six sigma an introduction. history of six sigma motorola (1987) motorola (1987) texas instruments...
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Six SigmaSix SigmaAn An
IntroductionIntroduction
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History of Six History of Six SigmaSigma
Motorola (1987)Motorola (1987) Texas Instruments (1988)Texas Instruments (1988) IBM (1990)IBM (1990) ABB (1993)ABB (1993) Allied Signal (now Honeywell) Allied Signal (now Honeywell)
and Kodak (1994)and Kodak (1994) GE (1995)GE (1995) Whirlpool, PACCAR, Siebe, Whirlpool, PACCAR, Siebe,
Iomega, Polaroid, Sony, Home Iomega, Polaroid, Sony, Home Depot, Penske (1996/99)Depot, Penske (1996/99)
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What Is Six What Is Six Sigma?Sigma?
Basically it is a statistically Basically it is a statistically based methodology for based methodology for process improvement.process improvement.
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Six Sigma: A Six Sigma: A PhilosophyPhilosophy
Continuous improvementContinuous improvement Virtually defect-freeVirtually defect-free New way of doing businessNew way of doing business Innovation and creativityInnovation and creativity Reduce variability with the process.Reduce variability with the process. Based on precision and accuracy-Based on precision and accuracy-
leading to data driven decisionsleading to data driven decisions
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Six Sigma: Six Sigma: Where and What Can It Be Where and What Can It Be
Used For?Used For? Currently used in:Currently used in:
– ManufacturingManufacturing– MilitaryMilitary– SalesSales– Transactional servicesTransactional services
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Six Sigma: A Six Sigma: A MeasureMeasure
Sigma Sigma (() Level) Level
Defects per Defects per Million Million
Opportunities Opportunities (ppm)(ppm)
22 308,537308,537
33 66,80766,807
44 6,2106,210
55 233233
66 3.43.4
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6 55 54 53 5
Upper SpecLower Spec
+3
+3
Process
Tolerance
3 Sigma Level Process:3 Sigma Level Process:No Mean ShiftNo Mean Shift
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8 07 06 05 04 03 02 0
+3
Lower Spec Upper Spec
Process
Tolerance
Six Sigma Level Process:Six Sigma Level Process:No Mean ShiftNo Mean Shift
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99% versus 99% versus 99.99966%99.99966%
Pretty much the same. Pretty much the same.
Right?Right?
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99% Good 99.99966% GoodPractical MeaningPractical Meaning
U.S. Postal System20,000 lost articles / hr 7 lost articles / hr
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99% Good 99.99966% GoodPractical MeaningPractical Meaning
Medical Profession200,000 Wrong Drug Prescriptions/Year
68 Wrong/Year
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99% Good 99.99966% GoodPractical MeaningPractical Meaning
Airline System2 short/long landings / day 1 short/long / 5 years
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The Goal of Six SigmaThe Goal of Six Sigma
The The Reduction of Reduction of VARIATION!VARIATION!
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Sources of VariationSources of Variation
MachinesMachines MaterialsMaterials MethodsMethods ManpowerManpower MeasurementMeasurement Mother NatureMother Nature
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Optimized Process
30+ Inputs
8 - 10
4 - 8
3 - 6
Found Critical X’s
Controlling Critical X’s
10 - 15
All X’s
1st “Hit List”
Screened List
Measure
Analyze
Improve
Control
The Funneling EffectThe Funneling Effect
Define
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Six Sigma BreakthroughSix Sigma Breakthrough
Six SigmaBreakthrough
3 Sigma Level
6 Sigma Level
Perf
orm
an
ce
BAD
GOOD
Time
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Let’s Look At A Let’s Look At A Common Common Example.Example.
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The Dreaded Fast Food The Dreaded Fast Food Drive Thru!Drive Thru!
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What’s The Most What’s The Most Important Thing Important Thing
At The Drive At The Drive Thru?Thru?
THE WAIT TIME!
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Let’s Look At Let’s Look At Current Drive Thru Current Drive Thru
Wait Times.Wait Times.
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1612840
Median
Mean
9876543
1st Quartile 2.3750Median 4.87503rd Quartile 9.0000Maximum 15.0000
4.1437 8.1313
2.8088 9.0000
3.2397 6.2221
A-Squared 0.50P-Value 0.185
Mean 6.1375StDev 4.2600Variance 18.1479Skewness 0.562363Kurtosis -0.728339N 20
Minimum 0.5000
Anderson-Darling Normality Test
95% Confidence I nterval for Mean
95% Confidence I nterval for Median
95% Confidence I nterval for StDev95% Confidence I ntervals
Summary for Drive In Wait Time
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Observation
Indiv
idual V
alu
e
191715131197531
20
10
0
-10
_X=6.14
UCL=19.72
LCL=-7.44
Observation
Movin
g R
ange
191715131197531
16
12
8
4
0
__MR=5.11
UCL=16.68
LCL=0
I-MR Chart of Drive In Wait Time
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1612840-4
LSL USLTarget
LSL 0.7Target 1.5USL 13.58Sample Mean 6.1375Sample N 20StDev(Within) 5.13884StDev(Overall) 4.31643
Process Data
Cp 0.42CPL 0.35CPU 0.48Cpk 0.35
Pp 0.50PPL 0.42PPU 0.57Ppk 0.42Cpm 0.04
Overall Capability
Potential (Within) Capability
PPM < LSL 50000.00PPM > USL 50000.00PPM Total 100000.00
Observed PerformancePPM < LSL 145001.01PPM > USL 73769.00PPM Total 218770.01
Exp. Within PerformancePPM < LSL 103884.81PPM > USL 42333.47PPM Total 146218.28
Exp. Overall Performance
WithinOverall
Drive In Wait Times
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What Does The Data What Does The Data Show Us?Show Us?
The average wait time for the The average wait time for the drive thru is over 6 minutes!drive thru is over 6 minutes!
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Lean Six Sigma: A Powerful Methodology (DMAIC)
MeasureDefine ImproveAnalyze Control
what is important to the customer:
Project Selection
Team Formation
Establish Goal
how well we are doing:
Collect Data
Construct Process Flow
Validate Measurement System
the process:
Analyze Data
Identify Root Causes
the process gains:
Ensure Solution is Sustained
the process performance measures:
Prioritize root causes
Innovate pilot solutions
Validate the improvement
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2.01.51.00.5
Median
Mean
2.01.81.61.41.21.0
1st Quartile 1.0000Median 1.50003rd Quartile 2.0000Maximum 2.2500
1.1412 1.6488
1.0000 1.9412
0.4125 0.7922
A-Squared 0.65P-Value 0.075
Mean 1.3950StDev 0.5424Variance 0.2942Skewness -0.08921Kurtosis -1.20009N 20
Minimum 0.5000
Anderson-Darling Normality Test
95% Confidence I nterval for Mean
95% Confidence I nterval for Median
95% Confidence I nterval for StDev95% Confidence I ntervals
Summary for Drive In Time After Six Sigma
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Observation
Indiv
idual V
alu
e
37332925211713951
16
12
8
4
0
_X=1.40UCL=3.03
Before After
Observation
Movin
g R
ange
37332925211713951
16
12
8
4
0__MR=0.62UCL=2.01LCL=0
Before After
I-MR Chart of Drive In Wait Times
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12.2510.508.757.005.253.501.750.00
LSLTarget
USL
LSL 0.7Target 1.5USL 13.58Sample Mean 1.395Sample N 20StDev(Within) 0.432563StDev(Overall) 0.549568
Process Data
Cp 4.96CPL 0.54CPU 9.39Cpk 0.54
Pp 3.91PPL 0.42PPU 7.39Ppk 0.42Cpm 0.48
Overall Capability
Potential (Within) Capability
PPM < LSL 100000.00PPM > USL 0.00PPM Total 100000.00
Observed PerformancePPM < LSL 54059.88PPM > USL 0.00PPM Total 54059.88
Exp. Within PerformancePPM < LSL 103002.06PPM > USL 0.00PPM Total 103002.06
Exp. Overall Performance
WithinOverall
Drive In Wait Times After Six Sigma
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Six Sigma: A Powerful Methodology (DMAIC)
MeasureDefine ImproveAnalyze Control
what is important to the customer:
Project Selection
Team Formation
Establish Goal
how well we are doing:
Collect Data
Construct Process Flow
Validate Measurement System
the process:
Analyze Data
Identify Root Causes
the process gains:
Ensure Solution is Sustained
the process performance measures:
Prioritize root causes
Innovate pilot solutions
Validate the improvement
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Six Sigma is a philosophy of continuous Six Sigma is a philosophy of continuous improvement.improvement.
Six Sigma measures defects in a process. Six Sigma measures defects in a process. One can expect 3.4 defects per million One can expect 3.4 defects per million
opportunities in a six sigma level process.opportunities in a six sigma level process. Six Sigma is a methodology that includes Six Sigma is a methodology that includes
defining, measuring, analyzing, improving, defining, measuring, analyzing, improving, and controlling a process.and controlling a process.
Summary of Summary of Key PointsKey Points