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Practical Aspects of Implementing Six Sigma © Kamran Moosa – PIQC INSTITUTE OF QUALITY FEB 2008 JIDDAH In collaboration with Saudi Arabian Quality Council 1 Kamran Moosa PIQC Institute of Quality [email protected] Practical Aspects of Implementing Six Sigma 2 © PIQC - K. MOOSA piqc.com.pk

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Practical Aspects of Implementing Six Sigma

© Kamran Moosa – PIQC INSTITUTE OF QUALITY FEB 2008 JIDDAH In collaboration with Saudi Arabian Quality Council

1

Kamran MoosaPIQC Institute of [email protected]

Practical Aspects ofImplementing Six Sigma

2© PIQC - K. MOOSA

piqc.com.pk

Practical Aspects of Implementing Six Sigma

© Kamran Moosa – PIQC INSTITUTE OF QUALITY FEB 2008 JIDDAH In collaboration with Saudi Arabian Quality Council

2

3© PIQC - K. MOOSA

Contents

1. Strategic Quality Measurement & Management2. ISO 9000 Phenomenon & Quality Tools3. Fundamentals of Six Sigma4. Six Sigma Tools5. Quality of Testing Labs6. Six Sigma Implementation and Structuring7. Conclusion8. Question & Answers Session

Part 1

Strategic Quality Measurementand Management

Practical Aspects of Implementing Six Sigma

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What is Quality Management

Sub-discipline of Management ScienceTQM, TQC, CWQC, QMS, QA or simply Quality ManagementIt aims to define, set, control, and improve the effectiveness of an organization within its scope and limitations Introduced in Japan in 1950s, i.e. ~ 50 years oldInitially labeled as Quality Control, then expanded into QA, QMS and then TQM

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Why do we loose customers?(Research Data)

1% because of death3% because of change of place5% because of change in behavior9% because of wrong price strategy

14% because of insufficient product quality68% because of insufficient service quality

Practical Aspects of Implementing Six Sigma

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Good/Service Dominations

Cloth, Hardware, booksHouse

Automobile, AppliancesFast Food Restaurant

Air TravelHospitalization

Teaching, Govt., Religious

Manufacturing Standard Service Standard

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Even Manufacturershave more service departments

PRODUCTION / R&DPurchasing

Finance Security Admin

MIS Mainten-ance Testing

MANUFACTURING

SERVICES

Marketing

AfterSales

Services

Ser

vice

/Pro

duct

S

tand

ards

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Service Encounters(Every encounter of customer with the Service provider is a Service Encounter)

Back-end

InfectionControlMaint.

OperationLaundryTraining

MIS

AppointmentOn Phone

Doctor

Extras

Receptionist

ParkingAttendant

Nurse

Front-end

SE1SE2

SE3

SE4

SE5 SE6

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Evolution of Quality Field

Product Insp. to Process to System to Business to PerformanceControl (Opr Mgt ) Excellence Level

TQM – Wave II6 Sigma

KnowledgeMgt.

ChangeMgt

TQM – Wave IHRM

GROUPDYNAMICS

Teams

Benchmarking

BPR

TPM

JIT/MRP

QAISO9000

OPR MGT.

QCSPC

QualityCirclesInspection/

TestingMetrology

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Measuring Quality - Estimations

1. Rate of Rejections/Defects

5%-20% compared to <1% WC Companies

2. Costs: Rs 20 Lakhs - 20 Crore / year

3. Country-wide Rs 100 b / y (pvt sector)

1. Rate of Rework

10-30% compared to <1% WC Companies

meaning loss of one year after every three years

1. Rate of Complaints

1-3% (30,000 ppm) compared to around 100ppm (0.01%)

1. Clinical Deathsupto 10-30%

2. Wrong Diagnosis upto 40%

3. Wrong Post operative careupto 60-80%

1. Rate of Loss of Crops

upto 30%

2. Hatcheability Loss

10-15%

1. Duration in which Justice provided?

2. Right Justice provided?

1. Cycle Times for a particular job in government offices?e.g. to get license, to get electricity, to get phone, to get permits, to get information, to get Justice, etc.????

Performance Measurement is usually neglected at state level

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Changing Scope of “Quality”

ProductQuality

OrganizationalQuality

(Products, Systems,Depts, Processes )

from to

Practical Aspects of Implementing Six Sigma

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Quality is Effectiveness

Effectiveness is in fact Quality

&

The process of Making Effective is Quality Assurance

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Performance = Output + Outcome

ORG or

DEPT

Quality of Output

Quantityof goodsor servicedelivered

OUTPUTOUTCOME

Practical Aspects of Implementing Six Sigma

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ORGANIZATION

Output of Quality Management

Quality Management

Conformance&

Improvement

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ORGANIZATION

QA is an Improvement Intervention

Social Intervention

Technical InterventionPerformance

CULTURE

A

CULTURE

B

QA

Outcome 2

Sustainable Improvement = From A to B

Outcome1

Practical Aspects of Implementing Six Sigma

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Examples

Core CompetenceDuration of vacant posts% of Poor Hiring

Number of persons hiredNumber of Trainings

HRD

Measurement Error %Delays of testsCost of unit test

Number of testsTypes of Tests

TESTING DEPT.

% Defectives/RejectedCost of Production/itemNumber of items/unit time

Number items producedTypes of products produced

PRODUCTION DEPT.

Graduate Competency RateJob Placement RateDifference in Market Salary % of Satisfied Graduates% of Satisfied Employers

Number of StudentsNumber of TeachersNumber of ProgramsNumber of Branches

UNIVERSITY

Delivery RateDamage RateTransactions/day/person

Number of LettersNumber of Post OfficesNumber of Transactions

POST OFFICE

Quality Metrics1. # of tests delayed /

total files2. Average Duration of

delays / total delays

QualityObjectives

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Examples (Cont.)

Mortality RateMorbidity RateAcquired Infection RateRe-admission Rate% Patients leaving without full treatmentLab testing Error RateDelays in test resultsWaiting timePrescriptions not provided on timeNon-availability of medicinesEthical violations/complaints of doctors

Number of patients dealtNumber of Emergency treatedNumber of medicines givenNumber of tests in lab

HOSPITAL

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1st Stage of Quality Control

MANUFACTURING

PURCHASING

PLANNING

ADMIN

HRD

FINANCE

MIS / SEC /

QCPRODUCTION

STORES Internal Mnt.

PRODUCT/ SERVICE

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MANUFACTURING

PURCHASING

PLANNING

ADMIN

HRD

FINANCE

MIS / SEC /

PRODUCTION

STORES Internal Mnt.

QC

QC

QCQC

QC

QC

2nd Stage of Quality Control

PRODUCT/ SERVICE

Practical Aspects of Implementing Six Sigma

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MANUFACTURING

PURCHASING

PLANNING

ADMIN

HRD

FINANCE

MIS / SEC /

PRODUCTION

STORES Internal Mnt.

QC

QC

QCQC

QC

QC

QC

QC

QC

3rd Stage of Quality Control

PRODUCT/ SERVICE

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Practical Aspects of Implementing Six Sigma

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Monitoring Q’s for every dept/org.

Q1Q2Q3Q4

Q5Q6Q7Q8Q9

PRO

DU

CTI

ON

LAB

OR

ATO

RY

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Practical Aspects of Implementing Six Sigma

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Cont.

Q10Q11Q12Q13

Q14Q15Q16Q17Q18

MA

INTE

NA

NC

EA

DM

INIS

TRA

TIO

N

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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1. Production Control (90%) A2. Marketing (70%) B3. Production Planning (60%) C4. Finance (50%) D5. Quality Assurance (40%) D-6. Design (15%) F

_________________________________________OVERALLL AVERAGE (51%) D

Lack of Focus in organizations onQuality at each dept. (Survey example)

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Example

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Develop 5 years StrategicQuality Improvement Plan

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Around80 Quality

Metrics

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Make &UseQuarterlyQA Report

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US Dept of Treasury Performance Measurement Report

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US Treasury Performance Summary FY 2003

Total Performance Measures : 208Target Met : 132 (63%)Targets Not Met: 49 (24)%)Baseline Not Available : 27 (13%)Max improved Performance : 39 (21%)Estimated Performance : 13 (7%)

Practical Aspects of Implementing Six Sigma

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TQM/QA is Measurement Based Change Process

Exc

Good

Sat

Poor

V.Poor

Product/Service Outcomes

Change

Change

Change

Change

Change

Change

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Quality Control vs Inspection

Process and/orSystems

Fixing

PROCESS

MIXEDPRODUCT

C/A

PRODUCTIONTESTINGLABSMAINT.FINANCEADMIN,QAMARKETING

ProductPerformance

Checking

PRODUCT/SERVICEFIXING

Cycle B

Cycle A

OK

NotOK

Practical Aspects of Implementing Six Sigma

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Product Fixing

OK

NotOK

PRODUCTPerformancePROCESSES

Product, Process orSystems Fixing &

Improvement

Customers(Int/Ext)

Quality Assurance

data

FIELDPerformance

Product , Process orSystems Fixing& Improvement

data

Actions

PROCESSPerformance

dataActions

Actions

DESIGN

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Basic Concept of Quality Management

Every Dept. of firm

Section 1 Section 2 Section 3OutcomeMeasure

Outputs

Cus

tom

ers/

Use

rs

DataCollection& Reports

RootCause

Analysis

ProblemSolvingChange

3

2

1

Practical Aspects of Implementing Six Sigma

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8 Dimensions of Product Quality

Performance

Features

Reliability

Conformance

Durability

Serviceability

Aesthetics

Perceived Quality

(Ref: Garvin 88)

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1. Performance: primary operating characteristics of the product or service; they are usually measurable

2. Features: additional characteristics that enhance the product/services appeal to the user

3. Reliability: likelihood that a product will not fail within a specific time period4. Conformance: precision with which the product or service meets the specified

standards (AQL)5. Durability: measures the length of a product’s life6. Serviceability: speed with which the product can be put into service when it

breaks down, as well as the competence and behavior of the serviceperson. (MTTR)

7. Aesthetics: subjective dimension indicating the kind of response a user has to a product. It represents the individual’s personal preference-the way an individual responds to the look, feel, sound, taste, and smell

8. Perceived quality: a subjective dimension; it is the quality attributed to a good or service based on indirect measures

Practical Aspects of Implementing Six Sigma

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Five dimensions of Service Quality

Reliability

Responsiveness

AssuranceEmpathy

Tangibles

Accuracydependably Promptness

Helping attitude

CompetenceCourtesy

Credibilitysecurity

AccessCommunicationUnderstanding

needs

Physical Infrastructure

image

42© PIQC - K. MOOSA

1. Reliability: ability to perform a service reliably and dependably; it means the customer expectations are met consistently

2. Responsiveness: the willingness to help customers and provide prompt service (speed)

3. Assurance: the ability to communicate to the customer a level of competence and to provide the service with the necessary courtesy

4. Empathy: the approachability and the ability to communicate with an understanding the customer’s needs

5. Tangible: the appearance of the physical facilities, equipment, personnel, and communication materials.

Practical Aspects of Implementing Six Sigma

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MAINTENANCE SERVICES

PRODUCT: MAINTENANCEQUALITY OBJ: Reliability (e.g. MTBF, MTR), Conformity, Safety, Security,

Durability, Accessibility, ResponsivenessCUSTOMER(S): ProductionSUPPLIER(S): PurchasingQ.C.: Checking, Fixing/Correcting, Inspecting/Testing, Collecting and

Analyzing Testing Data, Collecting Root-Cause Analysis, Analyzing Root Causes, Providing suggestions to improve the product and usage, fixing systems/procedures/processes

Q.A.: e.g. process audits and reviews, Process Measures, Measure of CSI, Training on shortcomings, counseling of persons, preventive actions

For Example

44© PIQC - K. MOOSA

For ExampleAIRPORT SERVICES

SERVICE: CHECK InsQUALITY OBJ: Time, Comfort, Courtesy, Empathy, Reliability, Queue

Safety, Security, Informed, Caring, right taggingSTANDARD: say, time=10 min, comfort=8/10, Empathy=7/10, R=95%

Queue=3 min, Safety=no injury/mishap, Informed/Care=8/10CUSTOMER(S): PassengersINT. CUSTOMER: Flight Services and Flight OperationsCUSTOMER REQUIREMENTS: say time=5 min, comfort=8/10, E=9,

Reliability=100%, Queue=1 min, Safety=100% safe, Inf/Care=8/10

SUPPLIER(S): MarketingPARTNERS: Civil Aviation (parking, security, shops, etc.) Q.C.: Supervisors checking, complaint handling, quality measure, root-cause

analysis (monthly), fixing systems/procedures/processesQ.A.: e.g. bi-monthly audits and reviews, Process Measures, Measure of CSI,

Training on shortcomings, counseling of persons, preventive actions

Practical Aspects of Implementing Six Sigma

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Leadership for Quality

Poor Good

%

Corporate& Dept’l

Quality Objectives%

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Monitoring of Q’s is a tool to Control Quality

01

2

3

4

5

Q1 Q2 Q3 Q4 Q5

Practical Aspects of Implementing Six Sigma

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When an outcome is in trouble, we need to analyze and improve processes and systems

01

2

3

4

5

STOP

Process/SystemsNot followed

1

PROCESSCONTROL

ProcessNot effective

2

PROCESSIMPROVEMENTWITH PROBLEMSOLVING

ProcessNot suitable

3

PROCESSCHANGE

Level 1 AnalysisIncidences

Level 2 AnalysisFactors/Reasons

Part 2

ISO 9000 & Quality Tools

Practical Aspects of Implementing Six Sigma

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System Maturity

C

A

B

3 6 9 12 18 Time (months)

Mat

urity

Acceptable

Satisfactory

Good

Excellent

After 1 -2 years

60%

15%

25%

50© PIQC - K. MOOSA

ISO 9000 Lessons Learnt

1. A tangible QA Framework

2. Can be used as a strong tool for performance improvement

3. Wide support 4. Generic QA Model

- Possible for every organization

5. Third Party Certification

6. World-wide accepted

+ -1. More commercial than professional.2. Extrinsic effort of Quality3. Used more as a marketing tool rather than

performance improvement tool4. Threatened producers to lose markets,

especially in EU 5. Highly variable third party

Certification/Consulting. Competence of Auditors and integrity of independence is not fully controlled despite claims of accreditation

6. Weak International accreditation 7. Weak in non-contractual environment8. Little impacts on consumers

Practical Aspects of Implementing Six Sigma

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QFD

CustomerSurvey

DOE

FMEA

5 S

QUALITYCIRCLES

JIT/MRP

7 QCTools

SUPPLIERQA

SPC

Kaizen

TPM

Bench-marking

SIXSIGMA

Without using other TQM Tools, ISO 9000 is not effective

52© PIQC - K. MOOSA

9585 80

30 25 25 25 20 1510 5

0102030405060708090

100

ISO 9000

SPC

C. Survey

QC

C

Benchm

arking

Reengineering

Q. Aw

ard

Kaizen/5S

QPD

JIT

New

Mgt

Tools

%

Application of QM Tools in ISO 9000 Certified Firms (local survey, 1998)

Practical Aspects of Implementing Six Sigma

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Effectiveness of ISO 9000 QMS

9585 80 75 70 70

6040

0102030405060708090

100

Poor C

/A

Poor S

PC

Insuff. Mget

Rev

Poor

Auditors

Ineef. IQA

's

Poor Q

Objectives

Poor

Training

Poor V

endorC

ontrol

Fundamentals of

SIX SIGMA

Part 3

Practical Aspects of Implementing Six Sigma

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Six Sigma Definitions

1. A Management driven, scientific methodology for product and process improvement which creates breakthroughs in financial performance and Customer satisfaction. Source: Motorola

2. A methodology for pursuing continuous improvement in customer satisfaction and profit that goes beyond defect reduction and emphasizes business process improvement in general (Breyfogle III)

56© PIQC - K. MOOSA

Two Dimensions of Quality Mgt

Conformance (QA)

Low Med High

High

Med

LowImpr

ovem

ent (

CQ

I)

CompanyA

CompanyC

CompanyD

CompanyB

BenchmarksCompetitive

TargetsSixSigma

ISO9000

Practical Aspects of Implementing Six Sigma

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SS Approach is Problem SolvingCorrection B P RPreventive

actionCorrective

action

Fixing mistakes

ChangingSystems &Processes

FixingSystems

& Processes

FixingRoot-causes

58© PIQC - K. MOOSA

C

DMethods/Tools/Env’mnt/Material

Problem SolvingLogic

OK

NOTOK

C,B,A,D,F,B,

A

C,B,F,D,F,C,

B

C,B,B,C,F,B,D

C

HumanFactorEthicscompetenceApproach

MachineFactorVariabilityCapabilityconditions

Monthly classificationday-to-day

day-to-day Classification of

ImprovementIn Systems

B

Practical Aspects of Implementing Six Sigma

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Kaizen, Quality Circles andSix Sigma Problem Solving

Kaizen

Quality CirclesQuality Teams

Six Sigma Projects

CommonSense

Suggestions, No stat tools

Medium level problems

Basic Analysis7-SQC Tools

High value, Complex problemsAdvance

Statistical Analysis

60© PIQC - K. MOOSA

SS is a high potency Capsule to solve quality related problem

For improvingDay to day

Qualityissues

For improvingDay to day

QualityIssues

Require group efforts

Only for improvingHigh value, deep rooted

Qualityissues

Practical Aspects of Implementing Six Sigma

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SS as a Metric

A Metric that indicate how well a process is performing. A higher sigma means higher performance. A statistical measure of the

capability of a process.

σWhat is Sigma

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Sigma Value and Process Rating

1 Sigma

6 Sigma

5 Sigma

4 Sigma

3 Sigma

2 Sigma

CoQ<1%CoQ>25%

CoQ>40%

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(LSL) (USL)

-6σ -5σ -4σ -3σ -2σ -1σ +1σ +2σ +3σ +4σ +5σ +6σ

(LSL) (USL)

-6σ -5 -4 -3 -2 -1 +1 +2 +3 +4+5+6σ

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3 SigmaYield = 99.73% (OK)

0.27%, 2700 ppm Defects

3 SigmaYield = 93.32% OK

6.68%, 66,807 ppm Rej

99.73%93.32%

Process Oscillation -1.5 Sigma Shift Theory

Practical Aspects of Implementing Six Sigma

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1.5 σ Shift

6 σ

4.5 σ

USLLSL

3.4 DPMOWith shift

3.4 DPMOWith shift

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Sigma Table

Long Term

Process Shifted 1.5 σShort Term

Process Not Shifted

6σ5σ4σ3σ2σ1σ

99.99966099.9767099.379093.3269.1330.23

Yield (OK)%

2330.5399.9999433.40.00299.9999998

6,2106399.993766,8102,70099.73

308,70045,50095.45697,700317,30068.27

Rejectppm

Rejectppm

Yield (OK) %

Practical Aspects of Implementing Six Sigma

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Increasing # of Parts or Processesreduces quality level

1019365164

75%

Final Product Defect Rate

81%101090%55

64%202049%303036%404025%50%50%

Final Product OK Rate (Yield)

Part 2Defect Rate

Part 1Defect Rate

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Defect Rates

0.0004

0.001

0.1

1

2

3

4

5

10

15

20%

Def Rate%

99.6 4.299.999.999.999.999.9997 6

90 2.899 4.699.999.999.999.99 5.2

37 1.290 2.899.099.599.899.9 4.6

037 1.290 2.8959899 3.9σ01382909698 3.6σ0574869497 3.4σ01766829296 3.3σ0060 1.8779095 3.2σ0035598190 2.8σ0020447285 2.6σ0011336480% 2.4σ

1000 Parts

100 Parts10Parts

5 Parts

2 parts

Yield %

Practical Aspects of Implementing Six Sigma

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Vendors AQL% effect on final quality

12345678910

Assembly

Vendors (Def %)5%5%5%5%5%5%5%5%

5%5%

?

Yield: 60%40% Def

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Or if you have 10 processes

P1P2 P3 P4P5 P6 P7 P8 P9 10 FinalYield

?

Yield: 60%40% Def

5% 5% 5% 5% 5% 5% 5% 5% 5% 5%

ASSEMBLY

Yield (RTY) = (.95x.95x.95x.95x.95x.95x.95x.95x.95x.95 = 0.6)

σ =3.1 σ =1.7

Practical Aspects of Implementing Six Sigma

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Sigma Calculations

# Defects# Units

DPU(Defects/Unit)

# Defects# Units x # Opportunities

DPO(Defects/Opportunity)

Say10 Defects, 100 pairsDPU = 10/100 = 0.1 (10%)

Say10 Defects, 100 pairs, 2 opportunities / cartonDPO = 10/100x2 = 0.05 Or 5% for each type

One pair

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(cont.)

DPO x 106

DPMO(Defects/M. Opportunity) 10 Defects, 100 pairs

2 types of defectsDPMO = 0.05 x 106 = 50,000

Sigma Table

SigmaConsult Table with DPMO

From Sigma Conversion Table

50,000 DPMO = 3.1 σ

And Yield = 94.7%

One pair

Practical Aspects of Implementing Six Sigma

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Calculating Sigma

Company: IPPProduct: ElectricityCTQ: Up time / Down timeCTQ Measure: minutesCTQ Specs: no downtimeDefect measure: one min of no powerOpportunity/unit: 1 Total Defects in 2005: 500 minDPU = 500/525,000 = 0.00095 Yield: 525,000 – 500 x 100 = 99.90

525,000DPMO = DPU / O x 106 = 950 Sigma (from table) = 4.6 Sigma

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Calculating Sigma (2nd Example)

Company: PCB ManufacturingProduct: Printed Circuit BoardCTQ: Board FunctionalityCTQ Measure: Non Functioning of BoardCTQ Specs: All boards function properlyDefect measure: Any non-functioning boardOpportunity: Total # of parts + solder points (58)Defects in a lot of 1000 = 90 DPU = 90/1000 = 0.09Yield: = 99.84 % (Y= e –DPU)DPMO = 0.09 / 58 x 106 = 1552Sigma (from table) = 4.5 Sigma

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Six Sigma Programs

Design forSix Sigma

SixSigma

LeanSix Sigma

SS

LSS

DFSS

Elimination of Defects fromExisting Products and processes

Elimination of Wastes fromExisting Products and processes

Elimination of Defects fromNew Products and processes

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SS Roles and qualificaitons

Black Belt Black Belt

Green Belt Green Belt Green Belt Green Belt

Master Black Belt

Champions

Quality Council/Steering Committee

SponsorsProcess Owner

CoachTrainers

SS ProjectManagers

Team LeadersTeam Members

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SIX

SIG

MA

& L

EAN

SIX

SIG

MA

Six Sigma Methodologies

DMAIC

Define

Measure

Analysis

Improvement

Control

DMADV

Define

Measure

Analysis

Design

Verify

DES

IGN

FO

R S

IX S

IGM

A

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Six Sigma Frameworks

Six Sigma

SIPOC, CTQ,SPC, FMEA,DOE, QFD,CoQ, ANOVA,Hypothesis,Regression,MSA (R&R),QFD

Lean Six Sigma

5SValue MappingTime StudyTPMCellular Prod.Supply ChainTakt timePoke Yoke

DFSS

VOC,QFD, FMEA, CTQ Gage R&R, TRIZ, PughMatrix, DOE,ReliabilityAnalysis, SPCSystemsEngineering

DMAIC DMAIC DMADV

Program

Tools

VARIATIONDefects

Cost of Poor Quality

WASTE/SPEEDCycle time, Delivery

Cost of operation

RELIABILITY& ROBUSTNESSDesign Features

Methodology

Focus/Theme

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DMAIC Define

1. Customers and Critical to Quality (CTQs) 2. Problem Statement, Goals and Benefits) 3. Identify Champion, Process Owner and Team 4. Resources 5. Evaluate Key Organizational Support 6. Develop Project Plan and Milestones 7. Develop Process Map

Define the project goals, business justification, and project outcome

AC

TIV

ITIE

STO

OLS

1. Process Chart2. SIPOC Diagram3. WBS / Project Mgt4. CTQs5. Surveys

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DMAIC Measure

1. Define Defect, Opportunity, Unit and Metrics 2. Detailed Process Map of Appropriate Areas 3. Develop Data Collection Plan 4. Validate the Measurement System Analysis (MSA) 5. Collect the Data and extensive study6. Begin Developing Y=f(x) Relationship 7. Determine Process Capability and Sigma Baseline

Measure the baseline - determine current performance and long term process capability

AC

TIV

ITIE

STO

OLS

1. Process Flow Charting2. Data Collection Plan3. Benchmarking4. Measurement System Analysis (MSA), R&R5. Voice of Customer Gathering6. Process Sigma Calculations

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DMAIC Analyze

1. Define Performance Objectives 2. Identify Value/Non-Value Added Process Steps 3. Identify Sources of Variation 4. Determine Root Cause(s) 5. Determine Vital Few x's, Y=f(x) Relationship

Extensive exercise to carry out root-cause analysis

AC

TIV

ITIE

STO

OLS

1. Pareto Analysis, Time Series/Run Charts2. Scatter Plots, Regression Analysis3. Cause and Effect Matrix and Diagrams4. Test of Hypothesis5. Data Analysis6. Failure Mode and Effect Analysis

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DMAIC Improve

1. Perform Design of Experiments 2. Develop Potential Solutions 3. Define Operating Tolerances of Potential System 4. Assess Failure Modes of Potential Solutions 5. Validate Potential Improvement by Pilot Studies 6. Correct/Re-Evaluate Potential Solution

Improve the process with experimentations by eliminating defects and re-engineering.

AC

TIV

ITIE

STO

OLS

1. Mistake Proofing (Poke Yoke)2. Design of Experiments (DOE)3. House of Quality (Quality Function Deployment)4. Failure Mode and Effect Analysis5. Simulations

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DMAIC Control

1. Define and Validate Monitoring and Control System 2. Develop Standards and Procedures 3. Implement Statistical Process Control 4. Determine Process Capability and Cost of Quality 5. Develop Transfer Plan, Handoff to Process Owner 6. Verify Benefits, Cost Savings/Avoidance, Profit Growth 7. Close Project, Finalize Documentation, Reward/Award

Improve the process with experimentations by eliminating defects and re-engineering.

AC

TIV

ITIE

STO

OLS

1. Process Sigma Calculation2. Control Charts3. Cost of Quality Calculations4. Control Plan5. ISO 9001

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So what is a Six Sigma Company?

You don’t have to achieve the 6 Sigma performance level to qualify as Six Sigma…

An organization that is actively working to build the themes and practices of Six Sigma into its daily management activities, and is showing significant improvements in process performance and customer satisfaction

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Different Sigma Values for different products

Part A

Part D

Part C

Part B

6 σ5 σ4 σ3 σ2 σ1 σ

Six Sigma Tools

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Every tool is a junk unless used appropriately

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Six Sigma Tools

QualityTools

StatisticalTools

ManagementTools

Probability DistributionSamplingConfidence IntervalsHypothesis TestingControl ChartsCapability AnalysisCorrelations AnalysisRegression AnalysisDesign of ExperimentsAnalysis of Variance

Project ManagementOrganization BehaviorHuman Resource ManagementKnowledge ManagementSWOTMBO

QFDFMEA

SPCQC Tools

New Mgt ToolsBenchmarking

BPRCOQ

ISO 9000MSA

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Part 5

Quality of Testing Labs

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Measurement System Analysis

GageA tool, or an instrument or procedure used to measure or inspect a process parameter or a product characteristics.

Attribute GageUsed to make a go, no-go decision

Variable GagesPhysical measured dimension with variable data

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Purpose: To determine if a measurement system can generate accurate data, and if the accuracy is adequate to achieve the measuring objectives.Why MSA: to make sure that the differences in the data are due to actual differences in what is being measured and not to variation in measurement methodsIt is generally known that 30% to 50% of measurement systems are not capable of accurately or precisely measuring the desired metric

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Measurement Variation

Variation within a sample

Part-to-part variation

Variation due to operators

(Reproducibility)

Variation due to gages

Repeatability LinearityStabilityBias

Accuracy

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BiasInstrument bias is the difference between the observed average value of

measurements and the master value

LinearityA measure of the change in bias over the range of instrument capability

StabilityA measure of the change in bias over time

1 2 3 4 5 6 7 8 9 10

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AccuracyBias

LinearityStability

PrecisionRepeatability

Reproducibility

ConcernsWith

MEAN

Concern withVARIANCE

Calibration

GR&RStudy

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Part-to-PartVariation

MeasurementVariation

ObservedVariation

Part 6

Six Sigma Implementation& Structuring

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7 Stages of TQM Implementation (ESDDISA)

1st StageENVISIONINGAwareness, Training

Need AnalysisConfidence building

3rd StageDEVELOPING

Forming structureMaking procedure

2nd StageSTRATEGIZING

Intent, Focusing,Resourcing, Organizing,

Forming policy

4th StageDEPLOYINGTrial, First cycle of

implementation

5th StageIMPROVING

Analyzing initial trialsCorrecting / improving

Initial procedure

6th StageSUSTAINING

Controlling Regulating the

program

7th StageABANDONINGStop implementation

ISO9000TQM

MODEL/TOOL

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EFF

EC

TIV

EN

ES

S

1ST Year 2nd Year 3rd Year

Embryonic MaturityImprovement

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3 Components of Effective QA Structure

CORPORATE QACOORDINATOR

Q. COORD

SUB. DIV HEADAREA A

Q. COORD

SUB. DIV HEADAREA B

Q. COORD

SUB DIV HEADAREA C

Q. COORD

SUB DIV. HEADAREA D

Q. COORD

DEPT'L HEADS

DIV. HEADSType title here

CHIEF

QA PROJECT GROUP

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Three Players of QA Structure

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Six Sigma Structure

SIX SIGMA TEAMS

HODs

Sup

Mgrs

CEO

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Two important things not available as a standard with respect to QA/TQM

QA/TQMApproaches

Depended on many factorse.g.Company Culture and historycompetenceMoodResourceLocationPriorities

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Most TQM/Six Sigmadon’t reach Phase III

PHASE IDESIGN

PHASE IIDEPLOY

MENT

PHASE IIIREGULAR IMPLEMENTATION

EVENT REPEATED EVENTS (CULTURE)

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Schein’s 3 Levels of Culture

Artifacts

Espoused Values

Basic Assumptions(Core Values)

Ex: parking place

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Watch-out for slow changes; they may be fatal

Slow changes are not felt in organizations which maybe fatal in long run

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Conclusion1. Six Sigma is a sound program to improve any organization. It provides a

structured way to manage Quality. It is a necessary part of any forward looking organization.

2. It requires proper structure, core competence in Six Sigma Tools, strategic vision & drive (Leadership). It requires Intend, Interest as well as Intellect

3. ISO 9000 is a popular and common program to start with. However, it is never sufficient. It requires progressive expansion with other QM/QA Tools, e.g. SPC, Six Sigma, MSA, etc.

4. The program’s first step is to develop Quality Indicators/Metrics at every function and level. These metrics should be then monitored, reported, reviewed, and continuously improved on long term basis by the senior management.

5. Six Sigma requires proper Project Management as well as Social Management. Improving is changing.

6. We have already wasted a large portions of our professional lives by not bringing effective improvements in the organizations that we work in. The professional TQM/Six Sigma is an effective tool improve the performance of organizations on sustainable basis. Any genuine initiative is the starting point.

7. Top Management has a very strong role to play in managing Quality Assurance. Any interest in its implementation must be supported by a proper initiative. Without effective Initiative, interest, Intend and Intellect of senior management, there is no chance for its success.

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Learning Levels(Bloom’s Taxonomy 1956)

KnowledgeLevel

ComprehensionLevel

ApplicationLevel

AnalysisLevel

SynthesisLevel

PROFESSIONAL ETHICS

NATIONAL VALUES

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Finally

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500 . …………………

1.

Practical Aspects of Implementing Six Sigma

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Organization

TQM/Six

Sigma

Thank You

Lets Create togetherWORLD-CLASS

TRADITIONS

The End