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Section II: Six Sigma Goals
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Black Belts are individuals that are trained in the application of Six Sigma philosophy. Black Belts typically receive 160 hours of training and work full-time on projects.
They are change agents, and by working with the employees, will increase knowledge through the acquisition of data.
Working together will make this philosophy part of the company culture in all aspects of the business.
What are Black Belts?
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Green Belts are individuals that may come from various backgrounds in any functional area. (manufacturing or transactional/office)
They are respected by their peers and are proficient in basic and advanced process improvement tools.
Green Belts assist the Black Belts, leads process improvement teams within their own natural work team, trains and coaches on tools and analysis, is typically part-time on a project, and may lead groups or organization where multiple projects are being worked.
What are Green Belts?
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The Six Sigma Infrastructure
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3s Process Centered
• Process is slightly
WIDER than the
specifications,
causing waste and
cost of poor quality
6s Process Centered
• Process FITS well
within the
specifications, so
even if the process
shifts, the values
fall well within
tolerances
Lower
Specification
Limit
Upper
Specification
Limit
Determined by
the customer
-6s
Determined by
the customer
+5s +6s
3sProcess
+4s+1s +2s +3s-2s -1s-4s -3s-5s
WASTE
-6s 0
6sProcess
+4s+5s+6s+1s +2s+3s-2s -1s-4s -3s-6s -5s 0
WASTE
What is Six Sigma?
Six Sigma is MUCH
more than this!
Metric based on standard deviation
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A statistical number ◦ 3.4 parts per million defective
(+/- six standard deviations with mean shift of +/-1.5s)
A proven, powerful five-step methodology for improving any process◦ Define - Measure - Analyze - Improve -
Control◦ Tools are nothing new, but extremely
powerful when executed in strict sequence
A culture, a mindset◦ the relentless pursuit and
elimination of variation A business methodology
What is Six Sigma?
Sigma Defects 2 308,537 3 66,807 4 6,210 5 233 6 3.4
A Six Sigma business lives these concepts in everything they do.
0.150.140.130.120.110.100.090.08
Upper SpecLower Spec
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6s is: a comprehensive business
methodology for achieving breakthrough improvement in performance by linking metrics and goals to innovation
6s is not: a quality initiative from the
quality department
What Six Sigma is and is not
The elevator speech: Six Sigma is the relentless pursuit of
variation reduction in all business processes.
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Aggressive goals
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Benchmarking
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Define Describe in detail the
process/product you are trying to improve?
Measure Baseline
Analyze Identify the Critical Few
Improve Reduce Variation Error Proofing
Control Control input Control Plan
DMAIC
See Quality Digest Article (MAIC_Introvert/Extrovert)
Measure
Analyze
Control
Improve
Characterize
OptimizeD
efin
e
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1. What are my processes? (SIPOC)
2. What is the capability (sigma level) / defect levels (PPM) of my processes? (Defect sheets, histograms, run charts)
3. Which processes have the highest defect levels? (Pareto analysis)
4. Who would I need on my team to eliminate the defects? (Team building)
5. What is causing the variation / defects? (Cause and effect diagrams; “Fishbone”)
6. Is my gaging at fault? (Gage R&R studies)
7. Are all of the steps necessary in my process? (Process mapping)
8. Which steps can be removed to reduce cycle time, eliminate waste? (Work simplification / Waste elimination)
9. Are there set-up reduction opportunities? (SMED analysis)
10. How can I prevent this problem from reoccurring? (Error proofing, poka-yoke)
11. Are there simple visual aids that could help reduce defects? (Visual controls)
12. Are there designed experiments that could shed some light on the situation? (DOE)
13. Do I have the right tools available to do the job? Are tools organized in a neat and orderly manner in the work area? Is everything clearly labeled? (5S and ergonomics)
14. Can this problem be solved quickly, or is an in-depth investigation using a Black Belt or Kaizen event necessary? (Six Sigma project / Kaizen event identification)
“14 Questions”
These 14 knowledge questions will lead you through the
DMAIC steps II-4
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Why do we need Six Sigma?
Profit
COPQTheoretical
COSTS
Profit
Profit Profit
TotalCost to
Produceor
Provide
Waste(COPQ)
TheoreticalCosts i.e..,Cost of Doing
the Right
Things Right the First Time
Waste(COPQ)
Theoretical
COSTS
Total Product or Service Price to Customers
Budget Constraints and Competition Drive a
Lowered Price
a. b. c. d. e.0
“The price of gaining knowledgeis nothing compared to the costof ignorance.” Anonymous
Pri
ce $
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Why “Six” Sigma?
There is a correlation between a company’s Cost of Quality and the
s rating of its key processes.
0
5
10
15
20
25
30
35
40
45
2 3 4 5 6
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4X : 6X
Why Six Sigma cont....
Traditional Quality CostsInspection, Warranty,Scrap, Rework, RejectsTangible...easy to measure!
Additional COPQMore setups, ExpeditingCosts, Lost Sales, Late Delivery, etc...Intangible...difficult or impossible to measure!
If Company Sales = $300M
Traditional Costs = 4 - 6% of Sales= $15M
Additional COPQ = 25 - 35% of Sales!
= $90MII-4
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Must have management support and understand COPQ
Must see ROI and customer satisfaction increase
Don’t give up – no turning back NEVER remove anyone from the
company because of process improvement
Rigorous Black/Green Belt selection process
Six Sigma implementation should follow the DMAIC cycle
Must have management support and understand COPQ
Lessons Learned
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Provides common measurement and common goals
Promotes team work Fixes quality problems Beats the competition Runs our whole business more
effectively Puts more money on our bottom
line Promotes prevention rather
than detection
In Summary, Six Sigma...
Focus should be on:- Quality- Delivery- Responsiveness- Cost II-6
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COPQ is defined as costs associated with using / maintaining business processes that produce services or products of inferior quality. There are four recognized categories:
◦ Prevention costs: costs related to avoiding costs in three areas listed below, as well as avoiding general quality failures.
◦ Appraisal costs: assessing sufficient conformance to quality requirements
◦ Internal failure costs: finding/correcting defects prior to delivery to the customer
◦ External failure costs: delivering inferior services or products to the customer
Cost of Poor Quality (COPQ) See V-59
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Preventative Costs: Training Quality Planning Design Review Quality system audits Continuous
improvement Technical data review Process validation Marketing research Customer surveys Field trials Supplier quality
planning SPC Process Control
Appraisal Costs: Receiving/Incoming
Inspection and Test Measurement
Equipment Qualification of
Supplier Product Source Inspection and
Control Programs Planned Inspections,
Tests Product or Service
Quality Audits Review of Test and
Inspection data Set-up Inspections and
Tests Depreciation
Allowances Measurement
Equipment Expense Special Product
Evaluations Evaluations of Field
Stock and Spare Parts Process Control
Measurement
Cost of Quality Examples See V-59-61
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Blame and trainTry to widen tolerancesAdd inspection operations
Which do you think will be effective?
Typical response to process problems…
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Four fully armored aircraft carriers launched fifteen flights of fighter planes on a daily basis. In each flight of planes, there were four F-15's, five F-14's, and a few support aircraft. For three hours the planes flew, finding target after target to attack, with few enemy fighters to bother them. Finally, after the mission was over, they did a flyby at the airfield, to show their friends how well they had fared. Their mission had been very successful.
Inspection and Six Sigma
How many F’s do YOU see?How many F’s do YOU see?
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Reliability on visual inspection methods?
1. How many F's did you find in the story after reading it only once? _______ 2. How many F's did you find in the story after reading it through the second time? _______ 3. What was your range from your first to second reading? _______ 4. How is this similar to common inspection systems?________________________________________________________________________________________________________________________________ 5. What is the most cost-effective way to prevent non-conformances from passing through the system?________________________________________________________________________________________________________________________________
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There were 29 F’s How many did you find?
Do you still think inspection is the answer?
How Many F’s?
Visual inspection only catches 85% of the errors*
I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdgnieg THE PAOMNNEHAL PWEOR OF THE HMUAN MNID. Aoccdrnig to rscheearch atCmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a word are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter byistlef, but the wrod as a wlohe. Amzanig huh?
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The Boeing Company
D1-9000
Long-Range Mission
To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability, and growth.
Objectives
To fulfill the Boeing mission, the following objectives will guide company actions.
Continuous improvement in quality of products and processes
A highly skilled and motivated workforce
Capable and focused management
Commitment to integrity
Technical excellence
Financial strength
Introduction
Continuous improvement in quality of products and processes
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously
improve the overall efficiency and productivity of our design, manufacturing, administrative and support organizations.
The ability of Boeing to successfully accomplish its mission is dependent upon the quality of
hardware provided by our suppliers.
The primary purpose of this document is to establish The Boeing Company’s quality requirements for its suppliers. The focus is on defect
prevention rather than defect detection! Use of statistical methods described in this document enables suppliers to reduce variation in their
processes in order to prevent defects. This variation reduction will provide direct benefits to both Boeing and the supplier.
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The Quality Tradeoff
DetectionPrevention
InspectionReworkScrapWarrantyRejections
SPCProblem SolvingProcess Improvement
$ $
1. Where do we spend most of our money?
________________________________________________________________________________________________________________________________
2. How can the small moneybag on the left balance the large moneybag on the right?
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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The Cost of Poor QualityFailure Costs Examples:
• Scrap• Rework• Customer Complaint Investigation• Returned Goods• Retrofit Costs• Recall Costs• Warranty Claims• Liability Costs• Penalties• Customer/User Goodwill • Other Failure Costs
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Perception and intuition are not always reality
To gather the facts for good decision making
Paradigms can limit our thought process
To identify/verify problem areas/bottlenecks
To understand our processes better (which factors are important, which are not)
To characterize our processes (to know how inputs and outputs are related)
Why do we need metrics?
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To validate our processes (are they performing within requirements/specs)
To evaluate customer satisfaction
To document our processes and communicate about them
To baseline a process To see if our processes are
improving To determine if a process is
stable or predictable and how much variation is inherent in the process
Why do we need metrics? (cont..)
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Business functions are rarely well defined nor managed as production processes
Measurements are typically non-existent
Traditional cost accounting systems don’t capture true costs of business processes
Many business processes are not tied to strategic objectives of the organization
They are complex and cross functional in nature
Why are Business Processes Difficult to Measure?
-Quoted from “Six Sigma on Business Processes: Common Organizational Issue”s, Six Sigma Associates
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The Main Idea:
Y = f(x)Y is the dependent output variable of a process. It is used to monitor a process to see if it is out of control, or if symptoms are developing within a process. It is a function of the Xs that contribute to the process. Once quantified through Design of Experiment, a transfer function Y=f(X) can be developed to define the relationship of elements and help control a process.
Y is the output measure, such as process cycle time or customer satisfaction. f(x) is the transfer function, which explains the transformation of the inputs into the output. x is any process input process step that is involved in producing the output.
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A Short Story….
“A manager of a large agricultural collective in the former Soviet Union three years in a row won the prize for the most productive collective. The performance measure used was the number of kilos of meat produced per year. The fourth year, he shot himself. He had no breeding stock left.
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• Output Variables
Sales Growth
Market Share
Profitability
A Traditional View
Manage the outputs.
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• Output Variables
• Input Variables
Sales Growth
Market Share
Profitability
Customer Satisfaction
Product Quality
On-Time Delivery
COPQ
Credit Terms
Service
Customer
Training
A Non-traditional View
Manage the inputs - respond to the outputs.
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The percentage of parts from a process that are free of defects.
It is also defined as the percentage of met commitments (total of defect free events) over the total number of opportunities.
YieldSee V-18
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Time frame: 4 weeks
Quantity launched: 100 parts in one-piece flow
Process: 2 processes including 3 operations (A-B-C)
Process 1
Operation A Yield: 100 %
Operation B Yield: 100%
Operation C Yield: 100%
Process 2
Operation A Yield: 90 %
Operation B Yield: 90%
Operation C Yield: 90%
Example:
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A B C
100 100 100 100
PARTS OUT
Y = 100% Y = 100% Y = 100%
THE TOTAL PROCESS YIELD= 1*1*1= 1 or 100%
100 90 81 73
A B C
Y = 90% Y = 90% Y = 90%
Process 1
Process 2
THE TOTAL PROCESS YIELD= 0.9*0.9*0.9= 0.73 or 73%
PARTS OUTPARTS IN
PARTS IN
Rolled Throughput Yield
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1. Each team will be handed 20 cards.2. Each team will have three operators,
each of whom will drop one card at a time onto a target area.
3. The method of drop will be to hold the card straight out at arms length (while standing upright) over the target area or not. Only those cards that fall completely within the target area may move on.
4. The goal is to deliver 20 completed products or units to the customer.
5. Metrics-1. # of good units per station (A)2. # of cards used per station (B)3. Total time of exercise (C)4. Total # of defects (D)
Exercise: FPY / RTY
Station 1 Station 2 Station 3 Customer
Start
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Exercise cont…
A = # of good units B = # of cards
A1= B1=
A2= B2=
A3= B3=
FPY: Y1 = A1/B1 =
Y2 = A2/B2 =
Y3 = A3/B3 =
RTY = Y1 * Y2 * Y3
Total Cost = ($10 * D) + ($2 *[B1+B2+B3])=
Average cost per unit = Total cost / 20 =
Average cycle time = C / 20 =
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RTY chart99-100%90-99%0-90%
# of Steps +/- 3 Sigma +/- 4 Sigma +/- 5 Sigma +/- 6 Sigma1 93.32% 99.379% 99.9767% 99.99966%7 61.63% 95.733% 99.837% 99.998%
10 50.09% 93.961% 99.767% 99.997%20 25.09% 88.286% 99.535% 99.993%40 6.29% 77.944% 99.072% 99.986%60 1.58% 68.814% 98.612% 99.980%80 0.40% 60.753% 98.153% 99.973%
100 0.10% 53.637% 97.697% 99.966%150 0.00% 39.282% 96.565% 99.949%200 0.00% 28.769% 95.446% 99.932%300 0.00% 15.431% 93.248% 99.898%400 0.00% 8.277% 91.100% 99.864%500 0.00% 4.439% 89.002% 99.830%600 0.00% 2.381% 86.952% 99.796%700 0.00% 1.277% 84.949% 99.762%800 0.00% 0.685% 82.992% 99.728%900 0.00% 0.367% 81.081% 99.694%
1,000 0.00% 0.197% 79.213% 99.661%1,200 0.00% 0.057% 75.606% 99.593%3,000 0.00% 0.000% 49.704% 98.985%
17,000 0.00% 0.000% 1.904% 94.384%38,000 0.00% 0.000% 0.014% 87.880%70,000 0.00% 0.000% 0.000% 78.820%
150,000 0.00% 0.000% 0.000% 60.050%
(Distribution shifted +/- 1.5 Sigma)Overall Yield vs. Sigma
a.k.a. LeanSigma
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The idea of capability:
What’s the probability of
a bent fender?
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The idea of control:
What’s the probability of
a bent fender…if the driver is not in
control?
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Process Control
Size
Tim
e
Out of Control
Special causes are present
In Control
Special causes are eliminated
Definition of a Special Cause: A quality failure
outside of the normal process that is unpredictable,
intermittent or unstable.
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Process Capability
Size
Tim
e
In Control but not capable
Variation from common causes are excessive
In Control and Capable
Variation from common causes are reduced
Upper Specification limit
Lower Specification limit
Definition of a Common Cause: A quality failure that is
always present as part of the random variation in the normal process.
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Variability
USLLSL
T
USLLSL T
Reduce Process Variation
to Improve Process
Capability
Reduce Process Variation
to Improve Process
Capability
6s = only using
half the
tolerance
6s = only using
half the
tolerance
50%
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