Introduction to Six Sigma

Introduction to
SIX SIGMA
Facilitator: Khan Mohd. Ibrahim
Industrial Engineer &
Six Sigma Black Belt
Overview: Module # 1
The Helicopter View

Hello!
This is
Khan Ibrahim
You can find me at:
ibrahim.ipe06@gmail.com
This presentation is for the
personnel who are going to be a part
of Six Sigma project as team member
& need to know the basics.
The scope of this presentation is
“Overview” & “Define” of Six Sigma.
Name: Khan Md. Ibrahim
Profession: Industrial Engineer
Company: A & E Bangladesh

What do martial arts
have to do with my
job?
BLACK
Belt??
Thousands of
dollars $$
savings??

What is Six Sigma?
A process improvement methodology
Developed by Mikel Harry & Richard
Schroeder of Motorola in 1980’s
Focuses to deliver near-perfect
products & services
First time right of 99.9997% quality

A story from Japan
▷ “We will only accept 3
defective parts per 10,000”
---- IBM
▷ “The 3 defective parts have
been separately manufactured
and have been included in the
consignment”
------ Japanese
Company

How does it improve ?
▷ A statistical measure of
the process performance
▷A goal that reaches near
perfection
▷A system of management
to achieve & sustain the
goal

Problem- Eat the Elephant
Eat the
Elephant
Employee Elephant
Boss

“
Henry Ford
Founder of Ford Motor

Six Sigma Approach
▷Proceeds through small-
small projects
▷3-6 months timeline per
project
▷Very precise area of
work in each project

Six Sigma Learning Curve
White Belt
- 1 day
workshop
Yellow Belt
- 2 to 3 days
workshop
Green Belt
- 4 to 6 weeks
workshop
Black Belt
- In depth
training of SS

Six Sigma…. Wait ... Six What??
What does that
“Sigma” mean?

Sigma
▷ Sigma is a Greek alphabet
▷Statistics- It stands for
“Standard Deviation”
▷Statistics- It depicts
deviation from target in a
specific process

99.9% Quality
WHOA! THAT’S A BIG NUMBER, AREN’T WE PROUD?

Why not 99.9% Quality?
1 hour of unsafe drinking water every month

2 long or short landing at every American
Airport each day

400 letters per hour which never arrive at
their destination

500 incorrect surgical operations each week

3000 newborns accidentally falling from the
hands of nurses or doctors every year

4000 incorrect drug prescriptions per year

22,000 checks deducted from the wrong
bank account each year

Six Sigma Quality
▷Only 3.4 defects per million
opportunities
▷Sigma level of 6 is difficult to
achieve
▷Sigma level for Manufacturing
companies is 2 – 4
▷Sigma level for Service
companies is 3 -4

Six Sigma Indicators
▷Defects per Unit (DPU)
▷Defects per Million
Opportunities (DPMO)
▷Sigma Level

Defects vs. Defectives
▷‘Defect’- A single non-
conforming quality
characteristics
▷‘Defectives’- items having
one or more defects
▷3 defects in 1 defective item
1 Defective item
1. Weight in-accurate
2. Inner diameter wrong
3. Surface finish poor

Introduction to
SIX SIGMA
Roles and Phases

Process Owner: Roles
1
• Functionally responsible for an
area of the project
2 • Help to lead the culture change
3
• Provide and support team
members for the project
4
• Implement and Own the solution
provided by the Black belts /
Green belts
5
• Carry the torch after the
completion of the project

Team Member: Roles
1
• Receive training on
basic Six sigma tools
2
• Helps in data
collection
3
• Supply the team with
process Expertise

Six Sigma: Phases of a Project

Phase: Define
▷Identify problems
▷Define project
▷Select Black Belt/ Green Belt
▷Select Team Member
▷Estimate Financial Impact
Define

Phase: Measure
▷Map the process
▷Identify inputs & outputs
▷Identify opportunity of failures
▷Analyze measurement system
▷Establish baseline capability
Measure

Phase: Analyze
▷Identify factors
▷Hypothesis Testing
▷Graphical & Statistical
analysis to identify critical
factors
Analyze

Phase: Improve
▷Factorial Designs
▷Identify Interactions
▷Define Y = f(x)
Improve

Phase: Control
▷Optimize outputs
▷Implement Control Plan
▷Project Closure
Control

Introduction to
SIX SIGMA
Basic Statistics

What is a Statistic?
▷ Data sample

Population vs. Sample
▷Population: includes all
members of a defined
group
▷Sample: Sample is a
proportion of a
population, a slice of it
Sample
Population

What to measure?
▷Mean (µ): Weighted average
of the measurement
▷Standard Deviation (σ):
Statistical measure of
variation from mean

“
Jack Welch
CEO of General Electric
“Variation is Evil”

Types of variations
Variations
Common
Cause
Variation
Special
Cause
Variation

Introduction to
SIX SIGMA
Data Collection & Sampling

“
Mark Twain
American Author
“Data is like garbage.”
“You’d better know what are you going
to do with it before you collect it”

Data Collection System
Obtain
Data
(Collect data
needed to answer
the question )
Analyze
Method
(Define tools
needed to
graphs/analyze
the data)
Question
(Determine
what questions
needs to be
answered)

Types of Data
Data
Qualitative
Attribute
Male, Female
Quantitative
Discrete
1, 2, 3, 4, etc.
Continuous
2.3, 4.5, 2.7, etc.

History of Sampling
▷ US Millitary in1934 on the eve of WWII

Why do we need sampling?
▷Study a large population
▷Sampling is for speed
▷Sampling saves the
source of data from being
all consumed
▷Sampling is for economy

Introduction to
SIX SIGMA
Scoping Tools

What is a project’s scope?
▷ Project's scope explains
the boundaries of the
project
▷Scope is defined by
cascading a business
problem into a very concise
project idea through the
scoping tools

Scoping Tools
▷ Quantitative
Pareto Chart
▷ Qualitative
Cause & Effect Diagram
5 Why Analysis
Affinity Diagram

Pareto Chart- Pareto Principle
▷ Vilfredo Pareto- an
Italian civil engineer
▷ 80% of land in Italy
belongs to 20% people

▷Kauro Ishikawa- Kawasaki
Shipyard in 1960
▷Effects are reasoned under
6Ms
▷Man, Machine, Method,
Material, Measurement &
Mother Nature (Environment)

Environment

▷Man: Anyone involved with the
process
▷Methods: How the process is performed
and the specific requirements
for doing it
▷Machines: Any equipment or tools
required to accomplish the job
▷Materials: Raw materials used to produce
the final product
▷Measurements: Data generated from the
process that are used to
evaluate its quality

Affinity Diagram
▷Get ideas from
cross-functional
teams

Introduction to
SIX SIGMA
Project Definition WorkSheet

1. Describe the Business Problem
2. Scoping for a project opportunity
3. Define Project Matrix and Objectives
4. Quantify Financial Impact
5. Assign Team Members
6. Launch Project
Project Definition Steps

Scoping for a project opportunity
Question Description
Output What is the Tangible output (Product or Service), related to the specific
business problem
Process What Is the Process which Is delivering the product or Service
Number of
Processes
How many processes are involved in delivering the Product or Service
– (if there are more than two, the Problem is too broad and a scoping
sessions needs to be executed in order to bring it down to ONE)
High level Macro
Map
Develop a High level Macro Map illustrating the main steps of the
process
Measurable Process
Characteristics
Name the product or service features (or measureable process
characteristics) that will help to improve the problem. If more than two
features are identified, the scope of the project may be too broad.

Tangible Output
The Product or Service Delivered to the Customer in terms of an
Output
E.g.: Output
Process
High level process or departmental function
E.g.: Supply Chain, Sewing, Cutting, Planning, Finance
High level Macro
Map
Process Map illustrating the macro process steps of a certain process
Jargon & Terminology

Define Project Metric & Objectives
Defect What is wrong with each feature named above (i.e., what is the
defect?)
Primary Metric Name the Primary Metric(s) that measure the identified defect(s). The
Primary Metric should measure performance directly from the process.
It will be the yardstick for tracking success of the project.
Consequential Metric List any Consequential Metrics measuring potential negative effects of
successfully improving the Primary Metric.
Baseline Estimate the Baseline performance level for each Primary Metric.
Entitlement /
Benchmark
Estimate the Entitlement and/or Benchmark for each Primary Metric.
Objective Statement Compose an Objective Statement as follows: Improve <primary
metric> from <baseline level> to <target level> by <timeframe>.
Source of Data Identify which Sources of Data (reports, collection sheets, inspection
points, etc) are available to measure the metrics listed.

Defect Define what is non conformance
Primary Metric The Key Performance Indicator or the key PROJECT FOCUS which
will be approached in order to solve the specific Business Problem
E.g.: Efficiency, Raw Material Wastage, Manufacturing Lead Time
Consequential Metric E.g.:
Primary Metric -Wastage,
Consequential Metric – Shortages

Quantify Financial Impact
Finance
Representative
Who is the Finance Representative (provide name) assigned formally or
informally to value the financial impact of this Six Sigma project?
Cost Centers List any potential Cost Centers that will likely be impacted by reducing
the defect or improving the primary metric defined earlier.
Financial Metric List the Financial Metric(s) that will be used to track the improvement of
the primary metric in dollars.
Original Forecast Complete the Original Forecast(s) (with 80% confidence) with the
finance representative.

Cost Centers The Cost which is incurred in terms Prevention (Controls, Training) or
Rework (Correction )
Financial Metric The Financial Impact of the Primary Metric
E.g.: Improvement of 1% of Wastage = Rs. 10,000 a month

Introduction to Six Sigma

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