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IntroductionofSixSigma,BeltonGroupRexWong,ScopeofModule,WhatisSixSigmaWhytheneedforSixSigmaHowtoapplySixSigma,WhatisSixSigma?,SixSigmaisacomprehensiveandflexiblesystemforachieving,sustainingandmaximizingbusinesssuccess.Itisuniquelydrivenbycloseunderstandingofcustomerneeds,disciplineduseoffacts,dataandstatisticalanalysis,withdiligentattentiontomanaging,improvingandreinventingbusinessprocesses.PeterSPande,RobertPNeuman,RolandRCavanaghTheSixSigmaWay(McGrawHill,2000),SixSigmaIsThreeThings,AstatisticalmeasurementAbusinessstrategyAphilosophy,1)SixSigmaAStatisticalMeasurement,Itprovidesaquantitativeperformanceassessmentofourproducts,servicesandprocesses.Itallowsforcomparisonsagainstothersimilarordissimilarproducts,servicesandprocesses.Itprovidesfeedbackonhowfaraheadorbehindweare.,SixSigmahelpstoestablishourcourseandtogaugeourpaceintheracefortotalcustomersatisfaction.,SixSigmaAbusinessstrategy,ImprovedSigma-RatingofProcess,CostOfPoorQuality(COPQ),LostOpportunityHiddenFactory,(Difficultorimpossibletomeasure),COPQisafunctionofSigmaCapability,InspectionWarrantyScrapReworkRejects,MoreSetupsExpeditingCostsLostsalesLateDeliveryLostCustomerLoyaltyExcessInventoryLongCycle-TimesEngineeringChangeOrders,CostOfPoorQuality(COPQ),3)SixSigmaAphilosophy,SixSigmaisaboutworkingsmarter,notharder.DiscoverandneutralizeharmfulsourcesofvariationMistakesarereduced(oreliminated)ImprovedprocesscapabilitySigmaratinggoesup,QualityBreakthrough,WhyneedsofSixSigma?,ThegoalofSixSigmaisnottoachievesixsigmalevelsofquality(i.e.3.4dpmo).,SixSigmaisaboutimprovingprofitability;improvedqualityandefficiencyareimmediateby-products.,SixSigmaaggressivegoal,Sigmaisastatisticalunitofmeasurethatreflectsprocesscapability.Thesigmascaleofmeasureisperfectlycorrelatedtosuchcharacteristicsasdefects-per-unit,parts-permilliondefective,andtheprobabilityofafailure/error.,PPM,ProcessCapability,DefectsperMillionOpp.,SixSigmaProcess,m,PointofInflection,1s,T,USL,p(d),123456,s,BenefitofSixSigma,CostreductionProductivityimprovementMarket-sharegrowthCustomerretentionCycle-timereductionDefectreductionCulturechangeProduct/servicedevelopment,Profits,CustomersNeedsInternalMetrics,Delivery,Price,Quality,Customer,Supplier,Need,CycleTime,Cost,Defects,Do,HowtoapplySixSigma?,Unlikeconventionalimprovementprogramswhichfocusesonimprovingthedefectsonthe“output”,SixSigmafocusesonthe“process”thatcreatesoreliminatesthedefects.SixSigmaseekstoreducevariabilityinaprocessbymeansofasystematicapproachcalledtheBreakthroughStrategy.,SixSigmaapproach,IdentifytheCustomersNeed,CenteraroundtheTarget,FocusofSixSigma?,Theoutput(Y)isperceivedasafunctionoftheinput(X).,BreakthroughStrategy,BreakthroughStrategy,Define,TheDefinephasesetsthestageforasuccessfulSixSigmaprojectbyaddressingthefollowingquestions:,Whatistheproblemofourfocus?Whatsourgoal?Andbywhen?Whosthecustomerimpacted?WhataretheCTXsin-concern?Whatstheprocessunderinvestigation?,ProjectDefinition,ImprovetimetomarketforallproductsLeadtheindustryinkeytechnologiesCreateworld-classmanufacturingprocessesDevelopstrategicsupplierrelationshipsProvidebest-in-classproductandprocessqualityDevelopstrategicrelationshipswithkeycustomersBecomeanemployerofchoice,BaselineMetricData,BaselineTheaveragelong-termdefectlevelofaprocesswhenallinputvariablesintheprocessarerunninginanunconstrainedfashion.EntitlementThebest-caseshort-termdefectlevelofaprocesswhenallinputvariablesintheprocessarecenteredandin-control.BenchmarkThedefectleveloftheprocessdeemedbycomparisontobethebestprocesspossible.,eg:bestWinBenchnumbersagainstMaxtor,Fujitsudrives,BreakthroughImprovement,CostofQuality,HardSavingsPotentialSavingsSoftSavings,Measure,TheMeasurephaseservestovalidateorrefinetheproblem,andtobeginthesearchforrootcauses.Itaddresses,thefocusandextentoftheproblem,basedonmeasuresoftheprocess,thekeydatarequiredtonarrowtheproblemtoitsmajorfactorsorvitalfewrootcauses.,CapabilityAnalysisConventionalMetrics,RejectRateinpercent(e.g.7.4%)inratio(e.g.0.074)inpartspermillion(e.g.74,000DPPM)Yieldinfirst-timeyieldinfinalyield,CapabilityAnalysis,Defectperunit(DPU),DefectsPerUnit:Theaveragenumberofdefectsperunitproduced.,DefectRate=#Defects/#Units=7/5=1.4dpu,DefectsPerMillionOpportunities(DPMO),Opportunities:Thenumberofpossibilitiesfordefectcreationinanyunitofproductprocessorsequenceofprocesses.,1.ArmHeight2.Armthickness3.BoreholeDia4.SwgaeholeDia5.Roughness6.Teardropprofile7.Roll8.Pitch,NumberofOpportunities=OpportunitiesperUnitNumberofUnits=85=40DefectRate=#Defects/#Opportunities=(7/40)106=175,000dpmo,DPMOvsSigmaCapability,First-timeyield(Yft),First-TimeYieldisthenumberofunitsthatpassaparticularinspection,comparedwiththetotalnumberofunitsthatpassthroughthatpointintheprocess.,First-TimeYield,Yft=968/1000=0.968,Throughputyield(Ytp),ThroughputYieldistheprobabilitythataunitofproductorservicewillpassthroughagivenprocesssteperror-free.ThroughputYield,Ytp=eDPU,(40Defects),ThroughputYield,Ytp=e-(40/1000)=0.961,FinalYield(Yf),ProcessA,ProcessB,ProcessC,FinalYield,Yf=QuantityShipped/QuantityBuilt=800/1,000=0.80,Ashortcomingoffinalyieldisthatitfailstoconsiderthe“hiddenfactory”orrework.HiddenFactory:adhocsystemsandprocessessetuptocorrecterrorsmadeduringthemainstreamprocess.,RolledThroughputYield(Yrp),RolledThroughputYield=Ytp(A)Ytp(B)Ytp(C)=0.74080.63930.5824=0.2758,ProcessA,50,Scrap,Rework,200,150,ProcessB,800,Input(950),25,Scrap,Rework,300,275,ProcessC,650,Input(925),125,Scrap,Rework,250,125,Defects=300Ytp(A)=e300/1,000=0.7408,Defects=425Ytp(B)=e425/950=0.6393,Defects=500Ytp(C)=e500/925=0.5824,Defects=300,RolledThroughputYield(Yrp),Therolledthroughputyieldistheprobabilitythataunitofproductorserviceisabletopassthroughtheentireprocessdefect-free.Itisafunctionofthedefectrate,andhenceprovidesabetterestimateoftheamountofreworkrequired.Rolledthroughputyieldcanbeimprovedbyhavinghigherthroughputyieldsateachprocessstepreducingthenumberofprocesssteps,SigmaValue,SigmaValue(Z-Score):Thesigmavalueisderivedfromtheprobabilityofadefectinaprocessandisusedtocompareperformanceacrossproductsorprocessesz-Scoreismostaccuratelydeterminedbyusingtheequationofz=e(-DPU),Analyze,IntheAnalyzephase,practicalbusinessproblemsareturnedintostatisticalproblems.Thestatisticaltoolsandtheorderinwhichtheyareappliedwilldependontheproblemandprocess,andtheapproachtotheproblem.,Improve,TheImprovephaseseekstoaddressthefollowing:,Whatpossibleactionsorideasrequiredtoaddresstherootcauseoftheproblem,andtoachievethegoal?Whichoftheideasareworkablepotentialsolutions?Whichsolutionwillmostlikelyachievethegoalwiththeleastcostordisruption?Howcanthechosensolutionbetestedforeffectiveness,andthenimplementedpermanently,Control,IntheControlphase,actionsareestablishedtoensurethattheprocessismonitoredcontinuouslyforconsistencyinqualityoftheproductorservice.,Implementongoingmeasuresandactionstosustainimprovement,Realization,IntheRealizephase,ownershipoftheprojectistransferredtothefinancerepresentative,fortrackingoffinancialbenefitsoftheproject.,Champion,DefinethepathforSixSigmaimplementationacrosstheorganization.Carefulselectionofhigh-impactprojects.Supportdevelopmentof“statisticalthinking”.RealizethegainsbysupportingSixSigmaprojectsthroughallocationofresourcesandremovalofroadblocks.ImplementationofBlackBeltrecommendations.Ensurethatprojectopportunitiesareacteduponbytheorganizationsleadershipandthefinancedepartment.Recognitionofeffortsandcontributionsbythepeople.,BlackBelt,ActasBreakthroughStrategyexpertsandenthusiasts.Identifythebarriers.Managementofproject:fromplanning,throughexecution,torealization.Reportprogresstoappropriateleadershiplevels.Determinethemosteffectivetoolstoapply.Gatherinputfromknowledgeablesources,fromoperatorstomanagers.GreenBeltTrainingMonitor&provideguidanceofGreenBeltprojects.,GreenBelt,FunctionasGreenBeltsonapart-tim

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