Lean Six Sigma

Overview of Six SigmaOverview of Six Sigma

Introduction to Six Sigma

• Invented by Motorola, Inc. in 1986 as metric for measuring defects andmetric for measuring defects and improving quality.

• Now it is a business improvement th d l th t f tmethodology that focuses on customer

requirements, process alignment, l ti l i d ti l tianalytical rigor, and timely execution.

Prepared by: Jeffrey F. Singson, PMEFor: PSME-SA 18th TS – June 4, 2010

What is Six Sigma?

• The term “Sigma” often used as a scale for level of “goodness” or quality.level of goodness or quality.

Si Si i l l f 6 t 3 4• Six Sigma or sigma level of 6 equates 3.4 defects per million opportunities

• Purpose is to improve quality, reduce p p q ywaste and to reduce costs in any business process.


p

Sigma Table

SIGMA LEVEL DPMO YIELD

1 691, 462 30.9%

2 308,537 69.1%

3 66,807 93.32%

4 6,210 99.379%

5 233 99.9767%

6 3.4 99.99966%

Calculation of Sigma level is either by DPMO or Cpk


either by DPMO or Cpk

Sigma Calculation by DPMO

Defects Per Million Opportunities (DPMO) = (Total Defects / Total Opportunities) * 1,000,000 Defects (%) = (Total Defects / Total Opportunities)* 100% Yield (%) = 100 - %Defects Process Sigma (type this formula into Excel):

=NORMSINV(1-(total defects / total opportunities))+1.5

Note: Be sure to include the Equals (=) sign. This will give you your process sigma (or sigma capability) with 1.5 sigma shift.

For example if you type this into Excel, =NORMSINV(1-100/1000000)+1.5 you will get 5.22 for your Process Sigma


Sigma Calculation by Cpk

Sigma level = 3Cpk + 1.5Where : Cpk(Process Capability Index ) = Cp (1 - k)C ( f ) { (( )/( * )) OCp(capability of a process) = min{ ((HTL-nominal)/(3*std_dev)) OR

((nominal-LTL)/(3*std_dev)) }with:

HTL = Higher Test LimitgLTL = Lower Test Limitnominal = nominal value = (HTL+LTL)/2std_dev = standard deviation of measured value

k = (nominal-mean) / (HTL-LTL)/2f d l fit b t th li itmean = mean of measured value can fit between the limits

NOTE: Cannot use this method to calculateNOTE: Cannot use this method to calculate sigma level if the data are not normally

distributed


Uses of Six Sigma

As MetricReduce defects in manufacturing and other b ibusiness processes

Business MethodologyBusiness MethodologyProcess improvement that focuses an organization on understanding and managingorganization on understanding and managing customer requirements, aligning key business process to achieve those requirements utilizing rigorous data analysisrequirements, utilizing rigorous data analysis to minimize variation on those process, and driving rapid and sustainable improvement to b i


business processes.

Why Six Sigma

Management SystemSix sigma is a high performance for executingSix sigma is a high performance for executing business strategy, and a top-down solution to help organizations: - Align their business strategy to critical

improvement effortsMobilize teams to attack high impact projects- Mobilize teams to attack high impact projects

- Accelerate improvement business result- Govern efforts to ensure improvement isGovern efforts to ensure improvement is

sustained


Hierarchy of Six SigmaThe Champion promotes and maintains the Six Sigma principle and strategy within the organization, and ensures that all stakeholders are adequately supported, resourced and funded.

A Black Belt achieves “Master” status after demonstrating experience and impact over some period of time.

A six sigma expert, highly skilled in the application of rigorous statistical tools and methodologies to drive business process improvement.

A six sigma practitioner trained in the methodology and tools needed to work effectively on a process improvement team.

The Yellow Belt gathers data, participates in problem-solving exercises, and adds their personal experiences to th l ti


the exploration process.

Six Sigma Methodologies

• DMAIC – The Six Sigma problem-solving framework for improving business process. p g pDefine-Measure-Analyze-Improve-Control

• DMADV – Is a Six Sigma framework used as a proactive approach to building six sigmaa proactive approach to building six sigma performance into the up front design of a new product services or processproduct, services or process.Define-Measure-Analyze-Design-Verify


DMAIC

• Define the project goals and customer (internal and external) deliverables(internal and external) deliverables

• Measure the process to determine current performanceperformance

• Analyze and determine the root cause(s) of the defectsof the defects

• Improve the process by eliminating defects • Control future process performance


DMAIC Model


DMADV

• Define the project goals and customer (internal and external) deliverables M d d t i t d d• Measure and determine customer needs and specifications

• Analyze the process options to meet theAnalyze the process options to meet the customer needs

• Design (detailed) the process to meet the customer needs

• Verify the design performance and ability to meet customer needsmeet customer needs


DMADV Model


DMAIC or DMADV?


Lean

• Also known in the Japanese Methodology as Toyota Production Systemy y

• Lean - Identifying ‘waste’ or ‘non-value-added activities’ to speed-up production oradded activities to speed up production or manufacturing

• Lean is a strategy that seeks to produce a• Lean is a strategy that seeks to produce a high level of output with a minimum of inventoryinventory

• Lean means Speed


Lean Six Sigma

Lean Six Sigma is a combination of Lean and Six Sigma Methodology

Why Lean Six Sigma?Lean cannot bring a process under statistical controlcontrolSix Sigma alone cannot dramatically improve process speed or reduce invested capitalBoth enable the reduction of the cost of complexity

What sets Lean Six Sigma apart from its individual components is the recognition that you cannot do "just quality" or "just speed," you need a balanced process that can help an organization focus on improving service


g gquality, as defined by the customer within a set time limit.

LSS Approach and Benefits


Lean Six Sigma Tools

Define:- Project Charterojec C a e- Stakeholder Analysis- SIPOC (Supplier Inputs Process OutputsSIPOC (Supplier, Inputs, Process, Outputs,

Customers)-- Voice of the CustomersVoice of the Customers- Affinity Diagram- Kano ModelKano Model- Critical to Quality (CTQ) Tree



Measure:- Prioritization Matrixo a o a- Process Cycle Efficiency- Time Value AnalysisTime Value Analysis- Pareto Charts- Control Charts- Control Charts- Run Charts

Failure Modes and Effect Analysis (FMEA)- Failure Modes and Effect Analysis (FMEA)



Analyze:- 5 Whys Analysis5 ys a ys s- Brainstorming- Cause and Effect DiagramCause and Effect Diagram- Affinity Diagram- Control Charts- Control Charts- Flow Diagrams

Pareto Charts- Pareto Charts- Regression Analysis

Scatter Plots


- Scatter Plots


Improve:- Brainstorminga s o g- Follow charting - FMEAFMEA- Stakeholder Analysis- Setup Reduction- Setup Reduction- Queuing Methods for Reducing Congestion

and Delaysand Delays- 5S's Method- Kaizen


- Kaizen


Control:- Control ChartsCo o C a s- Flow Diagrams- Charts to compare before and after such asCharts to compare before and after, such as

Pareto Charts- Quality Control Process ChartsQuality Control Process Charts- Standardization


I d id A li iIndustry-wide Application


Automotives


Continuous Process Plants


Engineering Parts Manufacturing


Textiles/Fashion houses/Garments


Information Technology


Telecom


Research & Development/Product Designg


Th k !!!Thank you !!!


Lean Six Sigma

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