Six Sigma AStrategy forAchieving World Class Perfor- mance
Group Members Anuradha Manpreet Kaur Shabnik Kaur Amrik Singh Sahil Verma
CONTENTSIntroductionUnderstanding Six SigmaBackground and growth of Six sigmaMethodologyKey role of six sigmaWhat make it differentBenefitsCertificate of Six Sigma
A highly disciplined process that helps us focus on developingand delivering near-perfect products and services. The word Six Sigma is a statistical term that measures howfar a given process deviates from perfection.The central idea behind Six Sigma is that if you can measurehow many “defects” you have in a process, you cansystematically figure out how to eliminate them and get as closeto “zero defects” as possible.
MEANINGA term used in statistics to represent standard deviation, anindicator of the degree of variation in a set of a process
DEFINATIONBusiness 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. 6
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 7
sigma Defect rate Cost of poor quality Competitive level ppm (%of sales)six 3.4 > 10% World classfive 233 10-15% World classfour 6210 15-20% Industry averagethree 66807 20-30% Industry averagetwo 308537 30-40% Non - competitiveone 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 MotorolaLate 1970s - Motorola started experimenting with problem solving through statistical analysis1987 - Motorola officially launched it’s Six Sigma programMotorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort
The Growth Of Six SIGMAThe company that perfected Six SigmaJack 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 Dabbawalla’s 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 & bicyclesThe silver bicycles ofthe Mumbai dabbawallas The crate of tiffin boxes
INDIAN COMPANIES APPLYING 6 SIGMAHINDUSTAN TIMES WHIRLPOOLTATA STEEL LGTELCO ASIAN PAINTSTCS VIP INDUSTRIESRELIANCE MUMBAI DABBAWALATVS SUZUKIPIDILITE INDUSTRIESICICI BANK LTDWIPROBHARTI
Six Sigma Project Methodology Define Measure Analyze Improve ControlIdentify, Collect data Analyze data, Improveme Establish evaluate and on size of the establish and nt strategy standards to selected confirm the “ Develop maintain select problem, vital few “ ideas to process; projects for identify key determinants remove root Design the improveme customer of the causes controls, nt requirements, performance. Design and implement Determine carry out and monitor. key product Validate experiments EvaluateSet goals and process hypothesis , financial characteristic. Optimize impact of theForm the process. project teams.
DMADValso known as DFSS ("Design For Six Sigma")
Define Phase: design goals that areconsistent with customer demands and the enterprise strategy. Measure Phase: Identify andmeasure CTQs (characteristics that are critical to quality), product capabilities, production process capability, and risks.
Analyze Phase: Analyze, develop and design alternatives, create a high- level design and evaluate design capability to select the best design. Design Phase: Design the details, optimize the design, and plan fordesign 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 BeltMaster Black Belts, act as in-housecoaches on Six Sigma. They devote100% of their time to Six Sigma. Theyguide Black Belts and Green Belts.Apart from statistical tasks, theirtime is spent on ensuring consistentapplication of Six Sigma acrossvarious 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 BeltsBlack Belts operate under MasterBlack Belts to apply Six Sigmamethodology to specific projects.They devote 100% of their time to SixSigma. They primarily focus on SixSigma project execution, whereasChampions and Master Black Beltsfocus on identifyingprojects/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 SigmaFinancial - Bank of America, GE Capital, Electronics - Allied Signal, Samsung, SonyChemicals - DuPont, Dow ChemicalsManufacturing - GE Plastics, Johnson and Johnson,Motorola, Nokia, Microsoft, Ford.Airline - Singapore, Lufthansa, BombardierAnd hundreds of others in Americas, Europe, Sub Continent 30
Six Sigma Results Company Annual Savings General Electric $2.0+ billion JP Morgan Chase *$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. 31
What Makes Six Sigma Different?VersatileBreakthrough improvementsFinancial results focusProcess focusStructured & disciplined problem solvingmethodology using scientific tools andtechniques.Customer centeredInvolvement of leadership is mandatory.Training is mandatory 32
Benefits of Six SigmaGenerates sustained successSets performance goal for everyoneEnhances value for customers;Accelerates rate of improvementExecutes strategic change 33
Six Sigma CertificationSix 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)