Basics of Six Sigma

• Although originally developed for manufacturing in context of tolerance-based specifications, six sigma
concept has been operationalized to any process.

• It signifies a generic quality level of at most 3.4 defects per million opportunities.

• All Six Sigma projects have three key characteristics:

•
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a problem to be solved,

• a process with a characteristic in which the problem exists,

• one or more measures that quantify the gap to be closed and can be used to monitor progress.

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 Basics of Six Sigma (cont..)

• Six Sigma had its birth at Motorola in 1979.

• General Electric started to use Six Sigma in 1995.
• Allied Signal / Honeywell started Six Sigma improvement in early 1990s.
• Mumbai Dabbawala process is a Six Sigma process from decades.
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 Six Sigma as a metric
Example – If you measure
Shoe sizes of the entire  (x  x)
i
 2


population, the plot would  n 1

look like a Normal

Sigma = s = Deviation
distribution shown. 99.73 % Normal distribution
people will have shoe size ( Square root of variance )
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-7
-6
-5
-4
-3
-2
-1

1
2
3

5
6
7
0

4
Limits Area under curve
• Customer expects quality from process. +1s 68.27%
• Process Chs. should be aligned to customer. +2s 95.45%
• Evolve the measure of the process Chs. +3s 99.73%
• Study the current state and target 6 s. +4s 99.9937%
+5s 99.999943%

+6s 99.999998%
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 Non-linear decrease
+
2 308,537 Six Sigma quality

3 66,811 • Quality is measured in s levels.

• Customer driven acceptable limits.
4 6,210
• Moves target from (67000 DPMO) +3 sigma to (4
233 DPMO) +6 sigma defect level.
5
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• At what level is your service quality operating at?
6 3.4

Process Defects per Million

Capability Opportunities

“A disciplined method of using extremely rigorous data gathering

and statistical analysis to pinpoint sources of errors and ways of
eliminating them” - Harry & Schroeder, 2000
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 Example of Six-Sigma Metrics - DPMO

• Defect – any mistake or error that is passed on

Defect

TW
Clean
issue
Brake
issue
Light
issue
Fuel C
issue
Noise
issue
Leakage
issue
Defective
TW
No of
defects
to a customer.
• Defects per unit (DPU) = number of defects TW1 X X X YES 3

discovered  number of units produced.

TW2 X X X X Yes 4

• Defects per million opportunities (DPMO) = TW3

TW4 X X X
No

YES
0

3
DPU1,000,000  opportunities for error.
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TW6 X X X X YES 4

Total defect (D) = 14

Opportunities (O) = 6
Units (U) serviced = 6
Total Opportunities = 36
Defects per unit (DPU) = 14/6 = 2.3
Defects per opportunities (DPO) = 14/36 = 0.39
DPMO = 0.39 x 1000000 = 3,90,000 (< 2 sigma)
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 Concept of Six Sigma
• Six-sigma is an approach to continually improve and reduce variations in the process that contribute
to waste and poor quality.

• It is a measure of how well a process is performing.

• A genuine focus on the customer, data and fact driven Management, team based problem solving
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• It focuses on not making mistakes and reducing the variability in the processes.

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 Concept of Six Sigma (cont..)

• Six Sigma properly implemented will:

• Improve customer satisfaction,

• significantly improve quality,

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• improve the way we launch new products, and

• create a continuous improvement mindset.

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 Essential Six Sigma tools & DMAIC method

Statistical
Process Control 7 QC & Mgmt.
Tools
Design of
Experiments
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Balanced
Six Sigma scorecards
Process Design/ Tools
redesign
DMAIC
Continuous Voice of the
improvement Creative Customer/QFD
thinking

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 DMAIC approach in six sigma
• Phase 0: Process definition • Phase III: Process improvement
a) Describe the problem in operational terms. a) Idea generation. Brainstorming
b) Drill down to a precisely define problem statement. b) Evaluation and selection
c) Identify customers and CTQ, cost/revenue implications and c) Implementation planning.
performance metrics.
• Phase IV: Process Control
• Phase I: Process Measurement (data collection)
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a) Maintain improvements
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a) What questions are we trying to answer? b) Standard operating procedures
b) What kind of data would be required to answer the c) Training on control charts.
question?
c) Where can we find the data and Who can provide it?
d) How can we collect data with minimum effort and minimum
chance of error?

• Phase II: Process Analysis

a) Focus on errors, why defects, or excessive variation occur
b) Seek the root cause of the problem. 5-Why technique
c) Experimentation and verification
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 Summary

Here is a quick recap of what we have learned so far:

• COPQ is a comprehensive metric to be used.

• Improvement potential is high – 25% to 5%.
• Six Sigma (3.4 DPMO) is different, customer driven, data triggered, process oriented, bottom-line
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impacting and top down approach.
• DMAIC tools is a very structured and expert driven methodology.

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Thank You

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