Six Sigma Way

Slide 1: Presentation by Prof.K.Prabhakar prabhakar.krishnamurthy@gmail.com

Slide 2: 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.

Slide 3: 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

Slide 4: Dimensions of Six Sigma Variation and Customer  Traditionally we describe the products  and services in terms of averages. Requirement 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.

Slide 5: 2ed Dimension of Six Sigma Any thing that does not meet  customer requirement is a Translation of variation in to  defect measurements rude clerk  Defects per million  Opportunities A bad paint job is a defect  How many defects occur You have to measure   compared to the number of customer requirements and opportunities there are in calculate the number of the product or service for defects in the process and things to go wrong. outputs

Slide 6: 3ed Dimension of Six Sigma Tracking the X’s and Y’s  “X” is the cause of a  problem or one of the many It is similar to MUCEE(  variables affecting a business process. Mutually exclusive and “Y” is the outcome of the  process for example for a collectively exhaustive) at a bakery the quality of flour Mc Kinsey, that is you have used and the temperature of oven are the key “X’s and to define any issue clearly the loaf and the satisfaction of hungry customer is the with all boundaries. key “Y’s.

Slide 7: Some X’s and Y’s Actions towards goals  Strategic Goals achieved  Quality of workdone  Level of customer  satisfaction Cycle time  on-time delivery  Staffing level  Time to answer phone  Incorrect information  Defects produced 

Slide 8: 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

Slide 9: 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.

Slide 10: 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. 

Slide 11: 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)

Slide 12: 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?

Slide 13: 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

Slide 14: 4)Proactive Management It is being creative about what is likely to  happen in future.

Slide 15: 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.

Slide 16: 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.

Slide 17: 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.

Slide 18: THREE WAYS TO 6 σ Process Process Improvement Design and Redesign Process Management

Slide 19: 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.

Slide 20: 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.

Slide 21: 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.

Slide 22: 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 

Slide 23: 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.

Slide 24: 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.

Slide 25: 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 

Slide 26: Thank you and any Questions Please send you questions to Prabhakar.krishnamurthy@gmail.com