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1
AJAL JOSE AKKARA
ASSISTANT PROFESSOR
Dept: ELECTRONICS AND COMMUNICATION E N G I N E E R I N G
UNIVERSAL ENGINEERING COLLEGE
CURRENTLY PERSUING EXECUTIVE MBA @ IIM - kOZHIKODE
Six sigma and its application to software development
2
 Rapidly growing GDP of 7.5%-8%
 Services sector has more than 50% weightage in GDP
 Structural drivers for growth
 Large population and favorable demographic trends
 Skilled and well-educated labor force
 Rising integration into global trade and investment
 Improving macro policies and institutional framework
 Various studies predict that India will become the 3rd
largest economy in the world by 2050
 But there are challenges
 Need for simplification of rules and regulations
 Infrastructure
A brief look at the Indian Economy
Put the Right Information in the right Place. RIP it!
3
 Rapidly growing exports
 1991 – US $128 million
 2005 – US $17.2 billion
 2008 (projected)- US$ 50 billion
 Employs over 1,100,000 people
 Over 400 Fortune 500 companies outsource their software development &
maintenance to India
Snapshot of the Indian Software Industry
(Source: NASSCOM)
Applying Six Sigma to software development makes product development and
other projects transparent to both management and customers. Transparency
requires an important cultural change. As a result, after transparency is
achieved, completing accurate project estimations while meeting both deadlines
and customer requirements becomes a lot easier.
4
Liberalization of the economy & the seeds of IT boom in India
 Abolition of licenses
 Rationalization of taxes
 Export thrust
 Reduction of import tariffs
 Abolition of wealth tax
 Foreign exchange reforms
Systems Design and Development
1. Bottom-up
2. Top-down
3. Modular
X’s Step 1 Step 2 Step 3 Y’s
INPUTINPUT PROCESSPROCESS OUTPUTOUTPUT
5
The Six Sigma Evolutionary Timeline
1736: French
mathematician
Abraham de
Moivre publishes
an article
introducing the
normal curve.
1896: Italian sociologist Vilfredo
Alfredo Pareto introduces the 80/20
rule and the Pareto distribution in
Cours d’Economie Politique.
1924: Walter A. Shewhart introduces
the control chart and the distinction of
special vs. common cause variation as
contributors to process problems.
1941: Alex Osborn, head of
BBDO Advertising, fathers a
widely-adopted set of rules for
“brainstorming”.
1949: U. S. DOD issues Military
Procedure MIL-P-1629, Procedures
for Performing a Failure Mode Effects
and Criticality Analysis.
1960: Kaoru Ishikawa
introduces his now famous
cause-and-effect diagram.
1818: Gauss uses the normal curve
to explore the mathematics of error
analysis for measurement, probability
analysis, and hypothesis testing.
1970s: Dr. Noriaki Kano
introduces his two-dimensional
quality model and the three
types of quality.
1986: Bill Smith, a senior
engineer and scientist introduces
the concept of Six Sigma at
Motorola
1994: Larry Bossidy launches
Six Sigma at Allied Signal.
1995: Jack Welch
launches Six Sigma at
GE.
6
Time Line
1985 1987 1992 1995 2002
Dr Mikel J Harry wrote a
paper relating early
failures to Quality.
MOTOROLA Allied
Signal
General Electric
Johnson &
Johnson, Ford,
Nissan,
Honeywell
“[Six Sigma] is the most important training thing we have ever had. It’s better than
going to Harvard Business School.”
J.F. Welch
7
Pilot's Six Sigma Performance
Width of Landing Strip
1/2 Width of
Landing strip
If pilot always lands
within 1/2 the
landing strip width,
we say that he has Six
Sigma capacity.
Six sigma will
be able to
help in
dealing with
all these
challenges to
8
The Quality Chain
Project and IT development processes support the
project’s products
Customers may be internal or external
More efficient & effective use of resources
Minimize errors
Meet or exceed stakeholder expectations
More rework, waste, & errors
Negative impact on project goal &
objectives
Poor quality can be an embarrassment!
9
New Outsourcing Fever
Booming Software/IT IndustryBooming Software/IT Industry
10
Software Safety
♦ Software safety is a software quality assurance
activity that focuses on the identification and
assessment of potential hazards that may affect
software negatively and cause an entire system to
fail.
♦ If hazards can be identified early in the software
process, software design features can be specified
that will either eliminate or control potential
hazards.
11
12
Problems with Software
and Sigma
♦Software generally has low product volume
compared with manufactured products
–But what if we measure units, tests, objects,
screens, functions, etc?
♦Software development process has very
high variance
–Does it need to?
–Is that necessarily bad?
13
What Are These Changes?
datadata
otherother
documentsdocuments
codecode
TestTest
ProjectProject
PlanPlan
changes inchanges in
technical requirementstechnical requirements
changes inchanges in
business requirementsbusiness requirements
changes inchanges in
user requirementsuser requirements
software modelssoftware models
14
Software Quality
Assurance
Formal
Technical
Reviews
Test
Planning
& Review
Measurement
Analysis
&
Reporting
Process
Definition &
Standards
15
The Software Configuration
programsprograms documentsdocuments
datadataThe piecesThe pieces
16
Software Process Overview
♦ cross platform building
♦ Dashboards – continuous testing
♦ Mailing List – Developer communication
♦ Stored developer communication
♦ keep track of bugs and feature requests
17
The IT Project Quality Plan
18
Eight Wastes of Software Development
♦ Partially Done Work
♦ Extra Processes
♦ Extra Features
♦ Task Switching
♦ Waiting
♦ Motion
♦ Defects
♦ Underutilization of Employees
Note: Seven Wastes of SD defined by Mary Poppendieck
19
Monitor and Control
Quality Control Activities
Quality Control Activities should focus on the inputs
and outputs of each process. This can be viewed
in terms of the systems concept.
20
Quality
Control
Tools
21
Effect
Measurement
Methods
People
unable employee
Untrained
employee
Lack of
training
Inefficient
trainer
Mistakes
in
estimating
Severity
problems
Narrative
data
Problem in the
method of data
analysis
The method is
not suitable with
the data category
The method is not
working with the
system perfectly
Lack of
knowledge
about the
system
Lack of knowledge
about the method
22
Notes
Make any notes here:
.
Tip: First start with Outputs and Customers. Next set process boundaries and do the process map steps and then list inputs and suppliers
Start
End
Design and development
Coding
Testing
Analysing the requirements
Promotion
Maintenance and updating
SIPOC
INPUTSSUPPLIERS PROCESS OUTPUTS CUSTOMERS
Critical to Client MetricCritical to Client MetricRegion :
Product :
Number of processes :
Process :
FTE :
1. Org 1
2. Org 2
3. Org 3
4. Org 4.
*Interviews with
the clients,Mails
and Supporting
docs by the client.
•Requirement
Specification.
• The software
with forms and the
requirement
specification.
•The software,
Requirement
specifications,
supporting
documents and
Technical
documents.
•Software with
content,Client
mails mentioning
the competitors.
•Software/
application,
content/functions
to be updated,
re-Analysis
reports.
Completed
softwares
1. Org 5
2. Org 6
3. Org 7.
23
Why the necessity of any Quality
Management System ?
♦ To get high Customer satisfaction index
♦ To maintain Competitive lead
♦ To adopt best quality practices
♦ Win global outsourcing contracts
Process reengineering goes a step further than quality assurance:
24
Process Name:
W
ho
Step
Elapsed Time
As-Is Process Map
Analysing the
requirements
1st
week 2nd
week 3rd
week 4th
week 5th
week 6th
week 7th
week
1
2 Design and
development
3 Coding
4 Testing
5 Promotion
6 Maintenance
and updating
25
Moments of Truth (MOT):
Any time a customer draws a critical judgement, positive or negative, about
the
service, based upon a service experience (or lack of it).
Value-Added (VA):
• Is the customer willing to pay for it?
• Is it done right the first time?
• Essential work that moves one step closer to the final product.
Value-Add Enabler: step that is required to do VA
Non-Value Add (NVA):
Steps considered non-essential to produce and deliver the
product or service
to meet the customer’s requirements. The customer is NOT
willing to pay for the step.
“As-Is” Process Map Analysis
1 2 3 5 6 74
%
TotalTotal
%
Steps
Process Step
Discussing
with
the
customer
about
the
require-
ments
Complete
analysis
Specification
building
Designing
Developing
Understanding
the design
(by
programmer)
Writing
the
Codes
(by
technical
writer)
Design
Materials
Production
Process
(Outputs)(Inputs)
Products
26
“As-Is” Process Map Analysis
8 9 10 12 13 14 1511
%
TotalTotal
%
Steps
Process Step Intensive
testing
Complete
testing Making
an
advertising
campaign
Making
an
Attractive
website
as
to show
models
of
software
Providing
maintenance
Frequent
updating
Reanalysis
reports
Refreshing
the
website
with
the
new
updates
Development
ProcessArchitecture
Requirements
(Outputs)(Inputs)
Software
Applying to Software
27
Moments of Truth (MOT):
Any time a customer draws a critical judgement, positive or negative, about the
service, based upon a service experience (or lack of it).
Value-Added (VA):
• Is the customer willing to pay for it?
• Is it done right the first time?
• Essential work that moves one step closer to the final product.
Value-Add Enabler: step that is required to do VA
Avg. Time (Mins)
Value-Added
Nonvalue-Added
– Failure Int. / Ext.
– Control/Inspection
– Delay
– Prep/Set-Up
– Move
Total
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total
%
Total
%
Steps
28
Business Process Reengineering
“Reengineering is the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance such as cost, quality,
service and speed *
* Hammer., Champy.J., (1993), Reengineering the Corporation: A Manifesto for Business Revolution., Harper Collins, London
$
Cost of
Poor
Quality
Process reengineering goes a step further than quality assurance:
29
Levels of Software Process
Maturity
Capability Maturity Model Integration (CMMI)
30
Change Cont rol
STOPSTOP
31
The BATON Solution
Vantage Service Manager
IT modeling, monitoring,
visualization and data
integration from Business
Perspective
Proven Methodology and
simplified data analysis
leveraging structured
methodology and extensive
intellectual property
Metrics Driven
Operational
Improvements
32
OPEN TO THE AUDIANCE
♦ CAN WE INTRODUCE SIX SIGMA IN
EDUCATION ?
♦ IF SO , HOW ?
33
Body of
Knowledge
Certification
Self Assessment
Roles &
Career
Development
Curriculum
34
Questions
35
Thank You !
36
Back up
37
To achieve six sigma:
6 Sigma -> 3.4 defects per million
5 Sigma -> 230 defects per million.
4 Sigma -> 6210 defects per million.
♦ In 1980’s, Motorola coined “six-sigma”
to describe their higher quality efforts
38
Examples of the Sigma Scale
In a world at 3 sigma. . .
♦ There are 964 U.S. flight
cancellations per day.
♦ The police make 7 false arrests
every 4 minutes.
♦ In MA, 5,390 newborns are
dropped each year.
♦ In one hour, 47,283
international long distance calls
are accidentally disconnected.
In a world at 6 sigma. . .
♦ 1 U.S. flight is cancelled every
3 weeks.
♦ There are fewer than 4 false
arrests per month.
♦ 1 newborn is dropped every 4
years in MA.
♦ It would take more than
2 years to see the same number
of dropped international calls.
39
Lean
♦ Originated in Toyota-
Toyota Production System
♦ Is not just about business
process review but a
methodology for changing
organisational culture
based on ‘systems
thinking’.
♦ Continuous
improvement ,Respect for
people
♦ Processes designed around
what the customer wants
♦ Identifies waste in a
process, efficiency gains
come from eliminating
waste.
♦ Software development
methodology
♦ Customer satisfaction by
rapid, continuous delivery
of useful software
♦ Working software is
delivered frequently
(weeks rather than months)
♦ Working software is the
principal measure of
progress
♦ Even late changes in
requirements are
welcomed
Agile Six Sigma
♦ Originated in Motorol
♦ A six-sigma process
is one in which
99.99966% of the
products
manufactured are
statistically
expected to be free
of defects
4040
TAKING OF THE BLINDERS…
“In strategy it is important to see distant things as if
they were close and to take a distanced view of close
things”
Miyamoto Musashi
The Book of Five Rings
4141
MURPHY’S LAW:MURPHY’S LAW:
What can go wrong, will go wrong. The possibility of something
going wrong is much greater than its going right. One can act upon a
problem, however small it is, only when the problem is first accepted.
Action presupposes a decision, a will, and the will can exists, only when
there is recognition.
KARMA:KARMA:
“Everything will be all right if my karma is good”. Karma does
not work that way, the theory of karma is not fatalism. It does not justify
passing the buck. It pins down the responsibility upon us.
so accept problem as it occurs.
4242
“What ever a leader does, other people do. The very thing.
What ever the upholds as authority, an ordinary person
follows that”.
- BHAGAVATGITA.
KRISHNA TO ARUGUNA:KRISHNA TO ARUGUNA:
If you runaway from this battle field, all others will also
follow you. If you fail to do what is to be done, others will also do
exactly that, because you are leader, whether you like it or not.
- Set our Example.
43
Data Driven Decision
Y = f(x)
• Y
• Dependant
• Output
• Effect
• Symptom
• Monitor
• X1…… Xn
• Independent
• Input-Process
• Cause
• Problem
• Control
44
GE Six Sigma Economics
$0
$500
$1,000
$1,500
$2,000
$2,500
1996 1998 2000 2002
6 Sigma Projest Success
Cost
Benefit
(in millions)
Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees -
progress based upon total corporation cost/ benefits attributable to Six Sigma.
45
Two Processes
DMAIC
– Existing Process
Define
Measure
Analyze
Improve
Control
DMADV
– New Processes
– DFSS
Define
Measure
Analyze
Design
Verify
46
DMAIC
47
Overview of Six Sigma
CHANGE
THE
WORLD
TRANSFORM THE
ORGANIZATION
GROWTH
COSTS OUT
PAIN, URGENCY, SURVIVAL
Six Sigma a
PHILOSOPHY
Six Sigma as a
Process
Six Sigma as a
Statistical Tool.
48
6 Sigma Training
Master Black BeltMaster Black Belt
Mentor, Trainer, and Coach of Black Belts and other in
the Organization
Black BeltsBlack Belts
Leader of teams implementing the Six Sigma
Methodology on projects.
Green BeltsGreen Belts
Delivers successful focused projects using the Six Sigma
Methodology on tools.
Team Members/Team Members/
Yellow BeltsYellow Belts
Participates on and supports the project teams,
typically in the context of his or her existing
responsibilities.

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Six cigma AJAL

  • 1. 1 AJAL JOSE AKKARA ASSISTANT PROFESSOR Dept: ELECTRONICS AND COMMUNICATION E N G I N E E R I N G UNIVERSAL ENGINEERING COLLEGE CURRENTLY PERSUING EXECUTIVE MBA @ IIM - kOZHIKODE Six sigma and its application to software development
  • 2. 2  Rapidly growing GDP of 7.5%-8%  Services sector has more than 50% weightage in GDP  Structural drivers for growth  Large population and favorable demographic trends  Skilled and well-educated labor force  Rising integration into global trade and investment  Improving macro policies and institutional framework  Various studies predict that India will become the 3rd largest economy in the world by 2050  But there are challenges  Need for simplification of rules and regulations  Infrastructure A brief look at the Indian Economy Put the Right Information in the right Place. RIP it!
  • 3. 3  Rapidly growing exports  1991 – US $128 million  2005 – US $17.2 billion  2008 (projected)- US$ 50 billion  Employs over 1,100,000 people  Over 400 Fortune 500 companies outsource their software development & maintenance to India Snapshot of the Indian Software Industry (Source: NASSCOM) Applying Six Sigma to software development makes product development and other projects transparent to both management and customers. Transparency requires an important cultural change. As a result, after transparency is achieved, completing accurate project estimations while meeting both deadlines and customer requirements becomes a lot easier.
  • 4. 4 Liberalization of the economy & the seeds of IT boom in India  Abolition of licenses  Rationalization of taxes  Export thrust  Reduction of import tariffs  Abolition of wealth tax  Foreign exchange reforms Systems Design and Development 1. Bottom-up 2. Top-down 3. Modular X’s Step 1 Step 2 Step 3 Y’s INPUTINPUT PROCESSPROCESS OUTPUTOUTPUT
  • 5. 5 The Six Sigma Evolutionary Timeline 1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve. 1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique. 1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems. 1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”. 1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis. 1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing. 1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality. 1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola 1994: Larry Bossidy launches Six Sigma at Allied Signal. 1995: Jack Welch launches Six Sigma at GE.
  • 6. 6 Time Line 1985 1987 1992 1995 2002 Dr Mikel J Harry wrote a paper relating early failures to Quality. MOTOROLA Allied Signal General Electric Johnson & Johnson, Ford, Nissan, Honeywell “[Six Sigma] is the most important training thing we have ever had. It’s better than going to Harvard Business School.” J.F. Welch
  • 7. 7 Pilot's Six Sigma Performance Width of Landing Strip 1/2 Width of Landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity. Six sigma will be able to help in dealing with all these challenges to
  • 8. 8 The Quality Chain Project and IT development processes support the project’s products Customers may be internal or external More efficient & effective use of resources Minimize errors Meet or exceed stakeholder expectations More rework, waste, & errors Negative impact on project goal & objectives Poor quality can be an embarrassment!
  • 9. 9 New Outsourcing Fever Booming Software/IT IndustryBooming Software/IT Industry
  • 10. 10 Software Safety ♦ Software safety is a software quality assurance activity that focuses on the identification and assessment of potential hazards that may affect software negatively and cause an entire system to fail. ♦ If hazards can be identified early in the software process, software design features can be specified that will either eliminate or control potential hazards.
  • 11. 11
  • 12. 12 Problems with Software and Sigma ♦Software generally has low product volume compared with manufactured products –But what if we measure units, tests, objects, screens, functions, etc? ♦Software development process has very high variance –Does it need to? –Is that necessarily bad?
  • 13. 13 What Are These Changes? datadata otherother documentsdocuments codecode TestTest ProjectProject PlanPlan changes inchanges in technical requirementstechnical requirements changes inchanges in business requirementsbusiness requirements changes inchanges in user requirementsuser requirements software modelssoftware models
  • 15. 15 The Software Configuration programsprograms documentsdocuments datadataThe piecesThe pieces
  • 16. 16 Software Process Overview ♦ cross platform building ♦ Dashboards – continuous testing ♦ Mailing List – Developer communication ♦ Stored developer communication ♦ keep track of bugs and feature requests
  • 17. 17 The IT Project Quality Plan
  • 18. 18 Eight Wastes of Software Development ♦ Partially Done Work ♦ Extra Processes ♦ Extra Features ♦ Task Switching ♦ Waiting ♦ Motion ♦ Defects ♦ Underutilization of Employees Note: Seven Wastes of SD defined by Mary Poppendieck
  • 19. 19 Monitor and Control Quality Control Activities Quality Control Activities should focus on the inputs and outputs of each process. This can be viewed in terms of the systems concept.
  • 21. 21 Effect Measurement Methods People unable employee Untrained employee Lack of training Inefficient trainer Mistakes in estimating Severity problems Narrative data Problem in the method of data analysis The method is not suitable with the data category The method is not working with the system perfectly Lack of knowledge about the system Lack of knowledge about the method
  • 22. 22 Notes Make any notes here: . Tip: First start with Outputs and Customers. Next set process boundaries and do the process map steps and then list inputs and suppliers Start End Design and development Coding Testing Analysing the requirements Promotion Maintenance and updating SIPOC INPUTSSUPPLIERS PROCESS OUTPUTS CUSTOMERS Critical to Client MetricCritical to Client MetricRegion : Product : Number of processes : Process : FTE : 1. Org 1 2. Org 2 3. Org 3 4. Org 4. *Interviews with the clients,Mails and Supporting docs by the client. •Requirement Specification. • The software with forms and the requirement specification. •The software, Requirement specifications, supporting documents and Technical documents. •Software with content,Client mails mentioning the competitors. •Software/ application, content/functions to be updated, re-Analysis reports. Completed softwares 1. Org 5 2. Org 6 3. Org 7.
  • 23. 23 Why the necessity of any Quality Management System ? ♦ To get high Customer satisfaction index ♦ To maintain Competitive lead ♦ To adopt best quality practices ♦ Win global outsourcing contracts Process reengineering goes a step further than quality assurance:
  • 24. 24 Process Name: W ho Step Elapsed Time As-Is Process Map Analysing the requirements 1st week 2nd week 3rd week 4th week 5th week 6th week 7th week 1 2 Design and development 3 Coding 4 Testing 5 Promotion 6 Maintenance and updating
  • 25. 25 Moments of Truth (MOT): Any time a customer draws a critical judgement, positive or negative, about the service, based upon a service experience (or lack of it). Value-Added (VA): • Is the customer willing to pay for it? • Is it done right the first time? • Essential work that moves one step closer to the final product. Value-Add Enabler: step that is required to do VA Non-Value Add (NVA): Steps considered non-essential to produce and deliver the product or service to meet the customer’s requirements. The customer is NOT willing to pay for the step. “As-Is” Process Map Analysis 1 2 3 5 6 74 % TotalTotal % Steps Process Step Discussing with the customer about the require- ments Complete analysis Specification building Designing Developing Understanding the design (by programmer) Writing the Codes (by technical writer) Design Materials Production Process (Outputs)(Inputs) Products
  • 26. 26 “As-Is” Process Map Analysis 8 9 10 12 13 14 1511 % TotalTotal % Steps Process Step Intensive testing Complete testing Making an advertising campaign Making an Attractive website as to show models of software Providing maintenance Frequent updating Reanalysis reports Refreshing the website with the new updates Development ProcessArchitecture Requirements (Outputs)(Inputs) Software Applying to Software
  • 27. 27 Moments of Truth (MOT): Any time a customer draws a critical judgement, positive or negative, about the service, based upon a service experience (or lack of it). Value-Added (VA): • Is the customer willing to pay for it? • Is it done right the first time? • Essential work that moves one step closer to the final product. Value-Add Enabler: step that is required to do VA Avg. Time (Mins) Value-Added Nonvalue-Added – Failure Int. / Ext. – Control/Inspection – Delay – Prep/Set-Up – Move Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total % Total % Steps
  • 28. 28 Business Process Reengineering “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed * * Hammer., Champy.J., (1993), Reengineering the Corporation: A Manifesto for Business Revolution., Harper Collins, London $ Cost of Poor Quality Process reengineering goes a step further than quality assurance:
  • 29. 29 Levels of Software Process Maturity Capability Maturity Model Integration (CMMI)
  • 31. 31 The BATON Solution Vantage Service Manager IT modeling, monitoring, visualization and data integration from Business Perspective Proven Methodology and simplified data analysis leveraging structured methodology and extensive intellectual property Metrics Driven Operational Improvements
  • 32. 32 OPEN TO THE AUDIANCE ♦ CAN WE INTRODUCE SIX SIGMA IN EDUCATION ? ♦ IF SO , HOW ?
  • 37. 37 To achieve six sigma: 6 Sigma -> 3.4 defects per million 5 Sigma -> 230 defects per million. 4 Sigma -> 6210 defects per million. ♦ In 1980’s, Motorola coined “six-sigma” to describe their higher quality efforts
  • 38. 38 Examples of the Sigma Scale In a world at 3 sigma. . . ♦ There are 964 U.S. flight cancellations per day. ♦ The police make 7 false arrests every 4 minutes. ♦ In MA, 5,390 newborns are dropped each year. ♦ In one hour, 47,283 international long distance calls are accidentally disconnected. In a world at 6 sigma. . . ♦ 1 U.S. flight is cancelled every 3 weeks. ♦ There are fewer than 4 false arrests per month. ♦ 1 newborn is dropped every 4 years in MA. ♦ It would take more than 2 years to see the same number of dropped international calls.
  • 39. 39 Lean ♦ Originated in Toyota- Toyota Production System ♦ Is not just about business process review but a methodology for changing organisational culture based on ‘systems thinking’. ♦ Continuous improvement ,Respect for people ♦ Processes designed around what the customer wants ♦ Identifies waste in a process, efficiency gains come from eliminating waste. ♦ Software development methodology ♦ Customer satisfaction by rapid, continuous delivery of useful software ♦ Working software is delivered frequently (weeks rather than months) ♦ Working software is the principal measure of progress ♦ Even late changes in requirements are welcomed Agile Six Sigma ♦ Originated in Motorol ♦ A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects
  • 40. 4040 TAKING OF THE BLINDERS… “In strategy it is important to see distant things as if they were close and to take a distanced view of close things” Miyamoto Musashi The Book of Five Rings
  • 41. 4141 MURPHY’S LAW:MURPHY’S LAW: What can go wrong, will go wrong. The possibility of something going wrong is much greater than its going right. One can act upon a problem, however small it is, only when the problem is first accepted. Action presupposes a decision, a will, and the will can exists, only when there is recognition. KARMA:KARMA: “Everything will be all right if my karma is good”. Karma does not work that way, the theory of karma is not fatalism. It does not justify passing the buck. It pins down the responsibility upon us. so accept problem as it occurs.
  • 42. 4242 “What ever a leader does, other people do. The very thing. What ever the upholds as authority, an ordinary person follows that”. - BHAGAVATGITA. KRISHNA TO ARUGUNA:KRISHNA TO ARUGUNA: If you runaway from this battle field, all others will also follow you. If you fail to do what is to be done, others will also do exactly that, because you are leader, whether you like it or not. - Set our Example.
  • 43. 43 Data Driven Decision Y = f(x) • Y • Dependant • Output • Effect • Symptom • Monitor • X1…… Xn • Independent • Input-Process • Cause • Problem • Control
  • 44. 44 GE Six Sigma Economics $0 $500 $1,000 $1,500 $2,000 $2,500 1996 1998 2000 2002 6 Sigma Projest Success Cost Benefit (in millions) Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma.
  • 45. 45 Two Processes DMAIC – Existing Process Define Measure Analyze Improve Control DMADV – New Processes – DFSS Define Measure Analyze Design Verify
  • 47. 47 Overview of Six Sigma CHANGE THE WORLD TRANSFORM THE ORGANIZATION GROWTH COSTS OUT PAIN, URGENCY, SURVIVAL Six Sigma a PHILOSOPHY Six Sigma as a Process Six Sigma as a Statistical Tool.
  • 48. 48 6 Sigma Training Master Black BeltMaster Black Belt Mentor, Trainer, and Coach of Black Belts and other in the Organization Black BeltsBlack Belts Leader of teams implementing the Six Sigma Methodology on projects. Green BeltsGreen Belts Delivers successful focused projects using the Six Sigma Methodology on tools. Team Members/Team Members/ Yellow BeltsYellow Belts Participates on and supports the project teams, typically in the context of his or her existing responsibilities.

Editor's Notes

  1. 8/18/2001 CSE8314
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