MEANING OF SIX SIGMA
WHEN SIX SIGMA ?
HISTORY OF SIX SIGMA
KEY ELEMETS OF QUALITY
SRATAGY OF SIX SIGMA
IMPLEMENTATION OF SIX SIGMA
LEVELS OF SIX SIGMA
APPROCHES OF SIX SIGMA
Globalization and instant access to 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.
WHAT IS SIGMA ?
A term (Greek) used in statistics to represent
standard deviation from mean value, an indicator of the
degree of variation in a set of a process.
Sigma measures how far a given process deviates from
perfection. Higher sigma capability, better performance.
First, what it is not! It is not a secret society, a slogan or
certification not a metric like percentage .Six Sigma is a highly
disciplined process that helps us to focus on developing and
delivering near-perfect products and services.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. Six Sigma has changed the DNA of GE(General
Electric) — it is now the way we work — in everything we
do and in every product we design.
WHEN SHOULD SIX SIGMA BE
Its usage depends on the type of business. In general,
“If there are processes that generate a lot of negative
customer feedback, whether that customer is internal or
external, the components of Six Sigma should be considered
as a means to study and rectify the problem.”
Motorola company that invented Six Sigma.
The term “Six Sigma” was coined by Bill Smith, an
engineer with Motorola
Late 1970s - Motorola started experimenting with
problem solving through statistical analysis
1987 - Motorola officially launched it’s Six Sigma
Motorola saved more than $ 15 billion in the first 10
years of its Six Sigma effort
Key Elements of Quality...Customer, Process
There are three key elements of quality: customer, process and employee.
Everything we do to remain a world-class quality company focuses on
these three essential elements.
Customers are the center of GE’s 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!
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.
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. All GE employees are trained in the
strategy, statistical tools and techniques of Six
Sigma quality. Training courses are offered at
Quality Overview Seminars: basic Six Sigma
Team Training: basic tool introduction to equip
employees to participate on Six Sigma teams.
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.
Design for Six Sigma (DFSS) Training:
prepares teams for the use of statistical tools
to design it right the first time.
Quality is the responsibility of every employee.
Every employee must be involved, motivated
and knowledgeable if we are to succeed.
The Six Sigma Strategy
To achieve Six Sigma quality, a process must produce no more than
3.4 defects per million opportunities. An “opportunity” 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.
Key Concepts of Six Sigma
At its core, Six Sigma revolves around a few key concepts.
Critical to Quality: Attributes most important to the
Defect: Failing to deliver what the customer wants.
Process Capability: What your process can deliver.
Variation: What the customer sees and feels.
Stable Operations: Ensuring consistent, predictable
processes to improve.
Design for Six Sigma: Designing to meet customer needs and
Motorola saved $17 billion from 1986 to 2004, reflecting
hundreds of individual successes in all Motorola business
• Sales and marketing
• Product design
• Customer service
• Transactional processes
• Supply chain management
Financial – bank of America, GE Capital,HDFC,HSBC,American
ITES- ICICI One source, Accenture, Satyam PO, IBM Daksh
Hospitality- ITC Hotels, GRT Hotels, Apollo Hospitals
Manufacturing- GE Plastic, Johanson and Johnson, Motorola, Nokia,
Microsoft, Ford, Wipro, Nestle, Samsung, Samtle
Telecom- Bharti Cellular, Vodafone, Siemencs,Tata
IT- Wipro, Satyam,Acenture, Infosys, TCS, Birla soft
1. Six Sigma Champion: Champions undergo five days of training and
are taught how to manage projects and act as advisors to various
2. Green Belts: They undergo two weeks of training that includes
project-oriented tasks. They act as team members to the Six Sigma
project team. Their cooperation and involvement is necessary for
3. Black belts: They receive four weeks of trainings and are directly
involved in the implementation of Six Sigma Projects. They are the
project leaders and go through in-depth training on Six Sigma
approach and tools and work full time on the project.
4. Master Black Belts: These are the people who conduct Six Sigma
Training and also have on the job training and experience
APPROACHES OF SIX SIGMA
Analyze Improve Control
THIS IS ORGANIZATIONAL BASED
Analyze Design Verify
THIS IS BASED ON CUSTOMER NEEDS AND
This approach is undertaken to improve existing business process
1.Define high-level project goals and the current process.
2.Measure key aspects of the current process and collect
3.Analyze the data to verify cause-and-effect relationships.
Determine what the relationships are, and attempt to ensure
that all factors have been considered.
4.Improve or optimize the process based upon data analysis
using various tools.
5.Control to ensure that any deviations from target are
corrected before they result in defects.
This approach is undertaken when there is a need to create new design or
Define design goals that are consistent with customer demands and the
Measure and identify CTQs (characteristics that are Critical To
Quality), product capabilities, production process capability, and risks.
Analyze to develop and design alternatives, create a high-level design
and evaluate design capability to select the best design.
Design details, optimize the design, and plan for design verification.
This phase may require simulations.
Verify the design, set up pilot runs, implement the production process
and hand it over to the process owners.
DMADV is also known as DFSS, an abbreviation of "Design For Six
Defines a business process.
Measuring current process.
Identify root cause of the recurring
Improvements made to reduce
Keep check on future performance.
Define customer needs.
Measure customer needs &
Analyze options to meet customer
Model is deigned to meet customer
Model put through simulation tests
for verification .
Six Sigma is methodology used for:
•Aligning key business processes to achieve those
•Utilizing rigorous data analysis to minimize data
variation in those processes.
•Driving rapid and sustainable improvement to