Six Sigma Lecture Notes

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    SIX SIGMASIX SIGMA

     A STRATEGY FOR PERFORMANCEEXCELLENCE 

     A STRATEGY FOR PERFORMANCEEXCELLENCE 

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    SIX SIGMASIX SIGMA

    99.9% is already VERY GOOD 

    But what could happen at a quality level of 99.9% i.e.! "### pp$!

      in our everyday lives a&out '.(σ

    )

     

    • More than 3000 newborns accidentally falling  from the hands of nurses or doctors each year

    • 4000 wrong medical prescriptions each year

    • 400 letters per hour which never arrive at their destinatio

    • Two long or short landings at American airports ea

    ch day

    How good is good enough?

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    SIX SIGMASIX SIGMAHo

    w can we get theseresults

    •  13 wrong drug prescriptions per year 

    •  10 newborn babies dropped bydoctors/nurses per year 

    •  Two short or long landings per year  in all

    the airports in the U.S.•  One lost article of mail per hour 

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    SIX SIGMASIX SIGMA

    The answer is:

    Six Sigma

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    SIX SIGMASIX SIGMA

     A ision and !hilosophical commitmentto our consumers to offer the highest "uality#

    lowest cost products

     A $etric that demonstrates "uality le%els at

    &&.&&&'( performance for products andprocesss

     A )enchmar* of our product and processcapability for comparison to +best in class,

     A practical application of statistical Tools 

    and $ethods to help us measure# analy-e#impro%e# and control our process

    hat is Six Sigma

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    SIX SIGMASIX SIGMASix Si 

    gma as a Philosoph 

    Internal &ExternalFailureCosts

    Prevention & Appraisal

    Costs

    Old Belief 4σ     C

        o    s     t    s

    Internal &ExternalFailure Costs

    Prevention & Appraisal

    Costs

    New Belief      C    o    s

         t    s

    Quality 

    Quality 

    Old Belief 

    i!" #ualit$ % i!" Cost

    New Belief i!" #ualit$ % ow Cost

    σ is a 'easure of "ow 'u("variation exists in a pro(ess

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    SIX SIGMASIX SIGMA! Si gma "s# $ Sigma

    The 3 sigma Company The 6 sigma Company 

    •  Speds !"#$"% of sales dolla&so 'ost of failu&e

    • Speds "% of sales dolla&s o'ost of failu&e

    •  Relies o ispe'tio to fid

    defe'ts

    •  Relies o 'apa(le p&o'ess t)at

    do*t p&odu'e defe'ts•  +oes ot )a,e a dis'ipliedapp&oa') to -at)e& ad aaly.edata

    •  /se Measu&e0 Aaly.e0 12p&o,e0Cot&ol ad Measu&e0 Aaly.e0+esi-

    •  Be')2a&3s t)e2sel,esa-aist t)ei& 'o2petitio

    •  Be')2a&3s t)e2sel,esa-aist t)e (est i t)e wo&ld 

    •  Belie,es 44% is -ood eou-) • Belie,es 44% is ua''epta(le

    •  +efie CTQs ite&ally  •  +efies CTQs e5te&ally 

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    SIX SIGMASIX SIGMA%ocus: The &nd 'ser 

    • Custo2e&6 1te&al o& E5te&al • Cosu2e&6 T)e Ed /se& 

    t)e 78oi'e of t)e Cosu2e&9 :Cosu2e& Cue;

    2ust (e t&aslated ito

    t)e 78oi'e of t)e E-iee&9 :Te')i'al Re

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    SIX SIGMASIX SIGMASix Sigma as a Metric

      C   E      !  "

       #   E   $

    1

    )(   2

    −=  ∑

    n

     x xi

    σ  

    !igma % σ % $eviation & !'uare root of variance (

      *    +   *    (   *    ,   *    '   *    -   *    .   *    "   #   " . -   '   , ( +

    Axis graduated in Sigma

    (/.+ %

    9,.', %

    99.+- %

    99.99-+ %

    99.9999'- %

    99.999999/ %

    result0 -"+-## pp$ outside

    deviation

    ',,## pp$

    +## pp$

    (- pp$

    #.,+ pp$

    #.## pp$

     &etween 1 2 * "σ

    &etween 1 2 * σ

    &etween 1 2 * -σ

    &etween 1 2 * 'σ

    &etween 1 2 * ,σ

    &etween 1 2 * (σ

    σ %

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    SIX SIGMASIX SIGMA3sigma !rocess

    /centered

    p 2 1.0p* 2 1.0

    #'00 ppm

    )pe( &i'its

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    SIX SIGMASIX SIGMA3sigma !rocess

    /shifted 0.4 std. de%.

    p 2 1.0p* 2 0.533

    ppm 2 6#77

    /about .'sigma

    )pe( &i'its

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    SIX SIGMASIX SIGMA3sigma !rocess

    /shifted 1.0 std. de%.

    p 2 1.0p* 2 0.66'

    ppm 2 #'5

    /about .5sigma

    )pe( &i'its

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    SIX SIGMASIX SIGMA3sigma !rocess

    /shifted 1.4 std. de%.

    p 2 1.0p* 2 0.4

    ppm 2 66#511

    /about 1.53sigma

    )pe( &i'its

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    SIX SIGMASIX SIGMA(on)*iner +ecrease

    *

    +

    4

    5

    6

    +,-.5+/

    66.-00

    6.*0,

    *++

    +14

    σ !!$

    P&o'ess

    Capa(ility 

    +efe'ts pe& Millio

    Oppo&tuities

    * Includes 1.5 σ   shift 

    Fo'usi- o σ &e

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    SIX SIGMASIX SIGMASix Sigma as a Tool 

    P&o'ess Mappi- Tole&a'e Aalysis

    St&u'tu&e T&ee Co2poets Sea&')

    Pa&eto Aalysis =ypot)esis Testi-  

    Gau-e R > R Re-&essio

    Ratioal Su(-&oupi- +OE  

    Baselii- SPC  

    May fa2ilia&

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    SIX SIGMASIX SIGMASix Sigma as a Method 

    To -et &esults0 s)ould we fo'us ou& (e)a,io& o t)e Y o& X 

    • 8 •91:9n

    •;ependent •

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    SIX SIGMASIX SIGMA A Traditional "iew

    • Output Varia&les

    3ana4e the outputs.

    5ales Growth

    3ar6et 5hare

    7rofita&ility

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    SIX SIGMASIX SIGMA A (on)Traditional "iew

    • Output Varia&les

    • 8nput Varia&les

    3ana4e the inputs respond to the outputs.

    5ales Growth

    3ar6et 5hare

    7rofita&ility

    :usto$er 5atisfaction

    7roduct ;uality

    On*

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    SIX SIGMASIX SIGMA+ist inguish ,"ital %ew-.rom ,Tri/ial Man-

     8 % 2ependent 3ariale Output. 2efe(t> % Independent 3ariales Potential Cause>? % Independent 3ariale Criti(al Cause

     +efie t)e P&o(le2 ? +efe't State2et 

    % f x0

    7. x*. x

    +. x

    4

    7. x51 1 1 8

    n9

    !rocess

    !arameters

    :aterial

    :et"ods

    People

    Environ'ent

    Output

    :a("ine

    :easure'ents

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    SIX SIGMASIX SIGMAStr ateg 0 Phase )

    P)ase

    $easure@hat

    Analy-e@here# @hen# @hy

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    SIX SIGMASIX SIGMASix Si gma 1rgani2ation

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    SIX SIGMASIX SIGMA A 3lac4 3elt has56 and will5

    Leade&s)ip

       S   t   a   t    i

       s   t    i   '

       a    l 0  

       Q    u   a    l    i   t   y

        S    3    i    l    l

    1        t    e   &      p   

    e   &    s   o   

       a   l      S    

    3    i     l     l     

    +&i,i- t)e /se

        T    )  e      e   w

       o    f    S

        i   5 

       S    i   -    2   a

    M     e      t    o   

    &    i         -   

    http://www.mot.com/

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    SIX SIGMASIX SIGMA3l ac4 3elt Training

    Tas3 

    Ti2e oCosulti-? 

    T&aii- 

    Meto&i- RelatedP&oe'ts

    #reen$elt 

    %tili&e'tatistical( )ualitytechniue

    2+5Find onene, green-elt 

    2 ( year 

    $lac$elt 

    /ead use

    oftechniueandcommunic0ate ne,ones

    5+1T,o green-elts

    4 ( year 

    "aster$lac$elt 

    Consulting( "entoring( Training 

    +1Fie $lac$elts

    1 ( year 

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    SIX SIGMASIX SIGMA:ore 5tatistical 56ills :ore 5i= 5i4$a ;uality 56ills :ore 8nterpersonal 56i

    GBM Statistical Software (JMP, Minitab)

     MIN101GBM AIEG QMS GBM Commnication (oral, writ

     AEC722, DDI121

    GBM  !merical an" Gra#$ical %ec$ni&es

     MIN101, IBM548GBM QS '

     AEC279GBM %eam acilitation

     DDI170

    GBM Statistical Process Control

     AEC506, AEC661, AEC662, AEC663GBM Cstomer Satisfaction

    SSG100, TCS100GBM Coac$in* an" Mentorin*

     LDR380, PER119

    GBM Process Ca#abilit+

     AEC661, AEC662, SCP201GBM Si Ste#s to Si Si*ma

    SSG100, SSG102CDGBM Mana*in* C$an*e

     MGT564, MGT124, PDE5

    GBM Com#arati-e %ests

     MIN101, SPC201GBM Concrrent En*ineerin*  BM .ea"ers$i#

     MGT561, MGT562, DDI1

    GBM Anal+sis of /ariance (A!0/A)

     ENG998, AEC603GBM %CS

    TCS100 BM %eam il"in*

     MGT560, MGT562, EC72

    GBM Measrement S+stem Anal+sis

     AEC663GBM S+stemic A##roac$ to Problem

    Sol-in*

    QUA392

      M Instrctional%eac$in*

     MT132

    GBM 3esi*n of E#eriments (e4*4 ll,

    ractional, %a*c$i 3esi*ns)

     ENG998, QUA389

    GBM %eam 0riente" Problem Sol-in*

    (53, 63, 7P)  M Mana*in* Pro8ects

     AEC471, MGT839

    GBM 9e*ression (e4*4 linear, nonlinear)  BM Qalit+ S+stem 9e-iew

    QUA590

    GBM Statistical Process C$aracteri:ation

    Strate*ies an" %ec$ni&es

     ENG227 

     BM %eam Problem Sol-in* !on;

    Manfactrin*

    CES103 BM Statistical Inference

     MIN101, SPC201 BM 3esi*n for Manfactrabilit+

     ENG123, ENG123CD

     BM Confi"ence Inter-als

     MIN101, SPC201 BM inancialEconomic Qalit+ Isses

     BM Probabilit+ Conce#ts an"

    3istribtions

    SPC201

      M Qalit+ nction 3e#lo+ment

    QUA200A, QUA200B, QUA200C 

     BM 9es#onse Srface Met$o"s

    QUA393  M %otal Qalit+ Mana*ement

    BM Screenin* 30E

    QUA391  M enc$mar

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    SIX SIGMASIX SIGMA7orporate 7ommitment 

    :otorola is (o''itted to developin! t"ese leaders@

    e provide t"ese people wit" extensive trainin! in statisti(aland interpersonal tools. silled !uidan(e and 'ana!e'entsupport@

    On(e t"eir develop'ent "as a("ieved a level wort"$ ofre(o!nition. we even "ave a ter' for t"ose ex(eptionalindividuals

      Si5 Si-2a Bla'3 Belts

    C"ris Dalvin

    http://www.mot.com/

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    SIX SIGMASIX SIGMA7orporate 7ommitment87ont9d

    • :otto

      #ualit$ is our =o

      Custo'er satisfa(tion is our dut$

      Custo'er lo$alt$ is our future

    http://www.mot.com/

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    SIX SIGMASIX SIGMA3arrier 3rea4through Plan

    ".##

    "#.##

    "##.##

    >9'

        D    7    3    O   p

    ( 5i4$a

    58G3?

    >9, >9( >9+

    (

    ,.(,,.(

    ,.,

    ,.'

    ,.-

    3Y9, 3Y9( 3Y9+ 3Y9/

    Pareto, rainstormin*, C=E, -C

    53, 63, %CS %eams, SPC

    30E, 3M, PC

    9enewlac< elt Pro*ram (Internal Motorola)

    lac< elt Pro*ram (Eternal S##liers)

    Proliferation of Master lac< elts

    http://www.mot.com/

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    SIX SIGMASIX SIGMA1ther 7ompanies ha/e 3lac43elts Program

    • GE $as -er+ sccessfll+ institte" t$is #ro*ram >  ?, traine" lac< elts b+ @E 1''6

     >  1, traine" lac< elts b+ @E 2

     >  @o $a-enBt mc$ ftre at GE nless t$e+ are selecte" to become lac< elts; Jac< Delc$

    • o"a< $as institte" t$is #ro*ram >  CE0 an" C00 "ri-en #rocess >  %rainin* incl"es bot$ written an" oral eams

     >  Minimm re&irementsF a colle*e e"cation, basic statistics, #resentation s  IM ; A

     >   !a-istar ; Citiban

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    SIX SIGMASIX SIGMA

    Measu&eMeasu&e

    C"ara(teri?e Pro(ess

    nderstand Pro(essE,aluateE,aluate

    I'prove and 3erif$ Pro(ess

    12p&o,e12p&o,e

    :aintain New Pro(essCot&ol Cot&ol 

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    SIX SIGMASIX SIGMA

    ;efine

    !roblem

    ;efine

    !roblemUnderstand

    !rocess

    Understand

    !rocessollect

    ;ata

    ollect

    ;ata!rocess

    !erformance

    !rocess

    !erformance

    Pro(ess Capailit$

    < CpGCp< ;un C"arts

    nderstand Prole'Control orCapailit$9

    2ata H$pes

    < 2efe(tives< 2efe(ts< Continuous

    :easure'ent)$ste's Evaluation:)E9

    2efine Pro(ess<

    Pro(ess :appin! istori(al

    Perfor'an(e Brainstor'

    Potential 2efe(tCauses

    2efe(t

    )tate'ent Pro=e(t

    Doals

     /de&stad t)e P&o'ess ad Potetial 12pa't /de&stad t)e P&o'ess ad Potetial 12pa't 

    $easure !hase

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    SIX SIGMASIX SIGMA

    Ceduce

    omplaints 

    int./e>t.

    Ceduce

    ostCeduce

    ;efects

    P&o(le2 +efiitios eed to (e (ased o

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    SIX SIGMASIX SIGMA

      H  i  ' e

    ow do we *now our processD

    Process Ma#

    istorical 3ata

    is$bone

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    SIX SIGMASIX SIGMA

    CAT

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    SIX SIGMASIX SIGMA

    Visualizing the Causes

    σ st  σs$ift K

    σtotal

     Time )

     Time *

     Time 3

     Time 4

    +ithin ,roup

    •Called σ short term &σst(

    •"ur potential - the bestwe can be

    • The s reported by all .sigma companies

    • The trivial many

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    SIX SIGMASIX SIGMA

    Visualizing the Causes

    /etween ,roups

    σ st  σs$ift K σtotal

     Time )

     Time *

     Time 3

     Time 4

    •Called σshift &truly ameasurement in sigmas ofhow far the mean has shifted(

    •ndicates our process control• The vital few

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    SIX SIGMASIX SIGMA

     Assi!nale Cause• Outside influen(es

    • Bla( noise

    • Potentiall$ (ontrollale• ow t"e pro(ess is a(tuall$ perfor'in!

    over ti'e

    is$bone

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    SIX SIGMASIX SIGMA

    Co''on Cause 3ariation• 3ariation present in ever$ pro(ess

    • Not (ontrollale

    • H"e est t"e pro(ess (an e wit"in t"epresent te("nolo!$

    ;ata within subgroups G.st will contain only ommon ause

    ariation

    ;ata within subgroups G.st will contain only ommon ause

    ariation

    SIX SIGMA

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    SIX SIGMASIX SIGMA

    σ2Hotal K σ2Part

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    SIX SIGMASIX SIGMA

    To ude&stad w)e&e you wat to (e0

    you eed to 3ow )ow to -et t)e&e, 

    To ude&stad w)e&e you wat to (e0

    you eed to 3ow )ow to -et t)e&e, 

    $ap the !rocess$ap the !rocess

    $easure the !rocess$easure the !rocess

    ,,

    Understand the !roblem

    ,8, 2 function of %ariables ,>,

     82f>

    Understand the !roblem

    ,8, 2 function of %ariables ,>,

     82f>

    S S GSIX SIGMA

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    SIX SIGMASIX SIGMA

    Measu&eMeasu&e

    C"ara(teri?e Pro(ess

    nderstand Pro(essE,aluateE,aluate

    I'prove and 3erif$ Pro(ess

    12p&o,e12p&o,e

    :aintain New Pro(essCot&ol Cot&ol 

    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

    In man+ cases, t$e "ata sam#le can be transforme" so t$at it is a##roimatel+ normal4

    or eam#le, s&are roots, lo*arit$ms, an" reci#rocals often ta

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    SIX SIGMASIX SIGMA

    D$at "o we !ee"L

    LSL /SL LSL /SL

    LSL /SL

    ff0Target /o, ariation=i-) Potetial +efe'ts

    Good Cp (ut Bad Cp3 

    n Target 7igh ariation

    =i-) Potetial +efe'ts

    No so -ood Cp ad Cp3 

    n0Target /o, ariation

    Low Potetial +efe'ts

    Good Cp ad Cp3 

     3ariation redu(tion and pro(ess

    (enterin! (reate pro(esses wit"less potential for defe(ts1 H"e (on(ept of defe(t redu(tionapplies to ABB pro(esses not =ust'anufa(turin!9

     3ariation redu(tion and pro(ess(enterin! (reate pro(esses wit"less potential for defe(ts1 H"e (on(ept of defe(t redu(tionapplies to ABB pro(esses not =ust'anufa(turin!9

    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

    Eli'inate Hrivial :an$Eli'inate Hrivial :an$ #ualitative Evaluation He("ni(al Expertise Drap"i(al :et"ods )(reenin! 2esi!n of Experi'ents

    #ualitative Evaluation He("ni(al Expertise Drap"i(al :et"ods )(reenin! 2esi!n of Experi'ents

    Identif$ 3ital FewIdentif$ 3ital Few

    Pareto Anal$sis $pot"esis Hestin! ;e!ression 2esi!n of Experi'ents

    Pareto Anal$sis $pot"esis Hestin! ;e!ression 2esi!n of Experi'ents#uantif$

    Opportunit$

    #uantif$

    Opportunit$ M ;edu(tion in 3ariation CostG Benefit

    M ;edu(tion in 3ariation CostG Benefit

    Our FoalH

    ,s

    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

    Graph>Box

    plot

    12

    20

    *2

    Graph>Box

    plot+ithout values

    3P

    /o5 plots help to see the data distribution

    3a+

    3P

    1

    '

    1

    ?

    ''

    '?

    1'

    1?

    ''

    '?

    0#erator 

    3P

    1

    '

    1

    ?

    ''

    '?

    S$ift

    3P

    1

    '

    1

    ?

    ''

    '?

    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

    Statistical Anal+sis

    ,1,*5,1,*,,1,05,1,0,,1,,5,1,,,

    /

    6

    5

    4

    +

    *

    0

    ,

     

       F  r  e    u  e  n  (  $

    ,1,*5,1,*,,1,05,1,0,,1,,5,1,,,

    +,

    *,

    0,

    ,

     

       F  r  e    u  e  n  (  $

    Is t"e fa(tor reall$ i'portant

    2o we understand t"e i'pa(t fort"e fa(tor

    as our i'prove'ent 'ade ani'pa(t

    "at is t"e true i'pa(t

    $pot"esis Hestin!

    ;e!ression Anal$sis

    5545+5*5055

    6,

    5,

    4,

    +,

    *,

    0,

     ,

    8

       5

    < % 1

    % 1 1

    Q5M PI

    ;e!ression

     

     C o m p a r

     e 

     S a m p

     l e  M e

     a n s 

     &  V a r i a

     n c e s

     I d e n t i

     f y 

     R e l a t

     i o n s h i

     p s

     E s t a b l

     i s h 

     L i m i t s

     Appl$ statisti(s to validate a(tions & i'prove'ents

    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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    SIX SIGMASIX SIGMA

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