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Why sixsigma
The document discusses Six Sigma, which is a business strategy and methodology for improving quality, reliability, and responsiveness. It aims to make products and services faster, better, and cheaper. Six Sigma seeks to systematically eliminate defects and variation from processes by lowering the defect rate to 3.4 defects per million opportunities. It uses a set of tools and problem-solving techniques like DMAIC (Define, Measure, Analyze, Improve, Control) to statistically analyze processes and identify and address root causes of defects. Six Sigma has been successfully applied across various industries to drive process improvement and customer satisfaction.
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Why sixsigma
- 1. Six Sigma –a business strategy for improving “Capability, Reliability & Responsiveness” Six Sigma – a business strategy for improving “Capability, Reliability & Responsiveness” Naresh Chawla GM- Consultancy & Training PTU Nalanda School of TQM & Entrepreneurship, Mohali
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- 3. How is thebusiness run traditionally? Good (Q) Cheap (C) Fast (D) Is it possible in today’s scenario? 3 nareshchawla@tqmbizschool.org
- 4. Six Sigma isone strategic initiative which helps you in making your products or services Faster, Better & Cheaper Six Sigma is one strategic initiative which helps you in making your products or services Faster, Better & Cheaper 4 nareshchawla@tqmbizschool.org
- 5. InputsInputs Six Sigma BasicPremise Outputs (CTQ) Outputs (CTQ) Do you know what is important to customers? Do you know what “Xs” are important to meet customer needs? How do the “Xs” drive outcomes, revenue, and cost? 5 nareshchawla@tqmbizschool.org
- 6. Y = ƒ(X1,X2, X3 … Xn) + Six Sigma Basic Premise 6 nareshchawla@tqmbizschool.org This is the variation. Lesser the variation more is predictability
- 7. Business Strategy &Six Sigma Superior Reliability High Quality Customer Requirements 7 …Customer Satisfaction is a Business Issue Business Results Customer Satisfaction Consistent Performance On-Time Delivery Lower Costs Predictable Factory Robust Designs Process Capabilities Material Capabilities nareshchawla@tqmbizschool.org
- 8. It is awar against variation Six Sigma is a “data driven” problem solving methodology. … how you utilize and implement that methodology depends on you. What is Six Sigma? … how you utilize and implement that methodology depends on you. The International Organization for Standardisation (ISO) define Six Sigma as a "statistical business-improvement approach that seeks to find and eliminate defects and their causes from an organization's processes, focusing on outputs of critical importance to customers." 8 nareshchawla@tqmbizschool.org
- 9. What is SixSigma? Is a Methodology for Systematic Elimination of variation Object of 6 is Shift to Target & Reduce variation Object of 6 is Shift to Target & Reduce variation Reduce Variation & Center Process. Customers feel the variation more than the mean Object of 6 is Shift to Target & Reduce variation Object of 6 is Shift to Target & Reduce variation 9 nareshchawla@tqmbizschool.org
- 10. Six Sigmais a “Industry Independent” methodology and has been successfully applied across the various organization Manufacturing: Automotives, Aerospace, Health Equipment, FMCG, Electronic Goods, Continuous Process Industries, Textiles, etc. Service: Telecom, Banking and Financial Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo movement, Support Services, HR services, Marketing Services, etc. Six Sigma Applicability Six Sigma is a “Industry Independent” methodology and has been successfully applied across the various organization Manufacturing: Automotives, Aerospace, Health Equipment, FMCG, Electronic Goods, Continuous Process Industries, Textiles, etc. Service: Telecom, Banking and Financial Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo movement, Support Services, HR services, Marketing Services, etc. 10 nareshchawla@tqmbizschool.org
- 11. Customer Specification X X Every Process HasVariability... Variation & Defects are the Enemy Target X XXX X XX XX XX X X X XX X X X X X X X X X XX X X X XX X XX XXX X X X X X 1 defects 11 nareshchawla@tqmbizschool.org
- 12. y Poor Design Changing Needs Sourcesof Variation x Changing Needs Measurement System Insufficient Process Capability Skills & Behaviors 12 nareshchawla@tqmbizschool.org
- 13. Target Customer Specification 1 2 3 A 3process because 3 standard deviations fit between target and spec Reliability thru Variance Reduction Target Customer Specification 1 2 3 4 5 6 6 “No Defects” 13 nareshchawla@tqmbizschool.org
- 14. Six Sigma –a metric 14 nareshchawla@tqmbizschool.org
- 15. Sigma isa statistical unit of measure that reflects process capability DPMODPMO 6 3.4 99.9997% 5 233 99.98% 4 6,210 99% 3 66,807 93% 2 308,537 69% %% Six Sigma – a metric 6 3.4 99.9997% 5 233 99.98% 4 6,210 99% 3 66,807 93% 2 308,537 69% Process Capability Defects Per Million Opportunities Percentage Good Increase Requires Exponential DPMO Reduction 15 nareshchawla@tqmbizschool.org
- 16. ● Methodology Structured problemsolving methodology. Two primary sub-methodologies in Six Sigma DMAIC DMADV ● Set of tools Six Sigma as a set of tools includes all quantitative techniques used by the six sigma expert to drive process improvement. Six Sigma – a methodology ● Methodology Structured problem solving methodology. Two primary sub-methodologies in Six Sigma DMAIC DMADV ● Set of tools Six Sigma as a set of tools includes all quantitative techniques used by the six sigma expert to drive process improvement. 16 nareshchawla@tqmbizschool.org
- 17. When to useSix Sigma? 3.4 DPMO 233 DPMO 6210 DPMO Sweetest Fruit Average Processes Low Hanging Six Sigma Five Sigma Four Sigma World Class Bulk fruit Process Characterization & Optimization (DMAIC) Design for Six Sigma (DFSS) There is exponential decrease in Defects with increase in Sigma 6210 DPMO 66807 DPMO 308537 DPMO 697672 DPMO Average Processes Low HangingThree Sigma Two Sigma One Sigma Ground Fruit Logic & Intuition Seven Basic tools 17
- 18. Ask an ExpertSix SigmaUNKNOWN When to use Six Sigma? Just do it Lean!!!!!!!!!! Simple Complex KNOWN Solutions 18 nareshchawla@tqmbizschool.org
- 19. Statistical Problem Traditional Approach Practical Problem How Six Sigmais different? Statistical Problem Statistical Solution Practical Solution Six Sigma Approach Customer Focused . . .Bottom Line “cost” Driven 19 nareshchawla@tqmbizschool.org
- 20. Beyond seven QCtools Sr. No. Tools Stage Nature of tool 1 Affinity Diagram D Non-Statistical 2 Quality Function Deployment D Non-Statistical 3 Kano Model D Non-Statistical How Six Sigma is different? 3 Kano Model D Non-Statistical 4 SIPOC D Non-Statistical 5 Estimating sigma level M Statistical 6 Rolled through put yield M Statistical 7 Process capability/SPC studies M Statistical 8 Gauge R & R, AAA studies M Statistical 9 Relation Diagram A Non-Statistical 10 Control/Impact Diagram A Non-Statistical 20 nareshchawla@tqmbizschool.org
- 21. Sr. No. Tools Stage Natureof tool 11 Cause & Effect Matrix A Non-Statistical 12 FMEA A Non-Statistical 13 Hypothesis Testing (Z-test, t-test, 2t-test, 2p-test, chi-sq test, ANOVA) A Statistical How Six Sigma is different? Hypothesis Testing (Z-test, t-test, 2t-test, 2p-test, chi-sq test, ANOVA) 14 Correlation & Regression A Statistical 15 Confidence Interval A Statistical 16 Multi-vari Analysis A Statistical 17 DoE/Taguchi Methods I Statistical 18 Response Surface Methodology I Statistical 19 Control Plans C Non-Statistical 20 Control Charts C Statistical 21
- 22. A genuinefocus on the customer Data and fact driven Management Removes defects from products & services Team based problem solving projects with milestones Process focus, management & improvement Proactive management Drive for perfection, no tolerance for failure Encompasses manufacturing, software and transactional processes Six Sigma – Fundamental Themes A genuine focus on the customer Data and fact driven Management Removes defects from products & services Team based problem solving projects with milestones Process focus, management & improvement Proactive management Drive for perfection, no tolerance for failure Encompasses manufacturing, software and transactional processes 22 nareshchawla@tqmbizschool.org
- 23. ● Identify & Define improvement opportunity ●Determine Customer Requirement (VoC) ● Develop Project Charter ● Map High Level Processes (SIPOC) ● Define ‘As is’ Situation (Detailed Process Map) ● Plan for Data collection ● Validate Measurement Systems ● Quantify Current Process Performance ● Identify patterns through data anlysis ● Identify Potential Causes (x’s) ● Prioritize possible root causes ● Validate possible root causes ● Generate Potential solutions ● Select Best Solution ● Test Solution (Piloting) ● Statistical Evidence of improvements ● Prepare and Implement Control Plan ● Implement Full Scale Solution ● Statistical Evidence that improveme nts are sustainable ● Validate Financial Gains DMAIC Methodology DefineDefineDefineDefine MeasureMeasureMeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControl ● Identify & Define improvement opportunity ● Determine Customer Requirement (VoC) ● Develop Project Charter ● Map High Level Processes (SIPOC) ● Define ‘As is’ Situation (Detailed Process Map) ● Plan for Data collection ● Validate Measurement Systems ● Quantify Current Process Performance ● Identify patterns through data anlysis ● Identify Potential Causes (x’s) ● Prioritize possible root causes ● Validate possible root causes ● Generate Potential solutions ● Select Best Solution ● Test Solution (Piloting) ● Statistical Evidence of improvements ● Prepare and Implement Control Plan ● Implement Full Scale Solution ● Statistical Evidence that improveme nts are sustainable ● Validate Financial Gains 23 nareshchawla@tqmbizschool.org
- 24. Thank YouThank You 24nareshchawla@tqmbizschool.org Naresh Chawla Master Black Belt