Project Selection
Six Sigma is executed through projects and since Six Sigma is very precise, it’s often better to start with smaller projects that have limited scope as opposed to large, organizational wide projects that are too difficult to manage. Additionally, projects need to have some justification behind being selected. So inworld of Six Sigma, it is very common to see a series of toll-gates or a formal business case to justifyproject. For example, projects will consume resources and time. There needs to be a clear payoff or return for doingproject. Additionally, it is useful to clearly defineexpected impact of projects and match these impacts against critical issues confrontingorganization. For example, a high level of customer complaints or product returns is a critical issue that might be ripe for a Six Sigma type project.Five Phases - DMAIC
life cycle of six sigma work consists of five phases:1. Define Opportunities: What must we do to meet VOC - Voice ofCustomer. In this phase, you must clearly identify your customers and analyze customer related information, translating this into Critical to Quality (CTQ). CTQ’s are requirements that your processes must perform up to if you expect to meet customer expectations. Once you understand this, then you can initiate six sigma projects to addressspecific performance issues.
2. Measure Performance: How much variation is taking place in our processes? In this phase, you will measure your variation in relation to an acceptable level of performance or specification limit. This is driven bycharacteristics of your CTQ. Certain statistical tools are used, such as sampling, frequency distribution, and control charts.
3. Analyze Opportunities: What areroot causes behind this variation? In this phase, you identifysources of variation. A good place to start is with a nonstatistical tool: Root Cause Analysis, includingFive Whys. Then you can begin to use certain statistical tools, such as Analysis of Variance, to better understandsources of process variation.
4. Improve Performance: What can we do to reduce this variation? vital few or root sources of variation are now identified. One ofmore popular tools used for improvement is called Design of Experiments (DOE).
5. Control Performance: How can we designprocess so that we never crossUpper or Lower Control Limits? This is where you sustain your desired performance levels and where practical, seek to improve it by removing more variation fromprocess.
The Basics
Sigma is a statistical measure of process capability in relation to how much deviation takes place inpopulation of data. It measuresvariability of For various processes, we set targets which we will call "critical to" such as Critical to Quality (CTQ). This might be making pizzas in our pizza restaurant that are produced in 8 minutes. Each time we bake a pizza, there is some variation from this target of 8 minutes. If we plot each of these bake times, we can showdistribution on a graph. Additionally, our customers are willing to accept pizzas baked in 10 minutes, but likewise it takes us at least 6 minutes to put allingredients together for bakingpizza. These limits represent
CTQ and VOC
Critical to Quality is customer driven and so we have to tap intocustomer to understand our requirements (CTQ). Six Sigma (as well as lean) requires that you are listening to1. Provide a 100% solution tocustomer’s problem.
2. Minimal effort involved - not wastingcustomer’s time and efforts.
3. Giving
4. Provide
5. Provide
6. Compressdecision making process for
This is perhaps one ofbiggest reasons why Six Sigma and Lean have become so popular - bar has been raised in terms of customer satisfaction. Additionally, any variation from
"There is a parable of
The Six Sigma Equation
Six Sigma begins with a simple equation that says - All outcomes areresult of inputs and process that acts on these inputs may introduce errors. Errors create variation and in Y = f (X) + E
Y: Desired outcome
f: Activities and Functions that convert inputs to outcomes
X: Inputs that are needed to producedesired outcome
E: Errors
If we go back to our pizza example, we bake pizzas with different outcomes or Y’s. Several different inputs are required before we can bakepizza - preparing
Statistical Concepts
One ofattractions behind Six Sigma has to do with statistics. Statistics removes much of subjectivity that often plagues other forms of analysis. Opinions and speculation are replaced by applying statistical concepts to data. Some of these statistical concepts include:1. Mean and Standard Deviation: Expressing process performance begins with
a. Calculatedifference from
b. Take square of each difference.
c. Sum all of your square values and divide by
d. Takesquare root of your value from step c (variance). This gives you
Let’s go back to our pizza example. Suppose we made 6 observations of how long it takes to bake pizza. Our upper control limit is 8 minutes; i.e. we don’t want to take more than 8 minutes to bake pizzas. results of our six observations are:
2. Sigma Value: After calculatingMean and Standard Deviation, you need to express this performance related to CTQ - customer requirements. This is done by calculating
3. t test: Since we use samples to represent populations, we will most likely not know
4. F test: We may want to take samples from different segments ofpopulation, such as sampling only cheese pizzas, then sampling deluxe pizzas to see if this yields different results. You can use
5. ANOVA: Used to conduct hypothesis testing when you have two or more groups of data. Like
Design of Experiments (DOE)
number of inputs can be numerous (people, materials, equipment, technology, practices, methods, applications, etc.), making our six sigma equation look like:Y = f (X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, X11, X12, X13, X14, X15, X16, X17, X18, X19, X20)
What we really need to do is find out which of these inputs (X) is havingmost influence on our outcome (Y). By focusing on
1. Factors: possible X’s in our equation
2. Levels: range of values for each factor
3. Main Effects: change in Y from our experiment as we change our factor (X) from
Factors areindependent variable and we want to quantify
Each combination is an equation, contained within a matrix for all factors in our experiment. In order to getmost information, a full matrix is needed which contains all possible combinations of factors and levels. If this creates too many experimental runs, fractions ofmatrix can be taken.
"Probably few people know exactly what is meant by quality. Quality actually has different dimensions, which are all considered by consumers purchasing products. Although we as consumers may not know precisely what we mean by quality, we all recognize quality when we see it." -
Design for Six Sigma
"DMAIC" approach to Six Sigma seeks to improve existing processes. However, this is only half of six sigma management process. other half is to design and develop new processes to improve how we meet customer expectations. This is called Design for Six Sigma (DFSS). DFSS is used under two circumstances: Existing processes cannot be improved or a process to meet CTQ does not exist. Some oftools used in DFSS type projects include:1. Quality Function Deployment (QFD): A methodology for identifying and categorizing customer requirements into a matrix. matrix prioritizes customer expectations on a scale from 1 (least important) to 5 (most important). Causeeffect requirements are also ranked; i.e. what is
2. Failure Mode Effects Analysis (FMEA): Analytical approach directed toward problem prevention through which every possible failure mode is identified and risk rated. basic steps for FMEA are:
a. Identify various failure modes (spoiled materials, labor input mistakes, flawed method, equipment failure, etc.)
b. Identifyeffects
c. Determine
d. Identify causes
e. Determine
f. Assess current control processes in place
g. Evaluateability to detect
h. Assign a risk rating (A x B x C) relative to:
A: Severity of Impact - On a scale of 1 to 10, rateseriousness of
B: Probability of Occurrence - likelihood that a cause and failure mode will occur with 10 as failure is certain and 1 is highly unlikely.
C: Ability to Detect - Rating your ability to detectfailure mode before putting
i. Take corrective actions on those failure modes with high risk ratings. results of your FMEA can be summarized on a worksheet.
3. Poka Yoke: Mistake proofing a product or service. Errors lead to defects and if you can catch
"A very few American companies are counted amongworld-class leaders in quality management. But thousands upon thousands of other companies have yet to take that all important first step to ensure their products and services deliver to each customer a dependable high level of quality.
- Quality in America: How to Implement a Competitive Quality Program by V. Daniel Hunt
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