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# History of Six Sigma - ADDVALUE - Nilesh Arora

Know the history of lean six sigma by Nilesh Arora, a founder of AddValue Consulting Inc. He explained What is six sigma and how six sigma process follows?

## History of Six Sigma - ADDVALUE - Nilesh Arora

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### Presentation Transcript

1. “Six Sigma (6σ)” by Best Performing Consulting Organization AddingValueInTotality!!

2. History of Six Sigma (6σ) • In 1986 Bill smith, Seniors Engineer and scientist introduces concept of Six Sigma • Bill smith Known as “ Father of Six Sigma” • In 1995, Jack Welch introduced Six Sigma at GE

3. What’s in a name? • Sigma is the Greek letter representing the standard deviation of a population of data. • Sigma is a measureof variation (the data spread) σ μ

4. What is Six Sigma ? A metric? What is Six Sigma? A management system? A philosophy? A methodology?

5. What is Lean Six Sigma? • Goal – Eliminate waste and increase process speed • Method • Genchi Genbutsu– Go and See the workplace (Gemba) • Kaizen (Change for better) workshops What is Lean ?

6. What is Lean Six Sigma ? • Goal – Reduce variation to improve performance on CTQs (Variation means system does not produce same result each time) • Method – DMAIC, DMADV,DFSS approach What is Six Sigma ?

7. Normal Distribution Curve Lower Spec Upper Spec   + µ - - 1σ + 1σ 68.26% - 2σ + 2σ 95.44% 99.73% 99.9937% 99.99943% + 3σ - 3σ + 4σ - 4σ + 5σ - 5σ + 6σ - 6σ 99.999998%

8. What is Six Sigma performance? Your process is performing at sigma level of six if the difference between mean and specification limit is six times the standard deviation USL Question - How many times of standard deviation (σ) is specification limit to mean? Answer – Same as sigma level for the process (Z value) LSL Mean 1σ ? times σ -6σ -5σ -4σ -3σ -2σ -1σ μ +1σ +2σ +3σ +4σ +5σ +6σ

9. Data Driven Approach Y= f (X) To get results, should we focus our behavior on the Y or X ? • • • • • • • X1 . . . XN Independent Input Cause Problem Control Factor • • • • • • • Y Dependent Output Effect Symptom Monitor Response Is it feasible to eliminate the inspection of Y, if X’s are controlled well?

10. How Six Sigma Process Follows? • Identify customer issues which generally follows timely delay, high cost, defect etc… • Internalized as performance measures such as e.g. Cycle time, defect rate etc. • Target performance levels are established and then company seek to perform around this targets with minimal variation

11. THE DMAIC METHOD 1 5 CONTROL DEFINE 4 2 IMPROVE MEASURE 3 ANALYZE

12. Phase 1: Define Projects Identification Method VOC ANALYSIS (Problem identification based on customer’s voice) List of problems/projects of organization on the basis of Criticality, Out come , Time line VOB ANALYSIS (Problem identification based on Business problems) Identification of CTQs COPQ (Problem identification based on cost of poor quality i.e. Process Defects )

13. Phase 2: Measure • Goal • Focus the improvement effort by gathering information on the current situation • Output • Data that pinpoints problem location or occurrence • Baseline data on current process sigma • A more focused problem statement 1 5 DEFINE CONTROL Baseline Data 4 2 Sampling IMPROVE MEASURE Gage R&R 3 ANALYZE Patterns Capability

14. DATA COLLECTION • The system to collect information is already established. • Find the data which supports the defined problem • Find out the data stream wise/ product wise etc.. Data type: • Attribute data or Discreet : Value of countable quality characteristics Example - Number of Defects, Number of Defectives. • Continuous data or Variable data : Value of measurable quality characteristics Examples - Strength (kg/cm2), weight (kg) , length (cm), temperature (° C), time (sec)

15. Phase 3: Analyze • Goal • Identify deep root causes and confirm them with data • Output • A theory that has been tested and confirmed 1 5 DEFINE CONTROL 4 2 IMPROVE MEASURE 3 ANALYZE DoE Process Analysis Organize Causes Regression Multi-Vari Hypothesis Testing

16. Phase 4: Improve • Goal • Develop, pilot, and implement solutions that address root causes. • Output • Identification of planned, tested actions that should eliminate or reduce the impact of the identified root causes 1 5 CONTROL DEFINE Solutions 4 2 IMPROVE MEASURE FMEA 3 Pilot ANALYZE Implemen- tation

17. Solutions • Improvement team created with members of Quality, Production, Engineering and R&D areas to propose and evaluate ideas. • Brainstorming tool was used to gather ideas on how to solve the problems identified. • Ideas were evaluated per following criteria: feasible, high impact, easy, low cost, and quick. • Following tables summarizes solutions agreed by consensus of the improvement team.

18. Phase 5: Control Control Standardize • Goal • Use data to evaluate both the solutions and the plans • Validate that all changes adhere to all operating company change control, and compliance requirements • Maintain the gains by standardizing processes • Outline next steps for on-going improvement • Output • Before-and-After analysis • Monitoring system • Completed documentation of results, learning, and recommendations Document Evaluate Monitor 1 5 Closure CONTROL DEFINE 4 2 IMPROVE MEASURE 3 ANALYZE

19. Q.C STORY BOARD • Q.C Story board is representation of all steps taken from identification to solution and reviewable of taken probable solutions • Clear problem identification is the most imp part of Q.C Story Board • Different dept people needs to be involved in a whole process to have fresh ideas

20. PARETO ANALYSIS • Known as 80-20 Rule • Used for identification of Major problems • To find out 20% problems which causes 80% rejection

21. PARETO ANALYSIS Percentage Code of defect

22. FISHBONE DIAGRAM

23. 5 WHY ANALYSIS

24. 5 WHY ANALYSIS