Introduction of Six Sigma(ppt47).pptx

Six Sigma helps to establish our course and to gauge our pace in the race for total customer satisfaction.Improved Sigma-Rating of ProcessImproved Product or Process QualityReduced Cost of OperationsGreater Customer SatisfactionTraditional Quality Costs(tangible)Lost OpportunityHidden FactoryAdditional Costs of Poor Quality(intangible)(Difficult or impossible to measure)COPQ is a function of Sigma Capability InspectionWarrantyScrapReworkRejectsMore SetupsExpediting CostsLost salesLate DeliveryLost Customer LoyaltyExcess InventoryLong Cycle-TimesEngineering Change OrdersProfitTotal Cost to Manufactureand DeliverProductsProfitTheoreticalCostsCost ofPoor QualityCOPQPrice ErosionTheoreticalCostsCost ofPoor QualityCOPQProfitTheoreticalCostsCOPQTimeReject RateHistorical Level ( 0)Natural Variation under 0 (30)Special VariationOptimum Level ( 1)Natural Variation under 1(31)Six Sigma is about improving profitability; improved quality and efficiency are immediate by-products.Sigma is a statistical unit of measure that reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error.2308,537366,80746,210523363.4 PPMProcessCapabilityDefects per Million Opp. Point of Inflection1 TUSLp(d)1234563 This is a 6 Sigma ProcessDeliveryPriceQualityCustomerSupplierNeedCycle TimeCostDefectsDoIdentify the Customers NeedCenter around the TargetReduce VariationReduce DefectsThe output (Y) is perceived as a function of the input (X). What is the problem of our focus? Whats our goal? And by when? Whos the customer impacted? What are the CTXs in-concern? Whats the process under investigation?TimeReject RateBaseline NID( 0, 0)Natural Variation (30)Special VariationGoal NID( 1, 1)Natural Variation (31)EntitlementOpportunity for Improvement ()0.7Internal Failure CostsExternal Failure Costs Scrap Cost to Customer Rework Warranty Cost Supplier Scrap & Rework Returned MaterialAppraisal CostsPrevention Costs Inspection Quality Planning Testing Process Planning Quality Audits Process Control Initial & Maintenance Costs of Training Test & Inspection EquipmentOpportunity CostsHard Savings Potential Savings Soft Savings the focus and extent of the problem, based on measures of the process, the key data required to narrow the problem to its major factors or vital few root causes.Defect Rate = # Defects / # Units = 7 / 5 = 1.4 dpu1. Arm Height2. Arm thickness3. Bore hole Dia4. Swgae hole Dia5. Roughness6. Teardrop profile7. Roll8. PitchOpportunities per Unit = 8Number of Opportunities= Opportunities per Unit Number of Units= 8 5 = 40Defect Rate= # Defects / # Opportunities = (7 / 40 ) 106= 175,000 dpmo0.023.42336,21066,811308,770697,672-100,000200,000300,000400,000500,000600,000700,000800,00001234567Sigma CapabilityDefects Per Million OpportunityProcess968Accept32RejectFirst-Time Yield, Yft = 968 / 1000 = 0.9681,000InputProcess968Accept32Reject1,000Input(40 Defects)Throughput Yield, Ytp = e-(40/1000) = 0.961800ShipProcess A1,000Input50ScrapProcess B950Input25ScrapProcess C925Input125ScrapFinal Yield, Yf= Quantity Shipped / Quantity Built = 800 / 1,000 = 0.80A shortcoming of final yield is that it fails to consider the “hidden factory” or rework.Hidden Factory : ad hoc systems and processes set up to correct errors made during the mainstream process.Rolled Throughput Yield= Ytp(A) Ytp(B) Ytp(C) = 0.7408 0.6393 0.5824= 0.2758675ShipProcess A1,000Input50ScrapRework200150Process B800Input (950)25ScrapRework300275Process C650Input(925)125ScrapRework250125Defects = 300 Ytp(A)= e300/1,000 = 0.7408Defects = 425 Ytp(B)= e425/950 = 0.6393Defects = 500 Ytp(C)= e500/925 = 0.5824Defects= 300Analyze Data/ProcessDevelop Causal HypothesisRefine or Reject HypothesisAnalyze Data/ProcessConfirm & Select Vital Few Causes What possible actions or ideas required to address the root cause of the problem, and to achieve the goal? Which of the ideas are workable potential solutions? Which solution will most likely achieve the goal with the least cost or disruption? How can the chosen solution be tested for effectiveness, and then implemented permanentlyImplement ongoing measures and actions to sustain improvementDefine responsibility for process ownership and managementExecute “closed-loop” management and drive towards Six SigmaChampionManagementEmployeesFinanceTeamBlack BeltOptimized Process30 - 5010 - 154-8Key Process InputVariables (KPIVs)8 - 10KPIVsCritical KPIVs3-6Key Leverage KPIVsInputs VariablesProcess MapMulti-Vari Studies,CorrelationsScreening DOEsDOEs, RSMC&E Matrix and FMEAGage R&R, CapabilityT-Test, ANOM, ANOVAQuality SystemsSPC, Control PlansMeasureAnalyzeImproveControl