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SEMINARON

SIX SIGMAMETHODOLOGY

Presented By:

PRADIPTA ROUT

M.TECH.(I.E.)

REGD.NO.-

C.E.T.,BHUBANESWAR

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INTRODUCTION

Todays competitive environment leaves no room for errors.

Companies must delight their customers.

Companies must look for new ways to exceed customers

satisfaction.

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HOW GOOD IS GOOD ENOUGH?With 99.9 %

quality

With Six Sigma

Quality

No. of wrong medicalprescriptions per

year

4000 13

No. of lost mails per

hour

400 One lost article of

mail per hour

Out of every 500000

computer restarts

4100 crashes Less than 2 crashes

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ORIGIN OF SIX SIGMA

Three sigma(95%) was introduced by Walter Shewhart in 1920.

Credit of coining term Six Sigma goes to Motorola Engineernamed Bill Smith in 1986.

Six Sigma was introduced by Motorola to reduce defect rate of

manufactured electronic boards.

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WHAT IS SIX SIGMA?Business Definition

Data-driven approach and methodology to significantly improvecustomer satisfaction and quality of process outputs by identifying and

reducing variability as well as defects in every aspect of business.

Technical Definition

A statistical term signifying 3.4 defects per million opportunities wherea defect is defined as anything that could lead to customers

dissatisfaction. An opportunity is the total quantity of chances for a

defect.

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PROCESS CAPABILITYProcess capability is also defined as the capability of a process to

meet its purpose as managed by an organization's management

and process definition structures

Two parts of process capability are:

1) Measure the variability of the output of a process.2) Compare that variability with a proposed specification or

product tolerance.

Standard Deviation ,

Where

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SIX SIGMA CONCEPT OF PROCESSCAPABILITY

Capability studies measure the number of standard

deviations between the process mean and the nearest

specification limit in sigma units. As process standarddeviation goes up, or the mean of the process moves away

from the center of the tolerance, fewer standard deviations

will fit between the mean and the nearest specification limit,

decreasing the sigma number and increasing the likelihoodof items outside specification.

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SIX SIGMA CAPABILITYIMPROVEMENTSigma Performance Levels -- One To Six Sigma

Sigma Level Defects Per Million Opportunities (DPMO)

1 690,000

2 308,537

3 66,807

4 6,210

5 233

6 3.4

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CHIEF CHARACTERISTICSSMART (Specific Measurable Attainable Relevant Time-

Bound)

Distinguish vital few from trivial many. Six Sigma is a customer focussed programme.

Manufacturing and business processes have characteristics

that can be measured, analyzed, improved and controlled.

Making decisions with verifiable data rather than guesswork.

Timely Execution of processes.

Training and cultural change to build a special

infrastructure in the organisation.

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THE ROAD MAP

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SUB METHODOLOGIESDMAIC process(define, measure , analyze , improve , control )

It is an improvement system forexisting processes falling belowspecification and looking for incremental improvement

DMADV process (define, measure, analyze, design, verify)

It is an improvement system used to develop new processes or

products at Six Sigma quality levels. It can also be employed if a

current process requires more than just incremental

improvement.

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DMAICDEFINE

Define who customers are, what their requirements are for

products and services, and what their expectations are

Define project boundaries the stop and start of the process

Define the process to be improved by mapping the process flow

MEASURE

Develop a data collection plan for the process

Collect data from many sources to determine types of defects andmetrics

Compare to customer survey results to determine shortfall

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DMAICANALYZE

Identify gaps between current performance and goal performance

Prioritize opportunities to improve

Identify sources of variation

IMPROVE

Create potential solutions using technology and discipline

Develop and deploy implementation plan

CONTROL

Prevent reverting back to the "old way" Require the development, documentation and implementation of

an ongoing monitoring plan

Institutionalize the improvements through the modification of

systems and structures (staffing, training, incentives)

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WORKING OF SIX SIGMA DMAICDefine - high level goals and current process

Measure - key aspects of current process and collect relevant data.

Analyze - the data to verify cause-and-effect relationships.

Improve - the process based upon data analysis.

Control - the improvements to keep the process on the new course.

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DFSS(Design For Six Sigma)

More of an approach than a defined methodology as there are no

universally recognized phases or steps.

Is used to design or re-design a product or service from the ground

up.

Expected process Sigma level for a DFSS product or service is at

least 4.5 (no more than approximately 1 defect per thousand

opportunities), but can be 6 Sigma or higher depending the product.One popular design is DMADV.

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WORKING OF SIX SIGMA DMADVDefine - design goals that are consistent with customer demands

and the enterprise strategy.

Measure -and identify CTQs (characteristics that are Critical To

Quality), process capabilities 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.

Verify - the design, set up pilot runs, implement the production

process and hand it over to the process owners.

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SIX SIGMA DEPLOYMENT

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SIX SIGMA DEPLOYMENT1. Champions take responsibility for Six Sigma implementation

across the organization in an integrated manner. Champions

also act as mentors to Black Belts.

2. Master Black Belts, identified by champions, act as in-house

coaches on Six Sigma. They devote 100% of their time to Six

Sigma. They assist champions and guide Black Belts and

Green Belts. Apart from statistical tasks, they spend their time

on ensuring consistent application of Six Sigma across various

functions and departments.3. Black Belts apply Six Sigma methodology to specific

projects. They devote 100% of their time to Six Sigma. They

primarily focus on Six Sigma project execution, whereas

Champions and Master Black Belts focus on identifyingprojects/functions for Six Sigma

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SIX SIGMA DEPLOYMENT4. Green Belts, the employees who take up Six Sigma

implementation along with their other job responsibilities,

operate under the guidance of Black Belts.

5. Yellow Belts, trained in the basic application of Six Sigma

management tools, work with the Black Belt throughout the

project stages and are often the closest to the work.

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BENEFITS OF SIX SIGMAIncreased revenue from removing process variability.

Increased revenue from excellent new products or greatly

improved existing products

Dramatic reduction in defects, cycle time and cost

Reduced reliance on inspection for quality

Greatly improved customer satisfaction

Reduced costs from rework and elimination of non

value-adding work

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SIX SIGMA DRIVES MEASURABLERESULTSThe pioneer company, Motorola has reported savings upto $21

billion.

General Electric reported $750 million savings in cost in

1998.

A Rubber Manufacturer was unable to perform fast mold

changes, impacting delivery schedules and customer satisfaction.

Six Sigma was applied, reducing mold change time 53% and

creating $525,000 in sales capacity.

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SUCCESS STORY OF SIX SIGMA ININDIAIn 1998-99, its first year of implementing six sigma, Wipro

recorded savings of Rs. 4.40 crore and it is growing year by year.

Godrej-GEs assembly-lines at Mohali, Pune has brought

down the defects to 1000 per million parts, between four and

five sigma, with a saving of Rs. 10 crore.

Maruti Udyog, despite its faith in Japanese Quality Practice,

has started a six sigma pilot project in its spares deptt.

Hero Motors is using six sigma to bring down warranty-costs.

Modi Xerox has blended six sigma with their on-going quality

programmes, says D.P. Roy, Executive director, Modi Xerox.

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CONCLUSION

Generates sustained success

Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement;