Introduction Of Six Sigma for IT & BPO by Vision Raval

Introduction of Six sigma
For International Domain of IT andBPOCompanies
www.visionhancer.com
- Vision Raval

Index
What is Six sigma
Why you need Six sigma
Where you can improve by using Six sigma.
Which results you can expect by implementing six sigma
How to impliment Six sigma
Process Flow of Implimentation

What is Six sigma
Six Sigma is a process based methodology for pursuing continuous improvement. Companies use this methodology to reduce defects in their processes.
Six Sigma today is used across a wide range of industries like banking, business process outsourcing, telecommunications, insurance, construction, healthcare, and software. Many global companies like General Electric, Motorola, Allied Signal, Honeywell, Honda, Sony, Cannon, Polaroid, Texas Instruments and Whirlpool are using the Six Sigma methodology.
Companies measure their performance by the sigma level of their business processes. Initially, companies accepted three or four performance levels as the standard. These processes created 6210 to 66,800 defects /per million opportunities. The sigma level of 3.4 defects per million opportunities is a reaction to increasing customer expectation and the fact that business processes and products are becoming increasingly complex and competitive.
The primary aim of Six Sigma is to focus on the customer first and then use facts and data based on customer requirements to get better results or improve the process. Thorough understanding of the process and the product drives the business and fulfils customers’ expectations.

What is Six sigma
For example, a pizza home delivery company goes with a thumb rule of delivering a pizza within 30 minutes. In case the pizza delivery boy fails to deliver it within 30 minutes, the customer will get a 50% discount on his next purchase. (And it is considered as a defect on the part of the company.) If only 65% of the pizzas are delivered on time, the process will be at ‘level 2’ sigma. If 92% pizzas are delivered on time, the company’s performance is at ‘level 3’ sigma. If the company delivers 99.4% of the pizzas on time, the company’s performance is at ‘level 4’ sigma.
If the pizza company wants to be at ‘level 6’ sigma, it has to deliver pizzas within a level of 99.9997% accuracy.
Sigma, σ, is the Greek letter used to measure the variability in the process. Six Sigma stands for Six Standard Deviations from mean. Standard Deviation is a statistical method to define how much variation exists in a set of data or a process. That means a process efficiency of 99.9997%.

Why you need Six sigma?
Define right strategy which suits to your company skill set.
Analyze Manpower psychology to judge right method of Implementation.
Measure your strength and capability to minimize errors and maximize quality productivity
Improve and Enhance work flow, and process matrix to ensure highest sigma controls.
Control entire management flow by department specific reporting system.

In an organization seeking consistency in their processes; Six Sigma plays a very important role in the promotion and establishment of such processes. Six Sigma works towards improvement of existing processes.
It is difficult to briefly describe the ways in which Six Sigma may be interconnected with other initiatives (or vice versa). But some understanding can be gained from the following:
The Six Sigma toolkit comprises of many techniques that are already applicable to some software and are directly being used by the software industry. For instance, "Voice of the Client" and "Quality Function Deployment" is useful for developing customer requirements. There are numerous charting/calculation techniques that can be used to scrutinize cost, schedule, and quality data as a project proceeds. As far as the technical development is concerned, quantitative methods are used for risk analysis and concept/design selection. The efficacy of "Six Sigma” therefore comes from deliberately and consciously deploying the tools in such a way that the customer is fully satisfied.

CMM‚ CMMISM, PSPSM/TSPSM are some of the improvement approaches that either complement Six Sigma or mutually support it. Technologies like the Goal-Question-Metric (GQM), Initiating-Diagnosing-Establishing-Acting-Leveraging (IDEALSM), and Practical Software Measurement (PSM) shows some adaptability and coherence with Six-Sigma.
The GQ(I)M technology merges well with the Define-Measure steps of Six Sigma. Many common features are shared by IDEAL and Six Sigma. IDEALSM mainly focuses on change management and organizational issues whereas Six Sigma deals with more of tactical, data-driven analysis and decision making. PSM provides a software-tailored approach to measurement that may well serve the Six-Sigma improvement framework.

Where you can improve by using Six sigma.
Productivity
Efficiency
Quality
Accuracy
Execution
Branding
Client base

Which results you can expect by implementing six sigma
More focused and target oriented manpower investment
Improved capability and skill matrix according to market trend
Create accurate reporting cycle for end to end process control
Create value for clients in terms of reporting and quality execution
Manage right resources at right places according to their skill set
Organize team with proper supervisory and focused operation

How to Impliment Six sigma
In today’s modern day scenario, it is very important to track down the simple metrics, manipulate and improve numbers. The concept of Six Sigma and other methodologies not only measures site activity but also strive to understand the factors affecting the metrics. Six Sigma is referred as a business-driven, multi-faceted approach, which focuses primarily on process improvement, reduced costs, and increased profits.
Common Six Sigma metrics include defect rate (parts per million or ppm), sigma level, processcapability indices, defects per unit, and yield. Many Six Sigma metrics can be mathematically related to the others.
Defect RateThe complimentary measurement of yields is defects. If the yield is 90 percent, naturally there must be 10 percent defects.
Sigma LevelFrom a quality perspective, Six Sigma is defined as 3.4 defects per million opportunities. This is called a sigma level of quality.
Process Capability IndicesAnother set of measures exist to quantify the capability of a process or characteristics to meet its specifications. These indices directly compare the voice of the process to the voice of the customer.
Defects Per UnitDPU provides a measurement of the average number of defects on a single unit.
YieldTraditionally, yield is the proportion of correct items you get out of a process compared to the number of raw items you put into it.
With the fundamental conviction and drive to improve customer satisfaction by reducing defects, the foremost aim of Six Sigma is to result in defect-free processes and products (3.4 or fewer defective parts per million (ppm). The process to achieve this goal consists of various steps in the Six Sigma methodology, including "Define - Measure - Analyze - Improve - Control".

Process Flow of Six Sigma Implimentation
Top management plays a very important role in the entire Six Sigma deployment processes. Therefore it is very important that in the initial phase of implementation of the Six-Sigma program, it should be fully accepted by the employees and they should show full commitment towards the steps of improvement. In the initial phase, development of a thorough infrastructure would help the functioning of the deployment process, and manage the implementation process. This phase should be developed as follows:
Establish Leadership Commitment and Involvement
The Six Sigma implementation processes must involve the top-level management. Total commitment and involvement must be there throughout the implementation process. Senior management must assign a Management Champion to lead the Six Sigma implementation and make him the authoritative head for the entire Six Sigma project in the organization.
Form a Core Team
The Top management is responsible for forming a Six Sigma Core Team. The Management Champion heads the Core Team.
The main role of the Core Team is to develop and manage the Six Sigma implementation and to assure the readiness of the organization for the implementation.

Team up with outside Quality Facilitators
Assistance can be taken from experienced quality facilitators for the implementation process, especially for SMEs (small and medium enterprises)
The facilitators coaches the Core team in deploying Six Sigma implementation and in providing necessary training for all Six Sigma project participants.
Provide Six Sigma Deployment Training
To understand the benefits and general approach of the Six Sigma implementation, the top management and the core team should attend an overview on Six Sigma.
The Core Team should attend the training on Six Sigma development, deployment, and management.
Schedule Periodic Top Management Reviews
Reviews must be scheduled periodically in the initial stages of the Six Sigma program including the defining, developing, and implementing.
The top management must be informed about the activities involved in the Six Sigma implementation.

In this phase, the gaps are identified between current process performance and the business goals. The gaps are further transformed into improvement projects, and an integrated system is established to support the implementation.
Define Business Goals based on Organization’s Strategic Plan
The organization's purpose, structure, and flow, including interfaces with other organizations and primary customers must be fully known by the Core team.
It is very important to understand the corporate policies and procedures that affect the Six Sigma Quality Management System (QMS).
The short-term and long-term business goals must be defined by the Core team. These goals must be based upon the organization's strategic plan.
Identify the Existing Processes Performance
It is important to identify the overall process of the organization, showing how products or services are created and supplied to the customers.
The Core Team must perform a high-level “gap analysis”.
After the performance, the gap analysis results have to be further reviewed by top management.

Define Six Sigma Improvement Projects
The scope and the goals of Six Sigma improvement projects are defined based on the “gap analysis”, which should include: process management, human resource development, training system, quality tools, supplier management, and customer management.
Create Performance Measures for all Six Sigma Projects
The detailed performance measures for all Six Sigma projects are defined based upon the gap analysis.
These performance measures should be consolidated into an organizational information ystem.
The organizational information system is enhanced in order to provide the information about individual project progress and the overall Six Sigma implementation performances.
Establish an Incentive/Recognition System
An incentive/recognition system is essential to Six Sigma implementation.
Top management is responsible for designing a system to motivate employees in the Six Sigma implementation.

Thank You
Vision Raval
Six sigma Black Belt, MBA
M919898330717

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Introduction Of Six Sigma for IT & BPO by Vision Raval

by Vision Raval on Mar 24, 2010

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Introduction Of Six Sigma for IT & BPO by Vision Raval — Presentation Transcript