SIX SIGMA

A STRATEG Y FOR ACHIEVIN G WORLD CLASS PERFORMANCE

CONTENTS
Introduction Understanding Six Sigma Background and growth of Six sigma Methodology Key role of six sigma What make it different Benefits Certificate of Six Sigma Conclusion

A highly disciplined process that helps us focus on developing and delivering near-perfect products and services.  The word Six Sigma is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible.

MEANING
A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process

DEFINATION
Business Definition A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business. Technical Definition A statistical term signifying 3.4 defects per million opportunities.
5

Understanding Six Sigma

 Process Control  Plan Do Check Act;  Common and Special Causes;  Improvement can be done project by project.  Statistical tools  Hawthorne Plant Experiences
6

Understanding Six Sigma

         Degree of variation; Sigma is a letter in the Greek Alphabet Level of performance in terms of defects Statistical measurement of process capability Benchmark for comparison Process improvement methodology It is a Goal Strategy for change; A commitment to customers to achieve an acceptable level of performance

ORIGIN OF SIX SIGMA

 Motorola company that invented Six Sigma. The term Six Sigma was coined by Bill Smith, an engineer with Motorola Late 1970s - Motorola started experimenting with problem solving through statistical analysis 1987 - Motorola officially launched its Six Sigma program Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort

The Growth Of Six SIGMA

The company that perfected Six Sigma Jack Welch launched Six Sigma at GE in Jan,1996  At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone.

Six Sigma methodology

DMADV

DMAIC

11

Lean Six Sigma Methodology

Six Sigma Project Methodology

Define Measure Analyze Improve Control

Collect data Analyze data, Improveme Establish Identify, establish and nt strategy standards to evaluate and on size of the selected confirm the Develop maintain select problem, vital few ideas to process; projects for identify key determinants remove root Design the customer improveme of the causes controls, requirements, performance. Design and implement nt

Set goals Form teams.

Determine key product and process characteristic.

Validate hypothesis

carry out and monitor. experiments Evaluate , financial Optimize impact of the the process. project

Key Roles for Six Sigma

 Master black Belt  Black Belts  Green Belts  Team Members Quality Fundamentals/ Kaizen Now

Who are Implementing Six Sigma

At least 25% of the fortune 200 claim to have a serious six sigma program Financial - Bank of America, GE Capital,  Electronics - Allied Signal, Samsung, Sony Chemicals - DuPont, Dow Chemicals Manufacturing - GE Plastics, Johnson and Johnson, Motorola, Nokia, Microsoft, Ford. Airline - Singapore, Lufthansa, Bombardier And hundreds of others in Americas, Europe, Sub Continent
15

Six Sigma Results

Company General Electric JP Morgan Chase Motorola Johnson & Johnson Honeywell Annual Savings $2.0+ billion *$1.5 billion (*since inception in 1998) $ 16 billion (*since inception in 1980s) $500 million $600 million

Six Sigma Savings as % of revenue vary from 1.2 to 4.5 % For $ 30 million/yr sales Savings potential $ 360,000 to $ 1.35 million. Investment: salary of in house experts, training, process redesign.
16

What Makes Six Sigma Different?

Versatile Breakthrough improvements Financial results focus Process focus Structured & disciplined problem solving methodology using scientific tools and techniques. Customer centered Involvement of leadership is mandatory. Training is mandatory
17

Benefits of Six Sigma

Generates sustained success Sets performance goal for everyone Enhances value for customers; Accelerates rate of improvement Promotes learning across boundaries Executes strategic change
18

THANK YOU
19