QUALITY MANAGEMENT SYSTEM

TOPIC : SIX SIGMA

ENGR . R. ILAGAN
(LECTURER)

JANUARY 29, 2024

One cannot manage tomorrow’s business

with yesterday’s method.
 SIX SIGMA
One cannot manage tomorrow’s
business with yesterday’s method.
YOUR FIRST QUESTION IS LIKELY…

WHAT IS SIX SIGMA?

Your second question is likely…

WHY SIX SIGMA?
WHAT IS SIX
SIGMA?
A Greek term used in statistics to represent
standard deviation from mean value, an indicator of the
degree of variation in a set of a process.

A business process that allows organizations to drastically

improve their bottom line by designing and monitoring
everyday business activities in ways that minimize wastes and
resources while increasing customer satisfaction.
WHAT IS SIX
SIGMA?
A statistical concept that measures a
process in terms of defects – at the six
sigma level, there are 3.4 defects per
million opportunities.
SIGMA LEVEL
Sigma Level Defects per Million
( Process Capability) Opportunities
2 308,537

3 66,807

4 6,210

5 233

6 3.4
 SIX SIGMA IS NOT:
•A STANDARD
•A CERTIFICATION
•ANOTHER METRIC LIKE PERCENTAGE
Rather!

•It is a Quality Philosophy and the way of

improving performance by knowing where you are
and where you could be.

•A methodology to measure and improve

company’s performance, practices and systems.
ORIGIN OF SIX
SIGMA
1980s, Motorola, by Engr. Bill Smith

He studied the correlation between a product’s reliability

and how often that product had been repaired during the
manufacturing process.

This led to quantum leap in manufacturing technology in

Motorola saving 2.2 billion dollars in 4 years.
 WHY SIX
SIGMA?
•Six Sigma emerged as a natural evolution in
business to increase profit by eliminating defects.

•The Current business environment now demands and

rewards innovation more than ever before due to:
✓Customer Expectations
✓Technological Change
✓Global Competition
✓Market Fragmentation
HISTORY OF SIX SIGMA

1818: Gauss uses the normal curve 1924: Walter A. Shewhart introduces
to explore the mathematics of error the control chart and the distinction of
analysis for measurement, probability special vs. common cause variation as
analysis, and hypothesis testing. contributors to process problems.

1736: French 1896: Italian sociologist Vilfredo

mathematician Alfredo Pareto introduces the 80/20
Abraham de rule and the Pareto distribution in
Moivre publishes Cours d’Economie Politique.
an article
introducing the
normal curve.
1949: U. S. DOD issues Military
Procedure MIL-P-1629, Procedures
1960: Kaoru Ishikawa
for Performing a Failure Mode Effects
introduces his now famous
and Criticality Analysis .
cause-and-effect diagram.

1941: Alex Osborn, head of 1970s: Dr. Noriaki Kano

BBDO Advertising, fathers a introduces his two-dimensional
widely-adopted set of rules for quality model and the three
“brainstorming”. types of quality.

1986: Bill Smith, a senior

engineer and scientist introduces 1995: Jack Welch
the concept of Six Sigma at launches Six Sigma at GE.
Motorola

1994: Larry Bossidy launches

Six Sigma at Allied Signal.
SIX SIGMA COMPANIES
 DEFINITION OF SIX SIGMA

▪ Six Sigma is a data driven philosophy and process

resulting in dramatic improvement in
products/service quality and customer satisfaction.

• Six Sigma is the team approach to defining,

measuring, analyzing, improving and controlling
processes.
• Six Sigma is a set of tools aimed at reducing
variability in the inputs and in the process to
increase predictability of outputs.
 DEFINITION OF SIX SIGMA

▪ Six Sigma is a measure of quality equal to 3.4

defects per million opportunities or 99.99966%
yield.
Number of defects per Number of defects per Yield (%) Sigma level
million opportunities for hundred opportunities for
error error
93.31928 3.0
66,807.2 6.68072

99.37903 4.0
6,209.7 0.62097

99.97674 5.0
232.6 0.02326

3.4 0.00034 99.99966 6.0

 SIX SIGMA

3.8  Product or Service 6.0 

99.00000% Good 99.99966% Good
20,000 Articles of mail lost per hour Seven

One minute per

15 minutes per day Unsafe drinking water
seven months

Incorrect surgical procedures

5,000 1.7
per week

Short or long landings at

Two per day One every five years
major airports
Wrong drug prescriptions
200,000 68
per year
 SIX SIGMA GENERAL
METHODOLOGY

Measurement of current performance

Improvement of performance through experimentation

Achieving six sigma process through continuous

measurement, analysis and improvement
6σ
PROCESS MODELS

DMAIC
 The DMAIC project methodology has five

6σ
phases:

Define the system, the voice of the customer and

their requirements, and the project goals,
specifically.

Measure key aspects of the current process and

collect relevant data; the team identifies the key
internal processes that influence CTQs
(characteristics that are Critical To Quality) and

PROCESS MODELS measures the defects currently generated relative

to those processes.

DMAIC Analyze the data to investigate and verify cause-

and-effect relationships.
 Improve or optimize the current process

6σ
based upon data analysis using techniques
such as design of experiments, poka yoke
or mistake proofing, and standard work to
create a new, future state process. Set up
pilot runs to establish process capability.

Control the future state process to ensure

that any deviations from the target are
corrected before they result in defects.
PROCESS MODELS Implement control systems such as
statistical process control, production

DMAIC
boards, visual workplaces, and continuously
monitor the process.
6σ
PROCESS MODELS

DMADV
 The DMADV project methodology, known
as DFSS ("Design For Six Sigma"),features
five phases:

6σ Define design goals that are consistent with

customer demands and the enterprise
strategy.

Measure and identify CTQs, measure

PROCESS MODELS product capabilities, production process
capability, and measure risks. The

DMADV
organization may need to use QFD.

Analyze to develop and design alternatives

6σ
Detailed Design involves identifying
the finer details and identifying all
the required steps. The process steps
selected should be experimented
and improved.

Verify the design, set up pilot runs,

PROCESS MODELS implement the production process
and hand it over to the process

DMADV
owner(s).
Thus,
DMAIC is used for projects aimed
at improving an existing business
process.

DMADV is used for projects

aimed at creating new product or
process designs.
Within the individual phases of a DMAIC or DMADV project, Six
Sigma utilizes many established quality management tools that
are also used outside Six Sigma.
•5 Whys •Cost-benefit analysis
•Statistical and fitting tools •CTQ tree
•Analysis of variance •Design of experiments
•Histograms/Pareto analysis/Pareto chart
•General linear model
•Pick chart/Process capability
•ANOVA Gauge R&R •Quality Function Deployment (QFD)
•Regression analysis •Quantitative marketing research through
•Correlation use of Enterprise Feedback Management
•Scatter diagram (EFM) systems
•Chi-squared test •Root cause analysis
•Axiomatic design •SIPOC analysis (Suppliers, Inputs, Process,
•Business Process Mapping/Check sheet Outputs, Customers)
•COPIS analysis (Customer centric
•Cause & effects diagram
version/perspective of SIPOC)
•Control chart/Control plan /Run charts •Taguchi methods/Taguchi Loss Function
•Value stream mapping
 •Used extensively for optimizing the design, so
that the number of defects during
manufacturing or service comes down within
the limits of 3.4 defects per million

DESIGN opportunities.
•For design of products or processes,

FOR
Taguchi’s technique design of experiments
should be adopted.

SIX •QFD should be used to understand the real

requirements of customers.
•Failure Mode Effects Analysis (FMEA) should

SIGMA
be used for determining the various modes
of failures of the constituents and their
effects on the end product or process.
 In a larger organization, six sigma
is implemented in three levels:

S
•BUSINESS LEVEL

IX
- may take a few years

•OPERATIONS LEVEL

IGMA
- may take 12-18 months

•PROCESS LEVEL
-6-8 weeks to complete the
project
implementation
implementation
 Six sigma projects may be initiated by the
SIX SIGMA STEERING COMMITTEE or by
SENIOR EXECUTIVES.

S
Each project is assigned to a champion,

IX who sponsors the project.

A MANAGER LEVEL PERSON heads the six

IGMA
sigma team for each project; he may be
called a BLACK BELT.
He can take guidance from an expert in
statistical tools, who are usually called
MASTER BLACK BELTS.
implementation The team members are trained in
statistics.
 ▪CHAMPIONS. Senior management
persons assume the role of a
champion. They are to be familiar with
basic and advanced statistical tools.

S
Usually receive one week training.

IX ▪MASTER BLACK BELT.

▪ Needs to be a technical degree

IGMA
holder, and should be thorough w/
the basic and advanced statistical
tools.
▪ They typically attend two, one- week
training program, and receive black
mplementation belt training.
▪ They are senior level persons, and
are employees working on full time
basis on six sigma projects.
 ▪BLACK BELT. Also a technical degree
holder, and should be thorough w/ the
basic and advanced statistical tools. They
typically attend four, one- week training
program, with three weeks between

S
sessions to apply the strategies learnt to
assigned projects. There should be one

IX Black Belt per 100 employees. They are

employees working on full time basis and
are responsible for specific projects.

IGMA ▪GREEN BELT. Should have technical and

support background and should be familiar
with all the basic statistical tools. They also
attend training sessions. They execute 6σ
mplementation projects as part of their normal job.
 Some organizations use
additional belt colours, such as

S
Yellow Belts, for employees that

IX have basic training in Six Sigma

tools and generally participate
in projects and "White belts" for

IGMA those locally trained in the

concepts but do not participate
in the project team. "Orange
belts" are also mentioned to be
implementation used for special cases.
 •MOTOROLA
•SONY
COMPANIES WHO •IBM
HAVE IMPLEMENTED •BOMBARDIER
•LOCKHEED MARTIN

S
•ALLIED SIGNAL
IX •HONDA
•RAYTHEON

IGMA
•CANON
•HITACHI
 The success of six sigma projects are
evaluated based on the financial impact.

MOTOROLA achieved five-fold growth in

sales between 1987-1997 with a growth in
profits of 20% per year. They achieved a

SIX SIGMA
cumulative savings of 14 billion US dollars
and the price stock gains compounded to
an annual rate of 21.3%.
Motorola was also cited as the first winner
MEANS MORE of America’s Malcolm Baldridge National
Quality Award in 1988.

PROFITS
This led the other companies to become
interested in the six sigma program.
 GE believes that “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 gets as close as to
“zero defects” as possible.”

SIX SIGMA There are 3 key elements of quality for GE:

i. The Customer- Delighting Customers

Delighting the customer is the necessity,
because if you don’t do it, someone else will.
ii. The Process- Outside in thinking
Quality requires them to look at their
business from the customer’s perspective
and not from their own perspective.
iii. The employee- leadership Commitment
They believe that people create results. All GE
employees are trained in the strategy and
statistical tools and techniques of six sigma
quality.
 KAIZEN is simple, obvious and common sense
based improvement. It calls for process
mapping, analysis of cause and effect &

SIX SIGMA trainings on Kaizen.

LEAN manufacturing concentrates more on

LEAN
reducing wastes and removing non- value
adding processes. Dramatic results occur when
lean manufacturing is implemented.

SIX SIGMA is a methodology for disciplined

KAIZEN
quality improvement. It focuses on variations
and finally the root cause for the variation and
reducing the variation, so as to achieve “zero
defects manufacturing.” Statistical tool is the

TQM
nucleus of six sigma efforts. DMAIC, Cp, Cpk,
Design of experiments, process FMEA etc., are
pervasive in six sigma projects
•Simply put, 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.

•SIX SIGMA is a top- down approach. The

CEO is usually the driving force and top
management team provides a champion
for each project.

•SIX SIGMA is a data oriented approach.

Processes and variations are the central
theme.
 APPLICATION PROBLEM:

• Example:
• Assume that a product has 10 Critical To Quality
(CTQ) characteristics, and we produced 10,000
products. This means that the total number of critical
to quality characteristics is equal to 10,000 x 10. Or in
other words, the total number of opportunities is
100,000 for the defects to occur. Six Sigma means 3.4
defects per million opportunities. Therefore, for
achieving six sigma in this case, the number of
permissible defects is 3.4 x (100,000/1million) = 0.34 defects.
APLLICATION PROBLEM:

• Number of units produced = 1,000

• Defective product = 1
• Defective rate = 1/1000 = 0.001
• Number of opportunities per product = 10
• Defect rate per CTQ = 0.001/10 = 0.0001
• Defects per million opportunities = 0.0001 x 𝟏𝟎𝟔 = 100
• Findings : Does not meet the requirements of six sigma,
since it exceeds 3.4 dpmo.
APLLICATION PROBLEM:

• Units produced = 100,000

• Number of CTQ = 20
• Number of defects found = 2
• Defective rate = 2/(100,000 x 20) = 0.000001
• Defects per million opportunities =
• 0.000001 x 106 = 1
• Findings :
• Meet the requirements of six sigma since it less
than 3.4 DPMO
THANK
YOU!
ANY COMMENT !