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Six Sigma A Strategy for Achieving

World Class Performance

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Purpose of Presentation

Share concepts and application of Six Sigmawith a case study

Deployment of Six Sigma as a strategy to

achieve World Class Performance

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World Class Performance

With 99 %Quality With Six SigmaQuality

Drinkingunsafe water

Almost 15 minseach day

Only 1 hour eachmonth

Electricity No electricity foralmost 7 hrseach month

No electricity for 7hrs each year

Out of every500,000computerrestarts

4100 crashes Less than 2crashes

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What Is Six Sigma?

Degree of variation

Level of performance in terms of defects

Statistical measurement of process capability

Process improvement methodology

It is a Goal

Strategy for change

A commitment to customers to achieve anacceptable level of performance

Sigma is aletter

in the GreekAlphabet

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Six Sigma Definitions

Business Definition

A break through strategy to significantlyimprove customer satisfaction by reducingvariability in every aspect of business.

Technical Definition

A statistical term signifying 3.4 defects permillion opportunities.

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Sigma

Level

Defects Per Million

Opportunities

Rate of

Improvement

1 690,000 -

2 308,000 2 times3 66,800 5 times

4 6,210 11 times

5 230 27 times6 3.4 68 times

Performance Standards

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Revenue Capital Utilization Return on Assets Profits

Quote Time Defect Rate Waste On Time Delivery Inventory; Machine Utilization

Strategically: Used by Leadership as a vehicle todevelop sustainable culture of Customer, Quality,Value and Continuous improvement.

Operationally: By Quality Managers to reduce cycletimes, costs, errors, rework, inventory, equipmentdowntime.

Deployment across all types of processes andindustries - worldwide

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Who is Implementing Six Sigma

Financial - Bank of America, GE Capital,Electronics - Allied Signal, Samsung, Sony

Chemicals - Dupont, Dow Chemicals

Manufacturing - GE Plastics, Johnson andJohnson, Motorola, Nokia, Microsoft, Ford

Airline - Singapore, Lufthansa, Bombardier

And hundreds of others in Americas, Europe,Sub Continent

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Six Sigma Results

Company Annual Savings

General Electric $2.0+ billion

JP Morgan Chase *$1.5 billion (*since inception in 1998)

Motorola $ 16 billion (*since inception in 1980s)

Johnson &Johnson

$500 million

Honeywell $600 million

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Six Sigma Project Methodology

ControlDefine Measure Analyze Improve

.

Project Phases

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Versatile

Breakthrough improvements

Financial results focus

Process focus

Structured & disciplined problem solvingmethodology using scientific tools andtechniques

Customer centered

What Makes Six Sigma Different?

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Benefits of Six Sigma

Generates sustained success Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement;

Promotes learning across boundaries;

Executes strategic change

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Thank you

No questions please