Six sigma methodology was developed by Motorola in 1987 to improve quality and reduce defects. It aims for only 3.4 defects per million opportunities. Six sigma provides statistical tools to analyze processes, identify issues, and implement solutions to improve processes and customer satisfaction while reducing costs. The methodology was later adopted by other companies like General Electric and focuses on both manufacturing and business processes.

2.  Six sigma methodology provides the techniques and tools to
improve the capability and reduces defects in any process.
 It was started by Motorola in 1987, in its manufacturing
division.
 Six sigma strives for perfection. It allows only 3.4 defects
per million opportunities.
 Six sigma improves the process performance, decreases
variation and maintains consistent quality of the process
output. This leads to defect reduction and improvements in
profits and customer satisfactions.
 The objective of six sigma principle is to achieve zero
defect products/process.

3. HISTORY
Many measurement standards (Cpk,Zero defects,etc)
have been developed in the area of quality
processing, but credit for coming up with the term “six
sigma” was given to a Motorola engineer named Bill
smith.
“six sigma” is currently a federally registered
trademark of Motorola.
 A six sigma quality program was established at
Motorola in 1987.
This program was developed by Mikel J.Harry, and
gained publicity when Motorola won the Malcolm
baldrige national quality award in 1988.
 Today many companies have adopted their own six
sigma methodologies and programs.

4.  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

5.  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.
 High potential candidates were selected as Black
Belts.

6.  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.

7. 99% Good (3.8 σ) 99.99966% Good (6 σ)
• 20,000 lost articles of mail per • Seven articles lost per hour
hour
• Unsafe drinking water for almost • One unsafe minute every seven
15 minutes each day month
• 5,000 incorrect surgical operation • 1.7 incorrect surgical operation
per week per week
• Two short or long landing at most • One short or long landing at most
major airports each day major airports every 5 year
• 200,000 wrong drug prescriptions • 68 wrong drug prescriptions
each year each year
• No electricity for almost seven • One hour no electricity for almost
hours each month every 34 years
7

8. How to calculate six sigma
Calculate defect per unit (DPU)
Total # defects
DPU =
Total # of Units
Calculate defect per million opportunities for
error (DPMO):
DPU X 1,000,000
DPMO =
# of Opportunity per Units

9. Assume that the product in question is a television which contain
800 opportunities for error. Total production 2,500 units, found
450 defects. What is six sigma level?
Total # of Defect 450
DPU calculation = = = 0.18
Total # of Units 2,500
Thus,
DPU X 1,000,000 0.18 X 1,000,000
DPMO = =
= 225
Opportunity for Error 800
From the next table, found that sigma level :
5 < σ < 6
9

10. If your yield is: Your DPMO is: Your Sigma is:
30.9% 690,000 1.0
62.9% 308,000 2.0
93.3 66,800 3.0
99.4 6,210 4.0
99.98 320 5.0
99.9997 3.4 6.0

11. Six Sigma Support Structure
 Champions: Business leaders who lead the
implementation of Six Sigma within the business;
 Master Black Belts: Fully trained quality leaders
responsible for Six Sigma strategy, training,
mentoring, deployment and results;
 Black Belts: Fully trained Six Sigma experts who lead
improvement teams, work on Six Sigma projects and
mentor Green belts;
 Green Belts: Fully trained individuals who apply Six
Sigma skills to improvement projects;
 Team Members: (Yellow Belts) Individuals who support
projects in their areas.

12.  Six Sigma has two key methodologies:
 DMAIC and DMADV.
 DMAIC is used to improve an existing business
process.
 DMADV is used to create new product designs
or process designs in such a way that it
results in a more predictable, mature and
defect free performance.

13. DIFF. B/W DMAIC & DMADV
DMAIC DMADV
 Defines a business process.  Define customer needs
 Measuring current process  Measure customer needs &
specification
 Identify root cause of the recurring  Analyze options to meet customer
PROBLEMS satisfaction.
 Improvements made to reduce  Model is deigned to meet customer
defects needs
 Model put through simulation tests
 Keep check on future performance
for verification

14. Six Sigma is a “Industry Independent” methodology and has been
successfully applied across:
 Manufacturing Industry including
Automotives, Aerospace, Health Equipment, FMCG, Electronic
Goods, Continuous Process Industries, Textiles, etc.
 Service Industry including Telecom, Banking and Financial
Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo
movement, Support Services, HR services, Marketing
Services, etc.
 R&D organizations or in R&D functions of various
organizations

15. Industry Examples of Six Sigma Applicability
Automotives i. Improving Safety & Reliability of Finished Vehicles
ii. Reducing Manufacturing defects at each stage
iii. Using Design FMEA to understand and prevent any possible design
failures
iv. Improving the overall Incoming Material Quality or parts Quality
v. Optimizing Inventory levels for all major parts
vi. Reducing time to manufacture
vii. Reducing Design defects
viii. Reducing Supplier Lead time i.e the time take by each supplier to deliver
goods
Few Examples of Companies: Tata Motors, Ford, GM, Maruti, Telco.

16. Industry Examples of Six Sigma Applicability
Continuous Process i. Improving overall Yield of each shift
Plants ii. Reduce scrap or spilled materials
iii. Reduce the Process failures or breakdowns
iv. Increase Plant capacity utilization
v. Improve Operator Productivity
vi. Reduce time to restart the process after failure
vii. Create mechanisms to prevent failures at each stage
viii. Improve overall process stability & control
Few Examples of Companies: Reliance Industries Ltd, Asian Paints, GE
plastics, Wipro consumer goods

17. Industry Examples of Six Sigma Applicability
Engineering Parts i. Reduce Manufacturing cycle time (time of order to delivery)
Manufacturing ii. Improve Customer Service performance scores
iii. Reduce or optimize inventory levels
iv. Reduce scrap or cost of poor quality
v. Reduce warranty costs
vi. Reduce rejections due to design errors
vii. Improve parts design process to meet specifications 100% of
times
viii. Improve parts reliability by identifying & optimizing critical
factors that ensure reliability
Few Examples of Companies: Gates India Ltd., Medium to small scale suppliers of
parts

18. Industry Examples of Six Sigma Applicability
Textiles/ Fashion i. Eliminating manufacturing errors/defects
houses/ Garments ii. Improving first sample approval percentages while working
with buyers
iii. Improving buyer satisfaction levels
iv. Increasing repeat business
v. Improving supplier evaluation processes
vi. Improving processes at the source (including fabric purchase
and inspection, stitching, embroidery, packing and shipping) to
reduce rejections at later stages.
vii. Reducing costs
viii. Reducing delays
Few Examples of Companies: Reliance Industries, Raymonds, Grasim

19. Six sigma-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

20.  Honeywell is one of the many success stories
involving Six Sigma. The company employs more
than108,000 people who work in 95 countries.
 The business is involved in products from aerospace
to transportation products.
 In 1994, Rick Schroeder who at the time was Vice
President of Operations at Allied Signal (now
Honeywell) brought his Six Sigma experience from
Motorola to Allied Signal.
 By 1999, Allied Signal was 5 years into Six Sigma
program, which headed the company‟s effort to
capture growth.

21.  They reduced defects and waste in all of
their business processes—resulting in a $600
million annual savings.
 Following its merger in 1999, Allied Signal
became Honeywell.
 Reduced time from design to certification of
new projects like aircraft engines from 42 to
33 months.

22. • In 1995 GE mandated each employee to work towards achieving 6
sigma
• The average process at GE was 3 sigma in 1995
• In 1997 the average reached 3.5 sigma
• GE’s goal was to reach 6 sigma by 2001in critical processes
• From 1998 onwards GE realized benefits worth 2billion USD.
• GE was the first company to Implement Six Sigma in services and
also in offshoring.
“the most important initiative GE has
ever undertaken”. Jack Welch
Chief Executive Officer
General Electric

23. 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.

24.  Helps organizations produce products and services
better, faster and cheaper.
 Remove Wastage
 Maximize Customer Satisfaction
 Maximize Product/Service Quality. (Develop Close
to Zero Defect Products/Services)
 Increase Sales
 Increase overall Organizational Productivity
 Save Costs
 reduce scarp and rework
 Faster Cycle Time
 Empower Employees