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WhatisSixSigmaAllAbout?TNGohIndustrial&SystemsEngineeringDepartmentNationalUniversityofSingaporeAugust2001References•Harry,M.J.,andSchroeder,R.,SixSigma:TheBreakthroughManagementStrategyRevolutionalizingtheWorld’sTopCorporations,NewYork:Doubleday,1999•Pyzedek,TheSixSigmaHandbook:ACompleterGuideforGreenbelts,Blackbelts,andManagersatAllLevels,NewYork:McGraw-Hill,2001•Montgomery,D.C.,BeyondSixSigma,QualityandReliabilityEngineeringInternational,17(4),iii-iv,2001•Goh,T.N.,TheroleofstatisticaldesignofexperimentsinSixSigma:perspectivesofapractitioner,QualityEngineering,14,2001Outline•Theliteral“SixSigma”•SixSigmaforperformancecalibration•SixSigmaasframeworkforquality•SixSigmaprofessionals•SixSigmaapplications•PotentialandlimitationsofSixSigmaWhatisSixSigmaAllAbout?Qualityin-•Operations•Management•Manufacturing•TransactionsSourcesofVariation•Man•Machines•Materials•Methods•Measurements•Mothernature•ManagementDesignEnvironmentInputThePROCESSConsequencesofVariation•Inspectionneeds(routineburden)•Reject,rework,downgrade,recycle,scrap(internalburden)•Return,repairandwarrantycosts(externalburden)•Fieldrepairs(presentloss)•Lostcustomers(futureloss)•Latedesignchanges(shorttermloss)•Damagedbusinessreputation(longtermloss)HowtoCombatVariation?•First,onemustknowhowtoMEASUREit•Second,onemustknowhowtoREDUCEit•Third,onemustknowhowtoPREVENTitxSLSUTargetLet’sconsiderthequalityproblem:LowerspecificationlimitUpperspecificationlimit....(μ,σ)....CommonStatisticalMeaningofSixSigmaSigma:s•Symbolforstandarddeviation•Measureofdispersion,variation,orspread•6sisthespreadaboutthemeanμthatincludes99.73%ofanormalpopulationMeaningof“SigmaLevel”inSixSigma•Defineameasurethatwillreflect,fromthecustomer’spointofview,whatisCriticaltoQuality(CTQ)•DefinetherangeofvaluesofCTQthattheprocessshouldgenerate•UsuallytherewillbeatargetCTQvalueandspecificationlimit(s)foractualCTQvalues3SigmaProcess66807ppm6SigmaProcess0.002ppm6SigmaProcessAfter1.5SigmaShift:3.4ppmCalibratingQualitywithSigmaLevels2308,537366,80746,210523363.4sppmProcessCapabilityDefectsperMillionOpportunities(DistributionShifted±1.5s)ProcessCapabilitySigmaleveldpmoUsLsμ+3σμ-3σyIRS-TaxAdvice7SigmaLevel1,000,000100,00010,0001,000100101PPMRestaurantBillsPayrollProcessingPrescriptionWritingBaggageHandlingAirlineSafetyRate345621WhatDoes6SigmaMeanInDailyLife?WHEREDOESYOURPROCESSFALLONTHISCURVE?99%Good=3Sigma99.9998%Good=6Sigma20,000lostarticlesofmailperhourSevenarticleslostperhourUnsafedrinkingwaterforalmost15minuteseachdayOneunsafeminuteeverysevenmonths5,000incorrectsurgicaloperationsperweek1.7incorrectoperationsperweekTwoshortorlonglandingsatmostmajorairportseachdayOneshortorlonglandingeveryfiveyears200,000wrongdrugprescriptionseachyear68wrongprescriptionsperyearNoelectricityforalmostsevenhourseachmonthOnehourwithoutelectricityevery34years“99%Goodisnotgoodenough”WhatisSixSigmaallabout?•UseofqualityimprovementtoolstoshapeaprocesssuchthatitsmeanissixstandarddeviationsawayfromaspecificationlimitWhatisSixSigmaallabout?•UseofqualityimprovementtoolsforexcellenceinbusinessbyfocusingonoutputsthatareofcriticalimportancetocustomersWhatCharacterizesSixSigma?Leadership?Infrastructure?Approach?Focus?Tools?Duration?Results?ToolsorganizedintoaSixSigmaframework:•Define•Measure•Analyze•Identify•ControlDMAIC•Define:Definetheproblemtobesolved,includingcustomerimpactandpotentialbenefits•Measure:Identifythecritical-to-qualitycharacteristics(CTQs)oftheproductorservice.Verifymeasurementcapability.BaselinethecurrentdefectrateandsetgoalsforimprovementDMAIC•Analyze:understandrootcausesofwhydefectsoccur;identifykeyprocessvariablesthatcausedefects•Improve:QuantifyinfluencesofkeyprocessvariablesontheCTQs,identifyacceptablelimitsofthesevariable,andmodifytheprocesstostaywithintheselimits,therebyreducingdefectlevelsintheCTQsDMAIC•Control:Ensurethatthemodifiedprocessnowkeepsthekeyprocessvariableswithinacceptablelimits,inordertomaintainthegainslongtermSixSigmaApplicabilityTheDMAICframeworkisapplicabletobothmanufacturingandserviceprocessesCustomerFocusCustomerFocusDeterminestheCTQ’sQualityFunctionDeploymentBasicQFDMatrixHOWsWHYsWANTsWhy1Want15nWant25n3oWant34oo3Want433noWant53nRELATIONSHIPSWant62onnSTRONG9Want71333n3MEDIUM3Want81noWEAK1Want91o33n33Want1013nRawWeight525730715541215142127757Weight%19211135194558TotalMaxWeight1-5Scale5531151112BasisofQualityFunctionDeploymentQFDforProduct,ServiceandProcessStudies•QualityFunctionDeployment,orQFD,isastructuredprocessforclearlyspecifyingthecustomer'sneedsanddesires.•Theproceduretranslatesneedsanddesiresintorequirementsateachstageofproductorservicedesign,development,executionanddelivery.•QFDisverypowerfulfordevelopingorimprovingnewservices,newproducts,andindevelopingcustomer-focusedmeasurementsystems.•Thepowerofthisprocessisthatitsystematicallycombinestheknowledgeandinnovationofteammembersfromallfunctionalareasinvolvedinproductandservicerealization.HouseofQualityHierarchyHOQHOQCustomerFocusRequirementsFlow-DownCapabilityFlow-UpModeling:y=f(x1,x2,…)OverallApproachinSixSigmaPracticalProblemS