Six sigma in various industries

© Benchmark Six Sigma. All Rights Reserved 1

Presentation by

Benchmark Six Sigma


To show applications of Six Sigma in various Industries.

To highlight the linkage of Engineering and Management Studies to Six Sigma application


• Helps organizations produce products and services better, faster and cheaper.

• Remove Wastage

• Maximize Customer Satisfaction

• Maximize Product/Service Quality. (Develop Close to Zero Defect Products/Services)

• Increase Sales

• Increase overall Organizational Productivity

• Save Costs

• Make the Organization a Data-driven organization

• Faster Cycle Time

• Empower Employees


Organizations have successfully benefitted from tools and concepts

that are covered extensively in Six Sigma for decades. Some examples

are :• Statistical Process Control which uses Control Charts

• Total Quality Management

• Process Management through Measurements of outputs

• Project Management

• Application of Statistical concepts like Hypothesis testing, Regression Analysis and Design of Experiments

However, Benchmark Six Sigma has packaged these tools (through Green Belt, Black Belt and MBB programs) in a manner that makes it many times more powerful


Six Sigma is a “Industry Independent” methodology and has been

successfully applied across:

• Manufacturing Industry including Automotives, Aerospace, Health Equipment, FMCG, Electronic Goods, Continuous Process Industries, Textiles, etc.

• Service Industry including Telecom, Banking and Financial Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo movement, Support Services, HR services, Marketing Services, etc.

• R&D organizations or in R&D functions of various organizations


Company Annual Savings

General Electric $2.0+ billion

JP Morgan Chase *$1.5 billion (*since inception in

1998)

Texas Instruments $600 million

Johnson & Johnson $500 million

Honeywell $600 million


• Six Sigma Methodology has been successfully applied in all Industries

• Benchmark has had the opportunity to train close to 6000 persons from all

Industries

• Based on the combined experience of Benchmark Consultants, next few

slides show the areas in which Six Sigma has been successfully applied

in some of the Industries we have worked with (a sample).

• We shall also look at select companies in each Industry that have

successfully applied Six Sigma

• We would also see which Engineering specializations have contributed to

success in the highlighted areas


Industry Examples of Six Sigma Applicability

Automotives i. Enhancing Supplier Quality

ii. Improving Safety & Reliability of Finished Vehicles

ii. Reducing Manufacturing defects at each stage

iv. Using Design FMEA to understand and prevent any possible design failures

v. Reducing variation in all the critical parameters that impact the finished product

vi. Improving the overall Incoming Material Quality or parts Quality

vii. Optimizing Inventory levels for all major parts

viii. Reducing time to manufacture

ix. Reducing Design defects

x. Reducing Supplier Lead time i.e the time take by each supplier to deliver goods

xi. Improving First time yield and efficiency of each step in the Manufacturing assembly line.

Few Examples of Companies: Tata Motors, Ford, GM, Maruti, Telco.

Engineering Specializations who contribute : Mechanical, Electrical, Engineering Design, Computer Science, IT



Continuous Process Plants

i. Improving overall Yield of each shift

ii. Reduce scrap or spilled materials

iii. Reduce the Process failures or breakdowns

iv. Increase Plant capacity utilization

v. Improve Operator Productivity

vi. Reduce time to restart the process after failure

vii. Create mechanisms to prevent failures at each stage

viii. Improve overall process stability & control

Few Examples of Companies: Reliance Industries Ltd, Asian Paints, GE plastics, Wipro consumer goods

Engineering Specializations who contribute : Chemical, Mechanical, Electrical, IT, Product Design and Engineering Design



Engineering Parts Manufacturing

i. Reduce Manufacturing cycle time (time of order to delivery)

ii. Improve Customer Service performance scores

iii. Reduce or optimize inventory levels

iv. Reduce scrap or cost of poor quality

v. Reduce warranty costs

vi. Reduce rejections due to design errors

vii. Improve parts design process to meet specifications 100% of times

viii. Improve parts reliability by identifying & optimizing critical factors that ensure reliability

Few Examples of Companies: Gates India Ltd., Medium to small scale suppliers of parts

Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science



Textiles/ Fashion houses/ Garments

i. Eliminating manufacturing errors/defects

ii. Improving first sample approval percentages while working with buyers

iii. Improving buyer satisfaction levels

iv. Increasing repeat business

v. Improving supplier evaluation processes

vi. Improving processes at the source (including fabric purchase and inspection, stitching, embroidery, packing and shipping) to reduce rejections at later stages.

vii. Reducing costs

viii. Reducing delays

Few Examples of Companies: Reliance Industries, Raymonds, Grasim

Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science



Information Technology :Software development

i. Reducing the overall Software development times

ii. Reducing the number of errors found during product usage

iii. Improving the estimation process to reduce time and cost overruns

iv. Improving the requirements gathering process to reduce rework

v. Reducing complaints resolution time

vi. Creating systems to detect defects early in the process (to reduce high costs associated with defects identified later)

vii. Reducing appraisal cost per defect by phase and appraisal type (by project and in total)

viii. Reducing rework (All work done to fix an application after it has been delivered to a customer is rework. This includes corrections to features or functions that are incorrect, and also may include "missed requirements" - things the customer expected but did not receive.

Few Examples of Companies: TCS, Infosys, IBM, HP, Patni, Birlasoft

Engineering Specializations who contribute : Computer Science, IT, Electronics and Communications mainly. All other branches of engineering for specific domain application.



Telecom i. Improving ARPU (Average revenue per unit)

ii. Reducing Billing errors

iii. Reducing timeliness of billing

iv. Improving the Call Completion rate (i.e Network Quality)

v. Reducing network congestion

vi. Development of new features, processes for new services

vii. Improving accuracy, timeliness and completeness of new connections

viii. Improving accuracy, timeliness and completeness of customer communication.

ix. Reducing Customer churn

x. Reducing network congestion

xi. Improving call routing procedures

xii. Improving sales productivity

Few Examples of Companies: Bharti Airtel, France Telecom, Reliance Infocomm, Siemens

Engineering Specializations who contribute : Telecom , Electronics and Communication, Product Design , Computer Science, IT



R&D/ Product Design i. Reducing the time to market

ii. Reducing rework through synergy between R&D and the customer facing staff.

iii. Improving the overall performance & quality of product from start

iv. Minimizing product failures by ensuring robust designs

v. Improving quality of research process & experiments by providing mass education in Experimental design and Multivariate studies

vi. Improving quality of design reviews (data driven reviews)

vii. Reducing defects in final product thereby saving on warranty costs.

Few Examples of Companies: GE Labs, Boeing, Agilent Laboratories, Motorola,Microsoft, Semiconductor Industry

Engineering Specializations who contribute : Product Design, Electronics & Communication, Computer Science, IT and others depending on type of applicationdesigned


Gains knowledge about the Engineering/ Management Disciplines and applications from the text books Engineering - Learning about Engineering concepts,

applications, working in laboratories, running experiments & drawing inferences, understanding ketyelements for technical success.

Management – Learning about Management concepts, applications, business organization, strategies, functional areas, understanding key elements for business success.

Getting exposed to number of mathematical and statistical models as part of course


After undergoing Six Sigma training: Understands how engineering and/or management

knowledge can be applied to make an effective contribution in an actual organizational environment.

Supplements technical skills learned during Engineering with practical knowledge

Can take up Summer Internship Project as a small Six Sigma Project

Utilizes Six Sigma knowledge as a competitive advantage in the job search and career progress.


1. Message for Students pursuing full time professional courses.

Is Six Sigma a suitable additional learning for students? Why? How does it help?

2. What is Six Sigma?

What are the key ideas in this methodology? Why is it so successful?

3. Function specific applications of Six Sigma

Which functional areas have Six Sigma applicability?

4. Six Sigma personal success stories

How people have succeeded with Six Sigma? What are their success stories?

5. Six Sigma corporate success stories

Which companies have benefited? Sample benefits?

6. About Benchmark Six Sigma Who is Benchmark Six Sigma? What are the Services? Who are their clients?

Six sigma in various industries

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