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Introduction To Six Sigma

The document provides an introduction to Six Sigma, including its history and methodology. Six Sigma aims to achieve near-perfect process quality by minimizing defects. It was developed by Motorola in the 1980s and helped improve quality, increase sales, and reduce costs. The methodology uses data-driven problem solving and statistical analysis to measure and improve processes. It focuses on reducing defects to 3.4 defects per million opportunities through two improvement processes - DMAIC for incremental change and DMEDI for redesign.

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61 views18 pages

Introduction To Six Sigma

The document provides an introduction to Six Sigma, including its history and methodology. Six Sigma aims to achieve near-perfect process quality by minimizing defects. It was developed by Motorola in the 1980s and helped improve quality, increase sales, and reduce costs. The methodology uses data-driven problem solving and statistical analysis to measure and improve processes. It focuses on reducing defects to 3.4 defects per million opportunities through two improvement processes - DMAIC for incremental change and DMEDI for redesign.

Uploaded by

sana majid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to

Six Sigma
The Six Sigma System
“The Six Sigma system is a comprehensive and flexible system for
achieving, sustaining and maximizing business success”
(Pande, Neuman, and Cavanagh 2000).
History
• The Six Sigma methodology was born in 1987 in Motorola’s communication
sector.
• The 6σ quality means that the defect rate in the production of each
component of an assembly (e.g., a cellular phone) will not be more than 3.4
parts per million (ppm) opportunities.
• In the 1980s, this process helped the company to achieve enormous
improvements in quality: 10-fold improvement every two years, or 100-fold
improvement in four years.
• In the 10 years, between 1987 and 1997, the company increased its sales
fivefold, saved $14 billion from Six Sigma projects, and saw its stock prices
increase at an annual rate of 21.3%.
Six Themes of Six Sigma
• Theme 1: Focus on the Customer
• Theme 2: Data and Fact-Driven Management
• Theme 3: Process Focus
• Theme 4: Proactive Management
• Theme 5: Boundaryless Collaboration
• Theme 6: Drive for Perfection (with Tolerance for Failure)
The 6 Sigma Measure
• When a process has 6σ quality, there will be no more than 3.4 ppm
outside specification.
Example
Your printing business prints custom stationary orders. Each order is
considered a unit. Fifty orders are randomly selected and inspected,
and the following defects are found.

1. Two orders are incomplete


2. One order is both damaged and incorrect (2 defects)
3. Three orders have typos

Calculate the Sigma Level.


Solution
• Six of the orders have problems and there are a total 7 defects out of
the 50 orders sampled; therefore DPU* = 7/50 = 0.14. On average,
this is your quality level and each unit of product on average contains
this number of defects.

*Defects per unit (DPU) is the number of defects in a sample divided


by the number of units sampled.
Solution
Each custom stationary order could have four defects - incorrect, typo, damaged,
or incomplete. Therefore, each order has four opportunities. Fifty orders are
randomly selected and inspected, and the following defects are found.
1. Two orders are incomplete
2. One order is both damaged and incorrect (2 defects)
3. Three orders have typos
Six of the orders have problems, and there are a total of 7 defects out of the 200
opportunities (50 units * 4 opportunities / unit); therefore DPO* = 7/200 = 0.035.

*Defects per opportunity (DPO) is the number of defects in a sample divided by


the total number of defect opportunities.
Solution

Defects No. of Defects 7

Opportunities No. of types of Defects 4

Total Total No. of Orders Considered 50

DPU DPU = 7/50 = 0.140


DPO DPO = 7/(50 X 4) = 0.035
DPMO DPMO= 0.035 X 106 = 35000
Yield Yield = 1 – DPU = 1 – 0.14 = 0.860
% Yield Yield = (1 – DPU) X 100 = (1 – 0.14) X 100 = 86 %
Sigma Level (σ) SIGMA LEVEL = Normsinv(Yield)+1.5 = 2.6
Advantages of Six Sigma Implementation
There are following three main advantages.
1. Helps in defining a customer’s requirement clearly.
2. Provides a metric to define the quality of processes using different types of
quality characteristics from both manufacturing and service areas.
3. Provides a link to an ambitious goal—reaching 6σ level.
The Three Strategies
The Six Sigma system recognizes three major strategies for enhancing
process quality. These strategies are used in three different situations:
1. Process improvement
2. Process design/redesign
3. Process management
Process Improvement
• This strategy will be appropriate when a problem results in customer
discontent.
• The goal of the process improvement is limited to seeking solutions to
a specific problem of concern while letting the overall structure of
associated processes remain the same.
Process Design/Redesign
• This involves a whole rethinking on the process, based on inputs from
customers.
• This is similar to the concepts of re-engineering used by some to
denote redoing an entire process when it has become ineffective due
to changes in technology or customer expectations.
Process Management
• In this strategy, processes are documented, and customer needs are
defined and updated on a regular basis.
• Quick, responsive action is taken when the process performance falls
short of customer needs and expectations.
The Two Improvement Process
• When used for process improvement, the methodology recommends
use of the sequence: Define, measure, analyze, improve, and control
—which is abbreviated as DMAIC (pronounced “deh-may-ihk”).
• When used in the context of process design/redesign, the sequence
of steps will be: Define, measure, explore, develop, and implement—
which is abbreviated as DMEDI (pronounced “deh-may-di”).
The Two
Improvement
Process
The Five Step Road Map
• Step 1: Identify Core Processes and Key Customers
• Step 2: Define Customer Requirements
• Step 3: Measure Current Performance
• Step 4: Prioritize, Analyze, and Implement Improvements
• Step 5: Expand and Integrate the Six Sigma System
Six Sigma
Road Map

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