1 ss overview.ppt 2003.ppt

8/10/2019 1 SS Overview.ppt 2003.ppt

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Overview of Six Sigma

6

Meaning of Sigma & Six Sigma

Historical Evolution of Six Sigma

Organization Structure of Six Sigma

Hierarchy in Six Sigma Structure


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Difference between Six Sigma and TQM

TQM

It is a scientific management concept that introduce & implement

the quality tools & principles in all the processes & sub processes of

business cycle that starts from marketing research and ends with

marketing research to ensure a continuous improvement.

Six Sigma.

It is a scientific management concept that introduce & implement

the quality tools & principles through methodologies in all the

processes & sub processes of business cycle that starts frommarketing research and ends with marketing research to ensure

breakthrough improvement.


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What is Sigma

The term Sigma taken from the Greek alphabet,

Is used to designate the distribution or spread about the

mean (average) of any parameter of product, process or

procedure. Lower is the better

Sigma capability/level is a metric which indicates how

the process is behaving.

Higher the Sigma capability/level, better the capability of

the process to produce.

6


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What is Six Sigma

6A comprehensive and flexible system forachieving, sustaining and maximizing businesssuccess. Six Sigma is uniquely driven by close

understanding of customer needs, disciplineduse of facts, data and statistical analysis, and

diligent attention to managing, improving and

reinventing business processes.


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What is Six Sigma

6The term SixSigmais a statistical measure of quantifyingdefects/errors and at SixSigmaa process is producing only3.4 defects/errors per million opportunities of error.

The term SixSigmaleads us to the perception that it is allabout engineers using complex statistics. While statisticsform an important part of Six Sigma training, themethodology also includes a spectrum of skills and toolssuch as leadership & project management, process mapping,

brainstorming techniques, qualitative analysis etc.


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What is Six Sigma

6Six Sigma was originally developed by Motorola in the1980s as a continuous quality improvement technique. Sincethen, Six Sigma has moved far beyond just counting defectsin a process or product. Today, it has evolved into a

methodology to improve overall business performance, andis closely tied to a companysbusiness strategies.

In summary, Six Sigma is a structured and scientificmethodology to:

Identify Improvement Opportunities.

Define and solve problems.


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What is Six Sigma

6It is a place where Science, Technology and Profitabilitymeet to achieve the companysgoals.

It is set of tools that company adopts or adapts to

increase its profits dramatically

It is a rigorous data driven method for dealing withdefects, waste and quality problems, in manufacturing ,services and other business activities.


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What is Six Sigma

Converts a business problem into statistical problem andfinds statistical solution.

It not only measures variability but also gives a tool to

measure process capability.

Makes quality tangible and measurable.

Forces Company to break the functions into simple and

measurable processes and are tracked for problems.


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What is Lean Six Sigma

Lean Six Sigma combines the two most important improvement

trends of our time: making work better (using Six Sigma) and

making workfaster(using Lean principles).


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Limitations of other tools


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Limitations of other tools

Lean Tools

QC Tools

SQC

SPC,

ISO 9000TQM

Benchmarking

Reengineering etc.,


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Levels ofSigmaand defect rate

Quality level % Quality Defective PPM*

3 Sigma 99.73 66807

4 Sigma 99.9937 6210

5 Sigma 99.999943 233

6 Sigma 99.9999998 3.4

* Parts Per Million


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Visible and hidden costs

ScrapReworkWarranty costs

Conversion efficiency of materialsInadequate resource utilizationExcessive use of materialCost of redesign and re-inspection

Cost of resolving customer problemsLost customers / GoodwillHigh inventory

Visible costs

Hidden Costs


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Cost of quality at various levels of Sigma

Sigma Defect rate(PPM) Cost of quality Competitive level

3.4 40%

6

5

4

3

2

1

WorldClass

IndustryAverage

NonCompetitive


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How Six Sigma works

Six Sigma is a high performance data driven

approach focused on analyzing the root causes ofbusiness problems and solving them. It ties theoutputs of a business directly to market place.


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Impact of Six Sigma

The Six Sigma strategy affects fivefundamental areas of business :-

1. Process improvement2. Product & service improvement3. Customer satisfaction4. Design methodology5. Supplier improvement

The business improvement mechanismis shown in the next slide.


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Six Sigma business improvement mechanism

Suppliers Inputs Process

Outputs

Business

Process

Critical

Customer

Requirements

Defects

Variation in output of processes

causes defects


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Aspects of Six Sigma

Six Sigma approach integrates the human and process elements of

improvement to produce breakthrough results.


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24 | 2007 QT&T Consulting (Asia) Pte Ltd. All rights Reserved | Singapore | Malaysia | India www.qtnt.com

Human elements

Strong leadership

Training

Customer focus

Project teams

Culture change


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Process elements

Analysis of variation

Disciplined approach

Quantitative measures

Statistical methods

Process improvement


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Move beyond 3 sigma

Until a few years back all statistical process controls were designed onthe basis of 3 sigma limits. It is only in the recent years that this concept

has been challenged and the organizations have started looking for qualitylevels beyond 3 Sigma.


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3 Sigma process

LSL USL

Mean=8

SD = 2

- 3 SD + 3 SD

2 3 4 5 6 7 8 9 1210 16151413111

Note :LSL is Lower specification limit and USL is Upper specification limit.

Understand a Sigma process


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4 Sigma process

2 3 4 5 6 7 8 9 1210 16151413111

LSL USLMean=8SD = 1.5

- 4 SD + 4 SD

Understand a Sigma process


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5 Sigma process

2 3 4 5 6 7 8 9 1210 16151413111

LSL USL

Mean=8

SD = 1.07

- 5 SD + 5 SD

Identify the Mistakes in the slide

6 Si


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6 Sigma process

LSL USLMean=8SD = 1

- 6 SD + 6 SD

2 3 4 5 6 7 8 9 1210 16151413111

P i i


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Precision

Lesser the standard deviation of the process, more precise or

consistent is the process

3 Si V 6 Si


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3 Sigma Vs 6 Sigma

The goal of Six Sigma program is to reduce the variation in every process to

such an extent that the spread of 12 sigmas i.e. 6 Sigmas on either side of

the mean fits within the process specifications. The figure on next slide

shows what this looks like.

3 Si V 6 Si


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3 Sigma Vs 6 Sigma

2 3 4 5 6 7 8 9 1210 16151413111

LSLUSL

6 Sigma curve

3 Sigma curve

In a 3 sigma process the values are widely spread along the center line,showing the higher variation of the process. Whereas in a 6 Sigma

process, the values are closer to the center line showingless variation in the process.

3 Si V 6 Si


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3 Sigma Vs 6 Sigma

3.4 DPMO with Shift of 1.5 sigma

2.0 DPBO with out shift

A t f hift ll d


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Amount of process shift allowed

2 3 4 5 6 7 8 9 1210 16151413111

LSL USL

SD = 1

1.5 SD 1.5 SD

Hi i l E l i f Si Si


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Historical Evolution of Six Sigma

Six Sigma approach was initially developed in

Motorola in 1980s

greatly refined during its application in GeneralElectric in 1990s.

Later on Allied signal, Honda, Sony, Canon, Polaroid,

Texas instruments and many more fortune 500companies across the globe.

In India: 2002 onward the concept has beenimplemented by several companies such as Wipro,

Satyam, HLL, L&T, Airtel, GE India, Six SigmaAlchemy etc.

Hi h i Si Si S


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Hierarchy in Six Sigma Structure

CHAMPION

MASTER BLACK BELT

BLACK BELT

WHITE BELT

YELLOW BELT

GREEN BELT

O i ti St t f Si Si


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Organization Structure of Six Sigma

Structure
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DMAIC

Overview of DMAIC Methodology
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Six Sigma Language

D f ti d D f t


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Defective and Defect

A nonconforming unit is a defective unit

Defect is nonconformance on one of many

possible quality characteristics of a unit that

causes customer dissatisfaction.

A defect does not necessarily make the unit

defective

Examples:Scratch on water bottle

(However if customer wants a scratch free bottle, then

this will be defective bottle)

Defect Opport nit


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Defect Opportunity

Circumstances in which CTQ can fail to meet.

Number of defect opportunities relate to complexity of unit.

Complex unitsGreater opportunities of defect than simple unitsExamples:

A units has 5 parts, and in each part there are 3opportunities of defectsTotal defect opportunitiesare 5 x 3 = 15

DPO (Defect Per Opportunity)


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DPO (Defect Per Opportunity)

Number of defects divided by number of defect

opportunities

Examples:

In previous case (15 defect opportunities), if 10 units

have 2 defects.

Defects per unit = 2 / 10 = 0.2

DPO = 2 / (15 x 10) = 0.0133333


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DPMO (Defect Per Million Opportunities)

DPO multiplies by one million

Examples:

In previous case (15 defect opportunities), if 10 units have 2

defects. Defects per unit = 2 / 10 = 0.2

DPO = 2 / (15 x 10) = 0.0133333

DPMO = 0.013333333 x 1,000,000 = 13,333

Six Sigma performance is 3.4 DPMO

13,333 DPMO is 3.7 Sigma

Yield


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Yield

Proportion of units within specification divided by the

total number of units.

Examples:

If 10 units have 2 defectives

Yield = (102) x 100 /10 = 80 %

Rolled Throughput Yield (RTY)

Y1 x Y2 x Y3 x . x Yn

E.g 0.90 x 0.99 x 0.76 x 0.80 = 0.54


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Thank You


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Exercise 1


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Exercise 2

1 ss overview.ppt 2003.ppt

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