Six Sigma Green Belt
By:D. P. Sudame
Black Belt, Six Sigma, Management Institute, of Dr. Mikel J. Harry USA
Six Sigma Six Sigma
At At
A GlanceA Glance
The Mumbai Dabbawallahs !!
• The term Six Sigma does not come to mind when one thinks of lunch boxes and their delivery – but one delivery service in India has managed to garner a Six Sigma rating on par with Motorola.
• They have earned fame with their “perhaps one mistake every two months” out of the 170,000 lunch boxes they deliver everyday across offices in Mumbai.
• With a complicated, yet simple, coding system for each box, the delivery men get hot, home-cooked food to office-goers at lunch time, and deliver the boxes back to their homes before they get there themselves after the day’s work.
What is Quality?
Evolution of Quality
Historically
Proactive Quality“Create process that will produce less or no defects”
Contemporary
Reactive QualityQuality Checks (QC) - Taking the defectives out of what is produced
Segments in Quality
Methodologies Standards Capability Models
•Six Sigma•Lean
•ISO 9000, ISO 14000 etc.•COPC•Malcolm Baldrige
•eSCM•CMM•CMMI
Scientific way to improve capability?
Sharing Benchmarked
practices- “Standardizing”
Best practices to build
capability
What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at high standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:
• A standard
• A certification
• Another metric like percentage
• The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure.
• For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.
Two Meanings of Sigma
Path to Six Sigma
4 Sigma 6,210 Defects
2 Sigma 308,537 Defects
3 Sigma 66,807 Defects
5 Sigma 233 Defects
6 Sigma 3.4 Defects
Sigma levels and Defects per million
opportunities (DPMO)
What it means to be @ Six SigmaIs 99% (3.8) good enough? 99.99966% Good – At 6
20,000 lost mails per hour 7 lost mails per hour
Unsafe drinking water almost 15 minutes each day
One minute of unsafe drinking water every seven months
5,000 incorrect surgical operations per week
1.7 incorrect surgical operations per week
2 short or long landings at most major airports daily
One short or long landing at major airports every five years
200,000 wrong drug prescriptions each year
68 wrong drug prescriptions each year
Example quoted from GE Book of Knowledge - copyright GE
• 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
Origin of Six Sigma
MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma
MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma
• Jack Welch launched Six Sigma at GE in Jan,1996
• 1998/99 - Green Belt exam certification became the criteria for management promotions
• 2002/03 - Green Belt certification became the criteria for promotion to management roles
The Growth of Six Sigma
GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma
GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma
The GE model for process improvements
The Growth of Six Sigma
DefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl
Combination of change management & statistical analysis
The Growth of Six Sigma
BPMSBPMSBusiness Process Management SystemBusiness Process Management System
BPMSBPMSBusiness Process Management SystemBusiness Process Management System
DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology
DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology
DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six
SigmaSigma
DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six
SigmaSigma
Three Methodologies of Six Sigma
The Value Of Six SigmaThe Value Of Six SigmaThe Value Of Six SigmaThe Value Of Six Sigma
Higher Shareholder
Value
Higher Shareholder
Value
Improve Customer Satisfaction
Improve Customer Satisfaction
Improve YieldsImprove Yields
Defect Reduction Defect Reduction
Savings
Hard Savings• Labor Savings• Cycle Time Improvements• Scrap Reductions• Hidden Factory Costs• Inventory Carrying Cost
Soft Savings
• Gaining Lost Sales• Missed Opportunities• Customer Loyalty• Strategic Savings• Preventing Regulatory
Fines
While hard savings are always more desirable because they are easier to quantify, it is also necessary to think about soft savings.
Leadership CommitmentLeadership CommitmentLeadership CommitmentLeadership Commitment
Leadership CommitmentLeadership CommitmentLeadership CommitmentLeadership Commitment
Six Sigma identifies process that are off-Six Sigma identifies process that are off-target, and/or have a high degree of target, and/or have a high degree of
variation and corrects the processvariation and corrects the process
LSL = Lower spec limitUSL = Upper spec limit
LSL USL USLLSL
Off-Target Large Variation
On-Target
CenterProcess
Reduce Spread
USLLSL
Nature of a ProblemNature of a Problem Nature of a ProblemNature of a Problem XXXX
XXXXXX
XX X
X
XX
XX
X
XXX
X
XXXXXXXXXXXXXX
Note: (DPMO Distribution Shifted ± 1.5)
2 308,5373 66,8074 6,2105 2336 3.4
PPMPPM
ProcessCapabili
ty
ProcessCapabili
ty
Defects per Million Opp.Defects per Million Opp.
Sigma LevelsSigma Levels Sigma LevelsSigma Levels
Where Does The Industry Stand?Where Does The Industry Stand?Where Does The Industry Stand?Where Does The Industry Stand?
IRS - Tax Advice (phone-in)
(140,000 PPM)
7
Sigma Scale of MeasureSigma Scale of Measure
1,000,000
100,000
10,000
1,000
100
10
1
PPM
•
Restaurant Bills
Doctor Prescription WritingPayroll Processing
Order Write-up
Journal Vouchers
Wire Transfers
Domestic Airline FlightFatality Rate (0.43 PPM)
(with ± 1.5 shift)
Best-in-Class
Average Company
3 4 5 621
Airline Baggage Handling
What’s In It For You?What’s In It For You?What’s In It For You?What’s In It For You? If we are at sigma level 3, our cost of poor
quality is about 25% of sales Improvement by 1 sigma level is worth $2
Billion in savings This would DOUBLEDOUBLE our market capitalization,
our profitability, and our earnings growth
Designed in
QualityProblem
s70-80%
ManufacturinManufacturing Defects 20-g Defects 20-
30%30%
3 Sigma
6 SigmaDFSS is needed
“5 Sigma Wall”How far can a Black Belt climb?
Design for Six Sigma is the way to reach best-in-class
performance!
Six Sigma ProcessesSix Sigma ProcessesSix Sigma ProcessesSix Sigma Processes
DMAIC
DMAICDMAIC DMAICDMAIC
BreakthroughBreakthroughStrategyStrategy
1
10
100
1000
10000
100000
1000000
33
44
55
66
77
1,000,0001,000,000
100,000100,000
10,00010,000
1,0001,000
100100
1010
11
22
Sigma Scale of Measure
PPM
AverageAverageCompanyCompany
AverageAverageCompanyCompany
Best-in-Best-in-ClassClass
Best-in-Best-in-ClassClass
The Basic ObjectiveThe Basic ObjectiveThe Basic ObjectiveThe Basic Objective
Define the problem...
DMAIDMAICC
DMAIDMAICC
CharacterizationCharacterization
OptimizationOptimization
Phase 1:Phase 1:MMeasureeasure
Phase 2:Phase 2:AAnalyzenalyze
Phase 3:Phase 3:IImprovemprove
Phase 4:Phase 4:CControlontrol
Key Steps in the DMAIC Key Steps in the DMAIC processprocess Key Steps in the DMAIC Key Steps in the DMAIC processprocess
AAnalyzenalyzeAAnalyzenalyze
YYFocu
sPhase
Identify Variation Sources In Y
Validate Measurement System for Y
Define Performance Standards For Y
Select Product or Process Key Characteristic(s); e.g..., Customer Y
Establish Process Capability of Creating Y
Define Improvement Objectives For Y
MMeasureeasureMMeasureeasureYY
YY
YY
YY
YY
Key Steps in the DMAIC processKey Steps in the DMAIC process continued…continued…
Key Steps in the DMAIC processKey Steps in the DMAIC process continued…continued…
Validate Measurement System For xi
Establish Operating Tolerances On Vital Few xi
Discover Variable Relationships Between Vital Few xi
x1, x2, ... xn
x1, x2, ... xn
Vital Few xi
Vital Few xi
Vital Few xiDetermine Ability To Control Vital Few xi
Vital Few xi
Implement Process Control System On Vital Few xi
Screen Potential Causes For Change In Y & Identify Vital Few xi
CControlontrolCControlontrol
IImprovemproveIImprovemprove
DefineDefine ControlControlImproveImproveAnalyzeAnalyzeMeasureMeasure
The Six Sigma Process
•QFD•Surveys•GQRS•Warranty•In-plantdata
•Pareto
•Blueprints•Process Sheets
•Metrics•FlowCharts
•LinkageMatrices
•FMEAs•MeasurementSystemAnalysis
•CapabilityAnalysis
•MultivariateAnalysis
•SPC & Charting
•Basic Stats- Hypothesis- Basic DoE
•Check Sheets•Histograms•Scatter Diagrams
•Regression
•DesignedExperiments- Full Factorial- Fractionals- Comparison
•MeasurementSystemAnalysis
•Capability•StatisticalTolerancingof Process
•Control Plan
•OperatorIllustrations
•OperatorInstructions
•Error Proofing•AutomatedControl
•Process Flow Sheets•VariationMonitoring
Tools
Alignment of Six Sigma ToolsAlignment of Six Sigma Tools
Six Sigma Six Sigma Deployment Structure MapDeployment Structure Map
Manufacturing Planning
John ManteyDeployment Champion
NA Region
TBDDeploymentChampion
NA RegionTBD
Deployment Champion
Asia
TBDDeploymentChampion
NA Region
TBDDeploymentChampion
NA/Asia Man Ops
Deployment Director
Philippe Pernelet
Deployment Champion
Product Development
Deployment Director
Europe Region
TBDDeploymentChampion
Europe Region
TBDDeploymentChampion
Europe Region
TBDDeployment
Champion
South America
Ruben GelschynDeployment Champion
Europe/South America
Dave PickmanDeployment Director
(Interim)
Glass
Bruce Flaherty Deployment Director
Materials Mgmt.
Mike Long Deployment Director
Aftermarket
Lisa BahashDeployment
Director
Quality Brian Edelman
DeploymentDirector
CBUDave DiroffDeployment
Director
FinanceJohn Weirich
DeploymentDirector
IT
George Fields Jr. Deployment Director
Business Strat
Mark HorvathDeployment
Director
Staff
Corporate Six Sigma Director
Master Black Belt
Master Black Belt
Project Champion
Project Champion
Black Belt
Black Belt
Black Belt
Project Champion
Human Resources
Chuck Hudson
DirectorDeployment
CBU
Bob Jenkins
DirectorDeployment
Corporate Quality Director
Full Time Six Sigma
The Quality Team
Master Black BeltMaster Black Belt
Black BeltBlack Belt Black BeltBlack Belt
Green BeltGreen Belt
Green BeltGreen Belt
Green BeltGreen Belt
- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts
- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts
- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or
“high risk” projects
- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or
“high risk” projects
- Part time or full time resource
- Deployed to less complex projects in areas of functional expertise
- Part time or full time resource
- Deployed to less complex projects in areas of functional expertise
Six Sigma Improvement Projects Undertaken-in India-
Industry wise Industry Department Types of Projects
Breakthrough Improvements
Duration
Engineering/ Projects Production/Sales/Purchase/ Supply/Process
Green Belt 6-T0 8 Months
IT Sales/Software Projects/Client Billing/Development/Customer
Green Belt/Black Belt 6-T0 8 Months
Consumer Purchase/Sales/Accounts/Supply/Process/
Green Belt/Black Belt 6-T0 8 Months
Service Industry Supply Chain/Sales/Customer Satisfaction/
Green Belt/Black Belt 6-T0 8 Months
Call Center Finance, Billing, Process, Customer satisfaction
Green Belt/Black Belt 6-T0 8 Months
Role of Green Belt• Almost all the sectors of the Industry (Manufacturing, IT, IT
Training,BPO Parma, Auto Components, Banking, Projects, Consumer, Service, Electronics, Oil, Gov and International JV’s ) undertake Green Belt/Black Projects
Role of Green Belt :1. Leads projects2. Help champion to 3. select team members4. Plan team meetings5. Lead meetings6. Handle meeting logistics7. Make recommendation or changes
Who else is using Six Sigma in India?
• Reliance Petroleum, ONGC and Indian Oil have adopted Six Sigma in some of their core ... Essar and Oil India Limited are also our clients. ... List of such projects are large and shall vary from company to ...
• GE group of companies like GE power controls, GE medical systems, GE capital, GE IDC and companies like Wipro, Satyam, Reliance, HBL, Samtel Group and major companies have already implemented six sigma
• More than 115 big corporate have started using six sigma in India
Six Sigma is used in which department ?
• Six Sigma in Accounting Department
• Six Sigma in Accounts Receivable
• Six Sigma in Billing Department
• Six Sigma in Healthcare / Mental Health
• Six Sigma in Human Resources
• Six Sigma in Human Resources - Employee Turnover
• Six Sigma in Distribution Centers / Stock Rooms / Order Picking
• Six Sigma in Information Technology (IT)
• Six Sigma and Enterprise Resource Planning (ERP)
• Six Sigma in Insurance Industry
Six Sigma is used in which department ?
• Six Sigma in Inventory / Warehousing
• Six Sigma in Logistics / Traffic Applications
• Six Sigma in Logistics II
• Six Sigma in Retail
• Six Sigma in Sales
• Six Sigma in Sales & Marketing
• Six Sigma in Software
• Six Sigma in the Voting process
• Six Sigma in Order Forecasting Processes
• Six Sigma in India
• Six Sigma in a small business
Green Belt - Role
1)1) Contribute process expertise.Contribute process expertise.2)2) Communicate change with other co-workers not Communicate change with other co-workers not
on the team.on the team.3)3) Collect data.Collect data.4)4) Accept and complete all assigned action items.Accept and complete all assigned action items.5)5) Implement improvements.Implement improvements.6)6) Attend and participate in all meetings. Attend and participate in all meetings. 7)7) Be motivated.Be motivated.8)8) Participate in decision making process/ Participate in decision making process/
formulating action scheme for the project. formulating action scheme for the project.
Project Selection SourcesProject Selection SourcesProject Selection SourcesProject Selection Sources
High volume repetitive processes
Items with high cost savings implications
High leverage customer visible defects
Processes that affect the customer
Multinationals using Six Sigma
Agilent Technologies; Bank of America; Boeing; British Telecom; Consolidated Container Company; Dell COMPUTER; DuPont; Eli Lilly; Ford Motor Company; General Electric; Hewlett-Packard; Honeywell; Johnson & Johnson; JP Morgan Chase; Medtronic; Motorola; NCR; Northrop Grumman; Pfizer; Raytheon; Sony; Verizon and more.
Scenario-1:
Organization : Motorola
Turnover : $ 4000 million Manpower : 1 lakh
Locations : 30
To become world leaders in manufacturing of communication products such as pagers, mobile phones etc.
1979 : Quality was stinking
Stiff competition especially from Japanese Companies.
Changed Scenario:
Organization : Motorola
Turnover : $ 4000 million Man Power : 1 lakh
Locations : 30
To become world leaders in manufacturing of communication products such as pagers, mobile phones etc.
MotorolaSavings over 2.2 billion dollars every year, using Six SigmaAnd 1 billion dollars savings potential in non-manufacturing costsReturns in Training 1:10
Scenario-2:
Organization : ABB Power Transfer (TPT) plant
Turnover : 1000 million Man Power : over 500
Below average performance
Well below world class performance
Defect level over 60% higher then competitors
Competitors profits 10% more them ABB
Urgent need for major improvement
Scenario-2: Changed Scenario
Organization : ABB Power Transfer (TPT) plant
Turnover : 1000 million Man Power : over 500
ABB
68 % Reduction in defect Levels30 % Reduction in production cost898 million dollars savings each year
Changed Scenario
Scenario-3:
Organization : GE Medical Systems (GEMS)
Turnover : 4500 million Man Power : over 300
Scanner speed 3 minutes as compared to faster scanners (10 to 30 seconds)
Due to low bulb life 20 million bulbs failing pre shipment tests annually.
High replacement cost of the bulb ($ 60,000)
CAT scanner speed and life need to be substantially improved to stand in the market
Scenario-3: Changed Scenario
Organization : GE Medical Systems (GEMS)
Turnover : 4500 million Man Power : over 300
Spending 500 million dollars expects to get back 2 billion dollars in one year
8 to 12 billion dollars in 5 years
CAT scanner speed and life need to be substantially improved to stand in the market
Scenario-4:
Organization : XYZ Ltd.
1999-2000 sales - Rs.1500 million
No. of employees - 1200
No. of Business units - 11
No. of locations - 4 (production)
above 100 (service)
Products/Service - Alternative Power Systems
Production Volume - 10 million units per month
Customers - Communication sector, Railways, Defense & Industry
Six Sigma – Career Option!• Basic - Six Sigma Awareness• Green Belt Projects• Participate in Black Belt Projects• Assist business functions with day to day
activities
• Mentor/Train Green Belts• Black Belt Projects• Change Agents• Work along with the business owners
• Mentor/ Train Black Belts• Run Strategic projects• More Strategic than tactical role
Green Belt (GB)Green Belt (GB)
Black Belt (BB)Black Belt (BB)
Master Black Belt (MBB)Master Black Belt (MBB)
Highly paid!Highly paid!Work like a Consultant!Work like a Consultant!
Huge demand in the industry!Huge demand in the industry!
Overall…A high flying Career!!Overall…A high flying Career!!
Six Sigma - Three Dimensions
ToolsOrganization
Methodology
Process variation
LSL USL
Upper/Lower specification
limits
Regression•••••••• •••• •••
••••
•••• •• ••
••• ••••
••••• ••
•••••
Driven by
customer
needs
Enabled by quality team.
Led by Senior Mgmt
Define Measure
Analyze Improve ControlVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer
Process Map Analysis
0
5
10
15
20
25
30
35
L K A F B C G R D
0%
20%
40%
60%
80%
100%
Frequency Cumulative Frequency
Pareto Chart
Six Sigma Job Opportunities-India
• Listed Jobs at www.naukri.com• Listed jobs at www.monsterIndia.com
• Total Jobs at Naukri for Green Belt= ^1143• Total Jobs at Monster= ^2201
What Employer’s like IBM are asking in today’s job market?
• Job IBM India Ltd Dated 3rd August 2010 at Naukri.com Experience 0 To 2 Years• Enable the operations team achieve & exceed client metrics
# Perform Call monitoring, Ticket checks & Call Calibrations - Achieve targets
# Effective Coaching & feedback to entire span of agents/ service representatives
# Monitor team performance, generate reports, trends & dashboards
# Ability to analyze data & perform a thorough Root Cause Analysis
# Take new actions within & across teams, to improve productivity and share best practices
# Ability to collaborate across multiple teams for process improvements and standardization.• Desired Profile # Skill's required:• # Good Communication Skills: Written and Oral
# Knowledge of GDF and implementation aspect of the same
# Knowledge of quality standards and practicality of same.
# Quality Certification will be considered
# Great level of confidence and analytical skills
# English : Fluent
Job Hinduja Group, Navi Mumbai
• Desired Candidate Profile Experience 0 to 1 Year Naukri.com• •Knowledge of Quality concepts is a must
•Knowledge of Six Sigma will be an added advantage • Walk-In: Mon-Sat. 10:00am-5:00pm• Job Description• • Should be able to create reports and analyze data• • Should be able to interact with clients and develop ways to improve call quality• • Conduct daily and weekly call monitoring and call calibration sessions.• • Helping agents meet their parameters• • Liaison with Customers to streamline the data entering process• • Identify errors and give immediate feedback to the agent• • To proactively support Team Leader when required• • Conduct team briefing sessions• Keywords: Quality Company Profile• Industry Type: BPO/ITES• Role: QA/QC Exec.• Functional Area: ITES/BPO/KPO, Customer Service, Ops.• Posted Date: 30 Aug, 2010
SummarySummarySummarySummary
What Do We Want You to Do?
Support Six Sigma Projects Contribute to the Projects list Learn the Six Sigma Language Ask for the Data Participate in the Cultural ChangeAdd value to your CVGo for the best job with additional six sigma
skills
Thank You!!!