Six Sigma is a highly disciplined process that helps companies focus on developing and delivering near-perfect products and services. It aims to measure and reduce defects and variation in processes by using statistical methods. The central idea is that if you can measure defects in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible. Motorola first developed Six Sigma in the 1980s and it has since been adopted by many other companies to significantly improve customer satisfaction and increase profits by reducing variability.

1. SIXSIGMA

2. INTRODUCTION
WHAT IS SIX SIGMA?
Six Sigma at many organizations
simply means a measure of quality
that strives for near perfection.

3. Purpose of six sigma :
To make customer happier and increase
profits
Introduction to Six Sigma

4. A highly disciplined process that helps us focus on
developing and delivering near-perfect products and services.
 The word Six Sigma 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 “defects” you have in a process, you can
systematically figure out how to eliminate them and get as
close to “zero defects” as possible.

5. MEANING
A term used in statistics to represent standard deviation,
an indicator of the degree of variation in a set of a process

6. 6
DEFINATION
Business Definition
A break through strategy to significantly improve
customer satisfaction and shareholder value by
reducing variability in every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per million
opportunities.

7. Current Leadership
Challenges
• Delighting Customers.
• Reducing Cycle Times.
• Keeping up with Technology Advances.
• Retaining People.
• Reducing Costs.
• Responding More Quickly.
• Structuring for Flexibility.
• Growing Overseas Markets.

8. SIX SIGMA
• Six Sigma is a highly disciplined process
that helps a company focus on developing
and delivering near-perfect products and
services.
• Why “sigma”? The word is a statistical
term that measures how far a given
process deviates from perfection.

9. What is Six Sigma?
• It is a methodology for continuous
improvement
• It is a methodology for creating products/
processes that perform at high standards
• It is a set of statistical and other quality
tools arranged in unique way
• It is a way of knowing where you are and
where you could be!
• It is a Quality Philosophy and a
management technique

10. What is 6-Sigma?
• Six-Sigma is an integrated quality improvement
framework, which aims at ensuring no more
than 3.4 defects per million opportunities.
• At the heart of the Six-Sigma methodology lies a
process improvement framework known as
DMAIC (Define, Measure, Analyse, Implement,
Control).
• It brings a rigour to process redesign, which
takes into account the detailed, and dynamic
complexity found in today’s health care systems.

11. Six Sigma is not
• A standard
• A certification
• Another metric like percentage

12. SIX SIGMA
•The central idea behind Six Sigma is
that if you can measure how many
" defects” you have in a process, you
can systematically determine how to
eliminate those and approach “zero
defects”.

13. Six Sigma
Six Sigma provides maximum
value to companies in the forms
of increased profits and maximum
value to consumers with high-
quality products and services at
the lowest possible cost.

14. Origin of Six Sigma
• 1987 Motorola Develops Six Sigma
– Raised Quality Standards
• Other Companies Adopt Six Sigma
– GE
•Promotions, Profit Sharing (Stock Options), etc.
directly tied to Six Sigma training.
– Dow Chemical, DuPont, Honeywell,
Whirlpool

15. Six Sigma
• In 1986, Bill Smith, a senior engineer and scientist at Motorola,
introduced the concept of Six Sigma to standardize the way defects
are counted.
• Six Sigma provided Motorola the key to addressing quality
concerns throughout the organization, from manufacturing to
support functions. The application of Six Sigma also contributed to
Motorola winning the Malcolm Baldrige National Quality award in
1988.
• Since then, the impact of the Six Sigma process on improving
business performance has been dramatic and well documented by
other leading global organizations, such as General Electric, Allied
Signal, and Citibank.
• Today, Motorola continues to implement Six Sigma throughout its
own enterprise, and extends the benefit of its Six Sigma expertise to
other organizations worldwide through Motorola University.
• Six Sigma was derived from the statistical term of sigma which
measures deviations from perfection.

16. Time Line
2002
1995
1992
1987
1985
Dr Mikel J Harry wrote a
Paper relating early failures to
quality
Motorola
Allied Signal
General Electric
Johnson &
Johnson,
Ford, Nissan,
Honeywell

17. Six Sigma History
• 1986: Motorola Defines Six Sigma and in 1987 Chief Executive
declares Motorola will be at 6σ by 1992 (5-year goal)
• 1988: Six Sigma consortium is formed:
Motorola, Raytheon, ABB, CDI, Kodak
• 1989/1990: IBM, DEC try Six Sigma -- and fail
• 1993: AlliedSignal adds a new level to Six Sigma : Dedicated Black
Belts with a supporting infrastructure
• 1995: Jack Welch of General Electric adopts Six Sigma
• 1996-1998: Six Sigma implementation expands significantly as
companies observe the success of Allied and GE :Siebel,
Bombardier, Whirlpool, Navistar, Gencorp, Lockheed Martin,
Polaroid,Sony, Nokia, John Deere
Siemens, BBA, Seagate, Compaq, PACCAR, Toshiba,
McKesson, AmEx...
• 1999: Starting to see exponential growth. Formal Six Sigma training
begins at ASQ: Johnson & Johnson, Air Products, Maytag, Dow
Chemical, DuPont, Honeywell, PraxAir, Ford, BMW, Johnson
Controls, Samsung

18. Sigma Levels
Sigma Level
A value from 1 to 6 that signifies the maximum number
of defects per million:
1 Sigma = 690,000 defects/million = 31% accurate
2 Sigma = 308,537 defects/million = 69.1463%
accurate
3 Sigma = 66,807 defects/million = 93.3193% accurate
4 Sigma = 6,210 defects/million = 99.3790% accurate
5 Sigma = 233 defects/million = 99.9767% accurate
6 Sigma = 3.4 defects/million = 99.999997% accurate

19. Six Sigma at Motorola
Sales and Marketing
Product design
Manufacturing
Customer service
Transactional processes
Supply chain management

20. General Electric
 Saved $750 million by the end of 1998.
 Cut invoice defects and disputes by 98
percent, speeding payment, and creating
better productivity.
 Streamlined contract review process, leading
to faster completion of deals and annual
savings of $1 million.

21. Honeywell: Six Sigma Plus
Initiated Six Sigma efforts in 1992 and
saved more then $600 million a year by
1999.
Reduced time from design to certification
of new projects like aircraft engines from
42 to 33 months.
Increased market value by a compounded
27% per year through fiscal year 1998.

22. SIX SIGMA LEVELS
• Levels of six sigma performance

23. NEAR PERFECTION

24. Six Sigma
It is a Philosophy
– Anything less than ideal is an
opportunity for improvement
– Defects costs money
– Understanding processes and
improving them is the most
efficient way to achieve lasting
results
It is a Process
– To achieve this level of
performance you need to:
Define, Measure, Analyse,
Improve and Control
It is Statistics
– 6 Sigma processes will
produce less than 3.4 defects
per million opportunities

25. PAIN, URGENCY, SURVIVAL
COSTS OUT
GROWTH
TRANSFORM THE
ORGANIZATION
CHANGE
THE
WORLD
6 SIGMA AS A
STATISTICAL TOOL
6 SIGMA AS A
PHILOSOPHY
6 SIGMA AS
A PROCESS
Overview of Six Sigma

26. The
Villain
Cost of Poorly Performing Processes
s level DPMO CP3
2 308,537 Not Applicable
3 66,807 25%-40% of sales
4 6,210 15%-25% of sales
5 233 5%-15% of sales
6 3.4 < 1% of sales
Each sigma shift provides a 10% net income improvement
Cost of Poorly Performing Processes (CP3)
Sigma (s) is a measure of “perfection” relating to
process performance capability … the “bigger the
better.” A process operating at a “Six Sigma” level
produces only 3.4 defects per million opportunities
(DPMO) for a defect. Without dedication of
significant and appropriate attention to a process,
most processes in leading companies operate at a
level between 3 and 4 sigma.
Why is Six Sigma Important?

27. Cost of Poorly Performing
Processes
 The cost to deliver a quality product can account for as
much as 40% of the sales price.
 For example, a laser jet printer purchased for $1,000 may
have cost the manufacturer $400 in rework just to make
sure that you took home an average-quality product.
 For a company whose annual revenues are $100 million
and whose operating income is $10 million, the cost of
quality is roughly 25% of the operating revenue, or $25
million.
 If this same company could reduce its cost of achieving
quality by 20%, it would increase its operating revenue by
$5 million – or 50% of the current operating income.

28. … and the Hero • We don’t know what we don’t know.
• We can’t do what we don’t know.
• We won’t know until we measure.
• We don’t measure what we don’t value.
• We don’t value what we don’t measure.
• Typical Results: companies that properly
implement Six Sigma have seen profit margins
grow 20% year after year for each sigma shift (up
to about 4.8s to 5.0s. Since most companies start
at about 3s, virtually each employee trained in Six
Sigma will return on average $230,000 per
project to the bottom line until the company
reaches 4.7s. After that, the cost savings are not
as dramatic.
• However, improved profit margins allow
companies to create products & services with
added features and functions that result in
greater market share.
What Does Six Sigma Tell Us?

29. © TreMyn 2004
What it means to be @ Six Sigma
Is 99% (3.8s) good enough? 99.99966% Good – At 6s
20,000 lost mails per hour 7 lost mails per hour
Unsafe drinking water almost 15
minutes each day
One minute of unsafe drinking
water every seven months
5,000 incorrect surgical
operations per week
1.7 incorrect surgical operations
per week
2 short or long landings at most
major airports daily
One short or long landing at major
airports every five years
200,000 wrong drug prescriptions
each year
68 wrong drug prescriptions each
year
Example quoted from GE Book of Knowledge - copyright GE

31. Jack
Jill
Who is the better shooter?
Have you ever…
• Shot a rifle?
• Played darts?

32. More about limits
Good quality:
defects are
rare (Cpk>1)
Poor quality:
defects are
common (Cpk<1)
Cpk measures “Process Capability”
If process limits and control limits are at the same location, Cpk = 1. Cpk ≥ 2 is
exceptional.
μ
target
μ
target

33. Six Sigma
Measurement
3
4
5
6
7
66810
6210
233
3.4
0.02
Sigma
DPMO
On one condition :
Calculate the defects
and estimate the
opportunities in the
same way...

34. Six Sigma
Measurement
0
100,000
200,000
300,000
400,000
500,000
600,000
1.5 2.5 3.5 4.5 5.5
# of Sigmas
#
of
Defect
per
Million
Sigma Defects
numbers per million
1.5s 500,000
2.0s 308,300
2.5s 158,650
3.0s 67,000
3.5s 22,700
4.0s 6,220
4.5s 1,350
5.0s 233
5.5s 32
6.0s 3.4

35. Philosophy
• Know What’s Important to the
Customer (CTQ)
• Reduce Defects (DPMO)
• Center Around Target (Mean)
• Reduce Variation (Standard
Deviation)

36. Critical Elements
• Genuine Focus on the Customer
• Data and Fact Driven Management
• Process Focus
• Proactive management
• Drive for Perfection;

37. Management involvement?
• Executives and upper management drive
the effort through:
– Understanding Six Sigma
– Significant financial commitments
– Actively selecting projects tied to strategy
– Setting up formal review process
– Selecting Champions
– Determining strategic measures

38. Six Sigma— Benefits?
• Generated sustained success
• Project selection tied to organizational
strategy
– Customer focused
– Profits
• Project outcomes / benefits tied to
financial reporting system.
• Full-time Black Belts in a rigorous,
project-oriented method.
• Recognition and reward system
established to provide motivation.

39. What can it do?
Motorola:
– 5-Fold growth in Sales
– Profits climbing by 20% pa
– Cumulative savings of $14 billion over
11 years
General Electric:
– $2 billion savings in just 3 years
– The no.1 company in the USA
Bechtel Corporation:
– $200 million savings with investment of
$30 million

40. GE Six Sigma
Economics
1996 1998 2000 2002
0
500
1000
1500
2000
2500
1996
Cost
Benefit
(in millions)
Source: 1998 GE Annual Report, Jack Welch Letter to Share Owners and Employees - progress based
upon total corporation cost/benefits attributable to Six Sigma.
6 Sigma Project Progress

41. Key Concepts

42. COPQ (Cost of Poor Quality)
- Lost Opportunities
- The Hidden Factory
- More Setups
- Expediting Costs
- Lost Sales
- Late Delivery
- Lost Customer Loyalty
- Excess Inventory
- Long Cycle Times
- Costly Engineering Changes
Average COPQ approximately 15% of Sales
Hidden Costs:
- Intangible
- Difficult to Measure
Traditional Quality Costs:
- Tangible
- Easy to Measure
- Inspection
- Warranty
- Scrap
- Rework
- Rejects

43. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2 3 4 5 6
Cost
of
Quality
%
Sales
Sigma Level
COPQ v/s Sigma Level

44. CTQ (Critical-To-Quality)
• CTQ characteristics for the process,
service or process
• Measure of “What is important to
Customer”
• 6 Sigma projects are designed to
improve CTQ
• Examples:
– Waiting time in clinic
– Spelling mistakes in letter
– % of valves leaking in operation

45. Defect Opportunity
• Circumstances in which CTQ can fail to
meet.
• Number of defect opportunities relate to
complexity of unit.
• Complex units – Greater opportunities of
defect than simple units
• Examples:
– A units has 5 parts, and in each part there are 3
opportunities of defects – Total defect opportunities
are 5 x 3 = 15

46. DPO (Defect Per Opportunity)
• Number of defects divided by number of
defect opportunities
• Examples:
– In previous case (15 defect opportunities), if 10 units
have 2 defects.
– Defects per unit = 2 / 10 = 0.2
– DPO = 2 / (15 x 10) = 0.0133333

47. DPMO (Defect Per Million
Opportunities)
• DPO multiplies by one million
• Examples:
– In previous case (15 defect opportunities), if 10 units
have 2 defects.
– Defects per unit = 2 / 10 = 0.2
– DPO = 2 / (15 x 10) = 0.0133333
– DPMO = 0.013333333 x 1,000,000 = 13,333
Six Sigma performance is 3.4 DPMO
13,333 DPMO is 3.7 Sigma

48. Components of Six Sigma

49. 49
Six Sigma methodology
DMAIC
DMADV

50. Six Sigma Methodology
• Six Sigma has two key methodologies:
• DMAIC and DMADV.
• DMAIC is used to improve an existing
business process.
• DMADV is used to create new product
designs or process designs in such a way
that it results in a more predictable, mature
and defect free performance.

51. Lean Six Sigma Methodology

52. Statistical Process Control
Methodology
Statistical process control is an important part of Six
Sigma methodology, which proceeds through the
following steps, also called DMAIC (Define, Measure,
Analyze, Improve and Control):
• 1. Define - benchmarking, process flow mapping,
flowcharts
• 2. Measure - defect metrics, data collection, sampling
• 3. Analyze - Fishbone diagrams, failure analysis, root
cause analysis
• 4. Improve - modeling, tolerance control, defect control,
design changes
• 5. Control - SPC control charts, performance
management

53. Six Sigma Five Phases
Basic methodology consists of the following five phases
DMADV (Define, Measure, Analyze, Design, and Verify):
• Define - formally define the goals of the design activity that
are consistent with customer demands and enterprise
strategy.
• Measure - identify CTQs (Critical to Quality), product
capabilities, production process capability, risk assessment,
etc.
• Analyze - develop design alternatives, create high-level
design and evaluate design capability to select the best
design.
• Design - develop detail design, optimize design, and plan
for design verification. This phase may require simulations.
• Verify - verify design, setup pilot runs, implement
production process and handover to process owners. This
phase may also require simulations.

54. The DMAIC Model
Define Control
Measure Improve
Analyze
Voice of the Customer
Institutionalization

55. DMAIC - simplified
• Define
– What is important?
• Measure
– How are we doing?
• Analyze
– What is wrong?
• Improve
– Fix what’s wrong
• Control
– Ensure gains are
maintained to guarantee
performance

56. Six Sigma Project Methodology
Control
Define Measure Analyze Improve
Establish
standards to
maintain
process;
Design the
controls,
implement and
monitor.
Evaluate
financial
impact of the
project
Identify,
evaluate
and select
projects for
improvement
Set goals
Form
teams.
Collect data
on size of the
selected
problem,
identify key
customer
requirements,
Determine
key product
and process
characteristic.
Analyze
data,
establish and
confirm the “
vital few”
determinants
of the
performance.
Validate
hypothesis
Improvemen
t strategy
Develop
ideas to
remove root
causes
Design and
carry out
experiments,
Optimize
the process.

57. Define
Control
Improve Analyze
Measure
Six Sigma Innovation & the DMAIC Algorithm
Define the problem and customer
requirements.
Measure defect rates and document
the process in its current incarnation
Analyze process data and determine
the capability of the process.
Improve the process and remove
defect causes.
Control process performance and
ensure that defects do not recur.
“Common sense” doesn’t mean “commonly done” or when done,
done well.
Six Sigma: How Do We
Innovate?

58. DMAIC approach
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one,
define statistical goal and identify potential statistical
solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution

59. Define
D
Define
M
Measure
A
Analyze
I
Improve
C
Control
VoC - Who wants the project and why ?
The scope of project / improvement (SMART
Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation

60. Measure
Ensure measurement system reliability
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?
- How many days do you need to collect data for ?
- What is the sampling strategy ?
- Who will collect data and how will data get stored ?
- What could the potential drivers of variation be ?
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

61. Analyze
How well or poorly processes are working
compared with
- Best possible (Benchmarking)
- Competitor’s
Shows you maximum possible result
Don’t focus on symptoms, find the root cause
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

62. Improve
Present recommendations to process owner.
Pilot run
- Formulate Pilot run.
- Test improved process (run pilot).
- Analyze pilot and results.
Develop implementation plan.
- Prepare final presentation.
- Present final recommendation to Management
Team.
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

63. Control
Don’t be too hasty to declare victory.
How will you maintain to gains made?
- Change policy & procedures
- Change drawings
- Change planning
- Revise budget
- Training
D
Define
M
Measure
A
Analyze
I
Improve
C
Control

64.  Benchmark
 Baseline
 Contract / Charter
 Kano Model
 Voice of the
Customer
 Quality Function
Deployment
 Process Flow Map
 Project
Management
 “Management by
Fact” – 4 What’s
 7 Basic Tools
 Defect Metrics
 Data Collection,
Forms, Plan,
Logistics
 Sampling
Techniques
 Cause & Effect
Diagrams
 Failure Models &
 Effect Analysis
 Decision & Risk
Analysis
 Statistical Inference
 Control Charts
 Capability
 Reliability Analysis
 Root Cause Analysis
 5 Why’s
 Systems Thinking
 Design of
Experiments
 Modelling
 Tolerancing
 Robust Design
 Process Map
Statistical Controls
 Control Charts
 Time Series
Methods
Non Statistical
Controls
 Procedure
adherence
 Performance
Mgmt
 Preventive activities
 Poke yoke
Define
What is wrong?
Measure
Data & Process
capability
Analyze
When and where
are the defects
Improve
How to get
to six sigma
Control
Display
key measures
Tools for DMAIC

65. Design for Six Sigma
Applications of Six Sigma that focus on the design or
significant redesign of products and services and their
enabling processes so that from the beginning customer
needs and expectations are fulfilled are known as
Design for Six Sigma or DFSS.
The focal aim of DFSS is to create designs that are resource
efficient, capable of exceptionally high yields, and are
robust to process variations. This aim leads to the DFSS
algorithm
Define-Measure-Analyze-Design-Verify (DMADV).

66. Define
Verify
Design Analyze
Measure
Design for Six Sigma (DFSS)
All new products at GE are designed using a DFSS
algorithm.
Define customer requirements and
goals for the process, product or service
Measure and match performance
to customer requirements.
Analyze and assess the design for
the process, product or service.
Design and implement the array of
new processes required for the new
process, product or service.
Verify results and maintain
performance.
Six Sigma: How Do We
Design?

67. Difference between TQM
and
Six Sigma

68. 1. Total Quality Management involves designing and
developing new systems and processes and ensures
effective coordination among various departments. New
Processes are developed based on various customer
feedbacks and researches.
2. The main focus of Total quality management is to maintain
existing quality standards whereas Six Sigma primarily
focuses on making small necessary changes in the
processes and systems to ensure high quality.
3. The process of Total quality management does reach to a
saturation level after a certain period of time. After
reaching the saturation stage, no further improvements in
quality can be made. Six Sigma on the other hand seldom
reaches the saturation stage by initiating a next level
quality process.

69. 4. The process of Total quality management involves improvement
in existing policies and procedures to ensure high quality. Six-
Sigma focuses on improving quality by minimizing and eventually
eliminating defects from the system.
5. The process of total Quality management ensures that every
single member associated with the organization is working towards
the improvement of existing processes, systems, services and
work culture for long term quality products/ services. Six Sigma, on
the other hand focuses on first identifying and eventually removing
various defects and obstacles which might come in the way of
organization’s success.
6. In a layman’s language total quality management emphasizes
on improving the existing policies and making necessary changes
in the systems to ensure superior quality products and services.
Organizations practicing Six Sigma are focused on removing
errors and defects to ensure high quality products.

70. 7. Total Quality management is a less complicated process than Six
Sigma. Six-Sigma involves specially trained individuals whereas total
quality management does not require extensive training. The process
of Six Sigma creates special levels for employees who are only eligible
to implement the same. Employees trained for Six Sigma are often
certified as “Green Belts” or “Black Belts” depending on their level of
proficiency. Six-Sigma requires participation of only certified
professionals whereas total quality management can be referred to a
part time activity which does not require any special training. Six-
Sigma can be implemented by dedicated and well trained
professionals.
8. Six-Sigma is known to deliver better and effective results as
compared to total quality management. The process of Six Sigma is
based on customer feedbacks and is more accurate and result
oriented. Customer feedbacks play an important role in Six Sigma.
Experts predict that six sigma will outshine total quality management in
due course of time.

71. DFSS is changing GE. With it GE can build on all of its
Capabilities and take all of its product and process
designs to a new level of world-class performance
and quality.
The essence of DFSS is predicting design quality up
front and driving quality measurement and
predictability improvement during the early design
phases-a much more effective and less expensive way
to get to Six Sigma quality than trying to fix problems
further down the road.
What We Do. GE Corporate Research and Development
Design for Six Sigma at GE:

72. Master
Black
Belt
Black Belts
Green Belts
Team Members /
Yellow Belts
Champion
s
Mentor, trainer, and coach of Black Belts and others
in the organization.
Leader of teams implementing the six sigma
methodology on projects.
Delivers successful focused projects using
the six sigma methodology and tools.
Participates on and supports the
project teams, typically in the
context of his or her existing
responsibilities.
6 s Training

73. Six Sigma
Organization
Champion
Black
Belt
Black
Belt
Black
Belt
Green
Belt
Green
Belt
Green
Belt
Green
Belt
Green
Belt
Yellow
Belt
Yellow
Belt
Yellow
Belt
Yellow
Belt
Master
Black
Belt

74. Champion
• Plans improvement projects
• Charters or champions chartering
process
• Identifies, sponsors and directs Six
Sigma projects
• Holds regular project reviews in
accordance with project charters
• Includes Six Sigma requirements in
expense and capital budgets

75. Champion
• Identifies and removes organizational and
cultural barriers to Six Sigma success.
• Rewards and recognizes team and
individual accomplishments (formally and
informally)
• Communicates leadership vision
• Monitors and reports Six Sigma progress
• Validates Six Sigma project results
• Nominates highly qualified Black Belt and/or
Green Belt candidates

76. Master Black Belt
Roles Responsibilities
-Enterprise Six Sigma expert
-Permanent full-time change
agent
-Certified Black Belt with
additional specialized skills
or experience especially
useful in deployment of Six
Sigma across the enterprise
- Highly proficient in using Six
Sigma methodology to achieve
tangible business results.
-Technical expert beyond Black Belt
level on one or more aspects of
process improvement (e.g., advanced
statistical analysis, project
management, communications,
program administration, teaching,
project coaching)
-Identifies high-leverage opportunities
for applying the Six Sigma approach
across the enterprise
-Basic Black Belt training
-Green Belt training
-Coach / Mentor Black Belts

77. Roles Responsibilities
- Six Sigma technical expert
- Temporary, full-time change
agent (will return to other
duties after completing a two
to three year tour of duty as a
Black Belt)
- Leads business process
improvement projects where Six
Sigma approach is indicated.
- Successfully completes high-
impact projects that result in
tangible benefits to the enterprise
- Demonstrated mastery of Black
Belt body of knowledge
- Demonstrated proficiency at
achieving results through the
application of the Six Sigma
approach
- Coach / Mentor Green Belts
- Recommends Green Belts for
Certification
Black Belt

78. Green Belt
Roles Responsibilities
- Six Sigma Project originator
- Part-time Six Sigma change
agent. Continues to perform
normal duties while
participating on Six Sigma
project teams
- Six Sigma champion in local
area
- Recommends Six Sigma projects
- Participates on Six Sigma project
teams
- Leads Six Sigma teams in local
improvement projects

79. Yellow Belt
Roles Responsibilities
- Learns and applies Six Sigma
tools to projects
- Actively participates in team tasks
- Communicates well with other team
members
- Demonstrates basic improvement
tool knowledge
- Accepts and executes assignments
as determined by team

80. Harvesting the Fruit of Six
Sigma
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sweet Fruit
Design for Repeatability
Bulk of Fruit
Process Characterization
and Optimization
Low Hanging Fruit
Seven Basic Tools
Ground Fruit
Logic and Intuition
Process Enhancement
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

81. Types of Savings
• Hard Savings:
– Cost Reduction
• Energy Saving
• Raw Material saving
• Reduced Rejection, Waste, Repair
– Revenue Enhancement
• Increased production
• Yield Improvement
• Quality Improvement

82. • Hard Savings:
– Cash flow improvement
• Reduced cash tied up in inventory
• Reduced late receivables, early payables
• Reduced cycle time
– Cost and Capital avoidance
• Optimizing the current system / resources
• Reduced maintenance costs
Types of Savings

83. • Soft Savings:
– Customer Satisfaction / Loyalty
– Employee Satisfaction
Types of Savings

84. Cost of implementing
• Direct Payroll
– Full time (Black Belts, Master Black Belts)
• Indirect Payroll
– Time by executives, team members, data
collection
• Training and Consulting
– Black Belt course, Overview for Mgmt etc.
• Improvement Implementation Costs
– Installing new solution, IT driven solutions
etc.

85. What Qualifies as a
Six Sigma Project
• Three basic qualifications:
– -There is a gap between current and
desired / needed performance.
– The cause of problem is not clearly
understood.
– The solution is not pre-determined, nor
is the optimal solution apparent.
How many projects out of 20 now
qualify as Six sigma projects?

86. PREREQUISITES FOR SUCCESSFUL
SIX SIGMA IMPLEMENTATION
• A visible commitment from the top
leadership.
• Using the language of six-sigma
throughout the organisation
• Relentless goals that force process re-
engineering.

87. PREREQUISITES FOR SUCCESSFUL
SIX SIGMA IMPLEMENTATION
• The use of innovative ideas to improve
processes.
• Use of data and not emotion to make
decisions.
• Maintaining six-sigma as a topic of
interest.
• Engaging and empowering the employees

88. Way forward
• Get Started
• Look for low hanging fruits
• Even poor usage of these tools will get
results
• Learn more about Six Sigma

89. Six Sigma Organizations
• GE … All 300,000+ GE employees
must be Six Sigma certified. All new
GE products developed using the
“Design for Six Sigma” (DFSS)
approach.
• 3M … New CEO (from GE) requires
all 3M employees to become Six
Sigma certified.
• Dupont
• AlliedSignal
• Sun Microsystems
• Raytheon
• Motorola
• Boeing
• Lockheed-Martin
• Bank-of-America
• American Express
• HSBC
• SAS Institute
Rapidly Increasing Areas of
Application.
– Healthcare – GE Heathcare - SLC
– Financial,
– Military – NSWC, Pentagon, etc.
• Fueled by:
• Strategic Contexts.
• Notorious bottom-line orientation &
results.
• Adaptable to multiple bottom lines.
• Process orientation: rigorous and
systematic approaches to innovation
and design.
• Focus on the customer.
• Successful track record elsewhere.
• “Industry Buzz”.

90. © TreMyn 2004
The Growth of Six Sigma

91. Six Sigma has changed the DNA at GE
– it is the way that GE works
– in Everything that GE does and
-in every product GE designs.
Six Sigma from the GE Perspective

92. • With Six Sigma embedding itself deeper
into GE’s processes, they achieved the
previously “impossible” operating margin
of 16.7% in 1998 – up from 13.6% in 1995.
• In dollar amounts, Six Sigma delivered
more than $300 million to GE’s 1997
operating income and more than $600
million in 1998.

93. © TreMyn 2004
Six Sigma Organization

94. Six Sigma - Three Dimensions
Tools
Organization
Methodology
Process variation
LSL US
L
Upper/Lower
specification
limits
Regression
••
•
•••
•
••
•••
•
••
••
••
•••
••
•••
•
•
•
Driven
by
custom
er
needs
Enabled by quality
team.
Led by
Senior
Mgmt
Define Measur
e
Analyze Improve Control
Vendor
Vendor
Process B
Process B
Process A
Process A
Customer
Customer Vendor
Vendor
Process B
Process B
Process A
Process A
Customer
Customer
Process Map Analysis
0
5
10
15
20
25
30
35
L K A F B C G R D
0%
20%
40%
60%
80%
100%
Frequency Cumulative Frequency
Pareto Chart

95. The Quality Team
Master Black Belt
Black Belt Black Belt
Green Belt
Green Belt
Green Belt
- Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black Belts
- Backbone of Six Sigma Org
- Mentor Green Belts
- Full time resource
- Deployed to complex or
“high risk” projects
- Part time or full time
resource
- Deployed to less complex
projects in areas of functional
expertise

96. Six Sigma – Career Option!
• Basic - Six Sigma Awareness
• Green Belt Projects
• Participate in Black Belt Projects
• Assist business functions with day to day
activities
• Mentor/Train Green Belts
• Black Belt Projects
• Change Agents
• Work along with the business owners
• Mentor/ Train Black Belts
• Run Strategic projects
• More Strategic than tactical role
Green Belt (GB)
Black Belt (BB)
Master Black Belt (MBB)
Highly paid!
Work like a Consultant!
Huge demand in the industry!
Overall…A high flying Career!!

97. Between -1 and +1
Standard Deviation
68.3% (about two
thirds)
Between -2 and +2
Standard Deviation
95.5% (about 95%)
Between -3 and +3
Standard Deviation
99.7%

98. •Executive Leadership (CEO and other top level
managers)
•Champions (act as the leaders of black belts.
And also )
•Master Black Belts (chosen by champions, give
their full effort to six sigma. Help to champions
and guide the Black belts and green belts).
•Black belts (working under Master Black Belts,
they are applying six sigma to specific projects).
•Green Belts (Working under the black belts).

99. Implemented Methodologies
Total Quality
Management
Zero
defects
Quality
Control

101. Focus of Six Sigma
• Accelerating fast breakthrough
performance
• Significant financial results in 4-8
months
• Ensuring Six Sigma is an extension
of the Corporate culture, not the
program of the month
• Results first, then culture change!

102. • There is nothing new. It only proves defects and
defectives counts offer tangible, measurable results.
•It is corrective action system rather than taking a
preventive and proactive approach to problems.
•It is merely about appraisal system and that appraisal
programs aren’t useful. In realty, appraisals are great
tools for identifying and tracking improvements, which
is critical to any project.
•Critics have suggested that Six Sigma did not bring
quality improvement in all the organizations where it
was implemented.
It depends on the tools and authorizations.

103. Management philosophy of
quality
Components of Six Sigma are
people power and process
power
Define, Measure, Analyze,
Improve, Control Criticisms
Executive Leader, Champion,
Master Black Belt, Black Belt,
and Green Belt
Statistical target of six sigma or
3.4 defects in one million
opportunities
Summary