17-MCE-19 TQM

ASSIGNMENT # 02

SUBJECT:
Total Quality Management

TOPIC:
Six Sigma (6σ) & Its Methodologies, Statistical Process Control
(SPC) & Its Tools

SUBMITTED TO:
Mam Romeeza Majeed

SUBMITTED BY:
Muhammad Danish

REGISTRATION NO.:
2017-UET-IEFR-MECH-FD-19
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SIX SIGMA (6σ) & ITS METHODOLOGIES

Definition of Six Sigma:
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent
standard deviation in statistics) from mean. Six Sigma methodology provides the techniques
and tools to improve the capability and reduce the defects in any process.
A process with “Six Sigma” capability means having 12 standard deviations of process output
between the upper & lower specification limits. Essentially, process variation is reduced so that
no more than 3.4 parts per million falls outside of the specification limits. The higher the sigma
number, the better.
The “Six Sigma” term also refers to a philosophy, goal and/or methodology utilized to drive
out waste and improve the quality, cost and time performance of any business. Six Sigma
implementation is achieved through a series of successful projects. Process improvements and
variation reduction are achieved through application of Six Sigma improvement projects,
which in turn, are executed following either the DMAIC (Define, Measure, Analyse, Improve,
Control) or DMADV (Define, Measure, Analyse, Design, Verify) methodologies. Black Belts
& Green Belts are the key players in execution of Six Sigma improvement projects.

Six Sigma Processes:

In practical terms, a Six Sigma process produces 99.99966% of all deliverables, called
opportunities, free of defects. Essentially, the process produces 3.4 defects per million
opportunities (DPMO). You can also think of Sigma levels as how far a process or deliverable
deviates from perfection. An important concept is to think of sigma defects as not meeting
customer expectations. Aiming for Six Sigma level, you have a high probability of producing
items that are well within specification. Several Sigma levels exist, each of which indicates the
number of allowed defects per million and thus the level of maturity of a process, as is indicated
in the table that follows:

Sigma Level Defects per Million Defects (%)

1 691,462 69

2 308,538 31

3 66,807 6.7

4 6,210 0.67

5 233 0.023

6 3.4 0.00034

7 0.019 0.0000019
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METHODOLOGIES OF SIX SIGMA

There are two major methodologies used within Six Sigma, both of which are composed of
five sections, according to the 2005 book “JURAN Institute Six Sigma Breakthrough and
Beyond” by Joseph A. De Feo and William Barnard.

DMAIC:
The DMAIC method is used primarily for improving existing business processes. The letters
stand for:
➢ Define the problem and the project goals.
➢ Measure in detail the various aspects of the current process.
➢ Analyse data to, among other things, find the root defects in a process.
➢ Improve the process.
➢ Control how the process is done in the future.

DMADV:
The DMADV method is typically used to create new processes and new products or services.
The letters stand for:
➢ Define the project goals.
➢ Measure critical components of the process and the product capabilities.
➢ Analyse the data and develop various designs for the process, eventually picking the
best one.
➢ Design and test details of the process.
➢ Verify the design by running simulations and a pilot program, and then handing over
the process to the client.
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Implementation of Six Sigma in Daily Life:

I will take an example to understand how six sigma can help in your daily chores, and apply it
in your businesses too:
Lose Weight Using Lean Six Sigma at Home:
• Define: You need to understand the benefits of the project, set up the timeline of your
project, and the team the project will get assigned to.
• Measure: Here, you quantify your problem. Gather all the mathematical and statistical
data available on your problem statement and record them to analyse in the next phase.
• Analyse: Consider diet and exercise as the key contributors to weight gain. However,
there may be other root causes, like some people are allergic to dairy products, and so
on. So, it is crucial to analyse the root causes that contribute to the problem statement.
• Improve: You now need a solution to improve your current state with all the data. You
would know what and when you are consuming and how much is your calorie intake in
a day.
• Control: This part is very crucial. You may say that I already reached my goal, then
why do I need to carry on with the process any longer. Well, if you do not control and
sustain your improvement plans, they are most likely to revert to the initial problem
state.

Companies Who Implemented Six Sigma Successfully:

➢ 3M.
➢ Amazon.
➢ Atos.
➢ Autoliv.
➢ BAE Systems.
➢ Bank of America.
➢ Becton Dickinson.
➢ Bechtel.
➢ Boeing.
➢ Caterpillar Inc.
➢ Computer Sciences Corporation.
➢ Convergys.
➢ Cooper Tire & Rubber Company.
➢ Credit Suisse.
➢ Damco.
➢ Deere & Company.
➢ Dell.
➢ Denso.
➢ Eastman Kodak Company.
➢ Evonik Industries.
➢ Ford Motor Company.
➢ General Electric.
➢ Inventec Corporation.
➢ Lionbridge.
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➢ Maersk.
➢ McKesson Corporation.
➢ Motorola.
➢ Mumbai's dabbawalas.
➢ Northrop Grumman.
➢ PolyOne Corporation.
➢ Raytheon.
➢ Sears.
➢ Shop Direct.
➢ Unipart.
➢ United States Army.
➢ United States Marine Corps.
➢ The Vanguard Group.
➢ Wipro.

STATISTICAL PROCESS CONTROL (SPC)

Statistical process control (SPC) is defined as the use of statistical techniques to control a
process or production method. SPC tools and procedures can help you monitor process
behaviour, discover issues in internal systems, and find solutions for production issues.

SPC Tools:
In 1974, Dr. Kaoru Ishikawa brought together a collection of process improvement tools in his
text Guide to Quality Control. Known around the world as the seven quality control (7-QC)
tools, they are:
1. Cause-And-Effect Diagram (Also Called Ishikawa Diagram or Fishbone Diagram).
2. Check Sheet.
3. Control Chart.
4. Histogram.
5. Pareto Chart.
6. Scatter Diagram.
7. Stratification (Also Called Flow Chart or Run Chart).

1. Cause-And-Effect Diagram:
This cause analysis tool is considered one of the seven basic quality tools. The fishbone
diagram identifies many possible causes for an effect or problem. It can be used to structure a
brainstorming session.

When to Use a Fishbone Diagram?

➢ When identifying possible causes for a problem.
➢ When a team’s thinking tends to fall into ruts.
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Example:
Fishbone Diagram of a “Wrong-sized Part”.

2. Check Sheet:
A check sheet is a structured, prepared form for collecting and analyzing data. This is a generic
data collection and analysis tool that can be adapted for a wide variety of purposes and is
considered one of the seven basic quality tools.

When to Use a Check Sheet?

➢ When data can be observed and collected repeatedly by the same person or at the same
location.
➢ When collecting data on the frequency or patterns of events, problems, defects, defect
location, defect causes, or similar issues.
➢ When collecting data from a production process.

Example:
Check Sheet of a Beverage Industry.
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3. Control Chart:
The control chart is a graph used to study how a process changes over time. Data are plotted in
time order. A control chart always has a central line for the average, an upper line for the upper
control limit, and a lower line for the lower control limit. These lines are determined from
historical data. By comparing current data to these lines, you can draw conclusions about
whether the process variation is consistent (in control) or is unpredictable (out of control,
affected by special causes of variation). This versatile data collection and analysis tool can be
used by a variety of industries and is considered one of the seven basic quality tools.

When to Use a Control Chart?

➢ When controlling ongoing processes by finding and correcting problems as they occur.
➢ When predicting the expected range of outcomes from a process.
➢ When determining whether a process is stable (in statistical control).
➢ When analysing patterns of process variation from special causes (non-routine events)
or common causes (built into the process).
➢ When determining whether your quality improvement project should aim to prevent
specific problems or to make fundamental changes to the process.

Example:
Control Chart of an Accounts Department.

4. Histogram:
A frequency distribution shows how often each different value in a set of data occurs. A
histogram is the most commonly used graph to show frequency distributions. It looks very
much like a bar chart, but there are important differences between them. This helpful data
collection and analysis tool is considered one of the seven basic quality tools.
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When to Use a Histogram?

➢ The data are numerical.
➢ You want to see the shape of the data’s distribution, especially when determining
whether the output of a process is distributed approximately normally.
➢ Analysing whether a process can meet the customer’s requirements.
➢ Analysing what the output from a supplier’s process looks like.
➢ Seeing whether a process change has occurred from one time period to another.
➢ Determining whether the outputs of two or more processes are different.
➢ You wish to communicate the distribution of data quickly and easily to others.

Example:
Histogram of Different People’s Age.

5. Pareto Chart:
A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or
money), and are arranged with longest bars on the left and the shortest to the right. In this way
the chart visually depicts which situations are more significant. This cause analysis tool is
considered one of the seven basic quality tools.

When to Use a Pareto Chart?

➢ When analysing data about the frequency of problems or causes in a process.
➢ When there are many problems or causes and you want to focus on the most significant.
➢ When analysing broad causes by looking at their specific components.
➢ When communicating with others about your data.
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Example:
Pareto Chart of a Hospital.

6. Scatter Diagram:
The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for
a relationship between them. If the variables are correlated, the points will fall along a line or
curve. The better the correlation, the tighter the points will hug the line. This cause analysis
tool is considered one of the seven basic quality tools.

When to Use a Scatter Diagram?

➢ When you have paired numerical data.
➢ When your dependent variable may have multiple values for each value of your
independent variable.
➢ When trying to determine whether the two variables are related, such as:
• When trying to identify potential root causes of problems.
• After brainstorming causes and effects using a fishbone diagram to determine
objectively whether a particular cause and effect are related.
• When determining whether two effects that appear to be related both occur with the
same cause.
• When testing for autocorrelation before constructing a control chart.

Example:
Scatter Plot of Weight of a Car and Its Mileage
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7.Stratification:
Stratification is defined as the act of sorting data, people, and objects into distinct groups or
layers. It is a technique used in combination with other data analysis tools. When data from a
variety of sources or categories have been lumped together, the meaning of the data can be
difficult to see. This data collection and analysis technique separates the data so that patterns
can be seen and is considered one of the seven basic quality tools.

When to Use a Stratification?

➢ Before collecting data.
➢ When data come from several sources or conditions, such as shifts, days of the week,
suppliers, or population groups.
➢ When data analysis may require separating different sources or conditions.

Example:
Stratification of the Data Came from Three Different Reactors.