8/6/2019 Embedding Six Sigma Concepts in e Business
1/39
PLENARY SESSION-I
SIX SIGMA IN SERVICE SECTOR
delivered by
Dr. P. Balasubramanian, Ph.D.
Founder & CEO, Theme Work Analytics, Bangalore
& Entrepreneur in Residence at Purdue University, USA
at M.S.Ramaiah Institute of Technology, Bangalore on March 10, 2008
NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
8/6/2019 Embedding Six Sigma Concepts in e Business
2/39
SIX SIGMA IN SERVICE SECTOR
Services Sector consists of
Transportation, logistics and warehousing Wholesale and Retail Distribution Installation, Implementation and Maintenance
Financial Services such as Banking and Insurance Health Care Hospitality and Tourism Travel Consulting Services Information Technology Services Media & Entertainment Education & Training Government Services such as RTO. Registrar of
PropertiesAnd more.
8/6/2019 Embedding Six Sigma Concepts in e Business
3/39
SIX SIGMA IN SERVICE SECTOR
Distinguishing characteristics of Service Sector
People intensive Process intensive
Skill/Knowledge intensive
HenceFacethechallengeof
Motivation and retention of staff
Customer focus to maintain Performance and Quality Continuous Learning for Performance Improvement Knowledge sharing and knowledge management
8/6/2019 Embedding Six Sigma Concepts in e Business
4/39
Six Sigma is a philosophy that underlies
efforts to improve business performance
and customer satisfaction
Using facts and data to eliminate waste and
variation
Eliminating activities that dont add value
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
5/39
Six Sigma is
a Statistical measure of performance
an aspirational goal for quality an approach and methodology for
continuous improvement of quality
Performanceis also a dimensionof quality !
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
6/39
6 Sigma = 3.4 defects per million
5 Sigma = 230 defects per million
4 Sigma = 6,210 defects per million
3 Sigma = 66,800 defects per million
2 Sigma = 308,000 defects per million1 Sigma = 690,000 defects per million
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
7/39
8/6/2019 Embedding Six Sigma Concepts in e Business
8/39
Thereisno knownordocumented ServiceOrganization
that hasreached theSix Sigma level of quality ( 3
defects inmilliondeliveries) anywhereintheworld
except theMumbai Dabbawallas.
However Six Sigma Concepts and Methodology ,as
a means to improve quality and Performance , areapplicable in almost all organizations.
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
9/39
Align Performance
measures to Goals.
Let PMs be
measurable
Set
benchmarks
Document As
is Where is
Processes
Choose
appropriate
paths for
improvement
Implement,
Monitor &
Control
Define theproblem
Measure current process capability
Analyze root causes of variability
Improve process capability
Control to sustain improvements
SIX SIGMA IN SERVICE SECTOR
Six Sigma inaction
8/6/2019 Embedding Six Sigma Concepts in e Business
10/39
WORK IS WORSHIP
Tiffin baskets weight:
75-80 kgs.
SIX SIGMA IN SERVICE SECTOR
Nutan Mumbai Tiffin Box Suppliers Association
8/6/2019 Embedding Six Sigma Concepts in e Business
11/39
Mumbai Dabbawallas (NMTBSA)
History : Started in 1890
Charitable trust : Registered in 1956
Avg. Literacy Rate : 8th Grade Schooling
Total area coverage : 60 Kms to 70 Kms
Employee Strength : 5000
Number of Tiffin's :2,00,000 Tiffin Boxes
i.e 4,00,000 transactions every day.
Time taken : 3 hrs
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
12/39
The Flow Logic
Grant Road
(12)
Churchgate
(1-10)
Lower Parel(14)
2
3
7
4
5
6
Zones for destination
Distribution
By Carriers
at lunchtime
To offices
Point of
Aggregation
And Sorting
CDB
A E
Collection from home
1
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
13/39
Coding System
VLP : Vile Parle (suburb in
Mumbai)
9EX12 : Code for Dabbawalas
at Destination
EX : Express Towers
(building name)
12 : Floor no.
E : Code for Dabbawala
at residential station
3 : Code for destination
Station eg. Churchgate
Station (Nariman Point)Dsouza
8/6/2019 Embedding Six Sigma Concepts in e Business
14/39
Zero % fuel Zero % investment
Zero % modern technology Zero % Disputes
99.9999% performance 100 % Customer Satisfaction
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
15/39
Working ofN
MT
BSA
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 months from customers.
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
16/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
17/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
18/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
19/39
8/6/2019 Embedding Six Sigma Concepts in e Business
20/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
21/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
22/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
23/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
24/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
25/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
26/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
27/39
8/6/2019 Embedding Six Sigma Concepts in e Business
28/39
SIX SIGMA IN SERVICE SECTOR
Retention
8/6/2019 Embedding Six Sigma Concepts in e Business
29/39
Aravind Eye Hospital :Madurai
1. Process Mappingand
Reengineering
2. Taskspecialization
3. Assembly Linesetup
4. Youngrural womenrecruitedasparamedics
5. Rural Eye Campisthesource (1500)
SIX SIGMA IN SERVICE SECTOR: Indian Industries
Aravind US/UK Hospitals
Cost Per Operation in
USD50 to 100 2500 to
3000
Cost of IOL in USD 5 200
No.of operations per
day average800 ?
Capsule rupture &Vitreous loss 2.0 % 4.4 %
Corneal edema 8.0 % 9.0 %
Profitability Very
good
anemic
8/6/2019 Embedding Six Sigma Concepts in e Business
30/39
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
31/39
EmbeddingSix Sigma Concepts ineBusiness
Dell Direct reach to end customers .Elimination of the Accounts Receivable function.
Met specific needs of each customer.
Amazon.com First Virtual Store with delivery functions.
Inventory Aggregation
eBay Most successful market place for buyers and sellers to
meet.Fair value determination of used and new goods.
Buyer ,Seller assurance.
Hotmail First major product innovation in internet.
Revolution in Marketing.
Bhoomi Pioneering use of internet in e Governance.Malpractices killer
ICICI Bank Internet as a channel defines the Market Segment & itsMarketing Strategy
Air Deccan Agent less Sales leading to 20 % reduction in costs.
Elimination of paper and paper work
e Businessinnovators
8/6/2019 Embedding Six Sigma Concepts in e Business
32/39
EmbeddingSix Sigma Concepts ineBusiness
Challenges facingthe e Businessinnovators.Theyneed Six Sigmaapproach
Issue
Innovator
Profitability Quality ofService
MarketGrowth
Service level Different-iation
Optimal mix
Dell
Amazon.com
e Bay
Hotmail
Bhoomi
ICICI Bank
AirDeccan
8/6/2019 Embedding Six Sigma Concepts in e Business
33/39
1. Timetakento bookaticket
2. Timelydeparture3. Over booking
4. Revenuerealizedperseatkm
5. Safety
Bus, Train or Air travel
SIX SIGMA IN SERVICE SECTOR
8/6/2019 Embedding Six Sigma Concepts in e Business
34/39
SIX SIGMA IN SERVICE SECTOR
1. Waittimeinthesystem
2. Timetakenforatransaction3. Channelflexibility
4. Timelyalerts
5. Statementregularity
Banking Services
8/6/2019 Embedding Six Sigma Concepts in e Business
35/39
8/6/2019 Embedding Six Sigma Concepts in e Business
36/39
SIX SIGMA IN SERVICE SECTOR
1. MeasureofFacultyPerformance
SubjectwiseBatch wise (Fulltime,Parttime,
Distance Learning)
2. Variance ReductionvsMeanscore
3. Attendanceimpact
Education, Training Sector
8/6/2019 Embedding Six Sigma Concepts in e Business
37/39
Canlead torewritingbusinessparadigms
EmbeddingSix Sigma Concepts ineBusiness
Do away with a complete function such as Accounts Receivable & collections
Eliminatenon value adding intermediaries
Reduce finished goods inventory dramatically
Meettheexpectation ofevery customer Cross sell effectively
Improve operational efficiency and effectiveness by leaps & bounds
Reach current information swiftly to stakeholders fortheiroptimal use
Be a fairand impartial judge
Improvetransparency
Reduce/eliminate leakages
Study materials on the net, Examination & Assessment, AlumniRelationship Management are some key innovations in the EducationSector widely being adopted around the world.
8/6/2019 Embedding Six Sigma Concepts in e Business
38/39
NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
SIX SIGMA IN SERVICE SECTOR
AcknowledgementAravind Eye Hospital Slides and Information from
Dr. Aravind Srinivasan,Administrator
www.iimb.ernet.in/~review/DOCUMENTS/Aravind.pdf
Dr. Usha Kim, MLOP ( Mid Level Ophthalmic personnel)
www.aravind.org/education/coursedetails.asp?tmpcatcode=C000000091
Mumbai Dabbawalla Slides & information from
www.geocities.com/hr_era/DabbawallasofMumbai.ppt
8/6/2019 Embedding Six Sigma Concepts in e Business
39/39
NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
Thanks and Best Wishes
Dr.P.Balasubramanian
Founder and C.E.O.,
Theme Work Analytics,
Bangalore, India, 560 041
[email protected] Ph : 91 80 4121 4297
SIX SIGMA IN SERVICE SECTOR