Six Sigma Concept Section 1 Six Sigma An

Six Sigma Concept

Section 1 Six Sigma : An Overview

What is Sigma?

Where Does Industry Stand? PPM 1, 000 IRS - Tax Advice (phone-in) (140, 000 PPM) 100, 000 Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Wire Transfers Airline Baggage Handling 10, 000 • • 1, 000 100 Purchased Material Lot Reject Rate Best-in-Class 10 Average 1 1 Domestic Airline Flight Fatality Rate (0. 43 PPM) Company 2 3 4 Sigma Scale of Measure 5 6 7

Six Sigma �������� Process Capability PPM Defects per Million Opp. Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects -per-unit, parts-per-million defective, and the probability of a failure/error.

Section 1 Six Sigma : An Overview

����� Six Sigma - Started on 1960 s’, a number of big companies were toying with the idea of Zero Defect (ZD). But the ideas didn’t go very far and limited to motivational slogans and pep talks. - On 1980 s’, giant companies spearheaded again the comeback of ZD philosophy. They are now more serious on producing defect free products. - For instant, Xerox with “Leadership Through Quality”, Intel with “PDQ 2”, HP with “TQC”, IBM with “Excellent in Execution” etc. . - Motorola didn’t want to miss the pack by establishing “ 6 -Sigma” program on 1987. The idea was first discovered by Mikel Harry, one of Motorola's finest employees from Government Electronics Group. - By giving itself 5 years time limit to achieved from 3 to 6 -Sigma, Motorola has spent merely 20 million dollar in its first year alone. Motorola's investment paid off and proved that ZD was achievable. - On the following years, Mikel Hurley left Motorola and set up his own company known as “Six Sigma Academy”, USA.

�������� Six Sigma ¨ Motorola n ¨ Texas Instruments n ¨ ABB n ¨ Allied Signal n ¨ General Electric n ¨ Seagate Technology n Du. Pont Sony Kodak Toshiba Lockheed Martin Other

Section 2 Six Sigma Process

Process Variation Inputs Process Output q All businesses consist of interconnected processes q Variation exist in all processes q Understanding and reducing process variability in the key to improve customer satisfaction and reducing losses

Focus of Six Sigma KPIV KPOV Y= f (X) To get results, should we focus our behavior on the Y or X? n n n Y Dependent Output Effect Symptom Monitor n n n X 1. . . XN Independent Input-Process Cause Problem Control If we are so good at X, why do we constantly test and inspect Y? Focus on X rather than Y, as done historically *

Process Output Variation 1 2 3 m 5 6 s m : measurement of location : measurement of variability 7

Process Sigma Level Definition : The number of standard deviation that can be fitted into the space between the process center and the nearest specification limits LSL Nominal USL Fit for use Defectives m

6 Sigma Process LSL USL 0. 002 ppm (2 tails) Process center on target m LSL USL m 3. 4 ppm after 1. 5 s drift from process center

What does a 6 sigma process look like ? m Average Deviation from Mean 1 T 1 p(d) 2 3 s 4 5 6 USL 3 This is a 6 Sigma Process

Six Sigma - Practical Meaning 99% Good (3. 8 Sigma) 99. 99966% Good (6 Sigma) 20, 000 lost articles of mail per hour Seven articles lost per hour Unsafe drinking water for almost 15 minutes each day One unsafe minute every seven months 5, 000 incorrect surgical operations per week 1. 7 incorrect operations per week Two short or long landings at most major airports each day One short or long landing every five years 200, 000 wrong drug prescriptions each year 68 wrong prescriptions per year No electricity for almost seven hours each month One hour without electricity every 34 years

6 Sigma - Aggressive Goal � Process Capability PPM Defects per Million Opp. Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects -per-unit, parts-per-million defective, and the probability of a failure/error.

Critical to. . . - Price - Quality - Delivery

�������� ¨ Product – CTQ – Critical to Quality – CTD – Critical to Delivery – CTP – Critical to Price Quality คณภาพ Defects n Processes n n n ขอบกพรอ ง CTP 1 – Critical to Process 1 CTP 2 – Critical to Process 2 CTP 3 – Critical to Process 3 ความพงพอใจของลก คา Price/Value Delivery การสงมอบ Cycle Time รอบเวลาทำงาน เปาหมายขององคกร ราคา/คณค า Cost ตนทน

What’s the Strategy Know what’s important to the Customer Reduce defects Center around target Reduce Variation

Section 3 The DMAIC Approach

������ Six Sigma �������� � ��� (Practical Problem) (Statistical Problem) �������� ��� (Practical Solution) (Statistical Solution)

������ Six Sigma ¨Measure ¨Analyze �������� � ��� (Practical Problem) (Statistical Problem) �������� ��� (Practical Solution) ¨Control (Statistical Solution) ¨Improve

�������� Phases of Breakthrough DMAIC Define Measure Analyze Improve Control D M A I C

MAIC ���������� Vital Few Concept (Funnel) MEASURE 30 - 50 Inputs Variables 10 - 15 Key Process Input Variables ( KPIVs ) ANALYZE 8 - 10 IMPROVE 4 -8 Critical KPIVs CONTROL 3 -6 Key Leverage KPIVs Optimized Process KPIVs

Hidden Factory Each defect must be detected, repaired and placed back in the process. Each defect costs time and money. Input Operation Insp. Accept Delivery Yield After Inspection or Test Reject Rework Hidden factory Scrap 90% Customer Quality • Wasted Time • Wasted Money • Wasted Resources • Wasted Floor space • Lost customer loyalty! Manufacturing Variation Causes A "Hidden Factory" Increased Cost - Lost Capacity