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Basic Six Sigma for Manufacturing
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Six Sigma e-Academy
MFG 6s Over view :
Session 1 Define : 1. 6s Overview
Six Sigma e-Academy
MFG 6s Black Belt Class
Session 1 : Define
Six Sigma Overview
Six Sigma e-Academy
1st Day 1. Introduction and background of 6s
2. What’s 6s
3. Why 6s, How to Apply
Six Sigma Overview
Six Sigma e-Academy
1. Introduction and Background of 6s
Why apply 6s
Quality & failure cost
paradigm Shift
Characteristics of 6s
Examples of Major Corporations
Key for Success 6s
6s Propulsion System
Six Sigma e-Academy
Introduction and Background of Six Sigma
21st Century is … - Limitless competition One Global market
Business Structure is … - ‘High cost, Low Efficiency High failure cost
To increase the competitive power Total optimization of R&D, Production, Sales and Service is Necessary.
Six Sigma e-Academy
Quality Management & Six Sigma
“Six Sigma Management” - Lead by American Companies
- By small group of sections - Toward total solution
- Improve Product Quality
QC
TQC
TQM
Six Sigma
Total optimization of R&D, Production, Sales and Service Is necessary !!
Orchestra for a Company
“Production line focused Improvement” - Lead by Japanese Companies
Six Sigma e-Academy
Six Sigma History
Bill Smith report : Most of Service called product were from reworked product at the factories.
Hidden Factory and Rolled Throughput Yield concept are induced.
Actual practice strategy by Dr. Mikel Harry.
The Malcolm Baldridge Award of 1988 of Motorola.
After Motorola, Texas Instrument, ABB, Allied Signal, GE., LG Electronics, Polaroid, Nokia,
Lockheed Martin, Sony started Six Sigma.
Six Sigma e-Academy
Attractive Point of Six Sigma
From a survey …
“Which subject is the most dislike study ?”
1st Accounting 2nd Statistics
KISS = Keep It Simple Statistically
Complicated formula & calculation
Too difficult to understand Hard to adapt the statistics on real business.
Select the most useful statistics. Apply the improving process of “Measure, Analyze, Improve and
Control”. Use very easy software for statistical approach.
Six Sigma e-Academy
What is Six Sigma
1. Statistical Measurement :
We measure defect rates in all process
through an expanding statistical concept,
and we can use ‘s’ in measuring process capability.
2. Business Strategy :
We gain a competitive edges in Quality,
Cost, Customer Satisfaction.
3. Philosophy :
We should work Smarter, not harder.
Six Sigma e-Academy
Harvesting the fruit of Six Sigma
Sweet Fruit Design For Six Sigma
5s Wall-Improve Design
Bulk of fruit
Process characterization and optimization
4s Wall-Improve Process
Low hanging fruit
Seven Basics Tools
4s Wall-Improve Process
Ground fruit
Logic and Intuition
Six Sigma e-Academy
The 3 sigma Company The 6 sigma Company
Spend 15~25 % of sales dollars on cost of
failure.
Produces 66.807 defect per-million
opportunities.
Relies on inspection to find defect.
Believe high quality is expensive.
Does not have a discipline approach
to gather and analyze data.
Benchmark themselves against their
competition.
Believes 99% is good enough.
Defines CTQ’s internally.
Spend 5% of sales dollars on cost
of failure.
Produces 3.4 defect per-million
opportunities.
Relies on capable process that don’t
produce defect.
Knows that the high quality producer
is the low cost producer.
Uses Measure, Analyze, Improve & Control.
Benchmarks themselves against the beat
in the world.
Believes 99% is unacceptable.
Defines CTQ’s externally.
Differences between 3s & 6s
Six Sigma e-Academy
The focus of Six Sigma
To get results, should we focus our behavior on the Y or X ?
CTQ (Y) = F (X1,X2,X3, ……… Xn)
Dependent
Output
Effect
Symptom
Monitor
Independent
Input-Process
Cause
Problem
Control
Y X
Six Sigma e-Academy
Measurement get Attention
We don’t know what we don’t know.
If we can’t express what we know in the form of numbers,
we really don’t know much about it.
If we don’t know much about it, we can’t control it.
If we can’t control it, we are at the mercy of chance.
Six Sigma e-Academy
Our survival is independent upon expanding the business. Our business growth is largely determined by customer satisfaction. Customers satisfaction is governed by quality, price and delivery. Quality, price and delivery is controlled by process capability. Our process capability is greatly limited by variation. Process variation leads to an increase in defects, cost and cycle time.
To eliminate variation, we must apply the right knowledge. In order to apply the right knowledge, we must first acquire it. To acquire new knowledge means that we must have the will to survive.
The Chain of Causation
Defect reduction Yield Improvement Improve Consumer satisfaction Higher Net Income
Statistical Measurement Business Strategy
Philosophy
The Goal Of Six Sigma
What is Six Sigma
The Language of Six Sigma
The Important of Measurement
Achieving Operational Excellence
Summary
Six Sigma e-Academy
1. Introduction and background of 6s
2nd Day 2. What’s 6s
3. Why 6s, How to Apply
Six Sigma Overview
Six Sigma e-Academy
What is Six Sigma ?
Statistical meaning of Six Sigma
What is Statistics ?
Quality Level of Six Sigma
Apply Six Sigma
Six Sigma Process
2. What is Six Sigma ?
Six Sigma e-Academy
Six Sigma is a rigorous analytical process for solving business problem.
Before
Rely on Job Experience
After
Using Job
Experience & Statistical Process
Finding Problem
Logically &
Data
Improve by Knowledge
And experience of the Job
Input Data Analyze based On the Data
Analysis Experiment
Exact
&
Effective
Decision
What is Six Sigma ?
Six Sigma e-Academy
Statistical Meaning of Six Sigma
Population & Sample
Average : m
Standard Deviation : S(s)
Population
Sample (n=10)
Average : x
Standard Deviation : s (s)
Six Sigma e-Academy
N = 1000
Sample
An application theory and method to reach appropriate and wise decission in unknown circumstance
Population and Sample :
Measure 10 samples ( Spec : 100 + 4 )
We might say population is good because all the sample’s data are located between LSL and USL. But if we use normal distribution then this population has the probability of 28,000 PPM defect – this Is “Epidemic” quality level.
What is Statistics ?
Six Sigma e-Academy
It is a letter from the Greek Alphabet.
It is used to present the variation of a process.
s (Sigma)
6s
Six Sigma e-Academy
s level (Z level)
Statistical index relating how much the limit is (are) apart from the target or average
3s Level
3s
USL
Probability
Of a defect
6.68% s
Mean (m)
Statistical Meaning of Six Sigma
Six Sigma e-Academy
When the variation is reduced so six standard deviation can be fitted to the specification limit,
we Call it Six Sigma level Six Sigma permits only 3.4 PPM.
6s Level
6s
USL
Probability
Of a defect
3.4 PPM s
Mean (m)
Statistical Meaning of Six sigma
Six Sigma e-Academy
Quality Level of Six Sigma
Practical meaning of “ 99% Good ” 20,000 lost articles of mail per-hour. Unsafe drinking water almost 15 minutes per day.
5,000 incorrect surgical operations per week. 2 short or long landings at most major airports each day. 200,000 wrong drug prescription each year. No electricity for almost 7 hours each month. (Resources : based on the USA)
S-Level
(Z level) PPM
6 3.4
5 233
4 6,210
3 66,807
1 308,537
Process
Capability
( Present )
Stretch Goal !
3.4 PPM
( Shift 1.5s )
Six Sigma e-Academy
What is Six Sigma Activity ?
In all design, manufacturing and services
process.
Statistical tool & process for applying Six
Sigma.
To find factors causing defects.
Applying analysis & improvement.
Defect reduction, increased yield &
total customer satisfaction.
Management innovation tool
contributing to management output.
Achieving
3.4 PPM (3.4 defects per Million)
ZST = 6.0, ZLT = 4.5
PPM Parts Per Million
ZST Short term Z value
ZLT Long term Z value
Six Sigma e-Academy
Apply Six Sigma
Six sigma is a tool that is applied to all business system, Design, Manufacturing, Sales and Service.
Sales &
SVC
R&D
MFG
6s
R&D 6s
MFG
6s
Trans. 6s
Guarantee for design completion
Selecting CTQ to meet customer needs.
Deciding reasonable tolerance.
Guarantee CTQ’s through capability analysis.
Quality Assurance in manufacturing stage
Improve serious problem.
Real time monitoring system
CTQ Control system.
Quality Assurance in manufacturing stage
Improve cycle time and accuracy.
Cost improvement.
R&D
MFG
SVC
Six Sigma e-Academy
Six Sigma Process
Clarifying the improvement target Define
Measure
Analyze
Improve
Control
Is it
OK
?
Yes
No
- Forecast the improvement effect.
- CTQ selection for product and process.
Understanding process capability for Y
- Clarifying measurement method for Y.
- Specific description of target.
Screening for the Vital Few
- Understanding relationship of vital few.
- Process optimization and confirmation experiment.
Clarify Target for Improving Y
- Clarifying factors which affect Y
Determine control method for X
- Build up process control system & audit Vital Few
IF THE SOLUTION IS ALREADY KNOWN, JUST DO IT….!!
Six Sigma e-Academy
Six Sigma Process – [1] Define
Customer Needs
Customer Needs
Customer Needs
CTQ (Y) = f ( X1, X2, X3, … Xn )
* CTQ : Critical – To – Quality
1) From Customers Voice
Problem …
CTQ (Y)
Six Sigma e-Academy
Six Sigma Process – [1] Define : Project came from interaction …
Company
Do
Cycle Time Cost Defect
Customer
Delivery Price Quality
Need
Interactio
n
Six Sigma e-Academy
Six Sigma Process – [1] Define : Project came from interaction …
Activity Focus (CTQs)
Quick response (Response time for Customers Call)
Excessive stock
Delay for Delivery
Billing Accuracy
Excessive transportation cost
Kindness for Customer
SVC rate
Scrap / Rework
High production cost …
Six Sigma e-Academy
Six Sigma Process – [2] Measure
Precision
LSL USL
Defect !
Accuracy
LSL USL
Defect !
m T T = m
Six Sigma e-Academy
Six Sigma Process – [3] Analyze
Analyze
Response
CTQ (Y) = f ( X1, X2, X3, … Xn )
X1 proportion 200 X2 proportion 120 X3 proportion 30
Vital Few
Cause
CTQ (Critical To Quality) = By definition of customers needs / expectations or product function or critical parameter (Spec.).
Six Sigma e-Academy
Six Sigma Process – [4] Improve
Precision & Accuracy
LSL USL
T = m
6s Level !, 3.4 PPM !
Improve
Six Sigma e-Academy
Six Sigma Process – [5] Control
SPC
Desired output Process Capability
Controller
Output PROCESS Input
Samples
Six Sigma e-Academy
Summary
Statistical meaning of Six Sigma
Quality level of Six Sigma
Apply for Six Sigma
- R&D 6s
- Manufacturing 6s
- Transactional 6s
Six Sigma Process
- Define
- Measure
- Analyze
- Improve
- Control
Six Sigma e-Academy
1. Introduction and background of 6s
2. What’s 6s
3rd Day 3. Why 6s, How to Apply ?
Six Sigma Overview
Six Sigma e-Academy
3. Why 6s, How to Apply ?
Why apply 6s ?
Quality & failure cost
Paradigm Shift
Characteristics of Six Sigma
Examples of major Corporation
Key of Success 6s
6s Propulsion System
Six Sigma e-Academy
Why apply 6s ?
Improve underlying problems by detailed investigation and use of correct statistical analysis tools.
Management Overview
Highlight small and
Persistent defects
100 PPM
Using Correct Analysis
Root cause
Improvement
6s
6s is a tool
Based on sound
Statistical theory.
Used software
To support and
Simplify
Statistical
Process.
Six Sigma e-Academy
Quality and Failure Cost
Quality Index Trend*
‘92 ‘94 ‘95 ‘96
* Major product SCV cal rate trend
‘2001
Innovative defect
Improvement activities
100PPM activity
SVC Call rate
(%)
Six Sigma e-Academy
Quality and Failure Cost
“ Current Quality Failure Cost is the tip of the Iceberg ! ”
Inspection
Scrap
Rework
SVC
Failure
Sale damage
Delay
Customer Credit Default
Design change
Long cycle time
Excess Inventory
Business overheads
Reported Failure Costs (Main KPI)
Hidden Failure Costs
(not easily measured)
Six Sigma e-Academy
Paradigm Shift
Old Belief
Internal & External Failure costs
Appraisal & Prevention Costs
Increased Quality Means higher cost
3s
Quality improves
Cost $
To warrant high quality which is dependant upon inspection,
Losses due to rework and scrap will increase.
Six Sigma e-Academy
Paradigm Shift
New Belief
Internal & External Failure costs
Appraisal & Prevention Costs
Increased Quality Reduce Total cost !
3s
Quality improves
Cost $
4s
5s
6s
By designing processes that do not produce defects, it is the
Concept that losses due to scrap and rework will reduce.
Six Sigma e-Academy
6s Characteristics
Why should we apply 6s
Issue Traditional Approach 6s Approach
Index
Data
Target
Range
Method
Action
Application
-% (Defect rate)
- Discrete data
- Satisfied MFG Process
- Spec. outlier
- Experience + Job
- Bottom Up
- MFG Process
- Sigma (s)
- Discrete + Continuous data
- Customer Satisfaction
- Variation Improvement
- Experience + Job + Statistical ability
- Top Down
- Design, MFG, sales, Svc.
Six Sigma e-Academy
6s Characteristics
Decrease cost of loss, improve quality of product & service, satisfies the customer And clarifies the business output.
6s Benefits & Superiority
Benefits
Superiority Variety of application
3P* Focus and reasonable index for appraisal
High effect of investment
Clarifies effect for cost
Data Driven Mind & easy to use Statistical Tool
* 3P = Product, Process, People
Six Sigma e-Academy
6s Characteristics
6s Benefits ……
• 6s defines common goal Innovation involves all
• Control factors upstream Reduces output loss
• S/W support statistics Statistically foolproof
• Data analysis experiment Clarifies indistinct facts
• Data based decisions Excludes wrong ides
Allows statistics to be applied to all sectors of business giving people access to solve Difficult problem !!!
Six Sigma e-Academy
Major Company present 6s drive
ITEM MOTOROLA TI GE SONY
Introduced 1987 1988 1995 1997
Outcome Q. Cost Down
$ 3.2 billion
Q. Cost Down
1988 : 30 %
1993 : 7.4 %
Q. Cost down
$ 3.8 billion
By year 2000
Trained 2000 Black belts.
Characteristics 6 sigma origin
(Quality level elevated
100 times in 4 years)
First in Japan
Remarks Harmonized Western
& Oriental Culture
Top Down
Quality Training
Consult with
6 Sigma Academy
The vision of Six Sigma (Mikel Harry) / GE Annual Meeting (’98.2)
Six Sigma e-Academy
6s Key for Success
By religious passion about 6s …
“Tripitaka Koreana” “Bible”
Believer Religious Passion
Champion *
- Stretch goal & Vision
Six Sigma Achievement
MBB* -Breakthrough Idea -& Implementation
Must be concerned if cause changes !
Six Sigma e-Academy
6s Key for Success
System
Execute from Top Down
• Assertive direction from CEO.
• Full understanding of process by TCP, provide clear and consistent drive.
Participation by all Functions
• Conduct process redesign of call center, expanding to non manufacturing class without localizing in manufacturing class.
Common measures to make a 6s company
• Execution by common language (CTQ, s, Cp, …) • All levels, target indicated by 6s.
• Presentation of standard of project activity.
Six Sigma e-Academy
6s Key for Success
6 sigma success point
Begin with Voice of Customer
• From customer expectation select CTQ, improve defects which have greatest impact.
Education Program – Practice first
• Learn tools and process through practice and input administration result. • Ensure process is thoroughly understood by all participant.
6s Infrastructure
• Construct infra structure to ensure project success. • construct ion of organic, systematic system. • Evaluation and award system.
Method
Six Sigma e-Academy
6s Propulsion System
Champion - Formation, responsible for business unit - Establish vision - 6s activity drive - Involvement - Project support
MBB (Master Black Belt)
- 6s group target achievement - 6s specialist
Project Leader
- BB (Black Belt) : Technical Leader - GB (Green Belt) : 6s Tool applicable person
- Project execution
Guidance, support
Support request
Champion
Review
Champion review : Manage by Champion, progress reviewed step by
step, make decision regarding ideas.
Six Sigma e-Academy
6s Propulsion System
Champion
Define
- Person responsible For business unit performance
Role
Establishment of Vision
• 6s target presentation of middle and short term goal. • Theme setting and presentation of overview of activity. • Project direction and target presentation.
6s Activity Drive
• Continuous activity drive through strong commitment. • Result verification and transmission with MBB.
Involvement
• Monitoring and support through champion Review. • Overcome barriers in achievement of 6s result.
Project Support
• Active support at each level of improvement. • Investment decision and resource allocation.
• Encourage follow up improved result and control activity, motivation for acceptance of ownership.
Ownership of 6s execution and involvement in project activity are very important.
Six Sigma e-Academy
MBB (Master Black Belt)
6s Propulsion System
Define
- 6s Technical leader
- 6s as full time Job
- MBB selected by champion
after completion of MBB
course, or person holding
equivalent qualification.
Role
Skill Transmitting
• Provide guidance for 6s propulsion and is qualified. • With technical background, skill transmission and level up
• Share successful points.
6s Result Drive
• Project check at each level/stage • Feedback to champion project progress and result status. • Verify fidelity of result.
Project Guidance / Support
• 6s education BB/GB guidance. • Assist in solution for barrier issues. • Manage so that improved condition is maintained.
Capable MBB choice and continuous Skill Up is very important.
Six Sigma e-Academy
6s Propulsion System
Belt System
Belt Brief Role
Master Black Belt - 6s technical leader
- Technical background transmit skill
- BB/GB guidance
- Project completion drive
- Verification of result
- Education
Black Belt - Full time project work
to resolve neck issues.
- Project execution
- Improvement Team Leader
- Team member, tool education
Green Belt - Part time project work
to resolve neck issues.
- Project execution
- Improvement team
leader
Six Sigma e-Academy
Summary
Quality and Failure Cost
Paradigm shift
Features of 6 Sigma
Success points for 6 Sigma
- System
- Methods
6 Sigma Propulsion
- Champion, MBB, BB, GB
- Belt System.
