
Implementation plan
Following a commitment to SPC and continual improvement by top management, an
eight-stage implementation plan, was developed by the author. It must be emphasised that
full commitment by senior management is a prerequisite of success. In the author’s
experience, managers need to be highly motivated to making SPC work for the company,
needing not only an overview of what SPC is and how it works but more importantly,
needing to know how to implement the technique into the company and how to profit
from its potential benefits. The potential savings are very significant but can only be
achieved by a committed work force, from top to bottom.
Appointment of facilitators (Black Belts)
Following a presentation to the board by the author on the benefits of SPC and the
methodology for its implementation, three senior managers within the Quality Assurance
Department were appointed and trained as Black Belts to give the programme impetus
and create an enthusiastic aura. These managers already had a good knowledge of
processes and products, but in-depth training was given by external bodies on SPC, Six
Sigma and Presentation Techniques (Dale Carnegie). The job of the facilitators (Black
Belts) was:

to assist with the development of the implementation programme.

to train personnel in SPC techniques.

to assist personnel in implementing the technique into their environment.

to develop manual charting methods.

to establish corrective action teams.

to co-ordinate activities for improvement.

to develop automatic data capture methods.

to train personnel in advanced tools such as failure mode and effect analysis and
Taguchi method.
Training Methods
Initially, the author received Six Sigma training from Motorola personnel. Also, the
author undertook research into SPC failures in UK companies and identified issues such
as inadequate training, lack of follow-through and a too mathematical approach as
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causes of failure. It was therefore decided by the author, that training in the organisation
should be practical and hands-on, an individual learning and follow-up process in a nonclassroom environment. A low- level mathematical approach would be taken. A number
of training methods were reviewed and the one adopted was an interactive video training
package. With it’s confidence-building technique of “hear, see, do”, it was used
extensively within the Ford Motor Company, who also recommended it as a standard
teaching method to their key suppliers. A training guide was written by the author around
this training package to enable the facilitators and any other trainers to use a standard
approach. The training guide was developed around the course modules and emphasised
the elements of: inform, activity and review.
Over 1000 people in the company undertook the interactive SPC training course. It has
proved the best and most cost-effective way to put over the message. Recognition
certificates of satisfactory SPC implementation were given to the organisaion’s and
supplier’s personnel which are endorsed by the Managing Director and Facilitators.
The commitment and enthusiasm of the operators and assemblers, who were the first to
embark on the process, generated first curiosity and then demand from associated groups
such as managers, engineers, support teams and office staff for knowledge of SPC
techniques. Rapid follow-up was essential once the initial interactive video training was
completed, the application of the technique within their own environment being
fundamental if the candidates were to gain confidence.
Acceptance standards
Defining acceptance standards was the next stage in implementation of SPC, to take into
account product design, product/process compatibility and customer requirements. The
main elements of product/process variability within the organisation is related to control
attribute characteristics, many of which in a finished state relate to a visual acceptance
level. Clear definitive standards to which operatives must adhere, relating to processes
such as solder acceptance and component positioning, were agreed and documented and
other characteristics more clearly defined within a particular process; for example, misinsertions per batch of printed circuit board assemblies produced at an automatic
component assembly stage.
Process capability
At the process capability stage, product characteristics derived from a particular process
were plotted by operatives and monitored by the facilitators, with results plotted over a
given period against different printed circuit board assemblies. Note was taken of the
different type of attribute fault characteristics and their magnitude. Control lines are
established and graphs generated using a software package.
At this stage, the elements analysed included the identification of controllable and noncontrollable causes of variation and the matching of product/process capability.
Control disciplines (5 S)
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Basic control disciplines were required on process as a prerequisite to SPC. These
include maintenance and planned maintenance records. Where possible, much of the
routine maintenance was be done by the operatives themselves. It was agreed that only
trained, authorised personnel were to operate critical processes, with a list of users
displayed on each process, and laboratory results were to be displayed on material used in
the process - for example, purity of solder from the (flowsolder process). Other
disciplines related to a good standards of housekeeping and work layout; material and
tooling storage, separation and identification of work; the completion of process records
and the availability of procedure/work instructions covering process operation and
control.
Manual charting
At the stage of implementation of manual charting, it was the operatives and not the
quality personnel who complete the charts and who can assist with their design. Initially,
attribute control charts were used, but later variable chart were introduced and extended
into non-manufacturing areas. These charts measure variability of a characteristic within
defined control limits and there is a facility to identify which characteristic is of the main
concern, what action is being taken and by whom. Quality Assurance personnel audit the
charting process to ensure that the details are an accurate portrayal and that effective
corrective action is being taken .
Closing the loop
At the stage we would describe as closing the loop, action groups are established and
meet at regular intervals, usually on a weekly basis or immediately if a major problem
occurs. These groups are established on particular processes and consist of operators,
facilitators, team leaders and industrial engineers, with personnel from other departments
such as design engineering attending when requested. Feedback of information is
therefore provided if the cause of variation goes outside the process and support is
required from designers or suppliers for improvements to take place. Problem solving and
team involvement techniques such as cause and effect/pareto analysis and storyboarding
are used. Process action groups also made presentations to the Board of Directors and
senior management on achievements and setting of future targets.
Automatic data capture
The final stage was the implementation of data capture implementing, with the
transference of manual charting to portable data loggers incorporating bar-coding of
attributes. They proved to be successful in a patrol activity when monitoring flexible
work cell activities.
Data capture was also made available directly from the Fuji automatic in-sertion and onsertion machines as well as automatic test equipment. Further, development took place
with an MIS system to consolidate and review data in a standard format. Review of other
means of SPC data collections software was undertaken including web server
applications.
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Timescales
The SPC program commenced in September 1990 starting with training, and
implementation of SPC on all major processes in printed circuit board assembly was
achieved by August 1991, and in all activities including manual and test operations in
printed circuit board assembly by March 1992. Tracking reports were generated to
monitor progress. Generally, slippage in the timetable was up to 4 weeks, with the main
reasons given as work rescheduling, holidays and absenteeism. An example of a tracking
report is shown in. Since 1995, SPC has been progressively implemented into key
suppliers of the organisation in the Supplier Development programme. Also, SPC was
effectively introduced into the field repair department, providing an important tool to
identify, control and feedback information to improve in-service reliability.
Additionally, SPC was introduced with considerable success into the organisation’s joint
venture in Shanghai, China, assisted by interactive video training, where a high level of
commitment was demonstrated at all levels - a commitment shown in the willingness of
the workforce to take on new concepts and maintain controls. Good levels of process
control have been established in the Joint Venture, resulting in improvement in first-time
pass rates at test stages equivalent to those achieved in the U.K.
Supplier development and SPC
The organisation has devoted a lot of effort into its supplier base. With objectives to
reduce cost, increase throughput times reduce/eliminate goods inwards inspection and
testing and to establish long term partnerships with a smaller supplier base. Reduction in
the supplier base from 400 in 1994 to a current level of 120 occurred. SPC
implementation through use of interactive video training supplied by the organisation has
been a vital ingredient in achieving these objectives and requirements of the ship to
stock/ship to line programme .
Benefits and achievements
Since the programme was introduced by the, a number of significant benefits and
achievements have been observed. Some tangible and others which contributed towards a
change in culture, an essential factor to facilitate the rapid changes needed in
organisations today.
-
Following the Motorola approach, the principle of rather than “doing quality” the
Quality department began helping managers across the organisation to do quality
themselves.
Significant changes in people’s attitudes have been observed due to a positive
training method which has been given top level commitment and follow-up.
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-
Personnel have developed a flexible approach to their processes with regards to
ownership of quality, pursuance of problems / action on solutions at an early stage
and maintenance of equipment.
-
Personnel enjoy taking an active part in the follow-up actions and are members of
cross-functional teams to resolve problems.
Results of these benefits can be shown in the following examples:
Automatic component on-sertion (SMD) faults have reduced to defect rates
approaching 3.4 defects per million (Six Sigma).

The reject rate in the flow solder process reduced to less than 20 defects per million
(dpm).

Yield rates at automatic test stages (ATE) now are greater 95%, with many
established pwa codes achieving 100% first time pass rates.

Effective process control has resulted in some products now having reliability
performance Mean Time Between Failures (MTBF) at least twice contractual
requirements, with component in- service failure rates now being measured in parts
per billion. with the introduction of SPC and received customer recognition.

Gave impetus and value to ISO 9001, ISO 14001 and People Developer Awards.

Supported the successful technology transfer project to the joint venture in Shanghai.

The organisation gained the Factory of the Year award for significant achievement.
For confidentiality reasons more detailed figures cannot be stated, however it can be said
that the implementation of SPC in the quest for Six Sigma in the organisation has
contributed to savings of millions of dollars.
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Conclusions
To establish value-added competitive advantages we have to manage the best available
techniques to secure continuous improvement of performance in all parts of work
undertaken. The utilisation of statistical techniques is essential to this process and to be
effective, needs to be supported and used by the whole organisation with statistical
thinking becoming a way of life. To be the best we have to develop our people through
effective training and provision of improved equipment on a continuing basis with top
management commitment. Virtually all the people that took part in the interactive
training program gave praise in the method of presentation and ease of understanding of
the subject. The approach taken was therefore seen to be correct and vital to ensure
success of the case study.
The purpose of this paper has been to restate the need for laying a firm foundation using
key elements in the FAITH model for implementing Six Sigma. SPC in itself is not the
answer to a company’s quality problems, it is merely a tool, which if properly executed
can provide a powerful force for change. Detection, control and prevention of defects and
errors should be everywhere in the company, at each stage, involving everyone. In
companies where this is not the case, an SPC programme can be the ideal catalyst for
change in creating the necessary controls. A considerable amount of hard work, over a
period of several years rather than months as identified in the GPT/Siemens case study
may be needed for statistical process control to be fully effective.
Six Sigma requires vision, commitment and a structured approach. It’s methodology is
applicable wherever a process exists and data can be established. Undertaking a Six
Sigma programme will not undermine existing initiatives such as ISO 9001, TQM and
SQC/SQA but will enhance the results of these programmes, by offering something more
in the form of structure and focus. Six Sigma is not for the faint hearted and it cannot be
treated as “the flavour of the month” or a product you can buy off the shelf, it is a long
term commitment. Six Sigma can be exiting journey in the quest for continual
improvement and business excellence.
15
Notes
1. Legend
has it that Gordius, king of Gordium in ancient Phrygia, tied a massive,
intricate knot that an oracle declared could only be unraveled by the man who would
rule Asia. Many had tried to solve the puzzle, all had failed. In the year 333 BC, a
mighty Macedonian king came to Asia. Flanked by his troops and armed with a
creative mind, Alexander the Great stood transfixed before the knot. Suddenly, a flash
of inspiration lit up his face. With one bold and innovative stroke, Alexander untied
the untie-able. Grasping his sword, he slashed through the knot with a swift and
decisive blow and went on to become one of history’s greatest rulers.
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