What is Six Sigma ?

← Six Sigma's aim is to eliminate waste and inefficiency, thereby increasing

customer satisfaction by delivering what the customer is expecting.
← Six Sigma is a highly disciplined process that helps us focus on developing and
delivering near-perfect products and services.

← Six Sigma follows a structured methodology, and has defined roles for the
participants.

← Six Sigma is a data driven methodology, and requires accurate data collection for
the processes being analyzed.

← Six Sigma is about putting results on Financial Statements.

← Six Sigma is a business-driven, multi-dimensional structured approach to:

← Improving Processes

← Lowering Defects

← Reducing process variability

← Reducing costs

← Increasing customer satisfaction

← Increased profits

The word Sigma is a statistical term that measures how far a given process deviates from
perfection.

The central idea behind Six Sigma is that if you can measure how many "defects" you
have in a process, you can systematically figure out how to eliminate them and get as
close to "zero defects" as possible and specifically it means a failure rate of 3.4 parts per
million or 99.9997% perfect.

Key Concepts of Six Sigma

At its core, Six Sigma revolves around a few key concepts.

← Critical to Quality: Attributes most important to the customer.

← Defect: Failing to deliver what the customer wants.
 ← Process Capability: What your process can deliver.

← Variation: What the customer sees and feels.

← Stable Operations: Ensuring consistent, predictable processes to improve what

the customer sees and feels.

← Design for Six Sigma: Designing to meet customer needs and process capability.

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first on reducing
process variation and then on improving the process capability.

Myths about Six Sigma:

There are several myths and misunderstandings about Six Sigma. Few are given below:

← Six Sigma is only concerned with reducing defects.

← Six Sigma is a process for production or engineering.

← Six Sigma can not be applied to engineering activities.

← Six Sigma uses difficult-to-understand statistics.

← Six Sigma is just training.

The Benefits of Six Sigma

There are following six major benefits of Six Sigma that attract companies.

Six Sigma:

← Generates sustained success.

← Sets a performance goal for everyone.

← Enhances value to customers.

← Accelerates the rate of improvement.

← Promotes learning and cross-pollination.

← Executes strategic change.

Origin of Six Sigma

← Six Sigma originated at Motorola in the early 1980s in response to achieving 10X
reduction in product-failure levels in 5 years.
← Engineer Bill Smith invented Six Sigma, but died of a heart attack in the Motorola
cafeteria in 1993 never knowing the scope of the craze and controversy he had
touched off.

← Six Sigma is based on various quality management theories (e.g.: Deming's 14

point for management, Juran's 10 steps on achieving quality ).

There are three key elements of Six Sigma Process Improvement.

← Customers
← Processes

← Employees

The Customer:

Customers define quality. They expect performance, reliability, competitive prices, on-
time delivery, service, clear and correct transaction processing and more.

Today, Delighting a customer is a necessity. Because if we don't do it, someone else will!

The Processes:

Defining Processes and defining Metrics and Measures for Processes is the key element
of Six Sigma.

Quality requires to look at a business from the customer's perspective, In other words, we
must look at defined processes from the outside-in.

By understanding the transaction lifecycle from the customer's needs and processes, we
can discover what they are seeing and feeling. This will give a chance to identify week
area with in a process and then we can improve them.

The Employees:

The company must involve all employees in Six Sigma Program. Company must provide
opportunities and incentives for employees to focus their talents and ability to satisfy
customers.

This is important to six sigma that all team members should have a well defined role with
measurable objectives
Extended Definitions of Roles - Belt Colors

Many labels have evolved over the years that Six Sigma has been in use. The assignment
of belt colors to various roles is derived from the obvious source, martial arts. Based on
experience and expertese following roles have evolved.

NOTE: The belt names are one tool for defining levels of expertise and experience. They
do not change or replace the organizational roles in the Six Sigma process.

Black Belt:

The person possessing this belt has achieved the highest skill level and is an experienced
expert in various techniques. As applied to the Six Sigma program, the individual
designated as a Black Belt will have completed a thorough internal training program and
have experienced work on several projects.

The black belt holder is usually given the role of team leader, the person who is
responsible for execution and scheduling.

Master Black Belt:

A person who is available to consult with the team or its leadership but who is not a
direct member of the team itself. This may be the equivalent of the role played by the
coach, or for more technical and complex projects.

The Master Black Belt is available to answer procedural questions and to resolve the
technical issues that come up.

Green Belt:

The Green Belt designation can also belong to the team leader or to a member of the team
working directly with the team leader.

A Green belt is less experienced than the Black Belt but is cast in a key role within the
team.

Is Six Sigma Right for you ?

The starting point in gearing up for a Six Sigma is to verify that you are ready to embrace
a change that says "There is a better way to run your Organization".
There are number of essential questions and facts you will have to consider in making a
readiness assessment:

← Is the strategic course clear for the company ?

← Is the business healthy enough to meet the expectations of analysts and investors ?
← Is there a strong theme or vision for the future of the organization that is well
understood and consistently communicated ?
← If the organization good at responding effectively and efficiently to new
circumstances ?
← Evaluating current overall business results.
← Evaluating how effectively do we focus on and meet customers requirements ?
← Evaluating how effectively are we operating ?
← How effective are your current improvement and change management systems ?
← How well are your cross functional processes managed ?
← What other change efforts or activities might conflict with or support Six Sigma
initiative ?
← Six Sigma demands investments. If you can not make a solid case for future or
current return then it may be better to stay away.
← If you already have in place a strong, effective, performance and process
improvement offer then why do you need Six Sigma ?

There could be many questions to be answered to have an extensive assessment before

deciding if you should go for Six Sigma or not. This may need time and a thorough
consultation with Six Sigma Experts to take a better decision.

The Cost of Six Sigma Implementation:

Some of the most important Six Sigma budget items can include the followings:

← Direct Payroll for the individuals dedicated to the effort full time.
← Indirect Payroll for the time devoted by executives, team members, process
owners and others involved in activities like data gathering and measurement.

← Training and Consultation fee to teach people Six Sigma Skills and getting advice
on how to make effort successful.

← Improvement Implementation Cost

Six Sigma Start-up:

Now you have decided to go for Six Sigma. So what's next:

Deploying a Six Sigma within an organization is a big step and involved many activities
including define, measure, analyze, improve, and control phases. These phases are
discussed in subsequent session. Here are some steps which are required for an
organization at the time of starting Six Sigma implementation.
 ← Plan your own route: There may be many paths to Six Sigma but the best is the
one that works for your organization.
← Define your objective: Its important to decide what you want to achieve and
priorities are important

← Stick to what is feasible: Set up your plans so that they can match your
influences, resources and scope.

← Preparing Leaders: They are required to launch and guide the Six Sigma Effort.

← Creating Six Sigma organization: This includes preparing Black Belts and other
roles and assigning them their responsibilities.

← Training the organization: Apart from having black belts it is required to have
all employees Six Sigma skilled.

← Piloting Six Sigma Effort: Piloting can be applied to any aspect of Six Sigma
including solutions derived from process improvement or design redesign
projects.

Project Selection for Six Sigma:

One of the more difficult challenges in Six Sigma is the selection of the most appropriate
problems to attack. There are generally two ways to generate projects:

← Top-down: approach is generally tied to business strategy and are aligned with
customer needs. The major weakness is they are too broad in scope to be
completed in a timely manner (most six sigma projects are expected to be
completed in 3-6 months).

← Bottom-up: In this approach Black Belts choose the projects that are well-suited
for the capabilities of teams. A major drawback of this approach is that projects
may not be tied directly to strategic concerns of management thereby receiving
little support and low recognition from the top.

Six Sigma has following two key methodologies:

← DMAIC: refers to a data-driven quality strategy for improving processes. This

methodology is used to improve an existing business process.
← DMADV: refers to a data-driven quality strategy for designing products &
processes. This methodology is used to create new product designs or process
designs in such a way that it results in a more predictable, mature and defect free
performance.
There is one more methodology called DFSS - Design For Six Sigma. DFSS is a data-
driven quality strategy for designing design or re-design a product or service from the
ground up.

Sometimes a DMAIC project may turn into a DFSS project because the process in
question requires complete redesign to bring about the desired degree of improvement.

DMAIC Methodology:

This methodology consists of following five steps.

Define --> Measure --> Analyze --> Improve -->Control

← Define : Define the Problem or Project Goals that needs to be addressed.

← Measure: Measure the problem and process from which it was produced.

← Analyze: Analyze data & process to determine root causes of defects and
opportunities.

← Improve: Improve the process by finding solutions to fix, diminish, and prevent
future problems.

← Control: Implement, Control, and Sustain the improvements solutions to keep the
process on the new course.

In the subsequent session we will give complete detail of DMAIC Methodology.

DMADV Methodology:

This methodology consists of following five steps.

Define --> Measure --> Analyze --> Design -->Verify

← Define : Define the Problem or Project Goals that needs to be addressed.

← Measure: Measure and determine customers needs and specifications.

← Analyze: Analyze the process for meet the customer needs.

← Design: Design a process that will meet customers needs.

← Verify: Verify the design performance and ability to meet customer needs.
DFSS Methodology:

DFSS - Design For Six Sigma is a separate and emerging discipline related to Six Sigma
quality processes. This is a systematic methodology utilizing tools, training and
measurements to enable us to design products and processes that meet customer
expectations and can be produced at Six Sigma Quality levels.

This methodology can have following five steps.

Define --> Identify --> Design --> Optimize -->Verify

← Define : Identify the Customer and project.

← Identify: Define what the customers want, or what they do not want.

← Design: Design a process that will meet customers needs.

← Optimize: Determine process capability & optimize design.

← Verify: Test, verify, & validate design.

There are five high-level steps in the application of Six Sigma to improve the quality of
output. The first step is Define. During define phase following four major tasks are
undertaken.

(1) Project team is Formed:

Perform two activities:

← Determine who needs to be on the team.

← What roles each person will perform

Picking the right team members can be a difficult decision, especially if a project
involves a large number of departments. In such projects, it could be wise to break them
down into smaller pieces and work toward completion of a series of phased projects

(2) Document customers Core Business Processes:

Every project has customers. A customer is the recipient of the product or service of the
process targeted for improvement. Every customer has one or multiple needs from his or
her supplier. For each need provided for, there are requirements for the need. The
requirements are the characteristics of the need that determine whether the customer is
happy with the product or service provided. So document customer needs and related
requirements.
A set of business processes is documented. These processes will be executed to meet
customer's requirements and to resolve their Critical to Quality issues.

(3) Develop a project charter:

This is a document that names the project, summarizes the project by explaining the
business case in a brief statement, and lists the project scope and goals. A project charter
can have following components

← Project Name
← Business Case

← Project Scope

← Project Goals

← Milestones

← Special Requirements

← Special Assumptions

← Roles and responsibilities of the project team

(4) Develop the SIPOC process map:

A process is defined as the series of steps and activities that take inputs, add value, and
produce an output.

SIPOC is a process map that identifies all the following elements of a project:

← Suppliers
← Input

← Process

← Output

← Customers

The SIPOC process map is essential for identifying:

← The way processes occur currently.

 ← How those processes should be modified and improved throughout the remaining
phases of DMAIC

Conclusion:
At the conclusion of the design phase, you should know who the customer or end user is,
their resistance issues, and requirements. You should also have a clear understanding of
goals and the scope of the project including budget, time constraints, and deadlines.

During Measure Phase the overall performance of the Core Business Process is
measured.

There are three important part of Measure Phase.

(1) Data Collection Plan and Data Collection

A data collection plan is prepared to collect required data. This plan includes what type of
data needs to be collected, what are the sources of data etc., The reason to collect data is
to identify areas where current processes need to be improved.

You collect data from three primary sources: input, process, and output.

← The input source is where the process is generated.

← Process data refers to tests of efficiency: the time requirements, cost, value,
defects or errors, and labor spent on the process.

← Output is a measurement of efficiency.

(2) Data evaluation:

At this stage, collected data is evaluated and sigma is calculated. This gives approximate
number of defects.

← A Six Sigma defect is defined as anything outside of customer specifications.

← A Six Sigma opportunity is the total quantity of chances for a defect.

First we calculate Defects Per Million Opportunities (DPMO) and based

on that a Sigma is decided from a predefined table:

Number of defects
DPMO = ------------------------------------------- x 1,000,000
 Number of Units x Number of opportunities

As stated above, here Number for defects is total number of defects found, Number of
Units is the number of units produced and number of opportunities means the number of
ways to generate defects.

For example: The food ordering delivery project team examines 50 deliveries and finds
out the following:

← Delivery is not on time (13)

← Ordered food is not according to the order (3)

← Food is not fresh (0)

So now DPMO will be as follows:

13 + 3
DPMO = ----------- x 1,000,000 = 106,666.7
50 x 3

According to the Yield to Sigma Conversion Table given below 106,666.7 defects per
million opportunities is equivalent to a sigma performance of between 2.7 and 2.8.

This is the method used for measuring results as we proceed through a project. This
beginning point enables us to locate the cause and effect of those processes and to seek
defect point so that the procedure can be improved.

(3) Failure Mode and Effects Analysis - FMEA:

The final segment of the measure phase is called FMEA. This refers to preventing defects
before they occur. The FMEA process usually includes rating possible defects, or
failures, in three ways:

← The likelihood that something will go wrong.

← The ability to detect a defect.

← The level of severity of the defect.

You may use a rating scale. For example, rate each of these three areas from 1 to 10, with
1 being the lowest FMEA level and 10 being the highest. The higher the level, the more
severe the rating. So a high FMEA would indicate the need to devise and implement
improved measuring steps within the overall process. This would have the effect of
preventing defects. Clearly, there is no need to spend a lot of time on this procedure if the
likelihood of a defect is low
Yield to Sigma Conversion Table
Yield % Sigma Defects Per Million Opportunities
99.9997 6.00 3.4
99.9995 5.92 5
99.9992 5.81 8
99.9990 5.76 10
99.9980 5.61 20
99.9970 5.51 30
99.9960 5.44 40
99.9930 5.31 70
99.9900 5.22 100
99.9850 5.12 150
99.9770 5.00 230
99.9670 4.91 330
99.9520 4.80 480
99.9320 4.70 680
99.9040 4.60 960
99.8650 4.50 1350
99.8140 4.40 1860
99.7450 4.30 2550
99.6540 4.20 3460
99.5340 4.10 4660
99.3790 4.00 6210
99.1810 3.90 8190
98.9300 3.80 10700
98.6100 3.70 13900
98.2200 3.60 17800
97.7300 3.50 22700
97.1300 3.40 28700
96.4100 3.30 35900
95.5400 3.20 44600
94.5200 3.10 54800
93.3200 3.00 66800
91.9200 2.90 80800
90.3200 2.80 96800
88.5000 2.70 115000
86.5000 2.60 135000
84.2000 2.50 158000
81.6000 2.40 184000
78.8000 2.30 212000
75.8000 2.20 242000
72.6000 2.10 274000
69.2000 2.00 308000
65.6000 1.90 344000
61.8000 1.80 382000
58.0000 1.70 420000
54.0000 1.60 460000
50.0000 1.50 500000
46.0000 1.40 540000
43.0000 1.32 570000
39.0000 1.22 610000
35.0000 1.11 650000
31.0000 1.00 690000
28.0000 0.92 720000
25.0000 0.83 750000
22.0000 0.73 780000
19.0000 0.62 810000
16.0000 0.51 840000
14.0000 0.42 860000
12.0000 0.33 880000
10.0000 0.22 900000
8.0000 0.09 920000

Six Sigma aims to define the causes of defects, measure those defects, and analyze them
so that they can be reduced.We will consider five specific types of analysis that will help
to promote the goals of the project. These are source, process, data, resource, and
communication analysis. Now we will see them in detail:
(1) Source Analysis:

This is also called root cause analysis and attempts to find defects that are derived from
the sources of information or work generation. After finding the root cause of the
problem, attempts are made to resolve the problem before we expect to eliminate defects
from the product.

THE THREE STEPS TO ROOT CAUSE ANALYSIS

← The open step: During this phase of root cause analysis, the project team
brainstorms all the possible explanations for current sigma performance.
← The narrow step: During this phase, the project team narrows the list of possible
explanations for current sigma performance.

← The close step: During this phase, the project team validates the narrowed list of
explanations that explain sigma performance.

(2) Process Analysis:

Analyze the numbers to find out how well or poorly the processes are working, compared
to what's possible and what the competition is doing.

Process analysis includes creating a more detailed process map and analyzing the more
detailed map for where the greatest inefficiencies exist.

The source analysis is often difficult to distinguish from process analysis.The process
refers to the precise movement of materials, information, or requests from one place to
another.

(3) Data Analysis:

Use of measures and data ( those already collected or new data gathered in the analyze
phase) to discern patterns, tendencies or other factors about the problem that either
suggest or prove/disprove possible cause of the problem.

The data itself may have defect. There may be a case when product or deliverable do not
provide all the needed information. So data is analysed to find out the defects and
attempts are made to resolve the problem before we expect to eliminate defects from the
product.

(4) Resource Analysis:

We also need to ensure that employees are properly trained in all departments that affect
the process.If training is inadequate, you want to identify that as a cause of defects.

Other resources include raw materials needed to manufacture, process, and deliver the
goods. For example if the Accounting Department is not paying vendor bills on time and,
consequently, the vendor holds up a shipment of shipping supplies, this becomes a
resource problem.

(5) Communication analysis:

One problem common to most processes high in defects, is poor communication. The
classic interaction between a customer and a retail store is worthy of study because many
of the common communication problems are apparent in this case.

The same types of problems occur with the internal customer as well, even though we
may not recognize the sequence of events as a customer service problem.

The exercise of looking at issues from both points of view is instructive. A vendor wants
payment according to agreed-upon terms, but the Accounting Department wants to make
its batch processing uniform and efficient. The disconnect between these type of groups
demonstrates the importance of communication analysis.

Conclusion:
Analysis can take several forms. Some Six Sigma programs like to use a lot of diagrams
and worksheets, and others prefer discussion and list making. There are many tools which
can be used to perform analysis like Box Plot, Cause and Effect Diagram, Progressive
Analysis, Ranking, Pareto Analysis, Prioritization Matrix, Value Analysis etc. The proper
procedure is the one that works best for your team, provided that the end result is
successful.
If the project team does a thorough job in the root causation phase of Analysis, the
Improve phase of DMAIC can be quick, easy, and satisfying work.

The objective of Improve Phase is to identify improvement breakthroughs,identify high

gain alternatives, select preferred approach, design the future state, determine the new
Sigma level, perform cost/benefit analysis, design dashboards/ scorecards, and create a
preliminary implementation plan.

← Identify Improvement Breakthroughs:

← Apply idea-generating tools and techniques to identify potential solutions
that eliminate root causes.

← Identify/Select High Gain Alternatives:

← Develop criteria to evaluate candidate improvement solutions.

←
← Think systematically and holistically.

← Prioritize and evaluate the candidate solutions against the solution

evaluation criteria.

← Conduct a feasibility assessment for the highest value solutions.

← Develop preliminary solution timelines and cost-benefit analysis to aid in

recommendation presentation and future implementation planning.

Improvement can involve a simple fix once we discover the causes of defects. However,
in some cases, we may need to employ additional tools as well. These include:

← Solution alternatives
← Experiments with solution alternatives

← Planning for future change

The last phase of DMAIC is control, which is the phase in which we ensure that the
processes continue to work well, produce desired output results, and maintain quality
levels. You will be concerned with four specific aspects of control, which are:

(1) Quality control:

The ultimate purpose in control is overall assurance that a high standard of quality is met.
The customer's expectations depend on this, so control is inherently associated with
quality.
Since the purpose to Six Sigma is to improve overall process by reducing defects, quality
control is the essential method for keeping the whole process on track; for enabling us to
spot trouble and fix it; and for judging how effectively the project was executed and
implemented.

Quality is at the heart of the Six Sigma philosophy. Reducing defects has everything to
do with striving for perfection. Whether we reach perfection or not, the effort defines our
attitude toward quality itself.

(2) Standardization:

One feature of smooth processing is to enable processes to go as smoothly as possible.

This usually means standardization. In a manufacturing environment, the value of
standardization has been proven over and over.

We need to devise a control feature to processes so that the majority of work is managed
in a standardized manner.

(3) Control methods and alternatives:

The development of a new process of any change to an existing process requires the
development of procedures to control work flow.

When a process cannot be managed in the normal manner, we need to come up with
alternatives short of forcing compliance to the standardized method.

(4) Responding when defects occur:

The final step in a control process is knowing how to respond once a defect is discovered.
The weak links in the procedure,where defects are most likely to occur, can and should
be monitored carefully so that defects can be spotted and fixed before the process
continues.

The response to a defect may be to prevent a discovered flaw from becoming a defect at
all. In the best designed systems, defects can be reduced to near zero, so that we may
actually believe that Six Sigma can be attained.

Conclusion:
The project team determines how to technically control the newly improved process and
creates a response plan to ensure the new process maintains the improved sigma
performance.

This section will give an overview of the 10 most important technical tools which a Six
Sigma team member needs to master as they progress through the DMAIC methodology.

While these tools are considered technical in nature, most of them are relatively easy to
learn and apply. They are covered in the order they are used in the DMAIC methodology.

Tool #1 The Critical to Quality (CTQ) Tree:

The critical to quality tree is used during the Design Phase of DMAIC. It is used to
brainstorm and validate the needs and requirements of the customer of the process
targeted for improvement.

The steps in creating a CTQ tree are as follows:

← Identify the customer of the process targeted for improvement.

← Identify the need of the customer.

←
← Identify the first level of requirements of the need, that is, some characteristic of
the need that determines whether the customer is happy with the need.

← Drill down to more detailed level(s) of the requirement if necessary.

Tool #2 The Process Map:

During the Define phase, the project team creates the first of several process maps. A
process map is a picture of the current steps in the process targeted for improvement.

A process map has five major categories of work from the identification of the suppliers
of the process, the inputs the suppliers provide, the name of the process, the output of the
process, and the customers of the process. Each of these steps is summarized as SIPOC to
indicate to the team the steps that must be conducted to complete a process map.

Tool #3 The Histogram:

This tool will be used during the Analysis stage of DMAIC. The project team will review
data collected during the Measure stage of DMAIC.
It is often suggested that the data be organized into graphs or charts to more easily
understand what the data is saying about the process.

Data is of two types - Discrete data ( go/no go, fail or pass ) and continuous data ( time,
hight etc.). For continuous data presentation, the best tool to use is the histogram.

Tool #4 The Pareto Chart:

Histogram is useful for continuous data same way when the data is discrete, most teams
create a Pareto chart. Discrete data is counted data - go/no-go, off/on, yes/no, and
defect/no defect type data.

An Italian economist Vilfredo Pareto,in the sixteenth century proved mathematically that
80 percent of the world's wealth was controlled by 20 percent of the population. This 80-
20 rule eventually proved applicable in arenas other than economics.

When dealing with discrete data, the project team should create reason codes for why a
defect occurs and count and categorize the data into these reason codes and a preto chart
should be prepared.

Tool #5 The Process Summary Worksheet:

The goal of a Six Sigma project team is to improve effectiveness and efficiency.
Efficiency is measured in terms of cost, time, labor, or value.

The process summary worksheet is a "roll-up" of the subprocess map indicating which
steps add value in the process and which steps don't add value.

Tool #6 The Cause-Effect Diagram:

The most important tool to assist the project team in determining root causation is the
cause-effect diagram. This tool captures all the ideas of the project team relative to what
they feel are the root causes behind the current sigma performance and finally help in
finding a root cause of the problem.

Tool #7 The Scatter Diagram:

Once ideas have been prioritized after use of the cause-effect diagram, the most important
thing the project team does is validate the remaining ideas with fact and data.
The scatter diagram takes an idea about root causation and tracks corresponding data in
the response the team is trying to improve. The team can validate an idea about root
causation through one of three methods. Using basic data collection, a designed
experiment, or through the scatter diagram.

Tool #8 The Affinity Diagram:

An affinity diagram is used to help sort and categorize a large number of ideas into major
themes or categories. It is especially useful when the team is ready to brainstorm
solutions in the Improve stage of DMAIC. The steps in creating an affinity diagram are:

← Have each team member write one idea per Post-it note and post on a wall
randomly.
← As ideas are read off for clarification, sort ideas into similar groups

← Create a 'header' card for each general category of ideas below it.

Tool #9 The Run Chart:

We have discussed the histogram and Pareto chart. Think of both of these tools as similar
to a camera where a snapshot of the process has been taken. But the run chart is similar to
a camcorder, recording some process element over time.

Tool #10 The Control Chart:

Similar to a run chart, a control chart uses the data from a run chart to determine the
upper and lower control limits. Control limits are the expected limits of variation above
and below the average of the data. These limits are mathematically calculated and
indicated by dotted lines.

Conclusion:
We saw 10 major technical tools a project team member uses during the time they are on
a Six Sigma team. These are not the only tools a Six Sigma team may use. However, the
tools covered here are those that are most common for every team member to be aware of
and knowledgeable about.

Before we go ahead, lets define two terms:

 ← A Six Sigma defect is defined as anything outside of customer specifications.

← A Six Sigma opportunity is the total quantity of chances for a defect.

Here are various formulae to measure different metrics related to Six Sigma Defects

Defects Per Unit - DPU

Total Number of Defects
DPU = ------------------------
Total number of Product Units

The probability of getting 'r' defects in a sample having a given dpu rate can be predicted
with the Poisson Distribution.

Total Opportunities - TO
TO = Total number of Product Units x Opportunities

Defects Per Opportunity - DPO

Total Number of Defects
DPO = ------------------------
Total Opportunity

Defects Per Million Opportunities - DPMO

DPMO = DPO x 1,000,000

Defects Per Million Opportunities or DPMO can be then converted to sigma values using
Yield to Sigma Conversion Table given in Six Sigma - Measure Phase.

According to the conversion table

6 Sigma = 3.4 DPMO

How to find your Sigma Level

← Clearly define the customer's explicit requirements.

← Count the number of defects that occur.
 ←
← Determine the yield-- percentage of items without defects.

← Use the conversion chart to determine DPMO and Sigma Level.

Simplified Sigma Conversion Table

If your yield is: Your DPMO is: Your Sigma is:

30.9% 690,000 1.0

62.9% 308,000 2.0
93.3 66,800 3.0
99.4 6,210 4.0
99.98 320 5.0
99.9997 3.4 6.0

We can summaries following points:

← Six Sigma is a philosophy of quality improvement

←
← Six sigma is 3.4 defects in one million opportunities (DPMO).

← Components of Six Sigma are Customer, process and Employees.

← Six Sigma implementation requires following roles:

← Business Leader
← Sponsor
← Black Belt
← Master Black Belt
← Green Belt
← Six Sigma generic cycle includes Define, Measure, Analyze, Improve, Control
Phases.

← Six Sigma is Customer focus, Customer focus, Customer focus.

What's Next:

This tutorial may be just a beginning of your journey with Six Sigma and you would have
to go too far.

There are many resources available on the net which you would have to explore to
understand Six Sigma. We have listed down few resources Resource Section.
You would also like to through all the important terms used in Six Sigma. Check them in
Glossary Section...

DPMO - Defects per Million Opportunities

Calculation used in Six Sigma that will indicate the number of defects in a process,
procedure or service measured in the number of millions of opportunities. Sometimes
referred to as PPM, (parts per million). (see note)

To calculate DPMO you must first calculate DPO, (defects per opportunity). Once you
have the DPO, you multiply by 1,000,000 or 106 to get DPMO.

DPMO  =  DPO x 106

We have a free and commercial product to aid you in these calculations. See the free
DPMO calculator and the commercial DPMO calculator for more details.

This calculation is based in part on the book The Six Sigma Way and Motorola six sigma
training.

Note: for the purest,  PPM and DPMO are not one and the same. Many professionals
believe or have it in mind that PPM denotes defective pieces. This would mean that 6
sigma, or 3.4 'defective' pieces for every million pieces produced. If there are too many
defects opportunities, then this number can be skewed higher.  Also see Using Defects
Per Unit To Benchmark Different Products at the bottom of the page. Also see our six
sigma page.

Also see DO - Defect opportunity and DFSS - Design for Six Sigma.

DPO - Defects per opportunity

Calculation used in Six Sigma and DFSS, (Design for Six Sigma). The total number of
possible errors or defects that could be counted in a process or service. The formula uses
the number of defects and the number of units times the DO,(defect opportunities).

Number of defects
DPO  =
Number of units x Number of opportunities

One way to calculate PPM you would use one, (1), as the number of opportunities and
then use the DPMO, (Defects per Million Opportunities), formula to calculate PPM. (see
the note on the DPMO page)
 We have a free and commercial product to aid you in these calculations. See our free
DPO-DPMO calculator and the commercial DPO-DPMO calculator for more details.

The calculation of a Sigma level, is based on the number of defects per million
opportunities (DPMO).

In order to calculate the DPMO, three distinct pieces of information are required:
a) the number of units produced
b) the number of defect opportunities per unit
c) the number of defects

The actual formula is:

DPMO = (Number of Defects X 1,000,000)

((Number of Defect Opportunities/Unit) x Number of Units)

Example:

A manufacturer of computer hard drives wants to measure their Six Sigma level.
Over a given period of time, the manufacturer creates 83,934 hard drives.
The manufacturer performs 8 individual checks to test quality of the drives.
During testing 3,432 are rejected.

Defects 3432 DPMO 5111.158768

Opportunities 83934 Sigma Level 4.1
Defect Opportunities per unit 8

Six Sigma Table: 1 690,000

2 308,000
3 66,800
4 6,210
5 320
6 3.4