Six Sigma
Six Sigma
Quality of the process is defined by creating excitement in the customer that they get what
they expect
P/E is perception to expectation ratio
93% revenue comes from repeat customers, a good P/E (greater than 1) is important
1970 IOS international organization for standardization was incepted post equipment
failure at WW2. This was later renamed to ISO.
Y=5X where y is the cost of repair/redo and x is cost of the material
Higher inspection actually means lower quality, but is portrayed as higher quality and
customer is charged
Understand customer needs - > translate to product features -> product design - > process
design -> key parameters (a measurable parameter without which the process fails, has
major influence) this becomes control parameter
Best examples of 6sigma in India IRCTC, Sundaram fasteners TVS, GE finance, GE noiceless
motors for washing machines
Quality control and quality improvement are different Former is to ensure Mu is within
tolerance, bring them back to desired limits, whereas latter is Improving quality by reducing
the Mu (average of defective pieces) or reducing std deviation
6 principles of 6 sigma : Genuine focus on customer, decision by fact (data), Action is where
the process is, Proactive management , boundary less collaboration, promote risk & tolerate
failure
Team composition for DMAIC Avg size 5, memebrs must be respected by the depts.,
should be self motivated, must be SMEs (Subject matter experts), STARS 40%, RATS 60%.
AVg duration 4 months 8 hr/ week
Day-2
VA customer ready to pay; NVA like multiple documents review, signtatues etc which
can be reduced or eliminated, VE support activities like O&M, HR
1. Transportation
2. Inventory
3. Motion (human movement)
4. Human
5. Waiting
6. Overproduction
7. Over processing
8. Defects
Efficient do the right way; Effective - do the right thing
Process time : Time taken actually for the VA activity; Lead time is time in between process
(waiting) NVA or VE; Process time : lead time = 0.05 : 1; Tool used to identify these two is
Value Stream mapping
Push system, Pull system, push & pull system Lean is always Pull; this required Kanban
cards
Define
Define Identify neutral customers, collect Voice of customers, Make an affinity diagram to
categorize
On these, make the KANO model (must be, more then better, delighter). Must be is the
most critical/ The 2 most critical needs becomes the CTQ (Critical to quality)
Meetings
Charter
Problem statement : define the problem in %, define the change attempted, should NOT have a
cause & solution, no scope for blame, scoping must be manageable
Define Milestones
SIPOC model (supplier input process output customer) defines the scope, identify the team
Check if data to be collected is qualitative or quantitative. If former then do AAA, latter GRR
AAA (Attribute agreement analysis) we are measuring against a standard (Kappa should be
greater than 0.9 for acceptance )
GRR Check contribution variation if less than 10 study accept data; if greater than 10,
check % total study variation. This must be less than 30
Defective vs defects
For Finite defects; DPO = total no of defects/ (sample size x opportunities per unit)
DPMO = DPO x 106 , then check sigma table for sigma level
Now next, with the sample do the Normality test (Anderson darling test). If p value greater than
0.05 is accepted and lesser than 0.05 is not acceptable, check for stability (if process is within 3
sigma it si stable)
Capability of process : (USL Mu) / 3 sigma or (LSL Mu) / 3 sigma whichever is lower
Uncontrollable cause: Causes within ones circle of influence can be controlled, within
circle of concern cant be
Direct improvement causes : Excuses like not havig equioment, training etc. satisfy few
points based on budget
Potential root causes : Fish bone diagram (Ishikawa) 5M1P (material, machine, method,
measurement, mother nature, people). These causes are further dicidde into events and
theories.
o Events : Occurences/instances/ facts that caused problem. To validate do
PERETTO analysis
o Theories : Forecasts/ hypothesis do hypothesis testing