Essay --

ISix Sigma It is a Philosophy Anything less than ideal is an opportunity for improvement Defects costs money Understanding processes and improving them is the most efficient way to carry through lasting results It is a Process To achieve this level of performance you need to D efine, M easure, A nalyse, I mprove and C ontrol It is Statistics 6 Sigma processes will take on less than 3.4 reproachs per million opportunities13. Overview of Six Sigma PAIN, URGENCY, SURVIVAL COSTS OUT GROWTH 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 badly 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 can account for as much as 40% of the sales price. For example, a optical maser jet printer purchased for $1,000 may have cost the ma nufacturer $400 in rework just to make sure that you took home an average-quality product. For a ships 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 - molecule - 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 Spelling 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. Complex units Greater opportunities of defect than simple units Examples A units has 5 instigates, and in each part there are 3 opportunities of defects Total defect opportunities are 5 x 3 = 1533. DPO (Defect Per Opportunity) N umber of defects divided by number of defect opportunities Examples In previous case (15 defect opportunities), if 10 units have 2 defects. Defects per