SIX SIGMA -An Awareness Programme

S I X S I G M S I X S I G M AA

A n A w a r e n e s s P r o g r a m m e

VM Rao, Transmission PU

Mahindra & Mahindra Ltd., Automotive Sector, Kandivli

Six Sigma: An Awareness

A w a r e n e s s T o u r• Six Sigma: The History• Why Six Sigma is better than other Quality Initiatives ?• What is Sigma ?• What is Variability ?• The 6 Problem Solving Methodology

Six Sigma: The History

Cost of Poor Quality

Prevention Cost Appraisal Cost

Lost Managemen

t Cost

Lost Opportunity,

Lost Assets Cost

Rerun Cost

Lost Business, Goodwill cost

Maintenance Cost

Lost Credibility Cost

Proj

ect

Rew

ork

Cost

Organisation Ocean

Six Sigma: History

99% Quality means………• 5000 incorrect surgical operations per week !• 200,000 wrong drg prescriptions each year !• 2 Short or Long landings at Airport each day !• Unsafe Drinking Water for 15 min/day !• 20,000 lost artcles of mail per hour !• No electricity for 7 hrs per month !

What is Good Quality ?…… 99% ??

Six Sigma: History

????!!!

Motorola

1/20 th of Defects !!

Motorola’s Quassar TV set plant in US sold to Japanese for the reasons of poor Productivity & Yield started doing extremely well under Japanese management !!! TV sets were produced with 1/20th the no. of defects that were produced by Motorola !They did this using the same workforce, technology & design… making it clear that the problem was Motorola’s management !

Six Sigma: History

If a product was found defective & corrected during the production process, other defects were bound to be missed and found later by the customer during early use of the product…. However, when the product was manufactured error free, it rarely failed during early use by the consumer…....

A Paper by Bill Smith….

In 1986, Motorola went full scale on Six Sigma…!!

In 1985, Bill Smith, an engineer at Motorolapresented a paperwhich concluded that….

Six Sigma: What’s New It?

How this Initiative is More Effective ??- Active Leadership: Top Management’s Involvement- Business Unit Vs Corporate wide Initiative - Customer Focussed “CTQ”- Direct Link to Business Results- Mfg View of Quality Vs “Q” in All Functions- Bottom Line Improvement- Incremental Vs Breakthrough Improvements

Six Sigma: What’s New It?

- Tells What to Do & How to Do…… - Mandate Use of Statistical Techniques - Multiple Indices (Local + Global) - Effective Project Management- Special Metrics (DPU, DPMO, etc.)- Special Roles (Black Belt, Green Belts, Champion)- Best People for ‘Q’ Initiatives- Inductive Training

Six Sigma: Special Roles

ChampionMaster

Black Belt

Black Belts

Green Belts

6 Deployment Strategy

What is Six Sigma ?

What is Sigma ( ) ?

Xi = 10, 12, 14 Xbar = 12

=(Xi-12) Deviation

2Variation

n-1Variance

Std. Devn. Sigma ()

TargetLSL USL

Parts out of Specs

A < 3 Situatio

n

What is 6 Sigma ?

Cp<1

TargetLSL USL

All in Specs

A 3 Situatio

n

What is 6 Sigma ?

Cp=1

TargetLSL USL

Only 50% of

tol. used

A 6 Situatio

n

What is 6 Sigma ?

Cp=2

If the Pilot can always land the Aircraft within 50% of Runway area…… He is of Six Sigma Quality !

LSL USLTarg

et

What is 6 Sigma ?

50% of Tol Band

LSL USL

-6 -2 -1 +1 +2 +3 +4 +5 +6-5 -4 -3 Xbar

Spec Limit Percent Defective ppm ± 1 68.27 3,17,300 ± 2 95.45 45,500 ± 3 99.73 2,700 ± 4 99.9937 63 ± 5 99.999943 0.57 ± 6 99.9999998 0.002

What is 6 Sigma ? Without

ProcessShift

What is 6 Sigma ?

LSL USL

-6 -2 -1 +1 +2 +3 +4 +5 +6-5 -4 -3 Xbar

Spec Limit Percent Defective ppm ± 1 30.23 6,97,700 ± 2 69.13 3,08,700 ± 3 93.32 66,810 ± 4 99.3790 6,210 ± 5 99.97670 233 ± 6 99.999660 3.4

With± 1.5Shift

-1.5 +1.5

Sigma Table

Cp DPMO Sigma0.5 500,000 1.50.55 440,000 1.650.6 382,100 1.80.65 326,400 1.950.7 274,300 2.10.75 226,600 2.250.8 184,100 2.40.85 146,900 2.550.9 115,100 2.70.95 88,510 2.851 66,810 31.02 59,380 3.061.04 52,620 3.121.06 46,480 3.181.08 40,930 3.241.1 35,930 3.31.12 31,440 3.361.14 27,430 3.421.16 23,850 3.481.18 20,680 3.541.2 17,860 3.6

Cp DPMO Sigma1.22 15,390 3.661.24 13,210 3.721.26 11,300 3.781.28 9,642 3.841.3 8,198 3.91.32 6,947 3.961.33 6,210 41.34 5,868 4.021.36 4,940 4.081.38 4,145 4.141.4 3,467 4.21.42 2,890 4.261.44 2,401 4.321.46 1,988 4.381.48 1,641 4.441.5 1,350 4.51.52 1,107 4.561.54 904 4.621.56 736 4.681.58 598 4.741.6 483 4.8

Cp DPMO Sigma1.62 390 4.861.64 313 4.921.66 233 51.68 200 5.041.7 159 5.11.72 126 5.161.74 99.6 5.221.76 78.4 5.281.78 61.5 5.341.8 48.1 5.41.82 37.5 5.461.84 29.1 5.521.86 22.5 5.581.88 17.4 5.641.9 13.4 5.71.92 10.2 5.761.94 7.8 5.821.96 5.9 5.881.98 4.5 5.942 3.4 6

The Six SigmaProblem Solving

Sequence

The Types of Problems?

Unknown Known

Know

nU

nkno

wn

Root Cause

SolutionDDCC

BBAA

Simple Problems

Really WorthSolving &

Challenging

Question ofImplementation

Require HighLevel of Tech.

Types of Problem Solvers

The Problem Solving

Type

The ------ Type

The Some One

Else’sFault Type

Self Negating,Despairing

Type

VariationLSL

USL

M

What is Variability?

LSL

USL

M

Off-Target

What is Variability?

LSL

USL

M

Variation+Off-Target

What is Variability?

LSL

USL

M

Centered+No Variation

The Ideal Process

What is Variability?

+=Variation

Variation

OffTarget

Off-Target

Variation+Off-Target

Variability

Instability

Target

LSL USL

Spec Width(Engg Spec) Process

Width

Cp =Spec Width

Process width=

DenotesVariation

Cp

What is Cp, Cpk

What is Cp, Cpk

Target

LSL USL

Dist fromSpec Dist from

Proc Edge

Cpk ={Process Centre to Spec Edge}

{Process Centre to Process Edge} =Denotes

Off-Target

Cpk

Off-Target but LeastVariation

Off-Target & High

VariationNear-Target

but HighVariation

The Ideal One !

What is Variability?

6 Problem Solving Sequence

6

1

2

3

4

5

DMAICCycle

(What to Do?)

6 Problem Solving Sequence

56

1

23

4

C

S

ICSI

Cycle(How to Do?)

6 Problem Solving Sequence

S o l v e

I m p l e m e n t

C h a r t

It tells you what your

problem is…and how severe

it is...

It is a 5-LevelProblem Solving

Sequence…T-L-P-E-F

Not just solve…but

institutionalizethe changes

Problem Solving Sequence- Snap Shot

P+c+Pareto

Analysis

Conurbation Margin

Analysis

ProcessMapping

ParetoAnalysis

C+ParetoAnalysis

CorrelationAnalysis

ValueAnalysis

Multivariate

Chart

Bathtub

Curve

Component

Swap

Avg-RangeChart

Proportion

Chart

IndividualsChart

Multi-VariChart

Multi-StationChart

Control Modify RecreateOptimize

Brainstorming Process Flow DiagramCause & Effect Diagram

CorrelationAnalysis

Subjective Rating & Analysis

ScreeningExperiments

ContingencyTable Analysis

FactorialExperiments

HybridExperiments

ObservationalStudies

Response SurfaceExperiment

Monte-CarloSimulation

Dual Alarms

for Action

Mechanized

Solution

ShutdownProcess

SOP + Audit

SPC ofInputs

SPC ofResults

Alarm for

Action

1. Chart

2. Solve

3.Implement

TacticList the Variables

Assess

Prioritise

Fine Tune

Problem Solving Sequence- Snap Shot

P+c+Pareto

Analysis

Conurbation Margin

Analysis

ProcessMapping

ParetoAnalysis

C+ParetoAnalysis

CorrelationAnalysis

ValueAnalysis

Multivariate

Chart

Bathtub

Curve

Component

Swap

Avg-RangeChart

Proportion

Chart

IndividualsChart

Multi-VariChart

Multi-StationChart

Control Modify RecreateOptimize

Brainstorming Process Flow DiagramCause & Effect Diagram

CorrelationAnalysis

Subjective Rating & Analysis

ScreeningExperiments

ContingencyTable Analysis

FactorialExperiments

HybridExperiments

ObservationalStudies

Response SurfaceExperiment

Monte-CarloSimulation

Dual Alarms

for Action

Mechanized

Solution

ShutdownProcess

SOP + Audit

SPC ofInputs

SPC ofResults

Alarm for

Action

1. Chart

2. Solve

3.Implement

6 Problem Solving Sequence

P+c+Pareto

AnalysisConurbation

MarginAnalysis

ProcessMapping

ParetoAnalysis

C+ParetoAnalysis

CorrelationAnalysis

ValueAnalysis

Multivariate

Chart

BathtubCurve

ComponentSwap

Avg-RangeChart

ProportionChart

IndividualsChart

Multi-VariChart

Multi-StationChart

Step 1 : Chart

6 Problem Solving Sequence

Level 1: Select the “Tactic”

Control

Modify

Recreate

Optimize

Step 2 : Solve

6 Problem Solving Sequence

Level 2: List the Variables

Brainstorming

Process Flow Diagram

Cause & Effect Diagram

Step 2 : Solve

6 Problem Solving Sequence

Level 3: Prioritize the Variables

CorrelationAnalysis

Contingency

TableAnalysis

SubjectiveRating &Analysis

ScreeningExperiments

Step 2 : Solve

6 Problem Solving Sequence

Level 4: Evaluation of Variables / Parameters

FactorialExperiments

ObservationalStudy

HybridExperiment

Step 2 : Solve

6 Problem Solving Sequence

Step 2 : Solve

Level 5: Fine-tuning / Refining the Process

ResponseSurface

Experiment Monte-Carlo

Simulation

6 Problem Solving Sequence

Step 3 : Implement

Dual Alarms

for Action

Mechanized

Solution

ShutdownProcess

SOP + Audit

SPC ofInputs

SPC ofResults

Alarm forAction

Six Sigma: An Awareness

Frequently Asked Questions

Some Clarifications on Six Sigma

Q1: Is it necessary to initiate Six Sigma all over the organisation or few ?

A: Never. Choose a Pilot Project at a Pilot Location. Taste the success and then spread across the organisation.

Some Clarifications on Six Sigma

Q2: Is it compulsory to have a Black Belt for initiation of a Six Sigma programme ?

A: Not necessary. If one has knowledge of all the tools mentioned in Six Sigma and is comfortable with the methodology, even with the knowledge of Champion also Six Sigma projects can be taken up.

Q3: Is it necessary that minimum financial gains of a 6 Sigma projects should be in 000’s of $ ?

A: Not necessary. If the company’s turnover itself is some 000’s of $, then what? Use the concept wherever you are uncomfortable with.

Some Clarifications on Six Sigma

Some Clarifications on Six Sigma

Q4: Are calculations of RTY, nRTY, Yield, etc compulsory to begin with ?

A: No. They all are confusing terms came along with Six Sigma. Concentrate on the methodology for the company’s benefits

Some Clarifications on Six Sigma

Q5: Can short term projects can be taken ?

A: Yes. After all it depends on the co’s necessities. For e.g. Wipro has short term projects called Turbo Projects.

Six Sigma: An Awareness

Popular Six Sigma Software:• Minitab• Statgraphics• SAS-Jmp

Popular Six Sigma Sites:• isixsigma.com• informintl.com• bn.com• multiface.com

A 6

SigmaSite