Six Sigma

Six Sigma is a business management strategy originally developed by Motorola, USA in 1986. As of 2010, it is widely used in many sectors of industry, although its use is not without controversy. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase). The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it. The idea of Six Sigma was actually born at Motorola in the 1970s, when senior executive Art Sundry was criticizing Motorolas bad quality. Through this criticism, the company discovered the connection between increasing quality and decreasing costs in the production process. Before, everybody thought that quality would cost extra money. In fact, it was reducing costs, as costs for repair or control sank. Then, Bill Smith first formulated the particulars of the methodology at Motorola in 1986. Like its predecessors, Six Sigma doctrine asserts that:


Continuous efforts to achieve stable and predictable process results (i.e., reduce process variation) are of vital importance to business success. Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled. Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement initiatives include:


A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project. An increased emphasis on strong and passionate management leadership and support. A special infrastructure of "Champions," "Master Black Belts," "Black Belts," "Green Belts", etc. to lead and implement the Six Sigma approach. A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.

 

In recent years, some practitioners have combined Six Sigma ideas with lean manufacturing to yield a methodology named Lean Six Sigma.

METHODS-

DMAIC The DMAIC project methodology has five phases:

  

Define the problem, the voice of the customer, and the project goals, specifically. Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

DMAIC OF VOLKSWAGEN-

1. Defining the problem It is important for suppliers to implement an effective QMS system that complies with customerspecific requirements, and does not jeopardize their relationship with clients. There are many factors as mentioned below that can affect the success of an automotive QMS implementation. These factors are more then crucial to the business environment, since failure to comply with requirements can not only result in the loss of future business, but deteriorating supplier/client relationships too.
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Lack of top management support: One of the biggest implementation pitfalls, is not having commitment and support from top management, who feel that systems (QS, TS or ISO) are a waste of time, paperwork, escalation in cost and expenditure to consultants and registrars Lack of understanding about the existing processes: Lack of understanding about how existing processes/procedures currently meet the regulatory requirements and the gaps involved in the processes Lack of clear communication: Not communicating the objectives/rationale behind the EQM efforts and how it impacts the business Failure to involve everyone in the process: Not involving all employees/teams that will be affected by the implementation Lack of follow-up /Review: Not monitoring the progress of the implementation schedule and working towards a deadline, thereby increasing the amount of time /costs Lack of validation: Failing to conduct internal audits in an atmosphere of freedom to tell the truth and with an effort to understand why the procedures may not have been implemented Premature implementation efforts: Jumping into implementation before being ready for it. Not conducting proper gap analysis/requirements analysis thereby incurring additional time/resources and missing out on key issues Fuel Technology- Technology is significant and needed to ignite the growth of auto industry. Whether its a two-wheeler or a car, technology drives the growth. The challenge of alternative fuel technology ensures a brighter vision of the auto industry in the country. Nurturing Talented Manpower- Manpower and human resources has always been a key growth driver in any industry including the automobile industry. Though India has a vast pool of talented and skilled professionals, the country needs initiatives and support to treasure these resources to excel in all arenas of the industries.Automobile industry is no exception and highly skilled manpower will further become the most reliable source of competitive advantage across the global as well as Indian automobile industry

2. MEASURES :

A process-oriented quality system A proper and coordinated control plan for the production of bulk materials. Proper and systematic analysis of the field failures. Continuous improvement in the respective field.

To focus on prevention of defects,and to reduce the present variations in the systems as well as any sort of waste in the supply chain procedure. To focus on all the requirements leading to customer satisfaction. The action processmust be preventive thereby reducing the number of defects possible.

By improving the training requirements of the employees the efficiency and the effectiveness can be increased manifolds. Wise and good communication regarding assurance of quality to suppliers and customers is very important. Improve employee quality responsibility

Increasing the competency of the employees leads to better and more tactical and realistic results. Proper awareness and training must be provided to the employees for better performance.

3. Analysis of problemIt is these four quality mechanismsAV system, information and communication system, quietness, and meeting and office requirements, and taking the advice of engineering experts, nine quality specifications were established. Then, using the eij value and the engineering experts weighted value, the authors calculated the totals for each quality specification. These totals were then ranked. Four key quality specifications ranked as number one, having a total value of 1.153. These quality specifications require the most attention. They are: soundproofing ability of the passenger compartment, increase the soundproofing of the passenger compartment, soundproofing ability of the engine compartment, noise level of the chassis assembly, and the noise level of the engine, The key elements identified in Table 3 then need to be analyze. the satisfaction quality was divided into three areas based on the

input, process, and output process (IPO). They are the design quality, manufacturing quality, and maintenance quality. Each of these qualities is subdivided into quality specifications strategy performances. Each quality has a value based on man, machine, material, and method (4M), and the environment. The design quality has a design evaluation value, manufacturing quality has a process evaluation value, and the maintenance quality has a customer complaints value. The quality specifications are multiplied by the engineering experts weight values for the IPO process.

4. Continuous Improvement
Name branded continuous improvement efforts sometimes get in the way of getting any improvement done. Continuous Improvement (CI) simply means making things better. Contrast this with Six Sigma: A business management toolset, initially implemented by Motorola, that seeks to improve the quality of process outputs to a 99.9997% efficiency level by identifying and removing the causes of defects (errors) and variation in business processes. It uses a set of quality management methods like DMAIC and DMADV, including statistical methods, and creates a special infrastructure of people within the organization Executive Leaders, Champions, Master Black Belts, Black Belts, and Green Belts who are trained experts in Six Sigma methods. Jack described VWs journey to continuous improvement to me. As we were finishing these changes, we shifted gears. We joked that the major changes were easy for someone in corporate to identify. Now came the hard part. We had to develop the ability to continuously improve our processes. We developed principles for the warehouse that included engagement and accountability, benchmarking, and rewards and recognition. It was drafted with a lot of participation from managers and backed by metrics all the way down to the individual. Then we initiated Continuous Improvement teams that took people from all parts of the warehouse, from warehouse associates through general managers, to work on a team on a specific topic looking for a specific productivity improvement in a specific period of time. We use simple teams and simple communications. You are not judged by the quality of your PowerPoint - rather by the scope and impact of your change. To use a sports clich, we'll take a bunch of bunt singles any day. Changing Boundaries Continuous Improvement and brainstorming is a lot of fun when there are no boundaries when the sky is the limit and ROIs are irrelevant. Imposing limits gets us closer to reality this is all

about process/machine modification vs. replacement. Practical ideas surfaced at VW and were shared across the enterprise.

5. ControlOrganizations and bodies that track the automotive quality space are numerous as can be seen from those listed below y y y

United States Council for Automotive Research (USCAR) - Association established by DaimlerChrysler, GM, and Ford for shared technological and environmental concerns. Corporate Average Fuel Economy (CAFE) - Government web page offers information on the standard measure of the overall fuel efficiency of an automakers products. National Institute for Automotive Service Excellence (ASE) - Nonprofit, independent organization, improving the quality of automotive service and repair through the voluntary testing and certification of automotive service professionals Institute of Electrical and Electronics Engineers Standards Association (IEEE) Develops and disseminates voluntary, consensus-based industry standards involving todays leading-edge electrotechnology. Occupational Safety and Health Administration (OSHA) - Federal agency, under the US Department of Labor, that focuses on the health and safety of the American workforce. Department of Transportations Advanced Vehicle Technologies Program Developer of technologies and programs to produce new vehicles, components, and infrastructure for medium- and heavy-duty transportation needs. National Highway Traffic Safety Administration (NHTSA) - Carries out safety programs, investigates safety defects in motor vehicles, sets and enforces fuel economy standards, helps states and local communities reduce the threat of drunk drivers, promotes the use of child safety seats and air bags. Inter-Industry Conference On Auto Collision Repair (I-Car) - Non-profit international training organization dedicated to improving the quality, safety, and efficiency of auto collision repair. National Crash Analysis Center - The FHWA/NHTSA National Crash Analysis Center is a federally funded research center concentrating on vehicle crash research, based at the George Washington University Virginia Campus. Motorist Assurance Program - Strengthening the relationship between the motorist and the automotive repair industry through education of the motorist and service provider, and through the creation of industry standards. National Automotive Technicians Education Foundation - Non-profit organization to evaluate technician training programs against standards developed by the automotive industry and recommend qualifying programs for certification and accreditation by the ASE. U.S. Department of Transportation (DOT) - Maintains and improves the US transportation system by keeping statistics, setting standards and developing federal transportation programs.

Benefits of Six Sigma

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Generates sustained success Sets performance goal for everyone Enhances value for customers; Accelerates rate of improvement Promotes learning across boundaries Executes strategic change

CRITISICM
y y y y Lack of originality Role of consultants Potential negative effects Based on arbitrary standards

BIBLIOGRAPY
 http://www.biasca.com/archivos/for_downloading/management_surveys/Mg mt_Customer_Satisfaction_Automobile_Industry.pdf