Levels of sigma performance-Examples

1. Levels of sigma performance-Examples

2. DPMO Calculation In order to calculate the DPMO, three distinct pieces of information are required: • Number of units produced • Number of defect opportunities per unit (inspection items in a unit) • Number of defects DPMO = (Number of defects/ Total number of opportunities) x 1,000,000

3. DPMO - Example A manufacturer of computer hard drives wants to measure their performance. Over a given period of time, the manufacturer creates 83,934 hard drives. The manufacturer performs 8 individual checks to test quality of the drives. During testing 3,432 defects are recorded: • Defects 3432 • Total units produced 83934 • Defect opportunity per unit 8 • DPMO = 3432x1000000/ (8x83934) 5111.159 • Six Sigma Value 4.1

4. 6 Sigma Roles • Yellow Belt These are sessions conducted to disseminate Six Sigma benefits and awareness • Green Belt The role of the Green Belt is to bring the new concepts and tools of Six Sigma right to the day-to-day activities of the business • Black Belt The Black Belt is the full-time person dedicated to tackling critical change opportunities and driving them • Master Black Belt/ Champion Serves as a coach and mentor or consultant to Black Belts working on a variety of projects

5. 6 Sigma Roles

6. 6 Sigma Programs SIX SIGMA Elimination of DEFECTS from existing Products and processes SS Six Sigma plus elimination of WASTES from existing Products and processes LEAN SIX SIGMA LSS Elimination of DEFECTS from New Products and processes DESIGN FOR SIX SIGMA DFSS

7. 6 Sigma Programs QUALTIY (Six Sigma) EFFICIENCY (Lean) Critical to Quality (Customer) Cost of Production, Operations, Services Product standards(AQL, Reliability, Durability, etc.) Speed of Production, Operations, Services Operational Cost Process standards(AQL, Rejections, Rework ,etc.) Use of Resources in Operations Suppliers Quality Capacity building of people

8. 6 Sigma Methods The methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV • DMAIC is used for projects aimed at improving an existing business process. Define, Measure, Analyze, Improve & Control • DMADV is used for projects aimed at creating new product or process designs. Define, Measure, Analyze, Design & Verify

9. DMAIC Define: Define the problem, the process, and the project goals. In Six Sigma it is imperative that the problem is specifically defined. Measure: Measure and collect data that will determine the factors that have influence over the outcome of the process or procedure. Analyze: The data is analyzed using statistical tools to assess whether the problem is real (and solvable) or random, which makes it unsolvable within the Six Sigma framework Improve: If the problem is real, the Six Sigma team identifies solutions to improve the process based on the data analysis. Control: Control planning, including data collection and control mechanisms, is required to ensure that the solutions can be sustained to deliver peak performance

10. DMAIC – The Improvement Methodology Define Measure Analyze Improve Control