Created By - Abhishek B. Wadkar

Roll No. - 5714
M.Com - Part II (Semester 4)
Subject – Recent Advances In Cost Auditing & Cost System
MEANING OF SIX SIGMA

• Six Sigma is a method that provides organizations tools to improve the

capability of their business processes. This increase in performance and
decrease in process variation helps lead to defect reduction and improvement
in profits, employee morale, and quality of products or services.
• "Six Sigma quality" is a term generally used to indicate a process is well
controlled.
HISTORY OF SIX SIGMA

• It was introduced by American engineer Bill Smith while working at Motorola

in 1986.
• Late 1970’s 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
efforts.
SIX SIGMA AT MOTOROLA

• Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all
Motorola business areas including:
1. Sales and Marketing
2. Product Design
3. Manufacturing
4. Customer Service
5. Transactional Processes
6. Supply Chain Management
WHO ARE IMPLEMENTING SIX SIGMA

• Financial – Bank of America, GE Capital, HDFC, HSBC, American Express.

• ITES – ICICI One Source, Accenture, Satyam PO, IBM Daksha.
• Hospitality – ITC Hotels, GRT Hotels, Apollo Hospitals.
• Manufacturing – GE Plastic, Johnson & Johnson, Motorola, Nokia, Microsoft,
Ford, Wipro, Nestle, Samsung, Samtle.
• Telecom – Bharti Cellular, Vodafone, Tata.
• IT – Infosys, TCS, Birla Soft.
APPROACHES OF SIX SIGMA

• DMAIC Approach : This is Organizational based.

• DMADV Approach: This is based on Customer needs and Satisfaction.