Six Sigma

A Strategy for Achieving World Class Performance

Group Members
Anuradha Manpreet Kaur Shabnik Kaur Amrik Singh Sahil Verma

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

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.
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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

sigma

Defect rate ppm

Cost of poor quality (%of sales)

Competitive level

six five four three two

3.4 233 6210 66807 308537

> 10% 10-15% 15-20% 20-30% 30-40%

World class World class Industry average Industry average Non - competitive

one

690000

< 40%

Non - competitive

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 Certified Dabbawallas of Mumbai

Existing since the 1890s. The tiffin box delivery service was started by Mahadeo Havaji Bacche. People recruited from villages who were not able to earn a good living. Engaged in transport of lunch boxes from home to office. Daily 4000-5000 dabbawallas carry 1,75,000 2,00,000 tiffin boxes everyday.

 Average Literacy- 8th grade schooling Means of Transport- Local Railways & bicycles

The silver bicycles of the Mumbai dabbawalla's

The crate of tiffin boxes

INDIAN COMPANIES APPLYING 6 SIGMA

HINDUSTAN TIMES TATA STEEL TELCO TCS RELIANCE TVS SUZUKI PIDILITE INDUSTRIES ICICI BANK LTD WIPRO BHARTI
WHIRLPOOL LG ASIAN PAINTS VIP INDUSTRIES MUMBAI DABBAWALA

Six Sigma methodology

DMAIC

DMADV

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Lean Six Sigma Methodology

DMAIC

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

DMADV
also known as DFSS ("Design For Six Sigma")

Define Phase: design goals that are consistent with customer demands and the enterprise strategy.
Measure Phase: Identify and measure CTQs (characteristics that are critical to quality), product capabilities, production process capability, and risks.

Analyze Phase: Analyze, develop and design alternatives, create a highlevel design and evaluate design capability to select the best design. Design Phase: Design the details, optimize the design, and plan for design verification. This phase may require simulations

Verify Phase: Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.

DMAIC V/S DMADV

DMAIC is used for projects aimed at improving an existing business process. DMADV is used for projects aimed at creating new product or process designs.

Key Roles for Six Sigma

Master black Belt Black Belts Green Belts Yellow belt White belt

Team members

Master Black Belt

Master Black Belts, act as in-house
coaches on Six Sigma. They devote 100% of their time to Six Sigma. They guide Black Belts and Green Belts. Apart from statistical tasks, their time is spent on ensuring consistent application of Six Sigma across various functions and departments.

Master black belt should have

Two-plus years of Black Belt experience Five-plus years of business experience Mastery of the tools of Six Sigma process improvement (DMAIC), Completion of at least five Black Belt projects with significant business results Experience in managing cross-functional projects, strong ability to lead others without direct authority Strong change management skills Experience in delivering Black Belt and Green Belt training Ten or more Black Belts or Green Belts coached to successful project completion and certification Excellent written and verbal communication and presentation skills

Black Belts
Black Belts operate under Master
Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma

Black belt should have

He should have experience of 1-2 yr and carried out 4-8 projects He must be expert in problem solving,data collection and analysis. He must be organizational savvy. He must focus on leadership and understanding of administrative system and processes.

Green Belts
Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities, operating under the guidance of Black Belts.

Green belt should have

Operates in support of or under the supervision of a Six Sigma of Black Belt. Analyses and solves quality problems. Involved in quality improvement projects. Participated in a project, but has not led a project. Has at least three years of work experience. Has ability to demonstrate their knowledge of Six Sigma tools and processes.

Who are Implementing Six Sigma

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
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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.
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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
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Benefits of Six Sigma

Generates sustained success Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement Executes strategic change

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Six Sigma Certification

Six Sigma certification given to organistion by:1. Institute of Industrial Engineer. 2. American Society for Quality. Six Sigma certification given to Individual by:1. ISO 2000(international standard organisation) 2. COPC (customer operation performance center) 3. CMMI (capability maturity model integration) 4. ISL( institution of sigma learning)

VIDEO

THANK YOU
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