Theory of Escaping Defects

No matter how good your inspection and test procedures are, the more defects you create, the more defects escape to the customer!

Do it right the first time!!

Defects and Hidden Factory

Each defect costs: time, money & man power!

• Caused by manufacturing variation
• Increase cost
• Lost capacity / yield decrease as the scrap is removed

Sigma Level vs COPQ

Sigma Level is a statistical unit of measure that reflects Process Capability. The Sigma scale of measure is perfectly correlated to characteristics such as defects per unit, parts per million and the probability of defect or error.



Statistical Meaning

If the Sigma Level is High:

Process’ defect occurrence is reduced (see COPQ)

Quality level increases, and prevents the onset of quality issues

• methodology that is well rooted in mathematics and statistics
• reduce process output variation
• the variation of the process around the mean value decreases
• sigma value increases from zero to six

6 Sigma Characteristic

Six sigma begins with understanding the process that guarantees systematic improvement.

Most companies and managers have a very weak understanding of the relationship between their own X’s and Y’s.

Success Story

General Electric
“Six Sigma has forever changed GE. Everyone is a true believer in Six Sigma, the way this company now works.” – Jack Welch, CEO.

Motorola
“Six Sigma is really a cultural thing – a behavior.” – Alan Larson (Motorola consultant).
5X growth in sales, with profits climbing nearly 20% per year.
Cumulative savings based on Six Sigma efforts is estimated as $14 billion.
Motorola stock price gains an annual rate of 21.3%.

Six Sigma Innovation Activity

• is a company-wide management innovation activity and a growth strategy to think based on customer’s viewpoint, to remove the possibility of defects occurrence in advance, to create a new business opportunity with epochal improvement in process quality, to supply product and service satisfactory to customer and to maximize business benefits.
• is driven by close understanding of customer needs; disciplined use of facts, data, and statistical analysis; diligent attention in managing, improving, and reinventing business processes.