1

Six Sigma






Page 1
What is 6o activity?
1. What are the statistics ?
2. Solution of the Practical Problem
3. What is the 6oconcept ?
4. 6o as the Business Strategy
5. 6o Application
6. 6o Activity Process
7. Comparing other tools
8. 6o Philosophy

Page 2
Low
Spec
High
Spec
VARIATION is the enemy!

"Always know the language of the enemy."
WORLD CLASS QUALITY
Providing a
BETTER product or service,
FASTER, and
at a LOWER COST
than our competition.
Originally: Metric Based on the Statistical Measure Called
Standard Deviation

Expanded To:
What is Six Sigma?

Page 3
1. What are the statistics ?
Population & Sample
Sample
Population
N 1,000
Measure 10 samples
(Spec. : 1004)
You may say This Population is Good because all the samples data are located
between LSL & USL. BUT, If you estimate the defect rate using statistical analysis,
this population has the probability of 2.8% defects per unit.
Then this is - we call - An epidemic quality defect level.
Measuring defect rate on process through an expanding statistical concept,
we can use measuring process capability.








USL
(Upper
Spec
Limit)
LSL
(Lower
Spec
Limit)
What is 6o activity?
96 97 98 99 100 104 101 102 103
Total inspection is
impossible !
Statistical variables
(mean, variance)
estimate population

Page 4

USL USL
T

USL USL
T
USL USL
T

Precise but not Accurate
Accurate but not Precise
Shifting to Target &
Reducing Variation
Shift to
Target
Reducing
Variation
2. Solution of the Practical Problem . What is 6o activity?
Object
of 6o is

Shift to
Target

Reducing
variation

Page 5
Center of Process:
Process Variance:
Process Standard Deviation:
2
o = o
Graphical Meaning of y and o
n
) y y (
n
1 i
2
i 2

= o
n
y
y
i
n
1 i=
E
=
2

Page 6
Typical Areas under the Normal Curve
68.27%
95.45%
99.73%
99.9937%
99.999943%
99.9999998%
+4o +5o +6o +1o +2o +3o -2o -1o -4o -3o -6o -5o 0
Graphical View of Variation and
Six Sigma Performance

Page 7
VARIATION: COMMON AND SPECIAL CAUSES
PIECES VARY FROM EACH OTHER:
BUT THEY FORM A PATTERN THAT, IF STABLE, IS CALLED A DISTRIBUTION:
DISTRIBUTIONS CAN DIFFER IN:
SIZE SIZE SIZE
SIZE SIZE SIZE SIZE
SIZE
SIZE SIZE
LOCATION SPREAD SHAPE
. . . OR ANY COMBINATION OF THESE
Normal Distribution
Each unit of measure is a numerical value on a continuous scale.
Graphical View of Variation
and Six Sigma Performance

Page 8
6o Quality means that area
of the estimated normal
distribution is located between
USL&LSL with 6 o.

In that case area of
the outlier spec.
(In other words estimated
defects) is just 3.4 PPM.
o : Standard Deviation Statistic index measures how much is data apart from target value
3.4ppm
Target USL
LSL
+ 6 o - 6 o

+ 3 o - 3 o

6.68%
3. what is the 6o concept ? . What is 6o activity?
Statistical Definition of 6o
3
6

Page 9
6 3.4

5 233

4 6,210

3 66,807

2 308,537
o PPM
1 misspelled word in all of the books
contained in a small library

$340 indebtedness per $100 millions assets

1.8 minutes per year
1.5 misspelled words per page in a book

$6.7 millions indebtedness per $100 millions
assets

24 days per year
. What is 6o activity?
6o as the Business Strategy
3. what is the 6o concept ?

Page 10
In all Design, Manufacturing, and SVC processes
Applying for 6o statistic Tools & Processes
To find factors causing defects
Acting the Analysis and Improvement
Through the Defect Reduction, Increase Yield
& Total Customer Satisfaction
Management Innovation Tool contributes to
Management Output
Achieving
3.4 PPM
(3.4 Defects Per Million)
What is 6o activity?
PPM : Parts per Million
. What is 6o activity?
6o as the Activity
3. what is the 6o concept ?

Page 11
1. It is a statistical measurement.
2. It is a improvement tool.
It tells us how good our products, services, and processes really are.
6o helps us to establish our course and gauge our pace in the race for total
customer satisfaction.
Its a full packaged tool applying to design, manufacturing, sales& SVC.
3. It is a business strategy.
It can greatly help us gain a competitive edge
As you improve the rating of a process, the product quality improves and costs
go down. Naturally, the customer becomes more satisfied as a result.
4. It is a philosophy.
This is one of working smarter, not harder.
Also it makes fewer and fewer mistakes in everything we do.
. What is 6o activity? 4. 6o as the Business Strategy
3

Page 12
Ground Fruit
Logic and Intuition
Wall of 3o
Low Hanging Fruit
Seven Basic Tools
Bulk of Fruit
Process Characterization and
Optimization
Fruit-bearing 6o
Sweet Fruit
Design for Manufacturability
Wall of 4o
Wall of 5o
Harvesting the Fruit of 6o
. What is 6o activity? 4. 6o as the Business Strategy

Page 13
1. CTQ
2. DPU / DPMO
3. Z Value
4. Process Capability Index
5. Rolled Throughput Yield (RTY)
#. 6o Common term

Page 14
1. CTQ
Definition of CTQ
Customer states as critical to quality
of product, service or process.
Main purpose of CTQ control is selecting
the factors to the most important to customer.
It is not hard to do, but right to do!

Ex.) Spec. of anything part
Accuracy and reliability of billing
statements
Time to repair
Courteousness
Most CTQs are customer-driven,
but risk, economics, and regulation
may drive others.
Typical Tools
Customer surveys
Focus Groups Interview
Customer needs Mapping
Quality function deployment(QFD)
Quick Market Intelligence
Logic Tree
Pareto Diagram


#. 6oCommon term

Page 15
2. DPU / DPMO
Defects Per Unit : Number of defects per unit

Judging the process as No good, we could not know if it had a defect.
So 6o handling it.

Ex) AClaim report has 10 blanks, 2 blanks are wrong
DPU= Defect / Unit = 2 / 1 = 2
Defects Per Opportunity : Number of defects related opportunities per unit

Expanding concept of DPU by opportunities

Ex) AClaim report has 10 blanks, 2 blanks are wrong
2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2
Defect Per Million Opportunities : Value of DPO x 1,000,000,

Changing DPO to million unit because 6o uses PPM(Part Per Million) usually

Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000
DPU
DPO
DPMO
#. 6o Common term

Page 16
3. Z Value
Definition of Z Value
It is standard normalized value for various
normal distributions to make easy
statistical analysis.
* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean()
** Standard normal distribution : mean is 0, standard deviation is 1 normal distribution


*
**
T=
1 o
USL LSL
X -T

Z =
Concept of Z Value
In a Process, if six standard deviations are
between spec.(USL, LSL), then we call
6o level .

It is good process that has 3.4ppm, that is
3 or 4 defects per million.

Z is ratio value that difference between
X(USL or LSL) and target is divided
stadard deviation (o).
That is numeric part of oLevel.
When Z is 6, it is 6o level.
***
*** USL : Upper Spec Limit / LSL : Lower Spec Limit

#. 6o Common term

Page 17
4. Process Capability Index
What is Process Capability?
- When the process is stable, it should
be measured by degree of satisfying
limits.

- Computing Cp, Cpk to know
How much mean is shifted and
variation is good.

- Cpk considers shifting mean.

- K value is deference target(T) from
mean.
1
process variation
design tolerance
+3 -3 +6 -6
Cp =
Design tolerance
Process variation
Cpk = Cp(1-K)

| T- |
(Upper limit-Lower limit)/2
K =
As Unique capability of the process, reflects uniformity degree of producing product.
Process Capability Index
T
#. 6oCommon term
4

Page 18
5. Rolled Throughput Yield
Rolled throughput yield is probability ratio to accept for all processes.
Final
Good
Process
Defect Ratio
Loss by
un-control
Input
Process 1 :
99% Accept ratio
Process2 : 92%
Process3 :
93%
Final
Inspection
: 97%
RTY
Control
Process
defect
ratio
Control
*
* RTY : Rolled Throughput Yield
RTY = 0.99 X 0.92 X 0.97 X 0.97 = 85.7%
Object Productivity elevation through
quality improvement
Apply
Defect of all processes, Equipment
Model Change Loss
Tool 6
Method 1person 1Project, Team activity
Added Improvement
for hidden factory
#. 6oCommon term

Page 19
Pareto Diagram of Effects
(for the factors affecting Process)
Size of
coefficient

(A)

(B)

(C)
Knowledge-gaining Tools
(D)
(E)

Page 20
Process Flow Diagram
Process Step
Output
Decision?
Input
No
Yes
Knowledge-gaining Tools

Page 21
Quality Function Deployment (QFD)
Design
Correlation
Customer Requirements
Design Requirements
Knowledge-gaining Tools

Page 22
Knowledge-gaining Tools
Probability Distributions
Exponential
Parabolic
Normal
Uniform

Page 23
Cause & Effect Diagram
Causes or
Sources of
Variation
Manpower
Methods
Effect or
Response
Machines
Measurement
Miscellaneous
Materials
Knowledge-gaining Tools
5

Page 24
Component
Failure
Mode
Failure
Effect
S Cause O D R Fool Proof Plan
Failure Mode and Effect Analysis
S: Severity, O: Occurrence,
D: Detection, R: Risk Priority Number
R = S O D
Knowledge-gaining Tools

Page 25
Knowledge-gaining Tools
Scatter Diagram
(from Doralese Blending & Compression Process)
Magnesium Stearate Concentration
Tablet
Hardness

Page 26
Regression Modeling
5 10 15 20
5
10
15
20
x
y = 18 - .65x
y
Knowledge-gaining Tools

Page 27
Control Chart
UCL
CENTERLINE
LCL
Time
y
Knowledge-gaining Tools

Page 28
6. Other terms #. 6oCommon term
1. QFD - Quality function deployment
2. FMEA - Failure Mode & effect analysis.
3. ANOVA - Analysis of Variance
4. Gage R&R - Gage Repeatability & reproducibility.
5. DOE - Design of experiments.
6. RSM - Response surface methodology
7. DMAIC - Define measure analyse improve control
8. DFR - Design for reliability.

Page 29
1. Quality & Failure Cost
2. Paradigm Shift
3. Character of 6o
4. 6o Case Study
. Why should we do 6o?
6

Page 30
1. Quality & Failure Rate
* Average of the SVC Defect rate of Home Appliance products
Trend of Quality Index
*
SVC
Defect
Rate
(%)





Quality
Innovation
Tool

. Why should we do 6o?
96 97 98 2002 93

Page 31
Generally controlled F-Cost has small portion considering of Hidden Loss
Traditional F-Cost
( Easy Definition)
Inspection
Scrap
Rework Reject
SVC
Loss Opp. Sales
Delivery Delay
Brand Image Down
Office Loss
Over Storage
Over Rework
Long cycle time
Design Change
Potential(Additional)
F-Cost
(Difficult to measure)
. Why should we do 6o? 1. Quality & Failure Rate

Page 32
2. Paradigm Shift
Old Belief New Belief
$ $

Quality Improves
Internal&
External Failure
Costs
Appraisal
& Prevention
Costs
4o
Increased Quality
means Higher Cost
4o
5o
6o
$
$

Quality Improves
Internal &
External Failure
Costs
Appraisal
& Prevention
Costs
Increased Quality
reduces Total Cost
Internal Failure : Scrap / Remake / Supplier Rework
External Failure : Cost to Customer / Warranty Cost / Compliant Adjustments / Returned Material
Appraisal : Inspection / Test / Quality Audits / Test Equipment
Prevention : Quality Planning / Process Planning / Process Control / Training
. Why should we do 6o?
Paradigm Shift for Quality
The high quality producer is the low cost producer not expensive.

Page 33
Comparing 6o with 3o
The 3 o Company The 6 o Company
Spends 15~25%of sales dollars on cost
of failure

Produces 66,807 ppm opportunities

Relies on inspection to find defects


Believes high quality is expensive


Does not have a disciplined approach
to gather and analyze data

Benchmarks themselves against their
competition

Believes 99% is good enough

Define CTQs internally
Spends 5%of sales dollars on cost of
failure

Produces 3.4 ppm opportunities

Relies on capable processes that dont
produce defects

Knows that the high quality producer is
the low cost producer

Use Measure, Analyze, Improve, Control
and Measure, Analyze, Design

Benchmarks themselves against the best
in the world

Believes 99% is unacceptable

Define CTQs externally
. Why should we do 6o? 2. Paradigm Shift

Page 34
Practical Meaning of 99% Good
20,000 lost articles in mail per hour.

Unsafe drinking water almost 15 minutes each day

5,000 incorrect surgical operations per week

2 short or long landings at most major airports each day

200,000 wrong drug prescription each year

No electricity for almost 7 hours each month
4 o = 99.38%
. Why should we do 6o? 2. Paradigm Shift

Page 35
Traditional Approach 6 Approach
%(Defect Rate)

Discrete Data

Satisfaction for Mfg
Process
Spec Outlier

Experience + Job

Bottom Up

Mfg Process
o

Discrete + Continuous Data

Customer Satisfaction

Variation Improvement

Experience + Job +
Statistical Ability
Top Down

Design, Mfg, Sales, SVC
ISSUE
Index

D a t a

Target

Range

Method

Action

Application
Traditional Quality / 6o Quality Method
. Why should we do 6o? 3. Character of 6o
7

Page 36
Pursue common goal
Control main factors at upstream
Apply Statistics on all Biz.
Support Statistics S/W
Data analysis by experiment
Make decision base on Data
Innovation through all Biz.
Reduce claim and rework
Easy to access difficult problem
Foolproof for statistics
Make indistinct facts clear
Exclude wrong ideas & prejudice
Good Point of 6o
. Why should we do 6o? 3. Character of 6o

Page 37
Benefits and superiority of 6o
Benefits :
Superiority Variety of applications : Can apply all industry include financing Biz.
3P Focus & reasonable index for appraisal
Not only product and service, but also process and quality of human resource
can be clear the goal and status by measuring.
High Effect of Investment
No invest on hardware, only on human resources.
Clearness of effect for cost
Output can be estimated clearly by financial part take part in which control
cost and benefit form the beginning of project.
Data driven mind & easy to use statistics Tool.
Through experimental data analysis indistinct fact can be clear.
Exclude experience and prejudice.
Can handle statistics by the S/W package(Minitab).
. Why should we do 6o? 3. Character of 6o
- Decrease cost of loss, Improve quality of product and service ,
satisfy the customer
- It can make clear the output of Business.
* 3P : Product, Process, People
*

Page 38
5. 6o Application
Selecting CTQ to meet customer needs
Decision reasonable Tolerance
Guarantee of the CTQs capability analysis
Improvement serious problem using S/W
Real Time Monitoring system
CTQ Control system
Improvement cycle time and accuracy
Cost Improvement
Guarantee for the Design completion
in developing stage
Quality assurance in manufacturing
stage
Maximizing for sales & SVC
6o is a tool that applies to all business systems - Design, Manufacturing,
Sales and SVC
. What is 6o activity?
R&D
6o
Manufacturing
6o
De-
sign
Sales
&SVC
Mfg.
6o
Transaction
6o
Design
Mfg.
Sales&
SVC

Page 39
C
p
: Process Capability Potential (assumes a centered process)
C
pk
: Process Capability (takes into consideration a shift in average)
|
.
|

\
|
o

=
3
LSL y
or
3
y USL
min C
pk
=
o

=
6
LSL USL
C
p
dpm
45,500
133,600
16,400
6,900
2,700
55
< 1PPM
.0018
<< 1PPB
.67
.5
.8
1.0
.9
1.33
1.67
2.0
3.0
4.5
15.0
7.0
Cp
LSL LCL UCL USL
TARGET
Specification Width
Process Width
Measures of Quality

Page 40
C
P
= 2.0
C
PK
= 1.5
dpm = 3.4
Formal Definition of a Six Sigma
Capable Process

Page 41
Is It at all cost? o
6
2 3 4 5 6 7
Optimal Point
DFSS
Design for six
sigma
Typical
Six Sigma Barrier
Total Cost
Sigma Rating
8

Page 42
+ There is a correlation between a company's COPQ( cost of
poor quality) and the o rating of its key processes
2 3 4 6
5
10
15
20
30
40
25
35
COPQ (% of Sales)
Sigma Rating
5
Why Six Sigma?

Page 43
Where Does the Cost of Poor Quality
(Waste or Muda) Come From? ...
Internal Failure Costs
External Failure Costs
Appraisal Costs
Prevention Costs
Lost Opportunity Costs


The Cost of Poor Quality

Page 44
DEFECT REDUCTION
Note: The 1.5 sigma shift is included.
+ A 4o company will spend >10% of revenue on internal and external
repair
+ A 6o company will spend <1% of revenue on internal and external repair

>> 100x
Average
Company
Best in Class
10
100
10K
1K
100K
Defects / M
66810
6210
233
3.4
3 2
1
4 5 6 7
Sigma
Why Six Sigma?

Page 45
Identify Customer-Driven
CTQ (Critical to Quality)
Characteristics
Identify Key Processes that
cause Defects in a CTQ
Characteristics
For Each Product or
Process CTQ



Measure, Analyze, Improve,
& Control
6ois a rigorous analytical
process for solving problem!!!
6. 6o Activity Process . What is 6o activity?
1. Who are your customers?
- Internal / External
2. What do you provide your customers?
3. What is critical to quality for your customers?
1. What are your internal processes for
providing your product or service CTQs to
your customers?
2. Where do defects occur in these processes?
D
Practical Problem
Measurement System
Yield Calculation
Process Mapping
o Calculation
Benchmarking
Pareto Chart & Stratification
Cause & Effect Diagram
DOE
Brainstorming
Action Workout Techniques
Piloting
Control Mechanism
Control Chart
Procedures
M
A
I
C
6o Activity Process(manufacturing & Transaction)
*
**
* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical.
** D : Define

Page 46
Example of development process apply R&D 6o
R&D
6o
Kick
-Off
Evaluation
meeting for
present condition
Evaluation
meeting for
basic
concept
Evaluation
meeting for
planning
confirm
E/S
drawing
confirm
Custo-
mer
Needs
Survey
QFD
S-1
Spare
CTQ
Selec-
tion
Similar
process
Data
gathering
Z Value
of CTQ
Analysis
Meeting
for CTQ
Check
Z Value
optimize,
Design
improve
QFD
S-2
Design
FMEA
Process
FMEA
Development
Process
E/S
making
Development
drawing
confirm
Income
Parts
E/S
Quality
meeting
P/L
Making
P/L
Quality
Meeting
Income
parts
P.P
Making
P.P
Quality
meeting
CTQ
Data
for new
parts
gather-
ing
Activity
for
process
improve-
ment
CTQ
for new
parts
Confirm
CTQ
deci-
sion
Z Value of
CTQ
confirm
6. 6o Activity Process . What is 6o activity?

Page 47
7. Comparing other tools
- Define/
Measurement
- Variance of
CTQ
- Present con-
dition Analysis
- Improved
by experts
Idea
- Control by
control chart
- Process
4M control
Measure
- Symptoms
- Frequency
- Analysis for
statistics
- Effect analysis
caused factors
- Optimizing
condition by
statistical
analysis
Others Others
6o 6o
- Discrete Data
- Difficult to apply practical
problem because of
complextity
- Discrete+Continuous
data
- Easy to apply because
of supporting statistical
software.
Analysis Inprovement Control
- Control by
PTS
(CTQ,
Benefits)
Focusing
experience/
technology
* PTS : Project Tracking System
*
By Improvement Process
. What is 6o activity?
9

Page 48
7. Compare with other tool
Detecting process
defects
Product managing
compare with spec.
Judging each
persons Know-How
Manual Data
gathering & analysis
Control process
variation
Judging the statistic
Data
Simple & Effective
analysis using the
S/W
Prevention Control
vital few factors
Managing Tool Improvement Tool
Selecting Line
Do process FMEA
- Selecting Cost issue
process view of customer
Conform CTQ process
Sorting the process
- Just need control process
- Important control process
- Law application process
- Variation improvement

100ppm / 6o application
according to sorting
process

100ppm / 6o
. What is 6o activity?
100ppm 6o
100ppm / 6o Application

Page 49
CTQ(Y) = F( X1, X2, X3, ... Xn )
Y X
Focusing Point
6o activity is selecting the cost issue
problem on some system in view of
customer.
This is we called CTQ and
We achieved 6o target through
the 6o process just selecting CTQ

Also, 6o activity is focusing
the causing factor(x1,x2...xn),
not selecting CTQ itself
Dependent
Output
Effect
Symptom
Monitor
Independent
Input-process
Cause
Problem
Control
X factor effects on CTQ(Y) has
the vital few 20% & trivial many
80%.
. What is 6o activity? 8. 6o Philosophy

Page 50
We dont know what we dont know.

If we cant express what we know in the form
of numbers, we really dont know much about it.

If we dont know much about it,
we cant control it.

If we cant control it,
we are at the mercy of chance.
8. 6o Philosophy . What is 6o activity?

Page 51
Our survival is dependent upon growing the business.
Our business growth is largely determined by customer satisfaction.
Customer satisfaction is governed by quality, price, and delivery.
Quality, price, and delivery are controlled by process capability.
Our Process capability is greatly limited by variation.
Process variation leads to an increase in defects, cost, and cycle time.
To eliminate variation, we must apply the right knowledge.
In order to apply the right knowledge, we must first measure it.
Measure the problem, well get the right knowledge.
. What is 6o activity? 8. 6o Philosophy

Page 52
At the beginning of 80s, In the Japanese
market, Motorolas beeper lost its name
value because of the quality difference
compared to Japans

In 1981 they tried to meet a challenge to
improve quality 5 times in 5 years and they
couldnt.

They developed a consistent process base
on statistical knowledge.

In 1987, they established 6 goal
as a key initiative.
In 1995 GE launched 6 process
to overcome a difficult business
environment and to challenge
World Class Quality.

They made new processes such as
Productivity,Inventory Return and NPI,
but improvement was delayed
because of defects in processes.

GE thinks World Class Quality is
big challenge. GE will focus on
6 process for next generation .
4. 6o Case Study . Why should we do 6o?
Start : Motorola Prosperity :GE
Start & Prosperity

Page 53
MOTOROLA T I G E SONY
Introduce


Outcome



Character
-ristics


Remarks
1987 1988 1995 1997


Q. Cost Down Q. Cost Down Q. Cost Down By 2000 years
$3.2billion 1988:30% $3.8billion Train 2,000
1993:7.4% Black Belts

Origin of 6 Adopt to all Biz. First in Japan
(Quality level
elevated 100 times
in 4 years)

Culture harmony TOP DOWN Train and do pjt. Consult with
Western & Oriental Quality Train 6 Academy
. Why should we do 6o?
Cases of other companies
4. 6o Case Study
10

Page 54
Output of other companies
6o do the role of Boundaryless Behavior.
Organization become learning & logical
Use 6o as worldwide common language.
GE believes that 6o would take part
central role in the future.
G E G E
Motorola Motorola
Motorola reached 5.5 level in 1992.
Outcome is $3.2billion from1987 to 1992.
. Why should we do 6o?
0
200
400
600
800
1000
1200
96 97 98
Costs
Benefits
4. 6o Case Study
Qualitative output Benefits

Page 55
1. Key Factor for Success of 6o
2. 6o Operating system
3. Project tracking system
4. Case study for Infra.
. How to Launch 6o?

Page 56
1. Key Factor for Success of 6o
Need Top Down Drive
Need Top managements strong will for 6.
Top managements strong and periodical
announcement about 6 policy.
All employees must participate...
Not only manufacturing part, but also
nonmanufacturing part should join the program
Focus on Customers requirements.
6o as Pan-Companys common standard.
Common language .(CTQ, , Cp,Z ....)
Avoid personal translation about 6.
All of Goal and target are represented as scale.
Basic process for all of projects.
. How to Launch 6o?
Start at Customers voice.
CTQs from Customers voice,
Improve the item which has big impact first!
Need Training Program for All employees
Complete understanding for 6 program.
Hard training for all employees.
Need resource investment resolutely.
Construct Infra
Need successful case study project.
Resource reformation for organization and system.
Reasonable appraisal and reward system.
System requirement Methodology

Page 57
* Champion Review : Decision making meeting that controls progress by project steps(Selecting theme Output review)
Champion
- 6o Operating
Project Team
- Operating Project
- Achieving 6o level for CTQ
MBB(Master Black Belt)
- Supporting 6skill
Coaching/Supporting
Request supporting
Chief of executive division
- 6o Driving
- 6o Involvement & Commitment
Champion
Review
. How to Launch 6o? 2. 6o Operating system

Page 58
. How to Launch 6o? 2. 6o Operating system
Champion
Definition
Chief of 6o operating

Chief of business groups
(Chief of OBU, Business
Executives, Chief of
subsidiary)
Roles
Set the 6o goal
Assignment subject for total optimization
Guide direction and goal of Project
It is very important that the Champion gets involved in project and take ownership for 6o
- Present the Vision
Monitor and support through Champion Review
Directly support to settle bottleneck for 6activity
- Involvement
Continuously lead Activity through strong commitment
Evaluate Output and Share best practice with MBB
- Drive 6o Activity
Lead supporting all department in improvement
and control step for 6o Project team
Deciding Investment and allocate resources
Generate motives
- Support Project


Page 59
. How to Launch 6o? 2. 6o Operating system
MBB(Master Black Belt)
6o Technical Leader

Full Time Job for 6o

Complete MBB Course or
acquire MBB Cert.
It is very important to select excellent MBB and continuously improving skill
Definition Role
- Support Skill
Coach BB/GB for 6skill and tools
Level Up for 6o skill & tools
Share best practice
- Drive project results
Check the Project by 6 progress step
Report champion about project status and output
Assure benefits are real
- Support Projects
Mentor BB / GB and Train individuals in tools
Support settlement for 6oActivity Barrier
continuous management and control for improved process

11

Page 60
2. 6o Operating system
Main Job Role Requirements
Leading BB/GB
Project Drive
Verity Output
Training
6 Technical Leader
Needs Stat. Skill
Propagate
More than 4 Projects
&
Consulting More than
5 Projects a year
Full Time Project
On TDR Theme
Execute Project
Leader of Pjt. team
Team member
training
2 Projects
&
1 Project a year
Join Project by
Part time
Execute Project
Team Leader or
Member
2 Projects
Master
BlackBelt
BlackBelt
GreenBelt
Belt
. How to Launch 6o?
Belt Certification

Page 61
3. Project Tracking System
PTS Flow Benefit
- Update and control CTQ of Closed Project
- Easily manage and report for Project status
- Evaluate reduction cost of 6oProject
- Share Project information
- Monitor 6o Project status
Project Theme/Z value/Reduction cost
Amount
By Division/OBU/Product/Model
All
Projects
Belt
PTS
Champion,
Owners
Project
Reviews
- Defect Data,Goal
- Project status
- Results
- Weekly update
Weekly Review
Confirm cost benefits
Benefits
Check & monitor
*
* PTS : Project Tracking System
. How to Launch 6o?

Page 62
4. Case Study For Infra.
6oTraining
Material
Training For
All Employees
Planning
6oStrategy
- Briefing 6o
Process

- Planning 6o
Strategy/Goal
Construct
IT System
- Impove Chronic
Defects
: Minitab S/W

- Optimize
Process IT
: Real Time
Monitoring
: Data Base
For CTQs

- PTS
: Project Tracking
System
- Intoduce 6o
: All Employee

- 6o GB
Training Prg.
: Engineer,
Staff

- 6o WB
Training Prg.
: Supervisor

Organizing
6oTeam
- Due part
MFG : QA Team
Leader
R&D : Chief of
Lab.

- Organize 6o
Surport Part
:2~3 person/OBU

Organize
6o Team
- Training for Employees

- Training for Boards
Project Review

- MBB & BB : 80/Year

- Training
: 2,400 person
Case Study
- 6o Team

- Case Study
: 1 / OBU
* Case :LGE Home Appliance Division.
. How to Launch 6o?

Page 63
Start
Date
Business
Areas of
Emphasis
Metrics Supplier
Involvement
Training
Emphasis
Reward
System
Amount of
Cultural
Change
Return on
Investment
Motorola 1987 Production Defects Intimidation Six Sigma
Basics and
Statistics
Black Belt
Recognition
Low 1.4 Billion
in 7 Years
DSEG
(Raytheon/TI)
1990 Production Defects and
Cycle Time
Training
Suppliers
in the Tools
Low Not
Published
AlliedSignal 1992 Production
and Design
Training
Suppliers
Black
Belts
Six Sigma
Basics,
Statistics,
KISS for
Suppliers
General
Electric
1995 Production,
Design,
R&D, and
Transactional,
i.e., the whole
organisation
Training
Suppliers
Black Belts
Black Belt,
Green Belt,
and
Management
Promotions,
Bonuses,
and
Stock
Options
High
Black Belt
Recognition
Black Belt
Recognition
Monetary
Rewards
Six Sigma
Basics,
Statistics,
and Soft
Skills
Defects,
Cycle Time,
COPQ,
Cost
Reduction
Six Sigma
Basics,
Statistics,
Soft Skills,
Finance
Skills, (KISS
and KBM)
Defects,
Cycle Time,
COPQ,
Cost Reduction,
Stable
Operations,
Annual
Operating ROI
(Intellectual
Capital)
Medium 1.4
Billion in
4 Years
Evolution of Six Sigma
3 +
Billion in
4 Years
(Taken
from
1999
Annual
Report)

Page 64
Design For Six Sigma
LSL USL
Manufacturing Goal:
Reduce Sigma Design Goal:
Relax Specs