Clars college of Commerce SIX SIGMA

Project Made By:
Name
Raashid Khatri Hashim Khatri Rahil Parkar Zaibi Qureshi Mihir Thakkar

Roll No.
20 21 30 32 45

S.y.b.m.s- IVth Semester

Acknowledgement
We are happy and very satisfied at this moment to represent this project. This was not just due to the efforts made by us but also due to the proper guidance and advice by our professor Mr. Lakshmanan. The completion of this project would not be possible without the help and guidance given to us by Mr. Lakshmanan. We also express our hearted thanks to our college librarian for her support and co-operation. Thanks and Regards
Raashid W. Khatri Hashim S. Khatri Rahil M. Parkar Zaibi N .Qureshi Mihir P. Thakkar

Index
1. History 1.1 tested by Motorola 2. Special Roles 2.1 Champions 2.2 Master black belt 2.3 Black belt 2.4 Green belt 2.5 Yellow belt 3. What is six sigma? 4. Methodology 5. Preparation of a team 5.1 forming 5.2 storming 5.3 Norming 5.4 Performing 6. Conclusion 7. Bibliography

History of Six Sigma
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. In the early and mid-1980s with Chairman Bob Galvin at the helm, Motorola engineers decided that the traditional quality levels -- measuring defects in thousands of opportunities -- did not provide enough granularity. Instead, they wanted to measure the defects per million opportunities. Motorola developed this new standard and created the methodology and needed cultural change associated with it. Six Sigma helped Motorola realize powerful bottom-line results in their organization - in fact, they documented more than $16 Billion in savings because of their Six Sigma efforts. Since then, hundreds of companies around the world have adopted Six Sigma as a way of doing business. This is a direct result of many of America's leaders openly praising the benefits of Six Sigma. Leaders such as Larry Bossidy of Allied Signal (now Honeywell), and Jack Welch of General Electric Company.

Tested by Motorola
Motorola’s Quassar TV set plant in US sold to Japanese for the reasons of poor Productivity & Yield started doing extremely well under Japanese management! TV sets were produced with 1/20th the no. of defects that were produced

by Motorola! They did this using the same workforce, technology & design… making it clear that the problem was Motorola’s management!

How does it refine the business?
-Active Leadership: Top Management’s Involvement - Business Unit Vs Corporate wide Initiative - Customer Focused “CTQ” - Direct Link to Business Results - Mfg View of Quality Vs “Q” in All Functions - Bottom Line Improvement - Incremental Vs Breakthrough Improvements -Tells What to Do & How to Do it - Mandate Use of Statistical Techniques - Multiple Indices (Local + Global) - Effective Project Management - Special Metrics. - Special Roles (Black Belt, Green Belts, Champion) - Best People for ‘Q’ Initiatives - Inductive Training

Six Sigma: Special Roles

Champions

The champion is generally a person in a senior position like a President, Vice-President or Senior Manager or someone else who has the Six Sigma vision. They are in a position to resolve any issues that arise between the Black Belts and any other person in a higher position in the company. Champions take responsibility for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentors to Black Belts. The Champions act like buffers in any disagreements between the Black Belts and senior management. The Black Belts can then concentrate on their project area rather than be involved in disputes.

Master Black Belt

Master Black Belts are Six Sigma Quality experts that are responsible for the strategic implementations within an

organization. Master Black Belt main responsibilities include training and mentoring of Black Belts and Green Belts; helping to prioritize, select and charter high-impact projects; maintaining the integrity of the Six Sigma measurements, improvements and tollgates; and developing, maintaining and revising Six Sigma training materials. The Master Black Belt should be qualified to teach other Six Sigma facilitators the methodologies, tools, and applications in all functions and levels of the company, and should be a resource for utilizing statistical process control (typically just outside the Black Belt's knowledge base) within processes.

Black Belt
Six Sigma Black Belts are most often referred to as Change Agents, and there is no doubt that the Black Belt role is a leadership position within an organization. Black Belts are full-time Six Sigma project team leaders responsible for implementing process improvement projects within the business. Black Belts are knowledgeable and highly skilled in the use of the Six Sigma methodologies and tools, as well as facilitation and change management, and lead subject matter experts to increase customer satisfaction levels and business

productivity. They train the green belts and the yellow belts.

Green Belt
Green Belts are the “worker bees” of the Six Sigma project. They can do much of the legwork; from gathering data to executing experiments in support of the Black Belt projects. They are employees who take up Six Sigma implementation along with their other job responsibilities, operate under the

guidance of Black Belts.

Green Belts typically have two primary responsibilities: • Help ensure the success of six sigma techniques • Lead improvement projects of a smaller scale within their respective areas

Yellow Belt
A Yellow Belt typically has a basic knowledge of Six Sigma, but does not lead projects on their own, as does a Green Belt or Black Belt. Is often responsible for the development of process maps to support Six Sigma projects. A Yellow Belt participates as a core team member or subject matter expert on a project or projects. In addition, Yellow Belts may often be responsible for running smaller process

improvement projects using the PDCA (Plan, Do, Check, Act) methodology. PDCA, often referred to as the Deming Wheel, enables Yellow Belts to identify processes that could benefit from improvement. These smaller Yellow Belt projects often get escalated to the Green Belt or Black Belt level where a DMAIC methodology is used to maximize cost savings using Statistical Process Control.

Six Sigma
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six

Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects.

Related Process Models - The Six Sigma Methodology
A classic definition: "Six Sigma is a process-focused methodology designed to improve business performance through improving specific areas of a strategic business processes." Sigma is a symbol meaning how much deviation exists in a set of data - sometimes called a bell curve, or a standard normal distribution. In a standard normal distribution, 50% of the values lie above the mean (average) and 50% of the values lie below. In Statistics, we take it a step further and delineate certain data points within that timeline.

Consider that you run a pizza delivery business and you set a target of delivering pizzas within 25 minutes of receiving the order. If you achieve that 68% of the time, you are running at 1 Sigma. If you achieve it 99.9997% of the time then you are at 6 Sigma (or you are late on average only 3.4 times out of every one million orders). That is fundamentally how six sigma measures quality. It measures the Variance and does not rely on the Mean.

How to prepare a team for Six Sigma
In order implement the six sigma programme a proper team must be formed .These steps are too be followed in forming a team

Forming

At this stage, personal relations are characterized by a dependency on group leaders to provide structure. The leader’s main goal is to orientate members of the group – to the mission, vision and goals of the organization. The kind of behaviour that is commonly observed at this point is questioning. Why are we here? What we are supposed to do? How are we going to get it done? These questions are part of the group forming process. A leader should provide as much structure as possible in this stage. Team building is important here, so things such as games and clarification exercises are necessary. Don’t assume that people know each other, or are comfortable with each other.

Storming
This stage in group development is characterized by a focus on personal relationships within the group. Different people vie for positions, and there is a fair amount of: conflict and

confrontation among group members. Confrontations can be about who is responsible for what, who are going to be the ‘leaders’ of the group, what are going to be the work rules, and so forth. On a committee, differences of opinion over how things should be done, and who should be the ‘movers and shakers’ will come to play.

Norming
During this stage, the group begins to settle down. Personal relations are marked by greater cohesion. Members of the group start to feel that they belong to it, rather than merely being in it. At the Norming stage of development members begin to share ideas, feelings, give and receive feedback, and generally chat about what is going on and what they are doing.

During this period, members of the group feel good about being a part of their group. At this time, there is a brief abandonment of the task at hand (studying or working) and a period of play – enjoyment of each other, socializing, and general fun.

Performing

At this stage, group members achieve interdependence. This means that they work well together, achieving more together than they would as individuals. In a committee context, this means that people help each other with ideas and support. In the Performing stage group members are both task and maintenance (people) orientated – this means that they get things done but also make sure that individuals in the group are okay. By this point, a group has set itself clear goals (to have a good time, to run a big event, etc), and a lot is achieved.

Conclusion
Six Sigma is far more in depth than this document has illustrated. A tool if used correctly can identify

key areas of business processes that need attention to lower defect rates. One of the greatest advantages is that all the measured improvements achieved through this technique can be directly converted into financial results. In fact, more and more shareholders even require that Six Sigma method be implemented. Six sigma follows an orderly change for the attainment of the best results. For this, the top management must be patient at the time of decision-making and there should be no place for quick fix. This helps in getting the right answer and not just any answer. When applied correctly, six sigma will produce better results than most other methods through new culture. It is proven very marketable in all aspects.

Bibliography
Books

Six Sigma for the New Millennium - Kim H. Pries (23-03-09) The Six Sigma Handbook, Third Edition Thomas Pyzdek and Paul Keller (2009) The Certified Six Sigma Green Belt Handbook - Roderick A. Munro, Matthew J. Maio, Mohamed B. Nawaz, Govindarajan Ramu, and Daniel J. Zrymiak (02-Jan-08)

Websites

✔ Managementparadise.com ✔ Quickmba.com ✔ Scribd.com ✔ Wikipedia.org