Six Sigma

what does it mean? 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 toward 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. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts. According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to 6 projects per year. General Electric, one of the most successful companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of companies around the world have discovered the far reaching benefits of Six Sigma. Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants all over the world have developed proprietary methodologies for implementing Six Sigma quality, based on the similar change management philosophies and applications of tools.

it is widely used in many sectors of industry. including statistical methods. A six sigma process is one in which 99. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).[3] It uses a set of quality management methods. and creates a special infrastructure of people within the organization ("Black Belts". specifically terms associated with statistical modeling of manufacturing processes. .[1][2] As of 2010.4 defects per million).) who are experts in these methods. etc. and this goal became a byword for the management and engineering practices used to achieve it.99966% of the products manufactured are statistically expected to be free of defects (3. USA in 1986. The maturity of a manufacturing process can be described by a sigma rating indicating its yield. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.Six Sigma is a business management strategy originally developed by Motorola. or the percentage of defect-free products it creates. "Green Belts". Motorola set a goal of "six sigma" for all of its manufacturing operations. The term Six Sigma originated from terminology associated with manufacturing. although its use is not without controversy.

this industry sector includes the following subsectors ± y y y Automobiles .Manufacturers and distributors of new and replacement parts for motorcycles and automobiles. The No.00025´ which is undesirable.11 in the world having a turnover of over Indian Rupees 22 Billion with 8 manufacturing units and 67 branches and 2000 dealers with a workforce of 12000. Tires . Statistical tests proved the finish did not get deteriorated after change in sequence. After pin buffing.Manufacturers. It was hypothesized that if pin grinding is done after MIP coating.71% defectives to 0. CASE STUDY y y A Six Sigma project was initiated to improve first pass yield of Crank shaft by 60% (to reduce defectives from 1.1 tire manufacturing company in India & ranked No. distributors and retreaders of automobile. Auto Parts . the pin buffing operation can be eliminated if no other problems get created.68% defectives). And so as part of productivity Improvement project. Further process analysis with statistical techniques showed that the size of the pin was observed as more than 0. sport utility vehicles (SUVs) and light trucks. . The buffing was done to remove extra MIP coating. Detailed process study indicated issues with grinding and pin buffing steps. Use of lean management techniques helped achieve this goal in less than 3 months. including cars. it was decided to reduce the set up change time by 50%.Makers of motorcycles and passenger vehicles. A control plan ensured that the improved process provided higher yield with no secondary effects. The radial size change over time was a concern for the production plan commitment & total original Equipment Efficiency. truck and motorcycle tires. carburettors and batteries.TATA MOTORS Overview As per the industry classification benchmark. The constantly growing market needs to be met with increased production. such as engines. Hypothesis tests were done with changed sequence of operations. the size reduces below 0.00025³before buffing.

The development of the individual will benefit both the individual and the organisation. Personnel cost planning 13. Skills management 5. previous industry. The re-verification tests done by project managers were a second round of tests after an approval by the regular training team. past experience in years. Human Resources Development is the structure that allows for individual development. 3. A Six Sigma project on reducing the learning curve for new hires helped boosting the overall process level performance. potentially satisfying the organisation¶s goals. office tenure. Compensation in wage or salary 8.This project was able to bring down the errors in payroll processing at various stages. Meanwhile attrition was found to have relation with incentive. Analysis showed that attrition is not related to education levels. Induction. and marital status. . performance level. source of recruitment.COM Overview-Human Resource Management is a field that relates to management of people. Travel management (sometimes assigned to accounting rather than HRM 10.NAUKRI. Orientation and Onboarding 4. This led to policy changes and enhancement in retention levels. and age. candidate being local or otherwise. In a company. Employee benefits administration 12. Performance appraisal 14. A Six Sigma project was taken up for attrition reduction. 2. Reducing the Learning curve is extremely important for meeting client set goals. gender. Workforce planning 2. Human Resources Development is a combination of Training and Education that ensures the continual improvement and growth of both the individual and the organisation.It broadly contains 1. Labor relations Human Resources Development (HRD) is a framework for the expansion of human capital within an organisation. Time management 9. associates were meeting client set goal for Cures/hr after 240 hours of on the job training. 4. Reducing revenue leakage in payroll processing . Human Resources Development is the medium that drives the process between training and learning. Payroll (sometimes assigned to accounting rather than HRM) 11. Training and development 6. Recruitment 3. A large software company found that the percentage of employees who passing the reverification tests was as low as 39%. CASE STUDY 1. Personnel administration 7. An improvement project brought this up to 90%. This improved efficiency of new hires significantly.

ESSAR MINERALS Overview As per the industry classification benchmark. Optimizing the shape of the crystal (diamond) in order to make it reflect light with fire and sparkle.Companies engaged in the exploration for and production of platinum. topazes.Companies engaged in the exploration for or mining of coal. Designing effective VOC capturing systems and underlying processes to effectively meet the VOC. 2. Improving & optimizing the diamond cutting & polishing processes in line with customer needs 4. Diamonds & Gemstones . General Mining . These gemstones are prized for their beauty and perfection and these are the attributes that are of primary value to their consumers. sapphires. silver and other precious metals not defined elsewhere Applications in precious metals industry Gems is a vast industry and there is always an ever increasing demand worldwide for the best quality gems like diamonds. .Companies engaged in the exploration for and production of diamonds and other gemstones. Some of the Six Sigma applications in this Industry are: 1. ruby and emerald. Improving & optimizing the Gems Extraction processes 3.Companies engaged in the exploration. this industry sector includes the following subsectors ± y y y y y Coal . All these are amongst the precious gemstones that are the cynosure in the eyes of potential buyers or customers.Prospectors for and extractors or refiners of gold-bearing ores. Gold Mining . Lean Six Sigma finds applications in Gems industry by helping in improving these and other attributes that are of value to the customer. extraction or refining of minerals not defined elsewhere within the Mining sector. Platinum & Precious Metals .

Through brainstorming.Slow response time in existing emergency control system actuation Process changes were made at several places and trials were conducted to find robust solutions. Statistical analysis and FMEA resulted in the following critical factors. This was an annualized loss of 10.Failure of FGD dampers. it was found that several factors could be the cause including the following X1 . Control plans were made to sustain the solutions. Green Petroleum Coke is thermally upgraded to remove associated moisture and Volatile Combustible Matter (VCM) to improve critical physical properties like.Electric hoist failure X2 .Sudden input of high air load X5 . it was found that pressurization of kiln resulted in shut down. Electrical conductivity.Hydraulic system failure X3 . The project led to significant business benefits and just one closure in the next year of operations. In a leading calciner plant. six times in one year. Open and Close mismatch X7 . .Case Study Petroleum coke calcination is a high temperature pyrolysis of Green Petroleum Coke. In this process.Failure of bag house bypass damper opening in emergencies (Restrictions in flue gas path) X4 . Real density and oxidation properties. X1 .000 USD.Slow response time in existing emergency control system actuation.Synchronization fault X2 .Failure of bag house bypass damper opening in emergencies X8 .Synchronization fault X4 .Failure of FGD dampers. Open and Close mismatch (Draft imbalance) X3 .Main ID fan in operation while bypass damper is open X6 .

It has benefited with billions of dollars of benefits since then. Among Indian companies. American Express began with Six Sigma in 1998. IDBI. increased revenue and enhanced customer satisfaction. timeliness and completeness of customer communication. HDFC Bank and ICICI Bank. Improving accuracy. Reducing the errors in money transfer 4. Benchmark Six Sigma has had participation from good number of financial sector participants in recent training programs. 5. Reducing Bank Statements Processing & Delivery time. Bank of America started with Six Sigma in 2001 and has announced huge savings through increased savings. 3. Citigroup and JPMorgan Chase & Co. Improving the Customer Information gathering processes. Reducing the time to open an account 2. 2. JPMorgan Chase & Co is the second largest bank in the US. are few examples of initial Six Sigma success in banks. Developing new products (timeliness. Suntrust Bank. Some example Six Sigma project titles are mentioned below.SHANGHAI BANK Overview As per the industry classification benchmark. loans and money transmissions. Improving Productivity of loan processing agents Account Opening 1. Reducing the cycle time to Process a Loan Application (both Mortgage & Personal loans). Improving Market Share of existing banking products. With Six Sigma. business potential) 6. 7. . Few of them are ABN AMRO. 2. Improving the Branch Banking Processes y Lean Six Sigma success being shared by a Hongkong and Shanghai Banking Corp professional. Reducing the Credit Card Delivery time. Reducing errors in account opening process. Reducing rework in processing customer applications Other Projects in Retail Banking 1. Improving the Credit Evaluation Process 4. Loan Department 1. 3. this industry sector includes the following subsectors ± y Banks . revenue increase and enhanced customer satisfaction. 3.Banks providing a broad range of financial services. including retail banking. it has generated wonderful results through expense reduction.

A leading bank found that the reconciliation process had several issues. Alternative solutions were identified and the best one chosen after few hypothesis tests. this process yield moved further to 94%. 2. Value add/ Non Value Add (NVA) analysis showed that more than 60% of the processing time was avoidable NVA. In a banking data capturing process. Data collection led to the following being recorded as the more frequent ones o The reconciliations were not completed on time. A detailed process study led to identification of validated root causes. Within two months the data capture process reached a yield of 85%.Case Study 1. A Six Sigma project was initiated. By putting in tighter controls. Mistake proofing and decision tree techniques were introduced to reach the goal of 100% reconciliation on time. it was found that the process yield (first time right %) was only 65%. . o Processors lacked proper understanding of the process Several process changes were initiated. o Process improvements were not communicated to the client.

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