Six Sigma


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  • It gives basic underestanding of sixsigma but does not hightlight why isn't more companies pursue the sixsigma initiative. Are there more failures than success in sixsigma implementation? How can we avoid failures? . Would appreciate enlightenment in aforesaid questions.
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Six Sigma

  1. 1. Six Sigma
  2. 2. <ul><li>Globalization and instant access to information, products and services have changed the way our customers conduct business — old business models no longer work. Today's competitive environment leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is why Six Sigma Quality has become a part of our culture. </li></ul>
  3. 3. Definitions of Six Sigma <ul><li>Six sigma in many organizations simply means a measure of quality that strives for near perfection </li></ul><ul><li>Six sigma is a disciplined data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limits) in any process from manufacturing to transactional and from product to service. </li></ul><ul><li>An aggressive campaign to boost profitability, increase market share and improve customer satisfaction using quality as the strategic business focus. </li></ul>
  4. 4. What is Six Sigma <ul><li>First, what it is not. It is not a secret society, a slogan or a cliché. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services. Why &quot;Sigma&quot;? The word is a statistical term that measures how far a given process deviates from perfection. The central idea behind Six Sigma is that if you can measure how many &quot;defects&quot; you have in a process, you can systematically figure out how to eliminate them and get as close to &quot;zero defects&quot; as possible. Six Sigma has changed the DNA of GE — it is now the way we work — in everything we do and in every product we design. </li></ul>
  5. 5. <ul><li>The many Facets of Six Sigma </li></ul><ul><li>Metrics </li></ul><ul><li>Benchmark </li></ul><ul><li>Vision </li></ul><ul><li>Philosophy </li></ul><ul><li>Method </li></ul><ul><li>Tool </li></ul><ul><li>Symbol </li></ul><ul><li>Goal </li></ul><ul><li>Value </li></ul>SIX SIGMA
  6. 6. <ul><ul><ul><ul><ul><li>A CURE FOR ALL ILLS </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A GUARANTEE OF SUCCESS </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>JUST FOR MANUFACTURING </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A SIMPLE TOOL </li></ul></ul></ul></ul></ul>AND NOT
  7. 7. What does “Metrics” stand for ? <ul><li>Measure </li></ul><ul><li>Everything </li></ul><ul><li>That </li></ul><ul><li>Results </li></ul><ul><li>In </li></ul><ul><li>Customer </li></ul><ul><li>Satisfaction </li></ul>METRICS
  8. 8. What is Six Sigma <ul><li>It is a Metric (Statistical Measure) </li></ul><ul><li>Sigma, a Greek Letter used for representing </li></ul><ul><li>Process Variation </li></ul><ul><li>Higher the Number (6,5,4…) before “Sigma”- </li></ul><ul><li>lesser the variation, higher the product </li></ul><ul><li>quality and customer satisfaction. </li></ul>
  9. 9. What is Six Sigma <ul><li>It is a Benchmark </li></ul><ul><li>To gain a competitive edge </li></ul><ul><li>The breakthrough strategy coupled with Project </li></ul><ul><li>by project methodology. Helps in bridging the </li></ul><ul><li>gap and to go beyond. </li></ul>
  10. 10. What is Six Sigma <ul><li>It is a Vision </li></ul><ul><li>The desire and ability to look far ahead </li></ul><ul><li>Thinking differently </li></ul>
  11. 11. What is Six Sigma <ul><li>It is a Philosophy </li></ul><ul><li>Creates a quality culture in the whole </li></ul><ul><li>organization making it a religion and GOD </li></ul><ul><li>Lesser the opportunity for committing an error </li></ul><ul><li>or mistake. </li></ul><ul><li>Higher the rewards. </li></ul>
  12. 12. What is Six Sigma <ul><li>It is a Tool </li></ul><ul><li>To measure and improve Business Bottom Line </li></ul><ul><li>Adopts an excellent and powerful strategy. </li></ul><ul><li>The Breakthrough Strategy (BTS). </li></ul><ul><li>To Deliver quantum improvements in a short time. </li></ul>
  13. 13. What is Six Sigma <ul><li>It is a Symbol </li></ul><ul><li>Recognition and image </li></ul><ul><li>Indicates performance excellence in various facets </li></ul><ul><li>of business. </li></ul><ul><li>The highest level of Product Quality & customer </li></ul><ul><li>Satisfaction associated with it. </li></ul>
  14. 14. What is Six Sigma <ul><li>It is a Value </li></ul><ul><li>For growing your business </li></ul><ul><li>Continual improvement brings down costs </li></ul><ul><li>Resulting in more profits, market share </li></ul><ul><li>and customer satisfaction. </li></ul>
  15. 15. What is Six Sigma <ul><li>It is a Goal </li></ul><ul><li>To scale to new heights and to reach </li></ul><ul><li>world class level. </li></ul><ul><li>Top down approach with aggressive campaign </li></ul><ul><li>Initiated by the chief executive and involving right </li></ul><ul><li>people for the right job. </li></ul>
  16. 16. Why Six Sigma <ul><li>Unsafe landing at major airports </li></ul><ul><li>Heart fails to beat 32000 times a year </li></ul><ul><li>12 babies given to wrong parents each day </li></ul><ul><li>1600 lost pieces of mail per hour </li></ul><ul><li>500 incorrect surgeries performed each week </li></ul><ul><li>99.9% (4 Sigma) is not good enough </li></ul>
  17. 17. Why Six Sigma <ul><li>Delighting Customers Customers are the center of universe: they define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. In every attribute that influences customer perception, we know that just being good is not enough. Delighting our customers is a necessity. Because if we don't do it, someone else will! </li></ul>
  18. 18. Why Six Sigma <ul><li>Outside-In Thinking </li></ul><ul><li>Quality requires us to look at our business from the customer's perspective, not ours. In other words, we must look at our processes from the outside-in. By understanding the transaction lifecycle from the customer's needs and processes, we can discover what they are seeing and feeling. With this knowledge, we can identify areas where we can add significant value or improvement from their perspective. </li></ul>
  19. 19. Why Six Sigma <ul><li>Leadership Commitment </li></ul><ul><li>People create results. Involving all employees is essential to GE's quality approach. GE is committed to providing opportunities and incentives for employees to focus their talents and energies on satisfying customers. </li></ul><ul><li>All GE employees are trained in the strategy, statistical tools and techniques of Six Sigma quality. Training courses are offered at various levels: </li></ul><ul><li>Quality Overview Seminars: basic Six Sigma awareness. </li></ul><ul><li>Team Training: basic tool introduction to equip employees to participate on Six Sigma teams. </li></ul><ul><li>Master Black Belt, Black Belt and Green Belt Training: in-depth quality training that includes high-level statistical tools, basic quality control tools, Change Acceleration Process and Flow technology tools. </li></ul><ul><li>Design for Six Sigma (DFSS) Training: prepares teams for the use of statistical tools to design it right the first time. </li></ul><ul><li>Quality is the responsibility of every employee. Every employee must be involved, motivated and knowledgeable if we are to succeed. </li></ul>
  20. 20. <ul><li>To achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities. An &quot;opportunity&quot; is defined as a chance for nonconformance, or not meeting the required specifications. This means we need to be nearly flawless in executing our key processes. Six Sigma is a vision we strive toward and a philosophy that is part of our business culture. </li></ul>
  21. 21. Key Concepts of Six Sigma At its core, Six Sigma revolves around a few key concepts. Designing to meet customer needs and process capability Design for Six Sigma: Ensuring consistent, predictable processes to improve what the customer sees and feels Stable Operations: What the customer sees and feels Variation: What your process can deliver Process Capability: Failing to deliver what the customer wants Defect: Attributes most important to the customer Critical to Quality:
  22. 22. Six Sigma Terminology <ul><li>Defect is defined as any thing outside customer specifications. </li></ul><ul><li>Opportunity is total quantity of chance of a defect. </li></ul><ul><li>Process is a set of linked or related activities that take inputs and transform them into outputs and transform them into outputs with the purpose of producing a product, information or service for external or internal customers. </li></ul>
  23. 23. Processes <ul><li>Effective - Meets customer demand </li></ul><ul><li>Efficient - Meets business objectives </li></ul>
  24. 24. <ul><li>Our Customers Feel the Variance, Not the Mean </li></ul><ul><li>Often, our inside-out view of the business is based on average or mean-based measures of our recent past. Customers don't judge us on averages, they feel the variance in each transaction, each product we ship. Six Sigma focuses first on reducing process variation and then on improving the process capability. </li></ul><ul><li>Customers value consistent, predictable business processes that deliver world-class levels of quality. This is what Six Sigma strives to produce. </li></ul><ul><li>Success with Six Sigma has to exceed our most optimistic predictions. Our associates embrace Six Sigma's customer-focused, data-driven philosophy and apply it to everything we do. We are building on these successes by sharing best practices across all of our businesses, putting our full power behind our quest for better, faster customer solutions. </li></ul>
  25. 25. <ul><li>DFSS – (Design for Six Sigma) is a systematic methodology utilizing tools, training and measurements to enable us to design products and processes that meet customer expectations and can be produced at Six Sigma quality levels. </li></ul><ul><li>DMAIC – (Define, Measure, Analyze, Improve and Control) is a process for continued improvement. It is systematic, scientific and fact based. This closed-loop process eliminates unproductive steps, often focuses on new measurements, and applies technology for improvement. </li></ul><ul><li>Six Sigma – A vision of quality which equates with only 3.4 defects per million opportunities for each product or service transaction. Strives for perfection. </li></ul>
  26. 26. <ul><li>Quality Tools Associates are exposed to various tools and terms related to quality. Below are just a few of them. </li></ul><ul><li>Control Chart – Monitors variance in a process over time and alerts the business to unexpected variance which may cause defects. </li></ul><ul><li>Defect Measurement – Accounting for the number or frequency of defects that cause lapses in product or service quality. </li></ul><ul><li>Pareto Diagram – Focuses on efforts or the problems that have the greatest potential for improvement by showing relative frequency and/or size in a descending bar graph. Based on the proven Pareto principle: 20% of the sources cause 80% of any problems. </li></ul>
  27. 27. <ul><li>Process Mapping – Illustrated description of how things get done, which enables participants to visualize an entire process and identify areas of strength and weaknesses. It helps reduce cycle time and defects while recognizing the value of individual contributions. </li></ul><ul><li>Root Cause Analysis – Study of original reason for nonconformance with a process. When the root cause is removed or corrected, the nonconformance will be eliminated. </li></ul><ul><li>Statistical Process Control – The application of statistical methods to analyze data, study and monitor process capability and performance. </li></ul><ul><li>Tree Diagram – Graphically shows any broad goal broken into different levels of detailed actions. It encourages team members to expand their thinking when creating solutions. </li></ul>
  28. 28. <ul><li>Quality Terms </li></ul><ul><li>Black Belt – Leaders of team responsible for measuring, analyzing, improving and controlling key processes that influence customer satisfaction and/or productivity growth. Black Belts are full-time positions. </li></ul><ul><li>Control – The state of stability, normal variation and predictability. Process of regulating and guiding operations and processes using quantitative data. </li></ul><ul><li>CTQ: Critical to Quality (Critical &quot;Y&quot;) – Element of a process or practice which has a direct impact on its perceived quality. </li></ul><ul><li>Customer Needs, Expectations – Needs, as defined by customers, which meet their basic requirements and standards. </li></ul><ul><li>Defects – Sources of customer irritation. Defects are costly to both customers and to manufacturers or service providers. Eliminating defects provides cost benefits. </li></ul><ul><li>Green Belt – Similar to Black Belt but not a full-time position. </li></ul><ul><li>Master Black Belt – First and foremost teachers. They also review and mentor Black Belts. Selection criteria for Master Black Belts are quantitative skills and the ability to teach and mentor. Master Black Belts are full-time positions. </li></ul><ul><li>Variance – A change in a process or business practice that may alter its expected outcome. </li></ul>
  29. 29. Six Sigma organizational structure <ul><li>Quality leader / manager (QL/QM) </li></ul><ul><li>Master Black Belt (MBB) </li></ul><ul><li>Process Owner (PO) </li></ul><ul><li>Black Belt (BB) </li></ul><ul><li>Green Belt (GB) </li></ul>
  30. 30. How to Implement Six Sigma <ul><li>Process approach </li></ul><ul><li>Top management driven </li></ul><ul><li>Team orientation </li></ul><ul><li>Structured methodology </li></ul><ul><li>Scientific techniques </li></ul><ul><li>Right focus </li></ul>
  31. 31. IMPACT OF SIX SIGMA ON QUALITY <ul><li>In six-sigma level of quality desirable ? </li></ul>
  32. 32. <ul><li>The statistical representation of Six sigma describes quantitatively how a process is performing. </li></ul><ul><li>To achieve Six sigma a process must not produce more than 3.4 defects per million opportunities. </li></ul>
  33. 33. Six Sigma as a Goal <ul><li>Sigma Rating PPM </li></ul><ul><li>2 3,05,537 </li></ul><ul><li>3 66,807 </li></ul><ul><li>4 6,210 </li></ul><ul><li>5 233 </li></ul><ul><li>6 3.4 </li></ul><ul><li>Process Defects per million </li></ul><ul><li>Capability opportunities </li></ul><ul><li>The Sigma scale of measure is perfectly correlated to such </li></ul><ul><li>characteristics as defects-per-unit, parts-per-million defective, and </li></ul><ul><li>the probability of a failure / error. </li></ul>
  34. 34. Fundamental Principles of Six Sigma <ul><li>All work occur in a system of interconnected </li></ul><ul><li>Processes </li></ul><ul><li>Variations occurs in all processes </li></ul><ul><li>Understanding and reducing variation are keys to </li></ul><ul><li>success </li></ul>
  35. 35. Six Sigma - Characteristics <ul><li>Focuses on processes </li></ul><ul><li>Reduces defects by process centering and </li></ul><ul><li>reducing variation </li></ul><ul><li>Focuses on improvement as a goal. </li></ul><ul><li>Is action oriented </li></ul>
  36. 36. <ul><li>The fundamental objective of the Six Sigma methodology is the implementation of a measurement based strategy that focuses on </li></ul><ul><li>process improvement projects. </li></ul>
  37. 37. Two Methodologies: <ul><li>DMAIC – Define, Measure, Analyse, Improve, Control – useful for existing processes falling below specifications and looking for incremental improvement. </li></ul>
  38. 38. Two Methodologies: <ul><li>DMADV – Define, Measure, Analyse, Design, Verify </li></ul><ul><li>If is an important improvement system used to develop new processes or products at six Sigma quality levels. Also useful for current processes requiring more than just incremental improvement. </li></ul>
  39. 39. <ul><li>Who will use six Sigma & when ? </li></ul><ul><li>Any Organization </li></ul><ul><li>& </li></ul><ul><li>Right Now </li></ul>