Slide 1How good is good enough?How can we get these resultsThe answer is:What is Six SigmaSix Sigma as a Philosophy3 Sigma Vs. 6 SigmaFocus: The End UserSix Sigma as a MetricSlide 10Slide 11Slide 12Slide 13Non-Liner DecreaseSix Sigma as a ToolSix Sigma as a MethodA Traditional ViewA Non-Traditional ViewDistinguish “Vital Few” from “Trivial Many”Strategy by Phase -Six Sigma OrganizationA Black Belt has…, and will…Black Belt TrainingSlide 24Corporate CommitmentCorporate Commitment (Cont’d)Barrier Breakthrough PlanOther Companies have Black Belts ProgramSlide 29Slide 30Slide 31Slide 32Slide 33Slide 34Slide 35Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41Slide 42Slide 43Slide 44Slide 45Slide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Slide 54Slide 55Design of Experiments (DOE)Slide 57Slide 58Slide 59Why use DoE ?DoE techniquesDoE techniques….contd.Slide 63Slide 64Slide 65Slide 66Slide 67Slide 68CONTROL PHASE - SIX SIGMASlide 70Slide 71Slide 72Slide 73Slide 74Slide 75Slide 76Slide 77Slide 78Slide 79Slide 80Slide 81Slide 82Slide 83BibliographySIX SIGMASIX SIGMAA STRATEGY FOR PERFORMANCE EXCELLENCEA STRATEGY FOR PERFORMANCE EXCELLENCERuben GuajardoRuben GuajardoDeepak NavnithDeepak NavnithVictor TorresVictor TorresKuan ZhangKuan ZhangProfessor:Professor: Neil KaneNeil KaneMarch 16th, 2001MS&E 269SIX SIGMASIX SIGMA99.9% is already VERY GOOD But what could happen at a quality level of 99.9% (i.e., 1000 ppm), in our everyday lives (about 4.6)? •More than 3000 newborns accidentally falling from the hands of nurses or doctors each year•4000 wrong medical prescriptions each year•400 letters per hour which never arrive at their destination•Two long or short landings at American airports each dayHow good is good enough?SIX SIGMASIX SIGMAHow can we get these results• 13 wrong drug prescriptions per year• 10 newborn babies dropped by doctors/nurses per year• Two short or long landings per year in all the airports in the U.S.• One lost article of mail per hourSIX SIGMASIX SIGMAThe answer is:Six SigmaSIX SIGMASIX SIGMA A Vision and Philosophical commitment to our consumers to offer the highest quality, lowest cost products A Metric that demonstrates quality levels at 99.9997% performance for products and processs A Benchmark of our product and process capability for comparison to ‘best in class’ A practical application of statistical Tools and Methods to help us measure, analyze, improve, and control our processWhat is Six SigmaSIX SIGMASIX SIGMASix Sigma as a PhilosophyInternal &ExternalFailure CostsPrevention &AppraisalCostsOld Belief4CostsInternal &ExternalFailure CostsPrevention &AppraisalCostsNew BeliefCosts456QualityQualityOld BeliefHigh Quality = High CostNew BeliefHigh Quality = Low Cost is a measure of how much variation exists in a processSIX SIGMASIX SIGMA3 Sigma Vs. 6 SigmaThe 3 sigma Company The 6 sigma Company• Spends 15~25% of sales dollars on cost of failure• Spends 5% of sales dollars on cost of failure• Relies on inspection to find defects• Relies on capable process that don’t produce defects• Does not have a disciplined approach to gather and analyze data• Use Measure, Analyze, Improve, Control and Measure, Analyze, Design• Benchmarks themselves against their competition• Benchmarks themselves against the best in the world• Believes 99% is good enough • Believes 99% is unacceptable• Define CTQs internally• Defines CTQs externallySIX SIGMASIX SIGMAFocus: The End User•Customer: Internal or External•Consumer: The End Userthe “Voice of the Consumer” (Consumer Cue)must be translated intothe “Voice of the Engineer” (Technical Requirement)SIX SIGMASIX SIGMASix Sigma as a MetricCENSORED1)(2nxxiSigma =  = Deviation ( Square root of variance )-7-6-5-4-3-2-101234567Axis graduated in Sigma68.27 %95.45 %99.73 %99.9937 %99.999943 %99.9999998 %result: 317300 ppm outside (deviation)45500 ppm2700 ppm63 ppm0.57 ppm0.002 ppm between + / - 1between + / - 2between + / - 3between + / - 4between + / - 5between + / - 6=SIX SIGMASIX SIGMA3-sigma Process(centered)Cp = 1.0Cpk = 1.02,700 ppmSpec LimitsSIX SIGMASIX SIGMA3-sigma Process(shifted 0.5 std. dev.)Cp = 1.0Cpk = 0.833ppm = 6,442(about 2.72-sigma)Spec LimitsSIX SIGMASIX SIGMA3-sigma Process(shifted 1.0 std. dev.)Cp = 1.0Cpk = 0.667ppm = 22,782(about 2.28-sigma)Spec LimitsSIX SIGMASIX SIGMA3-sigma Process(shifted 1.5 std. dev.)Cp = 1.0Cpk = 0.5ppm = 66,811(about 1.83-sigma)Spec LimitsSIX SIGMASIX SIGMANon-Liner Decrease23456308,53766,8116,2102333.4PPMProcess CapabilityDefects per Million Opportunities* Includes 1.5 shiftFocusing on  requires thorough process understanding and breakthrough thinkingFocusing on  requires thorough process understanding and breakthrough thinking010203040506070801 2 3 4 5 6Process Sigma% Change0100000200000300000400000500000600000700000800000PPMFrom 1 to 2From 3 to 4From 4 to 5From 5 to 6% ChangePPMSIX SIGMASIX SIGMASix Sigma as a ToolProcess Mapping Tolerance AnalysisStructure Tree Components SearchPareto Analysis Hypothesis TestingGauge R & R RegressionRational Subgrouping DOEBaselining SPCMany familiar quality tools applied in a structured methodologyMany familiar quality tools applied in a structured methodologySIX SIGMASIX SIGMASix Sigma as a MethodTo get results, should we focus our behavior on the Y or X•Y •X1…Xn•Dependent•Independent•Output•Input-Process•Effect•Cause•Symptom•Problem•Monitor•ControlSIX SIGMASIX SIGMAA Traditional View• Output VariablesManage the outputs.Sales GrowthMarket ShareProfitabilitySIX SIGMASIX SIGMAA Non-Traditional View• Output Variables• Input VariablesManage the inputs; respond to the outputs.Sales GrowthMarket ShareProfitabilityCustomer SatisfactionProduct QualityOn-Time DeliveryCOQCredit TermsRelationshipsServiceCustomer TrainingSIX SIGMASIX SIGMADistinguish “Vital Few”from “Trivial Many”Y = Dependent Variable Output, Defectx = Independent Variables Potential Causex* = Independent Variable Critical Cause Define the Problem / Defect StatementY = f ( x1*, x2, x3, x4*, x5. . . Xn)Process(Parameters)MaterialMethodsPeopleEnvironmentOutputMachineMeasurementsSIX SIGMASIX SIGMAStrategy by Phase - PhaseMeasure(What)Analyze(Where, When, Why)Improve(How)Control(Sustain, Leverage)StepWhat is the frequency of