10b. Six Sigma Notes

MEE3014 Manufacturing 3 - Module 10B: Introduction to Six Sigma

Introduction to Six Sigma

  • Instructors:
    • Dr. Arfauz A Rahman (arfauz.arahman@qub.ac.uk, Ashby Room 6.18)
    • Prof. Yan Jin (Coordinator) (y.jin@qub.ac.uk, Ashby Room 5.18)

What is Six Sigma?

  • Coined by Bill Smith, an engineer with Motorola, in the late 1970s.
  • Motorola started experimenting with problem-solving through statistical analysis.
  • Motorola officially launched its Six Sigma program in 1987.
  • Sigma (σ):
    • Greek symbol used in statistics to represent standard deviation from the mean value.
    • Indicates the degree of variation in a process.
    • Measures how far a process deviates from perfection; higher sigma capability means better performance.

Six Sigma Defined

  • A highly disciplined process that enables organizations to deliver nearly perfect products and services.
  • The "figure of six" is statistically derived from the current average maturity of most business enterprises.
  • Six Sigma:
    • A philosophy and a goal: to be as perfect as practically possible.
    • A methodology and a symbol of quality.
  • A statistical concept that measures a process in terms of defects.
  • At the six sigma level, there are 3.4 defects per million opportunities.

What Six Sigma is NOT

  • A standard or certification.
  • Another metric like percentage.
  • It is a Quality Philosophy:
    • A way of improving performance by knowing where you are and where you could be.
    • A methodology to measure and improve a company’s performance (practices and systems).
  • Emerged as a natural evolution in business to increase profit by eliminating defects.
  • Business environment demands and rewards innovation more than ever due to:
    • Customer expectations.
    • Technological change.
    • Global competition.
    • Market fragmentation.

Sigma Levels and Defects

Sigma Level (Process Capability)Defects per Million Opportunities (DPMO)Bad % = (DPMO / 1,000,000) * 100%Good % (Process Yield) = (100% - bad %)
1691,46269.15%30.85%
2308,53830.85%69.15%
366,8076.68%93.32%
46,2100.62%99.38%
52330.023%99.977%
63.40.0034%99.99966%

Companies Using Six Sigma

  • Six Sigma is used in virtually all industries around the world.
  • Examples:
    • Motorola
    • Ericsson
    • General Electric
    • Sony
    • Ford Motor Co.
    • CITI bank

Six Sigma Methodology

  • "It takes money to save money."
  • BPMS (Business Process Management System)
  • DMAIC (Define, Measure, Analyze, Improve, Control)
    • Six Sigma improvement methodology.
  • DMADV (Define, Measure, Analyze, Design, Verify)
    • Creating a new process that will perform at Six Sigma.

BPMS (Business Process Management System)

  • BPMS strategies emphasize process improvement and automation to derive performance.
  • Combining BPMS strategies with Six Sigma is the most powerful way to improve performance.
  • Both strategies are not mutually exclusive, and some companies have produced dramatic results by combining them.

DMAIC and DMADV

  • DMAIC:
    • A logical and structured approach to problem-solving and process improvement.
    • An iterative process: continuous improvement.
    • A quality tool that focuses on changing management style.
    • Steps:
      • Define: Define specific goals to achieve outcomes (consistent with customer demand and business strategy).
      • Measure: Measure reduction of defects.
      • Analyze: Analyze problems (cause and effects must be considered).
      • Improve: Improve process (based on measurements and analysis).
      • Control: Control process to minimize defects.
  • DMADV:
    • An acronym for:
      • Define project.
      • Measure opportunity.
      • Analyze process options.
      • Design process.
      • Verify performance.

When to Use Six Sigma

  • The usage of Six Sigma depends on the type of business.
  • If there are processes that generate a lot of negative customer feedback (whether that customer is internal or external), the components of Six Sigma should be considered as a means to study and rectify the problem.

Benefits of Six Sigma

  • Generates sustained success.
  • Sets performance goals for everyone.
  • Enhances value for customers.
  • Accelerates rate of improvement.
  • Promotes learning across boundaries.
  • Executes strategic change.

Six Sigma Management

  • When practiced as a management system, Six Sigma is a high-performance system for executing business strategy.
  • Six Sigma is a top-down solution to help organizations:
    • Align their business strategy.
    • Mobilize teams to achieve high-impact projects.
    • Accelerate improved business results.
    • Govern efforts to ensure improvements are sustained.
  • Six Sigma identifies several key roles for its successful implementation:
    • Executive leadership.
    • Champions.
    • Master Black Belts (Identify projects & functions).
    • Black Belts (Identify non-value-added activities).
    • Green Belts (work on small projects).

Conclusions for Six Sigma

  • Six Sigma is a methodology used for:
    • Aligning key business processes to achieve requirements.
    • Utilizing rigorous data analysis to minimize data variation in those processes.
    • Driving rapid and sustainable improvement to business processes.