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SIX SIGMA METHODOLOGY

SIX SIGMA METHODOLOGY. What is Sigma?. Sigma is a Greek Symbol which represents degree of variation in a process It is also termed as standard deviation How close are you in meeting your target. Definitions.

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SIX SIGMA METHODOLOGY

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  1. SIX SIGMA METHODOLOGY

  2. What is Sigma? • Sigma is a Greek Symbol which represents degree of variation in a process • It is also termed as standard deviation • How close are you in meeting your target

  3. Definitions • “A management driven, scientific methodology for product and process improvement which created breakthroughs in financial and customer satisfaction” – Motorola • A measurement scale that compares a process output with customer requirements • In statistical terms, “reaching Six Sigma” means that your process or product will perform with almost no defects (3.4 defects for every million activities)

  4. History of Six Sigma • Six Sigma was introduced by a Motorola engineer Bill Smith • Motorola started experimenting problem solving through statistical analysis in late 1970s • Motorola officially launched Six Sigma program in 1987 • Jack Welch launched Six Sigma at GE in 1996

  5. Six Sigma as a Business Strategy Increase SALES Increase SIGMA Profit 10-20% Profit Indirect PONC 30-40% Direct POC Increase Value through Increase Value through MARKETING Strategy SIX SIGMA Strategy

  6. Goals of Six Sigma Defects Reduction “Cost Of Quality” Improves Improved Customer Satisfaction Higher Profits

  7. Six-Sigma Metrics • Defect – any mistake or error that is passed on to a customer • Defects per unit (DPU) is the average number of defects discovered in produced units • Defects per million opportunities (DPMO) = Number of defects in per million opportunity • Defective – a product or service that is unacceptable to a customer due to one or more defects

  8. Sigma Value Vs Sigma Level Sigma Value Sigma Level Sigma is a measure of deviation. The mathematical calculation for the Standard Deviation is: The lower the Sigma Value, better the performance is The ‘Sigma Level’ of a process can be used to express its capability i.e., how well it performs with respect to customer requirements. Higher the Sigma Level, better the performance is

  9. Levels of sigma performance

  10. A 6 Sigma Process Upper Specification Limit Lower Specification Limit Customer target 0.00017% 1.7 ppm 0.00017% 1.7 ppm 6s 6s = 99.9997% of data inside the limits (Cp = 2) 0.00034% of points will be outside of the specification limits i.e., defects (= 3.4 parts per million out of spec.)

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