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SIX SIGMA"Delivering Tomorrow's Performance

Today"

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WHAT IS SIGMA ?

• A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.

• Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance

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WHAT IS SIX SIGMA?

• Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services.

• The figure of six arrived statistically from current average maturity of most business enterprises

• A philosophy and a goal: as perfect as practically possible.

• A methodology and a symbol of quality.

Contd…

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WHAT IS SIX SIGMA?

• A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities.

Contd…

But, it is much more!

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Six Sigma is not:

•A standard

•A certification

•Another metric like percentage

Rather!•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.

• Methodology to measure and improve company’s performance, practices and systems

WHAT IS SIX SIGMA

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WHY SIX SIGMA ?

• Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects

• The Current business environment now demands and rewards innovation more than ever before due to:

Customer Expectations Technological Change Global Competition Market Fragmentation

6σ Key Concepts

• Critical to Quality– Attributes most important to the customer

• Defect– Failing to deliver what the customer wants

• Process Capability– What your process can deliver

• Variation– What the customer sees and feels

• Stable Operations– Ensuring consistent, predictable processes to improve what the

customer sees and feels • Design for Six Sigma

– Designing to meet customer needs and process capability Taken from http://en.wikipedia.org/wiki/Six_sigma

About the term 6σ• Standard Deviation

– Degree of dispersion from mean value

s = standard deviation (aka σ)

X = data point

M = average of all data points

n = population

About the term 6σ

About the term 6σ6σ = Near Perfection!

About the term 6σ

• But…3.4 DPMO actually corresponds to 4.5σ• Six Sigma takes into account the “1.5σ shift”• Mikel Harry introduced the ±1.5σ shift• Example:

– Take 5 initial samples and take the mean• Considered to be “short term”

– Take 50 samples through out the day and take the mean• Considered to be “long term”

– Mean of initial values is different than the overall mean• Harry takes this difference to be about 1.5σ

– Overtime, mean drifts by 1.5σ– Empirical value rather than theoretical

• Many people do not agree with the concept of the 1.5σ shift

Six Sigma QualityThe objective of Six Sigma quality is 3.4 defects

per million opportunities!

Degree of Shift in Mean Quality Level (# Defects per Million Opportunities)

(Number of Standard Deviations) 3 Sigma 4 Sigma 5 Sigma 6 Sigma

0.0 2700 63 0.57 0.002

0.5 6440 236 3.4 0.019

1.0 22832 1350 32 0.019

1.5 66803 6200 233 3.4

2.0 158,700 22800 1300 32

But is Six Sigma Realistic?

·

1

11

21

31

41

3 4 5 6 7

10

1

100

1K

10K

100K

765432

(66810 ppm)· IRS – Tax Advice (phone-in)

Best in Class

(3.4 ppm)

Domestic AirlineFlight Fatality Rate

(0.43 ppm)

·(233 ppm)

AverageCompany

Purchased MaterialLot Reject Rate

Air Line Baggage Handling

Wire Transfers

Journal VouchersOrder Write-up

Payroll Processing

Doctor Prescription WritingRestaurant Bills

·······

Defe

cts

Per

Million

Op

port

un

itie

s (

DP

MO

)

SIGMA

DFSS – DMAIC

Six SigmaSix Sigma

DFS

SD

MA

IC

Process Management

To improve the existing processes in order to satisfy

customer requirements.

To achieve the business results, managing the processes efficiently.

To design new products or processes, or to improve the designs of existing ones in order to satisfy customer requirements

Six Sigma Improvement MethodsDMAIC vs. DMADV

Define

Measure

Analyze

Design

Validate

Improve

Control

Continuous Improvement Reengineering

Improvement Strategies

Is the gapsmall?

Customer Requirements

Process Capability

FundamentalRedesign

IterativeImprovement

YES

NO

• Design a new product / process

• Broad approach• Blank sheet of paper

approach• High risk• Longer time span• Addressing many CTQs • Goal: Quantum Leap

• Fix an existing process• Narrow Focus• Use current process

model• Low risk• Shorter Time Span• Addressing few CTQs• Goal: Improvement

DFSS DMAIC

DMAIC

MeasureMeasure

ControlControl

ImproveImprove

AnalyzeAnalyze

Analyze the existing process: Is the process measured correctly? If so, what is the capability of the process?

Analyze and identify the important factors that cause the variation of the process: Where and when do the defects occur?

Optimize the output by optimizing the inputs: To reach at the six sigma process, what should be the levels of each factor?

Which controls should be done in order to continue process at six sigma?

Ch

ara

cte

riza

tio

n

DefineDefine Define the problem with outputs and potential inputs

Op

tim

iza

tio

n

When to Go for DFSS Changing customer expectations: by the time the current

problems are solved, new problems will occur Technology development: new technologies allow to meet all

customer requirements at lower cost or gain a competitive edge

Next generation: the existing products remaining lifetime is very short, a successor will be needed soon

System limits: the performance gap is due to system / business model configurations that cannot be changed or the available technology does not allow to meet CTQs

Process entirely broken: the existing process is unable to meet many CTQs, too many successive DMAIC projects required

Different DFSS Methodologies Several roadmaps have been proposed. They are very similar to each other. The underlying tools are the same

DFSS Methodology: DMADV

Define the project goals and customer requirements.

Measure and determine customer needs and specifications; benchmark

competitors and industry.

Analyze the process options to meet the customer needs.

Design (detailed) the process to meet the customer needs.

Verify the design performance and ability to meet customer needs.

Define the project goals and customer requirements.

Measure and determine customer needs and specifications; benchmark

competitors and industry.

Analyze the process options to meet the customer needs.

Design (detailed) the process to meet the customer needs.

Verify the design performance and ability to meet customer needs.

DFSS Methodology: DCCDI

Define the project goals.

Customer analysis.

Concept ideas are developed, reviewed and selected.

Design is performed to meet the customer and business specifications.

Implementation is completed to develop and commercialize the product/service.

Define the project goals.

Customer analysis.

Concept ideas are developed, reviewed and selected.

Design is performed to meet the customer and business specifications.

Implementation is completed to develop and commercialize the product/service.

DFSS Methodology: IDOV

Identify the customer and specifications (CTQs).

Design translates the customer CTQs into functional requirements and into solution alternatives.

Optimize uses advanced statistical tools and modeling to predict and optimize the design and performance.

Validate makes sure that the design developed will meet the customer CTQs.

Identify the customer and specifications (CTQs).

Design translates the customer CTQs into functional requirements and into solution alternatives.

Optimize uses advanced statistical tools and modeling to predict and optimize the design and performance.

Validate makes sure that the design developed will meet the customer CTQs.


Define the project goals, customer requirements, and opportunities

Measure in detail customer needs and priorities, market conditions, and

benchmark competitors

Analyze the data collected, prioritize CTQs, determine relations between

CTQs and parts/processes

Develop concept, innovative solutions, and optimal solutions to product and

process design

Validate the solutions and implement


Measure in detail customer needs and priorities, market conditions, and

benchmark competitors

Analyze the data collected, prioritize CTQs, determine relations between

CTQs and parts/processes

Develop concept, innovative solutions, and optimal solutions to product and

process design



TOOLSProject managementQFDBenchmarkingValue analysisFinancial analysisSIPOCIPDSFMEATRIZDesign scorecardsMSABasic statistical techniquesDOEOptimizationSimulationRobust designTolerance designReliability engineeringDesign for manufacture and assembly

DEFINE

MEASURE

ANALYZE

DEVELOP

VALIDATE

All methodologies are similar


MeasureMeasure AnalyzeAnalyze DevelopDevelop ValidateValidateDefineDefine

IdentifyIdentify DesignDesign OptimizeOptimize VerifyVerify

Measure in detail customer needs and priorities, market conditions, and benchmark competitors

Analyze the data collected, prioritize CTQs, determine relations between CTQs and parts/processes

Develop concept, innovative solutions, and optimal solutions to product and process design


I- DESIGN FOR SIX SIGMA…DEFINED

• I-DFSS – – The Concurrent Development and Introduction of a new or

radically redesigned product or service and all of the processes (Design, Procurement, Production, Logistics and Distribution, Service and Sales) that enable the product or service to achieve Six Sigma business performance.

– A Phased Methodology which includes both the design tools and innovative I-TRIZ tools for designing products (goods, information or services) and processes that generate customer value.• The phases are Define, Measure, Analyze, Design, Verify

I-DFSS:New Product/Service Introduction to Achieve Six

Sigma Business PerformanceMARKET

RESEARCH

DESIGN

PRODUCTION

LOGISTICS

DISTRIBUTION

SERVICE

SALES

DMADV

INNOVATIVE DESIGNS FOR SIX SIGMA…DEFINED

CUSTOMERS

Customer-driven design of processes with 6 capability.

Predicting design quality up front.

Top down requirements flowdown (CTQ flowdown) matched by capability flowup.

Cross-functional integrated design involvement.

Drives quality measurement and predictability improvement in early design phases.

Utilizes process capabilities to make final design decisions.

Monitors process variances to verify 6 customer requirements are met.

WHAT IS DESIGN FOR SIX SIGMA (DFSS)?

THE DMADVMETHODOLOGY AND TOOLS

Define Measure Analyze Design Verify

Under-standcustomerneeds andspecifyCTQs

Developdesignconceptsand high-level design

Developdetaileddesign andcontrol/testplan

Testdesign andimplementfull-scaleprocesses

Initiate, scope,and plan theproject

DESIGN FOR SIX SIGMA

DELIVERABLES

TeamCharter

CTQs High-levelDesign

DetailedDesign

Pilot

TOOLS

Mgmt Leadership Customer Research FMEA/Errorproofing

Project QFD Process SimulationManagement Benchmarking Design Scorecards

GM

Ford

Toyota

Chrysler

Eaton

Dana Corporation

Rockwell Int’l Automotive

TRW Automotive

ITT Automotive

Jaguar

Cost reduction, warrantees, recalls, new design, patent circumvention, failure analysis, failure prediction, training

Break squealBrake roughnessNoise and vibrationTransmissionAir bag

Electrostatic paintTail lightSeat coverWind tunnelPlastic fuel tank

IDEATION’S SUCCESSES-TO-DATE:AUTOMOTIVE INDUSTRY

Dow

Amoco

Dupont

Conoco

Solutia

Rohm & Haas

Cost reduction, breakthrough/discovery, manufacturing processes, safety, quality, reliability, failure analysis

PlasticsChemical processingCatalystsReactor

Aromatic oxidationDistillation/separationNew material development/design

IDEATION’S SUCCESSES-TO-DATE:CHEMICAL INDUSTRY

Exxon

Mobil

Amoco

Shell

Cost reduction, reliability, failure analysis, new design, training

ExplorationMethod of discoveryRefineriesPost processing– Gas– Fuel oil

Enhanced oil recovery

Dual grading drillingExpandable casingHydro carbon processing– on shore– off shore

Transportation

IDEATION’S SUCCESSES-TO-DATE:OIL INDUSTRY

Johnson & Johnson

Cardiovascular

Roche

Bristol Myers

Zeneca (UK)

New design, patent circumvention, cost reduction, failure prediction, training

Medical instrumentationSanitary productsBlister packaging of pills

IDEATION’S SUCCESSES-TO-DATE:MEDICAL INDUSTRY

Honeywell

Motorola

Philips Electronics

Hitachi

ITT

Arteche (Spain)

Visteon

Northern Telecon (Canada)

Solarex

Helix

Toshiba

Sony

LG Electronics

Cost reduction, new technologies, reliability, manufacturing processes, training

Cell phonesMicrochipsPC boardsRadio

HeadsetHigh voltage transformersPower suppliesNavigation systems

IDEATION’S SUCCESSES-TO-DATE:ELECTRONICS/ELECTRICAL INDUSTRY

Boeing

Pratt & Whitney

Techspace Aero (Belgium)

Honeywell

Allied Signal

Rockwell International

Rolls Royce

McDonnel Douglas Aerospace

NASA

Hughes Aircraft

TRW

BF Goodrich

Litton

Cost reduction, safety, reliability, quality, new design, failure analysis and prediction, training

C-17F-22Engines

ValvesContainment ring

IDEATION’S SUCCESSES-TO-DATE:AVIATION INDUSTRY

I-DFSS DESIGN PROJECTCASE 1 CASE 2 CASE 3

Base Line Performance OK

CurrentProduct

CurrentProduct

DPMOCOPQ

DesignDesign

CurrentProcesses

ManufacturingManufacturing

DistributionDistribution

ServiceService

MarketingMarketing

REDESIGN

Cp, CpkCOPQ

DPMOCOPQ

CurrentProduct

CurrentProduct

NewProcesses

NEW PROCESS DESIGN

Product Base Line Performance OK(May be of little value)

NewProduct

NewProduct

NewProcesses

NEW PRODUCT ANDPROCESS DESIGN

No Base Line Performance

CTQ’sCTQ’s

High-level Design

High-level Design

CTQ GAP“Base Line

Performance”

CTQ GAP“Base Line

Performance”

DesignScorecard

DesignScorecard

But:

No Current Product or Process

DesignDesign

SCIENTIFICALLY BASED APPLICATIONS: SYSTEMATIC, STRUCTURED INNOVATION

IPS

DE

AFD

InventiveProblemSolving

AnticipatoryFailure

Determination

Directed Evolution

FailureAnalysis

FailurePrediction

Strategically Evolving Future Generations of Technologies & Systems

Surgical Removal of Tough Technological Problems

Invention of Failure Modes Elimination of Contradictions

I- DESIGN FOR SIX SIGMA

• Pre-DEFINE Phase

– INTRODUCTION TO SIX SIGMA– HOW TO THINK ABOUT DFSS/NEW PRODUCT

INTRODUCTION (NPI)– I-TRIZ/Directed Evolution (DE)

• Strategic vision• Logical chain of product concepts• Product evolution roadmap

• DEFINE Phase

– INTRODUCTION TO DEFINE– ESTABLISH DESIGN PROJECT– FINANCIAL ANALYSIS– PROJECT MANAGEMENT AND RISK

ASSESSMENT– SUMMARY; ISSUES TO CONSIDER


• MEASURE Phase– INTRODUCTION TO MEASURE– ESTABLISH CTQ’s AND CTI’s– I-TRIZ/Innovation Situation Questionnaire & Problem

Formulator• Design problem documentation• Design expectations

– INTRODUCTION TO PROBABILITY, STATISTICS AND PREDICTION

– MSA (Variables, Attribute and Data quality)– PROCESS CAPABILITY (Variables and Attribute)– RISK ASSESSMENT– I-TRIZ/Anticipatory Failure Determination (AFD)

• Failure prediction– DESIGN SCORECARD


• ANALYZE/HIGH-LEVEL DESIGN Phase– INTRODUCTION TO HIGH-LEVEL DESIGN– DEVELOP DESIGN ALTERNATIVES– I-TRIZ/Innovative Problem Solving (IPS)

• Description of design options (alternatives)• Analysis of design alternatives for technological barriers and

contradictions– DEVELOP HIGH-LEVEL DESIGN (VA/VE)– MULTI-VARI ANALYSIS– CONFIDENCE INTERVALS AND SAMPLING– HYPOTHESIS TESTING AND ANOVA– EVALUATE HIGH-LEVEL DESIGN– I-TRIZ/Anticipatory Failure Determination (AFD)

• Failure analysis and prediction


• DETAIL DESIGN Phase

– INTRODUCTION TO DESIGN– RISK ASSESSMENT/FALURE ANALYSIS– I-TRIZ/Anticipatory Failure Determination

(AFD)• Failure analysis

– TAGUCHI METHODS AND ROBUST DESIGN– TOLERANCING– DOE with RSM


• DETAIL DESIGN Phase (cont’d)

– RELIABILITY and AVAILABILITY– NON-PARAMETRIC STATISTICS – SIMULATION with Monte Carlo Methods– DESIGN FOR MANUFACTURABILITY/DESIGN

FOR ASSEMBLY– DVT/TESTABILITY– DESIGN SCORECARD


• DETAIL DESIGN Phase -- CUSTOM FEATURES

– THE TOOLS OF DETAIL DESIGN– CONCURRENT ENGINEERING– SOFTWARE ENGINEERING METHODS AND TOOLS

(CMM, CASE)

ENHANCED DESIGN FOR:4 Commercial/Competitive Success4 Manufacturability4 Serviceability4 Reliability4 Availability4 Information Management4 Control


• VERIFY Phase– INTRODUCTION TO VERIFY– DESIGN FOR CONTROL– DESIGN FOR MISTAKE- AND FOOLPROOFING– STATISTICAL PROCESS CONTROL (SPC)– MVT– TRANSITION TO PROCESS OWNERS– I-TRIZ/Directed Evolution (DE)

• Logical sequence of new scenarios• Strategic knowledge base and patent portfolio• Targeted competitive intelligence• New product evolutionary stages

– SUMMARY; ISSUES TO CONSIDER; PROJECT CLOSURE


• VERIFY Phase -- CUSTOM FEATURES

– PILOT TESTING– FULL-SIZE SCALE-UP AND

COMMERCIALIZATION– DESIGN INFORMATION AND DATA

MANAGEMENT– LEAN MANUFACTURING


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BUSINESS PROCESS MANAGEMENT SYSTEM:

• BPM strategies emphasize on process improvement and automation to derive performance

• Combining BPM strategies with sigma six is most powerful way to improve performance

• Both strategies are not mutually exclusive but some companies produced dramatic results by combining them.

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BENEFITS OF SIX SIGMA

• Generates sustained success• Sets performance goal for everyone• Enhances value for customers• Accelerates rate of improvement• Promotes learning across boundaries• Executes strategic change

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TOOLS & TECHNIQUES

• 7QC toolsCheck Sheets (collect data to make improvements)Pareto Charts( define problem and frequency)Cause and effect diagram (Identify possible causes

to solve problem)Histogram (Bar charts of accumulated data to

evaluate distribution of data)Scatter diagram (plots many data points and

pattern between two variables)Flow Chart (Identify unwanted steps)Control charts (Control limits around mean value)

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THANKS

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