Objectives

Develop undestanding of Six Sigmaof Six Sigma Quality

Develop understanding
What Is Six Sigma?
 Measure of Quality

Six Sigma is a measure of quality that strives for near

perfection. The Six Sigma process uses data and rigorous
statistical analysis to identify "defects" in a process or product,
reduce variability, and achieve as close to zero defects as
possible.
What Is Six Sigma?
 Measure of Quality

Using a universal measurement scale, Six Sigma defines

and estimates the opportunities for error and calculates
defects in the same way every time, thus offering a
means for measuring improvement. In fact, Six Sigma
takes its name from the Greek letter "sigma," which is
used in statistics to indicate standard deviation.

The Six Sigma methodology incorporates this data and

statistical analysis into a project-based workflow that
allows businesses to make intelligent decisions about
where and how to incorporate improvements.
What Is Six Sigma?
 Measure of Quality

6 Sigma is a Statistically based Quality Program.

It is a rigorous methodology to improve

process control.
 Process Capability needs to be Better than you
think !

Activity Defects @ 99% Defects @ 99.9997%

( 3.8 Sigma ) ( 6 Sigma )

Mail 20,000 lost articles 7 lost articles

Delivery of mail per hour of mail per hour

Drinking Unsafe drinking water Unsafe drinking water

Water for 15 mins per day for 2 mins per year

Hospital 5000 incorrect 2 incorrect

Surgery procedures per week procedures per week

Air 2 abnormal landings 1 abnormal landing

Travel at most airports each day every 5 years

Sometimes 99% is just not good enough

 What Is Six Sigma?
 Process For Continuous Improvement

6 Sigma provides a process based approach

to continuous improvement.

It is independent of the measurement involved

& can be used to improve any business process
 Two Routes to choose from :

1) Improved Control DMAIC

Define Measure Analyze Improve Control

The Process is capable

- the Issues lie with the Variation
How to do ?
The DMAIC Model
At the heart of Six Sigma is a systematic method
for analyzing and improving business process
called DMAIC. The DMAIC model includes five
phases:

Define opportunities
Measure performance
Analyze opportunity
Improve performance
Control performance
 2) New Process DF SS
Design For Six Sigma

New Process Development -

Creating 6 Sigma Process Capability
 What Is Six Sigma?

 Enabler For Cultural Change

To be successful, 6 Sigma requires a radical change

in the way an organization works.

Business Leadership and 6 Sigma can together

transform a company
It’s all about Getting Results

 Significantly Higher Net Income

 Simpler Processes - Speed everywhere

 True Focus on What the Customer Wants

 Improved Employee Satisfaction

 Example of 6 Sigma
LightSpeed CT Scanner
Exam Time Exam Time Procedures
Before After per Year

HEAD 9 million
1 minute 19 seconds

SPINE 1 million
2 minutes 15 seconds
Head: skull, brain CHEST
ABDOMEN 4 million
PELVIS 3 minutes 17 seconds

6 million
LIVER
20 seconds 06 seconds

Abdomen: liver, spine, kidney

Image Speeds
Before After

Unparalleled Resolution in a Fraction of the Time

 6 Concepts

Concept Definition
Critical-To-Quality Customer performance
Characteristics (CTQ) requirements of a product
or service

Defect Any event that does not meet

the specifications of a CTQ

Defect Opportunity Any event which can be

measured that provides a
chance of not meeting a
customer requirement

Concept
Concept OfOf Defects
Defects AtAt The
The Core
Core 66
OfOf
 Data Types

Continuum
of
Data Types

Discrete Continuous

Binary Ordered Count

categories

Classified Rankings Counted Measured

Description into one of or ratings discretely on a
two categories continuum
or scale

Example % of Customer Number of Time (in

applications satisfaction errors in an hours) to
with one or rating of application process an
more errors call center application
service

How Does The Customer Measure Your Process?

 DPU and DPMO

= 1 unit = 1 opportunity

1 unit = 4 opportunities = defect

DPU = 1 DPU = 2 DPU = 3

dpo = 0.25 dpo = 0.5 dpo = 0.75
dpmo = 250,000 dpmo = 500,000 dpmo = 750,000

DPU = 1 Is this unit better than

dpo = 0.125 the one shown above
it?
dpmo = 125,000

DPU
x10 6  dpmo
Opportunities
or
dpmo x Opportunities
DPU =
10 6
 Sigma Calculation
1. Number of Units processed 15
N = __________

2. Number of Defect Opportunities Per Unit 1

O = __________

3. Total number of Defects made 5

D = __________

4. Defects Per Opportunity

D ( 5 ) =
0.333
DPO = N•O ( 15 ) ( 1 )

5. Convert DPO to DPMO

0.333 • 1,000,000
DPMO = DPO • 1,000,000 = __________ 333,000
= _________
6. Look up Process Sigma in

Abridged Process Sigma Conversion Table 1.93

Sigma(ST) = __________

DPMO – 333,000 Sigma = 1.93

 Yield

Yield = [Total opportunities - Defects] / Total Opportunities * 100

Tools used for Six Sigma VOC

Quality = meeting customer needs

and providing superior value.

Meeting customer needs requires

that those needs be understood.

The "voice of the customer" is the term to

describe the stated and unstated
customer needs or requirements.

Customer has Stated and Unstated needs and we try to extract both
 VOC

•The Voice of the Customer (VOC) refers to information from

customers gained from a variety of sources about the expected
and/or actual performance of a product or process

•Voice of the Customer data can be quantitative or qualitative

and is derived from a number of sources.

•It can be conveyed in written or verbal form, or it can be

expressed by the customer's actions.

•VOC data can be offered freely by a customer or actively

solicited by a business. This could be done by way of
interviews, surveys, focus groups, feedback forms etc.
 VOC

Focus Groups

•A structured group interview of potential users or stakeholders

•Used for collecting Qualitative data such as opinion, attitudes etc

Interview
•An interview is a structured question-and-answer session designed to
obtain specific information.
•An interview may be held in person or by telephone with an individual or a
group.

Survey
A method of gathering information from a sample of individuals.
For example,
• a sample of voters is questioned in advance of an election to determine how the public
perceives the candidates and the issues ..
• a manufacturer does a survey of the potential market before introducing a new product ...
• a government entity commissions a survey to gather the factual information it needs to
evaluate existing legislation or to draft proposed new legislation.
 QFD

QFD - Quality Function Deployment

WHAT IS QFD ?
Method for Translating Customer Requirements Into An Appropriate
Company Program and Technical Requirements at Each Phase of the
Product Realization Cycle.

 An Orderly Process for Determining CTQs

 Common Sense Approach
 BASIS - Ask Your Customer
 Listen --- REALLY LISTEN
 QFD

WHAT DOES QFD DO?

CONCEPT CUSTOMER

PLAN DESIGN REDESIGN MANUFACTURE

PLAN DESIGN REDESIGN MANUFACTURE

BENEFITS
BENEFITS

QFD IS A PRODUCTIVITY ENHANCER

 QFD

QUALITY FUNCTION DEPLOYMENT

System
Features
(HOW’s) Product
Functionality
(HOW’s)
System
House
Customer Wants

Characteristics
(HOW’s)
(WHAT’s)

Design
of House
System Features
Alternatives
Quality of (HOW’s)

Product Functionality
(WHAT’s)
#1 Quality House

System Characteristics
(WHAT’s)
#2 of House
Quality

(WHAT’s)
of
#3 Quality
Y #4

Critical-to-Quality
Characteristics X
(CTQs) Key
Characteristics
Key
RDD
Process
Variables

NOTE: The How’s at One Level Become the What’s at the Next Level
 CTQ

What is Critical to Quality (CTQ)?

 What a customer tells us they want from our product / service or process output
 CTQs are rendered from Voice of Customer (VOC)
 CTQs must be specific
 CTQs must be measurable
 CTQs must be actionable

Why Is It Important To Move From VOC to CTQ?

 Moving from VOC to CTQ enables us to clearly state customer needs that are
specific, measurable and actionable. CTQs help us to know exactly what product
feature or process performance level is required in order to meet the customer’s need.

 Accurate VOC-to-CTQ translation is critical to achieve positive customer impact.

Translating is NOT re-writing the voice of the customer, but is clearly stating the
specific process requirements and specifications

 CTQs are the primary input to our performance measurements and improvement
efforts.
CTQs are defined when VOC is effectively translated into
specific & measurable requirements
 CTQ

CTQs always have three elements:

 CTQ Category (also known as an Output Characteristic or CTQ name, e.g. Claims
Processing Timeliness)
 Customer Specification (customer’s requirement of our product/ service or
process, e.g. “30”)
 Unit of Measure (how output is quantified by the customer, e.g. “Days”)

CTQ Example: Claims Processing Timeliness: 30 Days

Category Specification Unit of Measure

ACHT (Average Call Handle Time): 160 secs
TAT (Turn Around Time): 1 day

CTQs - The Bridge Between Our Processes & Customer Delight!

 Boxplots

By default, a boxplot consists of a box, whiskers, and

outliers.
A line is drawn across the box at the median.
By default, the bottom of the box is at the first quartile (Q1), and the
top is at the third quartile (Q3) value.
The whiskers are the lines that extend from the top and bottom of
the box to the adjacent values.
The adjacent values are the lowest and highest observations that are
still inside the region defined by the following limits:
Lower Limit: Q1 - 1.5 (Q3 - Q1)
Upper Limit: Q3 + 1.5 (Q3 - Q1)
 Fish bone / root cause

• Purpose
– Create a Visual Display of
possible root causes

• When
– to expand your thinking to
consider all possible causes
– To gain Group’s input
 Also called
Cause and Effect
Diagram

X (Material) X (Measurement) X (Methods)

Ys
(Effect)

X s (Causes) called as
X (Machinery) X (People) X (Enviornment) 5 Ms and 1 P

Brainstorming tool …
root cause analysis of any Effect (Y)
 Quality Involves...

Every single one of us

Every job, product, process and function

Getting it right first time, not just fixing it

afterwards
 How You Can Get Involved Today

• Think about your own metrics

– Who are your customers: internal and external?

– What do you deliver to your customers?

– What do they think is critical to their using your product to get

their job done?

– How do you measure up?

 Ultimately, Six Sigma is about more than
numbers. It's a highly disciplined
methodology and practice that provides the
tools you need to achieve consistent, high-
performance results from your products and
processes.

By increasing performance and decreasing

variation, Six Sigma allows organizations like
yours to make customer-focused, data-driven
decisions that ultimately yield a reduction in
product defects, increased profits and
employee morale, and high-quality products -
a win-win situation for everyone involved.