inayat abbas malla

1. What is Six Sigma?
• A goal of near perfection in meeting customer requirements
• A sweeping culture change effort to position a company for greater
customer satisfaction, profitability and competitiveness
• A comprehensive and flexible system for achieving, sustaining and
maximizing business success; uniquely driven by close understanding of
customer needs, disciplined use of facts, data, and statistical analysis, and
diligent attention to managing, improving and reinventing business
processes
(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)

2. Is 99% Quality Good Enough?
 22,000 checks will be deducted from the wrong
bank accounts in the next 60 minutes.
 20,000 incorrect drug prescriptions will be written
in the next 12 months.
 12 babies will be given to the wrong parents each
day.

3. But is Six Sigma Realistic?
·
1
11
21
31
41
3 4 5 6 7
10
1
100
1K
10K
100K
765432
(66810 ppm)
· IRS – Tax Advice (phone-in)
Best in Class
(3.4 ppm)
Domestic Airline
Flight Fatality Rate
(0.43 ppm)
·(233 ppm)
Average
Company
Purchased Material
Lot Reject Rate
Air Line Baggage Handling
Wire Transfers
Journal Vouchers
Order Write-up
Payroll Processing
Doctor Prescription Writing
Restaurant Bills
·······
DefectsPerMillionOpportunities(DPMO)
SIGMA

4. Six Sigma Improvement Methods
DMAIC vs. DMADV
Define
Measure
Analyze
Design
Validate
Improve
Control
Continuous Improvement Reengineering

5. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Define: Define who your customers
are, and what their requirements are
for your products and services – Their
expectations. Define your team goals,
project boundaries, what you will focus
on and what you won’t. Define the
process you are striving to improve by
mapping the process.

6. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Measure: Eliminate guesswork and
assumptions about what customers need
and expect and how well processes are
working. Collect data from many sources
to determine speed in responding to
customer requests, defect types and how
frequently they occur, client feedback on
how processes fit their needs, how clients
rate us over time, etc. The data collection
may suggest Charter revision.

7. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Analyze: Grounded in the context of the
customer and competitive environment,
analyze is used to organize data and look
for process problems and opportunities.
This step helps to identify gaps between
current and goal performance, prioritize
opportunities to improve, identify sources
of variation and root causes of problems
in the process.

8. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Improve: Generate both obvious and
creative solutions to fix and prevent
problems. Finding creative solutions by
correcting root causes requires
innovation, technology and discipline.

9. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Control: Insure that the process
improvements, once implemented, will
“hold the gains” rather than revert to
the same problems again. Various
control tools such as statistical process
control can be used. Other tools such
as procedure documentation helps
institutionalize the improvement.

10. Six Sigma DMADV Process
Measure
Validate
Define
Analyze
Design
Design: Develop detailed design
for new process. Determine and
evaluate enabling elements.
Create control and testing plan for
new design. Use tools such as
simulation, benchmarking, DOE,
Quality Function Deployment
(QFD), FMECA analysis, and
cost/benefit analysis.

11. Six Sigma DMADV Process
Measure
Validate
Define
Analyze
Design
Validate: Test detailed design
with a pilot implementation. If
successful, develop and execute a
full-scale implementation. Tools
in this step include: planning
tools, flowcharts/other process
management techniques, and
work documentation.

12. Total Quality Management
 Quality system involving entire organization from
supplier to customer
 Objective: Meet or exceed customer needs through
company-wide continuous improvement
 Early proponents
 W. Edwards Deming
 J. M. Juran
 Philip B. Crosby

13. Total Quality Management
Principles
 Continuous improvement
 Employee empowerment
 Benchmarking
 Just-in-time (JIT)
 Knowledge of TQM tools
© 1995 Corel Corp.

14. Continuous Improvement
 Represents continual improvement of process &
customer satisfaction
 Involves all operations
& work units
 Other names
 Kaizen (Japanese)
 Zero-defects
 Six sigma
© 1984-1994 T/Maker Co.

15. Employee Empowerment
 Getting employees involved in product & process
improvements
• 85% of quality problems are due to process & material
• Techniques
• Talk to workers
• Support workers
 Let workers make decisions
 Build teams & quality circles
© 1995 Corel Corp.

16. Quality Circles
 Group of 6-12 employees from same work area
 Meet regularly to solve work-related problems
 4 hours/month
 Facilitator trains
& helps with
meetings
© 1995 Corel Corp.

17. Quality Costs
COST OF QUALITY IS THE COST OF
NON QUALITY
1: 10:100 Rule
“A stitch in time saves nine”

18. Types of Quality Costs
The cost of quality is generally classified into four
categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure

19. Quality Costs
Cost of Prevention
 Prevention costs include those activities which remove and
prevent defects from occurring in the production process.
 Included are such activities as quality planning, production
reviews, training, and engineering analysis, which are
incurred to ensure that poor quality is not produced.
Appraisal
 Those costs incurred to identify poor quality products after
they occur but before shipment to customers. e.g. Inspection
activity.

20. Quality Costs
Internal Failure
 Those incurred during the production process.
 Include such items as machine downtime, poor quality
materials, scrap, and rework.
External Failure
 Those incurred after the product is shipped.
 External failure costs include returns and allowances,
warranty costs, and hidden costs of customer dissatisfaction
and lost market share.

21. Benefits of TQM
 Greater customer loyalty
 Market share improvement
 Higher stock prices
 Reduced service calls
 Higher prices
 Greater productivity

22. Conclusion
Remember the earth revolves around the CUSTOMER.
Quality begets customers and customers beget quality. Let
us all have action plans to support quality, this will make
the world happy and earn us the blessing of God
Almighty.
“Actions are direct reflection of one’s intentions”