SIX SIGMA

SIX SIGMAPRESENTED BY:BATCH 1R.SANTHOSH EGAPPAN-12T119R.SANTHOSH VAIRAVAN-12T219SURATKAL SHRIJAY KIRAN-12T223BALAJI-13T403SNEHA-12T220MALATHI-12T1132WHAT 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.

2Sigma is a Greek symbol represented by "".

The term sigma is used to designate the distribution or spread about the mean (average) of any process or procedure.For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigmacapability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything thatresults in customer dissatisfaction.

WHAT IS SIX SIGMA ?Six Sigma is a problem-solving technology that uses data, measurements, and statistics to identify the vital few factors that will dramatically decrease waste and defects while increasing predictable results, customer satisfaction, profit and shareholder value.

The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible.4WHY 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 FragmentationThe goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty.45WHEN SHOULD SIX SIGMA BE USED?Its usage depends on the type of business. In general,

If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.THE SIX SIGMA STRATEGYTo achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities.

An opportunity is defined as a chance for non-conformance, or not meeting the required specifications.

This means we need to be nearly flawless in executing our key processes.7SIGMA LEVELSSigma Level ( Process Capability) Defects per Million Opportunities 2308,537366,80746,210523363.47KEY CONCEPTS OF SIX SIGMACritical 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 capability9TOOLS & TECHNIQUESCheck 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)Seven QC tools are utilized to organize the collected data in a way that is easy to understand and analyze. Moreover, from using the seven QC tools, any specific problems in a process are identified.7QC tools always include :Check Sheetis used to easily collect data. Decision-making and actions are taken from the data.Pareto Chartis used to define problems, to set their priority, to illustrate the problems detected, and determine their frequency in the process.Cause-and-Effect Diagram(Fishbone Diagram) is used to figure out any possible causes of a problem. After the major causes are known, we can solve the problem accurately.Histogramshows a bar chart of accumulated data and provides the easiest way to evaluate the distribution of data.Scatter Diagramis a graphical tool that plots many data points and shows a pattern of correlation between two variables.Flow Chartshows the process step by step and can sometimes identify an unnecessary procedure.Control Chartprovides control limits which are generally three standard deviations above and below average, whether or not our process is in control.

T-TestThe t-test assesses whether the means of two groups arestatisticallydifferent from each other. This analysis is appropriate whenever you want to compare the means of two groups.

he t-test (orstudent's t-test) gives an indication of the separateness of two sets of measurements, and is thus used to check whether two sets of measures are essentially different (and usually that an experimental effect has been demonstrated). The typical way of doing this is with the null hypothesis that means of the two sets of measures are equal.The t-test assumes:A normal distribution (parametricdata)Underlyingvariancesare equal (if not, use Welch's test)It is used when there is random assignment and only two sets of measurement to compare.There are two main types of t-test:Independent-measures t-test: when samples are not matched.Matched-pair t-test: When samples appear in pairs (eg. before-and-after).A single-sample t-test compares a sample against a known figure, for example where measures of a manufactured item are compared against the required standard.CalculationThe value of t may be calculated using packages such as SPSS. The actual calculation for two groups is:t = experimental effect / variability = difference between group means /standard errorof difference between group means

Fault tree AnalysisA technique by which conditions and factors that can contribute to a specified undesired event are identified and organized in a logical manner and represented pictorially. Or A tool to investigate a problem.

Reliability engineeringis anengineeringfield, that deals with the study ofreliability: the ability of asystemor component to perform its required functions under stated conditions for a specified period of time.[1]It is often reported as aprobability.

9 SIX SIGMA TEAM STRUCTURE

SIX SIGMA APPROACH - DMAICDMAIC (Define, Measure, Analyze, Improve and Control) is a process for continued improvement.

This closed-loop process eliminates unproductive steps, often focuses on new measurements, and applies technology for improvement.

DMAIC is a generalization of Walter Shewharts Plan-Do-Check-Act cycle, which provides a roadmap to help people understand how to integrate the various tools into an overall approach to quality improvement.Define the problem

Measure the gap, listen to the process

Analyze data to determine root causes

Improve the process Implement the solution

Control the process, standardize, and document Sustain the gainsControlImproveAnalyzeMeasureDefineDMAIC CORE PROBLEM SOLVING TOOL12

DEFINE - PHASEThe objective of the Define step of DMAIC is to identify the project opportunity and to verify or validate that it represents legitimate breakthrough potential.

It is desirable that a project be important to both customers (voice of the customer [VOC]) and the business.

The team also will need to prepare an action plan for moving forward to the other DMAIC steps.MEASURE - PHASEThe purpose of the Measure step is to evaluate and understand the current state of the process.This involves collecting data on measures of quality, cost, and throughput/cycle time. It is important to develop a list of all of the key process input variables (sometimes abbreviatedKPIV) and the key process output variables (KPOV). The KPIV and KPOV may have been identified at least tentatively during the Define step, but they must be carefully defined and measured during the Measure step.ANALYSE - PHASEThe objective is to use the data from the Measure step to begin to determine the cause-and-effect relationships in the process and to understand the different sources of variability.

In the Analyse step the goal is to determine the potential causes of the defects, quality problems, customer issues, cycle time and throughput problems, or waste and inefficiency that motivated the project.

It is important to separate the sources of variability into common causes and assignable causes.IMPROVE - PHASEIn the Improve step, they turn to creative thinking about the specific changes that can be made in the process and other things that can be done to have the desired impact on process performance.

A broad range of tools can be used in the Improve step.

Redesigning the process to improve work flow and reduce bottlenecks and work-in-process will make extensive use of flow charts and/or value stream maps.CONTROL - PHASEThe goal is to ensure that the gains are of help in the process and, if possible, the improvements will be implemented in other similar processes in the business.

The financial benefits of the project should be quantified.

The process owner should be provided with before-and-after data on key process metrics, operations and training documents, and updated current process maps.19COMPANIES USING SIX SIGMA Motorola

Ericsson

General Electric

Sony

Ford Motor Co.

CITI bank

19CASE STUDY IN AN APPAREL INDUSTRYResearch Case: As quality plays a pivotal role in all aspects of life, reducing the number of defectives in garment industry is an important function. Garment industries in India are facing stiff competition from Sri Lanka, Bangladesh and China. At this critical juncture, it is paramount for the manufacturers to reduce defects in their products and become competitive.

Problem Statement: The garment industry is suffering from high rate of rejections of their products.DEFINE - PHASEGoal Statement : To reduce the defect% to minimum level and thereby improve quality, reduce wastes and increase productivity.

Team : 3 members

CTQ (Critical to Quality Characteristic) : Defective % of shirts.

PROCESS FLOW IN SUN GARMENTS

MEASURE - PHASEIn this phase, after discussions with the managers and supervisors data is collected with the help of team members.

1. Data Collection Period PERIODVARIABLESRESPONSIBILITYMAY DECEMBER 2010Total Defectives CheckedTeamMEASURE - PHASEThe company manufactures variety of garment products like shirts, pants and Jackets. One product, i.e., Executive Shirt is inspected for defects since this was the critical product for the company as it had lot of demand and the profit margin for this particular product is high.

MEASURE - PHASECapability Study: The analysis is carried out using Mini Tab Software.

MEASURE - PHASEAnalysis: The outcome of this corresponding phase can be summarised as:

ANALYSE - PHASEThe past data was collected on the causes or type of defects.

ANALYSE - PHASEPARETO CHART:

ANALYSE - PHASEPARETO CHART: DEFECT IDENTIFICATION

ANALYSE - PHASECAUSE AND EFFECT DIAGRAM:

IMPLEMENT - PHASEThrough discussions with the managers and supervisors the following remedial actions were implemented for the each cause.

IMPLEMENT - PHASEAfter remedial actions are taken to reduce the defects, the results are encouraging.

CAPABILITY STUDY AFTER IMPLEMENTATIONThe results are indicating that the % defectives has been reduced to 1.95%.

CONTROL - PHASEControl Plan: The following are the mandatory actions that has to be taken by the management to sustain the results after lean six sigma implementation. The operators of garment industry must be given training on a continuous basis on the issue of quality. The drawings of the product must be made available at all the machines. The final garment pattern should be referred by all the operators. The management should give incentives for high quality performance. The focus should be on preventing defects rather than correcting defects. Tight quality controls should be enforced on those products coming from subcontractors. Training the subcontractors on the importance of quality on continuous basis. CONCLUSIONThe garment industry in focus was exporting the final product to European countries. It was operating at a percentage defective of 4.42%. After implementing the DMAIC methodology the percentage defective is reduced to 1.95%. The same approach can be utilized to other products of the company which will reduce lots of defects.If the quantum of defectives are reduced and converted into cash flows, the company will benefit through increased revenues. THANK YOU