Six Sigma Primer Seeking Meaningful Improvements Presented by: Andy Pattantyus Prepared for: APICS San Gabriel Valley Chapter by Strategic Modularity, Inc. www.strategicmodularity.com [email protected] Phone: 855-LeanOps FAX: 661-554-0299 April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 1 of 40 Six Sigma Primer Learning Objectives • What is six sigma? • Are my processes six sigma? • What is process capability? • Why care about six sigma? • How can I get a process to six sigma? • The six sigma goal: improving yield April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 2 of 40 1. What is Six Sigma? Overview • A description of process capability – Statistical – Mathematical • An operational philosophy – CPI – Continuous Process Improvement – VR&C – Variability Reduction & Control April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 3 of 40 What is Six Sigma? Definitions - ASQ • Six Sigma is a philosophy – This perspective views all work as processes that can be defined, measured, analyzed, improved and controlled. Processes require inputs (x) and produce outputs (y). If you control the inputs, you will control the outputs: This is generally expressed as y = f(x). • Six Sigma is a set of tools – The Six Sigma expert uses qualitative and quantitative techniques to drive process improvement. A few such tools include statistical process control (SPC), control charts, failure mode and effects analysis and flowcharting. • Six Sigma is a methodology – This view of Six Sigma recognizes the underlying and rigorous approach known as DMAIC (define, measure, analyze, improve and control). DMAIC defines the steps a Six Sigma practitioner is expected to follow, starting with identifying the problem and ending with the implementation of long- lasting solutions. While DMAIC is not the only Six Sigma methodology in use, it is certainly the most widely adopted and recognized. Source: ASQ [1] April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 4 of 40 What is Six Sigma? Definitions – Lean Lexicon • A quality standard of just 3.4 defects per one million opportunities; 99.9996% perfect. • Six sigma methodologies emphasize mathematical and statistical tools to improve the quality of processes that are already under control. • Application follows a five-step process of define, measure, analyze, improve, and control often referred to as DMAIC. • The term refers to the number of standard deviations a point is away from the mean point in a bell curve. It often is represented as 6 sigma. Source: Lean Lexicon [2] April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 5 of 40 What is Six Sigma? History • Born at Motorola – Motorola conceived the six sigma technique in 1986 as a way to achieve the company’s improvement goals in manufacturing and support functions. • Motorola Suppliers – Starting 1991 – Eveready Battery Company Inc. (Energizer) • Early corporate adopters – Starting 1995 – Allied-Signal (now Honeywell) – General Electric – 3M April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 6 of 40 What is Six Sigma? Mathematics or Management? • Mathematics – Field of statistics known as Process Capability – Basis for measurements – Verifiable data is the basis for decisions • Management – Continuous improvement efforts • Reduce process variation • Achieve stable and predictable results – Focus on business and manufacturing processes – Organizational commitment, especially top-level April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 7 of 40 2. Are my processes six sigma? Probably Not! • If your organization knows process capability, and regularly uses it as a tool, then you know if your processes are six sigma. • Otherwise, most processes which have not been the object of continuous process improvement and variability reduction are likely less than 4 sigma. April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 8 of 40 3. Process Capability A qualitative definition • Capable Process - Predictable – Stays in control w/o intervention – Get it right the first time – Process monitoring: Good Process = Good part – High yield • Poor Process - Unpredictable – Out of control - constant intervention required – High Scrap and/or Lots of rework – Checking parts instead of monitoring processes – Low yield April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 9 of 40 Process Capability - Cp A quantitative definition SpecificationWidth Cp = ProcessCapability ±6σ Cp = ±4σ Cp =1.33 Cp = Cp = 2.0 ±3σ ±3σ Source: Motorola [4] April 18, 2012 © Strategic Modularity Inc. 2012 www.strategicmodularity.com Page 10 of 40
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