6 sigma
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Six Sigma is a business management strategy originally developed by Bill Smith at Motorola in 1986 to improve processes and minimize defects. It aims for near perfect processes, with 99.99966% defect-free products or 3.4 defects per million opportunities. Six Sigma identifies roles like Champions, Master Black Belts, Black Belts, and Green Belts to lead projects using DMAIC or DMADV methodologies. While effective for process improvement, critics argue Six Sigma may lack originality, oversell consulting services, and focus narrowly on existing processes rather than innovation. Some also question its arbitrary standards and assumptions about normal distributions.
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6 sigma
- 2. • Six Sigma is a business management strategy originally Six Sigma is a business management strategy originally developed by Bill Smith at Motorola, USA in 1986. • The maturity of a manufacturing process can be described y gp by a sigma rating indicating its yield, or the percentage of defect‐free products it creates. • A six sigma process is one in which 99 99966% of the A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). • Motorola set a goal of "six sigma" for all of its l l f" "f ll f manufacturing operations, and this goal became a byword for the management and engineering practices used to g g gp achieve it.
- 3. • Bill Smith f ill i h first f formulated the particulars of l d h l f the methodology at Motorola in 1986. • Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Z d Zero D f t b d on th work of Defects, based the k f pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others.
- 5. • Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. processes • Continuous efforts to achieve stable and predictable p process results (i.e., reduce process variation) are of vital ( , p ) importance to business success. • Manufacturing and business processes have characteristics that can be measured analyzed improved and controlled measured, analyzed, controlled. • Achieving sustained quality improvement requires commitment from the entire organization, particularly from top‐level management.
- 7. • A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project. • An increased emphasis on strong and passionate management leadership and support. • A special infrastructure of " h l f f "Champions," " " "Master Black l k Belts," "Black Belts," "Green Belts", etc. to lead and implement the Six Sigma approach. • A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.
- 8. • Six Sigma projects follow two project Six Sigma projects follow two project methodologies inspired by Deming's Plan‐Do‐ Check Act Cycle. These methodologies, Check‐Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV. – DMAIC is used for projects aimed at improving an existing business process. DMAIC is pronounced as "duh‐may‐ick". duh‐may‐ick – DMADV is used for projects aimed at creating new p product or process designs. DMADV is pronounced as p g p "duh‐mad‐vee".
- 9. • D fi th Define the problem, the voice of the customer, and the project goals, specifically. bl th i f th t d th j t l ifi ll Define • Measure key aspects of the current process and collect relevant data. Measure • Analyze the data to investigate and verify cause‐and‐effect relationships. l h d d f d ff l h Analyze • Seek out root cause of the defect under investigation. • Improve or optimize the current process based upon data analysis using techniques Improve • Set up pilot runs to establish process capability. • Control the future state process to ensure that any deviations from target are Control corrected before they result in defects.
- 10. • Define design goals that are consistent with customer demands and the enterprise g g p Define strategy. • Measure and identify CTQs (characteristics that are Critical To Quality) product Measure and identify CTQs (characteristics that are Critical To Quality), product Measure capabilities, production process capability, and risks. • Analyze to develop and design alternatives create a high level design and evaluate Analyze to develop and design alternatives, create a high‐level design and evaluate Analyze design capability to select the best design. • Design details, optimize the design, and plan for design verification. This phase may Design require simulations. • Verify the design, set up pilot runs, implement the production process and hand it over Verify to the process owner(s).
- 11. Chi‐square test of independence and fits 5 Whys 5 Whys Regression analysis R i l i Histograms Control chart Analysis of variance Root cause analysis Quality Function Deployment Correlation Correlation (QFD) Run charts Cost‐benefit analysis ANOVA Gauge R&R SIPOC analysis (Suppliers, Inputs, Process, SIPOC analysis (Suppliers Inputs Process Pareto chart Outputs, Customers) Axiomatic design CTQ tree Pick chart Pick chart Taguchi methods Taguchi methods Business Process Mapping Design of experiments Taguchi Loss Function Process capability Failure mode and effects analysis (FMEA) y ( ) Cause & effects diagram TRIZ Enterprise Feedback General linear model Management (EFM) systems
- 12. Six Sigma identifies several key roles for its successful implementation. Six Sigma identifies several key roles for its successful implementation • Executive Leadership includes the CEO and other members of top management. They are responsible for setting up a vision for Six Sigma implementation. • Champions take responsibility for Six Sigma implementation across the organization. Champions also act as mentors to Black Belts. • Master Black Belts act as in‐house coaches on Six Sigma Apart from statistical Master Black Belts act as in house coaches on Six Sigma. Apart from statistical tasks, they ensure consistent application of Six Sigma across various functions and departments. • Bl k B l Black Belts apply Six Sigma methodology to specific projects. They primarily l Si Si h d l ifi j Th i il focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. • Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities, operating under the guidance of Black Belts.
- 13. Sigma DPMO % Defective % Yield Short‐Term Long‐Term Level Cpk Cpk 1 6,91,462 69% 31% 0.33 ‐0.17 2 3,08,538 31% 69% 0.67 0.17 3 66,807 6.7% 93.3% 1.00 0.5 4 6,210 0.62% 99.38% 1.33 0.83 5 233 0.023% 99.977% 1.67 1.17 6 3.4 0.00034% 99.99966% 2.00 1.5 7 0.019 0.0000019% 99.9999981% 2.33 1.83
- 14. • Lack of originality Lack of originality – Noted quality expert Joseph M. Juran has described Six Sigma as "a basic version of quality improvement", stating that "there is nothing new there. It includes what we used to call i thi th It i l d h t dt ll facilitators. They've adopted more flamboyant terms, like belts with different colors. • R l f Role of consultants l – The use of "Black Belts" as itinerant change agents has (controversially) fostered an industry of training and certification. – Critics argue there is overselling of Six Sigma by too great a number of consulting firms, many of which claim expertise in Six g , y p Sigma when they only have a rudimentary understanding of the tools and techniques involved.
- 15. • P t ti l Potential negative effects ti ff t – A Fortune article stated that "of 58 large companies that have announced Six Sigma programs, 91 percent have trailed the S&P 500 since". – The summary of the article is that Six Sigma is effective at what it is intended to do, but that it is "narrowly designed to fix an existing process" and does not help in "coming up with new products or disruptive technologies.“ g p p p g • Criticism of the 1.5 sigma shift – The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift as "goofy" because of its arbitrary nature. b fi bi – The 1.5 sigma shift has also become contentious because it results in stated "sigma levels" that reflect short‐term rather than long‐term performance: a process that has long‐term defect levels corresponding to 4.5 sigma performance is, by Six Sigma convention, described as a "six sigma process.”
- 16. • Based on arbitrary standards Based on arbitrary standards – While 3.4 defects per million opportunities might work well for certain products/processes, it might not operate optimally or cost effectively for others. – A pacemaker process might need higher standards, for example, whereas a Safety bin process might not need higher standards. Safety bin process might not need higher standards. – The basis and justification for choosing 6 (as opposed to 5 or 7, for example) as the number of standard deviations is not clearly explained. – In addition, the Six Sigma model assumes that the process data always conform to the normal distribution. The calculation of defect rates for situations where the normal distribution model does not apply is not properly addressed in the current Six Sigma literature.