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WhatisSixSigma?
JimBossert
BankofAmericaWhatisSixSigma?
JimBossert1Theproblemusedtobe:“Howdowegetmanagementinterestedenoughinqualitytodosomethingaboutit?”Nowtheproblemis:“Howdowegetthepeopletobelievethatwearereallygoingtodosomethingandstickwithit?”
PhilipB.CrosbyTheproblemusedtobe:2
“Nothingflourishesuntilisisclearinthemindofthethoughtleaders”
“Realcomprehensionhastoexistifthedeterminationistobeobvious”
PhilipB.Crosby
3WhatisSixSigma?SixSigma-TheInitiativeProcess
SystematicApproachtoReducingDefects whichAffectWhatisImportanttotheCustomerTools
Qualitative,StatisticalandInstructionalDevicesfor“Observing”ProcessVariables&TheirRelationshipsaswellas“Managing”theirCharacterWhatisSixSigma?SixSigma-4VisionGoalPhilosophyMetricMethodToolSymbolBenchmarkValuesWhatisSixSigma?AlevelofperformancethatreflectssignificantlyreduceddefectsinourproductsAstatisticalmeasurementofourprocesscapability,aswellasabenchmarkforcomparisonAsetofstatistical“tools”tohelpusmeasure,analyze,improve,andcontrolourprocessesAcommitmenttoourcustomerstoachieveanacceptablelevelofperformance....AmeanstostretchourthinkingwithrespecttoqualitySigmaisaletterintheGreekAlphabetVisionsWhatisSixSigma?Ale5SixSigma-Goal(DPMODistributionShifted±1.5s)sPPMProcessCapabilityDefectsperMillionOpp.SixSigma-Goal(DPMODistribu6THEGOALSOF
SIXSIGMA:DefectReductionYieldImprovementImprovedCustomerSatisfactionHigherNetIncomeTHEGOALSOF
SIXSIGMA:Defect7IRS-TaxAdvice(phone-in)(140,000PPM)7SigmaScaleofMeasure1,000,000100,00010,0001,000100101PPM?RestaurantBillsDoctorPrescriptionWritingPayrollProcessingOrderWrite-upJournalVouchersWireTransfersAirlineBaggageHandlingPurchasedMaterialLotRejectRateDomesticAirlineFlightFatalityRate(0.43PPM)(with±1.5sshift)Best-in-ClassAverageCompany345621?1994Dr.MikelJ.Harry-V4.0Wheredoesindustrystand??1994SixSigmaAcademyIRS-TaxAdvice7SigmaScale8What’sitBasedOn?Customer.....AnyoneWhoReceives
Product,Service,orInformationOpportunity.....
EveryChance
toDoSomethingEither“Right”or“Wrong”SuccessesVs.Defects.....
EveryResultofanOpportunityEitherMeetstheCustomerSpecificationoritDoesn’tWhat’sitBasedOn?9StrategyKnowWhat’sImportanttotheCustomerReduceDefectsCenterAroundTargetReduceVariationBreakthroughImprovementNotIncremental!StrategyKnowWhat’sImporta10ProfitTotalCosttomanufactureanddeliverproductsProfitTheoreticalCostsCostofPoorQualityCOPQWhyFocusonCOPQ?PriceErosionTheoreticalCostsCostofPoorQualityCOPQProfitTheoreticalCostsCOPQWhichFeelsBetter??ProfitTotalCosttoProfitTheo11
TheCostofPoorQuality(COPQ)“Iceberg”EngineeringchangeordersTraditionalQualityCostsLostOpportunityHiddenFactoryLostsalesLatedeliveryLongcycletimesExpeditingcostsExcessinventoryAdditionalCostsofPoorQuality(intangible)(tangible)(Difficultorimpossibletomeasure)LostCustomerLoyaltyMoreSetupsScrapReworkInspectionWarrantyRejectsAdministration/DispositionConcessionsAverageCOPQapproximately15%ofSales
TheCostofPoorQuality(COP12RiskofLossExtentofKnowledge(DerivedfromObservation&Measurement)“Whenyoucanmeasurewhatyouarespeakingabout,andexpressitinnumbers,youknowsomethingaboutit;butwhenyoucannotexpressitinnumbers,yourknowledgeisofameagerandunsatisfactorykind.Itmaybethebeginningofknowledge,butyouhavescarcely,inyourthoughts,advancedtothestateofscience.”
LordKelvinKnowledgeistheFoundationRiskExtentofKnowledge“Wheny13ScienceArtDisciplineChaosKnowledgeWhereAreYourProcessesToday?DirectionsofKnowledgeGoodDecisionsFireFightingWasteScienceArtDisciplineChaosKnow14
LeadershipCommitment,Competence&InvolvementMethodology&ToolsDataDrivenStatisticallyValidatedBestPeople100%DedicatedtoDefectReductionProjectFocusedWhatMakesSixSigmaDifferent?LeadershipCommitment,Compe15CollectingDataCommunicateinanobjective
mannerTocollectquantifiablefactsaboutaproblemoropportunityToestablishbaselineinformationaboutaproblemorprocessTofacilitatecostbenefitanalysisofproposedsolutionsTocomparebeforeandafter-quantifytheimpactofasolutionTojustifyextensionofthesolutionDataBuildsKnowledgeTheImportanceoftheCommonLanguageof
DataCollectingDataCommunicatein16WhatdoIneedtoknowtomakeDecisions?HowdoIneedtoseetheinformation?Whattoolwillbeused?Whatdatadoweneed?Whereisthedatalocated?PlanningExecutionQuestionstobeAnsweredDriveDataCollectionWhatdoIneedtoknowPlanning17STATISTICSISCOMMUNICATINGINFORMATIONFROMDATA-SchillingSTATISTICSISNOTASUBSTITUTEFORENGINEERINGJUDGMENT-DodgeSTATISTICALTHINKINGWILLONEDAYBEASNECESSARYFOREFFICIENTCITIZENSHIPASTHEABILITYTOREADANDWRITE.-H.G.WellsDATAISNOTKNOWLEDGE.INORDERTOGIVEUPITSKNOWLEDGE,DATAMUSTBETORTURED.STATISTICSARETHEIMPLEMENTSOFTORTURE.MikelHarrySTATISTICSISCOMMUNICATINGIN18OldPhilosophyofQuality NewPhilosophyofQualityLSLUSLLSLUSLAreaoutsidethespecificationlimitsrepresentqualitylosses.ConformancetoSpecifications“GoalPostMentality”Deviationfromthetargetrepresentsqualitylosses.Taguchi’sLossFunctionAverageLoss=k[s2+(y-T)2]“VariationisEvil” -SomeProductionGuyNoLosses@theTargetTheChangingQualityPhilosophyOldPhilosophyofQuality New19TheChangingQualityPhilosophyThehighestqualityproductsandservicesarethelowestcostproductsandservicesTheChangingQualityPhilosoph20BreakthroughStrategyCharacterizationPhase1:MeasurePhase2:AnalyzeOptimizationPhase3:ImprovePhase4:Control345671,000,000100,00010,0001,0001001012SigmaScaleofMeasurePPMAverageCompanyBest-in-ClassTheBasicObjectiveTheBreakthroughMethodologyDefinetheproblem...DMAIC
totheRescue!BreakthroughStrategyCharacteri21THENATUREOFTHEPROBLEMSixSigmamethodologyidentifiesprocessesthatareoff-target,and/orhaveahighdegreeofvariation,andcorrectstheprocessOff-TargetVariationOn-TargetCenterProcessReduceSpreadXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXTHENATUREOFTHEPROBLEMSixS22AnotherViewLSLUSLUSLLSLOff-TargetVariationOn-TargetCenterProcessReduceSpreadThestatisticalviewofaproblemUSLLSLLSL=LowerspeclimitUSL=UpperspeclimitLargeTHENATUREOFTHEPROBLEM-ASTATISTICALLOOKAnotherViewLSLUSLUSLLSLOff-Ta23InsufficientProcessCapabilityUnstablePartsandMaterialRegionofSixSigmaSynergyInadequateDesignMarginPrimarySourcesofVariationInsufficientUnstableRegionof24sMeasureofvariationandqualityMeasureofcapabilityofourprocessesHowDoWeMeasureVariationandQuality?sMeasureofvariationandqual25TheStandardDeviationmPointofInflection1sTUSLp(d)UpperSpecificationLimit(USL)TargetSpecification(T)LowerSpecificationLimit(LSL)Meanofthedistribution(m)StandardDeviationofthedistribution(s)3sThedistancebetweenthepointofinflectionandthemeanconstitutesastandarddeviation.Ifthreesuchdeviationscanbefitbetweenthetargetvalueandthespecificationlimit,wewouldsaytheprocesshas“threesigmacapability.”TheStandardDeviationmPointo26mPointofInflection1sTUSLp(d)p(d)1 2 3 4 56s3sThisisa6SigmaProcessTheStandardDeviationmPointofInflection1sTUSLp(d)27f(X)Y=X1...XNIndependentInput-ProcessCauseProblemControlYDependentOutputEffectSymptomMonitorTheFocusofSixSigmaTogetresults,shouldwefocusourbehaviorontheYorX?IfwearesogoodatX,whydoweconstantlytestandinspectY?FocusonXratherthanY,asdonehistoricallyf(X)Y=X1...XNYTheFocuso28ImprovementStrategy(DMAIC)
FocusVitalFewxiYYYYYx1,x2,...xnx1,x2,...xnVitalFewxiVitalFewxiVitalFewxiVitalFewxiPhaseMeasureAnalyzeImproveControlSelectProductorProcessKeyCharacteristic(s);e.g...,CustomerYDefinePerformanceStandardsForYValidateMeasurementSystemforYEstablishProcessCapabilityofCreatingYDefineImprovementObjectivesForYIdentifyVariationSourcesInYScreenPotentialCausesForChangeInY&IdentifyVitalFewxiDiscoverVariableRelationshipsBetweenVitalFewxiEstablishOperatingTolerancesOnVitalFewxiValidateMeasurementSystemForxiDetermineAbilityToControlVitalFewxiImplementProcessControlSystemOnVitalFewxiSIXSIGMAMETHODSGENERATEDATA-BASEDDECISIONSImprovementStrategy(DMAIC)F29------------------------------------HarvestingtheFruitofSixSigmaSweetFruit
DesignforManufacturabilityBulkofFruitProcessCharacterizationandOptimizationLowHangingFruitSevenBasicToolsGroundFruitLogicandIntuitionProcessEntitlement------------------------------------Wedon'tknowwhatwedon'tknowWecan'tactonwhatwedon'tknowWewon'tknowuntilwesearchWewon'tsearchforwhatwedon'tquestionWedon'tquestionwhatwedon'tmeasureHence,Wejustdon'tknow---------------30BreakthroughStrategy
BlackBeltCertificationProgramEventCycleActivityDescriptionDuration1InitialMeetingandPlanningSession2days21ChampionCoordinationMeeting1day31Session1:Black-BeltTraining5days41On-The-JobApplicationExercise15days52ChampionCoordinationMeeting1day62StandardSixSigmaReview1day72Session2:Black-BeltTraining4days82On-The-JobApplicationExercise15days93ChampionCoordinationMeeting1day103StandardSixSigmaReview1day113Session3:Black-BeltTraining4days123On-The-JobApplicationExercise15days134ChampionCoordinationMeeting1day144StandardSixSigmaReview1day154Session4:BlackBeltTraining3days17Contingency6days1stMonth2ndMonth3rdMonth4thMonthBreakthroughStrategy
BlackB31WhatisSixSigma?
JimBossert
BankofAmericaWhatisSixSigma?
JimBossert32Theproblemusedtobe:“Howdowegetmanagementinterestedenoughinqualitytodosomethingaboutit?”Nowtheproblemis:“Howdowegetthepeopletobelievethatwearereallygoingtodosomethingandstickwithit?”
PhilipB.CrosbyTheproblemusedtobe:33
“Nothingflourishesuntilisisclearinthemindofthethoughtleaders”
“Realcomprehensionhastoexistifthedeterminationistobeobvious”
PhilipB.Crosby
34WhatisSixSigma?SixSigma-TheInitiativeProcess
SystematicApproachtoReducingDefects whichAffectWhatisImportanttotheCustomerTools
Qualitative,StatisticalandInstructionalDevicesfor“Observing”ProcessVariables&TheirRelationshipsaswellas“Managing”theirCharacterWhatisSixSigma?SixSigma-35VisionGoalPhilosophyMetricMethodToolSymbolBenchmarkValuesWhatisSixSigma?AlevelofperformancethatreflectssignificantlyreduceddefectsinourproductsAstatisticalmeasurementofourprocesscapability,aswellasabenchmarkforcomparisonAsetofstatistical“tools”tohelpusmeasure,analyze,improve,andcontrolourprocessesAcommitmenttoourcustomerstoachieveanacceptablelevelofperformance....AmeanstostretchourthinkingwithrespecttoqualitySigmaisaletterintheGreekAlphabetVisionsWhatisSixSigma?Ale36SixSigma-Goal(DPMODistributionShifted±1.5s)sPPMProcessCapabilityDefectsperMillionOpp.SixSigma-Goal(DPMODistribu37THEGOALSOF
SIXSIGMA:DefectReductionYieldImprovementImprovedCustomerSatisfactionHigherNetIncomeTHEGOALSOF
SIXSIGMA:Defect38IRS-TaxAdvice(phone-in)(140,000PPM)7SigmaScaleofMeasure1,000,000100,00010,0001,000100101PPM?RestaurantBillsDoctorPrescriptionWritingPayrollProcessingOrderWrite-upJournalVouchersWireTransfersAirlineBaggageHandlingPurchasedMaterialLotRejectRateDomesticAirlineFlightFatalityRate(0.43PPM)(with±1.5sshift)Best-in-ClassAverageCompany345621?1994Dr.MikelJ.Harry-V4.0Wheredoesindustrystand??1994SixSigmaAcademyIRS-TaxAdvice7SigmaScale39What’sitBasedOn?Customer.....AnyoneWhoReceives
Product,Service,orInformationOpportunity.....
EveryChance
toDoSomethingEither“Right”or“Wrong”SuccessesVs.Defects.....
EveryResultofanOpportunityEitherMeetstheCustomerSpecificationoritDoesn’tWhat’sitBasedOn?40StrategyKnowWhat’sImportanttotheCustomerReduceDefectsCenterAroundTargetReduceVariationBreakthroughImprovementNotIncremental!StrategyKnowWhat’sImporta41ProfitTotalCosttomanufactureanddeliverproductsProfitTheoreticalCostsCostofPoorQualityCOPQWhyFocusonCOPQ?PriceErosionTheoreticalCostsCostofPoorQualityCOPQProfitTheoreticalCostsCOPQWhichFeelsBetter??ProfitTotalCosttoProfitTheo42
TheCostofPoorQuality(COPQ)“Iceberg”EngineeringchangeordersTraditionalQualityCostsLostOpportunityHiddenFactoryLostsalesLatedeliveryLongcycletimesExpeditingcostsExcessinventoryAdditionalCostsofPoorQuality(intangible)(tangible)(Difficultorimpossibletomeasure)LostCustomerLoyaltyMoreSetupsScrapReworkInspectionWarrantyRejectsAdministration/DispositionConcessionsAverageCOPQapproximately15%ofSales
TheCostofPoorQuality(COP43RiskofLossExtentofKnowledge(DerivedfromObservation&Measurement)“Whenyoucanmeasurewhatyouarespeakingabout,andexpressitinnumbers,youknowsomethingaboutit;butwhenyoucannotexpressitinnumbers,yourknowledgeisofameagerandunsatisfactorykind.Itmaybethebeginningofknowledge,butyouhavescarcely,inyourthoughts,advancedtothestateofscience.”
LordKelvinKnowledgeistheFoundationRiskExtentofKnowledge“Wheny44ScienceArtDisciplineChaosKnowledgeWhereAreYourProcessesToday?DirectionsofKnowledgeGoodDecisionsFireFightingWasteScienceArtDisciplineChaosKnow45
LeadershipCommitment,Competence&InvolvementMethodology&ToolsDataDrivenStatisticallyValidatedBestPeople100%DedicatedtoDefectReductionProjectFocusedWhatMakesSixSigmaDifferent?LeadershipCommitment,Compe46CollectingDataCommunicateinanobjective
mannerTocollectquantifiablefactsaboutaproblemoropportunityToestablishbaselineinformationaboutaproblemorprocessTofacilitatecostbenefitanalysisofproposedsolutionsTocomparebeforeandafter-quantifytheimpactofasolutionTojustifyextensionofthesolutionDataBuildsKnowledgeTheImportanceoftheCommonLanguageof
DataCollectingDataCommunicatein47WhatdoIneedtoknowtomakeDecisions?HowdoIneedtoseetheinformation?Whattoolwillbeused?Whatdatadoweneed?Whereisthedatalocated?PlanningExecutionQuestionstobeAnsweredDriveDataCollectionWhatdoIneedtoknowPlanning48STATISTICSISCOMMUNICATINGINFORMATIONFROMDATA-SchillingSTATISTICSISNOTASUBSTITUTEFORENGINEERINGJUDGMENT-DodgeSTATISTICALTHINKINGWILLONEDAYBEASNECESSARYFOREFFICIENTCITIZENSHIPASTHEABILITYTOREADANDWRITE.-H.G.WellsDATAISNOTKNOWLEDGE.INORDERTOGIVEUPITSKNOWLEDGE,DATAMUSTBETORTURED.STATISTICSARETHEIMPLEMENTSOFTORTURE.MikelHarrySTATISTICSISCOMMUNICATINGIN49OldPhilosophyofQuality NewPhilosophyofQualityLSLUSLLSLUSLAreaoutsidethespecificationlimitsrepresentqualitylosses.ConformancetoSpecifications“GoalPostMentality”Deviationfromthetargetrepresentsqualitylosses.Taguchi’sLossFunctionAverageLoss=k[s2+(y-T)2]“VariationisEvil” -SomeProductionGuyNoLosses@theTargetTheChangingQualityPhilosophyOldPhilosophyofQuality New50TheChangingQualityPhilosophyThehighestqualityproductsandservicesarethelowestcostproductsandservicesTheChangingQualityPhilosoph51BreakthroughStrategyCharacterizationPhase1:MeasurePhase2:AnalyzeOptimizationPhase3:ImprovePhase4:Control345671,000,000100,00010,0001,0001001012SigmaScaleofMeasurePPMAverageCompanyBest-in-ClassTheBasicObjectiveTheBreakthroughMethodologyDefinetheproblem...DMAIC
totheRescue!BreakthroughStrategyCharacteri52THENATUREOFTHEPROBLEMSixSigmamethodologyidentifiesprocessesthatareoff-target,and/orhaveahighdegreeofvariation,andcorrectstheprocessOff-TargetVariationOn-TargetCenterProcessReduceSpreadXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXTHENATUREOFTHEPROBLEMSixS53AnotherViewLSLUSLUSLLSLOff-TargetVariationOn-TargetCenterProcessReduceSpreadThestatisticalviewofaproblemUSLLSLLSL=LowerspeclimitUSL=UpperspeclimitLargeTHENATUREOFTHEPROBLEM-ASTATISTICALLOOKAnotherViewLSLUSLUSLLSLOff-Ta54InsufficientProcessCapabilityUnstablePartsandMaterialRegionofSixSigmaSynergyInadequateDesignMarginPrimarySourcesofVariationInsufficientUnstableRegionof55sMeasureofvariationandqualityMeasureofcapabilityofourprocessesHowDoWeMeasureVariationandQuality?sMeasureofvariationandqual56TheStandardDeviationmPointofInflection1sTUSLp(d)UpperSpecificationLimit(USL)TargetSpecification(T)LowerSpecificationLimit(LSL)Meanofthedistribution(m)StandardDeviationofthedistribution(s)3sThedistancebetweenthepointofinflectionandthemeanconstitutesastandarddeviation.Ifthreesuchdeviationscanbefitbetweenthetargetvalueandthespecificationlimit,wewouldsaytheprocesshas“threesigmacapability.”TheStandardDeviationmPointo57mPointofInflection1sTUSLp(d)p(d)1 2 3 4 56s3sThisisa6SigmaProcessTheStandardDeviationmPointofInflection1sTUSLp(d)58f(X)Y=X1...XNIndependentInput-ProcessCauseProblemControlYDependentOutputEffectSymptomMonitorTheFocusofSixSigmaTogetresults,shouldwefocusourbehaviorontheYorX?IfwearesogoodatX,whydoweconstantlytestandinspectY?FocusonXratherthanY,asdonehistoricallyf(X)Y=X1...XNYTheFocuso59ImprovementStrategy(DMAIC)
FocusVitalFewxiYYYYYx1,x2,...xnx1,x2,...xnVitalFewxiVitalFewxiVitalFewxi
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