Six Sigma in Total Quality Management (TQM)

629 views 14 slides Sep 17, 2024
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About This Presentation

Principles of Six Sigma, DMAIC Methodology, Six Sigma Levels (Sigma Levels), Six Sigma Curve, Process Capability in Six Sigma


Slide Content

Six Sigma

Six Sigma is a data-driven methodology focused on improving quality by identifying and eliminating defects, reducing variability, and improving processes. The ultimate goal is to achieve near-perfect performance, with a defect rate of no more than 3.4 defects per million opportunities (DPMO). Six Sigma combines statistical tools with management techniques to improve the efficiency and effectiveness of business processes. The term "Six Sigma" refers to the goal of operating within six standard deviations (sigma) from the mean in a normal distribution, ensuring that the process is nearly defect-free.

Principles of Six Sigma: Customer Focus : Understanding customer needs and expectations is central to Six Sigma. Data-Driven Decision Making : Decisions are based on measurable data and statistical analysis rather than intuition or assumptions. Process Improvement : Emphasizes the continuous improvement of processes to reduce variability and enhance quality. Team Collaboration : Cross-functional teams are used to identify problems and implement solutions. Defect Reduction : A defect is defined as anything that does not meet customer requirements. Six Sigma strives to minimize these defects. Variation Control : Reducing variability in processes is a core principle, ensuring consistency and predictability in outcomes.

DMAIC Methodology: Six Sigma projects typically follow the DMAIC cycle, a structured, five-step process: Define : Identify the problem, project goals, and customer requirements. Define what needs improvement. Tools: Project charters, Voice of the Customer (VOC), SIPOC diagrams. Measure : Collect data to understand current performance and quantify the problem. Establish baseline metrics. Tools: Process maps, check sheets, measurement systems analysis, data collection plans.

Analyze : Identify root causes of defects or issues through data analysis. Determine where and why defects occur. Tools: Cause-and-effect diagrams, Pareto charts, regression analysis, hypothesis testing. Improve : Develop and implement solutions to address root causes. Pilot the improvements and measure their impact. Tools: Brainstorming, design of experiments (DOE), mistake-proofing ( poka -yoke), simulations. Control : Monitor the process to ensure the improvements are sustained. Standardize the changes and implement control systems. Tools: Control charts, process control plans, statistical process control (SPC). Cont.

Six Sigma Levels (Sigma Levels): Each Sigma level represents a specific process capability or performance level: 1 Sigma : 690,000 defects per million opportunities (DPMO) or 31% defect rate. 2 Sigma : 308,000 DPMO or 69% defect rate. 3 Sigma : 66,800 DPMO or 93.3% defect rate. 4 Sigma : 6,210 DPMO or 99.38% defect rate. 5 Sigma : 230 DPMO or 99.977% defect rate. 6 Sigma : 3.4 DPMO or 99.99966% defect rate. Achieving Six Sigma means a process is so well-controlled that defects are almost non-existent.

Six Sigma Curve:

Elements of the Diagram: Bell Curve (Normal Distribution) : The diagram represents a bell curve, which is a normal distribution of a process's output. The highest point of the curve represents the mean or the average value of the process, where the majority of the process outcomes occur. Mean (Center of the Curve) : The center vertical line represents the mean , or the average output of the process. In a highly capable process, the mean should be centered between the Lower Specification Limit (LSL) and Upper Specification Limit (USL) . Cont.

Six Sigma Levels (-6σ to +6σ) : The horizontal axis shows the number of standard deviations (σ) from the mean. The goal of Six Sigma is to have process outputs within ±6σ from the mean, meaning the process should stay within these limits most of the time. Lower Specification Limit (LSL) and Upper Specification Limit (USL) : These vertical lines on the far left and right represent the acceptable range of process outputs, which are defined by customer requirements or industry standards. Outputs that fall outside these limits are considered defects. Cont.

3.4 Defects per Million Opportunities (DPMO) : The small areas on both sides of the curve (beyond the LSL and USL) represent the probability of defects. In a Six Sigma process, only 3.4 defects per million opportunities occur. This corresponds to a process that operates with 99.997% defect-free performance. 99.997% Defect-Free Zone : The central portion of the curve, from -6σ to +6σ, indicates that 99.997% of the process outcomes fall within the specification limits, meaning the process is nearly defect-free. Cont.

Process Capability in Six Sigma: Process capability refers to the ability of a process to consistently produce products or services that meet specifications. It measures how well the process performs in relation to customer requirements. Key measures of process capability include: Cp (Process Capability Index) : Measures a process's potential to produce output within specification limits, assuming the process is centered. Where: USL = Upper Specification Limit. LSL = Lower Specification Limit. σ\ sigma σ = Process standard deviation. Cp value interpretation: Cp < 1 : Process is not capable; too much variation. Cp = 1 : Process meets specifications but has no room for error. Cp > 1 : Process is capable, with less variation than required by specifications.

Cpk (Process Capability Index with Centering) : Measures how well the process is centered within the specification limits. Where: μ= Process mean. Cpk value interpretation: Cpk < 1 : Process is not capable; too much variation or off-center. Cpk = 1 : Process is barely meeting specifications. Cpk > 1 : Process is capable and well within specification limits. Cont.

Importance of Process Capability: Assures Quality : If a process has high capability (Cp or Cpk > 1), it consistently meets customer specifications, leading to fewer defects and higher quality. Reduces Waste : A capable process reduces waste, rework, and scrap by producing products that meet specifications on the first try. Predictable Performance : High process capability ensures that processes perform predictably and consistently, leading to stable outcomes. Continuous Improvement : Understanding process capability helps organizations identify areas for improvement and apply Six Sigma methodologies to further optimize performance. Cont.

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