1. By Bambang Murtjahjanto The Senior Consulting Engineer

7. Implemented Six Sigma

9. Sigma Significance Sigma Defects numbers per million 1.5  500,000 2.0  308,300 2.5  158,650 3.0  67,000 3.5  22,700 4.0  6,220 4.5  1,350 5.0  233 5.5  32 6.0  3.4

12. Assume that the product in question is a television which contain 800 opportunities for error. Total production 2,500 units, found 450 defects. What is six sigma level? DPU calculation = Total # of Defect Total # of Units = 450 2,500 = 0.18 Thus, DPU X 1,000,000 Opportunity for Error = 0.18 X 1,000,000 800 = 225 DPMO = From the next table, found that sigma level : 5 < σ < 6

13. Sigma ( σ ) conversion Table: If your yield is: Your DPMO is: Your Sigma is: 30.9% 690,000 1.0 62.9% 308,000 2.0 93.3 66,800 3.0 99.4 6,210 4.0 99.98 320 5.0 99.9997 3.4 6.0

17. Improve Quality Reduce Cost Productivity Improves Capture Market Provides jobs and more jobs Models of the relationships affecting quality and business performance Deming’s Model: less rework, less scrap Increase cycle time, increase throughput better quality, lower price Overall society benefits

19. Lost Opportunity Scrap Rework Inspection Warranty Rejects Lost sales Late delivery Engineering change orders Long cycle times Expediting costs Excess inventory The Cost of Poor Quality (COPQ) “Iceberg” Traditional Quality Costs Additional Costs of Poor Quality (intangible) (tangible) 4-8% 25-35% (Easily Identified) (Difficult or impossible to measure) Lost Customer Loyalty More Setups

21. What is Six Sigma? Sigma is a statistical unit of measure which reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts per million defective (PPM), and a probability of a failure/error. The sigma value indicates how often defects are likely to occur. The higher the sigma value, the less likely a process will produce defects. As sigma increases, costs go down, cycle time goes down, and customer satisfaction goes up.

22. What is the meaning of quality??? 99% Good (3.8 Sigma) 99.9997% Good (6 Sigma) 20,000 lost articles of mail per hour Seven articles of mail lost per hour Unsafe drinking water for almost One unsafe minute every seven months 15 minutes each day 5,000 incorrect surgical operations 1.7 incorrect operations per week per week 2 short or long landings at most major one short or long landing every five airports each day years at each airport 200,000 wrong drug prescriptions per year 68 wrong drug prescriptions per year No electricity for seven hours each month One hour without electricity every 34 years

24. -6    X +1    Normal Distribution Shifted 1.5  Process Capability (Sigma) PPM Yield 2 308,537 69% 3 66,807 93.3% 4 6,210 99.3% 5 233 99.98% 6 3.4 99.9997%

25. Sigma Measures - Process Capability Performance Level SIGMA % Yield # of Defects per Million (DPM) A+ 6 99.99966 3.4 A 5 99.9767 233 B 4 99.3790 6,210 C 3 93.3 66,807 D 2 69 308,537 F 1 31 691,462 Cost of Quality % <1% of sales 5 - 15% of sales 15 - 25% of sales 25 - 40% of sales C 93.3 66,807 3 Good World-Class Average Good World-Class Average

28. Learn how the companies like General Electric, AlliedSignal, Motorola, Lockheed Martin, American Express, J.P. Morgan & Chase, and others use Six Sigma methodologies to reduce defects, improve processes, lower cost, higher profit, increase customer satisfaction, and drive improvement to a new levels. “ The Six Sigma Quality initiatives has lowered GE’s costs by dramatically reducing rework, simplifying processes, and reducing direct material costs. Design for six sigma has been a key to the introduction of numerous high-quality new products with significantly enhanced features.” John F. Welch jr., General electric Chairman and Chief Executive Officer, GE Annual Report 2000.

29. b Knowledge Management Knowledge Management b Business Results Ops Review, Strategy Review Leadership Values, Vision, Mission Learning and Growth Strategy Management Balanced Scorecard Process Management Customer Management Knowledge Management Quality Management QMS The Six Sigma System

32. QIA Six Sigma Six Sigma Implementation Model Understanding of Six Sigma Process (Executive Training) Define Business Strategy (Values, Vision, Mission) Adopt Six Sigma Process as Long Term Business Strategy for Continuous Improvement (QMS Process) Develop Measurements and Goals (Balanced Scorecard) for the Business Gap Analysis (Understand the strength & weakness), Areas for Improvement Develop Business Governance Model to Monitor Business Performance Define Roles & Responsibilities for Six Sigma Deployment Develop the Roadmap for Six Sigma Process Deployment Identify Resource Requirements Develop Six Sigma Governance Process Develop Six Sigma Training and Certification program (SSL, MBB, BB, GB) Identify Projects for Improvements Assess Business Performance related to Six Sigma Process (QMS Process)

34. Leader/ Champion Master Black Belt (MBB) Black Belts (BB) Green Belts (GB) Project Team Members Six Sigma - Roles & Responsibilities Is responsible for coordinating a business roadmap to achieve 6. Selects projects, executes control, and alleviates roadblocks for the 6 projects in his or her area of responsibility. Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required 6 competency level. Is a leader of teams implementing the 6 methodology on projects. Introduces the methodology and tools to team members and the broader organization. Delivers successful small, focused departmental projects using the success strategy. Participates on the project teams. Supports the goals of the project, typically in the context of his or her existing responsibilities. Is expected to continue to utilize learned 6 methodology and tools as part of his or her normal job.

35. We can help you to grow your business by introducing you a world class business strategy by combining your existing Quality Management System (QMS) with Six Sigma continuous improvement process. This strategy helps you to provide best quality products and services to your customer, which will help you to significantly improve customer satisfaction, business growth, lower cost and higher profits. WHAT WE CAN DO FOR YOU!!!

38. One case : Costs/Benefits to GE

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41. Why do Six Sigma? “ 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. Six Sigma has changed the DNA of GE in everything we do and in every product we design .”

53. THE DMADV METHODOLOGY AND TOOLS Define Measure Analyze Design Verify Under- stand customer needs and specify CTQs Develop design concepts and high- level design Develop detailed design and control/test plan Test design and implement full-scale processes Initiate, scope, and plan the project DESIGN FOR SIX SIGMA DELIVERABLES Team Charter CTQs High-level Design Detailed Design Pilot TOOLS   Mgmt Leadership  Customer Research  FMEA/Errorproofing   Project   QFD   Process Simulation Management   Benchmarking   Design Scorecards

55. DFSS DESIGN PROJECT CASE 1 CASE 2 CASE 3 Base Line Performance OK Current Product  DPMO COPQ Design Current Processes Manufacturing Distribution Service Marketing REDESIGN  Cp, Cpk COPQ  DPMO COPQ Current Product NEW PROCESS DESIGN Product Base Line Performance OK (May be of little value) New Product NEW PRODUCT AND PROCESS DESIGN No Base Line Performance CTQ’s High-level Design CTQ GAP “Base Line Performance” Design Scorecard But : No Current Product or Process Design New Processes New Processes

56. See you at better place and time with MCTS Dr. Joseph M. Juran, The Father of Breakthrough Improvement

57. QUESTIONS PLEASE ?