Vadodara Institute of Engineering

Concept of Six SigmaGuided By: Prof. Ankur Joshi

Prepared by:Varia Niraj Chaturvedi Anupam

Patel Milan Rathava Gaurang

• Output Variables

Manage the outputs.

A Traditional View

Sales Growth

Market Share

Profitability

• Output Variables

• Input Variables

Manage the inputs; respond to the outputs.

A Non-traditional View

Sales Growth

Market Share

Profitability

Customer Satisfaction

Product Quality

On-Time DeliveryCOQ

Credit TermsRelationships

Service

Customer Training

The Concept of "Six Sigma" at MotorolaDifferent numbers of Opportunities ...

Manufacturing Processes

Customers or Suppliers

Administrative Areas6

= A structural approach to continuous improvement

1 - Identify the product or service you provide

2 - Identify your customers & their requirements

3 - Determine your needs & suppliers

4 - Define the process for doing work

5 - Eliminate defect sources / optimize the process

6 - Continuously improve the Sigma level

( or “ Six steps toward excellence” )

A Bit of Statistics ...

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

upper spec limitLower spec limit

+1.5 Sigma-1.5 Sigma

3.4 ppm or Zero

+

Six Sigma...And the Statistics

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

+1.5 Sigma-1.5 Sigma

3.4 ppmor Zero

Upper spec. limitLower spec. limit

Reduce the variation: when < = Design specification width / 12

Stabilize the process, without affecting the variance,to limit the maximum process shift to +/- 1.5 Under these conditions, and in the worst case, there will be no more than a 3.4 ppmdefect (reject) level, with specification limits at 4.5 on one side and 7.5 on the other.

Cp > = 2 and Cpk > = 1.5

Cp > = 2

Six Sigma...And Capability

1 2 3 4 5 6 7 8

Cp 0.33 0.66 1 1.33 1.66 2 2.33 2.66

Cpk -0.16 0.16 0.5 0.83 1.16 1.5 1.83 2.16

Cp = Design specification width

6

3Cpk = Min.

Mean - Spec Limit

With a maximum process shift of +/- 1.5

Different Numbers of Opportunities ...

Manufacturing Process

Customers or Suppliers

Administra tive Areas

6

- Customers or Suppliers: One opportunity per product delivered or per component purchased.

- Manufacturing process: Opportunities at each process step)

- Administrative areas: Number of opportunities for error for each activity performed

The Opportunities...

Some Examples of Opportunity

Customer Perspective: 1 opportunity per product delivered ex. 1 regulator = 1 opportunity 1 controller = 1 opportunity

Production lines: Regulator = 160 opportunities Controller = 1200 opportunities

Form( Payment, Purchase Order, .. ): Number of fields Expedite / Delivery:

1 opportunity / packaging unit

A quality level of "6" corresponds to less than 3.4 defects per million Opportunities

( i.e., correct 99.99966 % of the time )

Number of DefectsNumber of Units= D.P.U

D.P.U x 1000000

Number of Opportunities = D.P.M.Op.

Sigma and Opportunities

1 Opportunity =

D.P.M.Op

CENSO

RED

1)( 2

n

xxi �

Normal Distribution - Gaussian Curve

Sigma = = Deviation ( Square root of variance )

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7

Axis graduated in Sigma

68.27 %

95.45 %

99.73 %

99.9937 %

99.999943 %

99.9999998 %

result: 317300 ppm outside (deviation)45500 ppm

2700 ppm

63 ppm

0.57 ppm

0.002 ppm

between + / - 1between + / - 2between + / - 3between + / - 4between + / - 5between + / - 6

=

A Universal Measurement Scale ...

34

56

7

66810

6210

233

3.4

Sigma

DPMOpOn one condition :Calculate the defects and estimate the opportunitiesin the same way...

Measurement With SIGMA Is Simple !!!

Estimate theOpportunities

Count the Defects

Follow the Indicator :Defects per million Opportunities

Conversion into "Sigma" canbe accomplished with the helpof a statistical table.

6= 3.4 dpmo

Six Sigma: An Ambitious Objective?

•Accurate to 99.99966 % ( less than 3.4 defects for each millionopportunities ) could appear excessive....!

99.9% is already VERY GOOD ! But what could happen at a quality level of 99.9% (i.e., 1000 ppm),

in our everyday lives (about 4.6)? •4000 wrong medical prescriptions each year

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

•Two long or short landings at American airports each day

•400 letters per hour which never arrive at their destination

The Impact of Quality: “6 Sigma Suppliers”

13 wrong drug prescriptions per year

10 newborn babies dropped by doctors/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

Defect Reduction: “Peeling the Onion”

•

Action Name DateACTION PLAN

PROCEDURE

CONTINUOUS IMPROVEMENT MODEL

TREND CHART

GOAL

T I M E

100%

BRAINSTORMING/PARETO ANALYSIS/

ROOT CAUSE IDENTIFICATION

RESULTS AND INSTITUTIONALIZE

MEASURE

ANALYZE

PROBLEM SOLVE

Processstep 1

Processstep 3

Processstep 2• • ••SUPPLIERSUPPLIERSUPPLIER CUSTOMERCUSTOMERCUSTOMER

RECORDDEFECTS

RECORDDEFECTS

RECORDDEFECTS

RECORDDEFECTS

RECORDDEFECTS

Advantages of This Type of Approach

• Have a common language• Sensitize the organization in the use of statistical tools• Develop the internal supplier/customer relationship• Benchmarking • Work on the most significant objectives • Promote working in teams

T C S Culture

ofExcellence

Use of Six Sigma Black Belts

• Highly trained in statistical tools• Act as consultants / change agents• Recognized as skilled in an engineering

discipline• Strong interpersonal and communication

skills• Significant experience with demonstrated

results• Continuous learning aptitude

History of Six Sigma Black Belt Program

1990 - Motorola DOE Symposium Committee organized 1991 - Motorola Six Sigma Research Institute established 1991 - Corporate Six Sigma Black Belt Steering

Committee formed 1992 - Initiated an effort between Motorola, TI, IBM,

Kodak and others to jointly develop the Six Sigma Black Belt Program

1992 - Six Sigma Technical Institute (SSTI) developed as a required training vehicle for Black Belt candidates

1992 - First Six Sigma Black Belts recognized in Asia and US

1993 - First Six Sigma Black Belt symposium held 1996 - SPS Six Sigma Black Belt Steering committee

formed 1996 - “Intro. to Black Belt Program” replaces SSTI as

required course 1998 - Motorola Elma leads AIEG/ACCES group wide push

for Black Belts - Reintroduces program

Expectations of Six Sigma Black Belts

Problem solving leadershipImprovement change agentsDrive use of statistical methodsIntegrate statistics into discipline areaNetwork for solution reuseMentor future BeltsContinue personal development

Six Sigma Black Belt Mentor Structure

Belt Sponsorship Related Projects

Master Black Belt 5 Black Belts 10 / Year

Black Belt 2 Green Belts 4 / Year

Green Belt Find 1 new Green Belt 2 / Year

Do other companies have Six Sigma Black Belt Programs?

GE has very successfully instituted this program 4,000 trained Black Belts by YE 1997 10,000 trained Black Belts by YE 2000 “You haven’t much future at GE unless they are

selected to become Black Belts” - Jack Welch Kodak has instituted this program

CEO and COO driven process Training includes both written and oral exams Minimum requirements: a college education, basic

statistics, presentation skills, computer skills Other companies include:

Allied Signal -Texas Instruments IBM - ABB Navistar - Citibank

Companies Adopting the 6 Culture

• General Electric• Eastman Kodak• Allied Signal• Texas Instruments• Citibank• Sony• ABB• plus 30 others who have licensed

6 training

• 1997 Sales $29.8 Billion (42% / 58%)• 24th in Fortune 500• 1st in Electronics Manufacturing • 7th in Total Exports• 142,000 Employees in 53 countries

Motorola Statistics

By Product By Region

1997 Sales

GSS40%

SPS21%

LMPS16%

Other10%

MIMS 13%

Europe19%

Asia Pacific

9%

11%

Japan6%

Latin America, Africa, ROW

13%

China/Hong Kong

United States 42%

The Rules of Engagement

The Past The Future

Product

Business Unit

Motorola

Customer/Consumer

Enterprise (Motorola)

Business Unit/Product

Communications Enterprise

PERSO NALCOM M UNICAT IO NS

SECT OR

NET W O RKM ANAG EMENT

G RO UP

CO M M ERCIAL,GO VERNM ENT

AND INDUST RIALSO LUTIO NS SECT OR

NET W O RKSO LUT IO NS

SECT OR

G LOBAL T ELECOMSO LUT IO NS

G RO UP

INT ERNET ANDNET W ORKING

GRO UP

T HECO M M UNICAT IO NS

ENTERPRISE

Cellular Phones Pagers Consumer 2-Way Products Accessories

Terrestrial Network Operators Satellite Network Operators

Systems Equipment Software Services Applications Content

Cellular Infrastructures Satellite Infrastructures

Global Network Operator Solutions Integrate PCS & NSS Products

Servers S/W Applications Internet Solutions Data Networking

ACCES

AUTO M OTIVE& INDUSTRIALELECTRONICS

G RO UP

CO M PO NENTPRO DUCTS

GRO UP

ENERGYSYST EMS

G RO UP

FLAT PANELDISPLAYDIV ISION

M O TO RO LACO M PUTER

G RO UP

AUTOM O TIVE.COM PO NENT,CO M PUTER AND

ENERG Y SECT OR

Powertrain Controls Autobody Controls Sensors Telematics

Ceramics LightingQuartz Products Oscillators SAWs

Battery Products Battery Chargers Power Supplies

Flat Panel Displays Embedded Systems Single Board PCs

SPS

TRANSPORTATIONSYSTEMS

GRO UP

CONSUM ERSYSTEMS

GROUP

W IRELESSSUBSCRIBER

SYST EM S GROUP

NETW ORK ANDCOM PUTING

SYSTEM S GROUP

SEM ICO NDUCTORCOM PONENTS

GRO UP

SEM ICONDUCTORPRODUCTS

SECTOR

Systems Electronics Transportation Technology Industrial

Imaging Displays & Modems Storage Entertainment Consumer Media

Telephony Messaging Wireless New Media

Modems Switching Networking Customer Equipment Base Stations PC Technology

Key Components Distribution Contract Manufacture Emerging Markets

Motorola Products

Cellular TelephonesTwo Way CommunicationsPagersSemiconductorsAutomotive Electronic Modules and

ComponentsModems and Integrated Management SystemsCellular and Satellite Infrastructure Systems

SOUTH KOREA

Global Facilities

UNITED KINGDOM

DENMARK

GERMANY

FRANCE

JAPAN

HONG KONG

PHILIPPINES

AUSTRALIAMALAYSIA

ISRAELCOSTA RICA

MEXICO

CANADA Copenhagen

Flensburg, MunichTaunusstein, Dresden

Angers, Bordeaux, Toulouse

Aizu Wakamatsu, Tokyo, Sendai

Seoul

Kowloon

Manila

Melbourne Adelaide

Kuala LumpurPenang, Seremban

Tel AvivArad

Guadeloupe

GuadalajaraMexico CityChihuahua

Brampton,North York

Richmond

Basingstoke, Stotfold, SwindonEaster Inch, East Kilbride Cork, Swords

TAIWANChung-Li

CHINATianjin

INDIA Bangalore

BRAZILSao Paulo

SINGAPORE

Identify Customersby Organization by Key Contacts

Hierarchy Of Customer Satisfaction

GainCustomer

LoyaltyInnovation &

Implementation

ExceedCustomer Expectations

MeetCustomer Requirements

AnticipateCustomer Needs

Determine CustomerRequirements & Expectations

MISSI

ON

VISI

ON

DefensiveStrategy

MeetCommitments

OffensiveStrategy Trust

Benchmarking Tells Us There are no secrets to quality. There are no “Silver Bullets” or short

cuts to good quality. Quality doesn’t take time, it saves

time. It is not only free, it pays dividends. Average company spends close to 25%

of its revenue on waste -- non-value added.

Quality process applies to the administrative side of business as well.

Service companies are not different from manufacturing.

A Quality Plan’s Key Requirements

A methodology A metric Measure a complete

product/service Accountability

(Application -- The Customer View) and ... Reach Out Goals!!!

Actions Required to Institutionalize a Quality Process

– TOP DOWN COMMITMENT AND INVOLVEMENT• Set the example, be active in the audit process

– MEASUREMENT SYSTEM TO TRACK PROGRESS• At both macro and micro levels

– TOUGH GOAL SETTING (REACH OUT!!)• Benchmark Best-In-Class -- audit often

– PROVIDE THE REQUIRED EDUCATION• The “Why” and “How To”

– SPREAD THE SUCCESS STORIES

Other Lessons Learned

Be careful that you don’t get too focused on winning the metric game.

Be careful that you don’t loose sight of the customer’s priorities.

Be careful that you don’t become arrogant.

Look at the cost of defects, not just the number.

Qualityis not an Assignable Task

it must be Rooted and InstitutionalizedWithin every Step of the

“Business Process”IT IS EVERYONE'S RESPONSIBILITY