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Revision R 10/14/14 Copyright Dale K. Mize Advanced Quality Engineering, Inc. 1 Introduction to Six Sigma Copyright 2014 Dale K. Mize Training materials are licensed to Advanced Quality Engineering, Inc. and used with permission of the author. Reproduction or other use of these materials without the express written permission of the author is prohibited. Permission is granted to reproduce specifically identified forms.

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Page 1: Revision R 10/14/14 Copyright Dale K. Mize Advanced Quality Engineering, Inc.1 Introduction to Six Sigma Copyright 2014 Dale K. Mize Training materials

Revision R 10/14/14Copyright Dale K. Mize Advanced Quality Engineering, Inc. 1

Introduction to

Six Sigma

Copyright 2014

Dale K. Mize

Training materials are licensed to Advanced Quality Engineering, Inc. and used with permission of the author. Reproduction or other use of these materials without the express written permission of the author is prohibited. Permission is granted to reproduce specifically identified forms.

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About your speaker Dale K. Mize, president of Advanced Quality Engineering, Inc. Has 26 years of

experience consulting and training and 21 years experience comprised of 4 years in customer service, 7 years in product engineering, and 10 years in manufacturing as a quality engineer, quality manager, and corporate director of quality assurance. Much of his career was spent with the General Electric Lighting Business Group, where he designed products, developed manufacturing processes an designed quality systems for high technology lighting products. During the five years he spent with Wagner Spray Tech Corp., he designed and implemented a comprehensive quality system based upon Total Quality Management principles.

He began implementing SPC in glass forming operations at General Electric in 1976 and has since implemented SPC into a multitude of processes, both manufacturing and service. Since 1988, he has consulted and taught for more than 150 organizations and has trained more than 10,000 persons in various quality management topics. From 1991 through 2008, he was adjunct faculty at The Center Business Excellence, University of St. Thomas, where he also was the Chair, Six Sigma Programs. He now holds a similar role at Normandale Community College and provides seminars regularly through the MNSCU, the South Dakota Technical Institutes and the Iowa Technical Colleges. Since 2008 he has been delivering Six Sigma training in Croatia and Slovakia. He is a senior member of the American Society for Quality, a Certified Quality Engineer and Certified Quality Auditor. He has presented papers and workshops on SPC at the Minnesota Quality Conference, at the Second International Applied Statistics in Industry Conference in Wichita, Kansas and the 1995, 1996, 1999, 2000 and 2001 TQM/ISO Symposia sponsored by South Dakota State University. He is co-author of the SPC training workbook, An Ounce of Prevention. He holds an AAS in Electronic Engineering Technology and a BS in Quality Management from the University of Minnesota.

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Contact Information

Dale K. Mize, CQE, CQAPresident

Advanced Quality Engineering, Inc.Telephone: (612) 860-0613

www.quality-inc.com 

Providing training and consulting services for organizations of all types since 1988

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Keeping it Simple

Quality

Those attributes of a product or service that meet the needs and expectations of

the user, as perceived by the user.

Quality is: Customer satisfaction

Quality requires: Leadership, Teamwork, Systems and Statistical Tools

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QUALITY CONTROLThe regulatory process through which we measure

actual quality performance, compare it with standards, and act on the difference. (Juran)

QUALITY MANAGEMENT SYSTEMThe specifically designed plans, tasks, and

programs within an organization to achieve quality. (Mize)

Other Definitions

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What is Six Sigma?

Six Sigma is a customer-driven approach that provides an overall framework for quality improvement. It is an analytically based, comprehensive system for improving customer satisfaction and reducing costs.

Six Sigma is all about process improvement and problem solving.

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99% Good

99% good

same as 1% bad

10,000 ppm

.99 x .99 x .99 x .99 x .99 = .95 or

95% probability

14,995 more parts to go!

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Need process emphasis, not output emphasis

Understand the nature of variation (bell curve or normal distribution)

Work for continuous improvement, reduce width of bell curve (Increase Cpk)

Not just make “parts to spec”

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Consider the chart below

Reaction vs. improvement

0102030405060708090

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Days

Average costs per unit, $

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Average costs approximately $40 per unit per day Typically accept that level as “normal” Firefighting or troubleshooting occurs until the spike is

brought back to “normal” Other systems compensate for this loss or cost and

maintain the “normal” level Management reporting systems do not signal unless a

spike occurs. Chronic level of errors or cost continues.

Reaction vs. improvement

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Changing Quality Assumptions

From To

Internal focus on financialsExternal focus on customersReactive ProactiveOutput emphasis Process emphasisDetection PreventionProduct oriented Organization orientedAin’t broke, don’t fix it Continuous improvementBlame placing Problem solvingCost or quality Cost and QualityPredominantly worker caused Predominantly management

causedDefects should be hidden Defects should be highlightedCentralized control Empowerment/ engagementQuality Department Everyone’s responsibilitySchedule first Quality first

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Unless you’re the lead dog,

the scenery never changes.

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The Model - DMAIC

Define Measure

Analyze

Improve Control

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First 3 steps

1. WHO - Identify the customer

2. WHAT - Identify the customer’s needs and expectations

3. HOW – How well do we meet these

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Six Sigma Strategy

Projects vs. organizational immersion Operations and the Cost of Goods Sold (COGS) gold mine  Involve administrative/service functions in six sigma

teams  Build on successes  Roll out to administrative/service functions  Communicate regularly  Celebrate results

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Project selection

Support business goals Clear connection to dollars Strong customer connection Choose project with identifiable goals and quantified

outcomes  Project scope; keep within the wherewithal of the six

sigma practitioner and team  Management must break roadblocks

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How is Six Sigma different?

It is project based It is a prescribed methodology, DMAIC It is customer focused It is full system driven

Management support is critical

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How is Six Sigma different?

It is not a quality management system, i.e. ISO9000-2000 It is not Lean Manufacturing It is not based on continuous improvement

Breakthrough Improvement!

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Lean Manufacturing

Objective the same as six sigma, to increase margins.

Relies upon measurements like six sigma

Drives cultural change like six sigma

Focuses on time and materials

Gets at the top layer of improvement opportunities

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Lean Manufacturing

Tendencies ofLean vs. six sigma

Waste/defect reduction Variation reduction

Experience and scientific and statistical process knowledge basis basis

Efficiency Efficiency andEffectiveness

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Process Capability Analysis

Thus, the Cpk tells us what the process doing,

while the Cp tells us what the process do; if we re-center it.

Drive these to 1.33 or better.

6s

LSL-USLpC

3

minimum zpkC

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Process Capability Analysis

Benchmarks (with distributions centered)

Cpk PPM out of tolerance % in tolerance

0.33 317,300 68.270.66 45,600 95.441.00 2,700 99.731.33 63 99.99371.50 6.8 99.999321.67 0.57 99.9999432.00 0.002 ---

(or 3.4*) (99.9996)

*When allowing for 1.5 s shift in the X.

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Final notes

“Everyone says something needs to be done, but this time it looks like it might be us.”

Will Rogers  

Six Sigma will not work any better than TQM, ISO 9000, Baldridge, Deming, etc., etc. unless people get serious about it. There’s no magic sprinkle dust. The model has to be used and people have to be held accountable for results. The results will then follow.