Six Sigma-1 it includes real world example.pptx

Six Sigma-1 it includes real world example.pptx

1. Six Sigma

2. Six sigma  Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. Six Sigma is a set of techniques developed and used to ensure process improvement and consistent output in manufacturing. Originally developed by Motorola in 1986 To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities.

3. Real world examples According to the National Oceanic and Atmospheric Administration, air traffic controllers in the United States handle 28,537 commercial flights daily. In a year, that is approximately 10.416 million flights. Based on a Five Sigma air traffic control process, errors of some type occur in the process for handling approximately 2,426 flights every year. With a Six Sigma process, that risk drops to 35.41 errors. The CDC reports that approximately 51.4 million surgeries are performed in the United States in a given year. Based on a 99.97 accuracy rate, doctors would make errors in 11,976 surgeries each year, or 230 surgeries a week. At Six Sigma, that drops to approximately 174 errors a year for the entire country, or just over 3 errors each week. At Five Sigma, patients are 68 times more likely to experience an error at the hands of medical providers. Consider an example based on Amazon shipments. On Cyber Monday in 2013, Amazon processed a whopping 36.8 million orders

4. Six sigma methodology The DMAIC methodology has five phases: D efine  the problem, customer and their requirements, and the project goals. M easure  key aspects of the current process and collect relevant data; A nalyze  the data to investigate and verify cause-and-effect relationships. Seek out root cause of the defect under investigation. I mprove  or optimize the current process based upon data analysis using various techniques C ontrol  the future state process to ensure that any deviations from the target are corrected before they result in defects. Implement control systems such as statistical process control

5. Six Sigma sub-methodologies Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.

6. Techniques used in Six Sigma

7. Six Sigma tools 7QC tools Affinity Diagram Benchmarking FMEA SIPOC Gantt chart etc.

8. Common Principles of Six Sigma Customer Focused Improvement: through VOC , VSM Continuous Process Improvement Focus on variation : eg due to using different measuring scale, Heterogeneous nature of service Removing waste Equipping people Focuses on Controlling the process

9. Basic Metrics used in Six Sigma Defects per million opportunities (DPMO) =( number of defects in a sample/opportunities for a defect in the sample) * 1,000,000 For example, if a mail-order retailer examines quality of the order process, it might sample forms entered by customer service representatives. If each form has 10 fields, then there are 10 opportunities for an error on each form. If the retailer reviews 90 forms, then there are 10 * 90, or 900, total opportunities for errors. During the review, the retailer finds 2 errors, or defects. To calculate DPMO, the math would be as follows: (2/900) * 1,000,000 = 2,222 defects per million opportunities.

10. Defects per unit (DPU) DPU is a measure of how many defects there are in relation to the number of units tested. DPU is concerned with total defects, and one unit could have more than one defect. The formula for DPU is:
Number of defects found / number of units in the sample For example, if a publisher printed 1,000 pages and pulled out 50 units that may contain defects of binding, alignment, misprinting in total as 12, then DPU= 12/50

11. First Time Yield (FTY) First time yield is the ratio of units produced to units attempted to produce. For example, if you put 12 cookies in the oven, but only 10 come out edible, then you haven’t produced 12 cookies.
The formula for FTY is: Number of good units produced / number of units entering the process Most products or services are created via multiple processes; you multiply the FTY for each process to calculate an overall FTY.

12. Rolled Throughput Yield (RTY) The rolled throughput yield, or RTY, provides a probability that a unit will be generated by a process with no defects. One of the main differences between RTY and basic yield or first time yield is that RTY considers whether rework was needed to generate the number of final units. This is a valuable concern, because organizations don’t always think about the rework that is inherent in a process, which means they often measure a process and deem it successful even if muda is present The formula is: (Number of units entering – (scrap + rework))/number of units entering process

13. Challenges of Six Sigma Lack of Support Lack of resources and knowledge Poor project execution Data access issues Concern about using six Sigma in particular industry

14. Requirement to implement Six sigma Executive leaders who are committed to Six sigma Corporate wide training in Six sigma concepts Setting of objectives for improvement Continuous reinforcement and rewards