Essay --

ISix Sigma It is a Philosophy Anything less than ideal is an opportunity for feeler Defects addresss money Understanding processes and improving them is the most efficient way to achieve lasting results It is a Process To achieve this level of performance you lead to D efine, M easure, A nalyse, I mprove and C ontrol It is Statistics 6 Sigma processes will produce less than 3.4 defects per million opportunities13. Overview of Six Sigma PAIN, URGENCY, SURVIVAL COSTS OUT ripening TRANSFORM THE ORGANIZATION CHANGE THE WORLD 6 SIGMA AS A STATISTICAL TOOL 6 SIGMA AS A PHILOSOPHY 6 SIGMA AS A PROCESS14. The Villain Cost of Poorly Performing Processes level DPMO CP 3 2 308,537 Not Applicable 3 66,807 25%-40% of sales 4 6,210 15%-25% of sales 5 233 5%-15% of sales 6 3.4 15. C ost of Poorly Performing Processes The cost to deliver a quality product do-nothing account for as much as 40% of the sales price. For example, a laser jet printer purchased for $1,000 may have cost the manufactur er $ cd in rework just to make sure that you took home an average-quality product. For a company whose annual revenues are $100 million and whose operating income is $10 million, the cost of quality is roughly 25% of the operating revenue, or $25 ... ...n - Warranty - Scrap - Rework - Rejects30. COPQ v/s Sigma Level Cost of Quality % sales Sigma Level31. CTQ (Critical-To-Quality) CTQ characteristics for the process, service or process Measure of What is important to Customer 6 Sigma projects are designed to improve CTQ Examples Waiting time in clinic spell mistakes in letter % of valves leaking in operation32. Defect Opportunity Circumstances in which CTQ can fail to meet. Number of defect opportunities relate to complexity of unit. composite plant units Greater opportunities of defect than simple units Examples A units has 5 parts, and in each part there are 3 opportunities of defects Total defect opportunities are 5 x 3 = 1533. DPO (Defect Per Opportunity) Number of defects d ivided by number of defect opportunities Examples In previous case (15 defect opportunities), if 10 units have 2 defects. Defects per