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    SIX SIGMA

    ANKIT VIJAYVARGIYA

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    What is Six Sigma? Six Sigma is a highlydisciplined process that helps us focuson developing and delivering near-perfect productsand services.

    Why Sigma? The word is a statisticalterm that measures how far a givenprocess deviates from perfection. Thecentral idea behind Six Sigma is that if you can

    measure how many defects you havein a process, you can systematicallyfigure out howto eliminate them and get as close tozero defects as possible.

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    Sigma ( )

    A term used in statistics to represent standarddeviation, an indicator of the degree of variation in a set of measurements or a

    process. A one-sigma process produces691462.5 defects per million opportunitiesapercentage of satisfactory outputs of only30.854%.

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    Standard deviation

    A measure of the spread of data points inrelation to the mean. Its the mostcommon measure of variation in a setof data

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    Six Sigma

    A philosophy of managing that focuses oneliminating defects through practices thatemphasize understanding, measuring, and

    improving processes. Its based on thestatistical concept of six sigma, measuring aprocess at only 3.4 defects per millionopportunities (DPMO).

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    DPMO at sigma levels

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    HISTORICAL PERSPECTIVE ONSIX SIGMA

    In the mid-1980s, Motorola, under the leadership of Robert W. Galvin, was the initial developer of SixSigma. Most credit the late Bill Smith for inventingSix Sigma; Smith, a senior engineer and scientistwith n Motorolas Communications Division, hadnoted that its final product tests had not predicted thehigh level of system failure rates Motorola wasexperiencing. He suggested that the increasing levelof complexity of the system and the resulting highnumber of opportunities for failure could be possible

    causes for this. He came to the conclusion thatMotorola needed to require a higher level of internalquality, and he brought this idea to then-CEO BobGalvins attention, persuading him that Six Sigmashould be set as a quality goal.

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    Six Sigma: DMAIC

    Methodology Define

    Measure Analyze Improve

    Control

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    Define Key Items

    Customers, Value, Problem Statement Scope, Timeline, Team Primary/Secondary & OpEx Metrics Current Value Stream Map Voice Of Customer (QFD)

    (Quality Function Deployment)

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    10/2010

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    Measure

    Establish measurement capability Validate the database (transactional) Gage R&R (Repeatability & Reproducibility) Calibration is not enough

    Many (or most) measurement systems are not capable How good is the data you are using to make decisions?

    Fix the measurement system Enables calculation of process capability Enables calculation of alpha & beta risks

    This step is often skipped

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    Analyze(and fix the obvious)

    Find all KPOVs & KPIVs(Key Process Output Variables; Key Process

    Input Variables)

    FMEA, DOE, critical Xs, VA/NVA(Failure Modes Effects Analysis; Design Of

    Experiment)

    Graphical Analysis, ANOVA(Analysis Of Variance) Future Value Stream Map

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    13/2013

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    Control

    Management of Change Owned by project champion and value stream

    manager Critical to long term success of project

    Physical and cultural changes Measurement controls

    On-going metrics

    Visual Controls Enable workers to self-manage the process

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    14/2014

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    Next Project

    DefineCustomers, Value, Problem Statement

    Scope, Timeline, Team

    Primary/Secondary & OpEx Metrics

    Current Value Stream Map

    Voice Of Customer (QFD)

    MeasureAssess specification / Demand

    Measurement Capability (Gage R&R)

    Correct the measurement system

    Process map, Spaghetti, Time obs.

    Measure OVs & IVs / Queues

    Analyze ( and fix the obvious)Root Cause (Pareto, C&E, brainstorm)

    Find all KPOVs & KPIVs

    FMEA, DOE, critical Xs, VA/NVA

    Graphical Analysis, ANOVA

    Future Value Stream Map

    ImproveOptimize KPOVs & test the KPIVs

    Redesign process, set pacemaker

    5S, Cell design, MRS

    Visual controls

    Value Stream Plan

    ControlDocument process (WIs, Std Work)

    Mistake proof, TT sheet, CI List

    Analyze change in metrics

    Value Stream Review

    Prepare final report

    ValidateProject $

    ValidateProject $

    ValidateProject $

    Validate

    Project $Celebrate

    Project $

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    15/2015

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    Develop a focused Problem Statement and Objective Develop a Process Map and/or FMEA Develop a Current State Map Identify the response variable(s) and how to measure them Analyze measurement system capability Assess the specification (Is one in place? Is it the right one?)

    PracticalProblem

    ProblemDefinition

    Characterize the response, look at the raw data Abnormal? Other Clues? Mean or Variance problem?

    Time Observation Spaghetti Diagram Takt Time Future State Maps Percent Loading Standard Work Combination Use Graphical Analysis, Multi-Vari, ANOVA and basic

    statistical tools to identify the likely families of variability

    ProblemSolution

    Identify the likely Xs 5S Set Up Time Reduction (SMED) Material Replenishment Systems Level Loading / Line Leveling Cell Design Visual Controls Use Design of Experiments to find the critical few Xs Move the distribution; Shrink the spread; Confirm the results

    ProblemControl

    Mistake Proof the process (Poka-Yoke)

    Tolerance the process Measure the final capability

    Place appropriate process controls onthe critical Xs Document the effort and results

    IdentifyProblem

    Strategic Link to Business Plan defined in Project Selection Process Defined Business Impact with Op Ex Champion support Structured Brainstorming at all organizational levels Cause and Effect Diagrams identifying critical factors Primary and Secondary Metrics defined and charted Multi-Level Pareto Charts to confirm project focus

    Plan Execute

    Execute Plan

    k h h f

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    16/2016

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    Breakthrough performancegains

    2 308,5373 66,8074 6,2105 2336 3.4

    2 308,5373 66,8074 6,2105 233

    6 3.4

    PPMPPM

    (Distribution Shifted 1.5 )

    ProcessCapability

    ProcessCapability

    Defects per MillionOpportunities

    Defects per MillionOpportunities

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    17/2017

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    Basic ImplementationRoadmap

    Understand and DefineEntire Value Streams

    Deploy Key Business Objectives- Measure and target (metrics)- Align and involve all employees

    - Develop and motivate

    Define, Measure, Analyze, Improve

    Identify root causes, prioritize, eliminate waste,make things flow and pulled by customers

    Control-Sustain Improvement

    -Drive Towards Perfection

    Identify Customer Requirements

    Vision (Strategic Business Plan)

    Continuous Improvement (DMAIC)

    Identify Customer Requirements

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    18/2018

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    The Normal Curve and Capability

    LSL USL

    Poor ProcessCapability

    Very HighProbabilityof Defects

    LSL USL

    ExcellentProcess

    Capability

    Very LowProbabilityof Defects

    Very HighProbabilityof Defects

    Very LowProbabilityof Defects

    Low Sigma Low Sigma High Sigma High Sigma

    Wh b L TOC

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    19/2019

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    What about Lean, TOC,TQM

    Six Sigma Remove defects, minimize variance

    Lean

    Remove waste, shorten the flow TOC

    Remove and manage constraints

    TQM Continuous Improvement

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    Does it work?.

    Source: American Customer Satisfaction Index, U Michigan, HBR, 2001

    199973companies

    RalstonPurina

    Quaker OatsHilton Hotels

    Coca-ColaUnileveretc.

    The top companies in Customer Satisfaction grow MVA atnearly twice the rate of their poor-performing counterparts.

    $23

    $42

    0

    10

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    3040

    50

    Low HighCustomer Satisfaction Index Score

    M a r

    k e t V a

    l u e

    A d d

    e d

    In Billions $