Presentation by Prof.K.Prabhakar [email_address] Six sigma Way

What is so much new about 6σ Is it a new concept ? Is it a new statistical idea? Is it a new fad? Is it old wine in new bottle or new wine in old bottle? Why we need this new concept when we have ISO 9001 and TQM, TCM etc.

Is it a new concept ?

Is it a new statistical idea?

Is it a new fad?

Is it old wine in new bottle or new wine in old bottle?

Why we need this new concept when we have ISO 9001 and TQM, TCM etc.

What is so much new about 6σ Is it a new concept ? No Is it a new statistical idea? No Is it a new fad? No Is it old wine in new bottle or new wine in old bottle? No Why we need this new concept when we have ISO 9001 and TQM, TCM etc ? They never produced desired effect on profitability

Is it a new concept ? No

Is it a new statistical idea? No

Is it a new fad? No

Is it old wine in new bottle or new wine in old bottle? No

Why we need this new concept when we have ISO 9001 and TQM, TCM etc ? They never produced desired effect on profitability

Dimensions of Six Sigma Variation and Customer Requirement Traditionally we describe the products and services in terms of averages. Average time to deliver the product. However we miss two things, the customer , and his or her requirements It has been found that 40% time of employees is wasted in explaining why the product is not up to specification. Domino Pizza’s Policy : If the customer is not provided with delivery with in the specified time, the Pizza is given free to the customer.

Variation and Customer Requirement

Traditionally we describe the products and services in terms of averages.

Average time to deliver the product. However we miss two things, the customer , and his or her requirements

It has been found that 40% time of employees is wasted in explaining why the product is not up to specification.

Domino Pizza’s Policy : If the customer is not provided with delivery with in the specified time, the Pizza is given free to the customer.

2ed Dimension of Six Sigma Translation of variation in to measurements Defects per million Opportunities How many defects occur compared to the number of opportunities there are in the product or service for things to go wrong. Any thing that does not meet customer requirement is a defect rude clerk A bad paint job is a defect You have to measure customer requirements and calculate the number of defects in the process and outputs

Translation of variation in to measurements

Defects per million Opportunities

How many defects occur compared to the number of opportunities there are in the product or service for things to go wrong.

Any thing that does not meet customer requirement is a defect

rude clerk

A bad paint job is a defect

You have to measure customer requirements and calculate the number of defects in the process and outputs

3ed Dimension of Six Sigma Tracking the X’s and Y’s It is similar to MUCEE( Mutually exclusive and collectively exhaustive) at Mc Kinsey, that is you have to define any issue clearly with all boundaries. “ X” is the cause of a problem or one of the many variables affecting a business process. “ Y” is the outcome of the process for example for a a bakery the quality of flour used and the temperature of oven are the key “X’s and the loaf and the satisfaction of hungry customer is the key “Y’s.

Tracking the X’s and Y’s

It is similar to MUCEE( Mutually exclusive and collectively exhaustive) at Mc Kinsey, that is you have to define any issue clearly with all boundaries.

“ X” is the cause of a problem or one of the many variables affecting a business process.

“ Y” is the outcome of the process for example for a a bakery the quality of flour used and the temperature of oven are the key “X’s and the loaf and the satisfaction of hungry customer is the key “Y’s.

Some X’s and Y’s Actions towards goals Quality of workdone Cycle time Staffing level Incorrect information Strategic Goals achieved Level of customer satisfaction on-time delivery Time to answer phone Defects produced

Actions towards goals

Quality of workdone

Cycle time

Staffing level

Incorrect information

Strategic Goals achieved

Level of customer satisfaction

on-time delivery

Time to answer phone

Defects produced

We will take a short excursion to Statistics Normal Distribution (you may have to go the following websites to have some understanding of Normal distribution). We need to understand Normal distribution basics. http://www.statsoft.com/textbook/stathome.html http://huizen.dds.nl/~berrie/normal.html

Normal Distribution (you may have to go the following websites to have some understanding of Normal distribution).

We need to understand Normal distribution basics.

http://www.statsoft.com/textbook/stathome.html

http://huizen.dds.nl/~berrie/normal.html

Many Managers do not have an understanding of the key X and Y They use their past experience They believe in luck Six Sigma Managers constantly expect problems and respond to changes.

They use their past experience

They believe in luck

Six Sigma Managers constantly expect problems and respond to changes.

Six components of Six Sigma Genuine focus on the customer Data and fact driven management Process focus, Management and improvement Proactive management Boundaryless organization Drive for perfection, tolerate failure.

Genuine focus on the customer

Data and fact driven management

Process focus, Management and improvement

Proactive management

Boundaryless organization

Drive for perfection, tolerate failure.

1)Genuine Focus on the Customer Few companies have understood the the customer processes and needs We call it VOICE OF THE CUSTOMER AIR TRAVEL, WASHING MACHINES BY LG, SCORPIO CARS, SHANTHA BIOTECH, SONY WALKMAN (All organizations are from India)

Few companies have understood the the customer processes and needs

We call it VOICE OF THE CUSTOMER

AIR TRAVEL, WASHING MACHINES BY LG, SCORPIO CARS, SHANTHA BIOTECH, SONY WALKMAN (All organizations are from India)

2)Data and fact driven Management Most of the decisions are based on intuition or gutlevel reactions due to information over load. How are we really doing? You have to have a thorough understanding of every dimension of the issue. How does that compare to where we want to be? What data do I need to collect to answer these questions?

Most of the decisions are based on intuition or gutlevel reactions due to information over load.

How are we really doing? You have to have a thorough understanding of every dimension of the issue.

How does that compare to where we want to be?

What data do I need to collect to answer these questions?

3) Process Focus, Management, Improvement Process and Process and Process Real world things happen in a process not as an isolated events. Delivering real value to the customer is the key to performance. We need to find the core processes on which the customer satisfaction is build

Process and Process and Process

Real world things happen in a process not as an isolated events.

Delivering real value to the customer is the key to performance. We need to find the core processes on which the customer satisfaction is build

4)Proactive Management It is being creative about what is likely to happen in future.

It is being creative about what is likely to happen in future.

Boundary less Collaboration Coined by General Electric it refers to the job of smashing the barriers that block the flow of ideas ad action up and down and across the organization. Billions of dollars are wasted by bickering bureaucracies inside organizations fighting one another instead of working for one common cause. People have to learn about their role in big picture.

Coined by General Electric it refers to the job of smashing the barriers that block the flow of ideas ad action up and down and across the organization.

Billions of dollars are wasted by bickering bureaucracies inside organizations fighting one another instead of working for one common cause. People have to learn about their role in big picture.

Drive for perfection and Tolerate Failure Continual Vs continuous Spending time and money on collecting data may appear risky at times. However, it will be most useful way to do things. Occasional set backs are build in to the system. We have to be prepared for it.

Continual Vs continuous

Spending time and money on collecting data may appear risky at times. However, it will be most useful way to do things.

Occasional set backs are build in to the system. We have to be prepared for it.

We are all doing it and learned it that way? So what is new? It is the practice of six sigma makes all the difference.

It is the practice of six sigma makes all the difference.

THREE WAYS TO 6 σ Process Improvement Process Design and Redesign Process Management

Process Improvement It refers to strategy of finding solutions to eliminate the root causes of performance problems in processes that already exist in the organization. Process Improvement efforts seek to fix problems by eliminating the causes of variation in the process while having the basic process intact. We need to find critical causes X’s and outcomes Y’s.

It refers to strategy of finding solutions to eliminate the root causes of performance problems in processes that already exist in the organization. Process Improvement efforts seek to fix problems by eliminating the causes of variation in the process while having the basic process intact. We need to find critical causes X’s and outcomes Y’s.

DMAIC Define the problem and what the customers require Measure the defects and process operation Analyze the data and discover causes of the problem Improve the process to remove causes of defects Control the process to make sure defects don't recur.

Define the problem and what the customers require

Measure the defects and process operation

Analyze the data and discover causes of the problem

Improve the process to remove causes of defects

Control the process to make sure defects don't recur.

Process Design and Redesign When business chooses to replace rather than repair, one or more core processes When a leadership or Six Sigma team discovers that simply improving an existing process does not deliver the quality when a business identifies an opportunity to offer an entirely new product or service.

When business chooses to replace rather than repair, one or more core processes

When a leadership or Six Sigma team discovers that simply improving an existing process does not deliver the quality

when a business identifies an opportunity to offer an entirely new product or service.

DMADV Define customer requirements and goals for the process/product/service Measure and match performance to customer requirements Analyze and assess processes/products/services Design and implement new processes/products/services Verify results and maintain performance

Define customer requirements and goals for the process/product/service

Measure and match performance to customer requirements

Analyze and assess processes/products/services

Design and implement new processes/products/services

Verify results and maintain performance

Process Management Process Management means that a focus on managing processes across the organization replaces managing individual functions by different and sometimes competing internal departments.

Process Management means that a focus on managing processes across the organization replaces managing individual functions by different and sometimes competing internal departments.

Key areas in Process Management Defining processes, key customer requirements and process owners Measuring performance to customer requirements and key process indicators Analyzing data to enhance measures and refine the process management mechanisms. Controlling performance through ongoing monitoring of inputs operations/outputs and responding quickly to problems It deepens the knowledge of organizations processes, people and customers.

Defining processes, key customer requirements and process owners

Measuring performance to customer requirements and key process indicators

Analyzing data to enhance measures and refine the process management mechanisms.

Controlling performance through ongoing monitoring of inputs operations/outputs and responding quickly to problems

It deepens the knowledge of organizations processes, people and customers.

Meet the players: It build a totally new Culture in the organization Leadership group Project sponsor Implementation Leader Six Sigma Coach (Master Black belt) Team Leader/Project Leader(Black belt/greenbelt) Team members Process owner

Leadership group

Project sponsor

Implementation Leader

Six Sigma Coach (Master Black belt)

Team Leader/Project Leader(Black belt/greenbelt)

Team members

Process owner

Thank you and any Questions Please send you questions to [email_address]

Please send you questions to

[email_address]