World Class Performance

With 99 % Quality
For every 300000 letters delivered 3,000 misdeliveries

With Six Sigma Quality
1 misdelivery

For every week of TV 1.68 hours of dead air 1.8 seconds of dead air broadcasting per channel Out of every 500,000 computer restarts 4100 crashes Less than 2 crashes

Source: The Six Sigma Way by Peter Pande and Others
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Sigma is a letter in the Greek Alphabet

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What Is Six Sigma?
• Process Control; • Plan, Do, Check, Act; • Common and Special Causes; • Improvement can be done project by project • Statistical tools • Hawthorne Plant Experiences • Degree of variation; • Level of performance in terms of defects; • Statistical measurement of process capability; • Benchmark for comparison;
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Six Sigma Definitions
• Business Definition
ü A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.

• Technical Definition
ü A statistical term signifying 3.4 defects per million opportunities.

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Sigma Defects Per Million Level Opportunities 1 690,000 2 3 4 5 6 308,000 66,800 6,210 230 3.4

Rate of Improvement 2 times 5 times 11 times 27 times 68 times

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Bank of America – SS Experience

Goals
# 1 in Customer Satisfaction  Worlds’ most admired company  Worlds’ largest bank

Strategy - “ Develop business process excellence by applying voice of the customer to identify and engineer critical few business processes using Six Sigma Created Quality & Productivity Division

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Bank of America – SS Experience

Results of first 2 years:  Reduced ATM withdrawal losses by 29.7 %  Reduced counterfeit losses in nationwide cash vaults by 54%  Customer delight up 20%;  Added 2.3 million customer households  1.3 million fewer customer households experienced problems  Stock value up 52%  Y 2002 – BOA named Best Bank in US & Euro money's Worlds Most Improved Bank
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High Level Business Metrics •Quote Time •Defect Rate •Waste •On Time Delivery •Inventory; •Machine Utilization •Revenue •Capital Utilization •Return on Assets •Profits

Operating Level Metrics

Strategically: Used by Leadershipas a vehicle to develop sustainable culture of Customer, Quality, Value and Continuous improvement. Operationally: By Quality Managers to reduce cycle times, costs, errors, rework, inventory, equipment downtime. Deployment across all types of processes and industries worldwide
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Six Sigma Framework Enablers
Recog nizing Peopl e Aligni ng Indivi dual & Organ izatio n Goals

Results
Establi shing Proces s manage ment System to be used Implem enting Proces s Measur es

Personally actively Involved in improvement

People

People Results
Satis facti on Invol veme nt

Com pete ncy Prod uctiv ity

Key Perf Results
Gross margins Net profit Sales Market Share
Process cycle time Process costs Defect rates Productiv Cash ity flow Mainte nance cost Return on assets

Devel oping Team skills

Rec ogni tion

Encourag ing & enabling people To participat e in Improve ment

Policy & Strategy

Identifyin g& designin g processe s to deliver strategy

Res Deli Customer Results pon very , Valu e, relia Rep bilit urc y has e sati sfac tion se Tim e to cust ome Tim rs

Recogniz ing Individual & Team effort

Leadership

Partnerships Resources

Improvin g processe s to satisfy and Generate value For customer s

e to Mar ket

Society Results

Processes

Utility consum ption Timelin ess Inventor y

Innovation and Learning
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At least 25% of the fortune 200 claim to have a serious six sigma program – 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.

Who is Implementing Six Sigma

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Six Sigma Results
Company General Electric JP Morgan Chase Annual Savings $2.0+ billion *$1.5 billion (*since inception in 1998)

Motorola $ 16 billion (*since inception in 1980s) Johnson & Johnson $500 million Honeywell $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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Six Sigma Project Methodology
Project Phases Define Define

Measure Measure

Analyze Analyze

Improve Improve
ØImprovement strategy ØDevelop ideas to remove root causes ØDesign and carry out experiments, ØOptimize the process. ØFinal solutions

Control Control
ØEstablish standards to maintain process; ØDesign the controls, implement and monitor. ØEvaluate financial impact of the project

ØCollect data ØAnalyze data, ØIdentify, on size of the establish and evaluate and selected confirm the “ select problem, vital few “ projects for Øidentify key determinants improvement customer ØSet goals of the requirements ØForm teams. performance. , ØValidate ØDetermine hypothesis key product Ø and process characteristic .

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What Makes Six Sigma Different?
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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; Creating a dedicated organisation for problem solving (85/50 Rule).

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Benefits of Six Sigma
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Generates sustained success Sets performance goal for everyone Enhances value for customers; Accelerates rate of improvement; Promotes learning across boundaries; Executes strategic change

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Total Productive Maintenance

INTRODUCTION In the highly competitive world the difference between the winner and the looser is often one hundredth of percentage. This requires perfection and zero tolerance for failure leading to Overall Performance Effectiveness better than the competition.
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TOTAL PRODUCTIVE MAINTENANCE AIMS AT:-

TO MEET
MARKET DEMANDS OPERATIONAL DEMANDS
Increase in production and reduction in quality problems. Equipment deterioration due to overload operation. Elimination of equipment which has design weak points. Upgradation of knowledge of equipment control for the operators. Improve morale of associates.

TPM BASIC POLICY AND EXAMPLE OF TARGET SETTING

Timely and effective start-up of new products. Flexible response to the demand trend. Reduction in prices. High-level quality assurance. Conservation of resources and energy.

BASIC POLICY Aiming at “Zero accidents”, ”Zero failures”, and “Zero defects” through introduction of TPM with all workers participating, which in turn contributes to the improvement of Overall equipment efficiency and reduction in costs.

OBJECTIVES
1.Reduction in equipment failure. jigs. 2.Reduction in waiting and setup time. 3.Effective use of existing equipment. 4. 5. 6. Accurate Management of equipment, tools and Promotion of resource conversation and energy saving. Education and training, cultivation of manpower.

Benefits of TPM (As seen in various TPM implementation in companies) Tangibles P - Increase in value added productivity by 1.5 - 2.0 times. - Improvement in Overall equipment by 150% to 200%. Q - Reduction in defect ratio by 25%. - Reduction in customer complaints by 25%. C - Reduction in manufacturing cost by 30%. D - Reduction in product and work-in-process by half. S - Reduction in accidents to zero. - Reduction in Pollution cases to zero. M - Improvement proposal increased from 5 to 10. inventors Intangibles - JISHU-HOZEN leads to operators maintaining own equipment leading to ownership. - Pleasant work environment. - Happy visitors to plant leads to business growth.

efficiency

STEPS FOR TPM IMPLEMENTATION
1

Top Management declaration of TPM initiative. TPM education and awareness

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3

Formation of TPM organisation and structure Setting of basic company TPM principles and targets Master plan for TPM implementation Kick-off of TPM company wide

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5

6

7

Establishing system for improving plant efficiency
Establishing upstream control management for new products and equipments

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Building quality maintenance system
Improvement of administration and commercial function

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Improvement of safety, health, environment system Complete implementation of TPM

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TPM – PROCESS MAP
Process Focusing Point Declaration by Top Management about adopting TPM as major initiative for change Top Management: ½ Day Senior Management : 1 Day Formation of TPM  Organisation Committee  Departmental Committee Selection of Manager Model Machine (MMM) Start of Jishu Hozen activity in MMM Target setting Managers/ Executives : 3 Days Control steering for coordinating company wide activity Departmental committee for coordinating with Control committee and department activity For department heads and managers to understand & work on a machine for Jishu Hozen, OEE and Kobetsu Kaizen activities Benchmarks and targets for effectiveness of TPM Making Master plan Informing the commitment of Top Management to all, including Partners and Customers to TPM Implement by horizontal deployment Company wide of various TPM activities Regular and continuous training of all people on activity plan. Review and monitoring of the activities Corrective action wherever necessary Accessing for results Responsibility Organisation Gulf Software

TPM Declaration TPM Awareness

Formal Kick off Implementation & Deployment of TPM activities all over the organisation: ­ Jishu Hozen ­ OEE / Kobetsu Kaizen ­ Planned Maintenance ­ Training & Skill development ­ Office TPM ­ Initial Project Management Complete implementation of TPM ­ Safety and Environmental Management

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