Six SigmaSix SigmaAn An

IntroductionIntroduction

History of Six History of Six SigmaSigma

Motorola (1987)Motorola (1987) Texas Instruments (1988)Texas Instruments (1988) IBM (1990)IBM (1990) ABB (1993)ABB (1993) Allied Signal (now Honeywell) Allied Signal (now Honeywell)

and Kodak (1994)and Kodak (1994) GE (1995)GE (1995) Whirlpool, PACCAR, Siebe, Whirlpool, PACCAR, Siebe,

Iomega, Polaroid, Sony, Home Iomega, Polaroid, Sony, Home Depot, Penske (1996/99)Depot, Penske (1996/99)

What Is Six What Is Six Sigma?Sigma?

Basically it is a statistically Basically it is a statistically based methodology for based methodology for process improvement.process improvement.

Six Sigma: A Six Sigma: A PhilosophyPhilosophy

Continuous improvementContinuous improvement Virtually defect-freeVirtually defect-free New way of doing businessNew way of doing business Innovation and creativityInnovation and creativity Reduce variability with the process.Reduce variability with the process. Based on precision and accuracy-Based on precision and accuracy-

leading to data driven decisionsleading to data driven decisions

Six Sigma: Six Sigma: Where and What Can It Be Where and What Can It Be

Used For?Used For? Currently used in:Currently used in:

– ManufacturingManufacturing– MilitaryMilitary– SalesSales– Transactional servicesTransactional services

Six Sigma: A Six Sigma: A MeasureMeasure

Sigma Sigma (() Level) Level

Defects per Defects per Million Million

Opportunities Opportunities (ppm)(ppm)

22 308,537308,537

33 66,80766,807

44 6,2106,210

55 233233

66 3.43.4

6 55 54 53 5

Upper SpecLower Spec

+3

+3

Process

Tolerance

3 Sigma Level Process:3 Sigma Level Process:No Mean ShiftNo Mean Shift

8 07 06 05 04 03 02 0

+3

Lower Spec Upper Spec

Process

Tolerance

Six Sigma Level Process:Six Sigma Level Process:No Mean ShiftNo Mean Shift

99% versus 99% versus 99.99966%99.99966%

Pretty much the same. Pretty much the same.

Right?Right?

99% Good 99.99966% GoodPractical MeaningPractical Meaning

U.S. Postal System20,000 lost articles / hr 7 lost articles / hr

99% Good 99.99966% GoodPractical MeaningPractical Meaning

Medical Profession200,000 Wrong Drug Prescriptions/Year

68 Wrong/Year

99% Good 99.99966% GoodPractical MeaningPractical Meaning

Airline System2 short/long landings / day 1 short/long / 5 years

The Goal of Six SigmaThe Goal of Six Sigma

The The Reduction of Reduction of VARIATION!VARIATION!

Sources of VariationSources of Variation

MachinesMachines MaterialsMaterials MethodsMethods ManpowerManpower MeasurementMeasurement Mother NatureMother Nature

Optimized Process

30+ Inputs

8 - 10

4 - 8

3 - 6

Found Critical X’s

Controlling Critical X’s

10 - 15

All X’s

1st “Hit List”

Screened List

Measure

Analyze

Improve

Control

The Funneling EffectThe Funneling Effect

Define

Six Sigma BreakthroughSix Sigma Breakthrough

Six SigmaBreakthrough

3 Sigma Level

6 Sigma Level

Perf

orm

an

ce

BAD

GOOD

Time

Let’s Look At A Let’s Look At A Common Common Example.Example.

The Dreaded Fast Food The Dreaded Fast Food Drive Thru!Drive Thru!

What’s The Most What’s The Most Important Thing Important Thing

At The Drive At The Drive Thru?Thru?

THE WAIT TIME!

Let’s Look At Let’s Look At Current Drive Thru Current Drive Thru

Wait Times.Wait Times.

1612840

Median

Mean

9876543

1st Quartile 2.3750Median 4.87503rd Quartile 9.0000Maximum 15.0000

4.1437 8.1313

2.8088 9.0000

3.2397 6.2221

A-Squared 0.50P-Value 0.185

Mean 6.1375StDev 4.2600Variance 18.1479Skewness 0.562363Kurtosis -0.728339N 20

Minimum 0.5000

Anderson-Darling Normality Test

95% Confidence I nterval for Mean

95% Confidence I nterval for Median

95% Confidence I nterval for StDev95% Confidence I ntervals

Summary for Drive In Wait Time

Observation

Indiv

idual V

alu

e

191715131197531

20

10

0

-10

_X=6.14

UCL=19.72

LCL=-7.44

Observation

Movin

g R

ange

191715131197531

16

12

8

4

0

__MR=5.11

UCL=16.68

LCL=0

I-MR Chart of Drive In Wait Time

1612840-4

LSL USLTarget

LSL 0.7Target 1.5USL 13.58Sample Mean 6.1375Sample N 20StDev(Within) 5.13884StDev(Overall) 4.31643

Process Data

Cp 0.42CPL 0.35CPU 0.48Cpk 0.35

Pp 0.50PPL 0.42PPU 0.57Ppk 0.42Cpm 0.04

Overall Capability

Potential (Within) Capability

PPM < LSL 50000.00PPM > USL 50000.00PPM Total 100000.00

Observed PerformancePPM < LSL 145001.01PPM > USL 73769.00PPM Total 218770.01

Exp. Within PerformancePPM < LSL 103884.81PPM > USL 42333.47PPM Total 146218.28

Exp. Overall Performance

WithinOverall

Drive In Wait Times

What Does The Data What Does The Data Show Us?Show Us?

The average wait time for the The average wait time for the drive thru is over 6 minutes!drive thru is over 6 minutes!

Lean Six Sigma: A Powerful Methodology (DMAIC)

MeasureDefine ImproveAnalyze Control

what is important to the customer:

Project Selection

Team Formation

Establish Goal

how well we are doing:

Collect Data

Construct Process Flow

Validate Measurement System

the process:

Analyze Data

Identify Root Causes

the process gains:

Ensure Solution is Sustained

the process performance measures:

Prioritize root causes

Innovate pilot solutions

Validate the improvement

2.01.51.00.5

Median

Mean

2.01.81.61.41.21.0

1st Quartile 1.0000Median 1.50003rd Quartile 2.0000Maximum 2.2500

1.1412 1.6488

1.0000 1.9412

0.4125 0.7922

A-Squared 0.65P-Value 0.075

Mean 1.3950StDev 0.5424Variance 0.2942Skewness -0.08921Kurtosis -1.20009N 20

Minimum 0.5000

Anderson-Darling Normality Test

95% Confidence I nterval for Mean

95% Confidence I nterval for Median

95% Confidence I nterval for StDev95% Confidence I ntervals

Summary for Drive In Time After Six Sigma

Observation

Indiv

idual V

alu

e

37332925211713951

16

12

8

4

0

_X=1.40UCL=3.03

Before After

Observation

Movin

g R

ange

37332925211713951

16

12

8

4

0__MR=0.62UCL=2.01LCL=0

Before After

I-MR Chart of Drive In Wait Times

12.2510.508.757.005.253.501.750.00

LSLTarget

USL

LSL 0.7Target 1.5USL 13.58Sample Mean 1.395Sample N 20StDev(Within) 0.432563StDev(Overall) 0.549568

Process Data

Cp 4.96CPL 0.54CPU 9.39Cpk 0.54

Pp 3.91PPL 0.42PPU 7.39Ppk 0.42Cpm 0.48

Overall Capability

Potential (Within) Capability

PPM < LSL 100000.00PPM > USL 0.00PPM Total 100000.00

Observed PerformancePPM < LSL 54059.88PPM > USL 0.00PPM Total 54059.88

Exp. Within PerformancePPM < LSL 103002.06PPM > USL 0.00PPM Total 103002.06

Exp. Overall Performance

WithinOverall

Drive In Wait Times After Six Sigma

Six Sigma: A Powerful Methodology (DMAIC)

MeasureDefine ImproveAnalyze Control

what is important to the customer:

Project Selection

Team Formation

Establish Goal

how well we are doing:

Collect Data

Construct Process Flow

Validate Measurement System

the process:

Analyze Data

Identify Root Causes

the process gains:

Ensure Solution is Sustained

the process performance measures:

Prioritize root causes

Innovate pilot solutions

Validate the improvement

Six Sigma is a philosophy of continuous Six Sigma is a philosophy of continuous improvement.improvement.

Six Sigma measures defects in a process. Six Sigma measures defects in a process. One can expect 3.4 defects per million One can expect 3.4 defects per million

opportunities in a six sigma level process.opportunities in a six sigma level process. Six Sigma is a methodology that includes Six Sigma is a methodology that includes

defining, measuring, analyzing, improving, defining, measuring, analyzing, improving, and controlling a process.and controlling a process.

Summary of Summary of Key PointsKey Points