1st Answer

Six sigma: Six-Sigma refers to a disciplined methodology in order to improve the

processes of the organization, on the basis of gathering and thorough analysis of
data. It focuses on helping organisations to manufacture products and services
faster, better and cheaper. This is accomplished by enhanced the ability of
processes to fulfil the demands of customer. Six-Sigma identifies and eliminates
expenses adding zero value to customers. Six-Sigma provides cost-cuts yet
retaining or improving value to the customers compared to other cost cutting
programmes which are simple. The term ‘Six Sigma’ is based on a statistical
foundation. The focus is to reduce variability in order to achieve the goal. It is
possible to trace back the features of Six-Sigma to the earlier TQM thinking and,
while Six-Sigma hasn’t influenced the development of the excellence models, there
is greater research carried out about integrating this into business excellence with
the help of the value Six Sigma brings into the system.

Benefits of six sigma

● Lean Six Sigma is influenced by the customer and thus focuses to achieve
maximum satisfaction to the customer and ensure that there are least defects.
It targets customer delight and new innovative methods to exceed the
expectations of customer.

● Implementation of Six Sigma methodology causes increase in profit and

decrease in costs. Thus; the accomplishments in improvements are directly
related to financial results.

● Six Sigma is successfully implemented in category of every business involving

return on sales, return on investment, and growth in employment and stock
value growth.

● Six Sigma targets variation in processes and aims to improve the processes
instead of final outcome.

● SixSigma refers to a potential methodology as compared to other programs of

quality as it focuses on preventing defects rather than fixing it.

● It is thoughtful to the entire processes of business and training is integral to

the management system where the top-down approach makes sure that every
good thing is capitalised and every bad thing is easily removed.

Improving supply chain performance with six sigma

As mentioned in the question, many Indian organizations use Six Sigma
methodology as a tool to improve their performance throughout the supply chain and
the reasons are as follow:

Order fulfilment: With the help of six sigma technologies, organizations are able to
recognize the possible problems present in the process such as out-dated planning
processes and execution systems which are inefficient and can ensure maximum
order fulfilment.

Reduced errors: When there is high error rate in any supply chains, Six Sigma
should be implemented. One such technique is Poka-Yoke technique. Poka-yoke
means “mistake-proofing”. In the literal sense, it means to “avoid inadvertent errors
(Poka)”. Ideally, Poka-yokes make sure that proper conditions exist before actually
executing a process step, preventing defects from occurring in the first place Poka-
yoke enables people and processes to work right the first time. Poka-yoke refers to
techniques making it impossible to make mistakes. These techniques can drive
defects out of products and processes and substantially enhance quality and
reliability.

Increase Supply Chain Flexibility – The performance of supply chain requires a

quick response to rapid changes in supply and demand through the ups and downs
of business cycles, as well as in the times of crisis. Organizations with the most
agile supply chains are those that are customized to the needs of the customer.
Establishing critical to quality (CTQ) customer requirements in the define Phase of
Six Sigma helps organizations build focus on customer and thus flexibility into their
supply chains.

Waste reduction: With the help of Six sigma technology, companies will be able to
reduce waste which is a serious concern for any manufacturing organization. Lean
helps supply chains function in a more efficient way through targeting and eliminating
non-value added processing.

Increased Revenue – Organizations that use Lean Six Sigma to make their supply
chains operate more efficiently are able to provide a consistent service level to their
customers. Dependable service leads to satisfied customers, which gives
organizations more pricing power and higher revenues. Organizations applying Lean
Six Sigma principles to their supply chains can create a competitive advantage,
increase revenue and enhance the morale of employees.

Six Sigma is organised as part of a far-reaching corporate culture change program

which is focused on fulfilment of customer and quality as key differentiators.

Example- Samsung Electronics Co. (SEC) was established in 1969. Today,

Samsung is famous for its home appliances, mobile, office networks and core
business components. SEC has used different quality tools and approaches, but Six
Sigma was added in order to improve its approach and its competitive position in
world market.

The Six Sigma process started in late 1999; SEC began to pursue a goal of
developing its internal resources and project designs. In early 2000, SEC started
training its management, champions and other employees who are responsible for
planning and deployment. Within three years, approximately, one-third of its
employees received formal training. In the year 2000, manufacturing began to use
Six Sigma processes of improvement and then expanded its scope to involve
“Design for Six Sigma” in designing new products. Next, Six Sigma was applied to
business and processes of internal support where consumer needs and interactions
have become extremely critical. These processes involve activities pertaining to
transaction such as an Invoice completion, designing procedures to improve cycle
time and improving processes in human resources, accounting, business planning,
sales, call centres and customer service (all business processes are candidates for
Six Sigma improvement). In 2000 and 2001, SEC completed 3,290 Six Sigma
projects, which contributed to a 50% (an average) reduction in defects.
2nd Answer

Process Maps: Process mapping refers to a workflow diagram explaining a process

or series of parallel processes. As part of the monitoring process, it is a good
practice to develop a new process map indicating the changes made as a result of
the ideas implemented. Having a sequence of process maps allows others to see
how the team progressed through the implementation of its strategy. A new process
map is a graphic record that verifies the completed action and the reduced,
eliminated or changed activities which are involved.

Process mapping refers to the basic activity defining how the organisations deliver
their products and services to customers. It is necessary that the processes are
identified and the accountability is established to make sure implementation of
rigorous methods and procedures. This in turn brings customer satisfaction, as well
as competitive edge for the organisations. Process maps make use of various
symbols. These symbols are ovals, rectangles, diamonds, and so on. Each symbol
has a specific meaning. The technique of distributed process mapping is more
beneficial, as it enables to complete the mapping phase quickly, with the most
accurate results. It makes sure total staff buy-in and ownership of the final result.
Process owners manage a process within an organisation. The Black Belts are the
experts in Six Sigma techniques and procedures. Process owners are the experts in
products and services.

Process mapping is used by the Six Sigma, black belt, or green belt. It helps in
two important aspects of the Six Sigma method. They are:
1. It helps in the first stage of the process where, a genuine analysis of how things
are done currently is developed. This is very important in order to create an objective
case for improvement in process.
2. It helps in the stage of improvement. This stage is important to prototype,
experiment, communicate, and ultimately explain how the improvements in process
affect the new methods adopted in order to do things.

As a part of Six Sigma initiative, while attempting to enhance processes in an

organisation, the organization should have a methodology in order to map processes
as well. The methodology used should get three critical success factors right, these
factors are:
1. The processes should be captured within a given time that is, the timeframe must
be reasonable for the project. Sometimes, the improvement initiative does not
succeed or may become redundant. This is because, by the time the problem has
been analysed completely, the organisations lose interest in implementing a solution.
2. The process must be captured perfectly. An imperfect process map is worthless
and can cause damage to the organisation.
3. The process must be owned by the people who do them. This means, any
documentation such as process maps that serve to explain or support in the effective
implementation of the process, must be owned by the people, who perform the
process. During the process mapping phase of the project, disastrous situations may
arise due to the incomplete involvement of the team members. It is difficult to recover
from such situations.
A wise approach while working in a team is to maintain a low profile of the position of
the individual in the structure or hierarchy of the organisation. The reason is that, the
person who is most familiar with the concepts of a process and has a lot of expertise
in processes could be in a lower position in the organisation structure. Sufficient
freedom must be given to such persons to voice their opinion. Though this sounds
simple, it is very important in the success of process mapping.

There are four major steps in process mapping. They are:

1. Process identification: Acquiring a complete knowledge of all the steps in a
process.
2. Information gathering: Identifying the objectives, risks, and key controls in a
process.
3. Interviewing and mapping: Designing the actual maps through analysing the
individual’s point of view in the process.
4. Analysis: Analysing the process using the tools and approaches to make it run
more effectively and efficiently.

Example
In the year 2000-01, Tata Motors adopted classical Balanced Scorecard (BSC) tool
based on the Dr Kaplan and Dr Norton’s theory. The success of BSC was mainly on
the basis of the well-established EPM measures. Tata Motors has library of more
than 500 measures because of the process mapping. Now, each and every process
owner takes care that related process measures appear in the BSCs of the
concerned officers. BSC gets reviewed each month and automatically all
measures of process get reviewed each month across the organisation.
Process mapping brought lot of clarity in the organisation and also established roles
and responsibilities of the people involved with it. The ownership put at the top level,
mostly General Managers and above, not only brought seriousness but also brought
end-to-end clarity in the processes. Most of the executives are part of some process
(either owner or user) and experience the processes through their interactions. But
they never looked at any process in totality, e.g. Vendor Management or Market
Development. They witnessed only a certain part of the process where they are
involved. With the mapped processes, they started to understand and appreciate the
organisational scope and where they fit in. This is how, process mapping helped
Tata motors and enhanced levels of efficiency at the organization. Basically, it
helped to understand the necessary characteristics of a process, which allows you to
generate more helpful data that can be used in problem-solving. Process maps let
you strategically ask important questions that help you improve any process.
3rd Answer

(3a)
As mentioned in the question, Indian railways is having tough time for last few years
where number of accidents are increasing and safety is top most concern for the
travellers. There is heavy traffic on the main railway routes and high population of
our country make it very tough for the railway to manage. In this situation, six sigma
train is a good idea to go ahead with.

Roadmap for Indian railways to make all trains as six sigma trains
Indian railways are not good in performance and there is plenty of scope for
improvement. In this point of time, any quality methodology can make a big
difference in this industry. The variety of perceptions of rail service quality means a
problem in the actual evaluation of the provided service. Since quality is closely
related to meeting customer expectations, it is necessary to define key processes
and identify the decisive quality characteristics that passengers require from
transport services. Establishing acceptable boundaries of individual aspects of
quality based on customer voice recognition is the basis for continuous
improvement.

Six sigma in railways can be applied in following areas:

• Insufficient capacity of railway infrastructure
• Lack of information and provision of relevant data for passengers
• Train delays
• Planned closure activity
• Negative impact on the environment
• Insufficient reliability of the rail sector

The applied methodology will serve the needs of the infrastructure manager to
achieve stable processes and, in conjunction with the management of railway
undertakings, to achieve satisfaction with the provided transport services for the end
customer, who is a passenger in rail passenger transport. To achieve the desired
results, it builds on the assumption of possible improvements in rail transport
processes and allows customers to translate expectations into measurable and
comparable indicators. Depending on the nature of the process and the parameters
monitored, it allows the selection of appropriate qualitative tools to evaluate process
capability in order to understand in detail and ensure their gradual improvement.

Six Sigma can be implemented in railways while making sure that successful results
are achievable is extremely beneficial. The only thing that makes the methodology
even more impressive is that it is in alignment with the demand strategy of the
railway industry. It looks to stimulate growth volume, operational and governance
efficiency, improved accountability, enhanced level of safety and reduced delays of
travel using the most effective problem-solving and constant improvement tools and
strategies. Using the defined process, Six Sigma must be implemented in Indian
railways in order to make it better, safe, secured and efficient as well. Because Six
Sigma primarily emphasizes on quality, making improvements and minimization of
errors and defects, Indian railways can definitely be improved.
3b) Lean techniques for optimizing flow

5 S Technique: The Japanese developed the initial 5Ss where each S stands for a
Japanese word. The 5Ss are as follows:

● Sort/segregate – Keep what is needed and remove everything else from the
work area; when in doubt, throw it out. Identify non-value items and remove
them. Getting rid of these items ensures availability of space and usually
improves the work flow.

● Simplify/straighten – Arrange and use analysis tools in order to improve the

flow of work and reduce wasted motion. Consider long-run and short-run
ergonomic issues. Label and display for easy use only what’s required in the
immediate work area.

● Shine/sweep – Clean daily; eliminate all sorts of dirt, contamination, and

clutter from the work area.

● Standardise – Remove variations from the process through developing

standard operating procedures and checklists; develop good standards.
Standardise equipment and tooling so that time for cross-training and cost are
reduced. Training and retraining the work team in order to eliminate
deviations.

● Sustain/self-discipline – It is important to regularly recognise the efforts and

motivate the workforce in order to sustain progress. Use visuals wherever
possible to make sure that easy communication and implementation is in
practice.

There are various advantages of using 5 S Technique in railways and many

locomotive sheds have been taking benefit of this technology and made the work
place more efficient, strengthened the commitment of staff towards their job and
improved traceability of material. The process of decision-making usually comes
from a dialogue on standardisation, which builds understanding among employees of
how they should do the work. For example, Guntakal’s railway manager office has
just received the 5S certification awarded from the Quality Circle Forum of India. As
a result, any file or record in the DRM’s office can now be fetched in 30 seconds.
House-keeping has tremendously improved not only for filing but also in other areas
like toilets, parking, gardens, notice boards, homes and hospital. Visual Standards in
different areas have been innovated by Team Guntakal to make sure that
“everything has a place and everything is in its place”.

Kaizen: Kaizen is a Japanese term which means "change for the better" or
"continuous improvement." It is a Japanese business philosophy with respect to the
processes that constantly improve operations and involve all employees. Indian
railways have implemented kaizen approach to bring a significant turnaround in the
functioning of railways. Railways have adopted a strategy to improve five core areas:
Customer experience, new sources of revenue, cost optimisation, investment in
infrastructure, and structural reforms. Starting with easy bookings and cancelling
tickets, these measures have caused making train travel an extremely less stressful
exercise. In keeping with the aspirations of the upwardly mobile generation of tech-
savvy youngsters, an SMS is automatically sent to the mobile of the passenger
informing him or her of any updates with respect to the train schedule or status of the
booking. Also, over 400 stations will now be provided with Wi-fi by end of this year.