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Using and understanding Data and Systems Setting Goals for Improvement Team Building and Involving Employees
Involving all employees is very important to Six Sigma. The company must involve all employees. Company must provide opportunities and incentives for employees to focus their talents and ability to satisfy customers. Defining Roles: This is important to six sigma. All team members should have a well defined role with measurable objectives.
Bigger companies have resources internally who are trained in Six Sigma and also have 'Train the Trainer' programs using which they churn out many more Six Segma instructors. Also many bigger companies encourage the employees to learn Six Sigma process by providing Green Belts/Black Belts as mentors. Effectively applying the Six Sigma techniques is difficult compared to actually learning the techniques in a class. Big companies make Six Sigma as part of the Goals for employees and provide incentives for employees who undergo training and mentor colleagues. Many assume that that Six Sigma works for bigger companies only as they produce in volumes and have thousands of employees. This notion is not true and Six Sigma can be effectively applied for small businesses and even companies with fewer than 10 employees.
DMAIC
Define opportunities Measure performance Analyze opportunity Improve performance Control performance
This cycle is repeated until you see an improvement. Once an improvement is found, its documented and the knowledge is spread across other units in the company so they can implement this new process and reduce their defects per million opportunities.
Confidence Limits
Confidence limits are the lower and upper boundaries of a confidence interval. In our Acme example, the limits were 20 and 24.
Confidence Level
The confidence level is the probability value attached to a given confidence interval. It can be expressed as a percentage (in our example it is 95%) or a number (0.95).
A Web master who wishes to estimate her mean daily hits on a certain webpage. An environmental health and safety officer who wants to estimate the mean monthly spills.
A Web master who wishes to estimate her difference in mean daily visitors between two websites. An environmental health and safety officer who wants to estimate the difference in mean monthly spills between two production sites.
Here we are making an assumption that the underlying data we are working with is distributed like the bell curve shown. The most common confidence interval used in industry is probably the 95% confidence interval. If we were to use its formula on many sets of data from the population, then 95% of the intervals would contain the unknown population mean that we are trying to estimate. And 5% of the intervals would not contain the population mean. 2.5% of the time, the interval would be low, and 2.5% of the time, the interval would be too high. The probability is 95% that the interval contains the population parameter. The 95% value is the confidence coefficient, or the degree of confidence. The end points of the interval are called the confidence limits. In the graphic on the previous page, the endpoints are defined by
This interval represents the most likely distribution of population means, given the sample's size, mean, and the population's standard deviation. 95% of the time, the population's mean will fall in this interval.
The confidence interval (C.I.) includes the area under the curve in between the critical values, excluding the tail areas (the risk). The entire curve represents the most likely distribution of population variances (sigma squared), given the sample's size and variation.
This interval represents the most likely distribution of population variances, given the sample's size and variance. 95% of the time, the population's variance will fall in this interval
Determine all the possible opportunities for problems Pare the list down by excluding rare events, grouping similar defect types, and avoiding the trivial Define opportunities consistently between different locations
Proportion Defective (p): p = Number Of Defective Units / Total Number of Product Units
DPU
Number
Of
Defects
Total
Number
Of
Product
Units
The probability of getting 'r' defects in a sample having a given dpu rate can be predicted with the Poisson Distribution Defects Per Opportunity - DPO DPO = no. of defects / (no. of units X no. of defect opportunities per unit) Defects Per Million Opportunities (DPMO, or PPM) DPMO = dpo x 1,000,000 Defects Per Million Opportunities or DPMO can be then converted to sigma & equivalent Cp values (see sigma table)
dpo = no. of defects / (no. of units X no. of defect oppurtunities per unit) = 9/(150 X 8) = .0075 dpo dmpo = dpo x 1,000,000 = .0075 X 1,000,000 = 7,500 dpmo
What are the equivalent Sigma and CP values? See Sigma Table.
Yield = 1 - p = .990 Z Table value for .990 = 2.32 Estimate process capability by adding 1.5 to reflect the 'real-world' shift in the process mean
This value can be converted to an equivalent CP by dividing it by 3 : CP = 3.82/3 = 1.27 Note: Cpk cannot be estimated by this method
Sigma Table
Yield .840 .870 .900 .930 .935 .940 .945 .950 .955 .960 .965 .970 .975 .980 .985 .990 .995 .998 .999 .9995 .99975 .9999 .99998 dpmo 160,000 130,000 100,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 2,000 1,000 500 250 100 20 Sigma () Cp Equiv. COPQ (Cost of Poor Quality) 2.50 2.63 2.78 2.97 3.01 3.05 3.10 3.14 3.20 3.25 3.31 3.38 3.46 3.55 3.67 3.82 4.07 4.37 4.60 4.79 4.98 5.22 5.61 0.83 0.88 0.93 0.99 1.00 1.02 1.03 1.05 1.06 1.08 1.10 1.13 1.15 1.18 1.22 1.27 1.36 1.46 1.53 1.60 1.66 1.74 1.87 5% 10% 20% 30% 40%
.9999966
3.4
6.00
2.00
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