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Six Sigma

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Six Sigma Six Sigma Revolution Deming s teaching about quality Quality initiatives: SPC, Just-in-time, TQM Motorola in 1980 s GE and AlliedSignal in 1990 s ... – PowerPoint PPT presentation

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Title: Six Sigma


1
Six Sigma
2
Six Sigma Revolution
  • Demings teaching about quality
  • Quality initiatives
  • SPC, Just-in-time, TQM
  • Motorola in 1980s
  • GE and AlliedSignal in 1990s
  • Radical Changes in products and services
  • Companies
  • TI, ABB, DuPont, Ford, Dow Chemical, Johnson
    Controls, BASF, American Express, Nokia, Toshiba,

3
What is Six Sigma?
  • Vision
  • Philosophy
  • Company Strategy
  • Method
  • Culture
  • Tool

4
The Cost of Poor Quality (COPQ)
Warranty
Inspection
Tangible Quality Costs
Rework
Rejects
Scrap
Lost sales
Lost Opportunities
Late delivery
Hidden Factory
More Setups
Engineering change orders
Expediting costs
Lost Customer Loyalty
Excess inventory
Long cycle times
5
The Nature of the Process
On-target,
less variation
Variation
Off-Target
Six Sigma goal identifies and controls process
variations and targets.
Six Sigma methodology identifies processes that
are off-target,
6
What is Six Sigma?
  • Integrates
  • Customer focus
  • Breakthrough improvement
  • Continuous improvement
  • People Involvement
  • Defines goals and performance metrics that yield
    clear and measurable business results.
  • Applies statistical tools to achieve breakthrough
    financial gains

7
Six Sigma Focus
  • Meeting customer needs
  • Rapid breakthrough improvement
  • Process capability and improvement
  • Positive and deep culture change
  • Real financial results that impact the bottom
    line

8
Structure / Roles
9
Building the 6? Team
  • Executive Management
  • Set meaningful goals and propel implementation of
    six sigma in the organization
  • Champion
  • Create general scope and set strategic direction
    of the projects and teams
  • Drive project success by removing obstacles and
    allocating sufficient resources
  • Master Black Belt
  • Consults, trains and mentors the local
    organization on Six Sigma
  • Black Belt
  • Delivers successful projects (high corporate
    gains) using the Breakthrough Strategy
  • Green Belt
  • Delivers local projects (lower monetary gains)
    using the Breakthrough Strategy
  • Other key members
  • Process Owner maintains system improvements at
    project completion
  • Process Sponsor provides resources, time, money
    and direction of your project
  • Financial Analyst verifies the financial gains
    of the project
  • Team members implement the steps for six sigma
    success

10
What is Sigma?
  • s (sigma) - A Greek letter
  • In statistics - the standard deviation from the
    average/mean
  • Assumption of Gaussian/Normal distribution
  • Six Sigma Methodology uses s to define the
    capability of a process
  • As the standard deviation of your process
    decreases, the sigma level of your process
    increases.

11
Normal/Gaussian Distribution
34.13
34.13
13.06
13.06
2.14
2.14
0.13
0.13
-3s -2s -1s m 1s
2s 3s
68.26
95.46
99.73
68.26 of the population is within /- 1
of the
??
?
12
Process Capability
  • 6s process is to get acceptable results through
  • Identification of variations
  • Quantification of variations
  • Elimination/control of variations

USL
LSL
Defects
Defects
Acceptable
13
Six Sigma - Goal
s
Defects per Million Opp.
1
691,462
308,537
2
66,807
3
6,210
4
233
5
3.4
6
14
Six Sigma -- Practical Meaning
99.99966 Good (6 Sigma)
99 Good (3.8 Sigma)
16,000 lost articles of mail per hour
5.4 articles lost per hour
22,000 checks deducted from the wrong bank
account each hour
7.5 checks deducted from the wrong bank account
each hour
500 incorrect surgical operations per week
1.7 incorrect operations per week
2 unsafe plane landings per day at OHare
International Airport in Chicago
1 unsafe plane landing every four years
50 newborn babies dropped at birth by doctors
each day
1 newborn baby dropped at birth by doctors every
2 months
Source Six Sigma Revolution, George Eckes
15
Overall Approach
Define
Define Problem
Measure
Practical Problem
Analyze
Statistical Problem
Statistical Solution
Improve
Control
Practical Solution
16
The Strategy
USL
LSL
  • Characterize
  • Optimize
  • Breakthrough

T
USL
LSL
T
USL
LSL
T
USL
LSL
17
The 6 Sigma Breakthrough Method
  1. Define project and scope
  2. Establish process

D
Define
  1. Identify key input/outputs variables
  2. Identify process capability/ measurement system

M
Characterization
Measure
5 Establish Product Capability 6 Identify
Variation Sources
A
Analyze
7 Screen Potential Causes 8 Verify Variable
Relationships
I
Improve
Optimization
9 Validate Measurement System 10 Implement
Process Controls
C
Control
18
Defining the Process
  • Team members who understand the process
  • Put together a flow of the process
  • An common foundation for team activity
  • Identification of outputs for measurement and
    capability studies
  • Estimates of sigma levels at each step

19
Project Scope
  • Problem statement
  • Goals/objectives for the team
  • Measurable gains (monetary terms)
  • Milestone
  • Customer needs and requirements

20
Process Mapping
  • What is process mapping?
  • Graphical depiction of the ACTUAL process
  • What will the tool identify?
  • All value added and non-value added process steps
  • Process inputs (Xs)
  • Process or product outputs (Ys)
  • Data collection points

21
Basic Flowchart Symbols
Activity
Start / Stop
Flow Line
Decision Point
A
A
Connector
22
Basic Structure
  • What are the steps to capture?
  • What are the operational steps?
  • What are the decision points?
  • Where are the problem area?

23
Versions of a Process
What You Think It Is...
What It Actually Is...
What You Would Like It To Be...
24
Preparing the Process Flowchart
  • Team Effort
  • Engineers
  • Line Operators
  • Line Supervisors
  • Maintenance Technicians
  • Inputs to Flowcharts
  • Brainstorming
  • Operator Manuals (SOPs, AOPs, etc.)
  • Engineering Specifications
  • Operator Experience
  • 5Ms and an E (Fishbone)
  • Machine (Equipment), Method (Procedures),
    Measurement, Materials, Manpower (People),
    Environment

25
Measurement Phase
  • The input/output variables
  • The capability of the process
  • The defects in the process
  • Sigma level

26
Purpose of Measurement Phase
  • Identify and define defects
  • Identify key input variables (Xs) and key output
    variables (Ys)
  • Document the existing process
  • Establish a data collection system for your Xs
    and Ys if one does not exist
  • Evaluate measurement system for each key output
    variable using CE, FMEA, etc.

27
The Importance of Defects
  • Since Six-Sigma focuses on reducing defects, it
    is necessary that each project definition clearly
    specifies the defect(s) that will be reduced
  • Count the number of times the letter f appears
    in the following statement

Six Sigma Revolution, George Eckes, pg 2
28
A simple test
13
  • What was your answer?

The final information are the results of years of
scientific studies and were often combined with
years of experience. We must often configure
the files for the final report during the
conference.
29
What Causes Defects?
  • Variation due to
  • Manufacturing processes
  • Supplier (incoming) material variation
  • Unreasonably tight specifications (beyond
    customer needs)
  • Unstable Parts and Materials
  • Inadequate training
  • Inadequate Design Margin
  • Insufficient Process Capability

30
How Do We Improve Capability
  • Understand that the Outputs (Ys) are determined
    by Inputs (Xs).
  • If we know enough about our Xs we can accurately
    predict Y without having to measure it.
  • If we dont know much about our Xs, then we have
    to resort to inspection and test.
  • If can control the Xs, then we reduce the
    variability in Y, which decreases defects, and
    possibly, eliminates/reduces inspection and test.

Y F (x1, x2, x3,xn)
31
Data Collection Plan
What to measure Type of measurement Type of Data Operational Definition Data Collection Form(s) Sampling Baseline Six Sigma


Six Sigma Revolution, George Eckes, pg 72
32
Data Collection Data
  • Type of Data
  • Discrete
  • Continuous
  • Sampling
  • Representative
  • Random Sampling

33
Metrics What to measure?
  • Defects per million opportunities (DPMO) drives
    plant-wide improvement
  • Sigma level allows for benchmarking within and
    across companies

34
Calculating Sigma-Level
  • Sigma level
  • units item produced or being serviced
  • defect event that does not meet the
    customers requirement
  • opportunity chance for a defect to occur
  • Calculate Defects per Million Opportunities
    (DPMO)

Total
defects x 1,000,000
DPMO

( of Opportunities for Error) x ( of units)
  • Go to a Sigma Chart and Estimate the Sigma Level

Six Sigma Revolution, George Eckes, pg 99
35
DPMO and Sigma Level
DPMO Sigma Level DPMO Sigma Level
       
1000000 -3.4 158655 2.5
999997 -3.0 66807 3.0
999968 -2.5 22750 3.5
999767 -2.0 6210 4.0
998650 -1.5 1350 4.5
993790 -1.0 233 5.0
977250 -0.5 32 5.5
933193 0.0 3.40 6.0
841345 0.5 0.29 6.5
691462 1.0 0.02 7.0
500000 1.5 0.00 7.5
308538 2.0 0.00 8.0
36
Tracking Trends in Metrics
Our objective is to track the trends in the
Metrics to establish, based on fact, our
improvements. These metrics can be productivity,
defects, time, yield, etc.
37
Purpose of the Analysis Phase
  • Establish baseline capability for key output
    variables (potential and overall)
  • Examine both the process and data for analysis
  • Determine and validate the root causation of
    project problem
  • To reduce the number of process input variables
    (xs) to a manageable number
  • To determine the presence of and potential
    elimination of uncontrolled variables

38
Three Sigma Process
Centered
1.5 Sigma Shift
39
Three Sigma Process
Centered
1.5 Sigma Shift
40
Six Sigma Process
Centered
1.5 Sigma Shift
41
Analysis Tools
42
Purpose of the Improvement Phase
  • Key variables are identified and validated during
    this process .
  • Look to eliminate, reduce or neutralize the
    effects of the input or root cause.
  • Design experiments to manipulate the key input
    variables (Xs) to determine their effect on the
    outputs (Ys).
  • Select the solution that impacts the root cause
    the most.

43
Design of Experiment
  • Full Factorials
  • 2K Factorials
  • Fractional Factorials

44
DOE Example
  • Objective To reduce consistency variation in Y
  • Output Variation (Lower is Better)
  • Full Factorial Inputs
  • RPM (Lo, Hi)
  • Speed (Lo, Hi)
  • Time (Lo, Hi)

Main Effects Plot
16
14
12
10
8
Speed
Time
R
P
M
45
Purpose of the Control Phase
  • Develop and implement long-term control methods
    to sustain the gains identified
  • Document the control plan with specific roles
    identified
  • Monitor long-term delivered capability and
    performance
  • Verify benefits and cost savings

46
Control Tools
Control
  • Control Plan
  • SPC
  • Mistake Proofing
  • Automated Control

47
Dynamics of Execution Strategy
40 - 50 Inputs
Process Map/CE
15 - 20 Xs
M
Capability/Multi-Vari
8 - 10 Xs
A
DOE
I
3-5 Critical Xs
Control Plan
C
48
Who needs Six Sigma?
As long as there is a process that produces an
output, we can apply the Six Sigma Methodology.
Every function has a customer and a deliverable.
49
Six Sigma Project Consideration
  • Project is supportive of corporate objectives
  • Project is focused on an ongoing process /
    recurring events that is causing defects
  • A 70 reduction in defects results
  • Customer (internal or external) will see or feel
    the result
  • Takes 4-6 months to complete
  • Little or no capital required

50
Possible Six Sigma Projects
  • Low yield rate
  • High operating costs
  • High customer failure/complaints
  • High scrap/rework
  • High inventory/WIP
  • High maintenance costs
  • Supplier product quality problems
  • Low productivity
  • Long cycle times
  • Low machine utilization
  • Inaccurate information
  • Missing information
  • Poor process control
  • Frequent set up requirements
  • Long set up time
  • Unpredictable product performance

51
Six Sigma Success
Visible top-down leadership and commitment
Education and training
Recognize and focus on customer needs
World-class quality
Establishing meaningful, focused metrics
DMAIC - Define, Measure, Analyze, Improve
Control
52
Credits
  • This module is intended as a supplement to design
    classes in mechanical engineering. It was
    developed at The Ohio State University under the
    NSF sponsored Gateway Coalition (grant
    EEC-9109794). Contributing members include
  • Gary Kinzel. Project supervisors
  • Phuong Pham.. ... Primary authors
  • L. Pham ... Audio voice

Reference Six Sigma Revolution, George Eckes,
John Wiley Sons, Inc., New York, 2001.
53
Disclaimer
  • This information is provided as is for
    general educational purposes it can change over
    time and should be interpreted with regards to
    this particular circumstance. While much effort
    is made to provide complete information, Ohio
    State University and Gateway do not guarantee the
    accuracy and reliability of any information
    contained or displayed in the presentation. We
    disclaim any warranty, expressed or implied,
    including the warranties of fitness for a
    particular purpose. We do not assume any legal
    liability or responsibility for the accuracy,
    completeness, reliability, timeliness or
    usefulness of any information, or processes
    disclosed. Nor will Ohio State University or
    Gateway be held liable for any improper or
    incorrect use of the information described and/or
    contain herein and assumes no responsibility for
    anyones use of the information. Reference to
    any specific commercial product, process, or
    service by trade name, trademark, manufacture, or
    otherwise does not necessarily constitute or
    imply its endorsement.
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