Six sigma


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Six sigma

  1. 1. SIX SIGMA <ul><li>THE OFTEN USED SYMBOL </li></ul>
  2. 2. Sigma - the lower case Greek letter is used to represent standard deviation , a measure of variation. The term &quot;six sigma&quot; comes from the notion that if you have six standard deviations between the mean of a process and the nearest specification limit, you will make practically no items that exceed the specifications. What is Sigma? 
  3. 3. Agenda….. <ul><li>What is Six Sigma ? </li></ul><ul><li>It all begins…. at Motorola…. </li></ul><ul><li>Six Sigma: what is it? </li></ul><ul><li>-- Facts regarding Six Sigma culture…. </li></ul><ul><li>What is Six Sigma philosophy ? </li></ul><ul><li>Methodologies…. </li></ul><ul><li>Goals to be fulfilled…. </li></ul><ul><li>Why adopt Six Sigma techniques? </li></ul><ul><li>When to use Six Sigma technique ? </li></ul><ul><li>Which business function needs it ? </li></ul><ul><li>Education…… </li></ul><ul><li>Criticism facing it….... </li></ul><ul><li>Who else is using “ Six Sigma ”? </li></ul><ul><li>Some Results….. </li></ul><ul><li>Final summary…. </li></ul><ul><li>Bibliography </li></ul>
  4. 4. It all began at…..Motorola…. <ul><li>1987 Motorola introduced Quality Program now known as Six Sigma . </li></ul><ul><li>AlliedSignal and GE became early adopters of Six Sigma </li></ul><ul><li>G.E. Success…. </li></ul><ul><ul><li>Capital Services </li></ul></ul><ul><ul><li>Medical Systems (CAT Scan) </li></ul></ul><ul><li>Dozens of others…... </li></ul><ul><ul><li>Learned that the highest q uality producer is also the lowest cost producer. </li></ul></ul><ul><ul><li>Learned that the customers loyalty of a Six Sigma company is ~3 times that of the average company . </li></ul></ul>
  5. 5. “ Six Sigma” : What is it? <ul><li>A statistical measure of variation. </li></ul><ul><li>Full six sigma equals 99.9997% accuracy. </li></ul><ul><li>Methodology for improving key success. </li></ul><ul><li>A “tool box” of quality and management tools for </li></ul><ul><li>problem resolution. </li></ul><ul><li>A business philosophy focus on continuous improvement. </li></ul><ul><li>An organized process for structured analysis of data. </li></ul>
  6. 6. Facts Regarding “Six Sigma” Culture.. <ul><li>A culture that rapidly drives our key activities* to be defect free 999,997 times out of 1,000,000. </li></ul><ul><li>A culture that reduces defect level below 3.4 defects per (one) million opportunities (DPMO). </li></ul>
  7. 7.  Defects per Million opportunities Process Capability Sigma is a statistical unit of measure which Reflects process capability. Six Sigma as a Goal 2 3 4 5 6 308,537 66,807 6,210 233 3.4 .
  8. 8. <ul><li>We don’t know what we don’t know. </li></ul><ul><li>If we can’t measure it, we really don’t know much about it. </li></ul><ul><li>If we don’t know much about it, we can’t control it. </li></ul><ul><li>If we can’t control it, we are at the mercy of chance. </li></ul>What is the Six Sigma Philosophy? Focus on the Customer! S cience A rt M agic Six Sigma
  9. 9. METHODOLOGIES…….. <ul><li>Six Sigma has two key methodologies:– DMAIC and DMADV. </li></ul><ul><li>DMAIC is used to </li></ul><ul><li>improve an existing </li></ul><ul><li>business process. </li></ul><ul><li>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. </li></ul>
  10. 10. “ Methodology”:- <ul><li>D M A D V </li></ul><ul><li>D efine </li></ul><ul><li>M easure </li></ul><ul><li>A nalyze </li></ul><ul><li>D esign </li></ul><ul><li>V erify </li></ul><ul><li>D M A I C </li></ul><ul><li>D efine </li></ul><ul><li>M easure </li></ul><ul><li>A nalyze </li></ul><ul><li>I mprove </li></ul><ul><li>C ontrol </li></ul>
  11. 11. GOALS TO BE FULLFILLED…. Fullfill Customers Requirements Process Improvement Employee Involvement
  12. 12. Why to adopt six sigma? <ul><li>Defined process for problem solving. </li></ul><ul><li>Proven methodology to solve problem. </li></ul><ul><li>Consistency with result. </li></ul><ul><li>Focus on the “bottom line” which encourages credibility/support from the top of the organization. </li></ul><ul><li>Focus around target. </li></ul><ul><li>Reduces variations at all point. </li></ul>
  13. 13. When to use Six Sigma? <ul><li>Unknown causes/situations. </li></ul><ul><li>Problem at common place and not well defined. </li></ul><ul><li>When “broad spectrum” approach is inappropriate. </li></ul><ul><li>When problem solving method failed. </li></ul><ul><li>In a complex situation with many variable. </li></ul>
  14. 14. Which Business Function Needs It? 6 Sigma Methods Design PURCH . Marketing MFG . MAINT . QA ADMIN . SERVICE As long as there is a process that produces an output, whether it is a manufactured product, data, an invoice, etc…, we can apply the Six Sigma Breakthrough Strategy. For these processes to perform to a customer standard they require correct inputs!!!
  15. 15. EDUCATION Champions Team Members Quality Fundamentals/ Kaizen Now Green Belts Black Belts Master Black Belt 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. Deployment Champions Responsible for supporting the Deployment Strategy within Line of Business/Customer Segment or Golden Thread
  16. 16. <ul><li>Leadership Commitment, Competence, & Involvement </li></ul><ul><li>Methodology & Tools </li></ul><ul><ul><li>Data Driven </li></ul></ul><ul><ul><li>Statistically Validated </li></ul></ul><ul><li>Best People 100% Dedicated to Defect reductions. </li></ul><ul><li>Project Focused </li></ul><ul><ul><li>Aligned to Strategic Goals </li></ul></ul><ul><ul><li>High ROI Expectations </li></ul></ul>What Makes Six Sigma Different ?
  17. 17. Criticisms facing “ Six Sigma ”…. <ul><li>Criticism based on Originality. </li></ul><ul><li>Several studies indicates negative effects caused by “Six Sigma”. </li></ul><ul><li>Is to the great extent based on arbitrary standards. </li></ul>
  18. 18. Who else is using Six Sigma? <ul><li>Avery Dennison </li></ul><ul><li>Dow </li></ul><ul><li>DuPont </li></ul><ul><li>Foxboro </li></ul><ul><li>Sony </li></ul><ul><li>Deere & Co. (John Deere) </li></ul><ul><li>Delphi </li></ul><ul><li>Allied Signal </li></ul><ul><li>Ford </li></ul><ul><li>Johnson & Johnson </li></ul><ul><li>Caterpillar </li></ul><ul><li>Lockheed Martin </li></ul><ul><li>IBM </li></ul><ul><li>Citi Group (Visa/MasterCard) </li></ul><ul><li>G . E . </li></ul><ul><li>J.P. Morgan </li></ul><ul><li>ServiceMaster </li></ul>
  19. 19. Some Results… <ul><li>Motorola – 10 years; $11 Billion Savings </li></ul><ul><li>Allied Signal - $1.5 Billion estimated savings </li></ul><ul><li>General Electric – started efforts in 1995 </li></ul><ul><ul><li>1998: $1.2 Billion less i.e., $450 Million in costs…(savings), thus net benefits = $750 Million </li></ul></ul><ul><ul><li>1999 Annual Report: more than $2 Billion net benefits </li></ul></ul><ul><ul><li>2001: 6,000 projects completed; $3 Billion in savings </li></ul></ul>
  20. 20. Summary….. <ul><li>Customer focused….Driven by the Voice of the Customer. </li></ul><ul><li>Strong top management leadership, commitment, and involvement. Very Key! </li></ul><ul><li>Project orientation with measurable financial results. </li></ul><ul><li>Consistent methodology for all work. Time driven. </li></ul><ul><li>Time driven….more accountable. </li></ul><ul><li>Six Sigma - is a discipline not an “add on” or “program”. </li></ul><ul><li>- NOT a supply chain/manufacturing activity. </li></ul><ul><li>- NOT a new tools ….but new ways to apply them! </li></ul>
  21. 21. Bibliography…. <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>