Understanding Six Sigma
Understanding Six Sigma
Understanding Six Sigma
6σ
History of Six Sigma Understanding Six Sigma
The U.S Defense system developed a system known as SQC to manage the
complex weapon system & to handle the distributed defense contractors.
SQC:- is a set of tools that originated in the Military Standards and the basis of
SQC process was 3 sigma limits which yields a rate of 2700 defects per million.
After World war 2 US companies returned to their Original strategy while the
defeated countries were rebuilding their Industries. General Mc Arthur who was the
Governor general of JAPAN at that time Imported some of the U.S. Pioneers of
SQC to help train their counterparts in JAPAN.
By 1970~ 1980 Japanese producers were renowned for their Quality & durability.
U.S Companies slowly realized that to attain the desired Quality level two things
are necessary
One should be able to measure the quality level I.e it should be Quantifiable
& Measurable.
Motorola pioneered the Use of Six Sigma , Bill Smith VP &Senior QA
Manager of Motorola is regarded as the Father of Six Sigma.
History of Six Sigma Understanding Six Sigma
Improve Product
Quality Total Quality
Control
Quality
` “ Production line focussed Improvement “
Control
--- Lead by Japanese Companies
History of Six Sigma Understanding Six Sigma
Sample
The Characteristic of Sample : Statistic
Understanding Six Sigma
Types of Data
A.) Continuos Data : - The Data which can be measured and has unit
associated with it is called continuous data. It can be in fractions.
E.g Length of a Playground, Thickness of the paint coating, ect.
B) Attribute Data :- The data which can has only two options Yes/No,
True/False is called Attribute data.
E.g Quality of Food ( OK/NG),
1 , 2 , 3 , 4 , 5 ; Mean = 1+ 2 + 3 + 4 + 5 = 15/5 = 3
X = ΣX =
n
Mean of Sample, i x1 +x2 +x3 +x4+……..xn
I=1
n
b.) Median : The Median term of the given data is given by
Median = n + 1 th term, where n is the number of
2
Observations in the given data(arranged in increasing order).
Median Term = 4.5th Term = 4th Term + 0.5 ( 5th - 4th Term ) = 3 + 0.5 ( 4- 3) = 3.5
Understanding Six Sigma
th th th
Q1 = n + 1 , Q2 = 2 * n + 1 , Q3 = 3 * n + 1
4 4 4
where Q1,Q2 and Q3 are 1st 2nd & 3rd Quartiles resp. Interquartile Range ( IQR ) = Q3 -
Q1, contains 50 % of the Total data points
Upper Limit UL = Q3 + 1.5 IQR
Lower Limit LL = Q1 - 1.5 IQR
Eg. Calculate the First , second & Third Quartile for the data given below. Also calculate the IQR &
Upper & Lower Limits. 10, 17, 14, 23, 18 , 11 , 9, 13
Sol . Arrange data in Increasing order = 9 , 10 , 11, 13, 14 , 17 , 18 , 23
Q1 = [ ( 8 +1) / 4 ] th = 2.25th Term = 2nd Term + 0.25 ( 3rd Term - 2nd Term ) = 10 + 0.25( 1) = 10.25
Q2= 2* 2.25th Term = 4.5th Term = 13 + 0.5 (14 - 13 ) = 13.5, Q3= 3* 2.25th Term = 6.75th Term = 17.75
IQR = Q3 -Q1 = 17.75 - 10.25 = 7.50 ; UL = 17.75 + 1.5( 7.50 ) = 29 ; UL = 10.25 - 1.5 (7.50) = -1
Six Sigma : Introduction Understanding Six Sigma
1) Statistical Measurement :
2) Business Strategy :
3) Philosophy :
Z Level Harvest
Sweet Fruit
Z PPM Design for Manufacturablity
5 σ Wall, Improve Designs
6 3.4
Bulk of Fruit
5 233 Process Characterization and Optimization
4 σ Wall, Improve Processes
4 6,210
Lower Hanging Fruit
Seven Basic Tools
3 66,807
3 σ Wall, Work with suppliers
2 308,537 Ground Fruit
Logic and Intuition
Process Defect
Capability Opportunity
Six Sigma : Introduction Understanding Six Sigma
Objective
Theme Selection
Theme
Selection
• Define problem
(Define) • Define range
Measurement
• Measuring capability
Y Capability OK ? Measurement
Redesign of CTQ
N • Clearfy measuring method
Analysis
Analysis • Clearfy factors
Redesign ? Y
N
• Find vital few
Improvement Improvement • Optimize process
N Capability OK ?
• Control vital few
Y Control
• Set up control system
Control
3σ Vs 6σ Company Understanding Six Sigma
• Produces 66,807 defects per million • Produces 3.4 defects per million
opportunities
opportunities
• Relies on capable prcesses that
• Relies on inspection to find defects don’t produce defects
• Belives high quality is expensive • Knows that the high quality producer
is the low cost produer
• Benchmarks themselves against
their competition • Benchmarks themselves against
the best in the world
• Believes 99% is good enough • Believes 99% is Unacceptable
• Defines CTQs internally • Defines CTQs from customers
Define-Application of Six Sigma Understanding Six Sigma
Six Sigma is a tool that can be applied to all business systems, Design,
Manufacturing, Sales & Service
Define Phase
• Pareto Analysis
• Process Mapping
• Logic Tree
• RTY
• QFD
• FMEA
• Brainstorming
Define Understanding Six Sigma
Pareto Analysis : The Origin of the Tool lies with the Italian Economist Vilfredo
Pareto. Pareto Principle is also known as 80/20 .20% of items purchased by the
company accounts for 80% of the value 1st Item in the figure below indicates the
highest no of faults
Pareto Charts are a type of bar chart in which the horizontal axis represents categories
of interest, rather than a continuous scale. The categories are often "defects." By ordering
the bars from largest to smallest, a Pareto chart can help you determine which of the defects
comprise the "vital few" and which are the "trivial many." A cumulative percentage line helps
you judge the added contribution of each category. Pareto charts can help to focus
improvement efforts on areas where the largest gains can be made.
Pareto chart can draw one chart for all your data (the default), or separate charts for groups
within your data.
Example :The company you work for manufactures metal bookcases. During final
inspection, a certain number of bookcases are rejected due to scratches, chips, bends, or
dents. You want to make a Pareto chart to see which defect is causing most of your
problems. First you count the number of times each defect occurred, then you enter the
name of the defect each time it occurs into a worksheet column called Damage.
Define Understanding Six Sigma
Damage Counts • Choose Stat > Quality Tools > Pareto Chart.
Scratch 274 • Choose Chart defects data in and enter
Scratch 59 Damage. Click OK.
Bend 19
Graph window output
Chip 43
Dent 4
Scratch 8
Chip 6
Scratch 10
Define Understanding Six Sigma
Process Mapping
• Process mapping is used to document process to examine part and information flow.
• It is a key tool in identifying opportunities for improvement.
• 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 Understanding Six Sigma
w
Transmission
Get a Credit Stand by Drive the
loan check for a loan new car
Define Understanding Six Sigma
99.0%
99.6% 81.0%
Lamination Inductance
Why Mechanical OD
Rotor
Endrings Area A Core length
RPM Stator
Area B
Assembly
6σ is a kind of type which can improve the problem (RPM) by practicing improvement
activity for the lower level displayed in the long run
Define Understanding Six Sigma
5 Why Analysis : Five Why analysis is done to determine the root cause of the
Problem . It is a kind of brainstorming to reach the root cause of the Problem.
It is Observed that by the time you arrive at the 5th Why the solution of the
Problem is with you. It is not essential to ask why 5 times, you can locate the root
cause at the 3rd or 4th Why also..
Define Understanding Six Sigma
RTY : Rolled throughput Yeild : It is the Probability that the product will pass
where YFT’s are the First time yields of the Individual Stages/Process
connected in series.
YNA gives the average yield of line . This is used to calculate when we have
To increase productivity
Goal through Quality Improvement
Input
-Process 1: (Acceptance-
rate:99.0%) Overall process’s defect, m/c
Target trouble, No work,L/B,Model
-Process 2 (92.0%) Change Loss,Non-value added work
-Process 3 (97.0%)
Tool 6 Sigma
Final Inspn.
(97.0%) TDR, 6 Sigma, NWT,
Activity
One man one project
Un-controlled Total Process Final
Loss Defect-rate Product
- Process defect rate
- Self & sequential inspection
To improve all
RTY = 0.99×0.92×0.97×0.97= 85.7 % the hidden defects of all
* RTY : Rolled Throughput Yield the processes
Define Understanding Six Sigma
No
Scrap
(Dent)
Define Understanding Six Sigma
QFD is tool which is used to generate data in the form of taking feedback from the
customer through quality matrix, converting those requirements into Tech changes
in the Process through Quality Matrix.
• Identify key consumer cues 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(CTQ’S).
• Rank part characteristics by impact on meeting technical specifications(CTQ’S)
QFD translates the Voice of the Consumer into the Voice of the Engineer.
Define Understanding Six Sigma
Engineer's Voice
Priroty
System for
Capacity of
HE Coils
Charging
Fins per
Ranking
Type of
Blower
/Scroll
Motor
Comp
Inch
Gas
Less Price 9 3 1 1 1 10
Low Noise 3 9 9 1 1 6
Requirement
Customer's
Air Flow 1 1 9 3 3 5
Less Power 9 9 1 3 1 8
More Cooling 9 3 3 9 9 3
Rating 212 170 126 82 66
Define Understanding Six Sigma
QFD : Sub Process 2 : To Convert Engineer’s Voice into Potential CTP’s & CTQ’s
Comp Specifications
EER Specifications
HE Design Spec to
Variation less than
Gas Charging Qty
be maintained
KW Rating
Priroty
Ranking
5mg
Type of Comp 9 1 3 3 1 212
Engineer's Voice
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.
Define Understanding Six Sigma
FMEA Process
failure modes.
a) Freewheel
b) Round Robin
c) Card Method
In Card type method the Individuals write their Ideas on the Card
Measure Understanding Six Sigma
Measure Phase
• Gage R & R
• Types of Sampling
• Process Capability
• Four Block Diagram
Overall Variation
Repeatability Reproducibility
Repeatability ? Repeatability :
“Getting consistent results”
☞ Variation observed with one measurement
device when used several times by one operator
while measuring the identical characteristic on
the same parts.
Measure/Re-measure variation
Reproducibility ?
Operator B
Variation obtained from different operators
using the same device when measuring the Operator C
identical characteristic on the same parts.
Operator A
Reproducibility
Gage R & R - Purpose Understanding Six Sigma
Gage R&R
• Requires minimum 2 operators and minimum 5 parts with each part measured at
least once.
• This method cant separate the total variation Observed through Gage R &R into
repeatability & reproducibility
• Permits speedy acceptance for adapting Gauge.
5.15 indicates the Confidence Level of 99 % ; 6.0 indicates a Confidence Level of 99.73
%
•Gauge R & R as % of Tolerance = (0.3464 x 100) /1.0 = 34.64 %
Gauge Error is calculated by multiplying the average range by a constant d ( to be
taken from the Table )
Gage R & R ~ Short Study Understanding Six Sigma
★ Blind Test :
• The Operator should not be aware that Gage R&R is going On.
• The Previous Readings should not be conveyed while taking Next Reading.
★ Gage selection(Resolution)
•The Gage must have a resolution of less than or equal to 10% of the one sided
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.
★ Intentional Sampling :
• The samples must not be randomly selected, the sampling must be proceeded
by a plan, so the total range of variation and specification are covered.
• Most values should lie near the LSL/USL , because the chances of discrepancy
are more near these limits
Gage R &R ~ Long Study Method Understanding Six Sigma
≤ 20% : Acceptable
≥ 30% : Unacceptable
An improvement plan to lower the gauge R&R variation should be implemented. If there
is no improvement , consideration should be made for the risks associated with high
Gauge R &R
Select: ANOVA
Gage R &R - Long Study Method Understanding Six Sigma
X - R Method ANOVA
Repeatability Repeatability
Reproducibility Reproducibility
Operator by Part
Operator
Source DF SS MS F P
Parts 9 81.6 9.06667 204.000 0.000
Operator 1 0.1 0.10000 2.250 0.168
Parts * Operator 9 0.4 0.04444 0.889 0.552
Repeatability 20 1.0 0.05000
Total 39 83.1
Source DF SS MS F P
Parts 9 81.6 9.06667 187.810 0.000
Operator 1 0.1 0.10000 2.071 0.161
Repeatability 29 1.4 0.04828
Total 39 83.1
Gage R &R - Long Study Method Understanding Six Sigma
Time 2
Actual
values
Linearity is the difference in Actual
the bias values throughout the values
expected operating range of the
gage.
(Gage is less accurate at the low (No Bias)
Reference value
end of specification or operating
range than at the high end).
Reference values
Zshift
2.0 A B
(Process 1.5
Control)
1.0
C D
0.5
Good
1 2 3 Z.st 4 5 6
Poor Good
(Process Technology )
5 G G G G = 3 / 20 x 100% = 15%
6 G G G G
7 NG NG NG NG
• If the results of checkers are different,
8 NG NG G G the gage
9 G G G G
10 G G G G • must be improved and re-evaluated.
11 G G G G
12 G G G G • If the gage cannot be improved, it is
13 G NG G G
14 G G G G
unacceptable and an alternate
15 G G G G measurement system should be found.
16 G G G G
17 G G G G
18 G G G G
19 NG NG NG NG
20 G G G G
Gage R & R - Importance Understanding Six Sigma
requirements are the numerical values within which the system is expected to operate, that
is, the minimum and maximum acceptable values. Specifications are numerical
Central limit theorem states that as the sample size increases, the sampling
distribution of the mean will approach normality. Statisticians use the normal distribution as
an approximation to the sampling distribution, whenever the sample size is at least 30.
SEM : Standard Error of Mean
Standard error of mean gives the difference between
the standard deviation of Population & Standard
deviation of sample.
SEM *
Sample Size
n=8 n=30
Sample Size
Measure - Central Limit Theorem Understanding Six Sigma
From the graph shown on the previous slide, it is evident that for sample size 30 the difference
between the standard deviations of sample and population is very less. Even though this
difference reduces further by increasing sample size, but this reduction is negligible. Hence
As the sample size increases, above 8 samples the difference between standard
deviation of Population & sample reduces drastically. At sample size 30 the difference
is minimum and it remains constant & beyond 30 it remains constant., so the curve
line representing the difference becomes parallel to X-axis.
Measure - Sampling Understanding Six Sigma
Types of Sampling
1.) Random Sampling : In this type of Sampling each data point of the Population
has an equal chance/ Probability of being selected.
Example : During the draw of lottery tickets each & every lottery ticket number has an
equal chance of winning the Prize.
2.) Stratified Sampling : In this type of Sampling , the sub group taken for sampling
has data points of same type.
Example : For determining the Quality of Food in the Canteen, if we take the Sample
group in which all Supervisors/Operators/Managers are there, then the difference in
the variation of taste within the sub group would be minimum but among the Sub
groups would be maximum.
3) Clustered Sampling : In this type of Sampling,each & every type of data point
present in the population would be covered in the Sample.
Example : In the above example if take the sample in such a way that in the subgroup
operator, supervisor and manager are taken so the difference in the taste would be
maximum within the sub group and minimum among the subgroup.
Measure Understanding Six Sigma
BLACK NOISE
(Signal)
RATIONAL
SUBGROUPS
PROCESS RESPONSE
WHITE NOISE
(Common Cause
variation)
TIME
Measure Understanding Six Sigma
White Noise
• White noise represents the variation present in every process. Also known as common
cause variation
• It is not controllable variation within the existing technology.
• Represents that best the process can be with the present technology(Inherent process
capability).
Black Noise
• Black Noise represents the outside influences on a process that cause average to shift and
• It represents how the process is actually performing over time(Sustained process capability).
Measure Understanding Six Sigma
Desired
Desired
Current
Current situation
situation
Shift
The greater the design margin, the lower the Total Defects Per Unit
Process Width
Zlt = 3Cpk
Measure Understanding Six Sigma
Is it Control or Technology?
. Data taken over a period of time . Data taken over a short enough
long enough that external factors period of time that there are no
can influence the process. external influences on the
process Z st : Z lt Technology:
Control
. Z lt (σlt ) Z st (σst )
Zlt is always less tahn Zst,
because the long term value is
. Cpk . Cp reduced by the shift of the
process
. Defined by technology and process . Defined by technology
control . Process Capability
. Process Performance (Entitlement - The best process
can be)
Analyze Phase
• Cause & Effect Diagram
• Hypothesis Testing
• Mean Testing
• Variance Testing
• Regression Analysis
Cause
Effect
Cause
Cause
Cause
The Purpose of this tool is to Find out the start of the collection of Data and analysis.
It list down all the Probable causes responsible for the main effect . Cause & Effect
Diagram is also known as Fishbone Diagram / 4M Diagram.
The Symptom or result is put under the Dark Box on the Right.. Lighter Boxes at the end of
the Large Bones are main groups in which ideas are classified. The Lighter Boxes may
consist of Five Ms - Man,Machine,Measurement & Method.(Money can be considered
wherever relevant) . The Middle Bones indicates the direction of path from cause to effect
Analyze - Cause & Effect Diagram Understanding Six Sigma
Machine
Man
Cylinder
New casual Failure
Die
Handling Setting
problem M/C not
clean OUT CASE
DENT
Dented sheet
Chips on Piece
sheet Piece
Sheet unloading
check
thickness
Material Method
Analyze - Hypothesis Understanding Six Sigma
Hypothesis Testing
Hypothesis means something taken to be true for the Purpose of argument or
Investigation , an assumption.
Hypothesis Testing is defined as the comparison of two Populations (equality of mean/
variance ) by taking samples from those Populations. It is assumed in the beginning that the
two Populations are equal (Null Hypothesis ;µ1 µ2 ; σ1 = σ2 ) or not equal (Alternate
Hypothesis : µ1≠ µ2 ; σ1 ≠ σ2 ) . The equality is confirmed by actually conducting tests on
the sample. There is always a risk associated with the Hypothesis , in case the sample
taken for comparison from Population does not correctly represent the Population..
There are many types of hypothesis test. The test is selected depending on the type of
data or the comparison required.
Continuous Data Discrete Data
1) F-test : Compares Variances 3) Chi Square Test : Compares counts
• Levene’s Test • Goodness of Fit
• Bartlett’s Test • Contingency Table
2) t-test : Compares means
• 1 sample t-test • Paired t-test
• 2 sample t-test
Analyze - Hypothesis Understanding Six Sigma
Hypothesis Testing
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.
Population
Ho Ha
Incorrect Decision
In this case as the samples does not In this case as the samples
correctly represent the Population Type 1 correctly represent the Population
Ha Error
so sample mean ≠ Population mean. so sample mean = Population
Incorrect Decision α mean.
Correct Decision
Analyze - Hypothesis Understanding Six Sigma
Important Terms
1.) Type 1 Error : This error gives us the probability of rejecting the Right Material .
This happens when a weird sample gets selected for the comparison of
mean/variance. It is also known as α − Error or Producer’s Risk. Generally It’s value
lies around 5 %.
2. ) Type 2 Error : This error gives us the probability of accepting the wrong
material. This also happens when a weird sample is selected for comparison. It is also
known as β − Error or Consumer’s Risk. It’s value generally lies around 10 %.
3 .) 1-α = Confidence of the Test
The probability that can be determined as a right thing when the Null
Hypothesis is correct.
Analyze
1 Sample 1 Proportion
Z Test Test 2 Variance
Test
1 Sample 2 Proportion
t Test Test
2 Sample Chi-Square
t Test Test
ANOVA
Testing
Analyze Understanding Six Sigma
Example : Measurements were made on nine widgets. You know that the distribution of
measurements has historically been close to normal with s = 0.2. Because you know s, and
you wish to test if the population mean is 5 and obtain a 90% confidence interval for the
mean, you use the Z-procedure.
Solution : Values
4.9
1 Open the worksheet enter the values.. 5.1
4.6
2 Choose Stat > Basic Statistics > 1-Sample Z. 5
5.1
3 In Samples in Columns, enter Values.
4.7
4 In Standard deviation, enter 0.2. 4.4
4.7
5 In Test mean, enter 5. 4.6
Example : Measurements were made on nine widgets. You know that the distribution of
widget measurements has historically been close to normal, but suppose that you do not
know σ. To test if the population mean is 5 and to obtain a 90% confidence interval for the
mean, you use a t-procedure.
Analyze Understanding Six Sigma
Solution : Values
4.9
1 Open the worksheet enter the data. 5.1
2 Choose Stat > Basic Statistics > 1-Sample t. 4.6
5
3 In Samples in columns, enter Values. 5.1
4.7
4 In Test mean, enter 5. 4.4
4.7
5 Click Options. In Confidence level enter 90. Click OK in each dialog box 4.6
One-Sample T: Values
Test of mu = 5 vs not = 5
Variable N Mean StDev SE Mean 90% CI T P
Values 9 4.78889 0.24721 0.08240 (4.63566, 4.94212) -2.56 0.034
Result Interpretation :
The p-value < 0.05 , also “ 0 “ does not lie within the Confidence Interval so Null Hypothesis
is rejected and Alternate Hypothesis is accepted. It confirms that the sample mean is not
equal to Population Mean ).
Analyze Understanding Six Sigma
2 Sample t test : computes a confidence interval and performs a hypothesis test of the
difference between two population means when σ 's are unknown and samples are drawn
independently from each other. This procedure is based upon the t-distribution, and for small
samples it works best if data were drawn from distributions that are normal or close to
normal. You can have increasing confidence in the results as the sample sizes increase.
Example : A study was performed in order to evaluate the effectiveness of two devices for
improving the efficiency of gas home-heating systems. Energy consumption in houses was
measured after one of the two devices was installed. The two devices were an electric vent
damper (Damper=1) and a thermally activated vent damper (Damper=2). The energy
consumption data (BTU.In) are stacked in one column with a grouping column (Damper)
containing identifiers or subscripts to denote the population. Suppose that you performed a
variance test and found no evidence for variances being unequal .Now you want to compare
the effectiveness of these two devices by determining whether or not there is any evidence
that the difference between the devices is different from zero.
Analyze Understanding Six Sigma
BTU.In Damper
7.87 1
9.43 1
Solution :
7.16 1
8.67 1
12.31 1
9.84 1
Minitab Output :
Two-Sample T-Test and CI: BTU.In, Damper
Two-sample T for BTU.In
Damper N Mean StDev SE Mean
1 40 9.91 3.02 0.48
2 50 10.14 2.77 0.39
Difference = mu (1) - mu (2)
Estimate for difference: -0.235250
95% CI for difference: (-1.450131, 0.979631)
T-Test of difference = 0 (vs not =): T-Value = -0.38 P-Value = 0.701 DF = 88
Both use Pooled StDev = 2.8818
Analyze Understanding Six Sigma
Result Interpretation :
Minitab displays a table of the sample sizes, sample means, standard deviations, and
standard errors for the two samples.
Since we previously found no evidence for variances being unequal, we chose to use the
pooled standard deviation by choosing Assume equal variances. The pooled standard
deviation, 2.8818, is used to calculate the test statistic and the confidence intervals.
A second table gives a confidence interval for the difference in population means. For this
example, a 95% confidence interval is (-1.45, 0.98) which includes zero, thus suggesting that
there is no difference. Next is the hypothesis test result. The test statistic is -0.38, with p-
value of 0.701, and 88 degrees of freedom.
Since the p-value is greater than commonly chosen a-levels, there is no evidence for a
difference in energy use when using an electric vent damper versus a thermally activated
vent damper.
Analyze Understanding Six Sigma
ANOVA : is a tool with which we can compare several means. It is a tool used to search for
the significant X factors that have an influence on the response variable Y. In effect, analysis
of variance extends the two-sample t-test for testing the equality of two population means to
a more general null hypothesis of comparing the equality of more than two means, versus
them not all being equal.
Example : You design an experiment to assess the durability of four experimental carpet
products. You place a sample of each of the carpet products in four homes and you measure
durability after 60 days. Because you wish to test the equality of means and to assess the
differences in means, you use the one-way ANOVA procedure (data in stacked form) with
multiple comparisons. Generally, you would choose one multiple comparison method as
appropriate for your data. However, two methods are selected here to demonstrate Minitab's
capabilities.
Analyze Understanding Six Sigma
Solution :
1 Open the worksheet enter the data
2 Choose Stat > ANOVA > One-Way.
3 In Response, enter Durability. In Factor, enter Carpet.
4 Click Comparisons. Check Tukey's, family error rate. Check Hsu's MCB, family error rate
and enter 10. Durability Carpet
18.95 1
5 Click OK in each dialog box. 12.62 1
11.94 1
14.42 1
10.06 2
7.19 2
7.03 2
14.66 2
10.92 3
13.28 3
14.52 3
12.51 3
10.46 4
21.4 4
18.1 4
22.5 4
Analyze Understanding Six Sigma
Source DF SS MS F P
Carpet 3 146.4 48.8 3.58 0.047
Error 12 163.5 13.6
Total 15 309.9
Example : A county district attorney would like to run for the office of state district
attorney. She has decided that she will give up her county office and run for state office if
more than 65% of her party constituents support her. You need to test H0: p = .65 versus
H1: p > .65.
As her campaign manager, you collected data on 950 randomly selected party members
and find that 560 party members support the candidate. A test of proportion was
performed to determine whether or not the proportion of supporters was greater than the
required proportion of 0.65. In addition, a 95% confidence bound was constructed to
determine the lower bound for the proportion of supporters.
95%
Lower Exact
The p-value of 1.0 suggests that the data are consistent with the null hypothesis (H0: p =
0.65), that is, the proportion of party members that support the candidate is not greater
than the required proportion of 0.65. As her campaign manager, you would advise her not
to run for the office of state district attorney.
Analyze Understanding Six Sigma
Example : As your corporation's purchasing manager, you need to authorize the purchase
of twenty new photocopy machines. After comparing many brands in terms of price, copy
quality, warranty, and features, you have narrowed the choice to two: Brand X and Brand Y.
You decide that the determining factor will be the reliability of the brands as defined by the
proportion requiring service within one year of purchase.
Because your corporation already uses both of these brands, you were able to obtain
information on the service history of 50 randomly selected machines of each brand. Records
indicate that six Brand X machines and eight Brand Y machines needed service. Use this
information to guide your choice of brand for purchase.
3 In First sample, under Trials, enter 50. Under Events, enter 44.
4 In Second sample, under Trials, enter 50. Under Events, enter 42. Click OK.
Analyze Understanding Six Sigma
Since the p-value of 0.564 is larger than commonly chosen a levels, the data are consistent
with the null hypothesis (H0: p1 - p2 = 0). That is, the proportion of photocopy machines that
needed service in the first year did not differ depending on brand. As the purchasing
manager, you need to find a different criterion to guide your decision on which brand to
purchase.
You can make the same decision using the 95% confidence interval. Because zero falls in
the confidence interval of (-0.096 to 0.176) you can conclude that the data are consistent
with the null hypothesis. If you think that the confidence interval is too wide and does not
provide precise information as to the value of p1 - p2, you may want to collect more data in
order to obtain a better estimate of the difference.
Analyze Understanding Six Sigma
Chi Square Test : It is a measure of the Observed & expected frequencies. Chi
Square test is a statistical test which consists of three different type of Analysis.
1) Goodness of Fit
2) Test for Homogeneity
3) Test for Independence
The test for Goodness of fit determines if the sample under analysis was drawn
from a population that follows some specified distribution .
Test for Homogeneity answers the proposition that several populations are
homogenous with respect to some characteristic.
Test for Independence is for testing Null hypothesis that two criteria of
Classification
Analyze Understanding Six Sigma
Example : You are interested in the relationship between gender and political party
affiliation. You query 100 people about their political affiliation and record the number of
males (row 1) and females (row 2) for each political party. The worksheet data appears as
follows:
28 18 4
22 27 1
3 In Columns containing the table, enter Democrat, Republican and Other. Click OK.
Analyze Understanding Six Sigma
Session window output
Chi-Square Test: Democrat, Republican, Other
Expected counts are printed below observed counts
Chi-Square contributions are printed below expected counts
Democrat Republican Other Total
1 28 18 4 50
25.00 22.50 2.50
0.360 0.900 0.900
2 22 27 1 50
25.00 22.50 2.50
0.360 0.900 0.900
Total 50 45 5 100
Chi-Sq = 4.320, DF = 2, P-Value = 0.115
2 cells with expected counts less than 5.
Analyze Understanding Six Sigma
Session window output
Chi-Square Test: Democrat, Republican, Other
Expected counts are printed below observed counts
Chi-Square contributions are printed below expected counts
Democrat Republican Other Total Observed Values
1 28 18 4 50 Expected Values
25.00 22.50 2.50
0.360 0.900 0.900 Chi Square Values
2 22 27 1 50
25.00 22.50 2.50 Row Totals
Formulae’s :
procedures, including the two sample t-test procedures, assume that the two samples
are from populations with equal variance. The variance test procedure will test the
Example : A study was performed in order to evaluate the effectiveness of two devices for
improving the efficiency of gas home-heating systems. Energy consumption in houses was
measured after one of the two devices was installed. The two devices were an electric vent
damper (Damper = 1) and a thermally activated vent damper (Damper = 2). The energy
consumption data (BTU.In) are stacked in one column with a grouping column (Damper)
containing identifiers or subscripts to denote the population. You are interested in comparing
the variances of the two populations so that you can construct a two-sample t-test and
confidence interval to compare the two dampers.
Levene's Test
Test Statistic 0.00
P-Value 0.996
2
1
Damper
5 10 15 20
BTU.I n
Analyze Understanding Six Sigma
Result Interpretation
The variance test generates a plot that displays Bonferroni 95% confidence intervals for the
population standard deviation at both factor levels. The graph also displays the side-by-side
boxplots of the raw data for the two samples. Finally, the results of the F-test and Levene's
test are given in both the Session window and the graph. Note that the 95% confidence level
applies to the family of intervals and the asymmetry of the intervals is due to the skewness of
the chi-square distribution.For the energy consumption example, the p-values of 0.558 and
0.996 are greater than reasonable choices of a, so you fail to reject the null hypothesis of the
variances being equal. That is, these data do not provide enough evidence to claim that the
two populations have unequal variances. Thus, it is reasonable to assume equal variances
Test for Equal Variance is used when comparing the variance of two or more than
two populations
Example : You study conditions conducive to potato rot by injecting potatoes with bacteria
that cause rotting and subjecting them to different temperature and oxygen regimes. Before
performing analysis of variance, you check the equal variance assumption using the test for
equal variances.
Bartlett's Test
2 Test Statistic 2.71
P-Value 0.744
10 6 Levene's Test
Test Statistic 0.37
P-Value 0.858
10
16 6
10
The test for equal variances generates a plot that displays Bonferroni 95% confidence
intervals for the response standard deviation at each level. Bartlett's and Levene's test
results are displayed in both the Session window and in the graph. Note that the 95%
confidence level applies to the family of intervals and the asymmetry of the intervals is
For the potato rot example, the p-values of 0.744 and 0.858 are greater than reasonable
choices of a, so you fail to reject the null hypothesis of the variances being equal. That is,
these data do not provide enough evidence to claim that the populations have unequal
variances.
Analyze - Regression Understanding Six Sigma
350
There appears to be a linear
relationship 300
Annual Sales
between floor space and annual
sales… 250
200
That is, Is the Annual sales reducing or
increasing according to change floor 50 100 150
Example : You are a manufacturer who wants to obtain a quality measure on a product, but
the procedure to obtain the measure is expensive. There is an indirect approach, which uses
a different product score (Score 1) in place of the actual quality measure (Score 2). This
approach is less costly but also is less precise. You can use regression to see if Score 1
explains a significant amount of variance in Score 2 to determine if Score 1 is an acceptable
substitute for Score 2.
Score1 Score2
4.1 2.1
2.2 1.5
2.7 1.7
6.0 2.5
8.5 3.0
4.1 2.1
9.0 3.2
8.0 2.8
7.5 2.5
Analyze - Regression Understanding Six Sigma
Analyze Phase
• 4M Diagram
• Hypothesis Testing
• Mean Testing
• Variance Testing
• Regression Analysis
4 M Diagram
MACHINE
MAN
Cause
Effect
Cause
Cause
Cause
METHOD MATERIAL
4 M ( Man, Method, Machine & Material ) Diagram is used to list down all the Probable
factors (causes ) responsible for the Major Problem ( Effect ). After brainstorming the
Significant Factors are selected for further comparison ( Hypothesis Testing )
The Symptom or result is put under the Dark Box on the Right.. Lighter Boxes at the end of
the Large Bones are main groups in which ideas are classified. The Lighter Boxes consist
of Four Ms - Man,Method, Machine & Material. The Middle Bones indicates the direction of
path from cause to effect.
Analyze Understanding Six Sigma
The test for equal variances generates a plot that displays Bonferroni 95% confidence
intervals for the response standard deviation at each level. Bartlett's and Levene's test
results are displayed in both the Session window and in the graph. Note that the 95%
confidence level applies to the family of intervals and the asymmetry of the intervals is
For the potato rot example, the p-values of 0.744 and 0.858 are greater than reasonable
choices of a, so you fail to reject the null hypothesis of the variances being equal. That is,
these data do not provide enough evidence to claim that the populations have unequal
variances.
Analyze - Regression Understanding Six Sigma
350
There appears to be a linear
relationship 300
Annual Sales
between floor space and annual
sales… 250
200
That is, Is the Annual sales reducing or
increasing according to change floor 50 100 150
Example : Do regression and residual analysis for yield as shown in the table.Interpret the
output results. Please note that A,B,C are factors & yield is response.
S.No. A B C Yield
1 2 3 5 85
2 2 1 10 71
3 8 3 15 3129
4 6 4 20 1384
5 5 5 25 875
6 8 3 30 3159
7 5 1 35 823
8 3 2 40 254
9 2 2 45 150
10 1 8 50 298
11 9 7 55 4631
12 5 6 60 978
13 3 5 65 367
14 2 6 70 296
15 1 7 75 303
16 4 2 80 556
17 2 4 85 266
18 1 6 90 294
19 2 5 95 313
20 5 6 100 1058
Solution :
1.) Enter the columns A, B, C (Factors ) and Yield ( response ) in minitab Excel
sheet.
Analyze - Regression Understanding Six Sigma
4) Click OK.
Regression Analysis: Yield versus A, B, C
Source DF Seq SS
A 1 23966672
B 1 1314871
C 1 27018
Unusual Observations
Response
minimizes the sum of the squared
distances between the points and the
fitted Line.`
Predictors
Fitted Value : The predicted y or ; the mean response value for the given
predictor values using the estimated regression equation.
Residuals :The difference (ei) between the observed values and predicted or
fitted values (data minus fits). This part of the observation is not explained by the
fitted model. The formula for the residual of an observation is: ei = (yi - i)
Linear Y = bo + b1X
Quadratic Y = bo + b11X2
Y is the response; X is the predictor; bo is the intercept; and b1, b11, and b111 are the
coefficients
Control Understanding Six Sigma
Control Phase
• Statistical Process Control
• Control Chart
Control Charts are used to track process statistics over Time and to detect
the presence of Special Causes.
• Provides structured closure of projects and re-allocation of resources
• Provides systematic changes to ensure the process continues in a new path of
optimization. It Transfers sustainability of the improvement to the appropriate
members of the Advocacy Team
• Provides communication of new procedures and systems to process owners
• Ensures that the new process conditions are documented and monitored
Control Understanding Six Sigma
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 X’s, control
of the Y should be assured.
Enables us to control our process using statistical methods to signal when process
adjustments are needed.
Control Understanding Six Sigma
The Logic of SPC Desired Process Capability
Output
●
Upper Control Limit
Controller ●
Lower Control Limit
Samples
A B C D E L M N O P
Controllable factors Uncontrollable factors
- Assignable causes - Common causes
- Adjustable - Noise
- Special - Inherent causes
SPC has traditionally been used to monitor and control the output of processes.
Six Sigma Quality focuses on moving control upstream to the leverage input
characteristic for Y. If we can measure and control the vital few X’s, control of Y
should be assured.
Control Understanding Six Sigma
Control Charts
A Control chart is a graphical display of measurements ( usaually aggregated in the form
of means or other statistics) of an Industrial Process through time. By carefully scrutinizing
the chart, a quality engineer can identify any potential problem with the Production process .
The idea is that when a process is in control , the variable being measured - the mean of
every four Observations, for example - should remain stable through the time. the Mean
should stay somewhere around the middle line ( the grand mean for the process ) and not
wander off by more than the fixed standard deviations of the process . The required number
standard deviations is chosen so that there will be a small probability of exceeding them
when the process is in control . Addition and subtraction of the required number of standard
deviations ( three ) give us the Upper Control Limit ( UCL ) and the Lower Control Limit
( LCL) of the control chart. When the bounds are breached , the process is deemed out of
control.
A control chart is a time plot of a statistic, such as a sample mean, range, standard
deviation , or proportion, with a centerline and upper and lower control limits. The
limits give the desired range of values for the statistic. When the statistic is outside
the bounds, or when its time plot reveals certain patterns, the process may be out of
control.
Control Understanding Six Sigma
Characteristic
definition
of control chart
No No No No
Variable Subgroup Average Median
Defect Faults of Control
Data Type? sampling? calculation
ratio parts chart
Yes Yes Yes
No Yes
u No
X
n =constant Control Xbar-R
Control n> 8 Control
chart
Yes
chart chart
Yes Yes
Yes
c No
Easy to Xbar-R
Control calculate
chart Subgroup Control
chart
Yes
No
p Xbar-R
n =constant Control Control
chart chart
Yes
pn
control This procedure is on the condition that data can be
chart collected after Gage R&R.
Control - Types of Control Charts Understanding Six Sigma
T y p e s o f C o n tr o l C h a r ts
In order to select the appropriate control chart for monitoring your process, first determine if your key
process variables (X’s) are continuous or discrete. There are specific control charts for both
continuous data and discrete data.
Control Understanding Six Sigma
Example : A consumer services organization wants to monitor consumer satisfaction for their
company. Each week, a survey from each of the company’s ten regional service centers is
evaluated and the scores are tabulated. The following is an example of how an Xbar/R
control chart could be used to monitor consumer satisfaction. In this example, higher is better:
UCLR = D 4 × R
LCLR = D 3 × R
Actual Control Limiit Calculations for the Data
X= 3.9 3 8
3.5
-3.0 S L = 3.3 2 9
2.5 1
S u b g ro u p 0 5 10 15 20 25
4
3.0 S L = 3.5 0 9
Sample Range
3
2 R = 1.9 7 5
1
-3.0 S L = 0.4 4 0 6
0
• 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.
Control ~ Attribute data Understanding Six Sigma
Example : 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
p Chart Formulas:
p = 236/600 = 0.39333, where np =
40+36+36+42+42+40 = 236
np the fraction is based on 600,
p= total possible for 6 months
n
np UCL = .39333+3(.39333*.60667)/100)? =
p= 0.539
n LCL = .39333- 3(.39333*.60667)/100)? =
UCL = p + 3
(
p × 1− p ) and LCL = p − 3
(
p × 1− p ) 0.246
n n
Control Understanding Six Sigma
Definition of Stability
A stable process will rarely produce an output that lies outside of the +/- three
sigma stable process variation region.
Control Understanding Six Sigma
H o : µι = µ
Ha: µι ≠ µ
The control limits are variation limits, not acceptance limits! Specification limits do Not appear on
SPC charts!
Control Understanding Six Sigma
Calculate the LCL & UCL for the X-R chart using Minitab. Comment on the
results. Find out whether process is in control or not.
Solution :
Step 1 ) Copy the data in Minitab
Worksheet.
Control Understanding Six Sigma
2 ) Stack the data into one column
and subscript into other.
Go to data>stack> columns
3) Select columns from S1-S5. Stack columns
values into c7 and their subscript in c6.
Control Understanding Six Sigma
9 ) Click OK.
Xbar-R Chart of C7
40
+12SL=36.07
30
Sample M ean
+3SL=24.65
__
20 X=20.84
-3SL=17.03
10
-12SL=5.61
1 2 3 4 5
Sample
40
+12SL=36.02
0 -12SL=0
-3SL=0
limits.
1 2 3 4 5
Sample
Control Understanding Six Sigma
Example :Suppose you work in a plant that manufactures picture tubes for
televisions. For each lot, you pull some of the tubes and do a visual
inspection. If a tube has scratches on the inside, you reject it. If a lot has too
many rejects, you do a 100% inspection on that lot. A P chart can define
Rejects Sampled
when you need to inspect the whole lot.
20 98
Solution: 18 104
14 97
16 99
1) Open the worksheet and enter data. 13 97
29 102
2) Choose Stat > Control Charts >Attributes Charts > 21 104
P. 14 101
6 55
3) In Variables, enter Rejects. 6
7
48
50
7 53
4) In Subgroup sizes, enter Sampled. Click OK. 9 56
5 49
8 56
9 53
9 52
10 51
9 52
10 47
Control Understanding Six Sigma
Proportion
0.20
the lot. 0.15
_
P=0.1685
0.10
0.05
0.00 LCL=0.0047
2 4 6 8 10 12 14 16 18 20
Sample
Tests performed with unequal sample sizes