Six Sigma :Benefits to Organizations
Presentation by
Benchmark Six Sigma

Six Sigma Implementation
Six Sigma has:
• Given organizations a new way of doing business
• Enabled them to have a wise application of statistical tools within a
structured methodology
• Enabled repeated application of strategy to individual projects
• Complete projects that have had a substantial impact on the ‘bottom
line’(profit) as well as the ‘top line’(revenue)

Six Sigma Implementation
Organizations use Six Sigma as a scientific and practical method
to achieve improvements in a company
Scientific:
• Structured approach. “Show me
• Assuming quantitative data. the data”
”Show me
the money” Practical:
• Emphasis on financial result.
• Start with the voice of the customer.

Where has Six Sigma been applied?
Service
Design
Management
Purchase
Administration Six Sigma
Methods Production
IT
Quality
Depart.
HRM M&S

Examples of ‘Six Sigma’ companies

Six Sigma:GE Success Story
• In 1995 GE mandated each employee to work towards achieving 6
sigma
• The average process at GE was 3 sigma in 1995
• In 1997 the average reached 3.5 sigma
• GE’s goal was to reach 6 sigma by 2001in critical processes
• From 1998 onwards GE realized benefits worth 2billion USD.
• GE was the first company to Implement Six Sigma in services and
also in offshoring.
“the most important initiative GE has ever
undertaken”. Jack Welch
Chief Executive Officer
General Electric

GE “Service company” - examples
• Approving a credit card application
• Installing a turbine
• Lending money
• Servicing an aircraft engine
• Answering a service call for an appliance
• Underwriting an insurance policy
• Developing software for a new CAT product
• Overhauling a locomotive

Six Sigma:Motorola Success Story
Following was the statement made by Robert W Galvin, Chairman of
the Executive Committee, Motorola. This statement was made after
first decade of Six Sigma Experience.
“At Motorola we use statistical methods daily throughout all of our
disciplines to synthesize an abundance of data to derive concrete
actions….
How has the use of statistical methods within Motorola Six Sigma
initiative, across disciplines, contributed to our growth? Over the
past decade we have reduced in-process defects by over 300
fold, which has resulted in cumulative manufacturing cost
savings of over 11 billion dollars”*.

Six Sigma:AIRTEL Success Story
• In 2002 Bharti group (Airtel) launched Six Sigma
• It has since than successfully applied Six Sigma in all its businesses
and has realized savings worth billions of rupees.
• Six Sigma is an Integral part of its DNA with a dedicated team at
each of its Circles.
• Airtel’s basic services businesses yielded 250% return on Investment
in the first year of implementation itself.
• There are more than 150 Black Belts working in the entire group

Six Sixma: Success Stories from diverse
Industries
Qualtec’s Services Fortune 50 Global Co. LG Electronics -England
Six Sigma deployment
created Power Steering • Order Lead Time Reduction
• Breakthrough From 55 to 41 days
CIO recognized the
Performance, • Improving Forecast accuracy
need to get real-time • Inbound lead time reduction
• Captured Cost Savings
• Customer Delight information from his from 8 days to 6days
global team
Projects – Savings from
on the rationale and Interest Charges
•Insurance
status for all his Stock amount
•Lending
•Securities significant projects and Freight Charges
Savings
Benefits - over 500 projects Benefits -
We have saved over in 27 countries. Increased Brand
$20 million dollars in
Benefits - Image
savings in two years
CIO - We have saved
of using Six Sigma Enhanced Customer
over
Qualtec's services!" Satisfaction
$500 million dollars
- Max Gordon,
from 500 Six Sigma Savings USD 850K
Navistar
Projects 10

Some other companies that have achieved success

Industry Wise Success Stories
Companies in almost all sectors have a Six Sigma success story