SIX SIGMA CONCEPTS.pptx

TOTAL QUALITY MANAGEMENT AND SIX SIGMA.HOW GE, MOTOROLA AND OTHER TOP COMPANIES ARE HONING THEIR PERFORMANCE?

ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY. GREATER NOIDA.

ADVANCE MANAGEMENTCONCEPTS

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BUSINESS IS ALL ABOUT QUALITY.

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DID ANCESTORS APPLIED SIX SIGMA IN THEIR LIFE TOO?

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What is Quality?

An essential and distinguishing attribute of something or someone.

A degree or grade of excellence or worth.

A characteristic property that defines the apparent individual nature of something

Adjective of quality high social status and Of superior grade.

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SIX SIGMA AND COMPANIES.

Six Sigma initiatives have tallied billions of dollars in savings, dramatic increases in speed, strong new customer relationships—in short, remarkable results and rave reviews.

In 1991 also, Allied Signal, (a large avionics company which merged with Honeywell in 1999), adopted the Six Sigma methods, and claimed significant improvements and cost savings within six months

In 1995, General Electric's CEO Jack Welch decided to implement Six Sigma in GE, and by 1998 GE claimed that Six Sigma had generated over three-quarters of a billion dollars of cost savings.

By the year 2000, Six Sigma was effectively established as an industry in its own right, involving the training, consultancy and implementation of Six Sigma methodology in all sorts of organizations around the world.

TILL 2010, There are more than 60 companies, who adopted the Six Sigma.

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SIX SIGMA AND 60 COMPANIES

GE ELECTRIC MOTOROLA MUMBAI DABBAWALAS 3M AIR CANADA ALCAN SAMSUNG DHL US NAVY, ARMY AND AIR CORPS. XEROX HSBC

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What is six sigma?

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SIX SIGMA

Sigma is a letter in the Greek alphabet used to denote the standard deviation of a process (standard deviation measures the variation or amount of spread about the process mean).

A process with "Six Sigma" capability means having 12 standard deviations of process output between the upper & lower specification limits. Essentially, process variation is reduced so that no more than 3.4 parts per million fall outside of the specifications limits. The higher the sigma number, the better.

Bill Smith first formulated the particulars of the methodology at Motorola in 1986. Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects,based on the work of pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others

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SIX SIGMA

Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.

"...Six Sigma as a Metric: The term "Sigma" is often used as a scale for levels of 'goodness' or quality. Using this scale, 'Six Sigma' equates to 3.4 defects per one million opportunities (DPMO). Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.."

"...Six Sigma as a Methodology: As Six Sigma has evolved, there has been less emphasis on the literal definition of 3.4 DPMO, or counting defects in products and processes. Six Sigma is a business improvement methodology that focuses an organization on:

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Simple six sigma (SSS)

Let’s get real here. Is it truly necessary to go for zero defects? Why isn’t 99.9% defect-free good enough? Here are some examples of what life would be like if 99.9% were "good enough”

4,000 INCORRECT DRUG PRESCRIPTIONS PER YEAR 3,000 NEWBORNS ACCIDENTALLY FALLING FROM

THE HANDS OF NURSES OR DOCTORS EACH YEAR 400 LETTERS PER HOUR WHICH NEVER ARRIVE AT

THEIR DESTINATION 13 WRONG DRUG PRESCRIPTIONS PER YEAR 10 NEWBORNS ACCIDENTALLY FALLING FROM THE

HANDS OF NURSES OR DOCTORS EACH YEAR 1 LOST ARTICLE OF MAIL PER HOUR

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SIX SIGMA LEVELS

SIGMA LEVEL

DPMO:DEFECTS PER MILLION OPERATIONS

Percent defective

Percentage yield

1 691462 69% 31%

2 308538 31% 69%

3 66807 6.7% 93.3%

4 6210 0.62% 99.38%

5 233 0.023% 99.977%

6 3.4 0.00034% 99.99966%

7 0.019 0.0000019% 99.9999981%

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IMPLEMENTATION OF SIX SIGMA

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DMAIC: APPROACH 1 IN SIX SIGMA

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DMAIC: APPROACH 1 IN SIX SIGMA

D - Define opportunity M - Measure performance A - Analyze opportunity I - Improve performance C - Control performance, and optionally:

T - Transfer best practice (to spread the learning to other areas of the organization)

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DEFINE+MEASURE+ANALYZE+IMPROVE+CONTROL

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Six sigma and 6 steps

Step #1 - Identify the product you create or the service you provide

In other words ... WHAT DO YOU DO? Step #2 - Identify the Customer(s) for your

product or service, and determine what they consider important i.e. Customer Requirements

In other words ... WHO USES YOUR PRODUCT AND SERVICES?

Step #3 - Identify your needs (to provide product/service so that it satisfies the Customer)

In other words ... WHAT DO YOU NEED TO DO YOUR WORK?

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Six sigma and 6 steps

Step #4 - Define the process for doing your work In other words ... HOW DO YOU DO YOUR WORK?

Step #5 - Mistake-proof the process and eliminate wasted efforts using... In other words ... HOW CAN YOU DO YOUR WORK BETTER?

Step #6 - Ensure continuous improvement by measuring, analyzing and controlling the improved process usingDMAIC - (Define, Measure, Analyze, Improve, Control)

In other words ... HOW PERFECTLY ARE YOU DOING YOUR CUSTOMER-FOCUSED WORK?

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SIX SIGMA APROACH 2: DMADV

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SIX SIGMA APROACH 2: DMADV

DMADV - An alternative/substitute abbreviation to DFSS (Design For Six Sigma), and like DFSS DMADV is central to Six Sigma initiatives. DMADV more specifically describes a method comprising linked steps:

Define Measure Analyze Design Verify for ensuring that products and processes are

designed at the outset to meet Six Sigma requirements.

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Quality management tools and methods used in Six Sigma

5 WHY? HISTOGRAMS ANALYSIS OF VARIANCES SIPOC analysis (Suppliers, Inputs, Process,

Outputs, Customers) Failure mode and effects analysis (FMEA). CTQ tree COST BENEFIT ANALYSIS Business Process Mapping and 45 other tools too.

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SIX SIGMA-BUSINESS HABITS

THE MAJOR CHANGES AFTER APPLYING SIX SIGMA IN YOUR BUSINESS ARE FOLLOWINGS:

Cost reduction Productivity improvement Market-share growth Customer retention Cycle-time reduction Defect reduction Culture change Product/service development And many more.

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WHY SIX SIGMA?

Six Sigma impacts BOTTOM LINE (Profits) .

Six Sigma drives STRATEGY execution. Six Sigma generates robust, FLEXIBLE

business process. Six Sigma Improves HUMAN

PERFORMANCE across entire organization.

Six Sigma is highly SCALABLE. Six Sigma is a low risk INVESTMENT.

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Six sigma and it’s benchmarks

Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.

Green Belts, the employees who take up Six Sigma implementation along with their other job responsibilities, operate under the guidance of Black Belts.

Yellow Belts, trained in the basic application of Six Sigma management tools, work with the Black Belt throughout the project stages and are often the closest to the work.

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BIBLIOGRAPHY AND CONTRIBUTORS

WIKIPEDIA GOOGLE PERRY HALL- A SIX SIGMA PLANNER. ACER LAPTOP 4736Z DELL LAPTOP INSPIRON. HP 4GB PEN DRIVE BY ABHINEET PANJWANI. DELL PROJECTOR AND ALL THOSE WHO HELPED TO MAKE IT

POSSIBLE.

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Run more faster than aero plane because genius like us invented aero plane, not aero plane invented us.

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