Six Sigma

PRESENTED BY:

P.V.VEENA (C0)

CONTENTSMEANING OF SIX SIGMAWHEN SIX SIGMA ?HISTORY OF SIX SIGMAKEY ELEMETS OF QUALITYSRATAGY OF SIX SIGMAIMPLEMENTATION OF SIX SIGMALEVELS OF SIX SIGMAAPPROCHES OF SIX SIGMACONCLUSION

INTRODUCTIONGlobalization and instant access to and

services have changed the way our customers conduct business. Old business models no longer work. Today’s competitive environment leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is why Six Sigma Quality has become a part of our culture.

WHAT IS SIGMA ?

A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.

Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance.

MEANING OF SIX SIGMAFirst, what it is not! It is not a secret society, a slogan or certification not a metric like percentage .Six Sigma is a highly disciplined process that helps us to focus on developing and delivering near-perfect products and services.The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible. Six Sigma has changed the DNA of GE(General Electric) — it is now the way we work — in everything we do and in every product we design.

WHEN SHOULD SIX SIGMA BE USED?

Its usage depends on the type of business. In general,

“If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.”

HISTORY OF SIX SIGMAMotorola company that invented Six Sigma.The term “Six Sigma” was coined by Bill Smith,

an engineer with Motorola

Late 1970s - Motorola started experimenting with problem solving through statistical analysis

1987 - Motorola officially launched it’s Six Sigma program

Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort

Key Elements of Quality...Customer, Process and Employee

There are three key elements of quality: customer, process and employee. Everything we do to remain a world-class quality company focuses on these three essential elements.

The Customer….

Delighting CustomersCustomers are the center of GE’s universe: they define

quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. In every attribute that influences customer perception, we know that just being good is not enough. Delighting our customers is a necessity. Because if we don’t do it, someone else will!

The Process…Outside-In ThinkingQuality requires us to look at our business from

the customer’s perspective, not ours. In other words, we must look at our processes from the outside-in. By understanding the transaction lifecycle from the customer’s needs and processes, we can discover

what they are seeing and feeling. With this knowledge, we can identify areas where we can add

significant value or improvement from their perspective.

The Employee…

Leadership CommitmentInvolving all employees is essential to GE’s

quality approach. GE is committed to providing opportunities and incentives for employees to focus their talents and energies on satisfying customers. All GE employees are trained in the strategy, statistical tools and techniques of Six Sigma quality. Training courses are offered at various levels:

Quality Overview Seminars: basic Six Sigma awareness.

Team Training: basic tool introduction to equip employees to participate on Six Sigma teams.

con..

Master Black Belt, Black Belt and Green Belt Training: in-depth quality training that includes high-level statistical tools, basic quality control tools, Change Acceleration Process and Flow technology tools.

Design for Six Sigma (DFSS) Training: prepares teams for the use of statistical tools to design it right the first time.

Quality is the responsibility of every employee. Every employee must be involved, motivated

and knowledgeable if we are to succeed.

The Six Sigma StrategyTo achieve Six Sigma quality, a process must produce no more than

3.4 defects per million opportunities. An “opportunity” is defined as a chance for nonconformance, or not meeting the required specifications. This means we need to be nearly flawless in executing our key processes. Six Sigma is a vision we strive toward and a philosophy that is part of our business culture.

Key Concepts of Six SigmaAt its core, Six Sigma revolves around a few key concepts.Critical to Quality: Attributes most important to the

customer.Defect: Failing to deliver what the customer wants.Process Capability: What your process can deliver.Variation: What the customer sees and feels.Stable Operations: Ensuring consistent, predictable

processes to improve.Design for Six Sigma: Designing to meet customer needs

and process capability.

SIX SIGMA AT MOTOROLAMotorola 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

WHO ARE IMPLEMENTING SIX SIGMA Financial – bank of America, GE

Capital,HDFC,HSBC,American Express ITES- ICICI One source, Accenture, Satyam PO, IBM Daksh

Hospitality- ITC Hotels, GRT Hotels, Apollo Hospitals

Manufacturing- GE Plastic, Johanson and Johnson, Motorola, Nokia, Microsoft, Ford, Wipro, Nestle, Samsung, Samtle

Telecom- Bharti Cellular, Vodafone, Siemencs,Tata

IT- Wipro, Satyam,Acenture, Infosys, TCS, Birla soft

LEVEL OF SIX SIGMA IMPLEMENTATION

CONTINUE…1. Six Sigma Champion: Champions undergo five days of

training and are taught how to manage projects and act as advisors to various project teams.

2. Green Belts: They undergo two weeks of training that includes project-oriented tasks. They act as team members to the Six Sigma project team. Their cooperation and involvement is necessary for projects success.

3. Black belts: They receive four weeks of trainings and are directly involved in the implementation of Six Sigma Projects. They are the project leaders and go through in-depth training on Six Sigma approach and tools and work full time on the project.

4. Master Black Belts: These are the people who conduct Six Sigma Training and also have on the job training and experience

APPROACHES OF SIX SIGMADMAIC APPROACH(Define

Measure Analyze Improve Control )THIS IS ORGANIZATIONAL BASEDDMADV APPROACH(Define Measure

Analyze Design Verify)THIS IS BASED ON CUSTOMER NEEDS AND SATIFACTIONS

DMAIC APPROACHThis approach is undertaken to improve existing business process

CONTROL

DEFINE

MEASUREANALYSE

IMPROVE

CONTINUE…

1.Define high-level project goals and the current process.

2.Measure key aspects of the current process and collect relevant data.

3.Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.

4.Improve or optimize the process based upon data analysis using various tools.

5.Control to ensure that any deviations from target are corrected before they result in defects.

DMADV APPROACHThis approach is undertaken when there is a need to create new design or product:

DEFINE

MEASURE

ANALYZE

DESIGN

VERIFY

CONTINUE…

Define design goals that are consistent with customer demands and the enterprise strategy.

Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.

Analyze to develop and design alternatives, create a high-level design

and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may require simulations.

Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.

DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma

DIFF. B/W DMAIC AND DMADVDMAIC DMADV

Defines a business process.

Measuring current process.

Identify root cause of the recurring PROBLEMS.

Improvements made to reduce defects.

Keep check on future performance.

Define customer needs.

Measure customer needs & specification.

Analyze options to meet customer satisfaction.

Model is deigned to meet customer needs.

Model put through simulation tests for verification .

PROCESS SIGMA TABLESIGMA LEVEL DEFECT RATE YIELD

1 691,500 dpmo 30.85%

2 308,770 dpmo 69.10000%

3 66,811 dpmo 99.33000%

4 6,210 dpmo 99.38000%

5 233 dpmo 99.97700%

6 3.44 dpmo 99.99966%

CONCLUSIONSix Sigma is methodology used for:•Aligning key business processes to achieve those requirements.•Utilizing rigorous data analysis to minimize data variation in those processes.•Driving rapid and sustainable improvement to business processes.