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Professor & Lawyer Puttu Guru Prasad , VVIT, Nambur, 9394969898, puttuvvit@gmail.com
Professor & Lawyer Puttu Guru Prasad , VVIT,
Nambur, 9394969898, puttuvvit@gmail.com
WELCOME TO SIX
SIGMA
PRESENTATION
DISSATISFY YOUR
CUSTOMER
DISSATISF
Y
• Satisfying the customer
through quality
products and services
only but trying
maintain long term
relationship through
perfection in every
thing they do to be
world class
DEFECT
• It is better to
eliminate defect in
our product &
service delivery
quality rather
than trying to
minimize final
defective out put
CUT THROAT
COMPETITION
• We need not only satisfy
our external customer
but all
employee, shareholder,
supplier, etc.
• Need to have quality
product & service at
lower possible cost &
zero defect
TQ
M
• Total Quality Management
means that the organization's
culture is defined by and
supports the constant attainment
of customer satisfaction through
an integrated system of
tools, techniques, and training. This
involves the continuous
improvement of organizational
processes, resulting in high
quality products and services.
WHAT IS SIX SIGMA
WHAT’S IN A
NAME?• Six sigma is represent a statistical
measure and a management
philosophy
• The Greek letter Sigma, used
mathematically to designate
standard deviation is the measure
used to determine how good or
bad the performance of a process is
• Means how many mistake company
commits while accomplishing task
SIX SIGMA = PERFECTION
• 1 Six Sigma = 700,000 Defects/
million
opportunities
• 2 Six Sigma = 3000,000Mistake/
million opportunities
• 3&4 Six Sigma = 67,000 & 6,000
Mistake / million opportunities
• 3.8 Six SIGMA = 99% right of the
time
1% ERROR
• 1% Error can add up lot of
mistake
pretty fast
• Getting it right 99% of the time
is equal of 20,000 lost
articlesHour
• 5,000 bitched surgical
procedure/
Week
• 4 Accidentday at major airport
WHAT SO GREAT ABOUT SIX SIGMA?
MENTO
R
• Six sigma gives
employees well
defined roles & clear
structures to their
task
• Six sigma project are
usually run by guys in
the middle of the
organization
OPERATE IN MARKET PLACE IN TWO
WAY’S
• Make more
money by coming
up with great
invention, hiring
away some real
star
• Buying other
companies
TWO MISCONCEPTION ABOUT SIX SIGMA
1.QUALITY WITH MISSING THE
POINT
• The goal is not simply to
improve quality for the
sake of improvement
quality, but to make
customer happier & add
more to the bottom line
• If you are improving
quality but sill upsetting
customer or losing
money you are missing
the point
2.QUALITY SAVE
MONEY• Most company thinking
improving
quality cost money
• Six sigma companies turn that
thinking around
• Quality save money because
there fewer throw-outs, fewer
warranty payouts & fewer
refund’s & doing all that
increase profit’s
CRUCIAL DIFFERENCES
BETTER TO FIX LEG OR GET NEW
HORSE
• Some program still focusing
on only on the end product
where they spend all their
time trying new way to
identify the bad product
you have already made and
make Shure they get throw
out before they get to the
customer
FIRST GO FOR BIGGEST
PROBLEM• In six sigma first pick the one
problem to solve at a time as
a project
• First go to the biggest
problem then put some one
in the middle like Black belt
• Black belt has only one job to
complete the project given to
them
• & they also get all help they
need from champion their
supervisor & the Green belt
their support staff
METHODOLOGY
SIX SIGMA
METHODOLOGY
• Six Sigma is a process oriented
methodology designed to improve
business performance by
improving specific areas of
strategic business processes.
• Improvements can be of two
types: improving the existing
process or designing a new
process altogether. When we
have an existing process and we
want to improve the process we
deploy the DMAIC methodology.
While designing a new process or
completely revamping the existing
process the Design for Six Sigma
or IDOV methodology is deployed.
Design for Six Sigma
DMAIC DFSS
Structured and
iterative process
improvement
methodology
Rigorous approach to
designing processes
that will exceed
customer
expectations
Focus on defect
reduction
Focus on defect
prevention
DMAIC v/s
DFSS
Define Define the problem.
Define the customer(s) and the
requirements.
Define the current capability.
Define the key processes that will
have the greatest impact on
customer.
Measure Identify the statistical measures to
monitor the key process.
Set up the data collection plan.
Measure the process
Analyze Determine the analysis tools and
methods to be used.
Summarize the data measured.
Run the analysis and determine the
root causes, effects, etc.
Improve Improve and Implement.
Focus on developing
process/technology to improve the
root cause.
Test the method on sample
process and validate the
improvement.
Control Standardize and document the
process and implement the plan.
Monitor the process and feedback
the results back to the process for
continuous improvement.
DMAIC
Methodology
Identify Develop a team. Create team
charter. Gather VOC.
Perform competitive analysis.
Develop CTQs and formally tie
design to VOC.
Design Identify functional requirements.
Develop alternative concepts.
Evaluate alternatives and select a
best-fit concept.
Deploy CTQs and predict sigma
capability.
Optimize Determine process capability.
Develop detailed design elements.
Predict performance.
Optimize design.
Verify Test and validate the design.
Share feedback with manufacturing
and sourcing to improve future
manufacturing and designs.
DFSS (IDOV)
Methodology
REQUISITE FOR SUCCESSFUL
IMPLEMENTATION
• LEADERSHIP/TOP MANAGEMENT COMMITMENT IS ESSENTIAL
• ALL LEADERS SHOULD BE TRAINED AS SIX SIGMA CHAMPIONS
• INCLUDING SIX SIGMA PLANNING WITHIN THE BUSSINESS OPERATING
PLAN
• SELECT THE RIGHT CONSULTANT TO TRAIN YOUR BELTS
• ENSURE THAT RETURN ON TRAINING INVESTMENT IS AT LEAST 20 TIMES
• GET THE MOVMENT GOING AT THE SHOP FLOOR LEVEL
• CREATE A CERTIFICATION PROCESS
• DEVELOP A MENTORING PROCESS
• ENSURE FINANCIAL VALIDATION OF PROJECT S
• NEVER ALLOW SIX SIGMA TO BE CLASSIFIED AS A QUALITY MANAGER’S JOB
…………………
REWARDS OF SIX
SIGMA
……….
• IMPROVED RELIABILITY & PREDUCTABILITY OF SOFTWARE PRODUCTS
AND SERVICES
• INCRESED VALUE TO THE CUSTOMER AND SHAREHOLDERS
• IMPROVEMENTS IN ORGANIZATIONAL MORALE
• INCREASE MARKET VISIBILITY
• ORGANIZATIONAL RECOGNITION
• SIGNIFICANT REDUCTION IN DEFECT
• INSTITUTIONALIZATION OF A “PROCESS” MINDSET
CHALLENGES AND CRITICISM
……….
• 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 LAPES OCCURE FREQUENTLY
• PEOPLE MUST NOT FEAR GIVING “BAD NEWS”
• DESIGN IS CRITICAL & YET MANY it ORGANIZATION CNTINUE TO GO STRAIGHT
FROM POOR REUIREMENTS INTO CODING WITHOUT THE BENEFITS OF EVEN
ONE DESIGN REVIEW
MUMBAI DABBAWALAS REDEFINE
SIX SIGMA THEORY
WHAT IS
NMTBSA?
(Nutan Mumbai Tiffin Box Suppliers
Association)
 History
 Charitable trust
 Avg. Literacy Rate
 Total area
coverage
: Started in 1880
: Registered in 1956
: 8th Grade Schooling
: 60 Kms
 Employee Strength : 5000
 Number of
Tiffin's
 Time taken
: 2,00,000 Tiffin Boxes
i.e 4,00,000 transactions every day.
: 3 hrs
WORKING OF NMTBSA
Error Rate : 1 in 16 million transactions
•Six Sigma performance (99.999999)
•Technological Backup : Nil.
•Cost of service -Rs. 300/month ($ 6.00/month)
•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
CODING SYSTEM
 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.
JOURNEY OF
DABBAWALA
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.M
2:48- 3:30P:M
3:30- 4:40 P.M
SIX SIGMA
CERTIFICATION 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
ACHIEVEMENTS
 Documentaries made by :
• BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY,
SAHARA SAMAY, STAR TV, CNBC TV 18, CNN,
SONY TV, TV TOKYO, NDTV.
 CASE STUDY made by :
• ICFAI Press Hyderabad & Bangalore
• Richard Ivey School of Business – Canada
• Also, Included in a subject in Graduate School of
Journalism University of California, Berkeley
 Invitations from :
• CII for conference held in Bangalore, IIML, IIMA, CII
Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad,
SCMHRD Pune, SCMHRD Nasik, Sadahana
– Pune, Rotary Club – Bangalore, NIQR at Chennai
ACHIEVEMENTS
• 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.
LETTER FROM
PRINCE CHARLES
What is six sigma pgp

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What is six sigma pgp

  • 1. Professor & Lawyer Puttu Guru Prasad , VVIT, Nambur, 9394969898, puttuvvit@gmail.com Professor & Lawyer Puttu Guru Prasad , VVIT, Nambur, 9394969898, puttuvvit@gmail.com
  • 3.
  • 5. DISSATISF Y • Satisfying the customer through quality products and services only but trying maintain long term relationship through perfection in every thing they do to be world class
  • 6. DEFECT • It is better to eliminate defect in our product & service delivery quality rather than trying to minimize final defective out put
  • 7. CUT THROAT COMPETITION • We need not only satisfy our external customer but all employee, shareholder, supplier, etc. • Need to have quality product & service at lower possible cost & zero defect
  • 8. TQ M • Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.
  • 9. WHAT IS SIX SIGMA
  • 10. WHAT’S IN A NAME?• Six sigma is represent a statistical measure and a management philosophy • The Greek letter Sigma, used mathematically to designate standard deviation is the measure used to determine how good or bad the performance of a process is • Means how many mistake company commits while accomplishing task
  • 11. SIX SIGMA = PERFECTION • 1 Six Sigma = 700,000 Defects/ million opportunities • 2 Six Sigma = 3000,000Mistake/ million opportunities • 3&4 Six Sigma = 67,000 & 6,000 Mistake / million opportunities • 3.8 Six SIGMA = 99% right of the time
  • 12. 1% ERROR • 1% Error can add up lot of mistake pretty fast • Getting it right 99% of the time is equal of 20,000 lost articlesHour • 5,000 bitched surgical procedure/ Week • 4 Accidentday at major airport
  • 13. WHAT SO GREAT ABOUT SIX SIGMA?
  • 14. MENTO R • Six sigma gives employees well defined roles & clear structures to their task • Six sigma project are usually run by guys in the middle of the organization
  • 15. OPERATE IN MARKET PLACE IN TWO WAY’S • Make more money by coming up with great invention, hiring away some real star • Buying other companies
  • 17. 1.QUALITY WITH MISSING THE POINT • The goal is not simply to improve quality for the sake of improvement quality, but to make customer happier & add more to the bottom line • If you are improving quality but sill upsetting customer or losing money you are missing the point
  • 18. 2.QUALITY SAVE MONEY• Most company thinking improving quality cost money • Six sigma companies turn that thinking around • Quality save money because there fewer throw-outs, fewer warranty payouts & fewer refund’s & doing all that increase profit’s
  • 20. BETTER TO FIX LEG OR GET NEW HORSE • Some program still focusing on only on the end product where they spend all their time trying new way to identify the bad product you have already made and make Shure they get throw out before they get to the customer
  • 21. FIRST GO FOR BIGGEST PROBLEM• In six sigma first pick the one problem to solve at a time as a project • First go to the biggest problem then put some one in the middle like Black belt • Black belt has only one job to complete the project given to them • & they also get all help they need from champion their supervisor & the Green belt their support staff
  • 23. SIX SIGMA METHODOLOGY • Six Sigma is a process oriented methodology designed to improve business performance by improving specific areas of strategic business processes. • Improvements can be of two types: improving the existing process or designing a new process altogether. When we have an existing process and we want to improve the process we deploy the DMAIC methodology. While designing a new process or completely revamping the existing process the Design for Six Sigma or IDOV methodology is deployed.
  • 24. Design for Six Sigma
  • 25. DMAIC DFSS Structured and iterative process improvement methodology Rigorous approach to designing processes that will exceed customer expectations Focus on defect reduction Focus on defect prevention DMAIC v/s DFSS
  • 26. Define Define the problem. Define the customer(s) and the requirements. Define the current capability. Define the key processes that will have the greatest impact on customer. Measure Identify the statistical measures to monitor the key process. Set up the data collection plan. Measure the process Analyze Determine the analysis tools and methods to be used. Summarize the data measured. Run the analysis and determine the root causes, effects, etc. Improve Improve and Implement. Focus on developing process/technology to improve the root cause. Test the method on sample process and validate the improvement. Control Standardize and document the process and implement the plan. Monitor the process and feedback the results back to the process for continuous improvement. DMAIC Methodology
  • 27. Identify Develop a team. Create team charter. Gather VOC. Perform competitive analysis. Develop CTQs and formally tie design to VOC. Design Identify functional requirements. Develop alternative concepts. Evaluate alternatives and select a best-fit concept. Deploy CTQs and predict sigma capability. Optimize Determine process capability. Develop detailed design elements. Predict performance. Optimize design. Verify Test and validate the design. Share feedback with manufacturing and sourcing to improve future manufacturing and designs. DFSS (IDOV) Methodology
  • 29. • LEADERSHIP/TOP MANAGEMENT COMMITMENT IS ESSENTIAL • ALL LEADERS SHOULD BE TRAINED AS SIX SIGMA CHAMPIONS • INCLUDING SIX SIGMA PLANNING WITHIN THE BUSSINESS OPERATING PLAN • SELECT THE RIGHT CONSULTANT TO TRAIN YOUR BELTS • ENSURE THAT RETURN ON TRAINING INVESTMENT IS AT LEAST 20 TIMES • GET THE MOVMENT GOING AT THE SHOP FLOOR LEVEL • CREATE A CERTIFICATION PROCESS • DEVELOP A MENTORING PROCESS • ENSURE FINANCIAL VALIDATION OF PROJECT S • NEVER ALLOW SIX SIGMA TO BE CLASSIFIED AS A QUALITY MANAGER’S JOB …………………
  • 31. ………. • IMPROVED RELIABILITY & PREDUCTABILITY OF SOFTWARE PRODUCTS AND SERVICES • INCRESED VALUE TO THE CUSTOMER AND SHAREHOLDERS • IMPROVEMENTS IN ORGANIZATIONAL MORALE • INCREASE MARKET VISIBILITY • ORGANIZATIONAL RECOGNITION • SIGNIFICANT REDUCTION IN DEFECT • INSTITUTIONALIZATION OF A “PROCESS” MINDSET
  • 33. ………. • 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 LAPES OCCURE FREQUENTLY • PEOPLE MUST NOT FEAR GIVING “BAD NEWS” • DESIGN IS CRITICAL & YET MANY it ORGANIZATION CNTINUE TO GO STRAIGHT FROM POOR REUIREMENTS INTO CODING WITHOUT THE BENEFITS OF EVEN ONE DESIGN REVIEW
  • 35. WHAT IS NMTBSA? (Nutan Mumbai Tiffin Box Suppliers Association)  History  Charitable trust  Avg. Literacy Rate  Total area coverage : Started in 1880 : Registered in 1956 : 8th Grade Schooling : 60 Kms  Employee Strength : 5000  Number of Tiffin's  Time taken : 2,00,000 Tiffin Boxes i.e 4,00,000 transactions every day. : 3 hrs
  • 36. WORKING OF NMTBSA Error Rate : 1 in 16 million transactions •Six Sigma performance (99.999999) •Technological Backup : Nil. •Cost of service -Rs. 300/month ($ 6.00/month) •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. CODING SYSTEM  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. JOURNEY OF DABBAWALA 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.M 2:48- 3:30P:M 3:30- 4:40 P.M
  • 40. SIX SIGMA CERTIFICATION 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. ACHIEVEMENTS  Documentaries made by : • BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV, CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.  CASE STUDY made by : • ICFAI Press Hyderabad & Bangalore • Richard Ivey School of Business – Canada • Also, Included in a subject in Graduate School of Journalism University of California, Berkeley  Invitations from : • CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune, Rotary Club – Bangalore, NIQR at Chennai
  • 42. ACHIEVEMENTS • 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.