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1、Introduction of Six SigmaBelton GroupRex WongRex WongScope of Modulen nWhat is Six Sigman nWhy the need for Six Sigman nHow to apply Six Sigma2 2What is Six Sigma?n nSix SigmaSix Sigma is a comprehensive and flexible is a comprehensive and flexible system for achieving, sustaining and maximizing sys
2、tem for achieving, sustaining and maximizing business success. It is uniquely driven by close business success. It is uniquely driven by close understanding of customer needs, disciplined understanding of customer needs, disciplined use of facts, data and statistical analysis, with use of facts, dat
3、a and statistical analysis, with diligent attention to managing, improving and diligent attention to managing, improving and reinventing business processes.reinventing business processes.Peter S Peter S PandePande, Robert P , Robert P NeumanNeuman, Roland R , Roland R CavanaghCavanaghThe Six Sigma W
4、ayThe Six Sigma Way (McGraw Hill, 2000) (McGraw Hill, 2000)3 3Six Sigma Is Three ThingsA statistical measurementA business strategyA philosophy4 41) Six Sigma A Statistical Measurementn nIt provides a quantitative performance assessment of It provides a quantitative performance assessment of our pro
5、ducts, services and processes.our products, services and processes.n nIt allows for comparisons against other similar or It allows for comparisons against other similar or dissimilar products, services and processes.dissimilar products, services and processes.n nIt provides feedback on how far ahead
6、 or behind we are.It provides feedback on how far ahead or behind we are.Six Sigma helps to establish our course and to gauge our pace in the race for total customer satisfaction.5 5Six Sigma A business strategyImproved Sigma-Rating of ProcessImproved Product or Process QualityReduced Cost of Operat
7、ionsGreater Customer Satisfaction6 6Cost Of Poor Quality (COPQ)Traditional Quality Costs(tangible)Lost OpportunityHidden FactoryAdditional Costs of Poor Quality(intangible)(Difficult or impossible to measure)COPQ is a function of Sigma Capability InspectionWarrantyScrapReworkRejectsMore SetupsExpedi
8、ting CostsLost salesLate DeliveryLost Customer LoyaltyExcess InventoryLong Cycle-TimesEngineering Change Orders7 7Cost Of Poor Quality (COPQ)ProfitTotal Cost to Manufactureand DeliverProductsProfitTheoreticalCostsCost ofPoor QualityCOPQPrice ErosionTheoreticalCostsCost ofPoor QualityCOPQProfitTheore
9、ticalCostsCOPQ8 83) Six Sigma A philosophyn nSix Sigma is about working smarter, not harder.Six Sigma is about working smarter, not harder.n nDiscover and neutralize harmful sources of Discover and neutralize harmful sources of variationvariationn nMMistakes are reduced (or eliminated)istakes are re
10、duced (or eliminated)n nImproved process capabilityImproved process capabilityn nSigma rating goes upSigma rating goes up9 9Quality BreakthroughTimeReject RateHistorical Level ( 0)Natural Variation under 0 (30)Special VariationOptimum Level ( 1)Natural Variation under 1(31)1010Why needs of Six Sigma
11、?n nThe goal of The goal of Six SigmaSix Sigma is not to achieve six sigma is not to achieve six sigma levels of quality (i.e. 3.4 levels of quality (i.e. 3.4 dpmodpmo). ).Six Sigma is about improving profitability; improved quality and efficiency are immediate by-products.1111Six Sigma aggressive g
12、oalSigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error. PPMProcessCapabilityDefects per Million Opp.1212Six Sigma P
13、rocess Point of Inflection1 TUSLp(d)12345633 This is a 6 Sigma Process1313Benefit of Six Sigman nCost reductionCost reductionn nProductivity improvementProductivity improvementn nMarket-share growthMarket-share growthn nCustomer retentionCustomer retentionn nCycle-time reductionCycle-time reductionn
14、 nDefect reductionDefect reductionn nCulture changeCulture changen nProduct/service developmentProduct/service development1414Customers Needs Internal MetricsDeliveryPriceQualityCustomerSupplierNeedCycle TimeCostDefectsDo1515How to apply Six Sigma?nUnlike conventional improvement programs which focu
15、ses on improving the defects on the “output”, Six Sigma focuses on the “process” that creates or eliminates the defects.nSix Sigma seeks to reduce variability in a process by means of a systematic approach called the Breakthrough Strategy.ProcessProcessInputInputOutputOutput1616Six Sigma approachIde
16、ntify the Customers NeedCenter around the TargetReduce VariationReduce Defects1717Focus of Six Sigma?ProcessProcessInputInputOutputOutputThe output (Y) is perceived as a function of the input (X).1818Breakthrough Strategy 1919Definen nThe The DefineDefine phase sets the stage for a successful phase
17、sets the stage for a successful Six Six SigmaSigma project by addressing the following questions: project by addressing the following questions:What is the problem of our focus?Whats our goal? And by when?Whos the customer impacted?What are the CTXs in-concern?Whats the process under investigation?2
18、020Project Definitionn nImprove time to market for all productsImprove time to market for all productsn nLead the industry in key technologiesLead the industry in key technologiesn nCreate world-class manufacturing processesCreate world-class manufacturing processesn nDevelop strategic supplier rela
19、tionshipsDevelop strategic supplier relationshipsn nProvide best-in-class product and process qualityProvide best-in-class product and process qualityn nDevelop strategic relationships with key customersDevelop strategic relationships with key customersn nBecome an employer of choiceBecome an employ
20、er of choice2121Baseline Metric Datan nBaselineBaseline The average long-term defect The average long-term defect level of a process when all input variables in level of a process when all input variables in the process are running in an unconstrained the process are running in an unconstrained fash
21、ion.fashion.n nEntitlementEntitlementThe best-case short-The best-case short-term defect level of a process when all input term defect level of a process when all input variables in the process are centered and in-variables in the process are centered and in-control.control.n nBenchmarkBenchmarkThe
22、defect level of the The defect level of the process deemed by comparison to be the process deemed by comparison to be the best process possible.best process possible.2222Breakthrough ImprovementTimeReject RateBaseline NID( 0, 0)Natural Variation (30)Special VariationGoal NID( 1, 1)Natural Variation
23、(31)EntitlementOpportunity for Improvement ()0.72323Cost of QualityHard Savings Potential Savings Soft Savings2424Measurel lThe Measure phase serves to validate or refine the problem, and to begin the search for root causes. It addressesthe focus and extent of the problem, based on measures of the p
24、rocess,the key data required to narrow the problem to its major factors or vital few root causes.2525Capability Analysis Conventional Metricsn nReject RateReject Raten nin in percentpercent(e.g. 7.4%)(e.g. 7.4%)n nin in ratioratio(e.g. 0.074)(e.g. 0.074)n nin in parts per millionparts per million(e.
25、g. 74,000 DPPM)(e.g. 74,000 DPPM)n nYieldYieldn nin in first-time yieldfirst-time yieldn nin in final yieldfinal yield2626Capability AnalysisCapability AnalysisConventional MetricsSix Sigma MetricsReject rateIn precent(eg, 7.4%)In defects per Unit (DPU)In Ratio(eg,.074)In defects per million opportu
26、nities (DPMO)In parts per million (eg, 74,000 dppm)In throughput yieldYieldIn first-time yieldIn rolled throughput yieldIn final yieldIn normalized yield2727Defect per unit (DPU)n nDefects Per UnitDefects Per Unit : The average number of defects per : The average number of defects per unit produced.
27、unit produced.Defect Rate = # Defects / # Units = 7 / 5 = 1.4 dpu2828Defects Per Million Opportunities (DPMO)n nOpportunitiesOpportunities : The number of possibilities for defect creation in : The number of possibilities for defect creation in any unit of product process or sequence of processes.an
28、y unit of product process or sequence of processes.1. Arm Height2. Arm thickness3. Bore hole Dia4. Swgae hole Dia5. Roughness6. Teardrop profile7. Roll8. PitchOpportunities per Unit = 8Number of Opportunities= Opportunities per Unit Number of Units= 8 5 = 40Defect Rate= # Defects / # Opportunities =
29、 (7 / 40 ) 106= 175,000 dpmo2929DPMO vs Sigma Capability 3030First-time yield (Yft)n nFirst-Time YieldFirst-Time Yield is the number of units that pass a is the number of units that pass a particular inspection, compared with the total number particular inspection, compared with the total number of
30、units that pass through that point in the process.of units that pass through that point in the process.Process968Accept32RejectFirst-Time Yield, Yft = 968 / 1000 = 0.9681,000Input3131Throughput yield (Ytp)n nThroughput YieldThroughput Yield is the probability that a unit of product or is the probabi
31、lity that a unit of product or service will pass through a given process step error-free.service will pass through a given process step error-free.n nThroughput Yield, Throughput Yield, Y Ytptp = e = eDPUDPUProcess968Accept32Reject1,000Input(40 Defects)Throughput Yield, Ytp = e-(40/1000) = 0.9613232
32、Final Yield (Yf)800ShipProcess A1,000Input50ScrapProcess B950Input25ScrapProcess C925Input125ScrapFinal Yield, Yf= Quantity Shipped / Quantity Built = 800 / 1,000 = 0.80A shortcoming of final yield is that it fails to consider the “hidden factory” or rework.Hidden Factory : ad hoc systems and proces
33、ses set up to correct errors made during the mainstream process.3333Rolled Throughput Yield (Yrp)Rolled Throughput Yield= Ytp(A) Ytp(B) Ytp(C) = 0.7408 0.6393 0.5824= 0.2758675ShipProcess A1,000Input50ScrapRework200150Process B800Input (950)25ScrapRework300275Process C650Input(925)125ScrapRework2501
34、25Defects = 300 Ytp(A)= e300/1,000 = 0.7408Defects = 425 Ytp(B)= e425/950 = 0.6393Defects = 500 Ytp(C)= e500/925 = 0.5824Defects= 3003434Rolled Throughput Yield (Yrp)The rolled throughput yield is the probability that a unit of The rolled throughput yield is the probability that a unit of product or
35、 service is able to pass through the entire product or service is able to pass through the entire process defect-free.process defect-free.It is a function of the defect rate, and hence provides a It is a function of the defect rate, and hence provides a better estimate of the amount of rework requir
36、ed.better estimate of the amount of rework required.Rolled throughput yield can be improved byRolled throughput yield can be improved by having higher throughput yields at each process step having higher throughput yields at each process step reducing the number of process steps reducing the number
37、of process steps3535Sigma ValueSigma Value (Z- Score):n nThe sigma value is derived from the The sigma value is derived from the probability of a defect in a process and is probability of a defect in a process and is used to compare performance across products used to compare performance across prod
38、ucts or processesor processes n nz-Score is most accurately determined by z-Score is most accurately determined by using the equation of z = eusing the equation of z = e(-DPU)(-DPU)3636Analyzen nIn the In the AnalyzeAnalyze phase, practical business problems are phase, practical business problems ar
39、e turned into statistical problems. The statistical tools turned into statistical problems. The statistical tools and the order in which they are applied will depend and the order in which they are applied will depend on the problem and process, and the approach to the on the problem and process, an
40、d the approach to the problem.problem.Analyze Data/ProcessDevelop Causal HypothesisRefine or Reject HypothesisAnalyze Data/ProcessConfirm & Select Vital Few Causes3737Improven nThe The ImproveImprove phase seeks to address the following: phase seeks to address the following:What possible actions or
41、ideas required to address the root cause of the problem, and to achieve the goal?Which of the ideas are workable potential solutions?Which solution will most likely achieve the goal with the least cost or disruption?How can the chosen solution be tested for effectiveness, and then implemented perman
42、ently3838Controln nIn the In the ControlControl phase, actions are established to ensure that the phase, actions are established to ensure that the process is monitored continuously for consistency in quality of process is monitored continuously for consistency in quality of the product or service.t
43、he product or service.Implement ongoing measures and actions to sustain improvementDefine responsibility for process ownership and managementExecute “closed-loop” management and drive towards Six Sigma3939Realizationl lIn the In the RealizeRealize phase, ownership of the project is phase, ownership
44、of the project is transferred to the finance representative, for tracking of transferred to the finance representative, for tracking of financial benefits of the project.financial benefits of the project.4040Championn nDefine the path for Six Sigma implementation across the Define the path for Six S
45、igma implementation across the organization.organization.n nCareful selection of high-impact projects.Careful selection of high-impact projects.n nSupport development of “statistical thinking”.Support development of “statistical thinking”.n nRealize the gains by supporting Six Sigma projects through
46、 Realize the gains by supporting Six Sigma projects through allocation of resources and removal of roadblocks.allocation of resources and removal of roadblocks.n nImplementation of Black Belt recommendations.Implementation of Black Belt recommendations.n nEnsure that project opportunities are acted
47、upon by the Ensure that project opportunities are acted upon by the organizations leadership and the finance department.organizations leadership and the finance department.n nRecognition of efforts and contributions by the people.Recognition of efforts and contributions by the people.4141Black Beltn
48、 nAct as Act as Breakthrough StrategyBreakthrough Strategy experts and enthusiasts. experts and enthusiasts.n nIdentify the barriers.Identify the barriers.n nManagement of project: from planning, through Management of project: from planning, through execution, to realization.execution, to realizatio
49、n.n nReport progress to appropriate leadership levels.Report progress to appropriate leadership levels.n nDetermine the most effective tools to apply.Determine the most effective tools to apply.n nGather input from knowledgeable sources, from Gather input from knowledgeable sources, from operators t
50、o managers.operators to managers.n nGreen Belt TrainingGreen Belt Trainingn nMonitor & provide guidance of Green Belt projects.Monitor & provide guidance of Green Belt projects.4242Green Beltn nFunction as Green Belts on a part-time basis, Function as Green Belts on a part-time basis, while performi
51、ng their regular operational duties.while performing their regular operational duties.n nParticipate in Black Belt teams in the context of Participate in Black Belt teams in the context of their existing responsibilities.their existing responsibilities.n nLearn the Learn the Six SigmaSix Sigma metho
52、dology as it applies to methodology as it applies to a particular project.a particular project.n nContinue to learn and practice the Continue to learn and practice the six Sigmasix Sigma methods and tools after project completion.methods and tools after project completion.4343Six Sigma Process FlowC
53、hampionManagementEmployeesFinanceTeamBlack Belt4444Six Sigma RoadmapOptimized Process30 - 5010 - 154-8Key Process InputVariables (KPIVs)8 - 10KPIVsCritical KPIVs3-6Key Leverage KPIVsInputs VariablesProcess MapMulti-Vari Studies,CorrelationsScreening DOEsDOEs, RSMC&E Matrix and FMEAGage R&R, Capabili
54、tyT-Test, ANOM, ANOVAQuality SystemsSPC, Control PlansMeasureAnalyzeImproveControl4545What you have learnt?n nWhat is Six Sigma?What is Six Sigma?n nA statistical measurementA statistical measurementn nA business strategyA business strategyn nA philosophyA philosophyn nWhy the needs of Six Sigma?Why
55、 the needs of Six Sigma?n nHow to apply Six Sigma? How to apply Six Sigma? n nMeasure, Analyze, Improve & Control (MAIC)Measure, Analyze, Improve & Control (MAIC)n nSix Sigma Term (DPU, DPMO, Six Sigma Term (DPU, DPMO, Y Yrprp, , Y Ytptp) ) n nChampion, Black Belt & Green BeltChampion, Black Belt & Green Beltn nNarrow down KPIVsNarrow down KPIVs4646End of PresentationRev 1 23 Apr 02Rev 1 23 Apr 02
