SIX SIGMA Training Manual

Great Company Great People
WELCOME TO SIX SIGMA TRAINING

FOR
GREEN BELT CERTIFICATION
Trainer:
Deepak Arora
SIX SIGMA

THE GLOBAL CONCEPT
Six Sigma is a data-driven, high-performance approach to analyzing and solving root causes of business
problems. It ties the outputs of a business directly to marketplace requirements.
As a result, Six Sigma projects lead to reduced costs, process improvement and reduced business cycle
times.
Six sigma is about reducing variation
Six sigma is about doing right thing the first time
Six sigma is about producing high quality with less money
Six sigma is not about working hard but working smarter.
Six Sigma is a highly disciplined process that helps us focus on developing
and delivering near-perfect products and services.

Six Sigma is a business process that allows companies to dramatically improve
their Bottom line(Profitability) by designing and monitoring everyday business
activities in way that minimizes waste and resources while increasing Customer
satisfaction.
- - Mikel Harry (Father of Six Sigma)
- - GE
- - LG Electronics
What is Six Sigma ?
Brief Role
BB / GB guidance
Drives Project
completion.
Verification of results
Education
6 Technical Leader
Technical Background,
transmit skills
Full Time Project work to
resolve neck issues.

Project execution
Improvement Team
Leader
Team Member, tool
education
Project execution
Improvement Team
Leader
Master
Blackbelt
Blackbelt
Greenbelt
Belt
Part Time Project work to
resolve neck issues.

Six Sigma Belt System
Selecting CTQ to meet customer needs
Deciding reasonable Tolerance
Guarantee CTQs through capability analysis
MFG
Improve serious problem
Real Time Monitoring system
CTQ Control system
SVC
Improve cycle time and accuracy
Cost improvement
Guarantee for design completion
Quality assurance in manufacturing stage
Maximizing Sales and Service
R&D
6
Manufacturing
6
Transactional
6
Six Sigma is a tool that is applied to all business systems, Design, Manufacturing, Sales
and Service.
Application of Six Sigma
6
R&D
Sales
&
SVC
Manufacturing
R&D
4-6% of Sales
The Cost of Poor
Quality Typically
Falls Between 25 -
35 % of Total Sales
Lost Opportunity
Traditional
Quality
Costs
Additional Costs of
Poor Quality
Rejects Inspection
Rework
Long cycle times
Increasing costs
Lost sales Late delivery
Lost customer loyalty
Excess inventory
Cost of Poor Quality Iceberg
9
+2 mm
MACHINE 1 MACHINE 2
9.1 8
9.2 8.5
9.3 7
9.4 10
9 10.5
9.1 9
9.2 7.5

High
variation
Poor
quality
Suppose two machines are making a rod of dia 9+2 mm.Following are the diameters of the rods made
by both the machines.

The st.deviation can be found on by the formula:
Machine
2

Low
variation
Good
quality
Machine
1
= Standard deviation
= item or observation
= population mean
= total no. of items in the population
N
x
x

Example
T a r g e t
LSL
USL
Mean
1.Shift to target
Lesser variation
but all data outside
specification
limits(100% rejection)
so our first step is to
shift mean to target
T a r g e t
USL
LSL
USL
LSL
T a r g e t

2. Reduce variation
Probability
of rejection
Lesser variation
and all data
inside spec.
limits
Objective of 6 sigma is to reduce standard deviation in order to meet the specifications.The data should
lie within the specification limits with minimum Standard deviation. The data may be within
Specification limits But the mean of the data may be shifted from the Target.So mean of the data
should match with the target. So first meet the target then reduce variation.
The objective of six sigma
Six Sigma Process
Is it OK ?
Define
Measure
Analyze
Improve
Control
Y
N
Clarifying the improvement target
- Forecast the improvement effect
- CTQ selection for product and processes
Understanding process capability for Y
- Clarifying measurement method for Y
- Specific description of target
Clarifying target for improving Y
- Clarifying factors which affect Y
Screening for the Vital Few
- Understanding relationship of Vital Few
- Process optimization and confirmation experiment
Determine control method for X
- Build up process control system & audit Vital Few
Practical Solution
for Positive
Business Impact
Statistical Solution
Statistical Problem
Long Term
Containment &
Control Plan
Practical Problem
Impacting the Business
The Six
Sigma
Project
Breaking down Six Sigma
Six Sigma

Reactive
DFSS

Proactive
Design for Six Sigma
Solve Existing Problems
Fix Current Process
* Design & Develop Capable Product
* Design & Develop Capable Process
Design for
Six Sigma
Tools used in various stages
Define
Measure
Analysis
Improve
Control
1. Process Mapping
2. Logic Tree
3. Pareto Analysis
4. Quality Function deployment
5. 5 Y Analysis

5. Gage R&R
6. Rational sub grouping
7. Process Capability

8. Hypothesis Testing
9. Regression
10. Graph Analysis

11. ANOVA
12. Design of Experiments

13. SPC(statistical Process Control)
DEFINE
D

M

A

I

C
Statistical Terms
Mean
Median
Mode
Standard Deviation
Statistical Concept
Type of data
Continuous
Measurable
Variable
Ex. 1.20
5.00
Discrete
Attribute
Categorical
Eg. Yes / no
High / low
m
Inflection
Point
T
USL
p(d)
3
The size or a standard deviation
shows the distances between
the inflection point and the mean.
We could say the process has 3
sigma capability, if 3 deviations
are fit able between the target
and the specification limit.
Mean
Standard Deviation
* Mean : Sample set or the
average value of the
population
Average of
Population is

Sample average
is

* Standard Deviation is the
square root of the variance

-Standard deviation of
population

-Samples standard deviation

m =
X
i S
i = 1
N
N

m = X =
X
i
S
i = 1
n
n

= S =
( X
i
- m )
2
S
i = 1
N
N

= s =
( X
i
- X )
2
S
i = 1
n
n - 1
1
3
Statistical Concept
Define Stage
Pareto Analysis:
This is a tool used to find the important Issues among the problem.
Generally, 80%of the problem is caused by 20%of Issues/causes.
(Vilfredo Pareto, Italian Economist in 1800s)
Type Frequency
IC 68
Tuner 9
Col 4
Cable 3
Connector 2
Jack 2
Roller 2
Belt 1
Filters 1
Others 4
It refers to the process of identifying the independent factors or causes responsible
for the chronic effect or result.
Process Mapping
It is a diagrammatic representation of your process explaining all intrinsic and extrinsic parameters
involved in the process with there present level.
The Process Mapping Method
Define the Process boundary. (General area or specific process you intend to improve)
Brainstorm and order process steps with your team.
Code activities using symbols for easy analysis.
Walk through the process to validate map.
Add key process metrics
- Yield, costs, Rolled Throughput Yield, Scrap, Overtime $, Capacity, %Schedule, %OTD
Analyze map for key business issues -could be in the areas of :
- Process loss or waste
- Cycle time improvements
- Quality improvements
- Flow improvements
Define Stage
Intrinsic factors: Factors which are in control of operator.
Extrinsic factors: Environmental parameters.
Process Mapping Refrigerator - R1 Line Rolled Throughput Yield
D/Plate plate/paint
D/Liner extrusion/mold Door forming Door assembly
I/Case extrusion/mold
Case forming
Front - CTQ, L painting O/Case, B/Plate
Cycle assembly
LQC & appearance
Door Assy 89.7%
Output
99.0%
99.7% 93.4% 97.3%
99.6% 81.0%
99.2% 91.7%
Case Assy 73.4%
97.7%
83.8%
96.5%
Rolled Though put Yield = 73.4% 89.7% 97.7% 83.8% 96.5% = 52.0%

Case Door Cycle assembly LQC& appearance

Define Stage -- Process mapping
QFD is used to link key consumer requirements to technical specifications and
potential part CTQs. QFD is performed by a team of process experts.
QFD Process
Identify key consumer needs by reviewing market, reliability requirements, general requirements
and current quality issues.
Rank cues by importance and translate them into technical specifications required to meet customer cues.
Rank technical specifications by impact on customer cues and translate them into potential part
characteristics(CTQS).
Rank part characteristics by impact on meeting technical specifications(CTQS).
Define Stage QFD Process
QFD translates the Voice of the Consumer into the Voice of the Process owner.
FMEA (Failure Mode & Effects Analysis)
FMEA is used to proactively identify and rank risks in a product design and assign appropriate
actions to be taken to prevent the failure mode.
FMEA Process
Brainstorm potential failures of the product design.
Assign severity and probability (likelihood of occurrence) ratings to each potential failure mode.
Determine existing control measures being taken to eliminate significant failure modes.
Develop actions to be taken to eliminate or reduce risk on all remaining significant failure modes.
Define Stage FMEA Process
Failure Mode and Effect Analysis
Assy
Name
Key Date
Model
Name
Supervisor
Purpose
Item/Function
Recommended
Actions
Potential
Failure Mode
Potential cause/
Mechanism of failure
Potential Effect
of Failure
Occur
PJT
Name
Participant
Sev.
Current Design
Controls
Detection

R.P.N
operator
Action Results
Sev. R.P.N Occ. Det.
Action taken
** RPN (Risk Priority number) = S x O x D
Used to break down problem into manageable groups to identify root cause or area of focus.
Breakdown the problem on the base of MECE
- MECE (Mutually Exclusive and Collective Exhaustive)
RPM
Rotor

Stator

Assembly
Lamination

End rings Area A

Area B
Electromagnetic

Mechanical
Losses

Inductance
OD

Core length
Why
Why
Why
Why
Define Stage Logic tree
Brainstorming
Types of Brainstorming
A team approach to generate many ideas in a short time period.
Free Wheeling : Spontaneous flow of ideas by all team members
Round Robin : Team members take turns suggesting ideas
Card Method : Team members write ideas on cards with no discussion
Write the Problem Statement
Problem Statement
It is critical to define the problem will. A problem statement should include both
As is? And the Desired State? Of the issue, and be specific and measurable.
Example:
As is : The response time for 15% of our service calls is more than 2 hours.
Desired State : The response time for all service calls must be 2 hours or less.
As is ?
Describes the problem as it is today
Should not contain causes
Should not imply solutions
Should be as specific as possible and include measurement
Desired State ?
What you want to achieve by solving the problem
Be as objective as possible
As specific as possible including measurement goal
Define Stage Theme registration
MEASURE
D

M

A

I

C
Rational Subgroup
It is the process of identifying all possible factors for variation in a system and giving them equal or
weighted .
TIME
P
R
O
C
E
S
S

R
E
S
P
O
N
S
E

WHITE NOISE
(Common Cause
variation)
BLACK NOISE
(Signal)
RATIONAL
SUBGROUPS
Measure Stage Rational Sub grouping
Rational sub grouping allows samples to be taken that include white noise which occurs, within the
Samples and black noise which occurs between the samples.
Common Cause Variation?
Assignable Cause Variation?
Common Cause Variation is the variation present in every process. Also known as white noise.
It is not controllable variation within the existing technology.
Represents that best the process can be with the present technology (Inherent process capability).
Assignable Cause Variation represents the outside influences on a process that cause average
to shift and drift. Also known as black noise.
It is potentially controllable variation with the existing process technology.
It represents how the process is actually performing over time(Sustained process capability).
Example:

Mixed lots of parts are currently loaded onto trailers at a supplier for shipment to the factory.
Part number and count are entered into the factory computer system manually.
Excessive variation exists between what shows in the factory computer and what is actually
unloaded at receiving because of errors in transcribing part numbers on the packing cartons.
In order to reduce the variation in this process, minimize manual processing of shipping/receiving tickers.
Measure Stage Black / White noise
Why should we do Rational Sub grouping?
Use the 5M of cause and Effect Analysis as a checklist to assist in identifying
the potential causes of variation in the process.

Man ex) Rotating operators, shift changes, new operators

Machine ex) Setup changes, maintenance effects

Material ex) Batch/lot/coil differences

Method ex) Operator methodology, model line balance

Measurement ex) Manual data entry, calibration effects
Aim is to capture as many of the influential factors on the data collection as possible.
Use the Advocacy team to help define causes and plan the data collection period.
Measure Stage Rational Sub grouping
Measurement : The foundation of Six Sigma.
Six Sigma is based on the measured data. There will be unfavorable consequences from analysis
using statistical tool if we have a problem with measuring system. Whats more, the process gets worse,
then experiment will end up in failure. Therefore, we do better secure correct measurement system
before the project
Observed process
data variation
Understanding Measurement Variation of system
Actual Part
to Part
variation
Measurement
variation
Long term
Process
variation
Within
Sample
variation
Operator
variation
(Reproducibility)
Gage
variation
Accuracy
Repeatability
Stability
Linearity
Six Sigma Project
Y = f(X1....Xn)
Manpower
Method
Material
Measurement
Machine &
Environment
Short term
Process
variation
Measure Stage Gage R&R
Repeatability ?
Repeatability :
Getting consistent results
Measure/Re-measure variation
Variation observed with one measurement
device when used several times by one operator
while measuring the identical characteristic on
the same parts.
Operator A
Operator B
Operator C
Reproducibility
Reproducibility ?
Variation obtained from different operators
using the same device when measuring the
identical characteristic on the same parts.
Accuracy ?
Stability ?
True
(Reference)
value
Accuracy
Observed average
* Setting a true value is a one that
is measured by the most accurate measuring
device.
The degree of agreement of the
measured value to the true magnitude
(unbiased values).
(Accuracy is typically expressed as 1-%Bias)
Stability is the total variation in the
measurements obtained with a measurement
system on the same master or reference value
when measuring the same characteristic over
an extended time period.
Stability
Time 1
Time 2
Linearity ?
Larger Bias Small Bias
LSL USL
Actual
values
Reference values
Actual
values
(No Bias)
Reference value
Linearity is the difference in
the bias values throughout the
expected operating range of the
gage.
(Gage is less accurate at the low
end of specification or operating
range than at the high end).
Gage R&R Study ?
There are 3 kinds in Gage R&R Study as follows
-. Repeatability
-. Reproducibility
-. Total measurement variation

Determines how much extent of their contribution to the total process variation or specification.
The importance of Gage R&R Study
2
Total
=
2
Part-Part
+
2
R&R
Total variation
Variation due to
differences among the parts.
Measurement error variation
As study results, we can get information as follows :
Gage resolution is adequate.
The measurement system is statistically stable over time..
The measurement error is small enough . And acceptable relative to the process variation
or specification.
(That is, Got ready to find X factor correctly caused by Y variation due to small variation
of measurement..)
Tell you measurement system is good enough to gather process data.
What is Gage R&R Study ?
Sample of Gage R&R
* An improvement plan to lower R&R variation
should be implemented. If you decide not to
improve the measurement system, beware of
the risk associated with a high Gage R&R
result. Use of a gage with a conditional R&R
study result should be done cautiously.
20% : Acceptable

20% to 29% : Conditional

30% : Unacceptable
An acceptable value for a Gage R&R Study
Gage selection(Resolution)
The Gage must have a resolution of less than or equal to 10% of the specification or process variation.
* Resolution is the smallest unit of measure the gage is able to read.
Ex) In case of part feature tolerance equals +/-0.020, Gage must have resolution 0.002 and Gage R&R 20%
to be recommended.
Not selecting sample at random, the preparation must be proceeded by preliminary plan so that you can
cover the total range of variation and specification.
Ex) A pulley has a shaft I.D. = 0.500 +/-0.025 inch. For Gage RR Study, 10 parts should be selected that range
from 0.45 to 0.55 inch. For product acceptance? You must demonstrate that the gage can distinguish the good
pulleys from the bad ones.
Two types of Gage R&R Study
Short study method
Requires only 2 operator and 5 parts at least once.
Cant be divided by repeatability & reproducibility
Long study method
Typically 2 to 3 operators, 10 parts with measurements repeated 2 to 3 times.
Tell you how much the measurement variation is, and repeatability , reproducibility
contribute to it so that we can get to know the point of Improvement.
The height of a CTQ component assembly Spec. = 2.000 0.015
Part Operator 1 Operator 2 |Range(1-2)|
Average range(R-Bar) = R /n = 0.015 / 5 = 0.003 Tolerance = 0.030

Gage Error = (5.15 / 1.19)*(R-bar) = 4.33 *0.003 = 0.013

GRR as a % of Tolerance = (0.013 x 100) / 0.030 = 43.3%
d* values for distribution of the average range
1
2
3
4
5
6
7
8
9
10
1.41
1.28
1.23
1.21
1.19
1.18
1.17
1.17
1.16
1.16
1.91
1.81
1.77
1.75
1.74
1.73
1.73
1.72
1.72
1.72
2.24
2.15
2.12
2.11
2.10
2.09
2.09
2.08
2.08
2.08
2.48
2.40
2.38
2.37
2.36
2.35
2.35
2.35
2.34
2.34
Gage error is calculated by multiplying
the average range by a constant d*,
where d* is determined from the following
table. 5.15 is 99% confidence interval
by the gage.
1
2
3
4
5
2.003
1.998
2.007
2.001
1.999
2.001
2.003
2.006
1.998
2.003
0.002
0.005
0.001
0.003
0.004
0.015
Range sum
Number of parts Number of operators
2 3 4 5
Long study method (using Minitab)
File name : Session > gageaiag.mtw
The paint thickness on a PC case was selected as the Six Sigma Theme.
Spec. : 2.5 1.5
To confirm
measurement system
3 operators tested
repeatedly twice on
each 10 parts.
Selection : Gage R&R Study
Stat > Quality Tools > Gage R&R Study...
(Minitab)
Select: ANOVA
Input : Parts, Operator
& Measurement data
Sum of Squares
ANOVA Table
(Basis for the estimates)
Gage R&R itself is larger than
20%, needs improving
measurement system process
control applications as well.
If significant, P-value < 0.25 indicates
that an operator is having a problem
measuring some the parts.
Ok for product acceptance
considering a products
tolerance.
This value means the number,
not duplicating confidence interval
of measuring part.
Two-Way ANOVA Table With Interaction

Source DF SS MS F P

Part 9 2.05871 0.228745 39.7178 0.00000
Operator 2 0.04800 0.024000 4.1672 0.03256
Operator*Part 18 0.10367 0.005759 4.4588 0.00016
Repeatability 30 0.03875 0.001292
Total 59 2.24913
Gage R&R

Source VarComp StdDev 5.15*Sigma

Total Gage R&R 0.004438 0.066615 0.34306
Repeatability 0.001292 0.035940 0.18509
Reproducibility 0.003146 0.056088 0.28885
Operator 0.000912 0.030200 0.15553
Operator*Part 0.002234 0.047263 0.24340
Part-To-Part 0.037164 0.192781 0.99282
Total Variation 0.041602 0.203965 1.05042

Source %Contribution %Study Var %Tolerance

Total Gage R&R 10.67 32.66 11.44
Repeatability 3.10 17.62 6.17
Reproducibility 7.56 27.50 9.63
Operator 2.19 14.81 5.18
Operator*Part 5.37 23.17 8.11
Part-To-Part 89.33 94.52 33.09
Total Variation 100.00 100.00 35.01

Number of Distinct Categories = 4
Number of Distinct
Application Method of Categories
1) Number of Distinct Categories = 0 ~ 1
Not Acceptable
<Measurement System Improvement>
2) Number of Distinct Categories = 2 ~ 4
Conditional
3) Number of Distinct Categories 5
Acceptable
Attribute Gage R&R Study
Each part is accepted if they meet the criteria of the attribute(Pass/Fail or Go/No go)
In case of VCR coating, it would be FAIL if fails to meet the attribute of the exterior appearance.
Two checkers then inspect the 18 parts twice in a manner to prevent appraiser bias.
Appraiser "A" Appraiser "B"
1 2 1 2
1 G G G G
2 G G G G
3 NG G G G
4 NG NG NG NG
5 G G G G
6 G G G G
7 NG NG NG NG
8 NG NG G G
9 G G G G
10 G G G G
11 G G G G
12 G G G G
13 G NG G G
14 G G G G
15 G G G G
16 G G G G
17 G G G G
18 G G G G
Visual Inspection Gage Study
Different Test
Results between
checkers each other
The gage is acceptable if all the checkers
(four per part) agree..
% Gage R&R = 3 / 18 x 100% = 17%
If the results of checkers are different, the gage
must be improved and re-evaluated.
If the gage cannot be improved, it is unacceptable
and an alternate measurement system should be
found.
Measure Stage PCA
Z
BENCH
is the reported baseline Z-value
Definition of Z.
BENCH
10%
9%
ZLSL = 1.34 ZUSL = 1.22
19%
ZBENCH = .88
P
USL
is the probability of a defect relative to the USL.
P
LSL
is the probability of a defect relative to the LSL.
P
TOT
is the total probability of a defect. P
TOT
= P
USL
+ P
LSL

Z
bench
is the Z value from the normal table which corresponds to the total number of defects.
Executive Summary : Process Capability
Measure Stage PCA
6 8 10 12 14 16 18
LSL USL
Process Capability Analysis for Quality
USL
Target
LSL
Mean
Sample N
StDev (ST)
StDev (LT)
Cp
CPU
CPL
Cpk
Cpm
Pp
PPU
PPL
Ppk
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
22.0000
*
8.0000
12.4368
38
1.90756
2.05922
1.22
1.67
0.78
0.78
*
1.13
1.55
0.72
0.72
26315.79
0.00
26315.79
10011.39
0.27
10011.66
15595.62
1.71
15597.33
Process Data
Potential (ST) Capability
Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance
ST
LT
Executive Summary : Process Capability
Calculated value by ppm, counting defect
number out of upper spec limit or lower
spec limit among actual measurement data.
In case of long term process data,
Expected value of defect ratio for standard
upper, lower limit.
Measure Stage PCA
Zst = Xbar - mu
Sigma(st)
6 Sigma
Cp = USL - LSL
Zlt = Xbar - mu
Sigma(lt)
Zlt = Zst + 1.5
Cpk = (1-k) Cp K = M x bar
T/2
Determines the spread
of the data
Determines the shift
from the mean
Before proceeding for Process capability analysis, Normality test has to be done.
And if p value is greater than 0.05 the data is normal.
Measure Stage PCA
CTQ = Critical To Quality
Looking at the customers view point, it means critical product, characterized service value of process.
EX) Regarding the relation between the product and service, the customers require. The arrant center
which handles their complaints.
CTQ is immediate, generous, understanding one, while service business in the center is very kind,
informative for products and quick service as if they are likely to be in customers position.
D = Defect
In order to satisfy customers requirements, Mishaps unfavorable, being waste, rework or failure.
Ex) Error Information written wrongly for customers claim.
DO = Defect Opportunity
Certain behavior or event cansing Defect
EX) The number of articles should be written on one claim sheet.
U = Unit
Certain item available for measurement.
EX) Claim form.

DPU = Defect Per Unit
The number of Defects existing in one unit.
EX) DPU=2/1=2 in case of 2 Error articles out of 10 written on one claim form.
DPO = Defect Per Opportunity
The number of defect which exists in one unit related to opportunity number.
EX) Any 2 miswritten articles out of 10 which should be written in certain claim of one unit.
2 Defect / (1Unit x 10 Opportunity) = 0.2. That is, DPO=0.2.

DPMO = Defect Per Million Opportunities
Converse into DPO number x 1,000,000. (Can be transferred as Sigma Scale)
EX), 0.2 DPO x 1,000,000 = 200,000 DPMO or it comes to approximately 2.0 Sigma.
Terms
DPU(Defect per Unit) / DPO(Defect per Opportunity)
dpu = d/u Here, d stands for the Number of observed defects or frequency.
u stands for the Number of Units Produced.
Ex : Out of the last 1,000 invoices issued, 1,000 inadequate items were defected. In this case,
What is the DPU for this sample?

dpu = 1,000 / 1,000 = 1.0 (100%)

This is average value, each invoices contained 1 defect.
dpo = d/(u*opp) Here, d : The Number of observed defects or frequency.
u : The Number of units produced.
opp :The Number of opportunities
Ex : For each 1,000 invoices Issued, 1,000 defects were detected.
There are 10 items per each Unit(Invoice). What is dpo for this sample?
dpo = 1,000 / [(1,000)(10)] = 0.1 (10 %)

Is there possibility to have Defects more than one in each Unit ?
What will it be as a target for expectation ?
Measure Stage PCA (Discrete)
Ex) Sigma level calculation against claim.
Claim form - Example
Article 1 : Full in name
Article 2 : address
Article 3 : The name of city
Article 4 : The name of province
Article 5 : ZIP CODE
Article 6 : customer service No.
Article 7 : The Number or claim.
Article 8 : pay amount for claim.
Article 9 : The deduction Amount.
Article 10 :Actual Amount of Pay.
Claim form - Example
Article 1 : Hong Kil Dong
Article 2 : Seongsan - Dong
Article 3 : Changwon-City
Article 4 : KyungSang South
Province
Article 5 : 641 - 700
Article 6 : 000-11-2222
Article 7 : 5
Article 8 : 5,000 WON
Unit : 1
Defect Opp : 10
Defect : 2
.

.

.

Define Problem

Unit = 1 (Claim form)
Defect = 2 (Article 8&10)
Defect Opp = 10 (10EA Article )
Calculation

Defects Per Unit = 2 Defect / 1 Unit = 2 DPU
Defects Per Opportunity = 2 Defect / 10 Articles = 0.20 DPO
Defects Per Million Opp = 0.2 DPO x 1,000,000 = 200,000 DPMO
Sigma = 200,000 DPMO or approximately 2.0
Example PCA (Discrete)
Sample Question
Q. If there are 34 Defects out of 750 units, Lets calculate sigma value of DPU / DPO / Yield /
DPMO / Sigma.... (10 opportunities per each unit)
1) DPU = all Defect Number divided by all Unit Number, DPU is ( 34 ) ( 750 ) = ( 0.045 ) .

2) DPO = all Defect Number divided by (all Defect Number times opportunity) ,
DPO = ( 34 ) ( 750 10 ) = ( 0.0045 )

3) Yield Value Zero Defect (r = 0), Poision Distribution is Y= e
(-d/u)

Y = 2.7183
-0.045
= ( 0.956 ) = ( 95.6 )%
OR Y = P(ND)
10
= (1-DPO)
10
= (1 - 0.0045 )
10
= ( 0.956 ) = ( 95.6 )%

4) DPMO = DPO 1,000,000,
DPMO = ( 0.0045 ) 1,000,000 = 4,500 (It has 4,500 ppm per one opportunity,
Thus, Defect has 45,000 ppm per 1 Unit.)

5) Sigma Value = Zinv( 0.956 ) + 1.5 shift = ( 1.71) + 1.5 = ( 3.21)
Kinds of Yield
Three kinds of Yield.......
Y
FT
= First Time Yield : The Yield without rework, or fix.
Application : Deciding each Quality level individual process in use.
Y
RT
= Rolled Throughput Yield : Passing Ratio of one item through the whole process without
even one defect.(The Yield without rework or fix.)
Presenting the possibility of zero defect.(100% Yield)
Application : Certain accumulating certain step of process in order, which is used for
evaluating quality level.
Y
NA
= Normalized Yield : Average Yield of successive process.
Application : This is used for evaluating the level of quality in completed product.
Y
RT
(Rolled Throughput Yield)
Receive from Supplier
45,000 ppm waste
51,876 ppm
waste
125,526 parts per million
wasted opportunities
28,650 ppm waste
97% Yield
94.4% Yield
Y
RT
= 0.955*0.97*0.94.4 = 87.4%
95.5% Yield
Right
First
Time
Y
RT
Step 1
In order to calculate YRT, every continues step- times(X) YFT.

YRT = 0.8 X 0.7 X 0.9 = 50.4%
( Theres no wasted opportunity due to Rework. )
Step 2 Step 3
A
If Product A consist of the 3 successive steps,
YFT = 80%
YFT = 70% YFT = 90%
YRT = ???
Y
ND
= ???
Y
RT
In order to calculate Normalized Yield every step,
- foundational average value is used based on the number of each step;
Y
ND
(Normalized Yield) =
n
Y
RT
, where n is the number of the number of the process.

- In this sample question , Y
ND
(Normalized Yield) =
3
0.504 = 79.6%
Average Y
FT
in each step equals 79.6%.
What is the parallel process ?
Change your parallel process into a series process, when in Process Mapping
Ex:
99% 97%
98%
Operation 1 Operation 2 Operation 3
Operation 4
91% 99% 99%
2a 2b 2c
?
Y
RT
= Y
1
x Y
2
xY
3
x Y
4
= .99 x (.91 x .99 x .99)
1/3
x .97 x .98
= .99 x .96 x .97 x.98 = .9035

Y
NA
= (Y
RT
)
1/4
= (.9035)
1/4

p (defects) = 1 - .9749
p (defects) = 0.0251 (Refer to the Normal table)

(2.51 E 2) = Z = 1.96
= 0.9749
ANALYZE
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The procedure of Graph Analysis
1. Clarify What would you like to know?.

Clarify the output of what you want to know concerning the practical problem.
Expected output is being focused on the content related to the next step
Set up a related plan of data collection expecting output.

2. How do you want to know?

Decide whether the output is shown clearly when using any kind of graph for collected data.

3. What should be done about the results of graph analysis?

In regard to the result of graph analysis, confirm that you obtain the output you
wanted and decide if there is the topic to be discussed more.

About the improvement of practical problem, take an urgent action when there is issue.
Analyze Stage Graph Analysis
Example 1 : Graph Analysis
In the production line of air conditioner, the exposing duration in the moisture is very
important for compressor assembly . Set aside carefully assembly time by investigating
3 workers on 3 production lines.
1.What do you want to know?
2.How do you want to know?
3.What kind of Tool is it adequate?
4.What kind of data is necessary?
5.Where can you get a data from?
Example 1 : Understanding Graph
29.0 29.5 30.0 30.5 31.0 31.5 32.0 32.5
0
1
2
3
4
5
6
7
8
time
F
r
e
q
u
e
n
c
y
The clue you got here?
Example 1 : Understanding Graph
When we analyze the clue you obtained in different viewpoint ;
1 2 3
29
30
31
32
operator
t
i
m
e
Ultimately what direction should it be taken actually
with the found result ?
Concept of Hypothesis Testing
It is the process of finding out the vital few factors by taking a practical problem and then
Translating it to a statistical problem.

As we will be using samples (and relativity small ones at that) to estimate the population
parameters, there will always be a chance that we can select a weird sample for our experiment
that may not represent a typical set of observations.
Because of this, inferential statistics with some assumptions allows us to estimate the
probability of getting a weird sample.
Analyze Stage Hypothesis Testing
Correct
Decision
Correct
Decision
Ho Ha
Ho
Ha
True
Accept
The ratio which is
being Ha even if its false.
Where is usually
set up at 10%.
The ratio which is
being rejected Ho even
though certain thing is true
where is error.
(usually 5%)
Ho(Null Hypothesis) is assumed to be true.
This is like the defendant being assumed
to be innocent.

Ha(Alternative Hypothesis is alternatives
the Null Hypothesis.
Ha is the one that must be proved.
Type 1
Error

producers
risk
Type 2
Error

consumers
risk
1- = Confidence
The probability that can be determined as a right thing when the Null Hypothesis
is correct.

1- = Power of the test
The rejecting probability when null Hypothesis you want to test is not right.
It is not possible to simultaneously commit a Type 1 and Type 2 decision error.
Test for means Test for Variances
Test for both
means &
variances
When data is in
form of OK / NG
When data has
equal Probability
of Occurance
> Z Test > F Test > ANOVA
When Population Testing of Variances Testing means
Sigma is Known of 2 populations and variances for
and data is normal or 2 samples two or more than
two population
> T Test > Test for Equal variances
1 T Test Testing of Variances Assuming Data
2 T Test of more than 2 population to be normal
When Population
Sigma is not known Data could be Normal or
only population mean Non normal
is known
Data should be Normal
Tests for Discrete Data Test for Continous Data
Proportion test Chi Square Test
1. If the Calculated Value is < or = to
Table(Critical) value, no conclusions
can be drawn(fail to reject Ho).

If the Calculated Value is > to
Table(Critical) value, then
a difference exists( reject Ho, accept Ha).
2. If the p value is > or = to
, no conclusions
can be drawn(fail to reject Ho).

If the p value is <
, then a difference exists
( reject Ho, accept Ha).
3. If 0 falls within the confidence Interval
around the difference of the two means,
then no conclusions can be drawn
(fail to reject Ho).

If 0 falls outside the confidence
Interval around the difference
of the two means, then a difference
exists ( reject Ho, accept Ha).
The 1st
When P value is small than significant level (= 5%, 10%)
Decide by probability
If calculated value is more than the table value
The 2nd
The 3rd Determine by confidence interval
When 0 is not contained in the confidence interval.
+ +
- -
0
0
Confidence Interval
Accept Ha
What is ANOVA
The most popular method that can be used to analyze the result of the experiment when its done.

We represent characterized variation (Y dependent variable) by the total sum of square.
We divide SSB and SSW as a SS value against factor (Xs Factor) or
level which influence directly on the characterized value, then this method is to find
what the factors level which influence enormously is, comparing both of them.

A procedure that determines whether or not the means of the responses at each level are
drawn from the same population.(Are they different?)

How to search the Vital Few Xs potentially.
Analyze Stage ANOVA
The concept of ANVOA
Gap
Between group
variation (SSB)
Delta (d)
Within group
variation
(SSW)
Observed Value
(at present)
Expected Value
(target)
Total
Variation
level 1 level 2
ANOVA:
ANOVA determines if the variation
between the average of the levels
is greater than the variation that
occurs within the level
Avg SS between
ANOVA= ---------------------
Avg SS within
Analyze Stage ANOVA
When do you use ANOVA?

One Way ANOVA:
Use this when the number of level are more than two against one factor.
- Determines if the variation between the average of the levels is greater than
the variation that occurs within the level.

Balanced ANOVA
Use this when there are more than two Factors and several level numbers in each Factors.
- Determines if the variation between the average of the levels is greater than
the variation that occurs within the level.

DOE(Design of Experiment)
Search optimized condition running parallel with other Analysis as well as finding which level
of factors contribute more to the total variation among many factors.
Analyze Stage ANOVA
IMPROVE
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Steps in Planning an Experiment
1) Define the Objective
2) Select the Y Response (Dependent) Variables
3) Select the X (Independent) Variables
4) Choose the X Variable Levels
5) Select the Experimental Design
6) Run the Experiment & Collect the Data
7) Analyze the Data
8) Draw Conclusions
9) Perform Confirmation Run
Improve Stage DOE
DOE Design of Experiments
While planning an experiment, it is useful to ask the following questions:

1) What decisions are to made with the data?
2) How will the data be analyzed after it is collected?
3) Will the data and analyses allow the required decisions to be made?

If the answer to # 3 is no, then re-design the experiment.
1. Define the Objective
Improve Stage Planning DOE
It is possible to measure several dependent (response) variables and model
each of these as a functions of the independent variables at the same time.

Variable vs. Attribute data
Attribute data (pass/fail) is less than 63% as efficient as variable data
(continuous measurements).
This means that much more data is required to draw statistically valid conclusions.

However, sometimes it is difficult to get quantitative measurements of the response
of interest. It is often possible to use rankings or comparisons to standards.

Dont forget Gage R&R

Regardless of the type of data you have you must validate your
measurement system before running your experiment. If it is unacceptable,
it must be improved (reduced) to <20%.

2. Select Y response
3. Select Xs(Independent) Variables
The number of levels you choose depends on the objective of the experiment and the
graph of the response.
If you are searching for the important variables with a screening experiment, typically
two levels are used.
If you cant fit a line through the data (a potentially non-linear response), dont model with a line.
If you know the variable is Vital and want to study its effect in detail, typically more than two
levels are used.
4. Choose Levels for the Xs Variables
5. Select the Experimental Design
When designing the experiment, consider 10 Key Elements...
1) Orthogonality
2) Randomization
3) Replication
4) Repetition
5) Controls
6) Lurking Variables
7) Noise Variables
8) Blocking
9) Sample Size
10) Confounding
6. Run the experiment and collect the data
Be sure to set up your data sheet before running experiment to be sure all values are
recorded in the desired form.

Be sure to participate there during the experiment - you never know what may happen.
- Get to know whether core relation or relative through observation.
- During the experiment, get to know factor level is appropriate with the range or not.

It is often useful to retain samples, which can be measured again later if there are
questions about a particular measurement.

Successive Experiment :
Its usually more advisable to practice experiment at a small scale rather than big scale
experiment.

At the preliminary experiment, through the preliminary experiment, screen the important
factor and understand mechanism, as well. So you can do more effective experiment
from next time.
7. Analyze the data
A) Graph

- Histograms
- Scatter plots
- Cube plots
- Main effects plots - for both mean and standard deviation
- Interaction plots - for both mean and standard deviation
- Contour plots - for Response Surface designs
B) Confidence Intervals - valuable because they give a range of plausible values.
C) ANOVA tables (Session window) - look for low p-values that indicate significant factors.
Confirm the following articles.

Are the results statistically significant ?
- Are there misusage of the tool used in this steps,
Measurement/Analysis/Improvement?
- Is the statistical treating result reasonable about actual problems?

Is there evidence of change?

Are the results practically significant?
- Is the process capability improved ?
- Has the Y, which selected as a theme, been improved in the long term basis ?
- Are there any side effect?

Does the experiment direct you towards how to fix the problem?

Should we run additional experiment?
8. Draw conclusions
9. Perform Confirmation Run

The Confirmation Run is necessary to verify that you have truly made improvements.
Confirmation Runs should be set up in rational subgroups, similar to process base lining. In
effect, you are Re-base lining your process at the new settings.

Be sure to allow the Vital Few Xs to naturally vary within the levels set during your confirmation
run...but again, do not tweak the process. You want to be sure to capture the natural variation of
the process to verify that you made an improvement.
One way factorial Design
It is the simplest of the designs it selects only one factor that affects the response.
A1 A2 A3 A4
8.44 8.59 9.34 8.92
8.36 8.91 9.41 8.92
8.28 8.6 9.69 8.74
Level of Factors
R
u
n
s
Example: For Output Y , the input is A. We will study 4 levels of A.

>> A1: 60 A2: 65 A3:70 A4:75
One-way ANOVA: resp. versus A2

Analysis of Variance for resp.
Source DF SS MS F P
A2 3 1.9788 0.6596 31.19 0.000
Error 8 0.1692 0.0211
Total 11 2.1480
Individual 95% CIs For Mean
Based on Pooled StDev
Level N Mean StDev -------+---------+---------+---------
a1 3 8.3600 0.0800 (---*---)
a2 3 8.7000 0.1819 (---*---)
a3 3 9.4800 0.1852 (---*--)
a4 3 8.8600 0.1039 (---*---)
-------+---------+---------+---------
Pooled StDev = 0.1454 8.50 9.00 9.50
As p value is <0.05
There is a significant diff.
Stat > ANOVA > One way
Stat > ANOVA > Main effects
Two way factorial Design
It is the simplest of the designs it selects only one factor that affects the response.
Example: For Output Y , the input is A. We will study 4 levels of A.

>> A1: 60 A2: 65 A3:70 A4:75
>> B1: M1 B2: M2 B3:M3 B4:M4
A1 A2 A3 A4
B1 97.6 98.6 99 98
B2 97.3 98.2 98 97.7
B3 96.7 96.9 97.9 96.5
Temp. Material Response
180 1 97.6
180 2 97.3
180 3 96.7
190 1 98.6
190 2 98.2
200 3 96.9
200 1 99.0
200 2 98.0
200 3 97.9
210 1 98.0
210 2 97.7
210 3 96.5
Two-way ANOVA: Response versus Temp, Material
Analysis of Variance for Response
Source DF SS MS F P
Temp 3 2.2200 0.7400 7.93 0.016
Material 2 3.4400 1.7200 18.43 0.003
Error 6 0.5600 0.0933
Total 11 6.2200
As p value is <0.05
There is a significant diff.
Stat > ANOVA > Main Effect plot
From the main Effects plot we can judge which is the optimal condition for the response.
What is a Factorial Design
It is a experiment in which if there are n factors and the no. of levels at each factor is k, the experiment is
carried out at all levels of the combination.
Advantages of factorial Design
It is implemented at combinations of all levels in all factors.
We can estimate effects of all factors and their interactions.
Example: Experiment of washing machine
A new design has been developed for a washing machine, and several prototypes have been built.
We would like to run an experiment to quantify the effect of wash time and water volume
on the cleanliness of clothes. .
X1

Low ( - ) 10
High ( + ) 20
Low ( - ) 10
High ( + ) 20
X2

Low ( - ) 4
Low ( - ) 4
High ( + ) 8
High ( + ) 8
X
1
: Wash time, in minutes
Level 1: 10 minutes Level 2: 20 minutes
X
2
: Amount of water, in gallons
Level 1: 4 gallons Level 2: 8 gallons
Y : Reflectance of clothes (a measure of brightness, or cleanliness)
Full factorial design: an experimental design in which all combinations of
factors at all levels are tested.
We will repeat each possible combination of four times, for a total of 16 Runs of the experiment.
This will give us more data at each run setting, and will give us more confidence in the results.
Run
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Wash Time
(minutes)
10
10
10
10
10
10
10
10
20
20
20
20
20
20
20
20
Amount of
Water (gal)
4
4
4
4
8
8
8
8
4
4
4
4
8
8
8
8
Change in
Reflectance
20.4
19.3
17.6
16.3
9.7
16.4
14.8
12.3
17.4
17.7
23.2
20.4
15.0
24.0
15.6
15.2
Response and Graph of 2 Factor
Experiment of washing machine
8
4
10 20
9.7
16.4
14.8
12.3
20.4
19.3
17.6
16.3
15.0
24.0
15.6
15.2
17.4
17.7
23.2
20.4
wash time (min)
A
m
o
u
n
t

o
f

w
a
t
e
r

(
g
a
l
l
o
n
)

Average
time (minutes)

10 20

8 13.3 17.4
15.4
(2.93)

(4.37)

4
18.4 19.7
19.0
(1.81)

(2.71)

15.8

18.6 17.2
average
average
amount of
water (gal)
Main Effects plot
Washing power
19
17
15
10 20 4 8
time (minutes)
18.6
15.8
19.0
15.4
2.8
Time and Water both
appear to have an effect
on Wash Performance
(due to the steep slope
of the lines)
There are 3 graphs used for analysis of Factorial arrangements:
Main Effects Plots - the effect of each individual X on Y
Interaction Plots - the combined effects of two factors changing simultaneously
Cube Plots - the Y response at each combination of factors
amount of water (gal)
Interaction
The plot is to compare the changed effect together with 2 factor.
20 minutes
20

10 minutes
18
16
14

4 8
gallons
18.4
19.7
13.3
17.4
Y=1.4
Interaction Plot
20 minutes wash time always gives
better wash performance, regardless
of gallons of water used.

At 10 minutes wash time, 4 gallons
gives significantly better wash
performance than 8 gallons.

Interpretation
change in reflectance
Use Interaction Plots to see if there are relationships between the factors that
could change the response
Cube Plot
Represents response value Y from each combination of the factors.
Cube plot
10 20
13.3 X =
8

gallons
4
time (minutes)
17.4 X =
18.4 X =
19.7 X =
The optimized value of present
experiment is 19.7 of washing
power on the condition of 20
minutes of wash time, 4 gallon
of water.

The lowest washing power
shows when in 10 minutes of
wash time, 8 gallon of water.
Interpretation
Each 2 levels on time and water
Measuring 4 times repetition for each RUN
OK Click
Design of experiment washing power
Input the factor name and level value
OK Click
Except the example of this case,
practice randomly when DOE usually.
OK twice Click
Design of experiment : Wash Power
Response value should be
input C7 column, after we
produce test equipment
along with treatment of RUN.
After each click of Main Interaction effect,
three times again-Setup Click
Individual select
All select
What is it?

A DOE which allows for more factors (Xs) to be included in the experimental
design for the same number of runs.

Why use it?

To test a large number of potential Xs with a minimum of runs.

When is it used?

When screening for the Vital Few Xs.

When economic considerations make it difficult to run a full factorial experiment.
Fractional Factorials are a powerful way to
perform experiments with a large number of Xs
A mathematical equation of describing a relationship between the Y and Xs
Creating a Model of process

Y = b
0
+ b
1
x + error where b
0
= constant b
1
= slope
The concept of Regression
1. What is regression?
50 100 150
200
250
300
350
Floor Space
A
n
n
u
a
l

S
a
l
e
s
There appears to be a linear relationship
between floor space and annual sales

That is, Is the Annual sales reducing or
increasing according to change floor space.

As floor area Increase the annual sales
increases.
IF theres a relation, How could we make it as mathematical model ?

When the total measurement value become fitting to certain measurement model,
Decide a and b so that sum of error which cant explain as a fitting model could be
minimized(least sum of square method)?
That is, if the data exists along the line above fitting line, Error variation become zero
However, this case cant be happened .
80 130 180
200
250
300
350
Floor Space
A
n
n
u
a
l

S
a
l
e
s
Y= 155.083 + 0.855208X
R-Sq = 75.9 %
Regression Plot
Y
_
Total
Variation
(X
i
,Y
i
)
Can explain Variation
Cant explain Variation
=Error
Total Variation = White Noise + Black Noise

( Y
i
- Y )
2
= ( Y
i
- Y
i
)
2
+ ( Y
i
- Y )
2

^ ^

The concept of Regression
Restart Minitab (Dont save anything!), and Enter the following data into C1 and C2:
Example:

You are trying to optimize the performance of an paint cure oven.
One theory says that blower fan velocity affects evaporation of solvent in the paint.
You are trying to prove that such a relationship exists by analyzing the data below.
One Variable Regression : Scatter Plot
0 100 200 300 400
0.0
0.5
1.0
1.5
Velocity
E
v
a
p
Looks linear!!!
One Variable Regression - Linear model
Independent
Graph Click
Storage Click
FITS are the predicted values of Ycalculated from the regression equation for each value of X
C
3
= 0.069 + 0.00383 C
1
(this is the Regression equation found in the Session Window)
or
Predicted Response = 0.069 + 0.00383 (Velocity)

RESIDUALS are errors. The presence of residuals demonstrates that the model does not represent
the data without mistakes. (Actual Response minus Predicted Response (Fits) for each point).
Thus:C
4
= C
2
- C
3

The average of the Residuals should always be 0.0
The Residuals should be randomly distributed. A pattern in the Residuals may indicate
that this model form is incorrect.
The Residuals should be normally distributed
Regression Analysis

The regression equation is
Evap = 0.069 + 0.00383 Velocity

Predictor Coef StDev T P
Constant 0.0692 0.1010 0.69 0.512
Velocity 0.0038288 0.0004378 8.75 0.000

S = 0.1591 R-Sq = 90.5% R-Sq(adj) = 89.3%

Analysis of Variance

Source DF SS MS F P
Regression 1 1.9351 1.9351 76.49 0.000
Residual Error 8 0.2024 0.0253
Total 9 2.137
The Session Window contains the analysis results...
Fail to reject H
o
Accept H
a
For a good model, this number should
be close to the same value as R
2
p-value of the Constant

H
o
: The line passes through the origin (0,0)...
(0 velocity = 0 evaporation)
H
a
: The line does not pass through the origin (0,0)...
(0 velocity = 0 evaporation)
Another Example:
Lot Size (X) 10 20 30 40 40 50 60 60 70 80
Man-hour (Y) 20 29 50 60 70 85 90 95 109 120
C.I. = Confidence Interval:
95% confidence that the means of all data will fall within this band

P.I. = Prediction Interval:
95% confidence that the individual data points will fall within this
band
CONTACTS
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Control Stage
What is the Control Phase?

Provides structured closure of projects and re-allocation of resources
Provides systematic changes to ensure the process continues in a new path of optimization.
Transfers sustainability of the improvement to the appropriate members of the Advocacy Team
Defines control plans specifying process monitoring and corrective actions
Provides communication of new procedures and systems to process owners
Ensures that the new process conditions are documented and monitored
Why is the Control Phase Important?

We do not want to re-fix the process later
We want to continue benefiting from the improvements
Confirmation of Improvement
In the Control phase, you need to ensure that you have indeed improved the process. This is
accomplished through re-base lining your process using rational subgroups.

You cannot confirm the improvement through initial DOE results only, or through sampling consecutive
parts. You must re-baseline the process to confirm the improvements are valid over the normal process
variation.
What are the Control Phase Activities?

Confirmation of Improvement
Confirmation you solved the Practical Problem
Benefit Validation
Buy-in to the Control Plan
Quality Plan implementation
Procedural changes
System changes
Statistical Process Control implementation
Mistake-proofing the process (eliminate impact of X whenever possible)
Closure documentation
Audit process
Scoping next project
Statistical Process Control (SPC)?
Statistical
Statistical methods are used to monitor and analyze process variation from sample data

Process
Any repetitive (manual or automatic) task or steps

Control
Provides an early warning signal that a process has changed. The warning allows you to
make decisions about the process while there is still time to correct the problem before it
can be seen in the final output.

Six Sigma Quality focuses on moving control up stream in a process to leverage the input
characteristics for the Y response. If we can measure and control the vital few Xs, control
of the Y should be assured.
Statistical Process Control

Enables us to control our process using statistical methods to signal when process
adjustments are needed.
What makes SPC a good control tool?
Processes vary because they are influenced by common-cause variation (white
noise) and special-cause variation

Common and special-caused variation can be seen in rational sub grouped samples:
common-cause variation characterized by steady state stable process variation
(captured by the within subgroup variation)
special-cause variation characterized by outside assignable causes on the
process variation (captured by the between: subgroup variation)

SPC signals when the steady state process variation has been influenced by outside
assignable causes
The Logic of SPC
Process
Input Output
Controller
Controllable factors
- Assignable causes
- Adjustable
- Special
Uncontrollable factors
- Common causes
- Noise
- Inherent causes
SPC has traditionally been used to monitor and control the output of processes. In this application, we are
measuring the dimensions of finished parts or characteristics of finished assemblies.

Six Sigma Quality focuses on moving control upstream to the leverage input characteristic for Y. If we can
measure and control the vital few Xs, control of Y should be assured.
A B C D E L M N O P
Samples
Process Capability
Desired
Output
X
Upper Control Limit
Lower Control Limit

Importance of Process Stability
Capability studies involve forecasting the future state of the process output.
An unstable process has no predictable behavior.
Stability is a necessary requirement for determining the capability of a process.
Definition of Stability
A process output is considered stable when it consists of only common-cause
variation.
Stability also means all subgroup averages and ranges are between their respective
control limits and display no evidence of assignable-source (special -cause) variation.
If nonrandom patterns of data appear on the control chart, or when a point is beyond
the control limits, then this is a strong signal that assignable-source (special-cause)
variation is present in your process.
Types of Control Charts
There are basically two types of control charts:
Variables charts - these charts are used for
monitoring X variables that are continuous,
such as, a diameter or consumer satisfaction
rating.
Attribute charts - these charts are used for
monitoring discrete X variables, such as,
good/bad counts, or inventory levels.

Refer to the diagram for a summary list of the
specific control chart types
Average & Range
Xbar & R
n < 10,
typically 3-5
Average &
Std Deviation
Xbar &
n 10
Median & Range
X & R
n<10,
typically 3-5
Individual &
Moving Range
XmR
n=1
Variables Charts
for monitoring
continuous X's
Fraction Defective
p Chart
typically n 50
tracks dpu/dpo
Number Defective
np Chart
n 50 (constant)
tracks # def
Number of Defects
c Chart
c>5
Number of Def/Unit
u Chart
n variable
Attributes Charts
for monitoring
discrete X's
Types of Control Charts
In order to select the appropriate control chart for monitoring your process, first determine if your key
process variables (Xs) are continuous or discrete. There are specific control charts for both continuous
data and discrete data.
File Open : S4 > Xbar - R
Calc > Random Data > Normal Distributions
- Generate : 10
- Store in column(s) : c1-c25
- Mean : 4.0
- Standard deviation : 0.6
( Only c7 Mean : 2.8, Standard deviation : 1.6

Manip > Stack > Stack Columns
- Stack the following columns : c1-c25
- Store the stacked data in : c26
Example of a variable control chart : Customer Satisfaction Index
Example of a variable control chart : Customer Satisfaction Index
0 S u b g r o u p 5 1 0 1 5 2 0 2 5
2 . 5
3 . 5
4 . 5
S
a
m
p
l
e

M

e
a
n

1
X = 3 . 9 3 8
3 . 0 S L = 4 . 5 4 6
- 3 . 0 S L = 3 . 3 2 9
0
1
2
3
4
S
a
m
p
l
e

R
a
n
g
e

R = 1 . 9 7 5
3 . 0 S L = 3 . 5 0 9
- 3 . 0 S L = 0 . 4 4 0 6

Customer Satisfaction Index
The weekly evaluation averages 7 and 16 fell below 3.957.
This change in consumer satisfaction score was driven by some assignable cause
(either system-related or region initiated).
The appropriate action would be to investigate, identify and fix the assignable
source of the variation.
The variation among the regional centers for week 7 is larger than expected.
An Out-of-control indication can come from either chart, independently.
Example of attribute control chart : appointment observation ratio.
A local dental group wanted to know why a lot of their patients fail to keep their appointments. A
problem solving team was assembled and decided to use a p Chart to track the percentages of no
shows. The dental clinic began logging monthly percentages of no shows for each month. Of the
total appointments for each month, % no shows plus % shows equal 100%. Since a no show
is a defective appointment, the average total fraction defective is called p.
Year 1996
Month Jul Aug Sep Oct Nov Dec
% Failed 40 36 36 42 42 40
Year 1997
Month Jan Feb Mar Apr May Jun
% Failed 20 26 25 19 20 18
Month Jul Aug Sep Oct
%Failed 16 10 12 12
monthly percentage defective
total average percentage defective
p = 236/600 = 0.39333, where np =
40+36+36+42+42+40 = 236
the fraction is based on 600,
total possible for 6 months

UCL = .39333+3(.39333*.60667)/100)
?
=
0.539
LCL = .39333- 3(.39333*.60667)/100)
?
=
0.246
File Open : Training > S4 > P_Chart.mtw
Stat > Control Charts > P
0 5 10 15
0.1
0.2
0.3
0.4
0.5
0.6
Sample Number
P
r
o
p
o
r
t
i
o
n
P Chart for Reject N
1
1
1
1
1
1
P=0.3933
3.0SL=0.5398
-3.0SL=0.2468
Control limits were established from the 1996 no show data.
The control chart shows a dramatic reduction in the number of missed appointments
after the implementation of the flex-time policy.
By adopting the new appointment policy the team was able to reduce the average
percentage of no shows from 39% to 18% (18% is the new average for 1997 data only).
Process Instability
UCL
LCL
X
A
B
C
C
B
A
Rule 1 Rule 2 Rule 3 Rule 4 Rule 5
Note: A, B, and C represent
plus and minus one, two
and three sigma zones
from the overall process
average.
A lack of control (out of control is indicated when one or more of the following rules apply to your
chart data:

1. A single point above or below a control limit
2. Two out of three consecutive points are on the same side of the central line, in Zone A or beyond.
3. Four out of five consecutive points are on the same side of the central line, in Zone B or beyond.
4. At least eight consecutive points are on the same side of the central line, in Zone C.

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