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6 SIGMA AND KAIZEN

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Basic Six Sigma Presentation
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6 SIGMA AND KAIZEN

  1. 1. 6 SIGMA & KAIZEN GROUP NO. 5
  2. 2. GROUP MEMBERS CONTENTS 1.Ramesh (22) : Six sigma and definition & Levels 2. T.L. Smriti (18) :Tools of six sigma 3. Rupak ( ) : Implementation &Benefits 4.Aditi ( ) : Kaizen concept. 5.Shital (15) : Kaizen practice. 6.Zalak ( ) : approach & working together 7.Smriti & Shital : Difference of Six Sigma & Kaizen
  3. 3. ABOUT SIX SIGMA  Six Sigma Was Developed at Motorola in the 1980’s As a Method to Improve Process Quality.  It Was First Used to Improve Manufacturing Process Capability and Then Migrated to Business Processes Capability.  Companies That Have Deployed Six Sigma: Bank of America, Motorola, GE, IBM, Kodak and Many More.  The Basic Premise Is, All Processes Have Variation. Variation Is the Enemy.
  4. 4. DEFINITION • 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.
  5. 5. THREE LEVELS OF SIX SIGMA 1. As a Metric The term “ Sigma ” is often used as scale for levels of “ Goodness ” or quality. – Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose. – Equates to 3.4 defects per one million opportunities (DPMO).
  6. 6. 2. As a methodology  A business improvement methodology that focuses an organization on : – Understanding and managing customer requirements. – Aligning key business processes to achieve those requirements. – Driving rapid and sustainable improvement to business processes.
  7. 7.  At the heart of the methodology is the DMAIC model for process improvement : D Define M Analyze the process define Measure factors of influence. A Analyze I Improve C Control Define the problem and the objectives What do we need to improve? Can we measure this? Assure that improvement will sustain. Identify and implement improvements.
  8. 8. 3. As a management system  A top– down solution to help organizations:  Align their business strategy to critical improvement efforts  Mobilize teams to attack high impact projects  Accelerate improved business results  Govern efforts to ensure improvements are sustained  Framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.
  9. 9. LEVELS OF SIX SIGMA IMPLEMANTATION • Six sigma champion • Green belts • Black belts • Master Black belts
  10. 10. TOOLS OF SIX SIGMA QUALITY FUNCTION DEPLOYMENT CAUSE AND EFFECT METRIX FAILURE MODES EFFECTS ANALYSIS CONTROL CHARTS DESIGN OF EXPERIMENTS
  11. 11. BENEFITS OF SIX SIGMA Generates sustained success.  Sets performance goal foe everyone.  Enhances value for customers.  Accelerates rate of improvement.  Promotes learning across boundaries.  Executes strategic change.
  12. 12. WHAT MAKES SIX SIGMA DIFFERENT?  Breakthrough improvement Versatile  Financial result focus  Process focus  Structured & disciplined problem solving methodology using scientific tools and techniques.  Customer centered  Involvement of leadership is mandatory  Training is mandatory  Action learning ( 25% class room, 75% application )  Creating a dedicated organization for problem solving (85/50 Rule)
  13. 13. KAIZEN-THE CONCEPT Kaizen …. means improvement Ongoing improvement Involves everyone Both Manager & workers Kaizen Philosophy Our way of life need to be constantly improved Working life, social life, home life
  14. 14. KAIZEN - THE PRACTICE MANAGEMENT GROUP INDIVIDUAL TOOLS Seven QC Tools New Seven Tools Professional Skills Seven QC Tools New Seven Tools Common Sense Seven QC Tools INVOLVES Managers and Professionals QC Circles Everyone TARGET Systems and Process Group Work area Individual work area IMPLEMENTATION COST Small investment Mostly inexpensive Inexpensive RESULTS New System and Facility improvement Improved work procedures On the spot improvement
  15. 15. KAIZEN & INNOVATION KAIZEN INNOVATION 1. Effect Long-term and business as usual Short term and dramtic 2. Pace Small Steps Big Steps 3. Time frame Continuous and Incremental Intermittent and non-incremental 4. Change Gradual and constant Abrupt and volatile 5. Involvement Every-one Selected champions 6. Approach Collective group efforts, systems approach Individual ideas and efforts 7. Mode Maintenance and Improvement Scrap and Rebuild 8. Effort Orientation People Technology 9. Practical Requirements Little investment but great efforts to maintain Large investment but little effort to maintain 10. Advantage Works well in slow growth economy Better suited in fast growth economy
  16. 16. Another comparison of Innovation and Kaizen INNOVATION KAIZEN Creativity Individualism Specialist-oriented Attention to great leaps Technology-oriented Information: closed, proprietary Functional (specialist) orientation Seek new technology Line + staff Limited feedback Adaptability Teamwork (systems approach) Generalist-oriented Attention to details people-oriented Information: open, shared Cross-functional orientation Build on existing technology Cross-functional organization Comprehensive feedback
  17. 17. KAIZEN APPROACH Process Oriented Approach Leads to Improved Results Focus on the process improvement without loosing sight of the expected results. People Oriented Approach Focus on …. Discipline Time Management Skill Development Participation and Involvement Morale Communication
  18. 18. BENEFITS OF KAIZEN 1. Kaizen reduces waste-like inventory waste, time waste & workers motion. 2. Kaizen improves space utilization & product quality. 3. Results in higher employee moral and job satisfaction. 4. Teaches workers how to solve everyone problems.
  19. 19. PIT FALLS IN KAIZEN • Resistance to change. • Lack of proper procedure to implement. • Too much suggtion may lead to confusion and time wastage.
  20. 20. SIX SIGMA AND KAIZEN WORKING TOGETHER CATEGORIED IN :“SIX SIGMA” 1. Improvement tools. 2. How 6 sigma and kaizen improve organization. 3. Overall effects on 6 sigma.
  21. 21. DIFFERENCE BETWEEN “KAIZEN – 6 SIGMA” KAIZEN 6 - SIGMA 1) Improve existing system Human based 2) Simpler 3) Low cost 4) Relies upon group dynamics 5) Japanese origin 6) Long term results 7) Providing quality 8) Participation of every single employee 1) Improve existing system statistics method improvement framework - DMAIC 2) Difficult 3) High cost 4) Fixed plan of implementation 5) Western origin 6) Short term result. 7) Ensuring profitability. 8) Creation of project teams.

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