Six Sigma Overview

Six Sigma Green Belt

By:D. P. Sudame

Black Belt, Six Sigma, Management Institute, of Dr. Mikel J. Harry USA

Six Sigma Six Sigma

At At

A GlanceA Glance

The Mumbai Dabbawallahs !!

• The term Six Sigma does not come to mind when one thinks of lunch boxes and their delivery – but one delivery service in India has managed to garner a Six Sigma rating on par with Motorola.

• They have earned fame with their “perhaps one mistake every two months” out of the 170,000 lunch boxes they deliver everyday across offices in Mumbai.

• With a complicated, yet simple, coding system for each box, the delivery men get hot, home-cooked food to office-goers at lunch time, and deliver the boxes back to their homes before they get there themselves after the day’s work.

What is Quality?

Evolution of Quality

Historically

Proactive Quality“Create process that will produce less or no defects”

Contemporary

Reactive QualityQuality Checks (QC) - Taking the defectives out of what is produced

Segments in Quality

Methodologies Standards Capability Models

•Six Sigma•Lean

•ISO 9000, ISO 14000 etc.•COPC•Malcolm Baldrige

•eSCM•CMM•CMMI

Scientific way to improve capability?

Sharing Benchmarked

practices- “Standardizing”

Best practices to build

capability

What is Six Sigma?

• It is a methodology for continuous improvement

• It is a methodology for creating products/ processes that perform at high standards

• It is a set of statistical and other quality tools arranged in unique way

• It is a way of knowing where you are and where you could be!

• It is a Quality Philosophy and a management technique

Six Sigma is not:

• A standard

• A certification

• Another metric like percentage

• The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure.

• For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigma capability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything that results in customer dissatisfaction.

Two Meanings of Sigma

Path to Six Sigma

4 Sigma 6,210 Defects



5 Sigma 233 Defects

6 Sigma 3.4 Defects

Sigma levels and Defects per million

opportunities (DPMO)

What it means to be @ Six SigmaIs 99% (3.8) good enough? 99.99966% Good – At 6

20,000 lost mails per hour 7 lost mails per hour

Unsafe drinking water almost 15 minutes each day

One minute of unsafe drinking water every seven months

5,000 incorrect surgical operations per week

1.7 incorrect surgical operations per week

2 short or long landings at most major airports daily

One short or long landing at major airports every five years

200,000 wrong drug prescriptions each year

68 wrong drug prescriptions each year

Example quoted from GE Book of Knowledge - copyright GE

• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola

• Late 1970s - Motorola started experimenting with problem solving through statistical analysis

• 1987 - Motorola officially launched it’s Six Sigma program

Origin of Six Sigma

MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma

MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the criteria for management promotions

• 2002/03 - Green Belt certification became the criteria for promotion to management roles

The Growth of Six Sigma

GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma

GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma

The GE model for process improvements


DefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

Combination of change management & statistical analysis


BPMSBPMSBusiness Process Management SystemBusiness Process Management System

BPMSBPMSBusiness Process Management SystemBusiness Process Management System

DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology

DMAICDMAICSix Sigma Improvement MethodologySix Sigma Improvement Methodology

DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six

SigmaSigma

DMADOVDMADOVCreating new process which will perform @ Six Creating new process which will perform @ Six

SigmaSigma

Three Methodologies of Six Sigma

The Value Of Six SigmaThe Value Of Six SigmaThe Value Of Six SigmaThe Value Of Six Sigma

Higher Shareholder

Value

Higher Shareholder

Value

Improve Customer Satisfaction

Improve Customer Satisfaction

Improve YieldsImprove Yields

Defect Reduction Defect Reduction

Savings

Hard Savings• Labor Savings• Cycle Time Improvements• Scrap Reductions• Hidden Factory Costs• Inventory Carrying Cost

Soft Savings

• Gaining Lost Sales• Missed Opportunities• Customer Loyalty• Strategic Savings• Preventing Regulatory

Fines

While hard savings are always more desirable because they are easier to quantify, it is also necessary to think about soft savings.

Leadership CommitmentLeadership CommitmentLeadership CommitmentLeadership Commitment

Leadership CommitmentLeadership CommitmentLeadership CommitmentLeadership Commitment

Six Sigma identifies process that are off-Six Sigma identifies process that are off-target, and/or have a high degree of target, and/or have a high degree of

variation and corrects the processvariation and corrects the process

LSL = Lower spec limitUSL = Upper spec limit

LSL USL USLLSL

Off-Target Large Variation

On-Target

CenterProcess

Reduce Spread

USLLSL

Nature of a ProblemNature of a Problem Nature of a ProblemNature of a Problem XXXX

XXXXXX

XX X

X

XX

XX

X

XXX

X

XXXXXXXXXXXXXX

Note: (DPMO Distribution Shifted ± 1.5)

2 308,5373 66,8074 6,2105 2336 3.4

PPMPPM

ProcessCapabili

ty

ProcessCapabili

ty

Defects per Million Opp.Defects per Million Opp.

Sigma LevelsSigma Levels Sigma LevelsSigma Levels

Where Does The Industry Stand?Where Does The Industry Stand?Where Does The Industry Stand?Where Does The Industry Stand?

IRS - Tax Advice (phone-in)

(140,000 PPM)

7

Sigma Scale of MeasureSigma Scale of Measure

1,000,000

100,000

10,000

1,000

100

10

1

PPM

•

Restaurant Bills

Doctor Prescription WritingPayroll Processing

Order Write-up

Journal Vouchers

Wire Transfers

Domestic Airline FlightFatality Rate (0.43 PPM)

(with ± 1.5 shift)

Best-in-Class

Average Company

3 4 5 621

Airline Baggage Handling

What’s In It For You?What’s In It For You?What’s In It For You?What’s In It For You? If we are at sigma level 3, our cost of poor

quality is about 25% of sales Improvement by 1 sigma level is worth $2

Billion in savings This would DOUBLEDOUBLE our market capitalization,

our profitability, and our earnings growth

Designed in

QualityProblem

s70-80%

ManufacturinManufacturing Defects 20-g Defects 20-

30%30%

3 Sigma

6 SigmaDFSS is needed

“5 Sigma Wall”How far can a Black Belt climb?

Design for Six Sigma is the way to reach best-in-class

performance!

Six Sigma ProcessesSix Sigma ProcessesSix Sigma ProcessesSix Sigma Processes

DMAIC

DMAICDMAIC DMAICDMAIC

BreakthroughBreakthroughStrategyStrategy

1

10

100

1000

10000

100000

1000000

33

44

55

66

77

1,000,0001,000,000

100,000100,000

10,00010,000

1,0001,000

100100

1010

11

22

Sigma Scale of Measure

PPM

AverageAverageCompanyCompany

AverageAverageCompanyCompany

Best-in-Best-in-ClassClass

Best-in-Best-in-ClassClass

The Basic ObjectiveThe Basic ObjectiveThe Basic ObjectiveThe Basic Objective

Define the problem...

DMAIDMAICC

DMAIDMAICC

CharacterizationCharacterization

OptimizationOptimization

Phase 1:Phase 1:MMeasureeasure

Phase 2:Phase 2:AAnalyzenalyze

Phase 3:Phase 3:IImprovemprove

Phase 4:Phase 4:CControlontrol

Key Steps in the DMAIC Key Steps in the DMAIC processprocess Key Steps in the DMAIC Key Steps in the DMAIC processprocess

AAnalyzenalyzeAAnalyzenalyze

YYFocu

sPhase

Identify Variation Sources In Y

Validate Measurement System for Y

Define Performance Standards For Y

Select Product or Process Key Characteristic(s); e.g..., Customer Y

Establish Process Capability of Creating Y

Define Improvement Objectives For Y

MMeasureeasureMMeasureeasureYY

YY

YY

YY

YY

Key Steps in the DMAIC processKey Steps in the DMAIC process continued…continued…

Key Steps in the DMAIC processKey Steps in the DMAIC process continued…continued…

Validate Measurement System For xi

Establish Operating Tolerances On Vital Few xi

Discover Variable Relationships Between Vital Few xi

x1, x2, ... xn

x1, x2, ... xn

Vital Few xi

Vital Few xi

Vital Few xiDetermine Ability To Control Vital Few xi

Vital Few xi

Implement Process Control System On Vital Few xi

Screen Potential Causes For Change In Y & Identify Vital Few xi

CControlontrolCControlontrol

IImprovemproveIImprovemprove

DefineDefine ControlControlImproveImproveAnalyzeAnalyzeMeasureMeasure

The Six Sigma Process

•QFD•Surveys•GQRS•Warranty•In-plantdata

•Pareto

•Blueprints•Process Sheets

•Metrics•FlowCharts

•LinkageMatrices

•FMEAs•MeasurementSystemAnalysis

•CapabilityAnalysis

•MultivariateAnalysis

•SPC & Charting

•Basic Stats- Hypothesis- Basic DoE

•Check Sheets•Histograms•Scatter Diagrams

•Regression

•DesignedExperiments- Full Factorial- Fractionals- Comparison

•MeasurementSystemAnalysis

•Capability•StatisticalTolerancingof Process

•Control Plan

•OperatorIllustrations

•OperatorInstructions

•Error Proofing•AutomatedControl

•Process Flow Sheets•VariationMonitoring

Tools

Alignment of Six Sigma ToolsAlignment of Six Sigma Tools

Six Sigma Six Sigma Deployment Structure MapDeployment Structure Map

Manufacturing Planning

John ManteyDeployment Champion

NA Region

TBDDeploymentChampion

NA RegionTBD

Deployment Champion

Asia


NA Region


NA/Asia Man Ops

Deployment Director

Philippe Pernelet

Deployment Champion

Product Development

Deployment Director

Europe Region


Europe Region


Europe Region

TBDDeployment

Champion

South America

Ruben GelschynDeployment Champion

Europe/South America

Dave PickmanDeployment Director

(Interim)

Glass

Bruce Flaherty Deployment Director

Materials Mgmt.

Mike Long Deployment Director

Aftermarket

Lisa BahashDeployment

Director

Quality Brian Edelman

DeploymentDirector

CBUDave DiroffDeployment

Director

FinanceJohn Weirich

DeploymentDirector

IT

George Fields Jr. Deployment Director

Business Strat

Mark HorvathDeployment

Director

Staff

Corporate Six Sigma Director

Master Black Belt

Master Black Belt

Project Champion

Project Champion

Black Belt

Black Belt

Black Belt

Project Champion

Human Resources

Chuck Hudson

DirectorDeployment

CBU

Bob Jenkins

DirectorDeployment

Corporate Quality Director

Full Time Six Sigma

The Quality Team

Master Black BeltMaster Black Belt

Black BeltBlack Belt Black BeltBlack Belt

Green BeltGreen Belt



- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or

“high risk” projects

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or

“high risk” projects

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

- Part time or full time resource

- Deployed to less complex projects in areas of functional expertise

Six Sigma Improvement Projects Undertaken-in India-

Industry wise Industry Department Types of Projects

Breakthrough Improvements

Duration

Engineering/ Projects Production/Sales/Purchase/ Supply/Process

Green Belt 6-T0 8 Months

IT Sales/Software Projects/Client Billing/Development/Customer

Green Belt/Black Belt 6-T0 8 Months

Consumer Purchase/Sales/Accounts/Supply/Process/


Service Industry Supply Chain/Sales/Customer Satisfaction/


Call Center Finance, Billing, Process, Customer satisfaction


Role of Green Belt• Almost all the sectors of the Industry (Manufacturing, IT, IT

Training,BPO Parma, Auto Components, Banking, Projects, Consumer, Service, Electronics, Oil, Gov and International JV’s ) undertake Green Belt/Black Projects

Role of Green Belt :1. Leads projects2. Help champion to 3. select team members4. Plan team meetings5. Lead meetings6. Handle meeting logistics7. Make recommendation or changes

Who else is using Six Sigma in India?

• Reliance Petroleum, ONGC and Indian Oil have adopted Six Sigma in some of their core ... Essar and Oil India Limited are also our clients. ... List of such projects are large and shall vary from company to ...

• GE group of companies like GE power controls, GE medical systems, GE capital, GE IDC and companies like Wipro, Satyam, Reliance, HBL, Samtel Group and major companies have already implemented six sigma

• More than 115 big corporate have started using six sigma in India

Six Sigma is used in which department ?

• Six Sigma in Accounting Department

• Six Sigma in Accounts Receivable

• Six Sigma in Billing Department

• Six Sigma in Healthcare / Mental Health

• Six Sigma in Human Resources

• Six Sigma in Human Resources - Employee Turnover

• Six Sigma in Distribution Centers / Stock Rooms / Order Picking

• Six Sigma in Information Technology (IT)

• Six Sigma and Enterprise Resource Planning (ERP)

• Six Sigma in Insurance Industry

http://military.isixsigma.com/forum/showmessage.asp?messageID=17445










Six Sigma is used in which department ?

• Six Sigma in Inventory / Warehousing

• Six Sigma in Logistics / Traffic Applications

• Six Sigma in Logistics II

• Six Sigma in Retail

• Six Sigma in Sales

• Six Sigma in Sales & Marketing

• Six Sigma in Software

• Six Sigma in the Voting process

• Six Sigma in Order Forecasting Processes

• Six Sigma in India

• Six Sigma in a small business


Green Belt - Role

1)1) Contribute process expertise.Contribute process expertise.2)2) Communicate change with other co-workers not Communicate change with other co-workers not

on the team.on the team.3)3) Collect data.Collect data.4)4) Accept and complete all assigned action items.Accept and complete all assigned action items.5)5) Implement improvements.Implement improvements.6)6) Attend and participate in all meetings. Attend and participate in all meetings. 7)7) Be motivated.Be motivated.8)8) Participate in decision making process/ Participate in decision making process/

formulating action scheme for the project. formulating action scheme for the project.

Project Selection SourcesProject Selection SourcesProject Selection SourcesProject Selection Sources

High volume repetitive processes

Items with high cost savings implications

High leverage customer visible defects

Processes that affect the customer

Multinationals using Six Sigma

Agilent Technologies; Bank of America; Boeing; British Telecom; Consolidated Container Company; Dell COMPUTER; DuPont; Eli Lilly; Ford Motor Company; General Electric; Hewlett-Packard; Honeywell; Johnson & Johnson; JP Morgan Chase; Medtronic; Motorola; NCR; Northrop Grumman; Pfizer; Raytheon; Sony; Verizon and more.

http://www.allbusiness.com/company-activities-management/operations-quality-control/5199492-1.html

Scenario-1:

Organization : Motorola

Turnover : $ 4000 million Manpower : 1 lakh

Locations : 30

To become world leaders in manufacturing of communication products such as pagers, mobile phones etc.

1979 : Quality was stinking

Stiff competition especially from Japanese Companies.

Changed Scenario:

Organization : Motorola

Turnover : $ 4000 million Man Power : 1 lakh

Locations : 30

To become world leaders in manufacturing of communication products such as pagers, mobile phones etc.

MotorolaSavings over 2.2 billion dollars every year, using Six SigmaAnd 1 billion dollars savings potential in non-manufacturing costsReturns in Training 1:10

Scenario-2:

Organization : ABB Power Transfer (TPT) plant

Turnover : 1000 million Man Power : over 500

Below average performance

Well below world class performance

Defect level over 60% higher then competitors

Competitors profits 10% more them ABB

Urgent need for major improvement

Scenario-2: Changed Scenario

Organization : ABB Power Transfer (TPT) plant


ABB

68 % Reduction in defect Levels30 % Reduction in production cost898 million dollars savings each year

Changed Scenario

Scenario-3:

Organization : GE Medical Systems (GEMS)


Scanner speed 3 minutes as compared to faster scanners (10 to 30 seconds)

Due to low bulb life 20 million bulbs failing pre shipment tests annually.

High replacement cost of the bulb ($ 60,000)

CAT scanner speed and life need to be substantially improved to stand in the market

Scenario-3: Changed Scenario

Organization : GE Medical Systems (GEMS)


Spending 500 million dollars expects to get back 2 billion dollars in one year

8 to 12 billion dollars in 5 years

CAT scanner speed and life need to be substantially improved to stand in the market

Scenario-4:

Organization : XYZ Ltd.

1999-2000 sales - Rs.1500 million

No. of employees - 1200

No. of Business units - 11

No. of locations - 4 (production)

above 100 (service)

Products/Service - Alternative Power Systems

Production Volume - 10 million units per month

Customers - Communication sector, Railways, Defense & Industry

Six Sigma – Career Option!• Basic - Six Sigma Awareness• Green Belt Projects• Participate in Black Belt Projects• Assist business functions with day to day

activities

• Mentor/Train Green Belts• Black Belt Projects• Change Agents• Work along with the business owners

• Mentor/ Train Black Belts• Run Strategic projects• More Strategic than tactical role

Green Belt (GB)Green Belt (GB)

Black Belt (BB)Black Belt (BB)

Master Black Belt (MBB)Master Black Belt (MBB)

Highly paid!Highly paid!Work like a Consultant!Work like a Consultant!

Huge demand in the industry!Huge demand in the industry!

Overall…A high flying Career!!Overall…A high flying Career!!

Six Sigma - Three Dimensions

ToolsOrganization

Methodology

Process variation

LSL USL

Upper/Lower specification

limits

Regression•••••••• •••• •••

••••

•••• •• ••

••• ••••

••••• ••

•••••

Driven by

customer

needs

Enabled by quality team.

Led by Senior Mgmt

Define Measure

Analyze Improve ControlVendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer VendorVendorProcess BProcess BProcess AProcess ACustomerCustomer

Process Map Analysis

0

5

10

15

20

25

30

35

L K A F B C G R D

0%

20%

40%

60%

80%

100%

Frequency Cumulative Frequency

Pareto Chart

Six Sigma Job Opportunities-India

• Listed Jobs at www.naukri.com• Listed jobs at www.monsterIndia.com

• Total Jobs at Naukri for Green Belt= ^1143• Total Jobs at Monster= ^2201

http://www.naukri.com/

http://www.monsterindia.com/

What Employer’s like IBM are asking in today’s job market?

• Job IBM India Ltd Dated 3rd August 2010 at Naukri.com Experience 0 To 2 Years• Enable the operations team achieve & exceed client metrics

# Perform Call monitoring, Ticket checks & Call Calibrations - Achieve targets

# Effective Coaching & feedback to entire span of agents/ service representatives

# Monitor team performance, generate reports, trends & dashboards

# Ability to analyze data & perform a thorough Root Cause Analysis

# Take new actions within & across teams, to improve productivity and share best practices

# Ability to collaborate across multiple teams for process improvements and standardization.• Desired Profile # Skill's required:• # Good Communication Skills: Written and Oral

# Knowledge of GDF and implementation aspect of the same

# Knowledge of quality standards and practicality of same.

# Quality Certification will be considered

# Great level of confidence and analytical skills

# English : Fluent

Job Hinduja Group, Navi Mumbai

• Desired Candidate Profile Experience 0 to 1 Year Naukri.com• •Knowledge of Quality concepts is a must

•Knowledge of Six Sigma will be an added advantage • Walk-In: Mon-Sat. 10:00am-5:00pm• Job Description• • Should be able to create reports and analyze data• • Should be able to interact with clients and develop ways to improve call quality• • Conduct daily and weekly call monitoring and call calibration sessions.• • Helping agents meet their parameters• • Liaison with Customers to streamline the data entering process• • Identify errors and give immediate feedback to the agent• • To proactively support Team Leader when required• • Conduct team briefing sessions• Keywords: Quality Company Profile• Industry Type: BPO/ITES• Role: QA/QC Exec.• Functional Area: ITES/BPO/KPO, Customer Service, Ops.• Posted Date: 30 Aug, 2010

SummarySummarySummarySummary

What Do We Want You to Do?

Support Six Sigma Projects Contribute to the Projects list Learn the Six Sigma Language Ask for the Data Participate in the Cultural ChangeAdd value to your CVGo for the best job with additional six sigma

skills

Thank You!!!

Documents

Six Sigma Overview