Driving Six Sigma in Business

C R Nagaraj
Mission :Quality
Wipro Corporation

November 2001, Bangalore

Agenda:

• Wipro corporation –an introduction

• Six Sigma at a glance at Wipro
• Relevance of Six Sigma in Wipro’s changing
environment
• Wipro’s Business vision & Quality Goal
• Leadership for Six Sigma
• Selecting projects
• Selecting Methodology
• Training Black Belts
• Driving Projects
•Six Sigma -index
 Wipro Corporation & Business units

Wipro Corporation

Consumer &Lighting Wipro Technologies Fluid Power Wipro Infotech Health Care
group

Consumer Technology Cylinders Computers Wipro GE

products solutions

Lighting Enterprise Tipping Systems Servers Wipro Biomed

solutions

E-enabling Customer
solutions Services

Global Support

Products &
Services

Communication
Services

Peripherals
Wipro – Sales & Other Income
CAGR 23%

35000
30000
25000
20000

15000
10000
5000
0
89-90 95-96 96-97 97-98 98-99 99-00 00-01
 Profit after Tax

CAGR –50% 7000

6000
5000
4000
Rs Mn 3000

2000
1000

0
1988 1994 1995 1996 1997 1998 1999 2000 2001

1 US $= Rs 47.00
Six Sigma – over the years at Wipro
.01-02 data as on October 2001
600 140
500
Projects 120
Black Belts
400 100
80
300
60
200
40
100 20

0 0
97-98 98-99 99-00 00-.01 01-.-02 97-98 98-99 99-00 00-.01 01-.02

450 5
400 4.5
350 4 Sigma
300
Savings 3.5
3
250
2.5
200
2
150
1.5
100 1
50 0.5
0 0
97-98 98-99 99-00 00-.01 01-.02 97-98 98-99 99-00 00-.01 01-.02
Relevance of Six Sigma in Wipro’s
changing environment
&
Wipro’s Quality Goal
 It Began With The Change in Environment

Ø Globalization at the market place

Ø Customer focus becomes key to survival

Ø The quality bar gets significantly raised

Ø Wipro had to be a world class company to compete

successfully

Ø Top Management commitment was absolute. The Chairman

stated that like Integrity, Quality is not negotiable
 Search for Benchmark for World Class

Ø Have our products and services meet global benchmarks

Ø Robust processes within the organization
Ø Consistently meet and exceed customer expectations
Ø Achieve continuous improvement in all that we do
Ø Make Quality a culture within

We needed a benchmark for definition of “World Class”

Six Sigma was that benchmark

 Wipro’s Five Year Vision

• People come first

• Leadership in every business we are in

Be #1 Information Technology Services provider from
India
#1 in Fluid Power and
#1 in Healthcare Systems

• Among the ten most admired Indian companies

• Ranked among the top 10 private sector companies in

market capitalization
 Setting up Mission : Quality

Five year vision

What will we need
to get there?

• Change the way we think

• Change the way we work
• Change the way we serve

To Facilitate long term sustainable change , we set up Mission:Quality

in April 1996
 Wipro’s Quality Goal

Ø Be a Six Sigma Corporation in identified Critical Business

Processes and in identified Wipro Branded Products and
Services by December 2002

Ø Achieve a minimum of 10% of PBT from Six Sigma in

every Business Unit
Ø Make Six Sigma “the way we work” by December 2002

Ø Reach PCMM Level-4 in Wipro Technologies by October-

2001 and Level -5 by December 2002
To us Six Sigma is …………..

A Metric

6σ A Goal

A Benchmark

A Locomotive
Leadership for Six Sigma
Leadership for Six Sigma

Ø The Six Sigma journey is led

from the top
Ø Our top management drive
Six Sigma through their
business
Ø Quality is No. 1 objective for
all employees
Ø All management reviews
begin with a review on
Quality
Six Sigma ladder of Resources

• Master Black Belt

• Divisional Master Black Belt

• Black Belts

• Certified Green Belts

• Green Belts

• Team Members
Teams- the new order

Champion

More than
5000
800 Teams employees
in Action involved
Team members

Black Belt Green Belt

Project Selection
Project Selection

Business Vision/
Objectives
“Y”

Critical Business
Processes
“y”
Projects
“x”
 Why focus on Critical Business Processes ?

Critical Business Process provide a vital key to the Business

achieving its Vision and Goals . Normally they are areas of:

Maximum Customer Impact evident from Surveys

Key to profitability of the Business
High growth or high revenue earners
High internal Customer Dissatisfaction evident from EPS
High cost of Poor Quality- Productivity improvement, low
efficiency, high cycle times, high defect rates etc.
Important Industry Benchmark
11
1. Start with the Vision of the Business (2 year time
frame)
2. Identify the Key Drivers/Indicators for the Vision
3. From the Drivers identify the processes associated
with each Business Driver
4. Among the processes identified find out which are the
KEY ones
5. Among the key processes identify areas of
dissatisfaction
6. Select projects after completing the effectiveness
Matrix

1111
Step-1 will indicate the overall Business Plan in terms of
Revenue and profitability

Step-2: Given Step-1 some of the Key Business Drivers

would be as follows:

• Market share to increase by X %

• Quality to improve by Y%
• HR utilization to increase by z%

These drivers are quantified parameters which have

direct impact on the vision of the Business
11
Step-3

In order to arrive at the Critical Business Processes

we have processes functioning in the Business like:

• Collection process
• Order to Remittance
• Inventory Control
• Productivity improvement
• New Product introduction
• Induction
• Customer complaints handling

Each of these may involve many sub processes 11

 Identifying Critical Business processes

We can use the following matrix diagram

vision
V-1 V-2 V-3 V-4 V-5
Processes

9 4 5 4 3 4
Vision rating

3 P-1
1 P-2
P-3
P-4

11 15
Step-5

From the previous step we identify CBP’s

Under each CBP identify Sub processes in pain areas

Example: CBP: Productivity improvement

Processes:
1. Manpower utilization
2. Equipment effectiveness
3. Waste Reduction
11
 Step-6

Project CBP Customer sat Index Fin benefit index Effort

Defect Free AD’s L M L L

Installation failure
H H M M

DFM-4
H H H H

Manpower
Utilization
H L H H

Select projects with high Customer impact and 26

11
high Financial benefit
D ivision Key Critical Sub Process Project
B u s iness B u s iness Theme
Driver Process
F luid P o w e r Inventory M a terial M a terial Lead ti m e
R e d u c t ion Procurem e n t Procurem e n t reduction for
M a terial
Procurem e n t
L ighting O p tim ising M a n u facturing M a n u facturing Reduce Shell
M a terial Operations in Operations in Wastage in
Conversion GLS GLS G L S L ine
E fficiency
Custom e r Increase C losure of C losure of I m p r o v e c a ll
Services Custom e r calls calls on phone c losure by
Satisfaction c losing 10 %
calls on phone
C & SI Improvement S a les S a les C a ll S a les Kit
in Sales & Management
B r a n d R e c a ll
Enterprise M inim u m 2 Market Proposal Proposal
S o lutions contracts of > Developm e n t M a k ing M a k ing
1 M n $ in each
d o m a in
Selecting Methodology
Wipro’s approach to Six Sigma

Six Sigma

Breakthrough improvement

Defect Reduction Cycle time Reduction

Transactional Non -Transactional CFPM

 Transactional Technical

SSSS DMAIC DFM DMADV

The Six Sigma Methodology for Defect Reduction
Design for Manufacturability
• Identify the physical & functional
requirements of customer
• Determine the characteristics
of product critical to each
• Determine for each characteristic
whether controlled by part,
process or both
• Determine maximum range
• Determine your process variation
• If Cp< 2 redesign Product ;
Process as required
Six steps to Six Sigma
Identify the work you do
- your product
• Identify who your work is for
- your customer
• Identify what you need to do
your work and from whom
- your suppliers
• Map your present process
• Mistake proof the process and
eliminate delays
• Measure ,Analyze and control
the improved process
 CFPM-For Cycle Time Reduction

Total Cycle Time is the actual time that passes from the
time a customer expresses a need until the customer’s
need is satisfied.

Product/
Customer Service
Request for
Customer
 CFPM-Terms

Business
Performance
Could Be
rces
Should Be
Additional Resou rce
With
With Present Resources
As Is

Time
12-18 Months
Training Black Belts
Black belt certification

Identify Black Belt Facilitation Skills TTT

Mandatory
Qualifies as BB Co-Teach
Courses:
• DMAIC
• Basic Stats
• Adv Stats
Facilitate Certified as
• Teaming
Three Black belt
• SPC
projects
Driving Projects
 Drawing Goal Line

A Typical Goaline

X-axis : Time scale

Y-axis: Sigma / DPMO

Project in
Red line: Goal line RED

Sigma / DPMO
Green Line: Actuals
Project in
Green

Time

37
Fixing the Team Goal will involve the following:

• What is the current Sigma(baseline)

• How complex is your process

• Are you prepared to spend on resources

• What is the capability of the team.

• Are you sure that the time frame is right

38
 What to see in a Goal line

Typically one should see a

Steep fall as shown A-B A

This is due to step-5, a drastic

Improvement is recorded. Goal Line

Magnitude of improvement C
5-8 times B

Some teams repeat step-5 D

The magnitude in the second
Phase is less than 2 * over
The achieved level.

Phase B-C ; Stability phase

39
Phase C-D: Improvement due to
step-6
Driving Businesses to Six Sigma
Our Strategy:

Six Sigma

4.8 Sigma

Baseline
Business level Six Sigma indicators

SEE-INDEX: Six Sigma Engagement & Effectiveness Index

• Engagement Factors

• Effectiveness Factors
 SEE-Index Wipro Corporation Oct 2001

100

O
75 S
J A
50 Ju
M
Effectiveness

A
25

0 25 50 75 100 43
Engagement
 Engagement
Engagement
WIPRO CORPORATION
Six Sigma Engagement and Effectiveness sheet
Month :October
Engagement Index
S No Attribute of Measurement Data Index Score WeightageWeighted
score
1 Training engagement

2 Project engagement

3 Certification of Black Belts

4 Review engagement

5 Project initiation

6 Project Closure

44
Six Sigma engagement Index
 Effectiveness:
Effectiveness

S No Attribute data Index Score WeightageWeighted

index
1 Customer factor

2 Savings factor

3 Sigma factor

4 Institutionalisation

45
Effectiveness Index
 Six Sigma at Wipro

WINNERS CIRCLE
Customers

Stakeholders

Employees

Suppliers
 Last word

THANK YOU
FOR
YOUR TIME