Six Sigma presentation, present by me (Aditya singhal) & Anand in ICAI- Bangalore branch on 5th July 2006.

1. By:
Aditya Singhal (CA, DISA. M.com) &
Anand K Anand (Six sigma black belt)

2. The plan for today’s presentation
Overview of Six sigma
Why do we need Six Sigma program ?
The Players in Six Sigma/ Six Sigma
Certification levels
Sigma Improvement process
Q&A

3. Overview of
Six Sigma

4. Evolution of Six Sigma

5. What is Six Sigma ?
A set of advanced tools/ techniques and methodologies which can be used to bring
in rapid and breakthrough improvement in performance
and/ or
A business strategy used for bringing in enhanced customer focus in the
organization , increase fact based decision making and create an environment for
“tangible improvement”

6. What is Six Sigma … in a nutshell…… ?
High
A Management
system
Start with the CTQ Dedicated Resources
Business Impact
Data Driven Decisions
A process
Improvement Methodology
DMAIC
A Metric
3.4 DPMO
Low
Literal Philosophical
Definition Definition

7. Six Sigma Metric
The term “Sigma” is used to designate the distribution or spread about the
mean (average) of any process or procedure
For a business or manufacturing process, the Sigma level is a metric that
indicates how well that process is performing. The higher the sigma level , the
better/ sigma level measures the capability of the process to perform defect-
free work. A defect is anything that results in customer dissatisfaction.
As defects The Sigma
Go down….
D
σ Level goes up

8. DMAIC
1.0 2.0 3.0 4.0 5.0
Define Measure Analyze Improve Control
Opportunities Performance Opportunity Performance Performance
Define the Measure the Improve the process Control the improved
Analyze and
by working Process performance
Project, process determine
on the validated To ensure sustainable
Assignment, to determine the root causes
root causes results
goals and Current performance of the defects
customer
(internal And
external)
deliverables
An Improvement Methodology

9. Strategic Six Sigma – form strategy to action
Define key Business Margin Earnings per Revenue Growth
Performance Targets Improvement share Growth
New Service Marketing Supply Brand Management
Articulate Core Enterprise Development Effectiveness Reliability Market Share Growth
Issues & strategies
Product Manufacturing Developing
Reliability Productivity People
Identify Strategic
Grow Revenues Improve Yield Reduce Cycle time
Develop & produce
Improvement in key Markets by of product “X” of Key Process
Product “Z” by YE’06
goals 20% by YE’s05 By 5% YE’05 “Y” 10% by YE’05
Identify & Prioritize Specific
Improvement Projects
Create active projects
Led by Black Belts/
Green belts
“Just Do It” “Lean Projects” “DMAIC Projects” “DFSS Projects”

10. Six Sigma is different from other traditional quality and process
improvement methodologies
The extensive focus on customer requirement
The direct link to business strategy and financial results
The required commitment of top leadership up-front and continuously
through years of implementation
Each project delivers bottom line results in a short time
The disciplined improvement methodology based on measurement
and analysis
Full-time Six Sigma team leaders who are extensively trained in
statistical thinking as well as team and project skills
The integration of Six Sigma thinking into the business infrastructure
through incentives and rewards

11. Why do we need
Six Sigma project

12. Benefits of Six Sigma
To Six sigma team
Opportunity to hone skills in diverse areas of problem solving
Knowledge on statistical tools, analytical methods, communications &
leadership skill
To Organization
Rapid improvement in performance
Enhanced customer focus
Cultural change and a employee base dedicated to tangible
performance improvement.
Saving in bottom line
To Customer
Quality improvement, cost reduction ,

13. The Players
in Six Sigma

14. The Players in Six Sigma
Focuses normally on one CTQ or
Project
Project goal. Sponsors
Duration normally 3 – 6 month- can Training & Project
guidance by
extend in special cases. Central Quality
Champions Team
Executed by task force time team of 3
to 7 members (ideally 5).
The project is deemed to be completed
once appreciate improvement is
Registered and sustenance is ensures Black Belts
by monitoring over a reasonable period / Green Belts
of time.
Thereafter the CTQ is monitored and
Yellow
reported on on-going basis Belts
e
e cor
Th eam
Footnote: Six Sigma expertise hierarchy has no t
Mapping with organization hierarchy.

15. Six Sigma Process

16. Sigma Improvement Process: DMAIC
Y = f (X)
1. Define : Customer expectations of the process ?
2. Measure : What is the frequency of defects ?
3. Analyze : Why, when, and where do defects occur ?
4. Improve : How can we fix the process ?
5. Control : How can we make the process stay fixed ?

17. 1.0 Define Opportunities
1.0 2.0 3.0 4.0 5.0
Define Measure Analyze Improve Control
Performance Opportunity Performance Performance
Opportunities
Objective Main Activities Potential Tools and Techniques Key Deliverables
• To identify and/or • Validate/Identify •VOC - Critical
validate the Business Opportunity Customer
improvement • Validate/Develop Team Requirements
opportunity Charter
• Develop the business • Identify and Map – CTQ
processes Processes •Team Charter
• Define critical • Identify Quick Win and
customer Refine Process •Process Maps
requirements, • Translate VOC into
• Prepare themselves CCRs
•Quick Win
to be an effective • Develop Team Opportunities
project team Guidelines & Ground •Project Plan
• Develop a Project Rules
Plan to Manage the • Develop •Team
Project Communication and Resources
Change Management
Plan •Communicatio
ns Plan

18. 2.0 Measure Performance
1.0 2.0 3.0 4.0 5.0
Define Analyze Improve Control
Opportunities
Measure Opportunity Performance Performance
Performance
Objective Main Activities Potential Tools and Techniques Key Deliverables
•To identify critical
measures that are •Identify Input, •Input, Process
necessary to meet
Process and and Output
CCR’s
•Develop a methodology Output Indicators
to effectively collect
data to measure Indicators •Operational
process performance • Develop Operational Definitions
•Understand the
elements of the six
Definition & Measurement
Plan
•Data Collection
sigma calculation • Plot and Analyze Data Formats and
•Establish baseline Plans
sigma • Determine if Special
•Understand the purpose Cause Exists •Baseline Six
and outputs of Measure
•Determine/Target Sigma
Sigma Performance
Performance
• Collect Other Baseline
Performance Data
• Benchmarking

19. 3.0 Analyze opportunity
1.0 2.0 3.0 4.0 5.0
Define Measure Improve Control
Opportunities Performance
Analyze Performance Performance
Opportunity
Objective Main Activities Potential Tools and Techniques Key Deliverables
•To stratify and
analyze the
•FMEA and
opportunity •Stratify Process action plan
•Identify a specific •Stratify Data &
problem
•Define an easily
Identify Specific •Data Analysis
understood problem Problem •Potential Root
statement •Develop Problem Causes
•To identify and Statement
validate the root
causes •Identify Root Causes •Validated Root
•Design Root Cause Causes
Verification Analysis
•Validate Root
Causes
•Enhance Team
Creativity & Prevent
Group-Think

20. 4.0 Improve Performance
1.0 2.0 3.0 4.0 5.0
Define Measure Analyze Control
Opportunities Performance Opportunity
Improve Performance
Performance
Objective Main Activities Potential Tools and Techniques Key Deliverables
•Solutions
• To identify, evaluate,
and select the right
•Generate •To Be Process
improvement Solution Ideas Maps and
solutions
• Develop a change
•Determine Solution Documentation
Impacts: Benefits
management plan •Implementatio
•Evaluate and n Milestones
Select •Improvement
Solutions Impacts and
•Develop Process Benefits
Maps & High Level • Pilot plan and
Plan
pilot results
•Run pilot and •Projected
test results Process
•Communicate performance
Solutions to all (Sigma)
Stakeholders

21. 5.0 control Performance
1.0 2.0 3.0 4.0 5.0
Define Measure Analyze Improve
Opportunities Performance Opportunity Performance
Control
Performance
Objective Main Activities Potential Tools and Techniques Key Deliverables
•To understand the
importance of
•Verify
planning and sustainability of the •Improved
executing against the results Bottom Line
plan • Identify if additional impact
•Determine the solutions are necessary to
approach to be taken
to assure
achieve Goal •Process Control
achievement of the • Identify and Develop Systems & Plan
targeted results Replication &
•To understand how to Standardization
•Standards and
disseminate lessons Opportunities Procedures
learned •Integrate and
•Identify replication •Training
Manage Solutions
1
and standardization •Change
2
3
in Daily
4
opportunities/ 5
Implementation
6
•Processes, and
7
Work Processes
8
9
develop related Plans
plans. • Integrate Lessons Learned
• Develop Communications •Replication
Plans Opportunities
• Transition Design
• Develop Process Owner •Process Owner
Transition Plan Transition Plan
• Rewards and Recognition

22. Q&A

23. Thanks
Contact Details:
Email: adityaagra@gmail.com
anand.innovativeminds@gmail.com
http://finance.groups.yahoo.com/group/fresher_ca/