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Six Sigma




                                 Prepared by:-
Guided by: -
                                 Dixit Nehal Subhashbhai
Mr. Saurabh Tandel
                                 (4th Computer, Roll No: 5108)
1.0 Introduction
        • “A methodology to manage
          process variations that
          cause defects and to
          systematically work towards
          managing variation to
          eliminate those defects.”
        • The objective of Six Sigma is
          to deliver to the end
          customer:-
           – High performance
           – Reliability
           – Value
1.0 Introduction CTD..
                 1.1 What is Quality?
 Internal orientation—
  company’s perspective.
     The degree to which a
    specific product conforms to
    a design or specification.
    Differences in quality
    amount to differences in the
    quantity of some desired
    ingredient or attribute.
 External orientation—
  customer’s perspective.
    Fitness for use.
    Quality consists of the
     capacity to satisfy wants.
                                   Fig 1.1.1 In the modern era cut
                                   throat competition demands
                                   Quality
1.0 Introduction
      1.1 What is Quality? (CTD..)
Quality Is:
    Conformance to

    Requirements-
        Meeting standards!
    
    Fitness for use-

        Meeting & Exceeding
    
        customer’s needs!
    Quality Dimensions-

        Reliability
    
        Responsiveness
    
        Assurance
    
        Empathy
    
1.0 Introduction
      1.1 What is Quality? (CTD..)
 Importance    of
 Quality

 Quality   Control
 Implement testing
 procedures against
 quality definitions.
 Quality   Testing
 Activities & processes
 for specific testing
 tasks.
2.0 Six Sigma Concept
 σ : Indicates standard
  deviation.

 Used to relate the ability
  of a process to perform
  defect free work.
 The higher the value the
  better the process is
  performing and the lower
  the probability that a
  defect will occur.
2.0 Six Sigma Concept CTD..
                       2.2 Why Six?
                                            Sigma Level    Defects         Per Cost       Of     Poor
Sigma       % Good     % Bad      DPMO
                                                           Million              Quality
                                                           Opportunities
        1   30.9%      69.1%      691,462
                                            2              308,537              N/A

        2   69.1%      30.9%      308,538                  (Noncompetitive
                                                           companies)
        3   93.3%      6.7%       66,807
                                            3              66,807               25-40% of sales
                                            4              6210                 15-52% of sales
        4   99.38%     0.62%      6,210
                                                           (Industry Average)
        5   99.977%    0.023%     233
                                            5              233                  5-15% of sales
                                            6              3.4                  <1% of sales
        6   99.9997%   0.00034%   3.4
                                                           (World Class)


2.2.1 Table showing variation and               2.2.2 Table showing how world
striking difference that Six Sigma is           Class companies eliminate their
having compared to all                          defect rate to minima and hence
compatible previously devised                   optimize their standards .
Sigma.
Larry Bossidy
                                                   WIPRO -
  US DOD                   Launches 6sigma @
                                 History           India
  introduces FMEA          allied Signal

                                                              1997
Walter A. Shewhart
- control chart |
                                              1994 1995
special vs. common           Kano
cause variation >>           Model
process problems.
                                          1970’s 1986                     Jack Welch -
                            IshiKawa                                      GE
 Wilfred Pareto             Diagram
 introduces
                                     1960                 Bill Smith – 6Sigma @
 80/20
                                                          Motorola
                                 1949
                    1924
      1896                                           Alex Osborn of BBDO sets
                                1941                 “brainstorming” definitions


       1815                   Gauss Uses Normal Curve for error
                              analysis, probability
      1735                      De Moivre Creates normal Curve
2.0 Six Sigma Concept
                            2.4 Definitions
•   “A term used to describe a measure of
    quality control that is higher than quot;normal“.”
•   “A measure of quality that strives for near
    perfection. The Six Sigma process uses data
    and rigorous statistical analysis to identify
    quot;Defectsquot; in a process or product, reduce
    variability, and achieve as close to zero
    defects as possible.”
•   “A disciplined data driven approach and
    methodology for eliminating defects in any
    process from manufacturing to transactional
    & from product to service. It allows
    organizations to make customer focused,
    data driven decisions that ultimately yield a
    reduction in product defect rate, increase
    profits and employee morale and high
                                                     Fig 2.4.1 Defining the working
    quality products-a accentuating situation for
                                                     model using Six Sigma to have
    everyone involved.”
                                                     minimum defect i.e. zero defect
                                                     ideally.
2.0 Six Sigma Concept
            2.4 Definitions CTD..
Six Sigma is actually many things:
• A Goal
• A Vision
• A Metric
• A Strategy
• A Methodology
• An Application
3.0 Six Sigma Methodology
3.0 Six Sigma Methodology
             • the project goals and
               customer (internal and
               external) requirements
              Objectives
                Project’s purpose and
                   scope defined
              Outputs
                 Clear statement of
                 intended improvement,
                 A list of what is important
                 to the customer(s)
3.0 Six Sigma Methodology
             • The process to determine
               current performance

              Objectives
               Focus the improvement
               effort by gathering
               information on the
               current situation.
              Outputs
               Data that pinpoints
               problem location or
               occurrence.
               A more focused problem
               statement.
3.0 Six Sigma Methodology
             • Determine the root
               cause(s) of the defects.
              Objectives
                Identify root cause(s) and
                  confirm them with data.
              Outputs
                Theory that has been
                  tested and confirmed
3.0 Six Sigma Methodology
             • The process by
               eliminating defect root
               causes.
              Objectives
               Try out and implement
               solutions that address root
               causes
              Outputs
               Planned, tested actions that
               should eliminate or reduce the
               impact of the identified root
               causes.
3.0 Six Sigma Methodology
              Objectives
               Evaluate the solutions and
                 the plan.
               Outline steps for on-going
                 improvements.
              Outputs
               Completed documentation
               of results, learning, and
               recommendations.
3.0 Six Sigma Methodology CTD…
Other Methodologies are :-
DFSS -Design For Six Sigma
DMADV-Define, Measure, Analyze, Design and
  Verify.
DMADOV -Define, Measure, Analyze, Design,
  Optimize and Verify.
IDOV -Identify, Design, Optimize and Validate
DMEDI-Define, Measure, Explore, Develop and
  Implement.
4.0 Six Sigma Tools
•   Brainstorming
•   Flow charts and process maps
•    Pareto charts
•   Control charts
•   Cause and Effect Diagram (Fishbone Diagram)
•   XY Matrix
•   Hypothesis Testing
•   Failure Mode and Effects Analysis (FMEA)
•   Design of Experiments (DOE)
5.0 Six Sigma Implementation
Six Sigma Implementation
   Model Steps :

 Establishing Management
  Commitment
 Information gathering
 Training – Master Black
  Belt,Black Belt,Green
  Belt,Champion.
 Developing Monitoring
  Systems
 Business Processes To Be
  Improved Are Chosen
 Conducting six sigma
  projects
6.0 Why To Adopt Six Sigma?

Opportunities                Traditional                 Six Sigma Quality
                             (Three Sigma Quality)
300,000 letters delivered    3,000 miss-deliveries       1 miss-delivery

500,000 computer restarts    4,100 crashes               < 2 crashes

500 years of end of month    60 months would not         .018 months would not
closings                     balance                     balance

For every week of TV         1.68 hours of dead air      1.8 seconds of dead air
broadcasting (per channel)

Cleaning 1500 sq ft of       4 sq ft still dirty after   Dirty carpet smaller than a
carpet                       cleaning                    postage stamp
7.0 Six Sigma Applications
•   Health care
•   Laboratory
•   Banking
•   Insurance
•   Construction
•   Education
8.0 Six Sigma Success Stories
8.1 Cheapest Six Sigma
•Achieved by Dabbawala association running in
Mumbai.
•Daily 2 lac lunches are moved every day by
estimated 5000 dabbawala’s at very moderate
rate.
•600000:1 defect ratio.
•Six Sigma, ISO 2000 certified and this whole
system runs by means of illiterate Lecture MBA’s.
•No Strike for 116 years.
•Acclaimed by Forbes magazine. New York
Times based on survey that this industry expand
5 to 10 percent per year.
9.0 Conclusion
• Today’s World is too competitive and to survive in this cut-
  throat race of success and World leaders one has to adopt
  the Six Sigma Methodology in any sector with any
  designations.
• As we have seen from the world class dignified companies
  like MOTOROLA,SEIMENS,MICROSOFT,GE,GM to Mumbai’s
  DABBAWALLAS every one can attain this standard if
  employees and all other adjoining entities unites under the
  common goal for success of company for betterment of
  individuals for promoting National Prestige .
• Hence we can draw the conclusion that the equation y =
  f(x) is the basic equation of life. You can be sure of the
  output only if you can control the inputs. In other words
  the output of a process is the function of its inputs.
Six Sigma seminar by Nehall
Six Sigma seminar by Nehall

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Six Sigma seminar by Nehall

  • 1. Six Sigma Prepared by:- Guided by: - Dixit Nehal Subhashbhai Mr. Saurabh Tandel (4th Computer, Roll No: 5108)
  • 2. 1.0 Introduction • “A methodology to manage process variations that cause defects and to systematically work towards managing variation to eliminate those defects.” • The objective of Six Sigma is to deliver to the end customer:- – High performance – Reliability – Value
  • 3. 1.0 Introduction CTD.. 1.1 What is Quality?  Internal orientation— company’s perspective.  The degree to which a specific product conforms to a design or specification.  Differences in quality amount to differences in the quantity of some desired ingredient or attribute.  External orientation— customer’s perspective.  Fitness for use.  Quality consists of the capacity to satisfy wants. Fig 1.1.1 In the modern era cut throat competition demands Quality
  • 4. 1.0 Introduction 1.1 What is Quality? (CTD..) Quality Is: Conformance to  Requirements- Meeting standards!  Fitness for use-  Meeting & Exceeding  customer’s needs! Quality Dimensions-  Reliability  Responsiveness  Assurance  Empathy 
  • 5. 1.0 Introduction 1.1 What is Quality? (CTD..)  Importance of Quality  Quality Control Implement testing procedures against quality definitions.  Quality Testing Activities & processes for specific testing tasks.
  • 6. 2.0 Six Sigma Concept  σ : Indicates standard deviation.  Used to relate the ability of a process to perform defect free work.  The higher the value the better the process is performing and the lower the probability that a defect will occur.
  • 7. 2.0 Six Sigma Concept CTD.. 2.2 Why Six? Sigma Level Defects Per Cost Of Poor Sigma % Good % Bad DPMO Million Quality Opportunities 1 30.9% 69.1% 691,462 2 308,537 N/A 2 69.1% 30.9% 308,538 (Noncompetitive companies) 3 93.3% 6.7% 66,807 3 66,807 25-40% of sales 4 6210 15-52% of sales 4 99.38% 0.62% 6,210 (Industry Average) 5 99.977% 0.023% 233 5 233 5-15% of sales 6 3.4 <1% of sales 6 99.9997% 0.00034% 3.4 (World Class) 2.2.1 Table showing variation and 2.2.2 Table showing how world striking difference that Six Sigma is Class companies eliminate their having compared to all defect rate to minima and hence compatible previously devised optimize their standards . Sigma.
  • 8. Larry Bossidy WIPRO - US DOD Launches 6sigma @ History India introduces FMEA allied Signal 1997 Walter A. Shewhart - control chart | 1994 1995 special vs. common Kano cause variation >> Model process problems. 1970’s 1986 Jack Welch - IshiKawa GE Wilfred Pareto Diagram introduces 1960 Bill Smith – 6Sigma @ 80/20 Motorola 1949 1924 1896 Alex Osborn of BBDO sets 1941 “brainstorming” definitions 1815 Gauss Uses Normal Curve for error analysis, probability 1735 De Moivre Creates normal Curve
  • 9. 2.0 Six Sigma Concept 2.4 Definitions • “A term used to describe a measure of quality control that is higher than quot;normal“.” • “A measure of quality that strives for near perfection. The Six Sigma process uses data and rigorous statistical analysis to identify quot;Defectsquot; in a process or product, reduce variability, and achieve as close to zero defects as possible.” • “A disciplined data driven approach and methodology for eliminating defects in any process from manufacturing to transactional & from product to service. It allows organizations to make customer focused, data driven decisions that ultimately yield a reduction in product defect rate, increase profits and employee morale and high Fig 2.4.1 Defining the working quality products-a accentuating situation for model using Six Sigma to have everyone involved.” minimum defect i.e. zero defect ideally.
  • 10. 2.0 Six Sigma Concept 2.4 Definitions CTD.. Six Sigma is actually many things: • A Goal • A Vision • A Metric • A Strategy • A Methodology • An Application
  • 11. 3.0 Six Sigma Methodology
  • 12. 3.0 Six Sigma Methodology • the project goals and customer (internal and external) requirements  Objectives Project’s purpose and scope defined  Outputs Clear statement of intended improvement, A list of what is important to the customer(s)
  • 13. 3.0 Six Sigma Methodology • The process to determine current performance  Objectives Focus the improvement effort by gathering information on the current situation.  Outputs Data that pinpoints problem location or occurrence. A more focused problem statement.
  • 14. 3.0 Six Sigma Methodology • Determine the root cause(s) of the defects.  Objectives Identify root cause(s) and confirm them with data.  Outputs Theory that has been tested and confirmed
  • 15. 3.0 Six Sigma Methodology • The process by eliminating defect root causes.  Objectives Try out and implement solutions that address root causes  Outputs Planned, tested actions that should eliminate or reduce the impact of the identified root causes.
  • 16. 3.0 Six Sigma Methodology  Objectives Evaluate the solutions and the plan. Outline steps for on-going improvements.  Outputs Completed documentation of results, learning, and recommendations.
  • 17. 3.0 Six Sigma Methodology CTD… Other Methodologies are :- DFSS -Design For Six Sigma DMADV-Define, Measure, Analyze, Design and Verify. DMADOV -Define, Measure, Analyze, Design, Optimize and Verify. IDOV -Identify, Design, Optimize and Validate DMEDI-Define, Measure, Explore, Develop and Implement.
  • 18. 4.0 Six Sigma Tools • Brainstorming • Flow charts and process maps • Pareto charts • Control charts • Cause and Effect Diagram (Fishbone Diagram) • XY Matrix • Hypothesis Testing • Failure Mode and Effects Analysis (FMEA) • Design of Experiments (DOE)
  • 19. 5.0 Six Sigma Implementation Six Sigma Implementation Model Steps :  Establishing Management Commitment  Information gathering  Training – Master Black Belt,Black Belt,Green Belt,Champion.  Developing Monitoring Systems  Business Processes To Be Improved Are Chosen  Conducting six sigma projects
  • 20. 6.0 Why To Adopt Six Sigma? Opportunities Traditional Six Sigma Quality (Three Sigma Quality) 300,000 letters delivered 3,000 miss-deliveries 1 miss-delivery 500,000 computer restarts 4,100 crashes < 2 crashes 500 years of end of month 60 months would not .018 months would not closings balance balance For every week of TV 1.68 hours of dead air 1.8 seconds of dead air broadcasting (per channel) Cleaning 1500 sq ft of 4 sq ft still dirty after Dirty carpet smaller than a carpet cleaning postage stamp
  • 21. 7.0 Six Sigma Applications • Health care • Laboratory • Banking • Insurance • Construction • Education
  • 22.
  • 23. 8.0 Six Sigma Success Stories
  • 24. 8.1 Cheapest Six Sigma •Achieved by Dabbawala association running in Mumbai. •Daily 2 lac lunches are moved every day by estimated 5000 dabbawala’s at very moderate rate. •600000:1 defect ratio. •Six Sigma, ISO 2000 certified and this whole system runs by means of illiterate Lecture MBA’s. •No Strike for 116 years. •Acclaimed by Forbes magazine. New York Times based on survey that this industry expand 5 to 10 percent per year.
  • 25. 9.0 Conclusion • Today’s World is too competitive and to survive in this cut- throat race of success and World leaders one has to adopt the Six Sigma Methodology in any sector with any designations. • As we have seen from the world class dignified companies like MOTOROLA,SEIMENS,MICROSOFT,GE,GM to Mumbai’s DABBAWALLAS every one can attain this standard if employees and all other adjoining entities unites under the common goal for success of company for betterment of individuals for promoting National Prestige . • Hence we can draw the conclusion that the equation y = f(x) is the basic equation of life. You can be sure of the output only if you can control the inputs. In other words the output of a process is the function of its inputs.