Slide 1

Dr. Ron Lembke SCM 462

Slide 2

It is the relentless and rigorous pursuit of the reduction of variation in all critical processes to achieve continuous and breakthrough improvements that impact the bottom line of the organization and increase customer satisfaction. (p. 723)

Slide 3

A capable process has UTL and LTL 3 standard deviations away from the mean, or 3 . LTLUTL 33 66 LTLUTL

Slide 4

3 sigma: Probability outside range = (1 0.99865) * 2 = 0.0027 Defect rate = 2,699 defects per million opportunities 6 sigma: Probability part outside range = 0.00000000198024 Defect rate = 0.00197 dpm 1.97 defects per BILLION 33 66

Slide 5

3 sigma: 1/.0027 = 1 every 370 parts 6 sigma: 1/ 0.00000000198024 = 1 every 504.9 million parts If we make a million parts per year, we have: 3 : 2,699 defectives 6 : 0.0019732 defectives

Slide 6

Motorola, GE, Allied Signal say mean can shift 1.5 during early stages of 6 implementation A 6 process then becomes 4.5 . If this happens to a 3 process, it becomes 1.5 66 4.5 7.5

Slide 7

With a 1.5 shift, defect rates become: 3 66,807 dpm 6 3.4 dpm The commonly accepted definition of 6 quality is having a defect rate