6 sigma-tqm-sit-barani

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COLLECTED BY:

Dr. K. BARANIDHARAN8/22/2012 1


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MEANING OF SIX SIGMA

HISTORY OF SIX SIGMA

OBJECTIVES IMPLEMENTATIN OF SIX SIGMA

LEVEL OF SIX SIGMA

DIMAC

DMADV

DIMAC & DMADV

BENEFICIAL

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Six sigme is similar to Zero

Defects (ZD) is a philosophicalbenchmark or standard ofexcellence proposed by Philip

crosby,

A defect is anything that results in

customer dissatisfaction8/22/2012 3


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Six sigma is a way of thinking and the results of theapproach can yield a spectrum of improvementchoices based on the balance of values and risk.

Six sigma is an internationally recognizedmanagement process focused on producing high

quality products or services to meet the customersneed and satisfaction.

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Motorola company that invented Six Sigma.

The term Six Sigma was coined by Bill Smith, anengineer with Motorola

Late 1970s - Motorola started experimenting withproblem solving through statistical analysis

1987 - Motorola officially launched its Six Sigmaprogram

Motorola saved more than $ 15 billion in the first 10years of its Six Sigma effort

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To reduce variation.

To solving the problems in scientific manner.

Six Sigma places an emphasis on the DMAIC

approach (define, measure, analyze, improve,and control) to problem solving.

To develop the bottom line responsibilitiestowards continuous improvement.

Organizations using Six Sigma often utilizeteams that are assigned well-defined projectswith a direct impact on the bottom line

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The Six Sigma Evolutionary Timeline

1736: Frenchmathematician

Abraham deMoivre publishesan articleintroducing the

normal curve.

1896: Italian sociologist VilfredoAlfredo Pareto introduces the 80/20rule and the Pareto distribution inCours dEconomie Politique.

1924: Walter A. Shewhart introduces

the control chart and the distinction ofspecial vs. common cause variation ascontributors to process problems.

1941: Alex Osborn, head ofBBDO Advertising, fathers awidely-adopted set of rules for

brainstorming.

1949: U. S. DOD issues MilitaryProcedure MIL-P-1629, Proceduresfor Performing a Failure Mode Effectsand Criticality Analysis.

1960: Kaoru Ishikawaintroduces his now famouscause-and-effect diagram.

1818: Gauss uses the normal curve

to explore the mathematics of erroranalysis for measurement, probabilityanalysis, and hypothesis testing.

1970s: Dr. Noriaki Kanointroduces his two-dimensionalquality model and the three

types of quality.

1986: Bill Smith, a seniorengineer and scientist introducesthe concept of Six Sigma atMotorola

1994: Larry Bossidy launchesSix Sigma at Allied Signal.

1995: Jack Welchlaunches Six Sigma at GE.

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Six Sigma Companies

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Motorola saved $17 billion from 1986 to 2004, reflectinghundreds of individual successes in all Motorola businessareas including:

Sales and marketing Product design Manufacturing Customer service Transactional processes Supply chain management

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Financial bank of America, GE Capital,HDFC,HSBC,AmericanExpress

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 soft8/22/2012 10


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1. Six Sigma Champion: Champions undergo five days of training andare taught how to manage projects and act as advisors to variousproject teams.

2. Green Belts: They undergo two weeks of training that includes

project-oriented tasks. They act as team members to the Six Sigmaproject team. Their cooperation and involvement is necessary forprojects success.

3. Black belts: They receive four weeks of trainings and are directlyinvolved in the implementation of Six Sigma Projects. They are

the project leaders and go through in-depth training on Six Sigmaapproach and tools and work full time on the project.

4. Master Black Belts: These are the people who conduct Six SigmaTraining and also have on the job training and experience

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Six Sigma Methods

SixSigma

Methods

Service

Design

production

IT

Management

Administ

ration

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APPROACHES OF SIX SIGMA

THIS IS ORGANIZATIONAL BASED

THIS IS BASED ON CUSTOMER NEEDS

AND SATIFACTIONS

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It approach undertaken to improve existing business process

CONTRL

DEFINE

MEASUREANALYSE

IMPROVE

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1.Define high-level project goals and the current process.

2.Measurekey aspects of the current process and collect relevant data.

3.Analyzethe data to verify cause-and-effect relationships. Determinewhat the relationships are, and attempt to ensure that all factors havebeen considered.

4.Improveor optimize the process based upon data analysis using

various tools

5.Controlto ensure that any deviations from target are corrected beforethey result in defects.

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This approach is undertaken when there is a need to create new design orproduct:

DEFINE

MEASURE

ANALYZE

DESIGN

VERIFY

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Definedesign goals that are consistent with customer demands andthe enterprise strategy.

Measureand identify CTQs (characteristics that are Critical ToQuality), product capabilities, production process capability, and risks.

Analyzeto develop and design alternatives, create a high-level designand evaluate design capability to select the best design.

Designdetails, optimize the design, and plan for design verification.This phase may require simulations.

Verifythe design, set up pilot runs, implement the production processand hand it over to the process owners.

DMADV is also known as DFSS, an abbreviation of "Design ForSix

Sigma

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DMAIC Defines a business process.

Measuring current process

Identify root cause of the recurringPROBLEMS

Improvements made to reducedefects

Keep check on future performance

Define customer needs

Measure customer needs &

specification

Analyze options to meet customersatisfaction.

Model is deigned to meet customerneeds

Model put through simulation tests

for verification

DMADV

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Slide 20

Customer targetLower Specification Limit Upper Specification Limit

6s6s

0.00034% of points will be outside of the specification limits ie. defe(= 3.4 parts per million out of spec.)

= 99.7966% of data inside the limits (Cp = 2)

0.00017%1.7 ppm

0.00017%1.7 ppm

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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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How Six Sigma canbe Beneficial for

You?

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Focus on customers.Improved customer loyalty.Reduced cycle time.Less waste.Data based decisions.Time managementSustained gains and improvements.

Systematic problem solving.Employee motivationData analysis before decision making.Faster to market.

Team building.Improved customer relations.Assure strategy planning.

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Effective Supply chain management

Knowledge of Competition & Competitors.

Develop Leadership skill.Breakdown barriers between departments

and functions.

Management training.

Improve presentation skills.

Integration of products ,services anddistribution.

Use of standard operating procedures.Better decision making.

Improving Projects Planning kills.

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Slide 25

Six Sigma Competitive

Advantage

Improve

Quality

ExternalQuality

Customer

Satisfaction

Market

Share

Revenue

Internal

QualityOperating

Costs

Capital

Costs

Economies of

Scale

Higher Profit

Higher ROI

Products &

Services

Processes &

People

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THANK

YOU8/22/2012

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6 sigma-tqm-sit-barani