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### Lecture 11 - Six-Sigma Management and Tools

### Organizing Six Sigma

### DMAIC

### DMAICRepeatability & Reproducibility

### The Taguchi Method

### Reasons for Six Sigma Failure

6Σ Organization, DMAIC, Taguchi Method, Robust Design, Design of Experiments, Design for Six Sigma, Reasons for 6Σ Failure

SJSU Bus. 142 - David Bentley

Topics

SJSU Bus. 142 - David Bentley

Six Sigma Evolution

- Started as a simple quality metric at Motorola in 1986 (Bill Smith)
- Concept migrated to Allied Signal
- (acquired Honeywell and took its name)
- Picked up by General Electric
- Commitment by CEO Jack Welch in 1995
- Grown to be an integrated strategy for attaining extremely high levels of quality

SJSU Bus. 142 - David Bentley

What is Six-Sigma?

SJSU Bus. 142 - David Bentley

Percent Not Meeting Specifications

- +1Σ = 32%
- +2Σ = 4.5%
- +3Σ = 0.3%
- +6Σ = 0.00034%

SJSU Bus. 142 - David Bentley

Six-Sigma Levels

SJSU Bus. 142 - David Bentley

Statistics - DPU

- Defect
- Six Sigma: “any mistake or error passed on to the customer” ???
- General view: any variation from specifications
- DPU (defects per unit)
- Number of defects per unit of work
- Ex: 3 lost bags ÷ 8,000 customers

= .000375

SJSU Bus. 142 - David Bentley

Statistics – dpmo (defects per million opportunities)

- Process may have more than one opportunity for error (e.g., airline baggage)
- dpmo = (DPU× 1,000,000) ÷

opportunities for error

- Ex: (.000375)(1,000,000) ÷ 1.6 = 234.375

or (3 lost bags × 1,000,000) ÷ (8,000 customers × 1.6 average bags)

= 234.375

SJSU Bus. 142 - David Bentley

Statistics – dpmo (cont’d)

- May extend the concept to include higher level processes
- E.g., may consider all opportunities for errors for a flight (from ticketing to baggage claim)

SJSU Bus. 142 - David Bentley

Statistics - Off-Centering

- Represents a shift in the process mean
- Impossible to always keep the process mean the same (this WOULD be perfection)
- Does NOT represent a change in specifications
- Control of shift within ± 1.5 σ of the target mean keeps defects to a maximum of 3.4 per million

SJSU Bus. 142 - David Bentley

Statistics - Off-Centering (cont’d)Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

SJSU Bus. 142 - David Bentley

k-Sigma Quality Levels

- Number of defects per million opportunities
- For a specified off-centering and
- a desired quality level

SJSU Bus. 142 - David Bentley

k-Sigma Quality Levels Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

SJSU Bus. 142 - David Bentley

Six Sigma and Other Techniques

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SJSU Bus. 142 - David Bentley

Key Players

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Distribution of Six Sigma Trained Employees

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SJSU Bus. 142 - David Bentley

DMAICDMAIC Overview

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DMAICDefine – (1)

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DMAICDefine – (2)

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DMAICDefine – (3)

SJSU Bus. 142 - David Bentley

DMAICMeasure – (1)

SJSU Bus. 142 - David Bentley

DMAICMeasure – (2)

SJSU Bus. 142 - David Bentley

DMAICMeasure – (3)

SJSU Bus. 142 - David Bentley

DMAICMeasure – (4)

SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley

Measurement System DMAIC Evaluation

- Variation can be due to:
- Process variation
- Measurement system error
- Random
- Systematic (bias)
- A combination of the two

SJSU Bus. 142 - David Bentley

DMAICMetrology - 1

- Definition: The Science of Measurement
- Accuracy
- How close an observation is to a standard
- Precision
- How close random individual measurements are to each other

SJSU Bus. 142 - David Bentley

DMAICMetrology - 2

- Repeatability
- Instrument variation
- Variation in measurements using same instrument and same individual
- Reproducibility
- Operator variation
- Variation in measurements using sameinstrument and different individual

SJSU Bus. 142 - David Bentley

DMAICR&R Studies

- Select m operators and n parts
- Calibrate the measuring instrument
- Randomly measure each part by each operator for r trials
- Compute key statistics to quantify repeatability and reproducibility

SJSU Bus. 142 - David Bentley

DMAICR&R Spreadsheet Template

SJSU Bus. 142 - David Bentley

DMAICR&R Evaluation

- Repeatability and/or reproducibility error as a percent of the tolerance
- Acceptable: < 10%
- Unacceptable: > 30%
- Questionable: 10-30%
- Decision based on criticality of the quality characteristic being measured and cost factors

SJSU Bus. 142 - David Bentley

DMAICCalibration

- Compare 2 instruments or systems
- 1 with known relationship to national standards
- 1 with unknown relationship to national standards

SJSU Bus. 142 - David Bentley

DMAICAnalyze – (1)

SJSU Bus. 142 - David Bentley

DMAICAnalyze – (2)

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DMAICAnalyze–(3)

SJSU Bus. 142 - David Bentley

DMAICAnalyze–(4)

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DMAICImprove

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DMAICControl Phase

SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley

The Taguchi Method provides:

SJSU Bus. 142 - David Bentley

Design of Experiments (DOE)

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The Taguchi Process

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Taguchi Quality Loss Function

- Traditional view: anything within specification limits is OK, with no loss
- Taguchi
- Any variation from the target mean represents a potential loss
- The greater the distance from the target mean the greater the potential loss

SJSU Bus. 142 - David Bentley

Design for Six-Sigma (DFSS)

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DMADV

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IDOV

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SJSU Bus. 142 - David Bentley

Reasons for Six-Sigma Failure - (1)

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Reasons for Six-Sigma Failure - (2)

SJSU Bus. 142 - David Bentley

Summary

SJSU Bus. 142 - David Bentley

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