9002 Aveniqa4 =: uonIpy sayajsman AUC!able of (ey Can > > > > What a Honda! Six Sigma - An Introduction How Google Makes Money EDC Event Schedule sWhat a Honda! Inthe fast-paced automotive \yorld, not only auto brand names have a place in corporate history but also their founders. One of thems the famous Honda Company. But we know litte, if anything, about the background or history of Honda. It has been a top-three seller here for many years yet most who drive cars bearing the name have no idea of the social and business adversi- ties overcome by its originator, Soichiro Honda. . Honda's father was a village blacksmith to whom the citizens of his home town of Konyo looked to when repairs were heeded. Honda took after his father at an early age and became mechanically adroit enough to be able to enter into the then- rudimentary automobile business.tt was here where young Honda got exposure to automo- bile, And he decided that he ‘would become one day owner of hot just the car but the factory which produces it. But it was not his destiny, and he seriously believed it. He was only 16 but he was confident enough to relocate on his own to Tokyo, some 70 miles distant and start his own shop that repaired and maintained vehicles. stil, this did not satisfy him.He wanted to have more. But he did not havea penny in his pocket, At this time Toyota was already an established name in Japan. Hence Soichiro decided to approach Toyota to get his dream fulfilled, It is said that Toyotas founder was so impressed by Honda that he decided to help him financially but only if he had acquired enough technical skills. Honda, who disliked school since his childhood, had a difficult task ahead of him, He had to get an admission into a university and learn metallurgy. He went to a professor at Shizuoka University and convinced him, Such strong was his will and desire to achieve his goal that despite of no schoo! ing and constant rebukes of class- mates, he managed to finish his, study. With a meager budget and great difficulties he managed to set up piston ring factory which became so that it was prime target for American bombers during World War Il and the plant was totally destroyed, The resilient Honda was not among the people who would quit. Despite loan running several times overhead he just did not let his dreams go disappear. He sold his idea of piston ring to Toyota firm for over a million dollars to pay his debt. From that money he established a small company that repaired and refurbished gasoline engines of all sizes and makes. It is said that Honda's son would complain that his friends travel in car while he has to travel in bicycle. This used to hurtthe pride of Soichiro Honda. And who have believed that this wounded lion would lead to invention of motor bike, a new revolution in world of automobile, The story goes as this, that Honda adjusted an engine to his sons bike. After many failures finally his son could drive the hybrid machine. Suddenly it struck to Honda to commercialize his new invention. But he needed money with already a huge loan over his head. And here comes the brave part of Honda, he mailed to cover 20000 cycle shop owner about his invention and asked for their support. And hence came the Honda Motors into the picture. Soon after he teamed up with business partner Takeo Fujisawa and the Honda Motor Company quickly became the largest producer of motorcycles in the would. Its products won so many motorcycle championships worldwide with factory machines that it would be impossible to list them here. It evolved into the current auto manufacturing orga- nization that has more factories around the globe than in Japan itself.It became the first Japanese manufacturer to build a plant in this country and produced ultra: high-tech motors for world cham- pionship Grand Prix Formula One cars and for Championship Auto Racing Teams (CART) front- runners It's a world leader in the production of gasoline- powered implements such as lawn mowers, electric generators and almost anything else that requires a small, gasoline motor. Both he and Fujisawa retired to live the good life of successful industrialists. Soichiro Honda died ten years ago and since then the company that bears his name has only gotten bigger and its products have gotten better. Quoted by Honda - Success represents the 1% of your work which results from the 99% that is called failureSix Sigma An Introduction Six Sigma is a rigorous and disci- plined methodology that uses data and statistical analysis to measure and improve a company's operational perfor- mance by identifying and elimi- nating "defects" in manufactur- ing and —_service-elated processes. The heart of the Six Sigma approach is the ability to express a business issue in statis- tical terms, It is about under- standing fundamentals of the processes. It is considered to be the most challenging and the most effective tool. Companies have used this as a corporate Vision, as a tool for improvement, as a benchmark, as a philosophy, as a culture or as a profit-making methodology as appropriate for them. Sigma gives a quantitative mea- surement of the amount of defect likely to occur. Six Sigma pertains to a defect level of 3.4 defects per million opportunities, the desired level of competence, and hence the name. The Six Sigma approach to the quality ensures that the defects are eliminated progressively by identifying the root causes and eliminating the source of varia- tion. As the defects are elimi nated, the yield improves, work in progress comes down, customer satisfaction improves and the profitability of the company goes up. Scope of Six Sigma ‘An organization may be into product manufacturing or a service industry Six Sigma can be implemented in a wide variety of business environments right from strategic planning, to operations to customer service. It helps the organization to position itself for a greater customer satisfaction, profitability and competitiveness. Manufacturing includes designing and producing tangible products. Services mean any part of a company not directly involved in manu- facturing, That can mean sales, finance, marketing, purchase, customer support, logistics, HR, etc. ‘Methodologies There are different methodologies of Six Sigma to suit different situations. The one, which is the most suitable to the area of the project, is followed. For example, + DFS (Design for Six Sigma) is applied at a very early stage of the design of a product or a service. It helps the organization in designing a product or a service taking Into consideration the customer requirements and ease of manufacturability and assem- bly. : DMAIC (Define, Measure, Analyze, Improve and Control) is more commonly applied to manufacturing-related critical issues. + TQS (Transactional Quality for Six Sigma) is applied to transactional type of processes like after sales service, invoicing, etc. Most companies begin implementing Six Sigma using the DMAIC methodology, and later add DFSS & TOSS methodologies when the organizational culture and experience level permits. ‘Atleast 25 % of the fortune 200 companies are said to have a serious six sigma program which include GE, Motorola, Kodak, ABB, Texas Instruments and the likes.Ahorse jumps over a tower and lands on a man,who disappears = what isthe situation? ‘Asa man jumps out of a window, he hears the telephone ring and regrets having jumped - what is the situation? See last page for answer How Google Care LoMnOLA 3 When Larry page and Sergey Brin first developed their search engine, the plan was to make money by licensing it. But that soon seemed like a slow ad expensive proposition. So, in the first quarter of 2000, Google introduced its first advertising program called Adwords, which allowed advertisers to place their ads alongside search results. Except that these weren't called advertisements, but “sponsored links" and appeared separately con the right side of the search page, demarcated by a line. Initially advertisers paid Google based on the number of time their ads showed up alongside the search results (called cost per impression). But in the first quar- ter of 2002 it started charging advertisers per click (the adver- tiser paid only if someone clicked on the ad). In the second quarter of 2005, Google launched ‘Adsense, which extended Google and their advertiser's reach to other (but specified) internet sites that used Google search. Here's how it works:Say, you area marriage counseling website, and one of your visitors runs a search (using Google on your webpage) for a divorce lawyer. The law firms whose ads show up as sponsored links will pay Google, which in turn will some revenue with the website. For nine months ended September 30, 2005, Google pulled in $4.16 billion in advertising revenue, of which $1.88 billion came from "Google network" websites. So, primarily Google's money making trick fs still the same: translate search results into ads, be it on its own sites or some affiliates. In the short term, Google needn't worry about search slowing down, but ever- tually the number of people searching for stuff on the intemet will hit a ceiling—at least, the numbers will slow. Google, then, will need to make money doing other things. The bet on Wall Street is that by then, Google would have more than figured ‘out what things. Google at a glance: From virtue ally nothing, the startup’s young founders and now co-presidents, Larry Page and Sergey Brin, have created a company that will pull in about $6 Billion in revenues and $2 Billion profits for 2005; Google's market value had soared from $80 Billion to $138 Billion in just the last six months. The company is already the third most valuable company in the US, and the buzz on the Wall Street is that its stock will touch $600, pushing market value to a jaw dropping $176 billion ~ taking it closer to #2 Wal-Mart. In fact, if you asked Google watch- ers what Page and Brin might want to do, they'll tell you that the 30-somethings really want to own the internet- at least, be its biggest information brokers.Announcements The forthcoming activities of EDC are: + Aworkshop on Six Sigma - to be conducted by Mr. Girish Tiwari, a Black belt in six sigma, from Larsen and Toubro. Schedule: Sunday, 19th February 2006 Venue: Senate Hall The program will basically cover the following. The background of Six Sigma Different roles in Six Sigma Why Six Sigma Who are doing Six Sigma The fundamental concept of Variation Understanding Variation How to calculate sigma level of simple processes Projects selection Sample case studies from Indian Companies “INNOVISTAY 2006 Schedule: Ist and 2nd April This would include A business plan competition Acase study analysis, Workshop/Seminars Lecture Series Quizzes AAs this is the first edition of INNOVISTA, it would be an intra IITG event only! Answers to Lateral Thinking Problems: 1. It's a chess game ~ knight takes pawn 2. This is a postholocaust scenario of some kind; for what- ever reason, the man believes himself to be the last human on Earth, He doesn't want to live by hhimself,so he jumps - but when he hears the telephone ring, he realizes he's not the last human on Earth after al