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Presented by Group #10
Soundarya, Ramesh, Neetu Murali, Niharika Shetty
 Time, Cost, Quality - Choose any Two
 QA function to independently check up on and "control"
production
 Remove and rework defective product through inspection P/F
 Cost of quality, Optimal Inspection and Rejection
 99.9% Quality not good enough
 6-sigma --> less cost of failures
 Cost of failure underestimated
 Cost of Quality not understood
 Increased Quality Eliminates Waste.
 Quality is free
 20,000 incorrect prescriptions every year
 500 incorrect operations each week
 50 babies dropped at birth every day
 22,000 checks deducted from the wrong bank account each
hour
 32,000 missed heart beats per person each year
 Six Sigma is a business management strategy originally
developed by Motorola, USA in 1986.
 Seeks to improve the quality of process outputs
 by identifying and removing the causes of defects (errors)
and
 minimizing variability in manufacturing and business
processes.
 It uses a set of quality management methods,
 including statistical methods,
 and creates a special infrastructure of people within the
organization ("Black Belts", "Green Belts", etc.) who are
experts in these methods.
 Follows a defined sequence of steps and has quantified
financial targets (cost reduction or profit increase)
 Originated from terminology allied with manufacturing,
specifically terms associated with statistical modelling of
manufacturing processes.
 The maturity of a manufacturing process can be described by a
sigma rating indicating its yield, or the percentage of defect-
free products it creates.
 A six sigma process is one in which 99.99966% of the products
manufactured are statistically expected to be free of defects
 The goal is to ensure that no unacceptable parts are ever
passed on to a customer.
 A defect is anything that does not fall within the customer’s
tolerance limits
 Continuous process improvement to lower the process
variability so low that the upper and lower specifications are 6
standard deviations above and below the mean
3 Sigma
 Probability outside range =
(1 – 0.99865) * 2 = 0.0027
 Defect rate = 2,699 defects
per million opportunities
6 Sigma
 Probability part outside
range = 0.00000000198024
 Defect rate = 0.00197 dpm
(1.97 defects per BILLION)
3 6
 3 Sigma : 1/.0027 = 1 Every 370 Parts
 6 Sigma : 1/ 0.00000000198024
= 1 Every 504.9 Million Parts
 If We Make A Million Parts Per Year,
We Have:
 3σ : 2,699 defectives
 6σ : 0.0019732 Defectives
 Goal
 Define the project’s
purpose and scope and get
background on the process
and customer
 Output
 A clear statement of the
intended improvement
and how it is to be
measured
 A high-level map of the
process
 A list of what is important
to the customer
IMPROVE
CONTROL
MEASURE
ANALYZE
5 1
2
3
4
DEFINE
Define
Define Measure Analyze
Improve/
Innovate
Control
Product Flow
SIPOC
Process OutputInput CustomerSupplier
Planning Level Build Plan Doctors
Quality
Engineering
JCIT
Capacity
Requirements
Line Design
Compliance
Issues
Consulting
Improved Cycle
Times /WIP
Reductions
Reduced QNC’s
Improved Efficiency/
Improved Compliance
Shareholders
Quality
Regulatory
Receive
Finished Goods
Trigger
Cut Work Order
to Line
Sequence WO's
Through
Single Prod.
Line
Marketing
Forecast
Sterilize
Release
Product to
Finished Goods
EXISTING PROCESS FLOW
 Goal
 Focus the improvement
effort by gathering
information on the
current situation
 Output
 Data that pinpoints
problem location or
occurrence
 Baseline data on
current process sigma
 A more focused
problem statement
IMPROVE
CONTROL
MEASURE
ANALYZE
5
2
3
4
DEFINE
1
D M A I C
• The system to collect information is already established.
• 100% of Scrap forms from Work Orders for all products are
captured into a Yield Database.
• Scrap form (FORM633) has information as Lot Number, Date,
Shift, Product Number, Defect Code, Defect Description,
Potential Cause, Work Station ID, Catheter Number, Scrap
Quantity, and is signed by operator and supervisor / engineer.
• Yield Database has information as Product Number, Date, Lot
Number, Description, Lot Quantity, Reworks, Scrap in Line,
and Scrap in QA.
 Goal
 Identify deep root causes
and confirm them with
data
 Output
 A theory that has been
tested and confirmed
IMPROVE
CONTROL
MEASURE
ANALYZE
5
2
3
4
DEFINE
1
D M A I C
D-1237-02-SD-1237-01-S
1.34
1.32
1.30
1.28
1.26
1.24
1.22
1.20
1.18
1.16
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for Short in Ring
Shif t
D-1237-01-S D-1237-02-S
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for No Reading
Shif t
D-1237-01-S D-1237-02-S
0.98
1.08
1.18
1.28
1.38
1.48
1.58
1.68
1.78
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for Lasso out of Roundness
Shif t
D-1237-02-SD-1237-01-S
1.35
1.30
1.25
1.20
1.15
1.10
1.05
1.00
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for Damaged Ring
Shif t
D-1237-01-S D-1237-02-S
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for Damaged Spine Cover
Shif t
D-1237-01-S D-1237-02-S
1.0
1.1
1.2
1.3
PART NUMBER
AverageperWO
1
2
Multi-Vari Chart for Tip going Backwards
Shif t
StrategicAdvantage
•Advanced Applications
•High Interactivity
e.g. online forms
•Knowledge Mgt hub
•Primary Communications
Vehicle
•Content Rich
Tier 4
Transforming
Features
Tier 1
Basic Presence
Basic
Company
Information
Tier 3
Integrating
•Communities
•Advanced Search
•Value-add tools
•Moderate Interactivity
•Personalisation
•Extensive information
•Basic Search
Tier 2
Searching
Analyze
Analyze
Forecasted Demand
08/15/05- 07/15/05
Month
GrandTotal
121086420
40000
39000
38000
37000
36000
35000
34000
33000
32000
31000
S 2661.11
R-Sq 7.0%
R-Sq(adj) 0.0%
Fitted Line Plot
Grand Total = 34329 + 193.1 Month
7% Increase in demand/year
 Goal
 Develop, pilot, and
implement solutions that
address root causes.
 Output
 Identification of planned,
tested actions that should
eliminate or reduce the
impact of the identified root
causes
CONTROL
MEASURE
ANALYZE
5
2
3
DEFINE
1
FMEA
IMPROVE
4
D M A I C
• Improvement team created with members of Quality,
Production, Engineering and R&D areas to propose and
evaluate ideas.
• Brainstorming tool was used to gather ideas on how to solve
the problems identified.
• Ideas were evaluated per following criteria: feasible, high
impact, easy, low cost, and quick.
• Following tables summarizes solutions agreed by consensus of
the improvement team.
AnalyzeMeasureDefine Control
Used Japan Custom line as a pilot
- Medium size production line
- Minimize the production Impact
– Kanbans Cards
– Signals, Lights
– Performance Measures
Improve/
 Goal
 Use data to evaluate both the
solutions and the plans
 Validate that all changes adhere to
all operating company change
control, GMP, and compliance
requirements
 Maintain the gains by
standardizing processes
 Outline next steps for on-going
improvement
 Output
 Before-and-After analysis
 Monitoring system
 Completed documentation of
results, learnings, and
recommendations
IMPROVE
CONTROL
MEASURE
ANALYZE
5
2
3
4
DEFINE
1
D M A I C
• All new tooling, processes, clarifications, and visual aids
documented in PIs.
• Creation of MOPXXX with all the quality criteria for Variable
Lasso Deflection and Contraction performance.
• MOP003 updated with reference to new created MOPXXX.
• PU quality criteria documented in WSS001 and available in
QA workbenches.
D M A I C
Work Orders
Built
Yiel
d Goal
Scrap
Produced
Yiel
d Actual
 Improvement must be continuous, but individual initiatives and
project teams come to an end.
 Learn when it’s time to say goodbye.
 Effective project closure weaves together the themes of:
 Project purpose.
 Improvement methods.
 Team skills and structures.
 Develop managerial systems to capture learnings and enable the
organization to address system issues.
 Documentation and recognition are two critical aspects of project
team closure.
 Celebrate!
• DEFINE – Develop the Business Case, Scope & Charter the Project
• MEASURE – Gather & Quantify Design Inputs (Customer, Technical, Business,
Regulatory)
• ANALYZE – Develop and Investigate Conceptual Designs
• DESIGN – Develop Detailed Product/Service/Process Designs
• VERIFY/VALIDATE – Confirm design outputs meet design input requirements and
ensure specifications conform with intended uses and users; Scale-up manufacture and
release the product or scale-up and implement the new process; Finally, transfer to
process owners
Verify/
Validate
DesignAnalyzeMeasureDefine
 It is not quick fix or recipe for success
 It requires training at all managerial levels
 It requires culture change in the whole organization
 Implementation tend to be uneven and lapse occur frequently
 People must not fear giving “bad news”
 Design is critical & yet many it organization continue to go
straight from poor requirements into coding without the
benefits of even one design review
MUMBAI
DABBAWALAS
REDEFINE SIX
SIGMA THEORY
 Nutan Mumbai Tiffin Box Suppliers Association
 History : Started in 1880
 Charitable trust : Registered in 1956
 Avg. Literacy Rate : 8th Grade Schooling
 Total area coverage : 60 Kms
 Employee Strength : 5000
 Number of Tiffin's : 2,00,000 Tiffin Boxes (i.e 4,00,000
transactions every day.)
 Time taken : 3 hrs
 Error Rate : 1 in 16 million transactions
 Technological Backup : Nil.
 Cost of service : Rs. 300/month ($ 6.00/month)
 Six Sigma performance (99.999999)
 Standard price for all (Weight, Distance, Space)
 Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 (i.e Rs.
36 crore p.a.)
 “No strike” record as each one a share holder •Earnings -5000
to 6000 p.m.
 Diwali bonus: one month’s from customers.
 Zero % fuel Zero % investment
 Zero % modern technology Zero % Disputes
 99.9999% performance100 % Customer Satisfaction
 Initial Coding System used colored threads to mark 7
Islands
 Then Utilized thrown away cotton waste from tailors
 Now using color markers:
 E :: Code for Dabbawala Street at residential
station
 VLP :: Residential Station Ville Parle
 3 :: Code for Destination station.
 E.G :: Church gate
 9 :: Code for Dabbawala at Destination.
 Ex :: Express towers ( Building name)
 12 :: Floor no. in the building.
Pick up Dabba from
Residence/Caterer
and bring it to
Andheri Station.
*Journey in Local
Train*
Unloading and
Sorting at
Destination Station.
Delivery to
respective
customers.
Collection of Empty
Dabba.
Sorting at
Destinations station.
Returning Dabba to
Residence/Caterer.
9:30 A.M- 10:30 A.M 10:34- 11:20 A.M 11:20- 12:30 P:M
12:30 - 1:00 P.M1:15- 2:30 P.M2:48- 3:30P:M
3:30- 4:40 P.M
 In 1998, Forbes Global magazine conducted a quality
assurance study on the Dabbawalas' operations
 Gave Rating of 99.999999
 Dabbawalas made one error in six million transactions.
 Stood High along with MNC’s like Motorola, GE etc…
 Dabbawalas got ISO 9001- 2000 for Excellence in service
 World record in Best Time management.
 Name in “GUINESS BOOK of World Records”.
 Registered with Ripley's “ believe it or not”.
 Invited for marriage of Hon. Prince Charles of England on 9th
April, 2005
 Documentary called “Dabbawalas, Mumbai's unique lunch
service” - by two Dutch filmmakers in 1998.

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Six Sigma

  • 1. Presented by Group #10 Soundarya, Ramesh, Neetu Murali, Niharika Shetty
  • 2.  Time, Cost, Quality - Choose any Two  QA function to independently check up on and "control" production  Remove and rework defective product through inspection P/F  Cost of quality, Optimal Inspection and Rejection
  • 3.  99.9% Quality not good enough  6-sigma --> less cost of failures  Cost of failure underestimated  Cost of Quality not understood  Increased Quality Eliminates Waste.  Quality is free
  • 4.
  • 5.  20,000 incorrect prescriptions every year  500 incorrect operations each week  50 babies dropped at birth every day  22,000 checks deducted from the wrong bank account each hour  32,000 missed heart beats per person each year
  • 6.  Six Sigma is a business management strategy originally developed by Motorola, USA in 1986.  Seeks to improve the quality of process outputs  by identifying and removing the causes of defects (errors) and  minimizing variability in manufacturing and business processes.  It uses a set of quality management methods,  including statistical methods,  and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods.
  • 7.  Follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase)  Originated from terminology allied with manufacturing, specifically terms associated with statistical modelling of manufacturing processes.  The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect- free products it creates.  A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects
  • 8.  The goal is to ensure that no unacceptable parts are ever passed on to a customer.  A defect is anything that does not fall within the customer’s tolerance limits  Continuous process improvement to lower the process variability so low that the upper and lower specifications are 6 standard deviations above and below the mean
  • 9. 3 Sigma  Probability outside range = (1 – 0.99865) * 2 = 0.0027  Defect rate = 2,699 defects per million opportunities 6 Sigma  Probability part outside range = 0.00000000198024  Defect rate = 0.00197 dpm (1.97 defects per BILLION) 3 6
  • 10.  3 Sigma : 1/.0027 = 1 Every 370 Parts  6 Sigma : 1/ 0.00000000198024 = 1 Every 504.9 Million Parts  If We Make A Million Parts Per Year, We Have:  3σ : 2,699 defectives  6σ : 0.0019732 Defectives
  • 11.
  • 12.  Goal  Define the project’s purpose and scope and get background on the process and customer  Output  A clear statement of the intended improvement and how it is to be measured  A high-level map of the process  A list of what is important to the customer IMPROVE CONTROL MEASURE ANALYZE 5 1 2 3 4 DEFINE
  • 14. Define Measure Analyze Improve/ Innovate Control Product Flow SIPOC Process OutputInput CustomerSupplier Planning Level Build Plan Doctors Quality Engineering JCIT Capacity Requirements Line Design Compliance Issues Consulting Improved Cycle Times /WIP Reductions Reduced QNC’s Improved Efficiency/ Improved Compliance Shareholders Quality Regulatory Receive Finished Goods Trigger Cut Work Order to Line Sequence WO's Through Single Prod. Line Marketing Forecast Sterilize Release Product to Finished Goods EXISTING PROCESS FLOW
  • 15.  Goal  Focus the improvement effort by gathering information on the current situation  Output  Data that pinpoints problem location or occurrence  Baseline data on current process sigma  A more focused problem statement IMPROVE CONTROL MEASURE ANALYZE 5 2 3 4 DEFINE 1
  • 16. D M A I C • The system to collect information is already established. • 100% of Scrap forms from Work Orders for all products are captured into a Yield Database. • Scrap form (FORM633) has information as Lot Number, Date, Shift, Product Number, Defect Code, Defect Description, Potential Cause, Work Station ID, Catheter Number, Scrap Quantity, and is signed by operator and supervisor / engineer. • Yield Database has information as Product Number, Date, Lot Number, Description, Lot Quantity, Reworks, Scrap in Line, and Scrap in QA.
  • 17.  Goal  Identify deep root causes and confirm them with data  Output  A theory that has been tested and confirmed IMPROVE CONTROL MEASURE ANALYZE 5 2 3 4 DEFINE 1
  • 18. D M A I C D-1237-02-SD-1237-01-S 1.34 1.32 1.30 1.28 1.26 1.24 1.22 1.20 1.18 1.16 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for Short in Ring Shif t D-1237-01-S D-1237-02-S 1.00 1.05 1.10 1.15 1.20 1.25 1.30 1.35 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for No Reading Shif t D-1237-01-S D-1237-02-S 0.98 1.08 1.18 1.28 1.38 1.48 1.58 1.68 1.78 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for Lasso out of Roundness Shif t D-1237-02-SD-1237-01-S 1.35 1.30 1.25 1.20 1.15 1.10 1.05 1.00 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for Damaged Ring Shif t D-1237-01-S D-1237-02-S 1.00 1.05 1.10 1.15 1.20 1.25 1.30 1.35 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for Damaged Spine Cover Shif t D-1237-01-S D-1237-02-S 1.0 1.1 1.2 1.3 PART NUMBER AverageperWO 1 2 Multi-Vari Chart for Tip going Backwards Shif t
  • 19. StrategicAdvantage •Advanced Applications •High Interactivity e.g. online forms •Knowledge Mgt hub •Primary Communications Vehicle •Content Rich Tier 4 Transforming Features Tier 1 Basic Presence Basic Company Information Tier 3 Integrating •Communities •Advanced Search •Value-add tools •Moderate Interactivity •Personalisation •Extensive information •Basic Search Tier 2 Searching Analyze
  • 20. Analyze Forecasted Demand 08/15/05- 07/15/05 Month GrandTotal 121086420 40000 39000 38000 37000 36000 35000 34000 33000 32000 31000 S 2661.11 R-Sq 7.0% R-Sq(adj) 0.0% Fitted Line Plot Grand Total = 34329 + 193.1 Month 7% Increase in demand/year
  • 21.  Goal  Develop, pilot, and implement solutions that address root causes.  Output  Identification of planned, tested actions that should eliminate or reduce the impact of the identified root causes CONTROL MEASURE ANALYZE 5 2 3 DEFINE 1 FMEA IMPROVE 4
  • 22. D M A I C • Improvement team created with members of Quality, Production, Engineering and R&D areas to propose and evaluate ideas. • Brainstorming tool was used to gather ideas on how to solve the problems identified. • Ideas were evaluated per following criteria: feasible, high impact, easy, low cost, and quick. • Following tables summarizes solutions agreed by consensus of the improvement team.
  • 23. AnalyzeMeasureDefine Control Used Japan Custom line as a pilot - Medium size production line - Minimize the production Impact – Kanbans Cards – Signals, Lights – Performance Measures Improve/
  • 24.  Goal  Use data to evaluate both the solutions and the plans  Validate that all changes adhere to all operating company change control, GMP, and compliance requirements  Maintain the gains by standardizing processes  Outline next steps for on-going improvement  Output  Before-and-After analysis  Monitoring system  Completed documentation of results, learnings, and recommendations IMPROVE CONTROL MEASURE ANALYZE 5 2 3 4 DEFINE 1
  • 25. D M A I C • All new tooling, processes, clarifications, and visual aids documented in PIs. • Creation of MOPXXX with all the quality criteria for Variable Lasso Deflection and Contraction performance. • MOP003 updated with reference to new created MOPXXX. • PU quality criteria documented in WSS001 and available in QA workbenches.
  • 26. D M A I C Work Orders Built Yiel d Goal Scrap Produced Yiel d Actual
  • 27.  Improvement must be continuous, but individual initiatives and project teams come to an end.  Learn when it’s time to say goodbye.  Effective project closure weaves together the themes of:  Project purpose.  Improvement methods.  Team skills and structures.  Develop managerial systems to capture learnings and enable the organization to address system issues.  Documentation and recognition are two critical aspects of project team closure.  Celebrate!
  • 28.
  • 29. • DEFINE – Develop the Business Case, Scope & Charter the Project • MEASURE – Gather & Quantify Design Inputs (Customer, Technical, Business, Regulatory) • ANALYZE – Develop and Investigate Conceptual Designs • DESIGN – Develop Detailed Product/Service/Process Designs • VERIFY/VALIDATE – Confirm design outputs meet design input requirements and ensure specifications conform with intended uses and users; Scale-up manufacture and release the product or scale-up and implement the new process; Finally, transfer to process owners Verify/ Validate DesignAnalyzeMeasureDefine
  • 30.
  • 31.
  • 32.  It is not quick fix or recipe for success  It requires training at all managerial levels  It requires culture change in the whole organization  Implementation tend to be uneven and lapse occur frequently  People must not fear giving “bad news”  Design is critical & yet many it organization continue to go straight from poor requirements into coding without the benefits of even one design review
  • 33.
  • 35.  Nutan Mumbai Tiffin Box Suppliers Association  History : Started in 1880  Charitable trust : Registered in 1956  Avg. Literacy Rate : 8th Grade Schooling  Total area coverage : 60 Kms  Employee Strength : 5000  Number of Tiffin's : 2,00,000 Tiffin Boxes (i.e 4,00,000 transactions every day.)  Time taken : 3 hrs
  • 36.  Error Rate : 1 in 16 million transactions  Technological Backup : Nil.  Cost of service : Rs. 300/month ($ 6.00/month)  Six Sigma performance (99.999999)  Standard price for all (Weight, Distance, Space)  Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 (i.e Rs. 36 crore p.a.)  “No strike” record as each one a share holder •Earnings -5000 to 6000 p.m.  Diwali bonus: one month’s from customers.
  • 37.  Zero % fuel Zero % investment  Zero % modern technology Zero % Disputes  99.9999% performance100 % Customer Satisfaction
  • 38.  Initial Coding System used colored threads to mark 7 Islands  Then Utilized thrown away cotton waste from tailors  Now using color markers:  E :: Code for Dabbawala Street at residential station  VLP :: Residential Station Ville Parle  3 :: Code for Destination station.  E.G :: Church gate  9 :: Code for Dabbawala at Destination.  Ex :: Express towers ( Building name)  12 :: Floor no. in the building.
  • 39. Pick up Dabba from Residence/Caterer and bring it to Andheri Station. *Journey in Local Train* Unloading and Sorting at Destination Station. Delivery to respective customers. Collection of Empty Dabba. Sorting at Destinations station. Returning Dabba to Residence/Caterer. 9:30 A.M- 10:30 A.M 10:34- 11:20 A.M 11:20- 12:30 P:M 12:30 - 1:00 P.M1:15- 2:30 P.M2:48- 3:30P:M 3:30- 4:40 P.M
  • 40.  In 1998, Forbes Global magazine conducted a quality assurance study on the Dabbawalas' operations  Gave Rating of 99.999999  Dabbawalas made one error in six million transactions.  Stood High along with MNC’s like Motorola, GE etc…  Dabbawalas got ISO 9001- 2000 for Excellence in service
  • 41.  World record in Best Time management.  Name in “GUINESS BOOK of World Records”.  Registered with Ripley's “ believe it or not”.  Invited for marriage of Hon. Prince Charles of England on 9th April, 2005  Documentary called “Dabbawalas, Mumbai's unique lunch service” - by two Dutch filmmakers in 1998.