Six Sigma Tools and Techniques

Six Sigma Tools and Techniques

1. 1
Six Sigma






Page 1
What is 6 activity?
1. What are the statistics ?
2. Solution of the Practical Problem
3. What is the 6concept ?
4. 6 as the Business Strategy
5. 6 Application
6. 6 Activity Process
7. Comparing other tools
8. 6 Philosophy

Page 2
Low
Spec
High
Spec
VARIATION is the enemy!

"Always know the language of the enemy."
WORLD CLASS QUALITY
Providing a
BETTER product or service,
FASTER, and
at a LOWER COST
than our competition.
Originally: Metric Based on the Statistical Measure Called
Standard Deviation

Expanded To:
What is Six Sigma?

Page 3
1. What are the statistics ?
◆ Population & Sample
Sample
Population
N ＝ 1,000
Measure 10 samples
(Spec. : 100±4)
○ You may say “ This Population is Good because all the sample’s data are located
between LSL & USL. BUT, If you estimate the defect rate using statistical analysis,
this population has the probability of 2.8% defects per unit.
Then this is - we call - “An epidemic” quality defect level.
○ Measuring defect rate on process through an expanding statistical concept,
we can use measuring process capability.
Ⅹ
Ⅹ
Ⅹ
Ⅹ
Ⅹ Ⅹ
Ⅹ
Ⅹ Ⅹ
Ⅹ
USL
(Upper
Spec
Limit)
LSL
(Lower
Spec
Limit)
What is 6 activity?
96 97 98 99 100 104 101 102 103
Total inspection is
impossible !
Statistical variables
(mean, variance)
estimate population

Page 4
μ
USL USL
T
μ
USL USL
T
USL USL
T
μ
Precise but not Accurate
Accurate but not Precise
Shifting to Target &
Reducing Variation
Shift to

Target
Reducing
Variation
2. Solution of the Practical Problem . What is 6 activity?
Object
of 6 is

Shift to
Target

Reducing
variation

Page 5
Center of Process:
Process Variance:
Process Standard Deviation: 2

Graphical Meaning of y and  n
)yy(
n
1i
2
i2



 n
y
y
i
n
1i



2. 2

Page 6
Typical Areas under the Normal Curve
68.27%
95.45%
99.73%
99.9937%
99.999943%
99.9999998%
+4 +5 +6 +1 +2 +3 -2 -1 -4 -3 -6 -5 0
Graphical View of Variation and
Six Sigma Performance

Page 7
VARIATION: COMMON AND SPECIAL CAUSES
PIECES VARY FROM EACH OTHER:
BUT THEY FORM A PATTERN THAT, IF STABLE, IS CALLED A DISTRIBUTION:
DISTRIBUTIONS CAN DIFFER IN:
SIZE SIZE SIZE
SIZE SIZE SIZE SIZE
SIZE SIZE SIZE
LOCATION SPREAD SHAPE
. . . OR ANY COMBINATION OF THESE
Normal Distribution
Each unit of measure is a numerical value on a continuous scale.
Graphical View of Variation
and Six Sigma Performance

Page 8
6 Quality means that area
of the estimated normal
distribution is located between
USL&LSL with 6 .

In that case area of
the outlier spec.
(In other words estimated
defects) is just 3.4 PPM.
 : Standard Deviation Statistic index measures how much is data apart from target value
3.4ppm
Target USL
LSL
+ 6  - 6 
σ
+ 3  - 3 
σ
6.68%
3. what is the 6 concept ? . What is 6 activity?
Statistical Definition of 6
3σ
6σ

Page 9
6 3.4

5 233

4 6,210

3 66,807

2 308,537
 PPM
• 1 misspelled word in all of the books
contained in a small library

• $340 indebtedness per $100 millions assets

• 1.8 minutes per year
• 1.5 misspelled words per page in a book

• $6.7 millions indebtedness per $100 millions
assets

• 24 days per year
. What is 6 activity?
6 as the Business Strategy
3. what is the 6 concept ?

Page 10
• In all Design, Manufacturing, and SVC processes
• Applying for 6 statistic Tools & Processes
• To find factors causing defects
• Acting the Analysis and Improvement
• Through the Defect Reduction, Increase Yield
& Total Customer Satisfaction
• Management Innovation Tool contributes to
Management Output
Achieving
3.4 PPM
(3.4 Defects Per Million)
What is 6 activity?
PPM : Parts per Million
. What is 6 activity?
6 as the Activity
3. what is the 6 concept ?

Page 11
1. It is a statistical measurement.
2. It is a improvement tool.
• It tells us how good our products, services, and processes really are.
• 6 helps us to establish our course and gauge our pace in the race for total
customer satisfaction.
It‟s a full packaged tool applying to design, manufacturing, sales& SVC.
3. It is a business strategy.
• It can greatly help us gain a competitive edge
• As you improve the σ rating of a process, the product quality improves and costs
go down. Naturally, the customer becomes more satisfied as a result.
4. It is a philosophy.
• This is one of working smarter, not harder.
• Also it makes fewer and fewer mistakes in everything we do.
. What is 6 activity? 4. 6 as the Business Strategy

3. 3

Page 12
• Ground Fruit
• Logic and Intuition
Wall of 3
• Low Hanging Fruit
• Seven Basic Tools
• Bulk of Fruit
• Process Characterization and
Optimization
Fruit-bearing 6
• Sw eet Fruit
• Design for Manufacturability
Wall of 4
Wall of 5
Harvesting the Fruit of 6
Ⅰ. What is 6 activity? 4. 6 as the Business Strategy

Page 13
1. CTQ
2. DPU / DPMO
3. Z Value
4. Process Capability Index
5. Rolled Throughput Yield (RTY)
#. 6 Common term

Page 14
1. CTQ
Definition of CTQ
Customer states as critical to quality
of product, service or process.
Main purpose of CTQ control is selecting
the factors to the most important to customer.
It is not hard to do, but right to do!
☞
Ex.) • Spec. of anything part
• Accuracy and reliability of billing
statements
• Time to repair
• Courteousness
Most CTQ’s are customer-driven,
but risk, economics, and regulation
may drive others.
Typical Tools
• Customer surveys
• Focus Groups Interview
• Customer needs Mapping
• Quality function deployment(QFD)
• Quick Market Intelligence
• Logic Tree
• Pareto Diagram
●
●
#. 6Common term

Page 15
2. DPU / DPMO
Defects Per Unit : Number of defects per unit

→ Judging the process as “No good”, we could not know if it had a defect.
So 6 handling it.

Ex) A Claim report has 10 blanks, 2 blanks are wrong
DPU= Defect / Unit = 2 / 1 = 2
Defects Per Opportunity : Number of defects related opportunities per unit

→ Expanding concept of DPU by opportunities

Ex) A Claim report has 10 blanks, 2 blanks are wrong
2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2
Defect Per Million Opportunities : Value of DPO x 1,000,000,

→ Changing DPO to million unit because 6 uses PPM(Part Per Million) usually

Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000
DPU
DPO
DPMO
#. 6 Common term

Page 16
3. Z Value
Definition of Z Value
It is standard normalized value for various
normal distributions to make easy
statistical analysis.
* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)
** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution
◆
◆
*
**
T=μ
1 
USL LSL
X -T
σ
Z =
Concept of Z Value
☞ In a Process, if six standard deviations are
between spec.(USL, LSL), then we call
“6 level” .

It is good process that has 3.4ppm, that is
3 or 4 defects per million.

Z is ratio value that difference between
X(USL or LSL) and target is divided
stadard deviation ().
That is numeric part of Level.
W hen Z is 6, it is 6 level.
***
*** USL : Upper Spec Limit / LSL : Lower Spec Limit
◆
#. 6 Common term

Page 17
4. Process Capability Index
◆ What is Process Capability?
- W hen the process is stable, it should
be measured by degree of satisfying
limits.

- Computing Cp, Cpk to know
How much mean is shifted and
variation is good.

- Cpk considers shifting mean.

- K value is deference target(T) from
mean.
1σ
process variation
design tolerance
+3σ -3σ +6σ -6σ
Cp =
Design tolerance
Process variation
Cpk = Cp(1-K)

| T-m |
(Upper limit-Lower limit)/2
K =
As Unique capability of the process, reflects uniformity degree of producing product.
Process Capability Index
m T
#. 6Common term

4. 4

Page 18
5. Rolled Throughput Yield
◆ Rolled throughput yield is probability ratio to accept for all processes.
Final
Good
Process
Defect Ratio
Loss by
un-control
Input
Process 1 :
99% Accept ratio
Process2 : 92%
Process3 :
93%
Final
Inspection
: 97%
RTY
Control
Process
defect
ratio
Control
*
* RTY : Rolled Throughput Yield
RTY = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%
Object Productivity elevation through
quality improvement
Apply
Defect of all processes, Equipment
Model Change Loss
Tool 6σ
Method 1person 1Project, Team activity
Added Improvement
for hidden factory
#. 6Common term

Page 19
Pareto Diagram of Effects
(for the factors affecting Process)
Size of
coefficient

(A)

(B)

(C)
Knowledge-gaining Tools
(D)
(E)

Page 20
Process Flow Diagram
Process Step
Output
Decision?
Input
No
Yes
Knowledge-gaining Tools

Page 21
Quality Function Deployment (QFD)
Design
Correlation
Customer Requirements
Design Requirements
Knowledge-gaining Tools

Page 22
Knowledge-gaining Tools
Probability Distributions
Exponential
Parabolic
Normal
Uniform

Page 23
Cause & Effect Diagram
Causes or
Sources of
Variation
Manpower
Methods
Effect or
Response
Machines
Measurement
Miscellaneous
Materials
Knowledge-gaining Tools

5. 5

Page 24
Component
Failure
Mode
Failure
Effect
S Cause O D R “Fool Proof” Plan
Failure Mode and Effect Analysis
S: Severity, O: Occurrence,
D: Detection, R: Risk Priority Number
R = S • O • D
Knowledge-gaining Tools

Page 25
Knowledge-gaining Tools
Scatter Diagram
(from Doralese Blending & Compression Process)
Magnesium Stearate Concentration
Tablet
Hardness

Page 26
Regression Modeling
5 10 15 20
5
10
15
20
x
y = 18 - .65x
y
Knowledge-gaining Tools

Page 27
Control Chart
UCL
CENTERLINE
LCL
Time
y
Knowledge-gaining Tools

Page 28
6. Other terms #. 6Common term
1. QFD - Quality function deployment
2. FMEA - Failure Mode & effect analysis.
3. ANOVA - Analysis of Variance
4. Gage R&R - Gage Repeatability & reproducibility.
5. DOE - Design of experiments.
6. RSM - Response surface methodology
7. DMAIC - Define measure analyse improve control
8. DFR - Design for reliability.

Page 29
1. Quality & Failure Cost
2. Paradigm Shift
3. Character of 6
4. 6 Case Study
Ⅱ. Why should we do 6?

6. 6

Page 30
1. Quality & Failure Rate
* Average of the SVC Defect rate of Home Appliance products
Trend of Quality Index
*
SVC
Defect
Rate
(%)
●
●
● ○
☆
Quality
Innovation
Tool
●
Ⅱ. Why should we do 6?
‘96 ‘97 ‘98 2002 ‘93

Page 31
“Generally controlled F-Cost has small portion considering of Hidden Loss”
Traditional F-Cost
( Easy Definition)
Inspection
Scrap
Rework Reject
SVC
Loss Opp. Sales
Delivery Delay
Brand Image Down
Office Loss Over Storage
Over Rework
Long cycle time
Design Change
Potential(Additional)
F-Cost
(Difficult to measure)
Ⅱ. Why should we do 6? 1. Quality & Failure Rate

Page 32
2. Paradigm Shift
Old Belief New Belief
$ $

Quality Improves
Internal&
External Failure
Costs
Appraisal
& Prevention
Costs
4
Increased Quality
means Higher Cost
4
5
6
$
$

Quality Improves
Internal &
External Failure
Costs
Appraisal
& Prevention
Costs
Increased Quality
reduces Total Cost
Internal Failure : Scrap / Rem ake / Supplier Rew ork
External Failure : Cost to Custom er / W arranty Cost / Com pliant Adjustm ents / Returned Material
Appraisal : Inspection / Test / Quality Audits / Test Equipm ent
Prevention : Quality Planning / Process Planning / Process Control / Training
Ⅱ. Why should we do 6?
Paradigm Shift for Quality
The high quality producer is the low cost producer not expensive.

Page 33
Comparing 6 with 3
The 3  Company The 6  Company
• Spends 15~25%of sales dollars on cost
of failure

• Produces 66,807 ppm opportunities

• Relies on inspection to find defects


• Believes high quality is expensive


• Does not have a disciplined approach
to gather and analyze data

• Benchmarks themselves against their
competition

• Believes 99% is good enough

• Define CTQ’s internally
• Spends 5%of sales dollars on cost of
failure

• Produces 3.4 ppm opportunities

• Relies on capable processes that don’t
produce defects

• Knows that the high quality producer is
the low cost producer

• Use Measure, Analyze, Improve, Control
and Measure, Analyze, Design

• Benchmarks themselves against the best
in the world

• Believes 99% is unacceptable

• Define CTQ’s externally
Ⅱ. Why should we do 6? 2. Paradigm Shift

Page 34
Practical Meaning of “99% Good”
• 20,000 lost articles in mail per hour.

• Unsafe drinking water almost 15 minutes each day

• 5,000 incorrect surgical operations per week

• 2 short or long landings at most major airports each day

• 200,000 wrong drug prescription each year

• No electricity for almost 7 hours each month
4  = 99.38%
Ⅱ. Why should we do 6? 2. Paradigm Shift

Page 35
Traditional Approach 6σ Approach
• %(Defect Rate)

• Discrete Data

• Satisfaction for Mfg
Process
• Spec Outlier

• Experience + Job

• Bottom Up

• Mfg Process
• 

• Discrete + Continuous Data

• Customer Satisfaction

• Variation Improvement

• Experience + Job +
Statistical Ability
• Top Down

• Design, Mfg, Sales, SVC
ISSUE
Index

D a t a

Target

Range

Method

Action

Application
Traditional Quality / 6 Quality Method
Ⅱ. Why should we do 6? 3. Character of 6

7. 7

Page 36
• Pursue common goal
• Control main factors at upstream
• Apply Statistics on all Biz.
• Support Statistics S/W
• Data analysis by experiment
• Make decision base on Data
→ Innovation through all Biz.
→ Reduce claim and rework
→ Easy to access difficult problem
→ Foolproof for statistics
→ Make indistinct facts clear
→ Exclude wrong ideas & prejudice
Good Point of 6
Ⅱ. Why should we do 6? 3. Character of 6

Page 37
Benefits and superiority of 6
Benefits :
Superiority ■ Variety of applications : Can apply all industry include financing Biz.
■ 3P Focus & reasonable index for appraisal
Not only product and service, but also process and quality of human resource
can be clear the goal and status by measuring.
■ High Effect of Investment
No invest on hardware, only on human resources.
■ Clearness of effect for cost
Output can be estimated clearly by financial part take part in which control
cost and benefit form the beginning of project.
■ Data driven mind & easy to use statistics Tool.
Through experimental data analysis indistinct fact can be clear.
Exclude experience and prejudice.
Can handle statistics by the S/W package(Minitab).
Ⅱ. Why should we do 6? 3. Character of 6
- Decrease cost of loss, Improve quality of product and service ,
satisfy the customer
- It can make clear the output of Business.
* 3P : Product, Process, People
*

Page 38
5. 6 Application
• Selecting CTQ to meet customer needs
• Decision reasonable Tolerance
• Guarantee of the CTQ’s capability analysis
• Improvement serious problem using S/W
• Real Time Monitoring system
→ CTQ Control system
• Improvement cycle time and accuracy
• Cost Improvement
Guarantee for the Design completion
in developing stage
Quality assurance in manufacturing
stage
Maximizing for sales & SVC
6 is a tool that applies to all business systems - Design, Manufacturing,
Sales and SVC
Ⅰ. What is 6 activity?
R&D
6
Manufacturing
6
De-
sign
Sales
&SVC
Mfg.
6
Transaction
6
Design
Mfg.
Sales&
SVC

Page 39
C
p: Process Capability Potential (assumes a centered process)
C
pk: Process Capability (takes into consideration a shift in average) 










3
LSLy
or
3
yUSL
minC
pk 



6
LSLUSL
C
p
dpm
45,500
133,600
16,400
6,900
2,700
55
< 1PPM
.0018
<< 1PPB
.67
.5
.8
1.0
.9
1.33
1.67
2.0
3.0
4.5
15.0
7.0
C
p
LSL LCL UCL USL
TARGET
Specification Width
Process Width
Measures of Quality

Page 40
C
P = 2.0
C
PK = 1.5
dpm = 3.4
Formal Definition of a Six Sigma
Capable Process

Page 41
Is It at all cost?  6
2 3 4 5 6 7
Optimal Point
DFSS
Design for six
sigma
Typical
Six Sigma Barrier
Total Cost
Sigma Rating

8. 8

Page 42
There is a correlation between a company's COPQ( cost of
poor quality) and the  rating of its key processes
2 3 4 6
5
10
15
20
30
40
25
35
COPQ (% of Sales)
Sigma Rating
5
Why Six Sigma?

Page 43
Where Does the Cost of Poor Quality
(Waste or Muda) Come From? ...
Internal Failure Costs
External Failure Costs
Appraisal Costs
Prevention Costs
Lost Opportunity Costs

£
The Cost of Poor Quality

Page 44
DEFECT REDUCTION
Note: The ± 1.5 sigma shift is included.
A 4 company will spend >10% of revenue on internal and external
repair
A 6 company will spend <1% of revenue on internal and external repair

>> 100x
Average
Company
“Best in Class”
10
100
10K
1K
100K
Defects / M
66810
6210
233
3.4
3 2
1
4 5 6 7
Sigma
Why Six Sigma?

Page 45
Identify Customer-Driven
CTQ (Critical to Quality)
Characteristics
Identify Key Processes that
cause Defects in a CTQ
Characteristics
For Each Product or
Process CTQ



Measure, Analyze, Improve,
& Control
6is a rigorous analytical
process for solving problem!!!
6. 6 Activity Process Ⅰ. What is 6 activity?
1. Who are your customers?
- Internal / External
2. What do you provide your customers?
3. What is critical to quality for your customers?
1. What are your internal processes for
providing your product or service CTQ‟s to
your customers?
2. Where do defects occur in these processes?
D
• Practical Problem
• Measurement System
• Yield Calculation
•Process Mapping
 Calculation
• Benchmarking
• Pareto Chart & Stratification
• Cause & Effect Diagram
• DOE
• Brainstorming
• Action Workout Techniques
• Piloting
• Control Mechanism
• Control Chart
• Procedures
M
A
I
C
6 Activity Process(manufacturing & Transaction)
*
**
* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical.
** D : Define

Page 46
Example of development process apply R&D 6
R&D
6
Kick
-Off
Evaluation
meeting for
present condition
Evaluation
meeting for
basic
concept
Evaluation
meeting for
planning
confirm
E/S
drawing
confirm
Custo-
mer
Needs
Survey
QFD
S-1
Spare
CTQ
Selec-
tion
Similar
process
Data
gathering
Z Value
of CTQ값
Analysis
M eeting
for CTQ
Check
Z Value
optimize,
Design
improve
QFD
S-2
Design
FM EA
Process
FM EA
Development
Process
E/S
making
Development
drawing
confirm
Income
Parts
E/S
Quality
meeting
P/L
Making
P/L
Quality
Meeting
Income
parts
P.P
Making
P.P
Quality
meeting
CTQ
Data
for new
parts
gather-
ing
Activity
for
process
improve-
ment
CTQ
for new
parts
Confirm
CTQ
deci-
sion
Z Value of
CTQ
confirm
6. 6 Activity Process Ⅰ. What is 6 activity?

Page 47
7. Comparing other tools
- Define/
Measurement
- Variance of
CTQ
- Present con-
dition Analysis
- Improved
by expert’s
Idea
- Control by
control chart
- Process
4M control
Measure
- Symptoms
- Frequency
- Analysis for
statistics
- Effect analysis
caused factors
- Optimizing
condition by
statistical
analysis
Others Others
6 6
- Discrete Data
- Difficult to apply practical
problem because of
complextity
- Discrete+Continuous
data
- Easy to apply because
of supporting statistical
software.
Analysis Inprovement Control
- Control by
PTS
(CTQ,
Benefits)
• Focusing
experience/
technology
* PTS : Project Tracking System
*
By Improvement Process
Ⅰ. What is 6 activity?

9. 9

Page 48
7. Compare with other tool
• Detecting process
defects
• Product managing
compare with spec.
• Judging each
person‟s Know-How
• Manual Data
gathering & analysis
• Control process
variation
• Judging the statistic
Data
• Simple & Effective
analysis using the
S/W
• Prevention Control
vital few factors
• Managing Tool • Improvement Tool
→ Selecting Line
→ Do process FMEA
- Selecting Cost issue
process view of customer
→ Conform CTQ process
→ Sorting the process
- Just need control process
- Important control process
- Law application process
- Variation improvement

→ 100ppm / 6 application
according to sorting
process

100ppm / 6
Ⅰ. What is 6 activity?
100ppm 6
100ppm / 6 Application

Page 49
CTQ(Y) = F( X1, X2, X3, ... Xn )
Y X
Focusing Point
● 6 activity is selecting the cost issue
problem on some system in view of
customer.
This is we called “CTQ” and
W e achieved 6 target through
the 6 process just selecting CTQ

● Also, 6 activity is focusing
the causing factor(x1,x2...xn),
not selecting CTQ itself
◆ Dependent
◆ Output
◆ Effect
◆ Symptom
◆ Monitor
◆ Independent
◆ Input-process
◆ Cause
◆ Problem
◆ Control
X factor effects on CTQ(Y) has
the vital few 20% & trivial many
80%.
Ⅰ. What is 6 activity? 8. 6 Philosophy

Page 50
◆ We don‟t know what we don‟t know.

◆ If we can‟t express what we know in the form
of numbers, we really don‟t know much about it.

◆ If we don‟t know much about it,
we can‟t control it.

◆ If we can‟t control it,
we are at the mercy of chance.
8. 6 Philosophy Ⅰ. What is 6 activity?

Page 51
◆ Our survival is dependent upon growing the business.
◆ Our business growth is largely determined by customer satisfaction.
◆ Customer satisfaction is governed by quality, price, and delivery.
◆ Quality, price, and delivery are controlled by process capability.
◆ Our Process capability is greatly limited by variation.
◆ Process variation leads to an increase in defects, cost, and cycle time.
◆ To eliminate variation, we must apply the right knowledge.
◆ In order to apply the right knowledge, we must first measure it.
◆ Measure the problem, we„ll get the right knowledge.
Ⅰ. What is 6 activity? 8. 6 Philosophy

Page 52
● At the beginning of 80’s, In the Japanese
market, Motorola’s beeper lost its name
value because of the quality difference
compared to Japan’s

● In 1981 they tried to meet a challenge to
improve quality 5 times in 5 years and they
couldn’t.

● They developed a consistent process base
on statistical knowledge.

● In 1987, they established 6σ goal
as a key initiative.
● In 1995 GE launched 6σ process
to overcome a difficult business
environment and to challenge
W orld Class Quality.

● They made new processes such as
Productivity,Inventory Return and NPI,
but improvement was delayed
because of defects in processes.

● GE thinks W orld Class Quality is
big challenge. GE will focus on
6σ process for next generation .
4. 6 Case Study Ⅱ. Why should we do 6?
Start : Motorola Prosperity :GE
Start & Prosperity

Page 53
MOTOROLA T I G E SONY
Introduce


Outcome



Character
-ristics


Remarks
1987 1988 1995 1997


Q. Cost Down Q. Cost Down Q. Cost Down By 2000 years
$3.2billion 1988:30% $3.8billion Train 2,000
→1993:7.4% Black Belts

Origin of 6σ Adopt to all Biz. First in Japan
(Quality level
elevated 100 times
in 4 years)

Culture harmony TOP DOWN Train and do pjt. Consult with
Western & Oriental Quality Train 6 σ Academy
Ⅱ. Why should we do 6?
Cases of other companies
4. 6 Case Study

10. 10

Page 54
Output of other companies
● 6 do the role of Boundaryless Behavior.
● Organization become learning & logical
● Use 6 as worldwide common language.
● GE believes that 6 would take part
central role in the future.
G E G E
Motorola Motorola
Motorola reached 5.5σ level in 1992.
Outcome is $3.2billion from1987 to 1992.
Ⅱ. Why should we do 6?
0
200
400
600
800
1000
1200
96 97 98
Costs
Benefits
4. 6 Case Study
Qualitative output Benefits

Page 55
1. Key Factor for Success of 6
2. 6 Operating system
3. Project tracking system
4. Case study for Infra.
Ⅲ. How to Launch 6?

Page 56
1. Key Factor for Success of 6
■ Need Top Down Drive
● Need Top management’s strong will for 6σ.
● Top management’s strong and periodical
announcement about 6σ policy.
■ All employees must participate...
● Not only manufacturing part, but also
nonmanufacturing part should join the program
● Focus on Customer’s requirements.
■ 6 as Pan-Company’s common standard.
● Common language .(CTQ, σ, Cp,Z ....)
● Avoid personal translation about 6σ.
● All of Goal and target are represented as σscale.
● Basic process for all of projects.
Ⅲ. How to Launch 6?
■ Start at Customer’s voice.
● CTQs from Customer’s voice,
Improve the item which has big impact first!
■ Need Training Program for All employees
● Complete understanding for 6σ program.
● Hard training for all employees.
● Need resource investment resolutely.
■ Construct Infra
● Need successful case study project.
● Resource reformation for organization and system.
● Reasonable appraisal and reward system.
System requirement Methodology

Page 57
* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme → Output review)
Champion
- 6 Operating
Project Team
- Operating Project
- Achieving 6 level for CTQ
MBB(Master Black Belt)
- Supporting 6σskill
Coaching/Supporting
Request supporting
Chief of executive division
- 6 Driving
- 6 Involvement & Commitment
Champion
Review
Ⅲ. How to Launch 6? 2. 6 Operating system

Page 58
Ⅲ. How to Launch 6? 2. 6 Operating system
Champion
Definition
• Chief of 6 operating

• Chief of business groups
(Chief of OBU, Business
Executives, Chief of
subsidiary)
Roles
• Set the 6 goal
• Assignment subject for total optimization
• Guide direction and goal of Project
It is very important that the Champion gets involved in project and take ownership for 6
- Present the Vision
• Monitor and support through Champion Review
• Directly support to settle bottleneck for 6σactivity
- Involvement
• Continuously lead Activity through strong commitment
• Evaluate Output and Share best practice with MBB
- Drive 6 Activity
• Lead supporting all department in improvement
and control step for 6 Project team
• Deciding Investment and allocate resources
• Generate motives
- Support Project
☞

Page 59
Ⅲ. How to Launch 6? 2. 6 Operating system
MBB(Master Black Belt)
• 6 Technical Leader

• Full Time Job for 6

• Complete MBB Course or
acquire MBB Cert.
It is very important to select excellent MBB and continuously improving skill
Definition Role
- Support Skill
• Coach BB/GB for 6σskill and tools
• Level Up for 6 skill & tools
• Share best practice
- Drive project results
• Check the Project by 6σ progress step
• Report champion about project status and output
• Assure benefits are real
- Support Projects
• Mentor BB / GB and Train individuals in tools
• Support settlement for 6Activity Barrier
• continuous management and control for improved process
☞

11. 11

Page 60
2. 6 Operating system
Main Job Role Requirements
• Leading BB/GB
• Project Drive
• Verity Output
• Training
• 6σ Technical Leader
• Needs Stat. Skill
Propagate
• More than 4 Projects
&
• Consulting More than
5 Projects a year
• Full Time Project
On TDR Theme
• Execute Project
• Leader of Pjt. team
• Team member
training
• 2 Projects
&
• 1 Project a year
• Join Project by
Part time
• Execute Project
• Team Leader or
Member
• 2 Projects
Master
BlackBelt
BlackBelt
GreenBelt
Belt
Ⅲ. How to Launch 6?
Belt Certification

Page 61
3. Project Tracking System
PTS Flow Benefit
- Update and control CTQ of Closed Project
- Easily manage and report for Project status
- Evaluate reduction cost of 6Project
- Share Project information
- Monitor 6 Project status
• Project Theme/Z value/Reduction cost
Amount
• By Division/OBU/Product/Model
All
Projects
Belt
PTS
Champion,
Ow ners
Project
Review s
- Defect Data,Goal
- Project status
- Results
- W eekly update
• W eekly Review
• Confirm cost benefits
Benefits
• Check & monitor
*
* PTS : Project Tracking System
Ⅲ. How to Launch 6?

Page 62
4. Case Study For Infra.
6Training
Material
Training For
All Employees
Planning
6Strategy
- Briefing 6
Process

- Planning 6
Strategy/Goal
Construct
IT System
- Impove Chronic
Defects
: Minitab S/W

- Optimize
Process IT
: Real Time
Monitoring
: Data Base
For CTQs

- PTS
: Project Tracking
System
- Intoduce 6
: All Employee

- 6 GB
Training Prg.
: Engineer,
Staff

- 6 W B
Training Prg.
: Supervisor

Organizing
6Team
- Due part
MFG : QA Team
Leader
R&D : Chief of
Lab.

- Organize 6
Surport Part
:2~3 person/OBU

→ Organize
6 Team
- Training for Employees

- Training for Boards
→ Project Review

- MBB & BB : 80/Year

- Training
: 2,400 person
Case Study
- 6 Team

- Case Study
: 1 / OBU
* Case :LGE Home Appliance Division.
Ⅲ. How to Launch 6?

Page 63
Start
Date
Business
Areas of
Emphasis
M etrics Supplier
Involvement
Training
Emphasis
Reward
System
Amount of
Cultural
Change
Return on
Investment
Motorola 1987 Production Defects Intimidation Six Sigma
Basics and
Statistics
Black Belt
Recognition
Low £1.4 Billion
in 7 Years
DSEG
(Raytheon/TI)
1990 Production Defects and
Cycle Time
Training
Suppliers
in the Tools
Low Not
Published
AlliedSignal 1992 Production
and Design
Training
Suppliers
Black
Belts
Six Sigma
Basics,
Statistics,
KISS for
Suppliers
General
Electric
1995 Production,
Design,
R&D, and
Transactional,
i.e., the whole
organisation
Training
Suppliers
Black Belts
Black Belt,
Green Belt,
and
Management
Promotions,
Bonuses,
and
Stock
Options
High
Black Belt
Recognition
Black Belt
Recognition
Monetary
Rewards
Six Sigma
Basics,
Statistics,
and Soft
Skills
Defects,
Cycle Time,
COPQ,
Cost
Reduction
Six Sigma
Basics,
Statistics,
Soft Skills,
Finance
Skills, (KISS
and KBM)
Defects,
Cycle Time,
COPQ,
Cost Reduction,
Stable
Operations,
Annual
Operating ROI
(Intellectual
Capital)
Medium £1.4
Billion in
4 Years
Evolution of Six Sigma
£3 +
Billion in
4 Years
(Taken
from
1999
Annual
Report)

Page 64
Design For Six Sigma
LSL USL
Manufacturing Goal:
Reduce Sigma Design Goal:
Relax Specs