Six sigma

1. Prof Raghavendran Venugopal
SIX SIGMA

2.  MEANING OF SIX SIGMA
 HISTORY OF SIX SIGMA
 IMPLEMENTATIN OF SIX SIGMA
 LEVEL OF SIX SIGMA
 DIMAC
 DMADV

3. Six Sigma relies heavily on advanced statistical methods that
complement and reduce the process and product variations. It
is a new way of doing business that would eliminate the
existing defects efficiently and would prevent defects from
occurring

4. Motorola company that invented Six Sigma.
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
Motorola saved more than $ 15 billion in the first 10
years of its Six Sigma effort

5. Motorola saved more than $17 billion from 1986 to 2013,
reflecting hundreds of individual successes in all
Motorola business areas including:
• Sales and marketing
• Product design
• Manufacturing
• Customer service
• Transactional processes
• Supply chain management

6.  Financial – bank of America, GE Capital,HDFC,HSBC,American
Express
 ITES- ICICI One source, Accenture, Satyam PO, IBM Daksh
 Hospitality- ITC Hotels, GRT Hotels, Apollo Hospitals
 Manufacturing- GE Plastic, Johanson and Johnson, Motorola, Nokia,
Microsoft, Ford, Wipro, Nestle, Samsung, Samtle
 Telecom- Bharti Cellular, Vodafone, Siemencs,Tata
 IT- Wipro, Satyam,Acenture, Infosys, TCS, Birla soft

8. CONTINUE…
1. Six Sigma Champion: Champions undergo five days of training and
are taught how to manage projects and act as advisors to various
project teams.
2. Green Belts: They undergo two weeks of training that includes
project-oriented tasks. They act as team members to the Six Sigma
project team. Their cooperation and involvement is necessary for
projects success.
3. Black belts: They receive four weeks of trainings and are directly
involved in the implementation of Six Sigma Projects. They are the
project leaders and go through in-depth training on Six Sigma
approach and tools and work full time on the project.
4. Master Black Belts: These are the people who conduct Six Sigma
Training and also have on the job training and experience

9. Six Sigma Methods
Six
Sigma
Methods
Service
Design
productio
n
IT
Manage
ment
Administ
ration

10. Six-Sigma Metrics
 Defect – any mistake or error that is
passed on to a customer
 Defects per unit (DPU) = number of
defects discovered  number of units
produced
 Defects per million opportunities (dpmo)
= DPU  1,000,000  opportunities for
error

11. Six-Sigma Quality
 Ensuring that process variation is half the design
tolerance (Cp = 2.0) while allowing the mean to
shift as much as 1.5 standard deviations,
resulting in at most 3.4 dpmo.

12. k-Sigma Quality Levels

13. 13
Problem Solving
 Problem: any deviation between what “should
be” and what “is” that is important enough to
need correcting
 Structured
 Semistructured
 Ill-structured
 Problem Solving: the activity associated with
changing the state of what “is” to what “should
be”

14. Quality Problem Types
1. Conformance problems
2. Unstructured performance problems
3. Efficiency problems
4. Product design problems
5. Process design problems

15. Key Factors in Six Sigma Project
Selection
 Financial return, as measured by costs associated
with quality and process performance, and impacts
on revenues and market share
 Impacts on customers and organizational
effectiveness
 Probability of success
 Impact on employees
 Fit to strategy and competitive advantage

16. Problem Solving Process
1. Redefining and analyzing the
problem
2. Generating ideas
3. Evaluating and selecting ideas
4. Implementing ideas

17. APPROACHES OF SIX SIGMA

THIS IS ORGANIZATIONAL BASED

THIS IS BASED ON CUSTOMER NEEDS
AND SATIFACTIONS

18. It approach undertaken to improve existing business process
CONTRL
DEFINE
MEASUREANALYSE
IMPROVE

19. 1.Define high-level project goals and the current process.
2.Measure key aspects of the current process and collect relevant data.
3.Analyze the data to verify cause-and-effect relationships. Determine what the
relationships are, and attempt to ensure that all factors have been considered.
4.Improve or optimize the process based upon data analysis using various tools
5.Control to ensure that any deviations from target are corrected before they
result in defects.

20. This approach is undertaken when there is a need to create new design or
product:
DEFINE
MEASURE
ANALYZE
DESIGN
VERIFY

21.  Define design goals that are consistent with customer demands and the
enterprise strategy.
 Measure and identify CTQs (characteristics that are Critical To Quality),
product capabilities, production process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and
evaluate design capability to select the best design.
 Design details, optimize the design, and plan for design verification. This
phase may require simulations.
 Verify the design, set up pilot runs, implement the production process
and hand it over to the process owners.
DMADV is also known as DFSS, an abbreviation of "Design For Six
Sigma

22. DMAIC DMADV
 Defines a business process.
 Measuring current process
 Identify root cause of the
recurring PROBLEMS
 Improvements made to reduce
defects
 Keep check on future
performance
 Define customer needs
 Measure customer needs &
specification
 Analyze options to meet customer
satisfaction.
 Model is deigned to meet customer
needs
 Model put through simulation
tests for verification

23. SIGMA LEVEL DEFECT RATE YIELD
1 691,500 dpmo 30.85%
2 308,770 dpmo 69.10000%
3 66,811 dpmo 99.33000%
4 6,210 dpmo 99.38000%
5 233 dpmo 99.97700%
6 3.44 dpmo 99.99966%

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BENEFITS OF SIX SIGMA
 Generates sustained success
 Sets performance goal for everyone
 Enhances value for customers
 Accelerates rate of improvement
 Promotes learning across boundaries
 Executes strategic change

25. 25
USAGE OF SIX SIGMA

26. 26
SIX SIGMA MANAGEMENT
When practiced as a management system, Six Sigma is a
high performance system for executing business
strategy.
Six Sigma is a top down solution to help organizations:
 Align their business strategy to critical improvement
efforts
 Mobilize teams to attack high impact projects
 Accelerate improved business results
 Govern efforts to ensure improvements are sustained

27. 27
KEY ROLES FOR SIX SIGMA
Six Sigma identifies several key roles for its successful
implementation:
 Executive leadership
 Champions
 Master Black Belts (Identify projects& functions)
 Black Belts (Identify non value added activities)
 Green Belts ( works on small projects )
Top
Bottom

28. 28
TOOLS & TECHNIQUES
 7QC tools
Check Sheets (collect data to make improvements)
Pareto Charts( define problem and frequency)
Cause and effect diagram (Identify possible causes
to solve problem)
Histogram (Bar charts of accumulated data to
evaluate distribution of data)
Scatter diagram (plots many data points and pattern
between two variables)
Flow Chart (Identify unwanted steps)
Control charts (Control limits around mean value)

29. 29
TRAININGS & CERTIFICATIONS
If you want to make yourself more valuable and
attractive to employers then get training and certification
 Option I – Certification as Six Sigma Green Belt
 Option II – Certification as Six Sigma Black Belt

30. Six Sigma & TQM
TQM Six Sigma
 focus is general
improvement by
approaching the
problem collaboratively
and culturally
 utilizes the efforts of many
departments, it is more of a
statistical approach, and is
very much data driven. It
makes use of measuring and
analyzing data to determine
how defects and differences
could be minimized to the
level where there are 3.4
defects per million
cycles/products, while a
process is being run

31. Six Sigma & TQM
TQM Six Sigma
 strives for increased levels
of performance.
 the definition of quality is
the level at which a
product/process meets the
set company standards.
 TQM doesn’t require full-
time dedication in
supporting the quality
management process,
 Six Sigma focuses on setting
minimum standards and
acceptance requirements.
 the definition is a relational
one, stressing that quality is
reflected in the least number
of defects, which must, as
much as possible, be
eliminated.
 Six Sigma approach requires
certified professionals in Six
Sigma techniques.

32. By Prof. Raghavendran Venugopal
Module 8 Completed