SIX SIGMA AND MUMBAI DABBAWALA

WELCOME TO SIX SIGMA PRESENTATION

Sandeep ManeAnkitSonam ThakurMadhuri LotankarPratik Mane

PRESENTED BY

DISSATISFY YOUR CUSTOMER

DISSATISFY

• Satisfying the customer through quality products and services only but trying maintain long term relationship through perfection in every thing they do to be world class

DEFECT

• It is better to eliminate defect in our product & service delivery quality rather than trying to minimize final defective out put

CUT THROAT COMPETITION

• We need not only satisfy our external customer but all employee, shareholder, supplier, etc.

• Need to have quality product & service at lower possible cost & zero defect

TQM

• Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.

WHAT IS SIX SIGMA

WHAT’S IN A NAME?

• Six sigma is represent a statistical measure and a management philosophy

• The Greek letter Sigma, used mathematically to designate standard deviation is the measure used to determine how good or bad the performance of a process is

• Means how many mistake company commits while accomplishing task

SIX SIGMA = PERFECTION

• 1 Six Sigma = 700,000 Defects/ million opportunities

• 2 Six Sigma = 3000,000Mistake/ million opportunities

• 3&4 Six Sigma = 67,000 & 6,000 Mistake / million opportunities

• 3.8 Six SIGMA = 99% right of the time

1% ERROR

• 1% Error can add up lot of mistake pretty fast

• Getting it right 99% of the time is equal of 20,000 lost articles\Hour

• 5,000 bitched surgical procedure/ Week

• 4 Accident\day at major airport

WHAT SO GREAT ABOUT SIX SIGMA?

MENTOR

• Six sigma gives employees well defined roles & clear structures to their task

• Six sigma project are usually run by guys in the middle of the organization

OPERATE IN MARKET PLACE IN TWO WAY’S

• Make more money by coming up with great invention, hiring away some real star

• Buying other companies

TWO MISCONCEPTION ABOUT SIX SIGMA

1.QUALITY WITH MISSING THE POINT

• The goal is not simply to improve quality for the sake of improvement quality, but to make customer happier & add more to the bottom line

• If you are improving quality but sill upsetting customer or losing money you are missing the point

2.QUALITY SAVE MONEY

• Most company thinking improving quality cost money

• Six sigma companies turn that thinking around

• Quality save money because there fewer throw-outs, fewer warranty payouts & fewer refund’s & doing all that increase profit’s

CRUCIAL DIFFERENCES

BETTER TO FIX LEG OR GET NEW HORSE

• Some program still focusing on only on the end product where they spend all their time trying new way to identify the bad product you have already made and make Shure they get throw out before they get to the customer

FIRST GO FOR BIGGEST PROBLEM

• In six sigma first pick the one problem to solve at a time as a project

• First go to the biggest problem then put some one in the middle like Black belt

• Black belt has only one job to complete the project given to them

• & they also get all help they need from champion their supervisor & the Green belt their support staff

METHODOLOGY

SIX SIGMA METHODOLOGY

• Six Sigma is a process oriented methodology designed to improve business performance by improving specific areas of strategic business processes.

• Improvements can be of two types: improving the existing process or designing a new process altogether. When we have an existing process and we want to improve the process we deploy the DMAIC methodology. While designing a new process or completely revamping the existing process the Design for Six Sigma or IDOV methodology is deployed.

DMAIC DFSS

Structured and iterative process improvement methodology

Rigorous approach to designing processes that will exceed customer expectations

Focus on defect reduction

Focus on defect prevention

DMAIC v/s DFSS

Define Define the problem.Define the customer(s) and the requirements.Define the current capability.Define the key processes that will have the greatest impact on customer.

Measure Identify the statistical measures to monitor the key process.Set up the data collection plan.Measure the process

Analyze Determine the analysis tools and methods to be used.Summarize the data measured.Run the analysis and determine the root causes, effects, etc.

Improve Improve and Implement.Focus on developing process/technology to improve the root cause.Test the method on sample process and validate the improvement.

Control Standardize and document the process and implement the plan.Monitor the process and feedback the results back to the process for continuous improvement.

DMAIC Methodology

Identify Develop a team.Create team charter.Gather VOC.Perform competitive analysis.Develop CTQs and formally tie design to VOC.

Design Identify functional requirements.Develop alternative concepts.Evaluate alternatives and select a best-fit concept.Deploy CTQs and predict sigma capability.

Optimize Determine process capability.Develop detailed design elements.Predict performance.Optimize design.

Verify Test and validate the design.Share feedback with manufacturing and sourcing to improve future manufacturing and designs.

DFSS (IDOV) Methodology

REQUISITE FOR SUCCESSFUL IMPLEMENTATION

• LEADERSHIP/TOP MANAGEMENT COMMITMENT IS ESSENTIAL • ALL LEADERS SHOULD BE TRAINED AS SIX SIGMA CHAMPIONS• INCLUDING SIX SIGMA PLANNING WITHIN THE BUSSINESS OPERATING PLAN • SELECT THE RIGHT CONSULTANT TO TRAIN YOUR BELTS • ENSURE THAT RETURN ON TRAINING INVESTMENT IS AT LEAST 20 TIMES • GET THE MOVMENT GOING AT THE SHOP FLOOR LEVEL • CREATE A CERTIFICATION PROCESS• DEVELOP A MENTORING PROCESS• ENSURE FINANCIAL VALIDATION OF PROJECT S• NEVER ALLOW SIX SIGMA TO BE CLASSIFIED AS A QUALITY MANAGER’S JOB

…………………

REWARDS OF SIX SIGMA

……….

• IMPROVED RELIABILITY & PREDUCTABILITY OF SOFTWARE PRODUCTS AND SERVICES

• INCRESED VALUE TO THE CUSTOMER AND SHAREHOLDERS• IMPROVEMENTS IN ORGANIZATIONAL MORALE• INCREASE MARKET VISIBILITY• ORGANIZATIONAL RECOGNITION• SIGNIFICANT REDUCTION IN DEFECT • INSTITUTIONALIZATION OF A “PROCESS” MINDSET

CHALLENGES AND CRITICISM

……….

• IT IS NOT QUICK FIX OR RECIPE FOR SUCCESS• IT REQUIRES TRAINING AT ALL MANAGERIAL LEVELS• IT REQUIRES CULTURE CHANGE IN THE WHOLE ORGANIZATION• IMPLEMENTATION TEND TO BE UNEVEN AND LAPES OCCURE FREQUENTLY• PEOPLE MUST NOT FEAR GIVING “BAD NEWS”• DESIGN IS CRITICAL & YET MANY it ORGANIZATION CNTINUE TO GO STRAIGHT

FROM POOR REUIREMENTS INTO CODING WITHOUT THE BENEFITS OF EVEN ONE DESIGN REVIEW

MUMBAI DABBAWALAS REDEFINE SIX SIGMA THEORY

WHAT IS NMTBSA?

(Nutan Mumbai Tiffin Box Suppliers Association)

History : Started in 1880 Charitable trust : Registered in 1956 Avg. Literacy Rate : 8th Grade Schooling Total area coverage : 60 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

WORKING OF NMTBSA

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 month’s from customers.

• Zero % fuel Zero % investment• Zero % modern technology Zero % Disputes• 99.9999% performance100 % Customer Satisfaction

CODING SYSTEM

Initial Coding System used colored threads to mark 7 Islands

Then Utilized thrown away cotton waste from tailors

Now using color markers:

E :: Code for Dabbawala Street at residential stationVLP :: Residential Station Ville Parle3 :: Code for Destination station.E.G :: Church gate9 :: Code for Dabbawala at Destination.Ex :: Express towers ( Building name)12 :: Floor no. in the building.

JOURNEY OF DABBAWALA

Pick up Dabba from Residence/Caterer

and bring it to Andheri Station.

*Journey in Local Train*

Unloading and Sorting at

Destination Station.

Delivery to respective customers.

Collection of Empty Dabba.

Sorting at Destinations station.

Returning Dabba to Residence/Caterer.

9:30 A.M- 10:30 A.M 10:34- 11:20 A.M 11:20- 12:30 P:M

12:30 - 1:00 P.M 1:15- 2:30 P.M2:48- 3:30P:M

3:30- 4:40 P.M

SIX SIGMA CERTIFICATION

In 1998, Forbes Global magazine conducted a quality assurance study on the Dabbawalas' operations

Gave Rating of 99.999999

Dabbawalas made one error in six million transactions.

Stood High along with MNC’s like Motorola, GE etc…

Dabbawalas got ISO 9001- 2000 for Excellence in service

ACHIEVEMENTS

Documentaries made by : • BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY,

SAHARA SAMAY, STAR TV, CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.

CASE STUDY made by : • ICFAI Press Hyderabad & Bangalore• Richard Ivey School of Business – Canada• Also, Included in a subject in Graduate School of

Journalism University of California, Berkeley

Invitations from : • CII for conference held in Bangalore, IIML, IIMA, CII

Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune, Rotary Club – Bangalore, NIQR at Chennai

ACHIEVEMENTS

• World record in Best Time management.

• Name in “GUINESS BOOK of World Records”.

• Registered with Ripley's “ believe it or not”.

• Invited for marriage of Hon. Prince Charles of England on 9th April, 2005

• Documentary called “Dabbawalas, Mumbai's unique lunch service”

• by two Dutch filmmakers in 1998.

LETTER FROM PRINCE CHARLES