QUALITY TOOLS &
TECHNIQUES
Q T T
SIX SIGMA: AN OVERVIEW
By: -
Dr. Hakeem–Ur–Rehman
1
IQTM–PU
SIX SIGMA DEFINED
▪ Ina narrow sense…
▪ A metric based on Statistical Measure called Standard Deviation
▪ Ina broader, business sense…
▪ WORLD CLASS QUALITY providing a BETTER product or service, FASTER, and at a LOWER
COST than our competitors.
▪ VARIATION… “the enemy of the customer satisfaction”
WHAT IS SIX SIGMA?
▪ DIFFERENT OPINIONS ON THE DEFINITION OF SIX SIGMA:
▪ Six Sigma is a PHILOSOPHY: Processes require inputs (x) and produce outputs (y). If you
control the inputs, you will control the outputs: This is generally expressed as y = f(x).
▪ Six Sigma is a SET OF TOOLS: The Six Sigma expert uses qualitative and quantitative
techniques to drive process improvement. A few such tools include statistical process control
(SPC), control charts, failure mode and effects analysis and flowcharting.
▪ Six Sigma is a METHODOLOGY: This view of Six Sigma recognizes the underlying and
rigorous approach known as DMAIC (define, measure, analyze, improve and control). DMAIC
defines the steps a Six Sigma practitioner is expected to follow, starting with identifying the
problem and ending with the implementation of long-lasting solutions. While DMAIC is not the
only Six Sigma methodology in use, it is certainly the most widely adopted and recognized.
▪ Six Sigma is a METRIC: it uses the measure of sigma, DPMO (Defect Per Million
Opportunities), RTY (Rolled Throughput Yield) etc.
SIX SIGMA DEFINITIONS
▪ A Management driven, scientific methodology for product and process
improvement which creates breakthroughs in financial performance and
Customer satisfaction.
Source: Motorola
▪ A methodology that provides businesses with the tools to improve the
capability of their business processes. This increase in performance and
decrease in process variation lead to defect reduction and improvement
in profits, employee morale and quality of product.
Source: ASQ
WHAT IS A SIX SIGMA … As a Measure?
1.5 Sigma
Shift Theory
WHAT IS A SIX SIGMA
… As a Metric?
WHAT IS SIGMA LEVEL?
A metric that indicate how well a process is performing.
A higher sigma level means higher performance . A
Statistical measure of the capability of a process.
WHAT IS A SIX SIGMA
… As a Metric?
Each of these metrics serves a different purpose and may be used at different levels
in the organization to express the performance of a process in meeting the
organization’s (or customer’s) requirements. We will discuss each in detail as we do
through the course.
1. Defects
2. Defects Per Unit (DPU)
3. Parts Per Million (PPM)
4. Defects Per Million Opportunities (DPMO)
5. Yield
6. First Time Yield
7. Rolled Throughput Yield (RTY)
8. Sigma Level
SIX SIGMA:
Metrics (Cont…)
DPU Say:
(Defects / Unit) 10 Defects, 100 Pairs
(# of Defects / # of Units) DPU = 10/100 = 0.1 (10%)
DPO Say:
(Defects / Opportunity) 10 Defects, 100 Pairs,
2 Opportunities / Carton
(# of Defects) / (# of Units DPO = 10/(100 X 2) = 0.05 or
X # of Defect Opportunities 5% for each type
/ Unit)
SIX SIGMA: Metrics
(Cont…)
DPMO Say:
(Defects / M. 10 Defects, 100 Pairs
Opportunities) 2 types of defects
DPO X 106 DPMO = 0.05 X 106 = 50,000
Yield =1–DPO =1–0.05 = 95 %
SIGMA
Consult Z–Table or Excel From M.S. Excel:
=Normsinv(%Yield)+1.5
Sigma Level
50,000 DPMO = 3.145σ
SIGMA LEVEL: CONVERSION TABLE
Defects per Success Sigma Defects per Success Sigma
1,000,000 rate Level 1,000,000 rate Level
933,000 7% 0.0 54,800 94.52% 3.1
919,000 8% 0.1 44,600 95.54% 3.2
903,000 10% 0.2 35,900 96.41% 3.3
885,000 12% 0.3 28,700 97.13% 3.4
864,000 14% 0.4 22,800 97.72% 3.5
841,000 16% 0.5 17,900 98.21% 3.6
816,000 18% 0.6 13,900 98.61% 3.7
788,000 21% 0.7 10,700 98.93% 3.8
758,000 24% 0.8 8,200 99.18% 3.9
726,000 27% 0.9 6,210 99.379% 4.0
691,000 31% 1.0 4,660 99.534% 4.1
655,000 34% 1.1 3,470 99.653% 4.2
618,000 38% 1.2 2,560 99.744% 4.3
579,000 42% 1.3 1,870 99.813% 4.4
540,000 46% 1.4 1,350 99.865% 4.5
500,000 50% 1.5 968 99.903% 4.6
460,000 54.0% 1.6 687 99.931% 4.7
421,000 57.9% 1.7 483 99.952% 4.8
382,000 61.8% 1.8 337 99.966% 4.9
345,000 65.5% 1.9 233 99.9767% 5.0
309,000 69.1% 2.0 159 99.9841% 5.1
274,000 72.6% 2.1 108 99.9892% 5.2
242,000 75.8% 2.2 72 99.9928% 5.3
212,000 78.8% 2.3 48 99.9952% 5.4
184,000 81.6% 2.4 32 99.9968% 5.5
159,000 84.1% 2.5 21 99.9979% 5.6
136,000 86.4% 2.6 13 99.9987% 5.7
115,000 88.5% 2.7 9 99.9991% 5.8
96,800 90.32% 2.8 5 99.9995% 5.9
80,800 91.92% 2.9 3.4 99.99966% 6.0
66,800 93.32% 3.0
EXAMPLE: Calculate Sigma Level
Calculate the Sigma Level and DPMO of a telecom network had 500 minutes of
downtime in 2005.
▪ Product: Network (Connectivity)
▪ CTQ: Up time / Down time
▪ CTQ Measure: Minutes
▪ CTQ Specs: no downtime
▪ Defect measure: One minute of Network down
▪ Opportunity/Unit: 1
▪ Total Defects in 2005: 500 minutes
▪ Total Time (Minutes): 365days X 24hours X 60min. = 525,600
▪ DPU = 500/525,600 = 0.000951
▪ DPO = 500 / (525600 X 1) = 0.000951
▪ DPMO= 0.000951 X 106 = 951
▪ Yield = 1 – DPO = 1 – 0.000951 = 0.999049
▪ SIGMA LEVEL = Normsinv(%Yield)+1.5 = 4.6σ
EXAMPLE: Calculate Sigma Level
A manufacturer of computer hard drives wants to measure their Six Sigma level.
Over a given period of time, the manufacturer creates 83,934 hard drives. The
manufacturer performs 8 individual checks to test quality of the drives. During
testing 3,432 are rejected.
▪ # of Defects = 3432
▪ # of Units = 83934
▪ # of Defect Opportunities per Unit = 8
▪ DPU = 3432/83934 = 0.041
▪ DPO = 3432/(83934 X 8) = 0.0051
▪ DPMO= DPO X 106 = 5111
▪ Yield = 1 – DPO = 1 – 0.0051 = 0.9949
▪ SIGMA LEVEL = Normsinv(%Yield)+1.5 = 4.07σ
EXAMPLE: Calculate Sigma Level
A project is focused on a billing process. The team wants to have correct bills sent to
the customer. They have defined one opportunity for this process - either the bill is
correct or not. All of the bills produced are the same in terms of complexity. The
team took a sample of 250 bills and found 60 defects.
▪ # of Defects = 60
▪ # of Units = 250
▪ # of Defect Opportunities per Unit = 1
▪ DPU = 60/250 = 0.24
▪ DPO = 60/(250 X 1) = 0.24
▪ DPMO= DPO X 106 = 240,000
▪ Yield = 1 – DPO = 1 – 0.24 = 0.76
▪ SIGMA LEVEL = Normsinv(%Yield)+1.5 = 2.21σ
EXAMPLE: Calculate Sigma Level
If you have a total of 500 delivery orders and you find out that 41 of those were
delivered late, and 17 were incorrect orders.
▪ # of Defects = 41+17 = 58
▪ # of Units = 500
▪ # of Defect Opportunities per Unit = 2
(delivery time and correct order)
▪ DPU = 58/500 = 0.116
▪ DPO = 58/(500 X 2) = 0.058
▪ DPMO= DPO X 106 = 58,000
▪ Yield = 1 – DPO = 1 – 0.058 = 0.942
▪ SIGMA LEVEL = Normsinv(%Yield)+1.5 = 3.07σ
EXAMPLE: Calculate Sigma Level
A telecom service provider complies the defects of one year from the inspection of 100 sites. The severity of each
defect is classified in the following:
i. Critical
ii. Major
iii. Minor
iv. Trivial
The complete checklist comprises of 50 types of defects. The data of 2005 of 100 sites reveals the following
figures:
Total # of Critical Defects: 5
Total # of Major Defects: 20
Total # of Minor Defects: 120
Total # of Trivial Defects: 155
Calculate the Sigma Value and the DPMO for the year 2005.
▪ # of Defects = 5 + 20 + 120 + 155 = 300
▪ # of Units (Opportunities) = 100
▪ # of Defect Opportunities per Unit = 50
▪ DPU = 300/100 = 3.0
▪ DPO = 300/(100 X 50) = 0.0600
▪ DPMO= DPO X 106 = 60,000
▪ Yield = 1 – DPO = 1 – 0.0600 = 0.9400
▪ SIGMA LEVEL = Normsinv(%Yield)+1.5 = 3.05σ
SIGMA TABLE
SHORT TERM LONG TERM
(PROCESS NOT SHIFTED) (PROCESS SHIFTED 1.5 SIGMA)
SIGMA
LEVEL Yield (OK) Reject Yield (OK) Reject
% PPM % PPM
1σ 68.27 317,300 30.23 697,700
2σ 95.45 45,500 69.13 308,700
3σ 99.73 2,700 93.32 66,810
4σ 99.9937 63 99.3790 6,210
5σ 99.999943 0.53 99.97670 233
6σ 99.9999998 0.002 99.999660 3.4
SIX SIGMA FRAMEWORKS
Program SIX SIGMA Lean Six Sigma DFSS
Focus / VARIATION WASTE / SPEED RELIABILITY &
Defects Cycle Time, Delivery ROBUSTNESS
Theme Cost of Poor Quality Cost of Operation Design Features
Methodology DMAIC DMAIC DMADV
Tools SIPOC, CTQ, 5S, Value
VOC, QFD, FMEA,
SPC, FMEA, Mapping, Time
CTQ, Gage R & R,
DOE, QFD, Study, TPM,
DOE, Reliability
CoQ, ANOVA, Cellular Prod.,
Analysis, SPC,
Hypothesis, Supply Chain,
Systems
Regression, Takt Time,
Engineering
MSA (R & R) Poke Yoke
SIX SIGMA & LEAN SIX SIGMA
Define
Define
DESIGN FOR SIX SIGMA
SIX SIGMA METHODOLOGIES
Improvement Methodologies
DMAIC METHODOLOGY
▪ DEFINE: "What is important to the business?"
o The problem is defined, including who the customers are and what they want, to determine what needs
to improve.
o Expected benefits for the project sponsor & Time line
▪ MEASURE: "How are we doing with the current process?"
o The process is measured, data are collected, and compared to the desired state.
▪ ANALYZE: "What is wrong with the current process?"
o The data are analyzed in order to determine the cause of the problem.
▪ IMPROVE: "What needs to be done to improve the process?"
o The team brainstorms to develop solutions to problems; changes are made to the process, and the
results are measured to see if the problems have been eliminated. If not, more changes may be
necessary.
▪ CONTROL: "How do we guarantee performance so that the improvements are sustained over
time?"
o If the process is operating at the desired level of performance, it is monitored to make sure the
improvement is sustained and no unexpected and undesirable changes occur.
DMAIC & CRISP-DM Cycle
CRISP-DM:
CRoss Industry Standard
Process for Data Mining
▪ The CRISP-DM methodology
provides a structured
approach to planning a data
mining / data science /
business analytics project.
▪ It is a robust and well-proven
methodology.
The QM-CRISP-DM cycle combines the CRISP-DM approach with appropriate quality management tools
Schäfer, F., Zeiselmair, C., Becker, J., & Otten, H. (2018, November). Synthesizing CRISP-DM and quality management: A data mining approach for production processes.
In 2018 IEEE International Conference on Technology Management, Operations and Decisions (ICTMOD) (pp. 190-195). IEEE.
SIX SIGMA TOOLS
• QFD
Q
• FMEA
• SPC
• QC TOOLS
• New Management Tools
• Control Charts
S
• Capability Analysis
• Probability Distribution
• Sampling
• Confidence Interval
• Regression Analysis
• Project Management
M
• Organizational Behavior
• Human Resource
Management
• Knowledge Management
SIX SIGMA TOOLS
1. Quality Tools
2. Statistical Tools
3. Management Tools
Every tool is a JUNK unless used appropriately
SIX SIGMA STRUCTURE
HOD’S /
Owners
Quality Council / Steering Committee
SS Project Sponsors
Managers Champions Process Owner
Master Coach
Black Belt Trainers
Team
Black Belt Leaders Black Belt
Team
Members
Green Belt Green Belt Green Belt Green Belt
COMPARISON OF
LEAN & SIX SIGMA
Six Sigma was developed by Motorola in the 1980s to systematically improve quality by
elimination of defects.
SIX SIGMA LEAN
Objective Deliver value to customer Deliver value to customer
Theory Reduce variation Remove waste
Focus Problem focused Flow focused
Assumptions ▪ A problem exists ▪ Waste removal will improve business
▪ Figures and numbers are valued performance
▪ Many small improvements are better
▪ System output improves if variation in than system analysis
all processes inputs is reduced
Six Sigma is a data driven philosophy and process resulting in dramatic improvement in
products/service quality and customer satisfaction.
PROJECT CHARTER
Project Title Project Title
Business Case ▪ Why should you do this project?
▪ What are the benefits of doing this project?
Problem Statement What is the problem, issue and/or concern?
Goal What are your improvement objectives and targets?
Metrics (CTQ’s) ▪ PRIMARY Metric(s): Key measures to be used for the objectives
▪ SECONDARY Metric(s): Those measures which indicates impacts on secondary concerns
and which indicates that problem is not shifted to other key areas.
Project Scope ▪ What authority do you have?
▪ Which processes/products you are addressing?
▪ What is not within this project?
Project Team ▪ Who are the team leader, sponsor, and members?
▪ What are their roles and responsibilities in this project?
Project Plan How and when are you going to get this project done (DMAIC stages)
Communication Plan ▪ What are your interfaces with each other?
▪ What are your meeting & reporting times?
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QUESTIONS
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