SIX SIGMA IMPLEMENTATION IN WIPRO TECHNOLOGIES HUMAN RESOURCE MANAGEMENT PROJECT REPORT [Submitted in Partial Fulfillment] [Second Semester – JANUARY-MAY 2010] As a part of the Curriculum of MASTER OF BUSINESS ADMINISTRATION [MBA] From Bhai Parmanand Institute of Business Studies, Delhi. Affiliated to Guru Gobind Singh Indraprastha University, Delhi. SUBMITTED BY
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SIX SIGMA IMPLEMENTATION IN WIPRO TECHNOLOGIES
HUMAN RESOURCE MANAGEMENT PROJECT REPORT
[Submitted in Partial Fulfillment]
[Second Semester – JANUARY-MAY 2010]
As a part of the Curriculum of
MASTER OF BUSINESS ADMINISTRATION [MBA]
From
Bhai Parmanand Institute of Business Studies, Delhi.
Affiliated to Guru Gobind Singh Indraprastha University, Delhi.
SUBMITTED BY
MANMOHAN (03011403909)MBA SECOND SEMESTER
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIESSHAKARPUR, DELHI-92.
DECLARATION BY THE CANDIDATE
I hereby declare that the work, which is being present in this Project, entitled “Six Sigma Implementation In Wipro Technologies” is an authentic record of my own work carried out by me under the Supervision and Guidance of Shri S. Thiyagarajan, Project Guide, Bhai Parmanand Institute of Business Studies, Shakarpur, Delhi-92
This Project was undertaken as a Partial Fulfillment of the Study of Human Resource Management in the Second Semester of MBA Degree as per the Curriculum of Guru Gobind Singh Indra Prastha University, Delhi.
I have not submitted the matter embodied here in this Project for the award of any other Degree/Diploma.
Name: MANMOHANRollNo.:03011403909MBA II SemesterBPIBS, Delhi.
Bhai Parmanand Institute of Business studies
Shakarpur, Delhi-110092
Date:
CERTIFICATE OF PROJECT GUIDE
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. Manmohan Roll No.03011403909 of BPIBS, Delhi, has done a Research Project Titled “Six Sigma Implementation In Wipro Technologies” under the discipline of Human Resources Management as a part of Curriculum of Second Semester of MBA Degree under my direct Guidance and Supervision.
Her performance was satisfactory during his Research Process for the above said HRM Project.
[S. THIYAGARAJAN] IN-CHARGE – DEPT. OF MBA
AND PROJECT GUIDE
Bhai Parmanand Institute of Business studies
Shakarpur, Delhi-110092
ACKNOWLEDGEMENT
The Project entitled “Six Sigma Implementation In Wipro Technologies” was a challenging assignment for me and required an improved environment, extensive Endeavour and all necessary guidance and support. I take this opportunity to express my gratitude to Shri S. Thiyagarajan, In-Charge - Dept. of MBA and Project Guide for his able guidance, co-operation and out of box thinking without which this Project would not have been exciting at all.
The successful progression of this project also gives me an opportunity to acknowledge and appreciate Mr. Ashutosh who has provided me much needed stimulating suggestion and encouragement in order to steer this project towards completion.
Student’s Name: MANMOHAN
Roll No.: 03011403909
TABLE OF CONTENTS
CONTENTS PARTICULARS PAGE NO.DECLARATION BY THE STUDENT [i]CERTIFICATE OF THE PROJECT GUIDE
[ii]
ACKNOWLEDGEMENT [iii]CHAPTER-I INTRODUCTION:
1.0 Introduction of Six Sigma 21.2 Objectives of the Study1.3 Methodology of Six Sigma 1.3.1 Define, Measure , Analyze, Improve & Control (DMAIC) 1.3.2 Define, Measure , Analyze, Design & Verify (DMADV) 1.3.3 Design for Six Sigma (DFSS) 1.3.4 Business Process Management System (BPMS)
CHAPTER-2 ORGANISATIONAL PROFILE [IN BRIEF]2.1 Wipro Technologies (Overview)2.2 Evolution of Six Sigma at Wipro Tech.2.3 Difficulties Encountered by Wipro
CHAPTER-3 RESEARCH STUDY OF SIX SIGMA3.1 Levels of Six Sigma3.2 Strategies of Six Sigma3.3 Global Perspective of Six Sigma
CHAPTER-4 I MPLEMENTATION OF SIX SIGMA4.1 Indian IT buys into Six Sigma4.2 Implementation of Six Sigma4.3 Benefits of Six Sigma4.4 Limitations of Six Sigma
CHAPTER-5 ANALYSIS & INTERPRETATIONS5.1 Analysis5.2 Challenges Faced while adopting Six Sigma5.3 Interpretations
Much more training for all involved. The training is heavily statistical, project
management, and problem solving oriented. Black Belt is well justified by the
savings per project.
4. New Metrics:
Use of metrics unlike anything ever used before. These metrics not only tie in
customer Critical to Quality needs with what is measured by the company, but
they also allow processes within the company to be compared with each other
using a single scale called DPMO (Defects Per Million Opportunities).
5. Much Better Use of Teams:
Very efficient use of highly trained, cross-functional, and empowered teams to
locate and make improvements. Black Belts are also trained team efficiency
experts.
6. A New Level of Process Comparison:
The use of opportunity divisible defect metrics (DPMO) allows comparisons
from division to division, department to department, process-to-process, etc.
within the company.
7. A New Corporate Attitude / Culture:
Implementation of Six Sigma creates a new environment that naturally
promotes the creation of continuous improvement efforts.
CHAPTER 04
IMPLEMENTATION OF SIX SIGMA
INDIAN IT BUYS INTO SIX SIGMA
India’s IT industry is respected globally for its focus on quality. While SEI-CMM
and other ISO standards are quite common, Six Sigma is now becoming popular
amongst Indian IT and ITeS companies. Some have already started reaping the
benefits of adopting Six Sigma.
In a business where there is little to differentiate between competitors, quality is
that key ingredient that can aid in the differentiation process. Obviously, quality
standards and certifications have become a buzzword amongst Indian IT and ITeS
companies. The goal of Six Sigma is continuous process improvement. Indian
companies are adopting it to gain an edge over the others in the pack. Six Sigma’s
adoption has resulted in the improvement of business processes for many
companies. While Six Sigma adoption is still in a nascent stage and challenges
remain, it is expected to take off amongst Indian IT and ITeS companies in the
years to come.
Six Sigma is popular with Indian IT and ITeS players for many reasons, not the
least of which is the fact that it is very clearly result-oriented. Of course, the fact
that one of Indian software’s biggest customers, General Electric (GE), is a big
proponent of Six Sigma doesn’t hurt either.
More result-oriented
Many Indian IT and ITeS players believe that Six Sigma is more result-oriented
than other quality and improvement standards and therefore it helps them
streamline their processes, bringing about all-round organisational improvement.
As Six Sigma practices aim at quantifying each and every process in numbers, it is
easier to measure improvement. Sambuddha Deb, chief quality officer, Wipro
Technologies says, "In most other standards it is very difficult to measure quality
as everyone has a different definition of quality. However, Six Sigma practices
underline defects in a process, thereby making it easy to improve upon it by
eliminating the defect from its root." After adopting Six Sigma, many
organisations have found that their delivery processes have become sustainable and
continuous. For call centres in particular, and IT companies in general, the prospect
of improving HR processes using Six Sigma is a big draw. Shwetank Sharad, head
of quality at ICICI OneSource says, "There are well defined roles in a Six Sigma
practice, like a Master Black Belt, Black Belt and a Green Belt. It aims at zero
error in a process, thereby resulting in overall improvement in a set-up."
Increased customer satisfaction
Several Indian IT and ITeS companies have adopted Six Sigma in order to gain
customer acceptability and improve client satisfaction. It has helped them create
and deliver value and demonstrate direct savings to their customers. Some IT
companies like TCS and iGATE Global Solutions went in for Six Sigma as a result
of their long-term relationship with General Electric (GE) one of the pioneers in
spreading and adopting the concept of Six Sigma (Motorola was the other pioneer
in Six Sigma).
N G Subramanayam, vice president of Bangalore Operations for TCS says,
"Initially we took the help of GE and Motorola in adopting Six Sigma. GE trained
our core team, which then spread the concept across TCS. After having adopted the
Six Sigma practice in 1999 we have worked on nearly 300 projects using this
practice."
Continuous process of improvement
Indian IT and ITeS companies have adopted Six Sigma across their organisations
and have tried to incorporate most of the processes running in their set-ups. As Six
Sigma aims at continuous improvement it has resulted in changing the complete
mindset of employees as per its procedures. The change in the overall mindset of
the organization has resulted in greater efficiency and productivity as well as a
reduction in cost and cycle time.
Adoption mainly amongst large IT & ITeS players
The adoption of Six Sigma has been largely confined to large IT and ITeS players
in the country as they have a large number of repeatable processes that can be
improved over a given time period. They also have a large number of projects that
follow a similar process. Large IT and ITeS companies also have multiple quality
standards running across the organization and it is easier for them to integrate Six
Sigma practices along with other standards. Krishnan Puthucode, director and
CEO, SEI Authorized Lead Assessor, Software Quality says, "In some SMEs there
are hardly 10 projects running and they aren’t many repeat processes in them. In
such cases it becomes very difficult to adopt Six Sigma practices. Hence SMEs are
struggling to adopt Six Sigma."
Integrating Six Sigma practices with other standards
Indian IT and ITeS companies adopting Six Sigma already have a quality standard
like a CMM Level 5 certification or an ISO certification. It is easier to integrate
Six Sigma practices when there are also practices like CMM or ISO running in a
set-up. Some organizations like Wipro, TCS and iGATE Global Solutions in the IT
field and EXL Services and 24/7 Customer in ITeS already had other quality
programmers running successfully before they went in for Six Sigma. When the
Six Sigma adoption idea was mooted the management readily accepted it, thereby
paving the way for overall adoption across the organization."
Statistically measuring every process
Since Six Sigma is heavily dependent on numbers to underline the number of
defects it becomes difficult to measure each and every process mathematically and
statistically. Puthucode of SQC says, "It is easier to measure each and every
process in a production environment but when it comes to software there is this
problem of lack of repeatability. A lot of dedication is required, especially while
measuring people processes, as it means a complete change in the attitude of the
employees." However some companies like Wipro Technologies have created a
data driven system and have made it mandatory to collect data for each of the
processes running on Six Sigma.
The difference in IT organizations is that it may be applicable for ‘product design’
oriented projects while ITeS may use process improvement projects." The lack of
good consultants in the space who can assess and monitor the adoption of the Six
Sigma.
IMPLEMENTATION OF SIX SIGMA AT WIPRO
TECHNOLOGIES
Wipro has adopted the project approach for Six Sigma, where
projects are identified on the basis of the problem areas under
each of the critical Business Processes that adversely
impacts the business significantly. Wipro offers practices to optimize
and standardize various processes in line with frameworks. Wipro offers gap
analysis with reference to the frameworks, defines IT processes covering
policy, processes and performance metrics. Wipro value is in the
implementation support and plan for development of detailed specifications,
deployment of policies, tools and procedures, organization requires a clear
understanding of roles and responsibilities, as well as the proper tools and
techniques to accomplish it.
Today, Wipro applies best in class tools, methodologies in a systematic way.
This provides measurable milestones that can be presented to those involved
and stake holders. A robust process thus becomes suited for process
automation. It can serve as bedrock to move to higher level of building
capabilities.
Wipro has evolved following Six Sigma methodologies:
(I) For developing new processes:
(i) DSSS+ Methodology –
Wipro employs DSSS methodology for software development.
The methodology uses rigorous in-process metrics and cause
analysis throughout the software development lifecycle for
defect free deliveries and lower customer cost of application
development.
(ii) DSSP Methodology – used for designing new processes and
products
(iii) DCAM Methodology – used for designing for customer
satisfaction and
Manufacturability
(II) For Improving Existing Processes
(i) TQSS Methodology –used for defect reduction in Transactional
processes.
(ii) DMAIC Methodology -used for process improvement in Non-
transactional process
(III) For Reengineering
CFPM Methodology - used for cross functional Process mapping.
The list of players at Wipro is as below:
Executive Management
Six Sigma Champions and Deployment Leaders
Financial Executives
Black Belts
Green Belts
Yellow Belts
Six Sigma projects at Wipro are:
SIX SIGMA
Developing New Processes
Improving Existing Processes Re Engineering
(i) Driven by business heads, also called Champions for the
projects.
(ii) Led by Green Belts (GB)
Assisted by Black Belts (BB)
The Management of the project at Wipro follows the following
tools for implementation
of Six Sigma:
Ideation
Definition
Selection
Tracking
Reporting
WHY SIX SIGMA WORKS?
A Six Sigma program integrates the elements of management culture and quality
techniques that are critical to driving performance improvement and business
excellence.
Six Sigma projects are results-oriented.
Their leaders are held accountable for return on investment
Projects are selected and driven by data
Senior managers sponsor improvement projects
A critical mass of people is trained in quality improvement techniques
Achievement is recognized
Success is celebrated to create momentum and encourage a chain reaction
through the organization
Revealing Those Hidden Costs.
WHY SIX SIGMA WORKS IN AN ORGANIZATION?
Turning around an organization requires a clear understanding of roles and
responsibilities, as well as the proper tools and techniques to accomplish it. Six
Sigma is a proven way to examine, refine, improve processes and eliminate
defects. They are committed to teaching and utilizing it to make your products and
service the standard by which the rest of the industry is measured.
Some tips that show Why Six Sigma Works in as Organization:
To produce higher quality goods and services
To work smarter, not harder
To exceed customer expectations
To earn your competitive edge
To enhance your growth
To promote job security
To map all of your processes and to make them defect free
To learn the language of CHANGE and STATISTICS.
BENEFITS OF SIX SIGMA
The Cost of Quality
SIGMA LEVEL DEFECTS PER MILLION
OPPORTUNITIES
COST OF QUALITY
2 308,537 (non competitive
companies)
Not applicable
3 66,807 25-40% of sales
4 6,210 (industry average) 15-25% of sales
5 233 5-15% of sales
6 3.4 (world class) < 1% of sales
Each sigma shift provides a 10% net income improvement.
Financial Benefits of Six Sigma Projects:
Creates additional/new revenue.
Creates cost savings through tax avoidance.
Enables cost avoidance.
Faster return on investments.
Increases cash flow.
Increases revenue of existing sources.
Increases stock price/shareholder value.
Six Sigma and Financial Gains:
YEAR SAVINGS(IN MILLION)
1997-98 00
1998-99 48
1999-00 192
2000-01 315
2005-06 1180
Organizational Benefits of Six Sigma
Operational Benefits of Six Sigma Projects
Decreases employee work loads for undesirable work.
Eliminates non-value added activities.
Improves employee morale / team spirit.
Improves internal communication between departments and groups.
Improves use of workspace.
Increases employee and process productivity.
Reduces external inputs to processes.
Reduces person-hours.
Reduces process steps.
Simplifies processes and workflow steps.
Information Technology Benefits of Six Sigma Projects
Decreases maintenance/support costs.
Enables service level agreement (SLA) obligations.
Improves application/system performance.
Improves application/system utilization rate.
Increases efficiency of support activities.
Listing out all these benefits clearly shows the potential impact that the six sigma
process can have on any organization. The question is that how does one achieve
six sigma. I will throw some light on that part of it in the application section of this
project from my understanding on how to achieve six sigma. Just to conclude on
why I chose this topic for my project on quality control I would like to say that six
sigma can achieve in the following success factors:
Cost reduction
Productivity improvement
Market share growth
Customer retention
Cycle time retention
Defect reduction
Culture change
Product/service development
Generates sustained success
Sets a performance goal for everyone
Enhances value to customers
Accelerates the rate of improvement
Promotes learning and “cross-pollination”
Executes strategic change
LIMITATIONS /BOTTLENECKS OF SIX SIGMA
1. Delays in project execution : There are often significant delays in Six Sigma
projects and intermediate deliveries. One of the most frequent reasons is
decision-making errors that lead to rework and time-consuming data collection
activities. Other reasons are listed below in relation to Six Sigma project
phases.
2. Faults in Project Phases
a) Define/Identify Phases
Poor project selection and/or problem formulation.
Non-exhaustive list of potential directions for change and/or for
innovation.
Underestimated secondary problems which may arise during
and/or as a result of primary problem solving.
Poor definition of alternative causes and effects and screening of
significant inputs.
Failures caused by narrowing the scope of the projects in the
wrong direction.
b) Measure Phase
Time-consuming data-collection and measurements.
Lack and/or high variability of measurement systems.
Failure in finding root cause.
c) Improve/Design Phase
Lack of really productive and/or innovative ideas for
improvements (upgrade to 4 sigma level and higher) or lack of
competitive design or redesign.
Time and labor consuming DOE.
d) Verify/Control Phases
Non-systematic and non-exhaustive failure prediction
These reasons lead not only to delays, but also increase the Cost of
Poor Quality (COPQ) due to rework. Repeated idea collection,
endless meetings and discussions, screening the alternatives,
measurements and analysis also significantly deteriorate overall
acceptance and support of further deployments.
The need for additional efficient analytical techniques and tools,
which not only accelerate the above decision-making activities but
also make decision-making and problem-solving activities error-
prone, increase their productivity and reduce cycle time, and increase
Roll Throughput Yield of innovative and competitive solutions
through the whole Six Sigma process, is apparent and urgent.
e) Small and medium size companies or business units, who actively enter the
Six Sigma community, have additional limitations when deploying Six Sigma
methodology:
Personnel are limited and often working overtime.
It is often difficult (if not impossible) to find suitable candidates for
Black and Green Belt positions to lead Six Sigma projects on either a
full-time or part-time basis.
Resources, both financial and human, for Six Sigma projects are
extremely limited. Black and/or Green Belts are often left to conduct
their projects on an overtime basis.
Innovative products and services are critical to business survival and
should be introduced or updated as quickly as possible.
Big capital investments are often avoided or postponed, even when their
return on investment is very high and financial justification convincing.
CHAPTER 05
ANALYSIS AND INTERPRETATION
ANALYSIS
All the data that entered the analysis phase was tested against the CHART test
(Complete-Honest-Accurate-Relevant-Timely). Appropriate Six-Sigma tools were
deployed to monitor and analyse performance of processes. For example: The
statistical control chart was used to monitor the quality level of communication.
The control chart was used to monitor the recruitment process. The run chart was
used to monitor the feedback process. .
Process owners, with assistance of Six-Sigma Black Belt conducted the analysis.
Targets were set based on customer requirements and process capabilities. The
analysis aimed to identify the vital parameters that affect process results. They
were identified by using the experience of process participants, correlation analysis
and customer feedback. Other Six-Sigma tools were also deployed. For instance,
Pareto analysis was used to analyse reasons for employees leaving the company.
Improvement
Action followed the analysis. The HR database was updated regularly to
monitor the improvements after implementation. The focus began to shift
from monitoring measures of performance (MOPS) to controlling inputs that
control the MOPS. .
Control
A quarterly HR review was developed and issued by the HR. It contained all
the process analysis results and implementation. It also contained a detailed
Six-Sigma Score Chart.
Achievements
The cost of the HR function reduced by 34%
The turnover reduced by 15%.
HR systems transformed into a cost-effective, fast, proactive department
that averted probable problems.
The morale of the department rose since they evolved from being mere
back room boys to strategic planners.
The reduction of throughput time, defects and rework contributed to
the tangible cost saving. The intangible cost such as poor quality
management was also averted.
Six-Sigma helped evolve a participative management and teamwork.
Six-Sigma now became a way of thinking.
Six-Sigma thus proved to be an effective approach for Quantum to improve its
HR processes.
CHALLENGES FACED WHILE ADOPTING SIX SIGMA
Customizing Six Sigma to an organization’s requirements is a big challenge. The
whole mental attitude of the organization has to change in order to adopt Six
Sigma and realize its benefits. Vikas Bhalla, vice president, Quality & Process
Excellence, EXL Services says, "Quick adoption of Six Sigma depends on how
mature an organization is and where it is headed. During the initial stage of
adoption strategic directions are not very clear as to how to go about adopting the
practice but once they are clear Six Sigma can be customized and adopted
throughout the organization across departments. Fresher’s in an organization are
more open to the Six Sigma practice." Besides this it is important to train people to
adapt to change and new practices. Considerable resources have to be pumped into
training employees on Six Sigma. K L Murughan, deputy general manager iGATE
Global Solutions says, "Applying Six Sigma in the software development process
is very challenging, as it is important to identify and quantify each and every
project in terms of the number of defects."
For TCS it was the enormous size of the company and partly because it was taken
up as a global initiative that it was a challenge to adopt the practice initially. N G
Subramanayam of TCS says, "After adoption of the Six Sigma practice it is easier
for us to deal with companies like GE but dealing with other companies that are
not very comfortable with the Six Sigma concept it is very challenging for us."
Identifying areas for improvement: It is equally challenging for companies to
identify projects and areas that need immediate improvement. Deb of Wipro
Technologies says, "We have set up a mechanism to identify projects upon which
we can improve immediately. However, as business priorities change every year
we ensure that the same holds true for the parameters for selecting the right project
that can reap the maximum benefit if Six Sigma is applied to it." It is also
challenging to identify projects and pain areas in those areas where Six Sigma has
never been adopted before, like some areas in the sales and marketing operations.
The Challenge will be to transform Six Sigma from a tool for improving product
quality to an overall business improvement methodology. The company’s aim will
be at having 100% of its management trained in Six Sigma.
To summarize, the quality system will continue to be based on incremental
optimization, with rigorous implementation and sustenance of the same. The goal
will be to make quality as the No.1 objective for all employees.
INTERPRETATION
1. From an upper management perspective, what has been the principal motivating factor in embracing six sigma?
a. Bottom line resultsb. Market share growthc. Defect reductionsd. Customer focus
Interpretation: In above case principal of motivating factors remains more than 60% in hand of bottom line results. Bottom line results means that sales, demand of products, need of customers etc.
2. In most cases, an improvement team receives the least control and direction during which of the following stages?
a. Formingb. Stormingc. Performingd. Norming
Interpretation: Improvement in any field can be done only by performing and giving good results or output.
3. The purpose of "rolled throughput yield" in the six sigma define step would include all of the following, EXCEPT:
a. Spotting significant differences in yieldb. Providing a baseline metricc. Using the calculation for customer analysisd. Analyzing a process flow for improvement ideas
Interpretation: The purpose of “rolled throughput yield” in six sigma is “using the calculation for customer analysis”
4. Flowcharting of activities and systems is most helpful in detecting:
a. Inappropriate use of resourcesb. Deficiencies in the organizational structurec. FMEA risk areasd. Improper use of statistical methods
Interpretation: flow charting of activities and system is most helpful in detecting “inappropriate use of resources”.
5. A null hypothesis requires several assumptions, a basic one of which is:
a. That the variables are significantb. The variables are independentc. That the sample size is adequated. That the confidence interval is ± 2 standard deviations
Interpretation: A null hypothesis requires several assumption because the variables are independent such as customer need, technology etc.
6. Which three of the following four techniques could easily be used to display the same data?
I. Stem and leaf plotsII. Box plotsIII. Scatter diagramsIV. Histograms
a. I, II, and III only b. I, II, and IV onlyc. I, III, and IV onlyd. II, III, and IV only
Interpretation: All above four options helps to display data but the most appropriate and effective technique is boxplots.
7. I have done Six-Sigma project in my college:a. Yesb. No
Interpretation: Yes I have done my six sigma project in my college.
CHAPTER 06
FINDINGS AND CONCLUSIONS
CRITICAL SUCCESS FACTORS
Senior Leadership:
Mobilize for change
Provide Strategic vision and purpose
Be actively involved at every stage
Ownership:
Incentives for change
Ensure process user participate in redesign and accept
need for change (forcing factor)
Publicly reward enthusiastic participation
Business Focus:
Customers and Products
Set clear Objectives
Measure value in outcomes rather than inputs
Action:
Change How People Think and Work
Recognize and overcome the barriers to change
Employ effective human resource strategies
SUGGESTIONS
TOP 10 TIPS FOR MANAGING SIX SIGMA
1. Leadership/top management commitment is essential. Secure the
Top management commitment by first training them. This training
should consist of an introduction to Six Sigma, tools and techniques
used, and the roles and responsibilities of the management as
Champions. The Leadership team has to be totally convinced of the
benefits of Six Sigma. In addition, executive management should form a
Steering Committee which will now ensure that:
a. Organizational goals are aligned with Six Sigma projects
b. Resources are planned for and roadblocks removed
c. A person to lead this effort in the organization is selected. S/he
will be trained as a Black Belt and will report to the Steering
Committee. They must select their best performing person for this
job.
2. All leaders should be trained as Six Sigma Champions. This is
normally a 2-day training session that ensures that the Champions learn
to ask the right questions of Six Sigma practitioners. This group includes
the Steering Committee, process owners, and functional managers (like
Production Manager, Maintenance Manager, etc.).
3. Include Six Sigma planning within the business-operating plan.
Ensure the when the Operating Plan for the next year(s) is being made,
Six Sigma Project savings become an input for that plan.
4. Select the right consultant to train your Belts. There are a lot of
mediocre programs floating around being offered even by reputed
training institutions. One point to remember is that you will be best
trained by a Six Sigma practitioner (Black Belt or Master Black Belt)
rather than an academic who will teach you only theory. A typical Black
Belt training program is spread over 4-5 months, and a Black Belt will
need to complete two projects before s/he is certified (which will
typically take longer than 6 months). A Green Belt training program is
spread over 4 months and requires one project for certification. At
Owens Corning I have designed the White Belt (3 day) training program
to help employees on the shop floor lead their own projects (though
smaller in size and duration).
5. Ensure that the Return On Training Investment is at least 20 times.
This can be done by good project definition and correct practitioner
allocation.
6. Gets the movement going at the shop floor level. Rather than having
a few Black Belts or Green Belts doing projects all the time, train shop
floor operators and supervisors in the use of tools and techniques
(White Belt program). This way the ownership is theirs and they are
doing the improvements on their own. Reward well the project leaders
and their team members when they receive certification. Make it such
that other people aspire to get this certification. The certified candidates
should be adequately compensated during their annual performance
review.
7. Create a certification process. Ensure that the certification process is
rigorous and true. This will ensure that only after successful completion
of projects and demonstrating proper use of tools/techniques, the
practitioner candidate will get certified. The Functional Area Manager,
Finance Leader and Six Sigma reviewer should sign on the certificate
declaring that the benefits have actually started accruing.
8. Develop a mentoring process. Ensure that proper
guidance/handholding is being done by experienced practitioners for
the new candidates after their training. This will ensure that the course
corrections are made regularly and the projects get completed on time.
9. Ensure financial validation of projects. Make sure that the Finance
Leader is signing off on the project's actual savings. The finance
department should do the reporting of the metrics and savings in the
control phase of the projects. The project metrics should continue to be
tracked after the project is declared completed. This tracking
responsibility should be on the project leader or process owner if
handed off by the project leader.
10. Never allow Six Sigma to be classified as a Quality Manager's
job. A Quality Manager's role is distinct and s/he will not be in position
to manage the Six Sigma process as for the entire business.
CONCLUSION
Six sigma is a business initiative that helps the organization meet its changing
business need. It is widely used to provide a structured approach to improve
process but many organizations have found that the return of an organization's
effort will be much more favorable to the "bottom line" if the six sigma
methodology was focused on the design and not the product alone. Although six
sigma brings a new direction to quality and productivity improvements.
o < $25 million (M)o $25 M to < $100 Mo $100 M to < $500 Mo $500 M to < $1 billion (B)o $1B or more
(ii) Sample B.
Introduction and your status
1. I am Designer or Non-Designer (Marketer, Engineer or others) in my organization.a. Designerb. Non Designer
2. I have a work experience for:a. 1-3 yearsb. 3-6 yearsc. Over 6
3. I have learned Six-Sigma education in my organisation:a. Yesb. No
4. I have done Six-Sigma project in my organisation:a. Yesb. No
(iii) Sample C.
Six-Sigma’s Impact & Six-Sigma and Creativity
1. Could you think that Six-Sigma has significantly improved your organization's profitability?a. High (100%-60%)b. Middle (60%-10%)c. Low (Below 10%)d. Neither
2. Could you think that Six-Sigma has significantly improved processes of your work at organization?a. High (100%-60%)b. Middle (60%-10%)c. Low (Below 10%)d. Neither
3. Could you think that Six-Sigma process has improved design process at your organization?a. Agreeb. Disagreec. Neither
4. Do you think that Six-Sigma could be interrupted your creative work at your organization?a. Agreeb. Disagreec. Neither
(iv) Sample D.
Design process, Six-Sigma and Customer Relationship Management & Using Six-Sigma Tools
1. If you are using or done your project with Six-Sigma, could you think that it is necessary to get for customer satisfaction through your work?a. Agreeb. Disagreec. Neither
2. Could you think that Six-Sigma has significantly improved customer satisfaction at your organization?a. High (100%-60%)b. Middle (60%-10%)c. Low (Below 10%)d. Neither
3. Could you think Six-Sigma uses too many tools?a. Agreeb. Disagreec. Neither
4. Could you think that the complexity of the Six Sigma methodologies varies with the complexity of the project?a. Agreeb. Disagreec. Neither