Total Quality Management


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Total Quality Management

  1. 1. Six Sigma – past, present and future SIX SIGMA – PAST, PRESENT AND FUTURE Author: Dr. G. Karuppusami Standards in Action 1 n
  2. 2. Six Sigma – past, present and futureWhat is Six Sigma Six Sigma is the measure of quality that strives for near perfection. It is a disciplined, data-driven methodology focused on eliminating defects. A Six Sigma defect is defined as anything that falls outside of a customers specifications. Six Sigma is a reference to a statistical measuring system, equivalent to just 3.4 defects per every million opportunities (Snee, 2003). Standards in Action 2 n
  3. 3. Six Sigma – past, present and futureWHY SIX SIGMA • Intense competitive pressures – especially from rapid globalization. • Greater consumer demand for high quality products and services, little tolerance for failures of any type. • Top management (and stockholder) recognition of the high costs of poor quality. • The availability and accessibility of large data bases and the increasing ability to explore, understand, and use the data. Standards in Action 3 n
  4. 4. Six Sigma – past, present and futureSigma and % accuracy Defects per Million % Accuracy Opportunities (DPMO) One Sigma 691,500 30.85% Two Sigma 308,500 69.15% Three Sigma 66,810 93.32% Four Sigma 6,210 99.38% Five Sigma 233 99.977% Six Sigma 3.4 99.9997% Seven Sigma 0.020 99.999998% Standards in Action 4 n
  5. 5. Six Sigma – past, present and futureCost of poor quality Fig. 1 Cost of poor quality versus Sigma level Cost of poor quality as % of earnings 30% 20% 10% 0% 3 4 5 6 7 Sigma Level Standards in Action 5 n
  6. 6. Six Sigma – past, present and futureInventor of Six Sigma Motorola is known for its cool cell phones, but the companys more lasting contribution to the world is the quality-improvement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of ‘Six Sigma’. Standards in Action 6 n
  7. 7. Six Sigma – past, present and futureSix Sigma at Motorola Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including: – Sales and Marketing – Product design – Manufacturing – Customer service – Transactional processes – Supply chain management Standards in Action 7 n
  8. 8. Six Sigma – past, present and future General Electric: What Is Six Sigma? “First, what it is not. It is not a secret society, a slogan, or a cliché. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services” – Saved $750 million by the end of 1998 – Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity – Streamlined contract review process, leading to faster completion of deals and annual savings of $1 million Standards in Action 8 n
  9. 9. Six Sigma – past, present and futureHoneywell: Six Sigma Plus “Six Sigma is one of the most potent strategies ever developed to accelerate improvements in processes, products, and services, and to radically reduce manufacturing and/or administrative costs and improve quality. It achieves this by relentlessly focusing on eliminating waste and reducing defects and variations. – Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999. – Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months. – Increased market value by a compounded 27% per year through fiscal year 1998. Standards in Action 9 n
  10. 10. Six Sigma – past, present and futureSelecting the right projects for SIX SIGMA • Assure that the importance of the projects is evident or can be readily demonstrated. • Assure the projects are viable and doable in a short time. • Assure that the success of the projects can be readily quantified. Standards in Action 10 n
  11. 11. Six Sigma – past, present and future • Own vision, direction, integration, results Executive Leadership • Lead change Six Sigma Team • Project owner • Implement solutions • Part-time • Black Belt managers • Help Black Belts Project Champions Green Belts Black Belts Master Black• Full time Belts• Train and coach • Devote 50% - 100% of time to Black Belt activities Black and Green Belts • Facilitate and practice problem solving• Statistical problem solving experts • Train and coach Green Belts and project teams Standards in Action 11 n
  12. 12. Six Sigma – past, present and futureSix Sigma Methodology (DMAIC) Define Measure Control Analyse Improve Standards in Action 12 n
  13. 13. Six Sigma – past, present and futureDMAIC Steps1. Define 1. Define 2. Measure 3. Analyze 4. Improve 5. Control • Identify projects that are measurable • Define projects including the demands of the customer and the content of the internal process. • Develop team charter • Define process map Standards in Action 13 n
  14. 14. Six Sigma – past, present and futureDMAIC Steps2. Measure 5.0 Control 1. Define 2. Measure 3. Analyze 4. Improve 5. Control • Define performance standards • Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. • Identify all potential causes for such problems. Standards in Action 14 n
  15. 15. Six Sigma – past, present and futureDMAIC Steps3. Analyse 1. Define 2. Measure 3. Analyse 4. Improve 5. Control • Establish process capability • Define performance objectives • Identify variation sources Tools for analysis  Process Mapping 3.0 Analyze Failure Mode & Effect Analysis   Statistical Tests  Design of Experiments  Control charts  Quality Function Deployment (QFD) Standards in Action 15 n
  16. 16. Six Sigma – past, present and futureDMAIC Steps4. Improve 1. Define 2. Measure 3. Analyse 4. Improve 5. Control • Screen potential causes • Discover variable relationships among causes and effects • Establish operating tolerances • Pursue a method to resolve and ultimately eliminate problems. It is also a phase to explore the solution how to change, fix and modify the process. • Carryout a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in achieving the targeted values. Standards in Action 16 n
  17. 17. Six Sigma – past, present and future DMAIC Steps 5. Control 1. Define 2. Measure 3. Analyse 4. Improve 5. Control • Monitor the improved process continuously to ensure long term sustainability of the new developments. • Share the lessons learnt • Document the results and accomplishments of all the improvement activities for future reference. Standards in Action 17 n
  18. 18. Six Sigma – past, present and futureSix Sigma – Case study • A dabbawala is a person in the Indian city of Mumbai whose job is to carry and deliver freshly made food from home in lunch boxes to office workers. • Dabbawalas pick up 175,000 lunches from homes and deliver to their customers everyday. • Only one mistake is made in every 6 million deliveries. • Accuracy rating is 99.999999. More than Six Sigma. Standards in Action 18 n
  19. 19. Six Sigma – past, present and futureSix Sigma - First Generation (SSG 1) • The era ‘1986 to 1990’ is referred to as the first generation of Six Sigma, or SSG 1 for short. • Pioneered at Motorola • Statistical approach • Measured Defects Per Million Opportunities (DPMO) • Focused on: – Elimination of defects – Improving product and service quality – Reducing cost – Continuous process improvement Standards in Action 19 n
  20. 20. Six Sigma – past, present and future Six Sigma - Second Generation (SSG 2) • In the 1990s, the focus of Six Sigma shifted from product quality to business quality. General Electric Corp. ushered in the second generation of Six Sigma, or SSG 2 as it is known. • Six Sigma became a business-centric system of management. • Strong measurement on bringing dollars to the bottom line. • High potential candidates were selected as Black Belts. Standards in Action 20 n
  21. 21. Six Sigma – past, present and futureSix Sigma - Third Generation (Gen III) • Developed after the year 2000. • Gen III can show companies how to deliver products or services that, in the eyes of customers, have real value. • Combines Lean Manufacturing Techniques and Six Sigma. Termed as Lean Six Sigma. • Korean steel maker Posco and electronics maker Samsung has begun a Gen III programme. Standards in Action 21 n
  22. 22. Six Sigma – past, present and futureConclusion • A gauge of quality and efficiency, Six Sigma is also a measure of excellence. Embarking on a Six Sigma program means delivering top-quality service and products while virtually eliminating all internal inefficiencies (Dedhia, 2005). • A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the companys other service processes (Lucas, 2002). • The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management. Standards in Action 22 n
  23. 23. Six Sigma – past, present and futureReferences 1 Dedhia, N.S. (2005), “Six Sigma Basics”, Total Quality Management, Vol.16, No.5, pp. 567-574 2 GE website (accessed on 20/Feb/2007) 3 Harry, M., and Crawford. D. (2005), “Six Sigma – The next generation”, Machine Design, February Issue, pp. 126-132 4 Lucas, J.M. (2002), “The essential Six-Sigma”, Quality Progress, January, pp. 27-31 5 Motorola website (accessed on 20/Feb/2007) 6 Snee, R. D. and Hoerl, R.W. (2003), Leading Six Sigma: A Step by Step Guide Based on Experience at GE and Other Six Sigma Companies, Prentice-Hall, New Jersey 7 Thawani, S. (2004), “Six Sigma – Strategy for organizational excellence”, Total Quality Management, Vol.15 No.5-6, pp. 655-664 Standards in Action 23 n
  24. 24. Six Sigma – past, present and future Thank You! Standards in Action 24 n