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Introduction to Six Sigma




Mohammad Mostafizur Rahman
Process Support, COP




                             March 11, 2012   1
Outline
Six Sigma history.
Quality Management Quality Costs TQM.
Six Sigma Definition.
COPQ Vs Six Sigma.
Process and Data analysis.
Six Sigma Tools and Techniques.
Process Define and Improve.
Defects and DPMO.
Six Sigma Math.
Specification and Control Limits.
Sigma Vs DPMO.
Six Sigma Belts.




                                         March 11, 2012   2
Benefits achieved by Companies




                                 March 11, 2012   3
Quality




          March 11, 2012   4
Dimensions of Quality




     Quality of a product or service is measured by eight dimensions




                                                          March 11, 2012   5
Dimensions of Quality




   Performance : Main features like for a car Engine HP, Gear, Speed
   etc




                                                          March 11, 2012   6
Dimensions of Quality




   Features : Supplementary features like for a car Seat Covers, Color
   etc




                                                           March 11, 2012   7
Dimensions of Quality




   Reliability : Probability of a product or service malfunction or failing
   within a specified time period.




                                                                March 11, 2012   8
Dimensions of Quality




   Conformance: Meeting established standards.




                                                 March 11, 2012   9
Dimensions of Quality




   Durable: Measure of product life. Amount of time a product can be
   used.




                                                           March 11, 2012   10
Dimensions of Quality




   Serviceability: easy of repair, Availability of services, duration and
   cost of to repair.




                                                                March 11, 2012   11
Dimensions of Quality




   Aesthetics: Objective dimension of quality. How a product will be
   rated on the ground of personal choice. How it feels, Sounds, Smells
   etc.




                                                           March 11, 2012   12
Dimensions of Quality




   Perceived: Perceived Quality refers to what consumers perceive to
   be the quality of a product based on image, advertising, and brand
   name reputation




                                                           March 11, 2012   13
Quality Control Vs Quality Assurance




                                       March 11, 2012   14
Quality Management System




                            March 11, 2012   15
Quality Management System




                            March 11, 2012   16
Steps in Quality Management

                           Identify Quality Requirement
      Plan Quality
                           Define Standards.




                                Audit Quality Requirement.
Perform Quality             Ensure Appropriate Quality Standards
Assurance                                are used




                                Monitoring , recording result of
 Perform Quality Control
                                          execution.
                               Recommend necessary change.




                                                     March 11, 2012   17
Cost of Quality
Cost Incurred to prevent nonconformance to the
quality over the life cycle of a product.        Internal Failure Cost
                                                 Rework.
                                                 Scrap.




                                                 External Failure Cost
                 Prevention Cost                 Liabilities.
                 Training.                      Warranty work.
                 Doc Processing.                Lost of business.
                 Equipment.
                 Time to do right.




                Appraisal Costs
                Testing.
                Inspection.




                                                        March 11, 2012   18
Cost of Poor Quality




                       March 11, 2012   19
Total Quality Management (TQM)
all members of an organization participate in improving processes, products, services and the
culture in which they work.

management approach to long–term success through customer satisfaction.


 A core concept in implementing TQM is Deming’s 14 points, a set of management practices to
 help companies increase their quality and productivity:

 Create constancy of purpose for improving products and services.
 Adopt the new philosophy.
 Cease dependence on inspection to achieve quality.
 End the practice of awarding business on price alone; instead, minimize total cost by working with a
 single supplier.
 Improve constantly and forever every process for planning, production and service.
 Institute training on the job. Adopt and institute leadership.
 Drive out fear.
 Break down barriers between staff areas.
 Eliminate slogans, exhortations and targets for the workforce.
 Eliminate numerical quotas for the workforce and numerical goals for management.
 Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit
 system.
 Institute a vigorous program of education and self-improvement for everyone.
 Put everybody in the company to work accomplishing the transformation.


                                                                                        March 11, 2012   20
Definition




             March 11, 2012   21
Definition
Six Sigma is a rigorous and a systematic methodology that utilizes
information (management by facts) and statistical analysis to measure
and improve a company's operational performance, practices and
systems by identifying and preventing 'defects' in manufacturing and
service-related processes in order to anticipate and exceed expectations
of all stakeholders to accomplish effectiveness.




                                                           March 11, 2012   22
Definition




             March 11, 2012   23
Philosophy




             March 11, 2012   24
COPQ Vs Sigma Level




                      March 11, 2012   25
Process




          March 11, 2012   26
Data Analysis




                March 11, 2012   27
Six Sigma TT
Design of Experiment       SIPOC

Regression Analysis        Voice Of Customer

Control Chart
                           Kano Model

Ran Chart                  Technological Advancement
Sensitivity Analysis
                           Rewarding and Recognition
Cause and Effect Diagram

Histogram, Pareto Chart

Flow Chart

Process Analysis

Benchmarking


                                               March 11, 2012   28
Kano Model
The Kano Model is used to visually model the customer provided characteristics versus the
level of satisifaction each characteristic delivers. It is used after gathering the Voice of the
Customer (VOC) phase. It is often used in A DFSS project and works with Quality Functional
Deployment (QFD).

Objective:
Gather all the customer to deliver the most satisfying product, process, or service.
•Dissatisfying - annoying features - avoided characteristics
•Mandatory expectations - basics - must have characteristics
•Customer needs - reasonable expectations - performing features
•Delighters - surprise - innovators - unexpected features

It is a graphical model that shows the relationship between each characteristic to the level
of customer satisfaction.
It is used to organize and prioritize activities to design and/or improve.




                                                                                   March 11, 2012   29
Kano Model




             March 11, 2012   30
FMEA
A failure modes and effects analysis (FMEA) is a procedure in product
development and operations management for analysis of potential failure modes
within a system for classification by the severity and likelihood of the failures. A
successful FMEA activity helps a team to identify potential failure modes based
on past experience with similar products or processes, enabling the team to
design those failures out of the system with the minimum of effort and resource
expenditure, thereby reducing development time and costs. It is widely used in
manufacturing industries in various phases of the product life cycle and is now
increasingly finding use in the service industry. Failure modes are any errors or
defects in a process, design, or item, especially those that affect the
customer, and can be potential or actual. Effects analysis refers to studying the
consequences of those failures.




                                                                    March 11, 2012   31
FMEA

Failure
       The loss of an intended function of a device under stated conditions.
Failure mode
       The manner by which a failure is observed; it generally describes the way the failure occurs.
Failure effect
       Immediate consequences of a failure on operation, function or functionality, or status of some item
Indenture levels
       An identifier for item complexity. Complexity increases as levels are closer to one.
Local effect
       The failure effect as it applies to the item under analysis.
Next higher level effect
       The failure effect as it applies at the next higher indenture level.
End effect
       The failure effect at the highest indenture level or total system.
Failure cause
       Defects in design, process, quality, or part application, which are the underlying cause of the failure or which initiate a
       process which leads to failure.
Severity
       The consequences of a failure mode. Severity considers the worst potential consequence of a failure, determined by the
       degree of injury, property damage, or system damage that could ultimately occur.




                                                                                                             March 11, 2012          32
FMEA




       March 11, 2012   33
Example FMEA Worksheet


                                                      FMEA
                                                                                                              Respon
                    Potenti                                                            RPN
            Potenti               S    Potenti     O                   D     CRIT                              sibility
   Item /               al                              Current                        (risk
                al            (severit     al  (occurr             (detecti (critical          Recommend        and     Action   New New New    New
  Functio           Effects                             control                       priority
            Failure               y    Cause( ence                    on    charact             ed actions     target   taken     S   O   D     RPN
       n               of                                   s                         number
             mode              rating)     s)   rating)             rating) eristic                           complet
                    Failure                                                               )
                                                                                                              ion date
                                                                                               Perform cost
                                                           Fill
                                         level                                                   analysis of
                                                        timeout
             High                      sensor                                                      adding
                     Liquid                              based                                                  Jane
             level                      failed                                                   additional
                    spills on                           on time                                                 Doe
   Fill tub sensor                8      level     2                   5       N         80        sensor
                    custom                              to fill to                                            10-June-
             never                     sensor                                                     halfway
                    er floor                               low                                                  2011
              trips                    disconn                                                  between low
                                                          level
                                        ected                                                  and high level
                                                        sensor
                                                                                                  sensors




                                                                                                                         March 11, 2012        34
Example FMEA Worksheet


                                FMEA
  Step 1: Occurrence
  In this step it is necessary to look at the cause of a
  failure mode and the number of times it occurs

  Rating                         Meaning
                                 No known occurrences on
  1                              similar products or
                                 processes
  2/3                            Low (relatively few failures)
                                 Moderate (occasional
  4/5/6
                                 failures)
  7/8                            High (repeated failures)
                                 Very high (failure is almost
  9/10
                                 inevitable)



                                                                 March 11, 2012   35
Example FMEA Worksheet


                                                  FMEA
  Step 2: Severity
    failure modes are: Electrical short-circuiting, corrosion or deformation. A failure mode in one component can lead to a failure mode in
    another component, therefore each failure mode should be listed in technical terms and for function. Hereafter the ultimate effect of
    each failure mode needs to be considered. A failure effect is defined as the result of a failure mode on the function of the system as
    perceived by the user.




     Rating           Meaning
     1                No effect

     2                Very minor (only noticed by discriminating customers)

     3                Minor (affects very little of the system, noticed by average customer)

     4/5/6            Moderate (most customers are annoyed)

     7/8              High (causes a loss of primary function; customers are dissatisfied)

                      Very high and hazardous (product becomes inoperative; customers angered; the failure may result
     9/10
                      unsafe operation and possible injury)




                                                                                                                 March 11, 2012          36
Example FMEA Worksheet


                                       FMEA
  Step 3: Detection
    The assigned detection number measures the risk that the failure will escape detection. A high
    detection number indicates that the chances are high that the failure will escape detection, or in other
    words, that the chances of detection are low.


     Rating       Meaning
     1            Certain - fault will be caught on test
     2            Almost Certain
     3            High
     4/5/6        Moderate
     7/8          Low

     9/10         Fault will be passed to customer undetected



                                                                                       March 11, 2012     37
Example FMEA Worksheet


                              FMEA
  Risk priority number (RPN)
   After ranking the severity, occurrence and
   detectability the RPN can be easily
   calculated by multiplying these three
   numbers: RPN = S × O × D




                                                March 11, 2012   38
Process Definition and Improvement




                               March 11, 2012   39
Process Definition and Improvement




                               March 11, 2012   40
Defect opportunity and DPO




                             March 11, 2012   41
Defect opportunity and DPO




                             March 11, 2012   42
Six Sigma Math

  Variance



  Mode               Deviation


                                              Range
         Standard                Median
         Deviation



                            Mean
    Range



                                          March 11, 2012   43
Calculation of Std.




                      March 11, 2012   44
Calculation of Std.




                      March 11, 2012   45
Calculation of Std.




                      March 11, 2012   46
Calculation of Std.




                      March 11, 2012   47
Calculation of Std.




                      March 11, 2012   48
Probability Distribution




                           March 11, 2012   49
Limits

         Under Normal Distribution 99.7 %
           outcome will fall under 3 Std
                   Deviation




                         March 11, 2012     50
Limits




         March 11, 2012   51
Six Sigma Process




                    March 11, 2012   52
Process Shift




                March 11, 2012   53
Sigma Vs DPMO




                March 11, 2012   54
Six Sigma Approach




                     March 11, 2012   55
Implement Six sigma
                                               Strategic planning helps us “focus”
                                                 on key projects to reach our
                                                 Vision.
Process Management helps
  us maintain good results
  as we perform our            Strategic                    Process Improvement
  Mission.                     Planning                     using the DMAIC
                                                            process helps us fix
                                                            work problems and
                                                            improve our
                             Six Sigma                      Performance.

                   Process                   Process
                  Management               Improvement




To be successful as an organization, we must learn how to
          effectively apply ALL three (3) areas.

                                                                March 11, 2012   56
Application Area
                      Service
                                    Design
      Management

                                                   Purchase



Administration         Six Sigma
                       Methods                   Production



                                                    IT
            Quality
            Depart.
                      HRM          M&S
                                             March 11, 2012   57
Trainings




            March 11, 2012   58
Q&A




      March 11, 2012   59
Six sigma

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Six sigma

  • 1. Introduction to Six Sigma Mohammad Mostafizur Rahman Process Support, COP March 11, 2012 1
  • 2. Outline Six Sigma history. Quality Management Quality Costs TQM. Six Sigma Definition. COPQ Vs Six Sigma. Process and Data analysis. Six Sigma Tools and Techniques. Process Define and Improve. Defects and DPMO. Six Sigma Math. Specification and Control Limits. Sigma Vs DPMO. Six Sigma Belts. March 11, 2012 2
  • 3. Benefits achieved by Companies March 11, 2012 3
  • 4. Quality March 11, 2012 4
  • 5. Dimensions of Quality Quality of a product or service is measured by eight dimensions March 11, 2012 5
  • 6. Dimensions of Quality Performance : Main features like for a car Engine HP, Gear, Speed etc March 11, 2012 6
  • 7. Dimensions of Quality Features : Supplementary features like for a car Seat Covers, Color etc March 11, 2012 7
  • 8. Dimensions of Quality Reliability : Probability of a product or service malfunction or failing within a specified time period. March 11, 2012 8
  • 9. Dimensions of Quality Conformance: Meeting established standards. March 11, 2012 9
  • 10. Dimensions of Quality Durable: Measure of product life. Amount of time a product can be used. March 11, 2012 10
  • 11. Dimensions of Quality Serviceability: easy of repair, Availability of services, duration and cost of to repair. March 11, 2012 11
  • 12. Dimensions of Quality Aesthetics: Objective dimension of quality. How a product will be rated on the ground of personal choice. How it feels, Sounds, Smells etc. March 11, 2012 12
  • 13. Dimensions of Quality Perceived: Perceived Quality refers to what consumers perceive to be the quality of a product based on image, advertising, and brand name reputation March 11, 2012 13
  • 14. Quality Control Vs Quality Assurance March 11, 2012 14
  • 15. Quality Management System March 11, 2012 15
  • 16. Quality Management System March 11, 2012 16
  • 17. Steps in Quality Management Identify Quality Requirement Plan Quality Define Standards. Audit Quality Requirement. Perform Quality Ensure Appropriate Quality Standards Assurance are used Monitoring , recording result of Perform Quality Control execution. Recommend necessary change. March 11, 2012 17
  • 18. Cost of Quality Cost Incurred to prevent nonconformance to the quality over the life cycle of a product. Internal Failure Cost Rework. Scrap. External Failure Cost Prevention Cost Liabilities. Training. Warranty work. Doc Processing. Lost of business. Equipment. Time to do right. Appraisal Costs Testing. Inspection. March 11, 2012 18
  • 19. Cost of Poor Quality March 11, 2012 19
  • 20. Total Quality Management (TQM) all members of an organization participate in improving processes, products, services and the culture in which they work. management approach to long–term success through customer satisfaction. A core concept in implementing TQM is Deming’s 14 points, a set of management practices to help companies increase their quality and productivity: Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. Improve constantly and forever every process for planning, production and service. Institute training on the job. Adopt and institute leadership. Drive out fear. Break down barriers between staff areas. Eliminate slogans, exhortations and targets for the workforce. Eliminate numerical quotas for the workforce and numerical goals for management. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. Institute a vigorous program of education and self-improvement for everyone. Put everybody in the company to work accomplishing the transformation. March 11, 2012 20
  • 21. Definition March 11, 2012 21
  • 22. Definition Six Sigma is a rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance, practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness. March 11, 2012 22
  • 23. Definition March 11, 2012 23
  • 24. Philosophy March 11, 2012 24
  • 25. COPQ Vs Sigma Level March 11, 2012 25
  • 26. Process March 11, 2012 26
  • 27. Data Analysis March 11, 2012 27
  • 28. Six Sigma TT Design of Experiment SIPOC Regression Analysis Voice Of Customer Control Chart Kano Model Ran Chart Technological Advancement Sensitivity Analysis Rewarding and Recognition Cause and Effect Diagram Histogram, Pareto Chart Flow Chart Process Analysis Benchmarking March 11, 2012 28
  • 29. Kano Model The Kano Model is used to visually model the customer provided characteristics versus the level of satisifaction each characteristic delivers. It is used after gathering the Voice of the Customer (VOC) phase. It is often used in A DFSS project and works with Quality Functional Deployment (QFD). Objective: Gather all the customer to deliver the most satisfying product, process, or service. •Dissatisfying - annoying features - avoided characteristics •Mandatory expectations - basics - must have characteristics •Customer needs - reasonable expectations - performing features •Delighters - surprise - innovators - unexpected features It is a graphical model that shows the relationship between each characteristic to the level of customer satisfaction. It is used to organize and prioritize activities to design and/or improve. March 11, 2012 29
  • 30. Kano Model March 11, 2012 30
  • 31. FMEA A failure modes and effects analysis (FMEA) is a procedure in product development and operations management for analysis of potential failure modes within a system for classification by the severity and likelihood of the failures. A successful FMEA activity helps a team to identify potential failure modes based on past experience with similar products or processes, enabling the team to design those failures out of the system with the minimum of effort and resource expenditure, thereby reducing development time and costs. It is widely used in manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry. Failure modes are any errors or defects in a process, design, or item, especially those that affect the customer, and can be potential or actual. Effects analysis refers to studying the consequences of those failures. March 11, 2012 31
  • 32. FMEA Failure The loss of an intended function of a device under stated conditions. Failure mode The manner by which a failure is observed; it generally describes the way the failure occurs. Failure effect Immediate consequences of a failure on operation, function or functionality, or status of some item Indenture levels An identifier for item complexity. Complexity increases as levels are closer to one. Local effect The failure effect as it applies to the item under analysis. Next higher level effect The failure effect as it applies at the next higher indenture level. End effect The failure effect at the highest indenture level or total system. Failure cause Defects in design, process, quality, or part application, which are the underlying cause of the failure or which initiate a process which leads to failure. Severity The consequences of a failure mode. Severity considers the worst potential consequence of a failure, determined by the degree of injury, property damage, or system damage that could ultimately occur. March 11, 2012 32
  • 33. FMEA March 11, 2012 33
  • 34. Example FMEA Worksheet FMEA Respon Potenti RPN Potenti S Potenti O D CRIT sibility Item / al Current (risk al (severit al (occurr (detecti (critical Recommend and Action New New New New Functio Effects control priority Failure y Cause( ence on charact ed actions target taken S O D RPN n of s number mode rating) s) rating) rating) eristic complet Failure ) ion date Perform cost Fill level analysis of timeout High sensor adding Liquid based Jane level failed additional spills on on time Doe Fill tub sensor 8 level 2 5 N 80 sensor custom to fill to 10-June- never sensor halfway er floor low 2011 trips disconn between low level ected and high level sensor sensors March 11, 2012 34
  • 35. Example FMEA Worksheet FMEA Step 1: Occurrence In this step it is necessary to look at the cause of a failure mode and the number of times it occurs Rating Meaning No known occurrences on 1 similar products or processes 2/3 Low (relatively few failures) Moderate (occasional 4/5/6 failures) 7/8 High (repeated failures) Very high (failure is almost 9/10 inevitable) March 11, 2012 35
  • 36. Example FMEA Worksheet FMEA Step 2: Severity failure modes are: Electrical short-circuiting, corrosion or deformation. A failure mode in one component can lead to a failure mode in another component, therefore each failure mode should be listed in technical terms and for function. Hereafter the ultimate effect of each failure mode needs to be considered. A failure effect is defined as the result of a failure mode on the function of the system as perceived by the user. Rating Meaning 1 No effect 2 Very minor (only noticed by discriminating customers) 3 Minor (affects very little of the system, noticed by average customer) 4/5/6 Moderate (most customers are annoyed) 7/8 High (causes a loss of primary function; customers are dissatisfied) Very high and hazardous (product becomes inoperative; customers angered; the failure may result 9/10 unsafe operation and possible injury) March 11, 2012 36
  • 37. Example FMEA Worksheet FMEA Step 3: Detection The assigned detection number measures the risk that the failure will escape detection. A high detection number indicates that the chances are high that the failure will escape detection, or in other words, that the chances of detection are low. Rating Meaning 1 Certain - fault will be caught on test 2 Almost Certain 3 High 4/5/6 Moderate 7/8 Low 9/10 Fault will be passed to customer undetected March 11, 2012 37
  • 38. Example FMEA Worksheet FMEA Risk priority number (RPN) After ranking the severity, occurrence and detectability the RPN can be easily calculated by multiplying these three numbers: RPN = S × O × D March 11, 2012 38
  • 39. Process Definition and Improvement March 11, 2012 39
  • 40. Process Definition and Improvement March 11, 2012 40
  • 41. Defect opportunity and DPO March 11, 2012 41
  • 42. Defect opportunity and DPO March 11, 2012 42
  • 43. Six Sigma Math Variance Mode Deviation Range Standard Median Deviation Mean Range March 11, 2012 43
  • 44. Calculation of Std. March 11, 2012 44
  • 45. Calculation of Std. March 11, 2012 45
  • 46. Calculation of Std. March 11, 2012 46
  • 47. Calculation of Std. March 11, 2012 47
  • 48. Calculation of Std. March 11, 2012 48
  • 49. Probability Distribution March 11, 2012 49
  • 50. Limits Under Normal Distribution 99.7 % outcome will fall under 3 Std Deviation March 11, 2012 50
  • 51. Limits March 11, 2012 51
  • 52. Six Sigma Process March 11, 2012 52
  • 53. Process Shift March 11, 2012 53
  • 54. Sigma Vs DPMO March 11, 2012 54
  • 55. Six Sigma Approach March 11, 2012 55
  • 56. Implement Six sigma Strategic planning helps us “focus” on key projects to reach our Vision. Process Management helps us maintain good results as we perform our Strategic Process Improvement Mission. Planning using the DMAIC process helps us fix work problems and improve our Six Sigma Performance. Process Process Management Improvement To be successful as an organization, we must learn how to effectively apply ALL three (3) areas. March 11, 2012 56
  • 57. Application Area Service Design Management Purchase Administration Six Sigma Methods Production IT Quality Depart. HRM M&S March 11, 2012 57
  • 58. Trainings March 11, 2012 58
  • 59. Q&A March 11, 2012 59