UNIT 16, SIX SIGMA

Globalization and instant access to information, products and services have changed the needs and expectations of customers. The way organizations conduct their business also require a change since the old business models no longer work. We must delight our customers and relentlessly look for new ways to exceed their expectation. This is why SIX SIGMA puts emphasis on Quality must become part of our culture.

Quality Defined
As per Juran, the components are said to possess good quality, if they work well in the equipment for which they are meant. Deming defined Quality as a predictable degree of uniformity and dependability at low cost and suited to the market. Philip Crosby defined it as Conformity to requirement is concerned with how well a product conforms to design and other specification. In brief, Quality can be described as customer satisfaction aimed at meeting the stated needs, unstated needs (Implied needs), and Expectations.

THEORY OF SIX SIGMA

Six Sigma was pioneered by Bill Smith at Motorola in 1986 and was originally defined as a metric for measuring defects and improving Quality. It is a methodology to reduce defect levels below 3.4 defects per one million opportunities (DPMO). Six Sigma has now grown beyond defect control. It is a registered service mark and trade mark of Motorola, Inc. The company has reported over Us $ 17 Billion in savings after the introduction of Six Sigma.

BENEFITS OF SIX SIGMA

The word Sigma is a statistical term that measures how far a given process deviates from perfection. Most organizations before they begin their quality journey, are usually at one or two sigma levels. Two sigma signifies 3,08,537 defects per million part while world wide average is around three sigma which is 66,807 defects per million. As organizations three sigma (66,807 PPM), four sigma (6210 PPM) and five sigma(233 PPM) to reach Six Sigma (3.4 PPM), its quality cost come tumbling down Other benefits include defect free product or service, Lower warranty costs, Lower production costs and journey towards excellence.

KEY CONCEPTS OF SIX SIGMA

At its core, Six Sigma revolves around Voice of Customer Critical to Quality (CTQ) Process Capability Variation and Variance Control Stable operations

PRINCIPLES
Genuine Focus on customer Data and Fact driven Management Process focus, Management and Improvement Proactive thinking Boundary less collaboration Drive for perfection