Six Sigma
MET 420 Quality Systems
Fall 2015
Six Sigma Team Project
Instructor Ed May
12/7/15
Ryan McCarthy
Jelena Stijovic
Jovana Stijovic
Maynard Cooke
Syed Rizvi
What is Six Sigma?
• Six Sigma can be described as a business improvement
approach.
• It seeks to find and eliminate causes of defects and errors in
manufacturing and service processes
• Focuses on outputs which are critical to customers and on a
clear financial return for the organization.
• Continuous improvement
• Reduction in variation from target
• Reduction in defects
The Fundamental Objective
• The implementation of a measurement-based
strategy
• Focus on process improvement and variation
reduction
• Six Sigma improvement projects that follow DMAIC
• DMAIC; define, measure, analyze, improve, control
• Employees get six sigma training to get certified
• Six Sigma is deployed with internal projects
Goals
• To reduce variation to no more than 3.4 defect parts per
million on a long term basis.
• Specify the process performance and come up with a
strategy to reach the performance goals.
• Decrease the variation around the mean value, increasing
the sigma value from zero to six.
• The process approaches zero variation that is known as
zero defects.
• The process is started by having employees go through
different levels of six sigma training.
• When employers have their employees trained the
leadership capabilities are strengthened amongst the
organization.
Core Concepts
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Key business processes and customer requirements
A clear focus on overall strategic objectives.
Focus on sponsors responsible for championing projects
Support team activities to help them with resistance to change.
Emphasize measures that can be applied throughout an
organization.
Ensure that proper metrics are identified early in the process.
Provide extensive training followed by project team deployment to
improve profitability.
Reduce non-value-added activities to achieve cycle time reductions.
Create qualified process improvement experts who can apply
improvement tools and lead teams.
Set objectives for improvement.
DMAIC
• D – Define Phase: Define the project goals and customer.
• M – Measure Phase: Measure to determine current
performance, collect data.
• A – Analyze Phase: Analyze and determine the root causes of
the defects.
• I – Improve Phase: Improve the process by eliminating
defects.
• C – Control Phase: Control process performance for
continuous improvement.
Define
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Define the customers and their requirements
Develop problem statements, goals and benefits
Define Resources
Evaluate key organizational support
Develop project plan and milestones
Identify the champion, process owner and team
Develop high level process map
Measure
• Measure phase is critical as the team focuses on
data collection.
• Define Defect, Opportunity, Unit and Metrics
• Detailed Process Map of Appropriate Areas
• Develop Data Collection Plan
• Validate the Measurement System
• Collect the Data
• Begin Developing Y=f(x) Relationship
• Determine Process Capability and Sigma Baseline
Analyze
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Define Performance Objectives
Identify Value/Non-Value Added Process Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x’s, Y=f(x) Relationship
Improve
• Perform Design of Experiments
• Develop Potential Solutions
• Define Operating Tolerances of Potential
System
• Assess Failure Modes of Potential Solutions
• Validate Potential Improvement by Pilot
Studies
• Correct/Re-Evaluate Potential Solution
Control
• Define and Validate Monitoring and Control
System
• Develop Standards and Procedures
• Implement Statistical Process Control
• Determine Process Capability
• Develop Transfer Plan, Handoff to Process Owner
• Verify Benefits, Cost Savings/Avoidance, Profit
Growth
• Close Project, Finalize Documentation
• Communicate to Business, Celebrate
Benefits
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Better use of resources.
High Employee Satisfaction.
Better company reputation.
More shareholder confidence.
Business partnerships Improve.
More productivity
Statistical Basis
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Six Sigma = 3.4 DPMO, 99.9997% defect-free.
Five Sigma = 233 DPMO, 99.98% defect-free
Four Sigma = 6,210 DPMO, 99.4% defect-free
Three Sigma = 66,807 DPMO, 93.3% defect-free
Two Sigma = 308,538 DPMO, 69.1% defect-free
One Sigma = 691,462 DPMO, 30.9% defect-free
Reduction In Variation
Sigma Shift
Six Sigma Metrics
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Defects Per Unit - DPU
Defects Per Million Opportunities - DPMO
Rolled Throughput Yield – RTY
Cycle Time
Cost of Poor Quality – COPQ
Defects Per Unit
The probability of getting 'r' defects in a sample
having a given DPU rate can be predicted with
the Poisson Distribution.
Defects Per Million Opportunities
Defects Per Million Opportunities or DPMO can be
then converted to sigma values using Yield to
Sigma Conversion Table
Rolled Throughput Yield
• The probability of the entire process producing zero
defects.
RTY = Process 1 TPY * Process 2 TPY * Process 3 TPY
RTY = 0.800 * 0.739 * 0.804
RTY = 0.475 = 47.5%
Cycle Time
• Cycle time is the total time from the beginning
to the end of your process
• It includes process time, during which a unit is
acted upon to bring it closer to an output
• Delay time, during which a unit of work is
spent waiting to take the next action.
Cost Of Poor Quality
• The cost caused by the gap between the
desired and actual product/service quality.
• The cost of lost opportunity due to the loss of
resources used in rectifying the defect.
• All the labor cost, rework cost, disposition
costs, and material costs.
• COPQ does not include detection and
prevention cost.
Origins and History
• Bob Smith of Motorola developed a system of quality
assurance which heavily featured the use of statistical tools.
• This system aimed to achieve a sigma level of 6 or
99.99966% free of defects
• Two years later in 1988 Motorola received the Malcolm
Baldrige National Quality Award.
• In 1995, CEO Jack Welch of General Electric implemented
Six Sigma in his company to with great success.
• Since then, Six Sigma has rapidly spread to many industrial
businesses and helped greatly improve industrial quality
around the world.
History
• Arguably the most important guru of Six
Sigma is W. Edwards Deming.
• He popularized statistical thinking and
popularized the PDSA (Plan-Do-Study-Act)
method which serve as the basis of Six Sigma.
• PDSA is a systematic method of implementing
changes to a process that works similarly to
DMAIC
History
• Mikel Harry is considered the world’s foremost
expert on Six Sigma
• Having done more to spread and improve Six
Sigma than anyone else.
• He founded several Six Sigma institutions that
provide a multitude of Six Sigma services
• Helping businesses implement the system and
researching advanced methods of quality
assurance.
Gurus
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Frederick Winslow Taylor
Walter A. Shewhart
W. Edwards Deming
Joseph M. Juran
Armand V. Feigenbaum
Kaoru Ishikawa
Genichi Taguchi
Philip B. Crosby
Ed May
Successful Usage
• Six Sigma is applicable to virtually any
business type.
• Typically used by manufacturers to eliminate
waste and reduce errors.
• High consistency means fewer errors, as well
as less money lost because of them.
• Six Sigma is also highly beneficial to the
service industry.
Quality Tools
• There are 7 basic quality control tools
• Cause and Effect Diagram, Check Sheets,
Control Charts, Histograms, Pareto Diagrams,
Scatter Diagrams, Stratification or Run Charts
Fishbone Diagram
The fishbone diagram identifies many possible causes for an effect
or problem. It can be used to structure a brainstorming session. It
immediately sorts ideas into useful categories.
Check Sheet
A check sheet is a structured, prepared form for collecting and analyzing data. This
is a generic tool that can be adapted for a wide variety of purposes.
Control Charts
The control chart is a graph used to study how a process changes over time. Data
are plotted in time order. A control chart always has a central line for the average,
an upper line for the upper control limit and a lower line for the lower control
limit.
Histogram
A frequency distribution shows how often each different value in a set of data
occurs. A histogram is the most commonly used graph to show frequency
distributions. It looks very much like a bar chart, but there are important
differences between them.
Pareto Chart
A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost
(time or money), and are arranged with longest bars on the left and the shortest
to the right. In this way the chart visually depicts which situations are more
significant.
Scatter Diagram
The scatter diagram graphs pairs of numerical data, with one variable on each
axis, to look for a relationship between them. If the variables are correlated,
the points will fall along a line or curve. The better the correlation, the tighter
the points will hug the line
Stratification Chart
Stratification is a technique used in combination with other data analysis
tools. When data from a variety of sources or categories have been lumped
together, the meaning of the data can be impossible to see. This technique
separates the data so that patterns can be seen.
Run Chart
A run chart is a graph that displays observed data in a time sequence. The data
represents an aspect of the output of a manufacturing or business process. Run charts
are an easy way to graphically summarize a seemingly random data set.
Team Basics
• Types – Continuous Improvement, Self
Managed, Cross Functional
• Stages – Forming, Storming, Norming,
Performing, Adjourning, Partying
• Decision Making Tools – Brainstorming, Multi
Voting, Nominal Group
• Communication Methods – Agendas, Minutes,
Project Status
Six Sigma Belts
• The belts run on much the same concept as
martial arts. Going from a White Belt at the
bottom up to a Master Black Belt. The Black
and Master Black Belt levels can be considered
a master at the Six Sigma method.
White Belt
• White Belts are the least experienced of the
belts.
• They may only be aware of the procedures,
policies, and the Six Sigma Goals, but do not
directly contribute to them.
Yellow Belt
• The Yellow Belts can work as functional team
members and can carry out the tasks they are
given.
• They can review, analyze, and suggest
improvements for the projects they work on.
• They are vital team members who will carry
out the tasks assigned to them by team
leaders.
• They only work on a support level.
Green Belt
• The green belts are assistants to the higher belts.
• They sometimes lead teams of their own on small
projects.
• They help analyze and collect data for their
projects and for other team projects they are
involved in.
• The Green Belts are the individuals who do most
of the actual ‘six sigma work’ within a company
and often mentor Yellow and White Belts.
Black Belt
• The Black Belt is at the top level in Six Sigma,
they practice leadership skills, design,
develop, and run team projects utilizing the
DMAIC model.
Master Black Belt
• The Master Black Belts have extensive
experience and training in methodology.
• They may train lower level belts or teach
others about the methodology and preparing
them for their own certifications.
• Professionals who are having trouble or issues
can go to someone holding this rank for help.
Master Black Belt Requirements
• To become certified as an ASQ MBB, a candidate must
successfully meet all requirements. To be eligible to
apply for the MBB examination, a candidate must hold
a current ASQ Certified Six Sigma Black Belt (CSSBB).
• A candidate must have either a minimum of 5 years
experience in the role of a SSBB or MBB or to have
completed at least 10 Six Sigma Black Belt projects.
• Candidates must meet these minimum eligibility
requirements in order to have their portfolio reviewed.
Beginning a Project
• When Six Sigma is implemented projects are
created
• These projects move through stages: Forming,
Storming, Norming, Performing, and
Adjourning
Forming
• Task and role clarification.
• Learning about one another’s areas of
expertise and preferred working methods.
• Sharing all relevant information.
• Encouraging members to ask questions of one
another.
• Establishing ground rules.
• Using team-building exercises.
Storming
• Encouraging joint problem solving
• Exploring different points of view.
• Discuss the team’s decision-making process
and share decision making responsibility.
• Make sure team members state how they feel
and what they think when they have an issue
with a decision.
Norming
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Talking openly about issues and concerns.
Manage agenda items.
Giving and requesting feedback.
Solving challenging problems with group
decisions.
• Delegating responsibilities to the members
capable of handling them.
Performing
• Setting challenging goals.
• Looking for new opportunities to increase the
team’s effectiveness.
• Questioning assumptions and traditional ways of
behaving.
• Developing mechanisms for ongoing review by
the team.
• Recognizing each member’s contribution.
• Developing members to their fullest potential
through task assignments and feedback.