Essay Six Sigma

839 Words Mar 2nd, 2014 4 Pages
Lecture 5

SIX SIGMA

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COMPANIES USING
Six Sigma is in use in virtually all industries around the world. Some of companies can be listed as: • Motorola • Ericsson • General Electric • Sony • Ford Motor Co. • CITI bank
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WHAT IS SIGMA ?
• A term (Greek) used in statistics to represent standard deviation from mean value, an indicator of the degree of variation in a set of a process. • Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance

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WHAT IS SIX SIGMA?
• Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services. • A philosophy and a goal: as perfect as practically possible. • A methodology and a symbol
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• But in practice, process normally shifts at + 1.5 σ • Defective rate of 3.4 out of a million produced • This is the more practical rate

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Determining an Appropriate Metric

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• A defect or nonconformance is any mistake or error that is passed on to the consumer. • A unit of work is the output of a process or an individual process step. • A measure of output quality is defects per unit (DPU).

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DPU = Number of defects discovered

Number of units produced

Dpmo = DPU x 1,000,000/opportunities for error
Dpmo = defects per million opportunities

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Example
• An airline wishes to measure the effectiveness of its baggage handling system. A DPU measure might be lost bags per customer. If the average no of bags per customer is 1.8, and airline recorded 5 lost bags for 12000 passengers in one month, then

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5 dpmo 1,000,000  231.48 12,0001.8

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DMAIC Principle

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W H AT I S D M A I C ?
( Define,Measure,Analyse,Improve.Control )
• A logical and structured approach to problem solving and process improvement. • An iterative process (continuous improvement)
• A quality tool which focus on change management style.

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DMAIC Principle
• Define (D) • Identify customers and their priorities • Identify suitable Six-Sigma project based on business objectives and customer needs and feedback • Measure (M) • Determine how to measure process and how

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