Presented by: Ayush Shakya
Neeti Kumar Rashmikat Jha
BFT- V (2011-15)
Introduction to
3.4 defects per million opportunities
Philosophy that changes the way of thinking within a
company
Business strategy that brings a company to
competitive edge
Business Improvement Methodology
What is Six Sigma?
2Introduction to Six Sigma
Defect reduction
Yield improvement
Improved customer satisfaction
Higher net income
Continual improvement
What does Six Sigma mean practically?
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Carl Frederick Gauss ( 1777-1855) introduced the concept of
the normal curve
As a measurement standard in 1920’s, Walter Shewhart
showed three sigma is the point from the mean where a
process requires correction
1970’s: Mikel Harry, a senior staff engineer at Motorola’s
Government Electronics Group began to formulate a method
for applying six sigma throughout Motorola
Six Sigma Evolution
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In 1987 when Bob Galvin was the Chairman , Six Sigma
was started as a methodology in Motorola.
Bill smith , an engineer, and Mikel Harry together devised
a 6 step methodology with the focus on defect reduction
and improvement in yield through statistics
The term “Six Sigma” was coined by Bill Smith, who is now
called Father of Six Sigma
The company saved $ 16 billion in 10 years.
History of Six Sigma: Motorola
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History of Six Sigma
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Performing at sigma level of six means that difference
between mean and specific limit is six times the
standard deviation.
Six Sigma
Generated as a result of a process experiencing random
variation
Characterized by mean and standard deviation
The Normal Distribution
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Measuring variation using standard deviation
Objective of Six Sigma
Sigma Level DPMO
2 308,537
3 66,807
4 6,210
5 233
6 3.4
99.99966% good- sigma level of 6
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Customer-centered
Process-focused
Data Driven
Big Performance Gains
Structured improvement deployment
Validation through key business results, ( financial
gains in most cases)
Characteristics of Six Sigma
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What is Six Sigma Performance? 99% Good (3.8s)
• 5,000 incorrect
operations per week
• Two short or long
landings at most major
airports each day
• 200,000 wrong drug
prescriptions each year
99.99966% Good (6s)
• 1.7 incorrect
operations per week
• One short or long
landing every five
years
• 68 wrong
prescriptions per year.
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Six Sigma : The Projects
• Projects are linked to the Strategic Plan
• Projects prioritized based on value to the business, resources
required, and timing
– Yield improvement
– Waste reduction
– Capacity-productivity improvement
– Cycle time reduction
• Projects are formally tracked
• Team Leader and Management are held accountable
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Six Sigma Improvement Methodology D-M-A-I-C
PLAN
DOCHECK
ACT
Define
Measure
AnalyzeImprove
Control
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DMAIC Steps
• Identify projects that are measurable
• Define projects including the demands of the customer
and the content of the internal process.
• Develop team charter
• Define process map
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
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DMAIC Steps
• Define performance standards
• Measure current level of quality into Sigma. It
precisely pinpoints the area causing problems
• Identify all potential causes for such problems
5.0Control
2. Measure1. Define 3. Analyze 4. Improve 5. Control
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DMAIC Steps
3.0 Analyze
3. Analyze1. Define 2. Measure 4. Improve 5. Control
• Establish process capability
• Define performance objectives
• Identify variation sources
• Screen potential causes
• Discover variable relationships among causes and
effects
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DMAIC Steps
• Hypothesis Testing
• Regression Analysis
• Box Plot
• Correlation
• Regression
• Process Mapping
• Failure Mode & Effect Analysis
• Design of Experiments
• Control charts
• Quality Function Deployment
(QFD)
3. Analyze1. Define 2. Measure 4. Improve 5. Control
DMAIC Steps
• Establish operating tolerances
• Pursue a method to resolve and ultimately eliminate
problems. It is also a phase to explore the solution
how to change, fix and modify the process.
• Carryout a trial run for a planned period of time to
ensure the revisions and improvements implemented
in the process result in achieving the targeted values.
4. Improve1. Define 2. Measure 3. Analyze 5. Control
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DMAIC Steps
• Monitor the improved process continuously to ensure
long term sustainability of the new developments.
• Share the lessons learnt
• Document the results and accomplishments of all the
improvement activities for future reference.
5. Control1. Define 2. Measure 3. Analyze 4. Improve
Control Charts:
Assigning clear process ownership and documenting 20Introduction to Six Sigma
Flowchart of DMAIC process
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Key Terms
Y’s• Key process output variable • Thought of in terms of performance/defect measures X’s• Key process input variable • Are a list of variables that influence the response(s) or
Y’s• Y is a function of the X’s or
Y = f(X1, X2, …)
The goal of six sigma is to understand the X’s that control the Y’s.
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x
x
x
Y = f(X1, X2, …)
Suppliers Customers
X’s, Inputs• Process variables• Inputs to the process• Essential actions to
achieve strategic goals• Key influences on
customer satisfaction
Y’s, Outputs• Customer requirements• Yield, Waste, Rate• On Time Delivery• Economic Profit• Strategic goal • Customer satisfaction
Process
Inputs Outputs
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Sigma level calculation
DPMO = DPU * 1,000,000 / OFE• DPMO – Defects per million opportunities
• DPU – defects per unit
= No. of defects / No. of pieces inspected
• OFE – Opportunities for error per unit
= No. of characteristics inspected per unit
Sigma level = Value of Zst from the Sigma level and DPMO table
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THANK YOU
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