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What is Six Sigma?

Six Sigma is a highly disciplined approach used to reduce

the process variation to such a great extent that the level of

defects reduced to less than 3.4ppm.Sigma (), a Greek letter used to describe variability.

Defect level is measured in terms of PPM or DPMO.

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Distribution Centred Shifted 1.5At 3 2700 DPMO (99.73% yield) 66180

(93.32%)

4 63 DPMO(99.9937% yield) 6210

(99.379%)

5 .57 DPMO (99.999943 % yield) 233

(99.9767%)

6 .002 DPMO (99.9999998% yield) 3.4

(99.99966%)

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Business Model & Stake Holders: While the objective of Business is to make profit, its existence depends

primarily on customers. What is a process?

Converts an input into a form, that is of value to customers.

The company need people and systems.

Marketing:

To understand the needs of customer and to identify markets.

Design:

To convert customers requirement into a product.

Manufacturing:

To produce designed parts.

Purchase:

Supplier development processes.

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:Sales and Distribution:

To ensure that customers get what they have ordered.

Servicing:

To repair any product that fails during warranty, wear & tear or

customer misuse.

Finance & Accounting:

Financial transactions are accurately maintained and to ensure

that capital is available.

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Stakeholders

Customers

--- Expects quality, delivery and cost.

Shareholders--- Expects good return on their investments.

Employees

--- Good career with the organization.

Government and Regulatory bodies--- Expects timely payment of taxes, compliance with regulations.

Society

--- Expects Contribution to overall well being.

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Six Sigma for Business Excellence

Business Excellence can be achieved by having

Quality in every process. Objectives is to meet expectations of customers and stake holders.

Manage processes to minimise waste and to comply with

Right First Time and Every Time.

To achieve Business Excellence, some approaches

TQM TPM

Kaizen

Balanced Scorecard.

Lean manufacturing

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Lean Six Sigma

Lean aims at increasing speed by eliminating waste in the system.

Six Sigma aims at reducing variations to improve process quality.

Six Sigma to make processes predictable, processes require high process

capability. Poor quality levels increase inventory.

10% scrap can slow down the process by 40%.

Only Six Sigma approach may not be able to reduce cycle times or

inventories.

Defect reduction reduces cycle time but other non value adding activities

like set up times, machine breakdowns, transportations etc; must beminimised.

To increase process speed.

Dramatic improvements are possible with Lean six Sigma implemented

together.

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Typical Tools used in Lean Six Sigma Projects

Six Sigma Roadmap

Lean Tools Define Measure Analyze Improve Control

Value stream

mapping

Tact Time

Process Flow Charts

Kan Ban Pull System

Setup time

reduction

Total Productive

Maintenance

Process Cycle

efficiency

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Six Sigma and Kaizen

Kaizen a philosophy of continuous improvement.

Six Sigma an approach towards breakthrough improvements. Kaizen - participative

- costs less

- encompasses simple tools

- number can be a few thousand

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Six Sigma and Quality Certifications

-- Basic ground work by implementing a quality system such as QS 9000 or ISO TS

16949 or at least ISO 9000.-- No international standards for Six Sigma approach.

-- Backbone of successful implementation is strong commitment from top

management.

-- Commonalities among most companies:

Project based improvement approach

Strong linkage to business goals, objectives and financial benefits. Projects sponsored by senior management.

Execution of projects by leaders called black or green belts.

Extensive training in statistical tools.

Projects across various functions not limited to product quality.