Six Sigma brief

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,#,QIA,Improve,Quality,Reduce,Cost,Productivity,Improves,Capture,Market,Provides,jobs and,more jobs,Modelsofthe relationshipsaffecting quality,andbusinessperformance,Deming,sModel:,less rework,less scrap,Increasecycletime,increasethroughput,betterquality,lowerprice,Overall,society,benefits,COST OF POORQUALITY,(,(COPQ),ExternalFailure Costs,WarrantyAdjustments,Repairs,CustomerService,ReturnedGoods,ReturnedRepairedGoods,Product Recalls,Product LiabilitySuits,OpportunityCosts,InternalFailure Costs,Scrap,Rework,RE-INSPECTION of Rework,DowngradingBecause of Defects,LossesCaused by VendorScrap,DowntimeCausedbyDefects,Failure Analysis,.,.,AppraisalCosts,ReceivingInspection,In-process Inspection,Laboratory Inspection,Outside LaboratoryEndorsements,SetupforTesting,MaintenanceofTest Equipment,Quality Audits,CalibrationofQuality Equipment,.,.,.,Prevention Costs,Quality Engineering,Designand Development of QualityEquipment,DesignVerification andReviewtoEvaluatethe QualityofNew Products,Quality Training,Quality Improvement Projects,Quality DataGathering Analysis andReporting,OtherProcess ControlActivitiesUsed to PreventDefects,Lost Opportunity,Scrap,Rework,Inspection,Warranty,Rejects,Lost sales,Late delivery,Engineeringchangeorders,Long cycle times,Expediting costs,Excessinventory,TheCostofPoor Quality,(,(COPQ,),)“Iceberg”,TraditionalQuality Costs,Additional Costs of PoorQuality,(intangible),(tangible,),),4-8,%,%,25-35%,(Easily Identified,),),(Difficult or impossibletomeasure),Lost Customer Loyalty,More Setups,SixSigmaPhilosophy,Weareinbusinesstomakemoney,Wemake money by satisfyingneeds,Weareabletosatisfy needs by doing,Everyneed/do pairisaninteraction,Theaim of customer focus is on improvingneed/do interaction,Repetition of thesame actionconstitute aprocess,Improve ourbusinessmeansimprovementofourprocesses,Customersneedproducts/serviceson-time,with zerodefects,withlowercost,Asprocess capabilityimproves,theproduct qualityincreases,Asquality increases,costsand cycle-timegodown,.,.,Thereduction of defects,cycle-time,costleadstoimprovedcustomersatisfaction,Ascustomersatisfactionimproves,thelikelihood of doing business increases,Asbusinessincreases,we(asindividual andsociety)grow andprosper,What is SixSigma?,Sigmaisa statistical unitofmeasurewhichreflectsprocess capability,.,.Thesigmascaleofmeasureisperfectlycorrelatedtosuch characteristicsasdefects-per-unit,partspermilliondefective,(,(PPM),anda probability of afailure/error.,Thesigmavalueindicates howoftendefects arelikelytooccur,.,.Thehigherthe sigma value,thelesslikelyaprocess willproducedefects.Assigmaincreases,costsgodown,cycletime goesdown,and customer satisfactiongoes up.,What is themeaning of quality,?,?,99%Good,(,(3.8 Sigma)99.9997%Good(6 Sigma),20,000lostarticlesofmail perhourSevenarticlesofmail lostper hour,Unsafedrinkingwaterfor almostOne unsafeminuteeverysevenmonths15 minuteseachday,5,000incorrectsurgicaloperations1,.,.7incorrectoperationsperweek,perweek,2 short or longlandingsatmostmajoroneshortorlonglanding every five,airportseach dayyearsateach airport,200,000 wrong drugprescriptionsperyear68wrongdrug prescriptionsper year,NoelectricityforsevenhourseachmonthOnehourwithout electricity every,34years,SixSigmaIs,.,SixSigmaisdisciplinedmethodologyfor continuousimprovementfor,Reducingprocess variability andkeeping it reduced,achieve benefits fromimprovements in:,betterproduct/process quality,reducescarpand rework,reducecycletime,betterproduct/process design,reducemajorexpanses,A toolset to makethatchangepractical,Empoweredpeople havethe controltheyneed to improvethe waythey work,A commonlanguagefordiscussing,measuring andcomparingprocesscapabilities,A powerful competitive advantage,.,-6-5,-,-4,-,-3-2,-,-1 X,+,+1+2,+,+3,+,+4,+,+5,+,+6,NormalDistribution,Shifted 1,.,.5,Process Capability,(,(Sigma)PPMYield,2308,53769,%,%,366,80793.3,%,%,46,21099,.,.3%,523399.98%,63.499.9997%,SigmaMeasures,-,-ProcessCapability,Performance,Level,SIGMA,%Yield,#of Defectsper,Million(DPM,),),A+,6,99.99966,3.4,A,5,99.9767,233,B,4,99.3790,6,210,C,3,93.3,66,807,D,2,69,308,537,F,1,31,691,462,Good,World-Class,Average,Good,World-Class,Average,Cost of,Quality%,1%ofsales,5-15,%,%of sales,15,-,-25%ofsales,25,-,-40%ofsales,C,93.3,66,807,3,Establishorganizationalmeasurements,Identifythesigmalevel,EstablishCOPQmeasurementprocess,Identifythemajorareasfor improvement,3 to 4sigmameans15,%,%to25%costofsales:,-Which means if yoursalesis,$,$100millions,you cansave up to$25millionsbyimplementingSix Sigma program,.,.,Thesavingsiscontinuous basis yearoveryear,What is theBenefitsofSixSigma,?,?,?,?,OutputMeasurement,Failure rate,(,(internal andexternal),Warrantycost,Repaircostperunit,Cycletime perunit,Cycletime fornewproductdevelopment,#of engineering changes,Supplierissues,WIPinventory cost,Finishedgoodsinventory,Defects productarrivalatcustomer,#of serviceevents,Learnhowthe companieslike Gene