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Six Sigma - Benefits to Organizations
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Six Sigma - Benefits to Organizations

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  • 1. Six Sigma :Benefits to Organizations Presentation by Benchmark Six Sigma
  • 2. 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)
  • 3. 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.
  • 4. Where has Six Sigma been applied? Service Design Management Purchase Administration Six Sigma Methods Production IT Quality Depart. HRM M&S
  • 5. Examples of ‘Six Sigma’ companies
  • 6. 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
  • 7. 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
  • 8. 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”*.
  • 9. 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
  • 10. 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
  • 11. Some other companies that have achieved success
  • 12. Industry Wise Success Stories Companies in almost all sectors have a Six Sigma success story