ON SIX SIGMA
• In today’s world due to insufficient quality or indifference to quality lead to disputes,
which imposes serious drain on the financial resources of a company and limits profit
• To be competitive in today’s market, it is essential for construction companies to
provide more consistent quality and value to their owners /customers.
• It is high time to develop better and more direct relationships with our owners/
customers, to initiate more teamwork at the jobsite, and to producebetter quality
• TQM owes its origin to two Americans- W.Edwards Deming and J.M. Juran- who
launched it first in Japan which was on the process of rebuilding its economy
devastated by World War- 2
CONCEPT OF SIX SIGMA
• Six sigma is a way of thinking and the results of the approach can yield a spectrum of
improvement choices based on the balance of values and risk
• Six sigma is an internationally recognized management process focused on producing
high quality products or services to meet the customer’s need and satisfaction
• Six Sigma is not a set of statistical tools, neither it is a bureaucratic, stage – gate
approach to managing the projects but it is represents a philosophy to reduce
variation continuously and create a win situation for all the partners in and around the
business or services
• Six Sigma pioneer Motorola started the program in 1987 Motorola describe Six Sigma
as a standard methodology "for driving and achieving transformational change within
OBJECTIVES IF SIX SIGMA
• To reduce variation.
• To solving the problems in scientific manner.
• Six Sigma places an emphasis on the DMAIC approach (define, measure,
analyze, improve, and control) to problem solving.
• To develop the bottom line responsibilities towards continuous
• Organizations using Six Sigma often utilize teams that are assigned well-
defined projects with a direct impact on the bottom line.
THE THREE KEY OF SIX SIGMA
1. Leadership Commitment: Achieving Six Sigma is not easy – it requires serious
commitment in the form of time, effort, and resources. For a company to be successful,
such commitment must come first from the top executive leadership of the organization
and must be practiced by everyone.
2. Managing Decisions with Data: It is not enough to run a business based on one's
experience or "tribal knowledge." Decisions must be based on data versus the typical "I
think", "I feel", or "In my opinion" practices that often exist today.
• With the maturation of the information economy, data is available to virtually everyone
in the organization, along with the tools for analyzing that data.
• Properly using data to Measure, Analyze, Improve, and Control performance forms the
foundation of the Six Sigma methodology.
3. Training and Cultural Change: Improved performance does not and will not happen
automatically. High-calibre training is required. Disciplined implementation must follow,
and people at all levels have to change the way they go about doing their jobs.
• In short, new ways of thinking, communicating, and operating must pervade the entire
organization. You also need a methodology. DMAIC and DFSS provide a structured
problem solving roadmap and tools towards obtaining the results you expect.
SIX SIGMA METHODOLOGY-DMAIC &
• Six Sigma is a process oriented methodology designed to improve business
performance by improving specific areas of strategic business processes. There
are 2 different methodologies available for carrying out improvements in
processes or operations.
• Improvements can be of two types: improving the existing process or designing a
new process altogether. When we have an existing process and we want to
improve the process we deploy the DMAIC methodology. While designing a new
process or completely revamping the existing process the Design for Six Sigma or
IDOV methodology is deployed.
• Define the problem.
• Define the customer(s) and the requirements.
• Define the current capability.
• Define the key processes that will have the greatest impact on customer.
• Identify the statistical measures to monitor the key process.
• Set up the data collection plan.
• Measure the process
• Determine the analysis tools and methods to be used.
• Summarize the data measured.
• Run the analysis and determine the root causes, effects, etc.
• Improve and Implement.
• Focus on developing process/technology to improve the root cause.
• Test the method on sample process and validate the improvement.
• Standardize and document the process and implement the plan.
• Monitor the process and feedback the results back to the process for continuous improvement.
• Develop a team.
• Create team charter.
• Gather VOC.
• Perform competitive analysis.
• Develop CTQs and formally tie design to VOC.
• Identify functional requirements.
• Develop alternative concepts.
• Evaluate alternatives and select a best-fit concept.
• Deploy CTQs and predict sigma capability.
• Determine process capability.
• Develop detailed design elements.
• Predict performance.
• Optimize design.
• Test and validate the design.
• Share feedback with manufacturing and sourcing to improve future manufacturing and
MOTOROLA’S APPLICATION OF SIX
• Six Sigma became a poster child for driving down cost and improving organizational bottom line
when Motorola won the Malcolm Baldrige National Quality Award in 1988, which was the ﬁrst
year this award was presented. In 1987, Motorola was operating at a four sigma level. This means
that Motorola was running at defect rate of about 6,200per million opportunities compared to its
Japanese counter parts that were running at 3.4 defects per million opportunities.
• Motorola’s defect rates lead to increase cost to sales and diminished proﬁts and contributed to
losing market share.
• Motorola’s customers included many police, ﬁre, and emergency response organizations that
relied on radios and communication equipments manufactured by Motorola.. Losing these
customer’s to foreign competition would be public relations and ﬁnancial disaster for Motorola.
Given Motorola’s dire situation, Chairman Bob Galvin mandated bold initiative for the
company. This mandate could be summed up as:
(1) improve product quality by ten times in two years;
(2) improve product quality by 100 times in four years; and
(3) reach Six Sigma quality level in ﬁve years.
• The immediate goal of Six Sigma is to reduce defects. Reducing defects leads to yield
improvement. Higher yields improve customer satisfaction. The ultimate goal is enhanced
• Six Sigma applications brought process focus to the company and resulted in tremendous
cost and process improvements. In 2002, Six Sigma application earned Motorola another
Malcolm Baldrige National Quality Award in the Government and Industrial Sector.