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Six Sigma Way


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This slide show provides a brief introduction to six sigma process.

Published in: Economy & Finance, Business
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Six Sigma Way

  1. 1. Presentation by Prof.K.Prabhakar [email_address] Six sigma Way
  2. 2. What is so much new about 6σ <ul><li>Is it a new concept ? </li></ul><ul><li>Is it a new statistical idea? </li></ul><ul><li>Is it a new fad? </li></ul><ul><li>Is it old wine in new bottle or new wine in old bottle? </li></ul><ul><li>Why we need this new concept when we have ISO 9001 and TQM, TCM etc. </li></ul>
  3. 3. What is so much new about 6σ <ul><li>Is it a new concept ? No </li></ul><ul><li>Is it a new statistical idea? No </li></ul><ul><li>Is it a new fad? No </li></ul><ul><li>Is it old wine in new bottle or new wine in old bottle? No </li></ul><ul><li>Why we need this new concept when we have ISO 9001 and TQM, TCM etc ? They never produced desired effect on profitability </li></ul>
  4. 4. Dimensions of Six Sigma <ul><li>Variation and Customer Requirement </li></ul><ul><li>Traditionally we describe the products and services in terms of averages. </li></ul><ul><li>Average time to deliver the product. However we miss two things, the customer , and his or her requirements </li></ul><ul><li>It has been found that 40% time of employees is wasted in explaining why the product is not up to specification. </li></ul><ul><li>Domino Pizza’s Policy : If the customer is not provided with delivery with in the specified time, the Pizza is given free to the customer. </li></ul>
  5. 5. 2ed Dimension of Six Sigma <ul><li>Translation of variation in to measurements </li></ul><ul><li>Defects per million Opportunities </li></ul><ul><li>How many defects occur compared to the number of opportunities there are in the product or service for things to go wrong. </li></ul><ul><li>Any thing that does not meet customer requirement is a defect </li></ul><ul><li>rude clerk </li></ul><ul><li>A bad paint job is a defect </li></ul><ul><li>You have to measure customer requirements and calculate the number of defects in the process and outputs </li></ul>
  6. 6. 3ed Dimension of Six Sigma <ul><li>Tracking the X’s and Y’s </li></ul><ul><li>It is similar to MUCEE( Mutually exclusive and collectively exhaustive) at Mc Kinsey, that is you have to define any issue clearly with all boundaries. </li></ul><ul><li>“ X” is the cause of a problem or one of the many variables affecting a business process. </li></ul><ul><li>“ Y” is the outcome of the process for example for a a bakery the quality of flour used and the temperature of oven are the key “X’s and the loaf and the satisfaction of hungry customer is the key “Y’s. </li></ul>
  7. 7. Some X’s and Y’s <ul><li>Actions towards goals </li></ul><ul><li>Quality of workdone </li></ul><ul><li>Cycle time </li></ul><ul><li>Staffing level </li></ul><ul><li>Incorrect information </li></ul><ul><li>Strategic Goals achieved </li></ul><ul><li>Level of customer satisfaction </li></ul><ul><li>on-time delivery </li></ul><ul><li>Time to answer phone </li></ul><ul><li>Defects produced </li></ul>
  8. 8. We will take a short excursion to Statistics <ul><li>Normal Distribution (you may have to go the following websites to have some understanding of Normal distribution). </li></ul><ul><li>We need to understand Normal distribution basics. </li></ul><ul><li> </li></ul><ul><li>   </li></ul>
  9. 9. Many Managers do not have an understanding of the key X and Y <ul><li>They use their past experience </li></ul><ul><li>They believe in luck </li></ul><ul><li>Six Sigma Managers constantly expect problems and respond to changes. </li></ul>
  10. 10. Six components of Six Sigma <ul><li>Genuine focus on the customer </li></ul><ul><li>Data and fact driven management </li></ul><ul><li>Process focus, Management and improvement </li></ul><ul><li>Proactive management </li></ul><ul><li>Boundaryless organization </li></ul><ul><li>Drive for perfection, tolerate failure. </li></ul>
  11. 11. 1)Genuine Focus on the Customer <ul><li>Few companies have understood the the customer processes and needs </li></ul><ul><li>We call it VOICE OF THE CUSTOMER </li></ul><ul><li>AIR TRAVEL, WASHING MACHINES BY LG, SCORPIO CARS, SHANTHA BIOTECH, SONY WALKMAN (All organizations are from India) </li></ul>
  12. 12. 2)Data and fact driven Management <ul><li>Most of the decisions are based on intuition or gutlevel reactions due to information over load. </li></ul><ul><li>How are we really doing? You have to have a thorough understanding of every dimension of the issue. </li></ul><ul><li>How does that compare to where we want to be? </li></ul><ul><li>What data do I need to collect to answer these questions? </li></ul>
  13. 13. 3) Process Focus, Management, Improvement <ul><li>Process and Process and Process </li></ul><ul><li>Real world things happen in a process not as an isolated events. </li></ul><ul><li>Delivering real value to the customer is the key to performance. We need to find the core processes on which the customer satisfaction is build </li></ul>
  14. 14. 4)Proactive Management <ul><li>It is being creative about what is likely to happen in future. </li></ul>
  15. 15. Boundary less Collaboration <ul><li>Coined by General Electric it refers to the job of smashing the barriers that block the flow of ideas ad action up and down and across the organization. </li></ul><ul><li>Billions of dollars are wasted by bickering bureaucracies inside organizations fighting one another instead of working for one common cause. People have to learn about their role in big picture. </li></ul>
  16. 16. Drive for perfection and Tolerate Failure <ul><li>Continual Vs continuous </li></ul><ul><li>Spending time and money on collecting data may appear risky at times. However, it will be most useful way to do things. </li></ul><ul><li>Occasional set backs are build in to the system. We have to be prepared for it. </li></ul>
  17. 17. We are all doing it and learned it that way? So what is new? <ul><li>It is the practice of six sigma makes all the difference. </li></ul>
  18. 18. THREE WAYS TO 6 σ Process Improvement Process Design and Redesign Process Management
  19. 19. Process Improvement <ul><li>It refers to strategy of finding solutions to eliminate the root causes of performance problems in processes that already exist in the organization. Process Improvement efforts seek to fix problems by eliminating the causes of variation in the process while having the basic process intact. We need to find critical causes X’s and outcomes Y’s. </li></ul>
  20. 20. DMAIC <ul><li>Define the problem and what the customers require </li></ul><ul><li>Measure the defects and process operation </li></ul><ul><li>Analyze the data and discover causes of the problem </li></ul><ul><li>Improve the process to remove causes of defects </li></ul><ul><li>Control the process to make sure defects don't recur. </li></ul>
  21. 21. Process Design and Redesign <ul><li>When business chooses to replace rather than repair, one or more core processes </li></ul><ul><li>When a leadership or Six Sigma team discovers that simply improving an existing process does not deliver the quality </li></ul><ul><li>when a business identifies an opportunity to offer an entirely new product or service. </li></ul>
  22. 22. DMADV <ul><li>Define customer requirements and goals for the process/product/service </li></ul><ul><li>Measure and match performance to customer requirements </li></ul><ul><li>Analyze and assess processes/products/services </li></ul><ul><li>Design and implement new processes/products/services </li></ul><ul><li>Verify results and maintain performance </li></ul>
  23. 23. Process Management <ul><li>Process Management means that a focus on managing processes across the organization replaces managing individual functions by different and sometimes competing internal departments. </li></ul>
  24. 24. Key areas in Process Management <ul><li>Defining processes, key customer requirements and process owners </li></ul><ul><li>Measuring performance to customer requirements and key process indicators </li></ul><ul><li>Analyzing data to enhance measures and refine the process management mechanisms. </li></ul><ul><li>Controlling performance through ongoing monitoring of inputs operations/outputs and responding quickly to problems </li></ul><ul><li>It deepens the knowledge of organizations processes, people and customers. </li></ul>
  25. 25. Meet the players: It build a totally new Culture in the organization <ul><li>Leadership group </li></ul><ul><li>Project sponsor </li></ul><ul><li>Implementation Leader </li></ul><ul><li>Six Sigma Coach (Master Black belt) </li></ul><ul><li>Team Leader/Project Leader(Black belt/greenbelt) </li></ul><ul><li>Team members </li></ul><ul><li>Process owner </li></ul>
  26. 26. Thank you and any Questions <ul><li>Please send you questions to </li></ul><ul><li>[email_address] </li></ul>