Six Sigma is an organizations philosophy towards Quality which CONTINUOUSLY forces it to improve its process performance.... Improvement in the average6 8 10 12 14 16 18 20 22 24 26 Mints.
...And reduce the variability in process performance. Improvement in the average Reduction in the variance6 8 10 12 14 16 18 20 22 24 26 Mints.
And then again improve the average & reduce variability Improvement in the average6 8 10 12 14 16 18 20 22 24 26 Mints.
Six Sigma is a stretch goal of achieving 3.4 defects permillion opportunities SIGMA DEFECT RATE COST OF POOR COMPETITIVE QUALITY LEVEL Level (PPM) ( % OF SALES ) 6 3.4 <1% WORLD CLASS 5 233 1 % - 5% 4 6,210 5 % - 10 % 3 66,807 10 % - 15 % INDUSTRY AVERAGE 2 308,537 15 % - 25 % 1 690,000 > 25 % NON- COMPETITIVE
Six Sigma focuses on measuring &controlling the variation• What gets Measured gets Focused • What gets Focused gets Achieved • What gets Achieved gets Recognized • What gets Recognized gets Institutionalized
So what do all the Gurus in their thick books have to say about Six Sigma ? • Sigma is a statistical term, which measures how far a process varies from perfection. • Quantitatively it is a stretch goal of achieving less than 3.4 defects per million opportunities in servicing the customer • Culturally, it is about learning to build processes that deliver flawless quality of outputThe resolve to attain continuously to achieve world class performance greater heights...
Raghunath Medge, President Unique Indian organization Mumbai Tiffinmens practicing Six SigmaAssociation claims “ If – Harvard University Studywe make 10 mistakes a month, no customerwould use our service”
Six Sigma – a way of life for people who may not have even heard of any management jargon• Around 5000 Tiffinwallas • Methodologies deliver 175,000 lunches everyday and take the empty • Work distribution tiffin back. They make One • Work simplification Mistake in 2 months. • Time management• This is 1 mistake or defect per • Color coding 17.5 million opportunity which • Measurement system is around 8.9 sigma • Values• Most of the Tiffinwalas are illiterates • Trust • Ownership• The one who picks the Tiffin • Relationship building from home is not the one who delivers at the office • Customer orientation
Perfection in product / service delivery has been the cornerstone of Six Sigma success stories GE Motorola • Market leadership • Premium Quality image – Growth engine – 10 X improvement/ every 2 years – > $ 5 Billion savings – $ 14 Billion savings Hewlett Packard American Express • Cost competitiveness • Customer satisfaction management – Waste elimination – Customer listening – $ 1.5 Billion savings – Evaluate performance Different companies have initiated Six Sigma for differentbusiness objectives and have also simultaneously achieved significant business results
Journey towards Six Sigma• Accelerate the rate of improvement – 10 times every 2 years• Compels “out of the box” thinking• Builds robustness in daily management based on data rather than opinion• Starts a set of chain reactions in strategic, tactical and operational improvements• Sets performance goals for everyone• Generates sustained success