# 6σ

LGE Internal Only

Understanding 6σ(Six Sigma)

LG Electronics / PC Division QA Team

Contents Ⅰ. What is 6σ activity?
1. What are the statistics? 2. Solution of the Practical Problem 3. What is the 6σ concept? 4. 6σ Application 5. 6σ Activity Process 6. Compare with other tools 7. 6σ Philosophy

6s

Ⅱ. Why should we do 6σ?
? Quality & Failure Rate

Ⅲ. How to Launch 6σ?
? Key Factor for Success of 6σ?

Ⅳ. What is Rolled Throughput Yield?

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Ⅰ. What is 6σ activity?
1. What are the statistics ?
◆ Population & Sample Measure 10 samples
(Spec. : 100± 4) LSL
Total inspection is impossible !
(Lower Spec Limit)

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USL

Population
N ＝ 1,000

Sample
Statistical variables (mean, variance) estimate population 96

Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ Ⅹ
97 98

(Upper Spec Limit)

99 100 101 102 103 104

○ You may say “ This Population is Good because all the sample’s data are located between LSL & USL. BUT, If you estimate the defect rate using statistical analysis, this population has the probability of 2.8% defects per unit. Then this is - we call - “An epidemic” quality defect level. ○ Measuring defect rate on process through an expanding statistical concept, we can use measuring process capability.

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

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T
T
USL USL USL USL

μ μ Accurate but not Precise T
USL USL

Object of 6σ is “Shift to Target” “Reducing Variation”

μ Reducing Variation

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Ⅰ. What is 6σ activity?
3. What is the 6σ concept ?
Statistical Definition of 6σ LSL
6.68%

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Target

USL

σ
-3σ +3σ
6σ Quality means that area of the estimated normal distribution is located between USL&LSL with ± 6σ. In that case area of the outlier spec. (In other words estimated defects) is just 3.4 PPM.

3.4ppm

-6σ

σ
+6σ

* σ : Standard Deviation Statistic index measures how much data apart from target value LGE Confidential

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Ⅰ. What is 6σ activity?
3. What is the 6σ concept ?

6s

σ 6 5 4

PPM 3.4 233 6,210

? 1 misspelled word in all of the books contained in a small library ? \$340 indebtedness per \$100 millions assets ? 1.8 minutes per year

? 1.5 misspelled words per page in a book

3
2

66,807
308,537

? \$6.7 millions indebtedness per \$100 millions assets ? 24 days per year

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Ⅰ. What is 6σ activity?
3. what is the 6σ concept ?
6σ as the Activity

6s

What is 6σ activity?
? In all Design, Manufacturing, and SVC processes ? Applying for 6σ statistic Tools & Processes ? To find factors causing defects ? Acting the Analysis and Improvement

Achieving 3.4 PPM
(3.4 Defects Per Million)

? Through the Defect Reduction, Increase Yield
& Total Customer Satisfaction ? Management Innovation Tool contributes to Management Output

PPM : Parts per Million

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Ⅰ. What is 6σ activity?
4. 6σ Application
6σ is a tool that applies to all business systems - Design, Manufacturing, Sales and SVC
Design Design 6σ Mfg.
Sales &SVC

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R&D 6σ

Guarantee for the Design completion in developing stage
? Selecting CTQ to meet customer needs ? Decision reasonable Tolerance ? Guarantee of the CTQ’s capability analysis

Mfg.

Quality assurance in manufacturing stage
? Improvement serious problem using S/W ? Real Time Monitoring system → CTQ Control system

Transaction 6σ

Manufacturing 6σ Sales& SVC

Maximizing for sales & SVC
? Improvement cycle time and accuracy ? Cost Improvement

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7/16

Ⅰ. What is 6σ activity?
5. 6σ Activity Process
6σ Activity Process(manufacturing & Transaction)
Identify Customer-Driven CTQ* (Critical to Quality) Characteristics Identify Key Processes that cause Defects in a CTQ Characteristics
1. Who are your customers? - Internal / External 2. What do you provide your customers? 3. What is critical to quality for your customers? 1. What are your internal processes for providing your product or service CTQ’s to your customers? 2. Where do defects occur in these processes?

6s

D

**

For Each Product or Process CTQ
Measure, Analyze, Improve, & Control

M A I

? Practical Problem ? Measurement System ? Yield Calculation

?Process Mapping ?σ Calculation

? Benchmarking ? Cause & Effect Diagram ? Pareto Chart & Stratification ? DOE ? Brainstorming ? Action Workout Techniques ? Piloting ? Procedures

6σ is a rigorous analytical process for solving problem!!!

C

? Control Mechanism ? Control Chart

* CTQ(Critical To Quality) : Your customers feel that characteristic of product, service or process is critical. ** D : Define LGE Confidential 8/16

Ⅰ. What is 6σ activity?
5. 6σ Activity Process
Example of development process applied by R&D 6σ
Kick -Off
Evaluation meeting for present condition Evaluation meeting for basic concept Evaluation meeting for planning confirm E/S drawing confirm

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Development Process

R&D 6σ

Customer Needs Survey

QFD S-1

Design Process QFD Spare FMEA FMEA S-2 CTQ Selection

Similar Z Value process of CTQ Data Analysis gathering

Z Value optimize, Design improve

Meeting for CTQ Check

E/S Development Quality drawing E/S making meeting confirm

Income P/L Parts Making

P/L P.P Quality Income P.P Quality Meeting parts Making meeting

CTQ decision

CTQ Data for new parts gathering

Activity for process improvement

CTQ for new parts Confirm

Z Value of CTQ confirm

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9/16

Ⅰ. What is 6σ activity?
6. Compare with other tools
By Improvement Process

6s

Measure Others
- Symptoms - Frequency

Analysis

Improvement

Control
- Controled by control chart - Process 4M control

- Present con- - Improved dition Analysis by expert’s Idea ? Focusing experience/ technology

- Discrete Data - Difficult to apply practical problem because of complexity

- Define/ Measurement - Variance of CTQ

- Analysis for - Optimizing - Controled statistics condition by by PTS * - Effect analysis statistical (CTQ, caused factors analysis Benefits)

- Discrete+Continuous

data
- Easy to apply because of supporting statistical software.

* PTS : Project Tracking System LGE Confidential

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Ⅰ. What is 6σ activity?
6. Compare with other tools 100ppm / 6σ 6σ
? Control process variation ? Improvement Tool ? Prevention Control vital few factors

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100ppm
? Detecting process defects ? Managing Tool ? Product managing compare with spec.

100ppm / 6σ Application → Selecting Line → Do process FMEA
- Selecting Cost issue process view of customer

→ Conform CTQ process → Sorting the process
- Just need control process - Important control process - Law application process - Variation improvement

? Judging each person’s Know-How
? Manual Data gathering & analysis

? Judging the statistic Data
? Simple & Effective analysis using the S/W

→ 100ppm / 6σ application according to sorting process

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11/16

Ⅰ. What is 6σ activity?
7. 6σ Philosophy

6s

◆ We don?t know what we don?t know. ◆ If we can?t express what we know in the form of numbers, we really don?t know much about it. ◆ If we don?t know much about it, we can?t control it. ◆ If we can?t control it, we are at the mercy of chance.

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12/16

Ⅰ. What is 6σ activity?
7. 6σ Philosophy

6s

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

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13/16

Ⅱ. Why should we do 6σ?
? Quality & Failure Rate

6s

“Generally controlled F-Cost has small portion considering of Hidden Loss”
Inspection SVC Reject Scrap Rework Traditional F-Cost ( Easy Definition)

Design Change Long cycle time Over Rework Office Loss

Loss Opp. Sales Delivery Delay

(Difficult to measure)

Brand Image Down Over Storage

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Ⅲ. How to Launch 6σ?
? Key Factor for Success of 6σ
System requirement
■ Need Top Down Drive
Need Top management’s strong will for 6σ. ● Top management’s strong and periodical announcement about 6σ policy.

6s
Methodology
■ Start at Customer’s voice.

CTQs from Customer’s voice, Improve the item which has big impact first!

■ All employees must participate...
Not only manufacturing part, but also non-manufacturing part should join the program ● Focus on Customer’s requirements.

■ Need Training Program for All employees
Complete understanding for 6σprogram. ● Hard training for all employees. ● Need resource investment resolutely.

■ 6σ as Pan-Company’s common standard.
Common language .(CTQ, σ, Cp,Z ....) ● Avoid personal translation about 6σ. ● All of Goal and target are represented as σscale. ● Basic process for all of projects.

■ Construct Infra
Need successful case study project. ● Resource reformation for organization and system. ● Reasonable appraisal and reward system.

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Ⅳ. What is Rolled Throughput Yield?

6s

◆ Rolled throughput yield is probability ratio to accept for all processes.
Input Process 1 : 99% Accept ratio Process2 : 92% Process3 : 93%
Final Inspection : 97%

Object
RTY Control

Productivity elevation through quality improvement Defect of all processes, Equipment Model Change Loss

Apply

Tool
Process defect ratio Control

1person 1Project, Team activity

Method

Loss by Process Final un-control Defect Ratio Good RTY* 0.99 X 0.92 X 0.97 X 0.97 = 85.7% =
* RTY : Rolled Throughput Yield LGE Confidential

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