Project Study

On

“SIX SIGMA APPLICATION AND TRAINING”

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Contents

1. Introduction

2. Objectives and Scope

3. Benefits and Limitations

4. Research Methodology

5. Theoretical Perspective

6. Six Sigma Technical Tools

7. Analysis and Findings

8. Conclusion & Summary

9. Recommendation

10. Annexure

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Introduction to Six Sigma

Six Sigma's aim is to eliminate waste and inefficiency, thereby increasing customer

satisfaction by delivering what the customer is expecting. Six Sigma is a highly disciplined

process that helps us focus on developing and delivering near-perfect products and services.

Six Sigma follows a structured methodology, and has defined roles for the participants. Six

Sigma is a data driven methodology, and requires accurate data collection for the processes

being analyzed. Six Sigma is about putting results on Financial Statements. Six Sigma is a

business-driven, multi-dimensional structured approach which works in the following

dimensions:

Six Sigma states the idea for improving the Processes of business.

Six Sigma focuses on lowering the defects in the various processes.

Six sigma adheres the processes those reduces the variability

Six sigma reduces costs

Six Sigma is helpful in increasing the customer satisfaction

Six Sigma is helpful in increasing the profits

The word Sigma is a statistical term that measures how far a given process deviates from

perfection.

The crux behind Six Sigma is that if you can measure how many "defects" you have in a process,

you can systematically figure out how to eliminate them and get as close to "zero defects" as

possible and specifically it means a failure rate of 3.4 parts per million or 99.9997% perfect.

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Inception of SIX SIGMA

In the mid-1980s, Motorola, under the leadership of Robert W. Galvin, was the initial

developer of Six Sigma. Credit for the six sigma’s invention goes to late Bill Smith; Smith, a

senior engineer and scientist within Motorola’s Communications Division, had noted that its

final product tests had not predicted the high level of system failure rates Motorola was

experiencing.

He suggested that the increasing level of complexity of the system and the resulting high number

of opportunities for failure could be possible causes for this. He came to the conclusion that

Motorola needed to require a higher level of internal quality, and he brought this idea to then-

CEO Bob Galvin’s attention, persuading him that Six Sigma should be set as a quality goal.

This high goal for quality was new, as was Smith’s way of viewing reliability of a whole process

(as measured by mean time to failure) and quality (as measured by process variability and defect

rates). Motorola had always been a pioneer in the areas of productivity and quality.

In the 1980s, Motorola had been the site for presentations of quality and productivity

improvement programs by a number of experts, including Joseph M. Juran, Dorian Shainin (our

colleague at Rath & Strong), Genichi Taguchi, and Eliyahu Goldratt. Mikel Harry, now president

of the Six Sigma academy and co-author of Six Sigma: The Breakthrough Management Strategy

Revolutionizing the World’s Top Corporations, was an attendee of some of these programs;

inspired in part by their thinking, he developed a program for the Government Electronics

Division of Motorola that included Juran’s quality journey, Statistical Process Control (SPC),

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and Shainin’s advanced diagnostic tools (ADT) and planned experimentation (PE). Harry then

worked with Smith on the Six Sigma initiative.

Harry led Motorola’s Six Sigma Institute and later formed his own firm specializing in the

subject. Smith and Harry’s initial Six Sigma umbrella included SPC, ADT, and PE. Later, they

added Design for Manufacturability (product capability and product complexity), accomplishing

quality through projects and linking quality to business performance. For Meeting the challenge

Galvin had set in 1981 to improve quality by tenfold and developing Six Sigma helped Motorola

to win the first Malcolm Baldrige National Quality Award in 1989.

In line with Galvin’s policy of openness and in response to the interest generated by the Baldrige

Award, Motorola shared the details of its Six Sigma framework widely. In the mid-1990s,

AlliedSignal’s Larry Bossidy and GE’s Jack Welch saw in Six Sigma a way to lead their

organizations’ cultural change through Six Sigma initiatives and also achieve significant cost

savings.

In 1998, Business Week reported that GE had saved $330 million through Six Sigma, double

Welch’s previous prediction. Interest in Six Sigma really took off after that article appeared, an

interest that was fed by GE’s continued success with Six Sigma and Jack Welch’s speeches and

books.

Definition of Six Sigma

The Six Sigma of today speaks the language of management: bottom-line results. It

institutionalizes a rigorous, disciplined, fact-based way to deliver more money to the bottom line

through process improvement and process design projects—selected by the top leadership and

led by high potentials trained as Black Belts or Master Black Belts in Six Sigma—that aim to

create near-perfect processes, products, and services all aligned to delivering what the customer

wants. In successful implementations, the majority of Six Sigma projects are selected for

measurable bottom-line or customer impact that is completed within two to six months. The

projects deliver through the application of a well-defined set of statistical tools and process

improvement techniques by well-trained people in an organization that has made it clear that Six

Sigma is a career accelerator. In our practice, we see companies viewing Six Sigma in two ways:

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as a set of powerful tools for improving processes and products and as an approach for

improving both the process- and people-related aspects of business performance. Six Sigma is

used as a hands-on approach to developing leadership and change management skills. The

companies that achieve the greatest benefits from Six Sigma leverage the linkages between

people, processes, customer, and culture. In its 2000 annual report, GE describes the changes

brought by Six Sigma this way: “Six Sigma has turned the Company’s focus from inside to

outside, changed the way we think and train our future leaders and moved us toward becoming a

truly customer-focused organization.

Root of Six Sigma

While Six Sigma was invented at Motorola in the late 1980s, Six Sigma has had antecedents over

the past 100 years. In this section we highlight some of the important developments,

methodologies, and lessons learned that Six Sigma integrates. As far back as 1776, in The

Wealth of Nations, Adam Smith identified the economies of scale made possible with

specialization in manufacturing. During the early years of the twentieth century, systems were

developed for disaggregating manufacturing work processes into subsystems and components

in the effort to increase efficiency. Modern organizations are still based on the specialization of

labor and the fragmentation of processes into simpler tasks. These principles are generally

thought of as starting with Frederick W. Taylor and the scientific theory of management. We’ll

start our look backward with Taylor.

Numerous concepts of SIX SIGMA

It is enlightening to compare how various companies—including leading proponents of Six

Sigma—define it for their employees and their customers.

First Thought:

“First, what it is not. It is not a secret society, a slogan, or a cliché. Six Sigma is a highly

disciplined process that helps us focus on developing and delivering near-perfect products and

services. Why ‘Sigma’? The word is a statistical term that measures how far a given process

deviates from perfection. The central idea behind Six Sigma is that if you can measure how

many ‘defects’ you have in a process, you can systematically figure out how to eliminate them

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and get as close to ‘zero defects’ as possible. Six Sigma has changed the DNA at GE—it is now

the way we work—in everything we do and in every product we design.”

Second Thought:

“Six Sigma is a structured and disciplined, data-driven process for improving business. TRW is

committed to the implementation of Six Sigma focusing on how we can dramatically improve

our competitiveness by increasing customer focus, enhancing employee involvement, instilling

positive change into our culture and ultimately creating bottom and top line growth. At the

highest level, Six Sigma is all about satisfying customer needs profitably. It is a highly

disciplined methodology that helps develop and effectively deliver near-perfect products and

services. It will help TRW in all of our operations, engineering, and manufacturing and staff

areas.”

AIMS OF SIX SIGMA

The primary objective of the Six Sigma methodology is the implementation of a measurement

based strategy, which focuses on process and sub-processes improvement through the application

of Six Sigma best practice such as DMAIC and DMADV. The Six Sigma DMAIC (Define,

Measure, Analyze, Improve, Control) method is applied for improving existing processes and

looking for incremental improvement. The Six Sigma DMADV (Define, Measure, Analyze,

Design, Verify) is applied for developing new processes or products at Six Sigma quality levels.

It can also be employed if a current process requires more than just incremental improvement.

According to the Six Sigma Academy, companies save approximately $230,000 per project by

applying Six Sigma concept. General Electric, for example, one of the most successful

companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the

first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied

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Signal blazed the Six Sigma trail. Since them, companies around the world have discovered the

far reaching benefits of Six Sigma.

The objective of Six Sigma revolves around its key concepts:-.

1. Critical to Quality: Attributes most important to the customer.

2. Defect: Failing to deliver what the customer wants.

3. Process Capability: What your process can deliver.

4. Variation: What the customer sees and feels.

5. Stable Operations: Ensuring consistent, predictable processes to improve what the

customer sees and feels.

6. Design for Six Sigma: Designing to meet customer needs and process capability.

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first on reducing process

variation and then on improving the process capability.

Myths about Six Sigma:

There are several myths and misunderstandings about Six Sigma. Few are given below:

1. Six Sigma is only concerned with reducing defects.

2. Six Sigma is a process for production or engineering.

3. Six Sigma cannot be applied to engineering activities.

4. Six Sigma uses difficult-to-understand statistics.

5. Six Sigma is just training.

There are seven specific responsibilities or "role areas" in the Six Sigma program. These are:

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Leadership:

A leadership team or council defines the goals and objectives in the Six Sigma process. Just as a

corporate leader sets a tone and course to achieve an objective, the Six Sigma council sets out the

goals to be met by the team. Here is the list of leadership Council Responsibilities,

1. Define the purpose the Six Sigma Program.

2. Explain how the result is going to benefit the customer.

3. Set a schedule for work and interim deadlines.

4. Develop a means for review and oversight.

5. Support team members and defend established positions.

Sponsor:

Six Sigma sponsor are high-level individuals who understand Six Sigma and are committed to its

success. The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma

project. Six Sigma will be lead by a full-time, high-level champion, such as an Executive Vice

President. Sponsors are owners of processes and systems who help initiate and coordinate Six

Sigma improvement activities in their areas of responsibilities.

Implementation leader:

The person responsible for supervising the Six Sigma team effort, who supports the leadership

council by ensuring that the work of the team is completed in the desired manner,.

Implementation leader ensuring success of the implementation plan and solving problems as they

arise, training as needed, and assisting sponsors in motivating the team.

Coach:

The Six Sigma expert or consultant who sets a schedule, defines results of a project, and who

mediates conflicts or deals with resistance to the program. Duties include working as go-between

for sponsor and leadership, scheduling the work of the team, identifying and defining desired

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results of the project, mediating disagreements, conflicts, and resistance to the program and

identifying success as it occurs.

Team leader:

The individual responsible for overseeing the work of the team and for acting as go-between

with the sponsor and the team members. Responsibilities include communication with the

sponsor in defining project goals and rationale, picking and assisting team members and other

resources, keeping the project on schedule, and keeping track of steps in the process as they are

completed.

Team member:

An employee who works on a Six Sigma project, given specific duties within a project, and

deadlines to meet in reaching specific project goals. The team members execute specific Six

Sigma assignments and work with other members of the team within a defined project schedule,

to reach specifically identified goals.

Process owner:

The individual who takes on responsibility for a process after a Six Sigma team has completed its

work.

Extended Definitions of Roles - Belt Colors

Many labels have evolved over the years that Six Sigma has been in use. The assignment of belt

colors to various roles is derived from the obvious source, martial arts. Based on experience and

expertise following roles have evolved.

NOTE: The belt names are one tool for defining levels of expertise and experience. They do not

change or replace the organizational roles in the Six Sigma process.

Black Belt:

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The person possessing this belt has achieved the highest skill level and is an experienced expert

in various techniques. As applied to the Six Sigma program, the individual designated as a Black

Belt will have completed a thorough internal training program and have experienced work on

several projects.The black belt holder is usually given the role of team leader, the person who is

responsible for execution and scheduling.

Master Black Belt:

A person who is available to consult with the team or its leadership but who is not a direct

member of the team itself. This may be the equivalent of the role played by the coach, or for

more technical and complex projects. The Master Black Belt is available to answer procedural

questions and to resolve the technical issues that come up.

Green Belt:

The Green Belt designation can also belong to the team leader or to a member of the team

working directly with the team leader. A Green belt is less experienced than the Black Belt but is

cast in a key role within the team.

What does Six Sigma do for you?

The starting point in gearing up for a Six Sigma is to verify that you are ready to embrace a

change that says "There is a better way to run your Organization".

There are number of essential questions and facts you will have to consider in making a

readiness assessment:

1. Is the strategic course clear for the company?

2. Is the business healthy enough to meet the expectations of analysts and investors?

3. Is there a strong theme or vision for the future of the organization that is well understood

and consistently communicated?

4. If the organization good at responding effectively and efficiently to new circumstances?

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5. Evaluating current overall business results.

6. Evaluating how effectively do we focus on and meet customers’ requirements ?

7. Evaluating how effectively are we operating?

8. How effective are your current improvement and change management systems ?

9. How well are your cross functional processes managed?

10. What other change efforts or activities might conflict with or support Six Sigma

initiative?

11. Six Sigma demands investments. If you cannot make a solid case for future or current

return then it may be better to stay away.

12. If you already have in place a strong, effective, performance and process improvement

offer then why do you need Six Sigma?

There could be many questions to be answered to have an extensive assessment before deciding

if you should go for Six Sigma or not. This may need time and a thorough consultation with Six

Sigma Experts to take a better decision.

The Cost of Six Sigma Implementation:

Some of the most important Six Sigma budget items can include the followings:

1. Direct Payroll for the individuals dedicated to the effort full time.

2. Indirect Payroll for the time devoted by executives, team members, process owners and

others involved in activities like data gathering and measurement.

3. Training and Consultation fee to teach people Six Sigma Skills and getting advice on how

to make effort successful.

4. Improvement Implementation Cost

Process Layout of Six Sigma

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Now you have decided to go for Six Sigma. So what's next?

Deploying a Six Sigma within an organization is a big step and involved many activities

including define, measure, analyze, improve, and control phases. These phases are discussed in

subsequent session. Here are some steps which are required for an organization at the time of

starting Six Sigma implementation.

1. Plan your own route: There may be many paths to Six Sigma but the best is the one that

works for your organization.

2. Define your objective: It’s important to decide what you want to achieve and priorities

are important

3. Stick to what is feasible: Set up your plans so that they can match your influences,

resources and scope.

4. Preparing Leaders: They are required to launch and guide the Six Sigma Effort.

5. Creating Six Sigma organizations: This includes preparing Black Belts and other roles

and assigning them their responsibilities.

6. Training the organization: Apart from having black belts it is required to have all

employees Six Sigma skilled.

7. Piloting Six Sigma Efforts: Piloting can be applied to any aspect of Six Sigma including

solutions derived from process improvement or design redesign projects.

Project Selection for Six Sigma:

One of the more difficult challenges in Six Sigma is the selection of the most appropriate

problems to attack. There are generally two ways to generate projects:

1. Top-down: approach is generally tied to business strategy and is aligned with customer

needs. The major weakness is they are too broad in scope to be completed in a timely

manner (most six sigma projects are expected to be completed in 3-6 months).

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2. Bottom-up: In this approach Black Belts choose the projects that are well-suited for the

capabilities of teams. A major drawback of this approach is that projects may not be tied

directly to strategic concerns of management thereby receiving little support and low

recognition from the top.

Key Elements of Six Sigma:

There are three key elements of Six Sigma Process Improvement.

1. Customers

2. Processes

3. Employee

The Customer:

Customers define quality. They expect performance, reliability, competitive prices, on-time

delivery, service, clear and correct transaction processing and more. Today, delighting a

customer is a necessity. Because if we don't do it, someone else will!

The Processes:

Defining Processes and defining Metrics and Measures for Processes is the key element of Six

Sigma. Quality requires looking at a business from the customer's perspective, In other words,

we must look at defined processes from the outside-in. By understanding the transaction lifecycle

from the customer's needs and processes, we can discover what they are seeing and feeling. This

will give a chance to identify week area within a process and then we can improve them.

The Employees:

The company must involve all employees in Six Sigma Program. Company must provide

opportunities and incentives for employees to focus their talents and ability to satisfy customers.

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This is important to six sigma that all team members should have a well defined role with

measurable objectives

Advantages of Six Sigma

Six Sigma is a popular process improvement methodology that started in the manufacturing

sector and has spread to other areas as well. Some companies have seen tremendous success,

while others have abandoned the methodology or found it too overwhelming to support.

Proven Success

Beginning with Motorola, many large companies have successfully rolled out Six Sigma

initiatives and driven positive change in their organizations. The results have benefited

customers, employees, and shareholders.

Sustainable Solutions

The DMAIC and DMADV processes are specifically designed for sustainable solutions. In

DMAIC, the improvements to a process are confirmed with data, and an entire phase is

devoted to ensuring that the gains are sustained. In DMADV, which is used for creating new

products and processes, a similar mindset holds.

Timeframe

As the saying goes, "Do you want it fast or do you want it right?" In order to effectively use

the Six Sigma methodology, a substantial amount of time must be allowed for a project. It

does not provide simple fixes, and at times the people involved can become frustrated with

the time required to systematically follow the improvement model.

Training Requirements

In traditional Six Sigma implementations, employees go through extensive training to

become Six Sigma project leaders (Black Belts and Green Belts) and sponsors (Champions

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and Process Owners). For the Black Belt role in particular, training can take several weeks or

more, and occur over a period of months. This is not feasible in some environments.

Corporate Focus

Although the principles underlying Six Sigma could certainly be made applicable to small

business and organizations, it is primarily an option for larger corporate organizations.

Overwhelmingly, the majority of training and information available is geared toward that

sector. This makes it difficult for other groups to see any benefit in adopting the

methodology.

Financial Advantages

Six Sigma reduces process-output variation, which increases process efficiency and reduces

operating costs. Six Sigma's focus on process improvement saves money by removing the

causes of defects, which increases the company's profit margin. Motorola says it has

"documented over $17 billion in savings" in over 20 years of using Six Sigma.

Quality Advantages

While focusing on removing all causes of defects, the Six Sigma approach improves the

overall quality of the final product sold. The fundamental goal of Six Sigma is to eliminate

the waste of resources, but customers also purchase products that work better and last longer.

Companies that successfully implement Six Sigma increase customer satisfaction and

retention by providing higher-quality consumer products without raising prices, because of

the cost-saving aspect of this quality-control strategy.

Employee Commitment

Implementing Six Sigma affects the organizational culture of a company and requires

employee buy-in from the entire organization. Six Sigma relies more heavily on this

commitment than most other methods; the complex statistical methods and implementation

process force many companies to hire outside Six Sigma experts, which can be costly but

immediately shows commitment from the organization's upper management. The lower-level

employees also need to buy into the strategy, because the Six Sigma experts will be working

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closely with them on a daily basis to better understand the process and possible sources of

defects.

Draw Backs of Six Sigma

Some of the limitations of Six Sigma as reported in literature are:-

1. Some projects take forever to complete due to analysis paralysis-there are so many tools

out there and collecting data and using all of these tools could be time-consuming.

2. It is perceived that once a trained resource is certified after completion of a project, they

become valuable and could leave the organization for better jobs, causing employee

retention issues for the company.

3. The challenge of having quality data available, especially in processes where no data is

available to begin with (sometimes this task could take the largest proportion of the

project time)

4. The right selection and prioritization of projects is one of the critical success factors of a

Six Sigma program. The prioritization of projects in many organizations is still based on

pure subjective judgments. Very few powerful tools are available for prioritizing projects

and this should be the major thrust for research in the future.

5. The statistical definition of Six Sigma is 3.4 defects or failures per million opportunities.

In service processes, a defect may be defined as anything which does not meet customer

needs or expectations. It would be illogical to assume that all defects are equally bad

when we calculate the Sigma Capability level of a process. For instance, a defect in a

hospital could be a wrong admission procedure, misdiagnosis, lack of training required

by a staff member, misbehavior of staff members, unwillingness to help patients when

they have specific queries, etc.

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6. Non-standardization procedures in the certification process of Black belts, Green belts,

etc. Research has shown that the skills and expertise developed by Black belts/Green

belts are inconsistent across companies and are dependent a great deal on the certification

body. Black belts believe they know all the practical aspects of advanced quality

improvement methods such as Design of Experiments, Robust Design, Response Surface

Methodology, Statistical Process Control and Reliability, when in fact they have barely

scratched the surface.

7. Six Sigma can easily digress into a bureaucratic exercise if the focus is on such things as

the number of trained Black Belts and Green Belts, number of projects completed, etc.

instead of bottom line savings.

8. There is an overselling of Six Sigma by too many consulting firms. Many of them claim

expertise in Six Sigma when they barely understand the tools and techniques and the Six

Sigma roadmap. Another limitation is the relationship between Cost of Poor Quality

(COPQ) and Process Sigma Quality Level requires more justification.

Research Methodology

1. DMAIC: refers to a data-driven quality strategy for improving processes. This

methodology is used to improve an existing business process.

2. DMADV: refers to a data-driven quality strategy for designing products & processes.

This methodology is used to create new product designs or process designs in such a way

that it results in a more predictable, mature and defect free performance.

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There is one more methodology called DFSS - Design for Six Sigma. DFSS is a data-driven

quality strategy for designing design or re-design a product or service from the ground up.

Sometimes a DMAIC project may turn into a DFSS project because the process in question

requires complete redesign to bring about the desired degree of improvement.

DMAIC Methodology:

This methodology consists of following five steps.

Define --> Measure --> Analyze --> Improve -->Control

1. Define: Define the Problem or Project Goals that needs to be addressed.

2. Measure: Measure the problem and process from which it was produced.

3. Analyze: Analyze data & process to determine root causes of defects and opportunities.

4. Improve: Improve the process by finding solutions to fix, diminish, and prevent future

problems.

5. Control: Implement, Control, and Sustain the improvements solutions to keep the

process on the new course.

DMADV Methodology:

This methodology consists of following five steps.

Define --> Measure --> Analyze --> Design -->Verify

Define: Define the Problem or Project Goals that needs to be addressed.

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Measure: Measure and determine customers needs and specifications.

Analyze: Analyze the process for meet the customer needs.

Design: Design a process that will meet customers needs.

Verify: Verify the design performance and ability to meet customer needs.

DFSS Methodology:

DFSS - Design for Six Sigma is a separate and emerging discipline related to Six Sigma quality

processes. This is a systematic methodology utilizing tools, training and measurements to enable

us to design products and processes that meet customer expectations and can be produced at Six

Sigma Quality levels. This methodology can have following five steps.

Define --> Identify --> Design --> Optimize -->Verify

Define: Identify the Customer and project.

Identify: Define what the customers want, or what they do not want.

Design: Design a process that will meet customers’ needs.

Optimize: Determine process capability & optimize design.

Verify: Test, verify, & validate design.

Below is an article about applying Six Sigma methodology in marketing industry

CRM Marketing Model Six Sigma Best Practices

"Find/More - Win/More - Keep/More"

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We know that everything in business is a process, which means a series of documented activities

organized to achieve a specific business objective. e-Marketing campaigns, for example, is a

business process. A best practice is a proven methodology to successfully achieve a business

objective. Six Sigma, for example, is a best practice to turn your business process into a model of

excellence.

In marketing, you should pick yourself up, dust yourself off, and refine your business process to

implement tools that would enhance your strategy to impact the bottom line of your industry.

When to use or apply your marketing business model?

1. When a product or process is not in existence at your company and one needs to be

developed.

2. When a process exists but has not been optimized to meet the level of customer

satisfaction.

3. When an existing product is not performing and does not meet customer’s requirements.

How to describe your marketing business model?

1. Find More: Define the market, identify profitable opportunities, and determine target

segments.

2. Win More: Build awareness, create the product, cover the market, and beat the

competition.

3. Keep More: Serve and support, capture full value, and expand the customer relationship.

Then, the "Find/More - Win/More - Keep/More" marketing model - one among others - is likely

a framework, within which the business identifies points of leverage and focuses investments to

increase ROI and profitability. So, acquisition cost trend, sources of growth, business unit

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growth versus market growth, sales and market value chain are areas where you should identify

points of leverage.

The determination of whether customer sharing is low or high can be simple or difficult, but in

most cases, you must probe deeply to really understand the customer purchasing issue. Then,

while "Win/More" optimizes the marketing campaign to capture the best opportunities

discovered on the "Find/More" market, "Keep/More" implements an action plan to optimize

customer relationship management.

Being a customer intimate company that provides innovative products and services to increase its

revenues is a whole process (*). Although occasionally a project is scoped for incremental

process(es) improvement, strategic marketing initiatives include more focus on what we call

"productive solutions" like CRM or e-commerce tools that marry hardware and software

equipment to fit specific market needs

(*) CRM Marketing Model Six sigma Best Practice, by Franck Ardourel, Consultant Six Sigma

MARKETING MODEL SIX SIGMA BEST PRACTICE

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A business process is a series of activities to achieve a specific business objective.

A best practice is a proven methodology to effectively achieve a business objective

Six Sigma Defect Metrics

Two important terms needs to be introduced before going in detail metrics are :-

1. Six Sigma defect: It is defined as anything outside of customer specifications.

2. Six Sigma opportunity: It is the total quantity of chances for a defect.

Here are various formulae to measure different metrics related to Six Sigma Defects

Defects per Unit – DPU

Total Number of Defects

DPU = ------------------------

Total number of Product Units

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The probability of getting 'r' defects in a sample having a given dpu rate can be predicted with

the Poisson Distribution.

Total Opportunities – TO

TO = Total number of Product Units x Opportunities

Defects Per Opportunity – DPO

Total Number of Defects

DPO = ------------------------

Total Opportunity

Defects Per Million Opportunities – DPMO

DPMO = DPO x 1,000,000

Defects Per Million Opportunities or DPMO can be then converted to sigma values using Yield

to Sigma Conversion Table.

According to the conversion table

6 Sigma = 3.4 DPMO

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How to find your Sigma Level

1. Clearly define the customer's explicit requirements.

2. Count the number of defects that occur.

3. Determine the yield-- percentage of items without defects.

4. Use the conversion chart to determine DPMO and Sigma Level.

Simplified Sigma Conversion Table

If your yield is: Your DPMO is: Your Sigma is:

30.9% 690,000 1.0

62.9% 308,000 2.0

93.3 66,800 3.0

99.4 6,210 4.0

99.98 320 5.0

99.9997 3.4 6.0

We can summaries following points:

1. Six Sigma is a philosophy of quality improvement

2. Six sigma is 3.4 defects in one million opportunities (DPMO).

3. Components of Six Sigma are Customer, process and Employees.

4. Six Sigma implementation requires following roles:

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o Business Leader

o Sponsor

o Black Belt

o Master Black Belt

o Green Belt

5. Six Sigma generic cycles includes Define, Measure, Analyze, Improve, and Control

Phases.

6. Six Sigma is Customer focus and deals into organizational improvement as a whole.

Theoretical perspectives of Six Sigma

1. Define Phase

2. Measure Phase

3. Analyze Phase

4. Improve Phase

5. Control Phase

1. Define Phase

There are five high-level steps in the application of Six Sigma to improve the quality of output.

The first step is Define. During define phase following four major tasks are undertaken.

(1) Project team is formed:

Perform two activities:

1. Determine who needs to be on the team.

2. What roles each person will perform

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Picking the right team members can be a difficult decision, especially if a project involves a

large number of departments. In such projects, it could be wise to break them down into smaller

pieces and work toward completion of a series of phased projects

(2) Document customers Core Business Processes:

Every project has customers. A customer is the recipient of the product or service of the process

targeted for improvement. Every customer has one or multiple needs from his or her supplier.

For each need provided for, there are requirements for the need. The requirements are the

characteristics of the need that determine whether the customer is happy with the product or

service provided. So document customer needs and related requirements. A set of business

processes is documented. These processes will be executed to meet customer's requirements and

to resolve their Critical to Quality issues.

(3) Develop a project charter:

This is a document that names the project, summarizes the project by explaining the business

case in a brief statement, and lists the project scope and goals. A project charter can have

following components

1. Project Name

2. Business Case

3. Project Scope

4. Project Goals

5. Milestones

6. Special Requirements

7. Special Assumptions

8. Roles and responsibilities of the project team

(4) Develop the SIPOC process map:

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A process is defined as the series of steps and activities that take inputs, add value, and produce

an output.SIPOC is a process map that identifies all the following elements of a project:

1. Suppliers

2. Input

3. Process

4. Output

5. Customers

The SIPOC process map is essential for identifying the way processes occur currently and how

those processes should be modified and improved throughout the remaining phases of DMAIC

Conclusion:

At the conclusion of the design phase, you should know who the customer or end user is, their

resistance issues, and requirements. You should also have a clear understanding of goals and the

scope of the project including budget, time constraints, and deadlines.

2. Measure Phase

During Measure Phase the overall performance of the Core Business Process is measured. There

are three important part of Measure Phase.

(1) Data Collection Plan and Data Collection

A data collection plan is prepared to collect required data. This plan includes what type of data

needs to be collected, what are the sources of data etc., The reason to collect data is to identify

areas where current processes need to be improved. You collect data from three primary sources:

input, process, and output.

1. The input source is where the process is generated.

2. Process data refers to tests of efficiency: the time requirements, cost, value, defects or

errors, and labor spent on the process.

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3. Output is a measurement of efficiency.

(2) Data evaluation:

At this stage, collected data is evaluated and sigma is calculated. This gives approximate number

of defects. A Six Sigma defect is defined as anything outside of customer specifications. A Six

Sigma opportunity is the total quantity of chances for a defect.

First we calculate Defects Per Million Opportunities (DPMO) and based on that a Sigma is

decided from a predefined table:

Number of defects

DPMO = ------------------------------------------- x 1,000,000

Number of Units x Number of opportunities

As stated above, here Number for defects is total number of defects found, Number of Units is

the number of units produced and number of opportunities means the number of ways to

generate defects. For example: The food ordering delivery project team examines 50 deliveries

and finds out the following:

1. Delivery is not on time (13)

2. Ordered food is not according to the order (3)

3. Food is not fresh (0)

So now DPMO will be as follows:

13 + 3

DPMO = ----------- x 1,000,000 = 106,666.7

50 x 3

According to the Yield to Sigma Conversion Table given below 106,666.7 defects per million

opportunities is equivalent to a sigma performance of between 2.7 and 2.8.

This is the method used for measuring results as we proceed through a project. This beginning

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point enables us to locate the cause and effect of those processes and to seek defect point so that

the procedure can be improved.

(3) Failure Mode and Effects Analysis - FMEA:

The final segment of the measure phase is called FMEA. This refers to preventing defects before

they occur. The FMEA process usually includes rating possible defects, or failures, in three

ways:

1. The likelihood that something will go wrong.

2. The ability to detect a defect.

3. The level of severity of the defect.

You may use a rating scale. For example, rate each of these three areas from 1 to 10, with 1

being the lowest FMEA level and 10 being the highest. The higher the level, the more severe the

rating. So a high FMEA would indicate the need to devise and implement improved measuring

steps within the overall process. This would have the effect of preventing defects. Clearly, there

is no need to spend a lot of time on this procedure if the likelihood of a defect is low

Yield to Sigma Conversion Table

Yield % Sigma Defects Per Million Opportunities

99.9997 6.00 3.4

99.9995 5.92 5

99.9992 5.81 8

99.9990 5.76 10

99.9980 5.61 20

99.9970 5.51 30

30

99.9960 5.44 40

99.9930 5.31 70

99.9900 5.22 100

99.9850 5.12 150

99.9770 5.00 230

99.9670 4.91 330

99.9520 4.80 480

99.9320 4.70 680

99.9040 4.60 960

99.8650 4.50 1350

99.8140 4.40 1860

99.7450 4.30 2550

99.6540 4.20 3460

99.5340 4.10 4660

99.3790 4.00 6210

99.1810 3.90 8190

98.9300 3.80 10700

98.6100 3.70 13900

98.2200 3.60 17800

97.7300 3.50 22700

97.1300 3.40 28700

96.4100 3.30 35900

95.5400 3.20 44600

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94.5200 3.10 54800

93.3200 3.00 66800

91.9200 2.90 80800

90.3200 2.80 96800

88.5000 2.70 115000

86.5000 2.60 135000

84.2000 2.50 158000

81.6000 2.40 184000

78.8000 2.30 212000

75.8000 2.20 242000

72.6000 2.10 274000

69.2000 2.00 308000

65.6000 1.90 344000

61.8000 1.80 382000

58.0000 1.70 420000

54.0000 1.60 460000

50.0000 1.50 500000

46.0000 1.40 540000

43.0000 1.32 570000

39.0000 1.22 610000

35.0000 1.11 650000

31.0000 1.00 690000

28.0000 0.92 720000

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25.0000 0.83 750000

22.0000 0.73 780000

19.0000 0.62 810000

16.0000 0.51 840000

14.0000 0.42 860000

12.0000 0.33 880000

10.0000 0.22 900000

8.0000 0.09 920000

3. Analyze Phase

Six Sigma aims to define the causes of defects, measure those defects, and analyze them so that

they can be reduced. We will consider five specific types of analysis that will help to promote the

goals of the project. These are source, process, data, resource, and communication analysis. Now

we will see them in detail:

(1) Source Analysis:

This is also called root cause analysis and attempts to find defects that are derived from the

sources of information or work generation. After finding the root cause of the problem, attempts

are made to resolve the problem before we expect to eliminate defects from the product.

THE THREE STEPS TO ROOT CAUSE ANALYSIS

1. The open step: During this phase of root cause analysis, the project team brainstorms all

the possible explanations for current sigma performance.

2. The narrow step: During this phase, the project team narrows the list of possible

explanations for current sigma performance.

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3. The close step: During this phase, the project team validates the narrowed list of

explanations that explain sigma performance.

(2) Process Analysis:

Analyze the numbers to find out how well or poorly the processes are working, compared to

what's possible and what the competition is doing. Process analysis includes creating a more

detailed process map and analyzing the more detailed map for where the greatest inefficiencies

exist. The source analysis is often difficult to distinguish from process analysis. The process

refers to the precise movement of materials, information, or requests from one place to another.

(3) Data Analysis:

Use of measures and data (those already collected or new data gathered in the analyze phase) to

discern patterns, tendencies or other factors about the problem that either suggest or

prove/disprove possible cause of the problem. The data itself may have defect. There may be a

case when product or deliverable does not provide all the needed information. So data is

analyzed to find out the defects and attempts are made to resolve the problem before we expect

to eliminate defects from the product.

(4) Resource Analysis:

We also need to ensure that employees are properly trained in all departments that affect the

process. If training is inadequate, you want to identify that as a cause of defects.

Other resources include raw materials needed to manufacture, process, and deliver the goods. For

example if the Accounting Department is not paying vendor bills on time and, consequently, the

vendor holds up a shipment of shipping supplies, this becomes a resource problem.

(5) Communication analysis:

One problem common to most processes high in defects, is poor communication. The classic

interaction between a customer and a retail store is worthy of study because many of the

common communication problems are apparent in this case. The same types of problems occur

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with the internal customer as well, even though we may not recognize the sequence of events as

a customer service problem.

The exercise of looking at issues from both points of view is instructive. A vendor wants

payment according to agreed-upon terms, but the Accounting Department wants to make its

batch processing uniform and efficient. The disconnect between these type of groups

demonstrates the importance of communication analysis.

Conclusion:

Analysis can take several forms. Some Six Sigma programs like to use a lot of diagrams and

worksheets, and others prefer discussion and list making. There are many tools which can be

used to perform analysis like Box Plot, Cause and Effect Diagram, Progressive Analysis,

Ranking, Pareto Analysis, Prioritization Matrix, Value Analysis etc. The proper procedure is the

one that works best for your team, provided that the end result is successful.

4. Improve Phase

If the project team does a thorough job in the root causation phase of Analysis, the Improve

phase of DMAIC can be quick, easy, and satisfying work. The objective of Improve Phase is to

identify improvement breakthroughs, identify high gain alternatives, select preferred approach,

design the future state, determine the new Sigma level, perform cost/benefit analysis, design

dashboards/ scorecards, and create a preliminary implementation plan.

1. Identify Improvement Breakthroughs:

o Apply idea-generating tools and techniques to identify potential solutions that

eliminate root causes.

2. Identify/Select High Gain Alternatives:

o Develop criteria to evaluate candidate improvement solutions.

o Think systematically and holistically.

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o Prioritize and evaluate the candidate solutions against the solution evaluation

criteria.

o Conduct a feasibility assessment for the highest value solutions.

o Develop preliminary solution timelines and cost-benefit analysis to aid in

recommendation presentation and future implementation planning.

Improvement can involve a simple fix once we discover the causes of defects. However, in some

cases, we may need to employ additional tools as well which include Solution alternatives,

Experiments with solution alternatives and Planning for future change

5. Control Phase

The last phase of DMAIC is control, which is the phase in which we ensure that the processes

continue to work well, produce desired output results, and maintain quality levels. You will be

concerned with four specific aspects of control, which are:

(1) Quality control:

The ultimate purpose in control is overall assurance that a high standard of quality is met. The

customer's expectations depend on this, so control is inherently associated with quality. Since the

purpose to Six Sigma is to improve overall process by reducing defects, quality control is the

essential method for keeping the whole process on track; for enabling us to spot trouble and fix

it; and for judging how effectively the project was executed and implemented.

Quality is at the heart of the Six Sigma philosophy. Reducing defects has everything to do with

striving for perfection. Whether we reach perfection or not, the effort defines our attitude toward

quality itself.

(2) Standardization:

One feature of smooth processing is to enable processes to go as smoothly as possible. This

usually means standardization. In a manufacturing environment, the value of standardization has

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been proven over and over. We need to devise a control feature to processes so that the majority

of work is managed in a standardized manner.

(3) Control methods and alternatives:

The development of a new process of any change to an existing process requires the

development of procedures to control work flow. When a process cannot be managed in the

normal manner, we need to come up with alternatives short of forcing compliance to the

standardized method.

(4) Responding when defects occur:

The final step in a control process knows how to respond once a defect is discovered. The weak

links in the procedure, where defects are most likely to occur, can and should be monitored

carefully so that defects can be spotted and fixed before the process continues.

The response to a defect may be to prevent a discovered flaw from becoming a defect at all. In

the best designed systems, defects can be reduced to near zero, so that we may actually believe

that Six Sigma can be attained.

Conclusion:

The project team determines how to technically control the newly improved process and creates

a response plan to ensure the new process maintains the improved sigma performance.

TECHINALS TOOLS USED IS SIX SIGMA

This section will give an overview of the 10 most important technical tools which a Six Sigma

team member needs to master as they progress through the DMAIC methodology. While these

tools are considered technical in nature, most of them are relatively easy to learn and apply. They

are covered in the order they are used in the DMAIC methodology.

Tool #1 The Critical to Quality (CTQ) Tree:

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The critical to quality tree is used during the Design Phase of DMAIC. It is used to brainstorm

and validate the needs and requirements of the customer of the process targeted for

improvement. The steps in creating a CTQ tree are as follows:

1. Identify the customer of the process targeted for improvement.

2. Identify the need of the customer.

3. Identify the first level of requirements of the need, that is, some characteristic of the need

that determines whether the customer is happy with the need.

4. Drill down to more detailed level(s) of the requirement if necessary.

To put it in layman's terms, CTQs are what the customer expects of a product... the spoken needs

of the customer. The customer may often express this in plain English, but it is up to the CTQ

expert to convert them to measurable terms using tools such as DFMEA, etc.

Tool #2 The Process Map:

During the Define phase, the project team creates the first of several process maps. A process

map is a picture of the current steps in the process targeted for improvement.

A process map has five major categories of work from the identification of the suppliers of the

process, the inputs the suppliers provide, the name of the process, the output of the process, and

the customers of the process. Each of these steps is summarized as SIPOC to indicate to the team

the steps that must be conducted to complete a process map.

Tool #3 The Histogram:

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This tool will be used during the Analysis stage of DMAIC. The project team will review data

collected during the Measure stage of DMAIC.It is often suggested that the data be organized

into graphs or charts to more easily understand what the data is saying about the process.

Data is of two types - Discrete data ( go/no go, fail or pass ) and continuous data ( time, hight

etc.). For continuous data presentation, the best tool to use is the histogram.

Tool #4 The Pareto Chart:

Histogram is useful for continuous data same way when the data is discrete, most teams create a

Pareto chart. Discrete data is counted data - go/no-go, off/on, yes/no, and defect/no defect type

data. An Italian economist Vilfredo Pareto, in the sixteenth century proved mathematically that

80 percent of the world's wealth was controlled by 20 percent of the population. This 80-20 rule

eventually proved applicable in arenas other than economics. When dealing with discrete data,

the project team should create reason codes for why a defect occurs and count and categorize the

data into these reason codes and a pareto chart should be prepared.

Sample Pareto Chart Depiction

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A pareto chart is used to graphically summarize and display the relative importance of the

differences between groups of data. Learn when it's appropriate to use a pareto chart, histogram

and bar chart, and what the differences are.

Purpose of A Pareto Chart

A pareto chart is used to graphically summarize and display the relative importance of the

differences between groups of data.

Tool #5 The Process Summary Worksheet:

The goal of a Six Sigma project team is to improve effectiveness and efficiency. Efficiency is

measured in terms of cost, time, labor, or value. The process summary worksheet is a "roll-up" of

the sub process map indicating which steps add value in the process and which steps don't add

value.

Tool #6 The Cause-Effect Diagram:

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The most important tool to assist the project team in determining root causation is the cause-

effect diagram. This tool captures all the ideas of the project team relative to what they feel are

the root causes behind the current sigma performance and finally help in finding a root cause of

the problem.

Ishikawa diagrams (also called fishbone diagrams or cause-and-effect diagrams) are diagrams

that show the causes of a certain event. Common uses of the Ishikawa diagram are product

design and quality defect prevention, to identify potential factors causing an overall effect. Each

cause or reason for imperfection is a source of variation. Causes are usually grouped into major

categories to identify these sources of variation. The categories typically include:

People: Anyone involved with the process

Methods: How the process is performed and the specific requirements for doing it, such

as policies, procedures, rules, regulations and laws

Machines: Any equipment, computers, tools etc. required to accomplish the job

Materials: Raw materials, parts, pens, paper, etc. used to produce the final product

Measurements: Data generated from the process that are used to evaluate its quality

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Environment: The conditions, such as location, time, temperature, and culture in which

the process operates

Tool #7 The Scatter Diagram:

Once ideas have been prioritized after use of the cause-effect diagram, the most important thing

the project team does is validate the remaining ideas with fact and data.

The scatter diagram takes an idea about root causation and tracks corresponding data in the

response the team is trying to improve. The team can validate an idea about root causation

through one of three methods. Using basic data collection, a designed experiment, or through the

scatter diagram.

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In General, scatter plot or scatter graph is a type of mathematical diagram using Cartesian

coordinates to display values for two variables for a set of data. The data is displayed as a

collection of points, each having the value of one variable determining the position on the

horizontal axis and the value of the other variable determining the position on the vertical axis.

This kind of plot is also called a scatter chart, scatter diagram and scatter graph.

Tool #8 The Affinity Diagram:

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An affinity diagram is used to help sort and categorize a large number of ideas into major themes

or categories. It is especially useful when the team is ready to brainstorm solutions in the

Improve stage of DMAIC.

The steps in creating an affinity diagram are:

1. Have each team member write one idea per Post-it note and post on a wall randomly.

2. As ideas are read off for clarification, sort ideas into similar groups

3. Create a 'header' card for each general category of ideas below it.

Tool #9 The Run Chart:

We have discussed the histogram and Pareto chart. Think of both of these tools as similar to a

camera where a snapshot of the process has been taken. But the run chart is similar to a

camcorder, recording some process element over time.

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A run chart, also known as a run-sequence plot is a graph that displays observed data in a time

sequence. Often, the data displayed represent some aspect of the output or performance of a

manufacturing or other business process.

Run sequence plots are an easy way to graphically summarize an univariate data set. A common

assumption of univariate data sets is that they behave like:

random drawings;

from a fixed distribution;

with a common location; and

with a common scale.

With run sequence plots, shifts in location and scale are typically quite evident. Also, outliers can

easily be detected. Examples could include measurements of the fill level of bottles filled at a

bottling plant or the water temperature of a dishwashing machine each time it is run. Time is

generally represented on the horizontal (x) axis and the property under observation on the

vertical (y) axis. Often, some measure of central tendency (mean or median) of the data is

indicated by a horizontal reference line.

Run charts are analyzed to find anomalies in data that suggest shifts in a process over time or

special factors that may be influencing the variability of a process. Typical factors considered

include unusually long "runs" of data points above or below the average line, the total number of

such runs in the data set, and unusually long series of consecutive increases or decreases.

Run charts are similar in some regards to the control charts used in statistical process control, but

do not show the control limits of the process. They are therefore simpler to produce, but do not

allow for the full range of analytic techniques supported by control charts.

Tool #10 The Control Chart:

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Similar to a run chart, a control chart uses the data from a run chart to determine the upper and

lower control limits. Control limits are the expected limits of variation above and below the

average of the data. These limits are mathematically calculated and indicated by dotted lines.

If analysis of the control chart indicates that the process is currently under control (i.e. is stable,

with variation only coming from sources common to the process) then data from the process can

be used to predict the future performance of the process. If the chart indicates that the process

being monitored is not in control, analysis of the chart can help determine the sources of

variation, which can then be eliminated to bring the process back into control. A control chart is

a specific kind of run chart that allows significant change to be differentiated from the natural

variability of the process.

The control chart can be seen as part of an objective and disciplined approach that enables

correct decisions regarding control of the process, including whether or not to change process

control parameters. Process parameters should never be adjusted for a process that is in control,

as this will result in degraded process performance.

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A control chart consists of:

Points representing a statistic (e.g., a mean, range, proportion) of measurements of a

quality characteristic in samples taken from the process at different times [the data]

The mean of this statistic using all the samples is calculated (e.g., the mean of the means,

mean of the ranges, mean of the proportions)

A center line is drawn at the value of the mean of the statistic

The standard error (e.g., standard deviation/sqrt(n) for the mean) of the statistic is also

calculated using all the samples

Upper and lower control limits (sometimes called "natural process limits") that indicate

the threshold at which the process output is considered statistically 'unlikely' are drawn

typically at 3 standard errors from the center line

The chart may have other optional features, including:

Upper and lower warning limits, drawn as separate lines, typically two standard errors

above and below the center line

Division into zones, with the addition of rules governing frequencies of observations in

each zone

Annotation with events of interest, as determined by the Quality Engineer in charge of

the process's quality

Analysis & FindingsBackground

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Here is the detailed analysis of Tata Consultancy Services (TCS), a division of Tata Sons

Limited, is the largest software information technology and management consultancy

organization in South Asia, with professional staff strength of over 100,000 and annual revenue

of US$ 6.3 billion in fiscal year 2008-09.

TCS has a long history of initiatives in quality and process management. Quality Control

procedures were introduced in the mid 70s. Structured Systems Analysis and Design was

introduced in 1982. The quality assurance group was set up in the early 80s to coordinate the

development of guidelines for lifecycle activities and review procedures for milestone reviews.

TCS also set up a Software Engineering Group, which developed products such as Standards

Auditors, Test Coverage Analyzers, and Repository based CASE tools. The Tata Research,

Development and Design Center (TRDDC), the Research and Development arm of TCS, was

involved in the development of language translators and program generators. In 1992, TCS

decided to adopt the ISO 9000 as a quality norm. TCS received ISO-9000 certification for two

centers in January 1994, and across 95% of the company by 1995. In 1996, TCS decided to adopt

the Software Engineering Institute's (SEI) Capability Maturity Model (CMM) [CMM93] in order

to promote metrics-driven management. TCS, Seepz was the first center assessed to be in level 4

in July 1998 and subsequently US-WEST center, Chennai reached level 5 in April 1999, HP

Center, Chennai reached level 5 in July 1999 and Sholinganallur Center, Chennai achieved level

5 in November 1999.

Product Engineering Practice:

Product Engineering Practice at TCS architects and delivers end-to-end solutions that help the

industry in Product Design and Development using state-of-the-art technologies. The Practice

has more than 1500 consultants and over 6000 person-years of experience, with high-end

consulting expertise in Automotive, Aerospace, Heavy engineering, Marine engineering and

Transportation domains.

Why Six Sigma adopted in TCS?

Six-Sigma offers a wealth of tangible benefits. When skillfully applied, it:

1. Reduces costs by 50% or more, through a self-funded approach to improvement.

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2. Reduces the waste chain.

3. Affords a better understanding of customer requirements.

4. Improves delivery and quality performance.

5. Provides critical process inputs needed to respond to changing customer requirements.

6. Develops robust products and processes.

7. Drives improvements rapidly with internal resources.

Six Sigma approach identifies and eliminates defects with a structured, data-driven, problem-

solving method of using rigorous data-gathering and statistical analysis. The cost of poor quality

represents 20 to 30% of the total revenue. The Six Sigma approach implements proven

methodologies for eliminating these costs and reaching world-class quality levels by focusing on

breakthrough performances. Six-Sigma differs from traditional performance improvement

programs by focusing on input variables. While traditional methods depend on measuring

outputs and establishing control plans to shield customers from organizational defects, a Six

Sigma program demands that problems be addressed at the root level, eliminating the need for

unnecessary inspection and rework processes.

Strengths

1. Over 350 experienced Six Sigma consultants

2. 260 Certified Green Belts, 12 Black Belts and a Master Black Belt

3. 400 Six Sigma projects completed.

4. Quality Standards

a. Six-Sigma

b. SEI-CMM

c. ISO 9000

d. Tata Business Excellence Model (Based on Malcolm Baldridge-Award)

5. Specialized training programs

6. Domain experts

Service Offerings

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1. Six Sigma for Organizational Business Process Improvement

2. Six Sigma for Product Quality Improvement

3. Six Sigma Consultancy for Services

a. Engineering Services

b. Architecture & Technology Consulting

c. E-Security

d. E-Business

e. Infrastructure Development and Management

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Client List of TCS for Six-Sigma Consulting:

Avio

B/E Aerospace

Boeing

Cascade Corporation

Danaher Corporation

Delphi Automotive

Dunlop Aerospace Ltd.

Eaton Corporation

Federal Mogul

FMC Energy Systems

Ford Motor Company

General Electric

General Motors

Ingersoll Rand

Johnson Controls Inc.

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MAN B&W

Motorola

NACCO Industries

Navistar International

Pratt & Whitney

UGS

VA Tech

Xerox

Zimmer

Six Sigma Success Stories

TCS’ clients have realized exceptional savings and productivity improvement from the Six-

Sigma implementation.

1. A Fortune 100 Health Care Equipment company employed TCS’ Six Sigma consulting to

improve their business process across different business units, which resulted in more

than US $ 1 million savings.

2. TCS Six Sigma consulting team executed business process improvement using Six Sigma

methodology for a leading credit card company to enhance customer satisfaction and ROI

of more than 225%.

TCS OEDC, Chennai background

Offshore Engineering Development Center (OEDC), Chennai has over 300 professionals and

provides engineering services to various businesses of General Electric Company, US, both

offshore and on-site. It provides cost effective, timely and quality services in the areas of

Engineering Design, Computer Aided Engineering, Manufacturing, Product Data Management,

Finite Element Analysis and Customization projects.

These services are provided to various Businesses of GE, both from On-site and offshore,

utilizing the Hardware and Software resources of GE and TCS, Chennai.

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Organization Structure

OEDC has different project teams catering to the needs of different GE businesses. The Project

Leaders of different teams report to the Center Manager. An independent Quality Group assures

the quality of all deliverables of the OEDC.

Approach

The goal of the center is to ensure Six Sigma Quality in all the projects carried out at the center.

The top management of the center has taken commitment from every employee to reach this

lofty goal and involves all the employees in Six Sigma projects and metrics either individually or

as a member of a Six-Sigma Team. All the employees are given training on Six Sigma Quality to

increase the awareness and understanding of, and day-to-day use of, Six Sigma tools and

processes and how these tools and processes can be applied to real projects.

The Project Leaders of the center have undergone Black Belt/Green Belt training for Six Sigma

organized by GE.

Deployment Methodology

The Center Manager is the Champion who facilitates the implementation / deployment of Six

Sigma philosophy. The Champion creates the vision, defines the path to Six Sigma Quality,

measures the progress and sustains the improvements.

The Project Leaders of the center cultivate a Six Sigma network, provide training on strategies

and tools, give one-to-one support on utilization and dissemination of Six Sigma tools, supervise

the Six Sigma projects, facilitate best practices sharing, surface and scope project opportunities,

and actively involved in change process.

The Project Leaders also lead process improvement teams, demonstrate credible application of

Six Sigma tools, train their team members and are accountable for project results.

All the team members have to successfully complete a Six Sigma project, and demonstrate

strong interest in making breakthrough improvements.All the six sigma projects are linked to the

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Champion and a team of Process Owners has been identified to lead the quality initiatives of the

center.

The Team members undergo Define-Measure-Analyze-Improve-Control (DMAIC) or Design for

Six Sigma (DFSS) training depending on their roles in the project.

Six Sigma Examples:

Four Six Sigma Projects were carried out on the improvement of schedule compliance and

product quality compliance in 1998 – 1999. The projects had four phases – Measure, Analyze,

Improve and Control. Team members from all levels namely Center Manager, Project Leaders,

Quality Team and all team members participated. These projects were taken up for two GE

business teams and six sigma principles were implemented in all projects carried out by these

two teams.

Measurement Phase in TCS

The Measurement phase started with process mapping at the process level and at the sub-process

level to reduce variability, time and cost (Fig.1).

All the key process input and output variables at every step were identified. All value-added and

non-value-added process steps, controllable, critical and noise inputs were identified. The

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objective of this exercise was to eliminate non-value-added process steps, bottlenecks and re-

work loops. All the team members were involved in the preparation of the process map and the

policies, procedures and specifications of the center were inputs to mapping.

The input process variables, which affect the Critical to Quality (CTQ) Characteristics of the

projects namely Schedule Compliance and Quality Compliance, were identified (Fig.2 and 3).

All relevant process data were collected for all projects carried out by the two teams and to

facilitate data collection and retrieval an automated project tracking tool was used.

Analyze Phase in TCS

Process performance was assessed using Cause and Effect diagrams to isolate key problem areas,

to study the variance from ideal performance and to identify if there is a relationship between

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Fig 2: Process Variables: Schedule ComplianceEstimates

Realistic estimates Input Study

Project Management

Effective project tracking and Monitoring Fixing up priorities Resources management Input Quality

Fig 3: Process Variables: Product QualityKnowledge

Product Standards

Input Quality Clarity Conformance to Standards Estimates

Estimated time Tight schedules

C & E - Mechanical - Schedule Compliance

Components variationsin frames

Initiator specific requirement

H/W problems(network, m/c, links)

Delayed response toclarif/int.del.feedback

Power failure

Use of incompletePDM filesChange

of scope

Estimation Execution(Model)

Insufficient timefor dwg. Studybefore execution

Communicationbetween team members

Errors during execution

Improper assumptionduring execution

UG limitationsVersion problems

New team membersfor specific components

UG H/w Bugs

Attempting to maintainsimto values

D.N. & clarifs. not given to EQA

Dimension(conflicting, insuffi-cient redundant, ambiguous)

Delivery

PDM structure

File /directorypermission

Unawareness of del. Format del. procedure

Power failure

V C interruption

Unforeseen eventsfrom PDM, execution

Scope change during delivery

Forms filing & auth.procedures

Absentism of teammembers

Delayed responseto dwg requests

Ambiguousinputs

Link problems(PE, drop box)

Insufficient supportfacilities(H/W, paper)

PDM files not asper dwgs/stds

Poor quality ofinputs

Commn, of scope

Inadequate studyby execution/QA

Inadequate inputs

Non-availabilityof DPA(scope)

M/cs with insufficient features (*based)

Frequent changes in GEDatabase(COPICS,PDM,revisions in dwgs)

Data storage retrieval

Insufficient m/cs

Non uniformityin h/w features(keyboard, mouses)

Insufficient disk space

Compatibility betweenmachines(OS)

Change in shift

New team members

Non uniformityof skills acrossmanpower

Frequent shiftingof manpower across pkgs

H/w limitationNon uniform workload by GE

Priorities(undefined,change)

Manpower absenteeism

Input Study Scheduling & res- ource allocation Execution drafting

Q A

Infrastructure(space h/w)

Decision onsplitting of sheet

Drafting updationdue to change in GE Data base

UG limitations(splitting, views,blends)

Compatibility between Simto & model

Error on model at drafting stage

Skill levelbet. team members

Non availabilityof GRIPS

Non availability of tool on all m/cs

Initiator specific stds.

Ambiguitiesin simtos

Peripheralproblems(plotterprinter, paper)

Aware-ness to stds

DN, clarif.overlooked

Too many QA ChecksMore than

one simtos RepeatedQA

Defectloggingnot clear

Commn. betEQA duringexecution

Involvement of EQA& Execution team

Study ofinputsby QA

Awareness of Stds

Shortage of QAmanpower

inconsistencyacross QA teammembers

Error duringdrafting Chklists

updation initiator specific

Schedule slippage

Link

Fig. 4 Cause and Effect Diagram

variables. Extensive brain storming sessions were held with team members to draw these

diagrams. Fig.4 shows the cause and effect diagrams for one of the project teams. The probable

causes that can lead to schedule slippage in a project during different phases of a project life

cycle are listed out.

Process Failure Mode and Effects Analysis (FMEA) was be carried out to identify the ways in

which the project process can fail to meet critical customer requirements, to estimate the risk of

specific causes with regard to these failures, to evaluate current control plan for preventing these

failures from occurring and to prioritize the actions that should be taken to improve the process.

Based on the Risk Priority Number (RPN), five most severe causes that affect the CTQs and the

recommended actions were considered. Fig.5 shows the results of FMEA conducted for schedule

compliance.

56

Improvement Phase in TCS

As process improvements, process controls were introduced and error proofing / productivity

tools were introduced and management actions were initiated to prevent the causes for failures

from occurring. The process improvement activities were carried out based on the recommended

actions from the FMEA. Fig.6 shows some of the improvements carried out.

57

Control Phase in TCS:

Process Capability study was conducted to assure that the six sigma spread of the process would

comfortably fit within the specification limits for the process performance characteristics.

Process generated data were used to draw normal curves for CTQs and these normal curves were

used to make decisions about the capability of the process. Figures 7 show the normal curves for

the CTQs, On time delivery and Product Quality.

Control charts were utilized to assure that the process was statistically in control exhibiting only

random variations. Figure 8 shows the Control charts drawn for one of the CTQs. The

assignable causes for variations from the target values were analyzed and corrective actions were

initiated to remove the causes and to prevent them from occurring again.

58

Fig. 6 Improvements carried out

MANAGEMENT ACTIONS

New Facility New Hardware

PROCESS IMPROVEMENTS

Procedures Guidelines Error Proofing Tools

Productivity Tools

PROCESS CONTROLS

Project Review Meetings

Causal Analysis Internal Audit Compliance Monitoring

20100-10-20-30

150

100

50

0

sch.slip

Freq

uenc

y

Histogram of sch.slip, with Normal Curve

3210

500

400

300

200

100

0

C2

Freq

uenc

y

Histogram of C2, with Normal Curve

9080706050403020100

5

0

-5

Observation

Indi

vid

uals

11

1

1

1

X=0.055563.0SL=2.147

-3.0SL=-2.036

876543210M

ovin

g R

ange

1111

11

11 11

R=0.7865

3.0SL=2.570

-3.0SL=0.000

I and MR Chart for sch.slip

59

Fig. 7 Normal Curve Charts for CTQs from 3rd Qtr.1998 to 3rd Qtr.1999s for

Fig 8: Control Charts

Process monitoring was done to assure that the process remains in control and capable. Figure 9

shows that the trend charts for schedule compliance and quality compliance and improvements

are evident from the charts. The current process capability of the center is at 5.85

CONCLUSION AND SUMMARY

60

Fig. 9 Trend Charts for CTQs from 3rd Qtr.1998 to 3rd Qtr.1999

Six Sigma is becoming a cornerstone philosophy among the world’s leading corporations

because it has proven itself by generating substantial business returns. Six Sigma is also seen as a

great training ground for twenty-first century leadership. It is now fairly commonplace for people

who are well trained in Six Sigma to achieve top leadership positions. It is only fitting to end this

with words from Six Sigma’s staunchest champion, Jack Welch: “We believed then and we are

convinced today . . . that there is an ‘infinite capacity to improve everything’—but there was no

methodology or disciple attached to that belief. There is now. It’s Six Sigma quality, along with

a culture of learning, sharing, and unending excitement.”

The thrust on Six Sigma Quality has helped in creating and sustaining a customer focus in the

center. The Six Sigma projects undertaken have helped in spreading the Six Sigma philosophy in

the center by creating a culture of effective, creative teamwork wherein the leadership is

dedicated to sharing information, ownership and rewards. The individual team members have

clear guidelines to do their jobs and they see how to add value to products and services they

produce. The Quality system of the Center has been structured on the foundations of Six Sigma

to satisfy customer’s needs and expectations while serving to protect the interests of TCS in

relation to risk, cost and benefit considerations.

RECOMMENDATION

61

Yes True, It is not very difficult to give any recommendation for Six Sigma after going through

the project in detail. This is the perhaps the best way to run your Organization as it makes

business healthy enough to meet the expectations of analysts and investors , makes strong theme

or vision for the future of the organization that is well understood and consistently

communicated and most important improves the overall business results drastically.

Only one thing which can be recommended out here is, since the employee is being given

extensive training on the tools and Six Sigma, a bond should be signed from the employee that

he will not leave the organization for say “X” years since we are investing hugely into it. Else the

company will lose a trained resource.

QUESTIONNAIRE

62

I am Viveak Chawla a student of PGDBA of Symbiosis Centre for Distance

learning. This is a questionnaire prepared in reference to the project study on "Six

Sigma Application and Training". Hence I seek your kind cooperation and support.

1. Gender Female Male

2. Age Group 20-30 30-40 40-50 50+

3. Designation Junior Management Middle Management

Senior Management

4. Work experience Less than 10 yrs 10-20yrs 20 & above yrs

5. Do you agree that application of Six Sigma Program can benefit your organization? Yes No

6. Does your organization apply six sigma in recruitment of employees? Yes No

7. Does your organization apply six sigma methods in training of employees? Yes No

8. Are the training needs for six sigma of the organization assessed periodically? Yes No

63

9. Are the needs of six sigma training efficiently clarified to the trainees? Yes No

10.Is the Six Sigma training program considered as importance on your part? Yes No

11.What should be the purpose of Six Sigma training?

Up gradation of abilities --------------Preparing for future assignments --------------Preparing for promotion --------------Training in allied fields --------------Preparing for transfers --------------Develop specific abilities /competence --------------

12.Identification of Six Sigma training needs of employees should be done through?Performance Appraisal --------------Discussion with superiors --------------Training Department --------------Some other process --------------

13.Suggest measures for effective applicability of six sigma approach?Linking Six Sigma to business strategy --------------Linking to customer --------------Linking to organizational management skills --------------Some other process --------------Training --------------

14.What are the major criticisms against six sigma application towards organizational improvement?Lack of originality --------------

64

Based on arbitrary standards --------------Linking to organizational management skills --------------Some other process --------------Can’t say --------------

15.Do you agree application of Six Sigma method can remove the bottleneck of the organization Yes No

16.Do you agree application of Six Sigma is Utopian method? Yes No

17.Do you think Six Sigma method is likely to remain one of the key alternatives to improve the management process? Yes No

18.Are you aware about concept of Six Sigma method and its applicability to improve the organization process? Yes No

19.Do you agree application of Six Sigma can strengthen the present system of training? Yes No

20.Do you agree that Six Sigma approach apply to academic, research and development measure effective? Yes No

SIX SIGMA TRAINING NEED FORM

65

Name Employee No:

Designation: Section:

Department: Place of Posting

(Please see overleaf for instructions before filling up the form)

NEEDS

SHORT-TERM LONG-TERM REMARKS OF HOD

ESSENTIAL

1.

2.

DESIRABLE

1.

2

Signature of the employee Signature of the Reporting Officer

Signature of the Head of Dept.

Name Name Name

Designation Designation Designation

Instructions: Please fill up the form in consultation with your Reporting Officer,

what in your opinion are the additional knowledge, skills and attitudes required for

66

enhancing your performance in the present job, for handling future responsibilities

and for your personal development and growth.

A short explanation of the terms used in the table is given below for your

appreciation;

Essential: Developmental needs which, if not met, will affect job performance

Desirable: Developmental needs which do are necessary for personal development

and growth

Short Term: Developmental needs which need to be fulfilled for immediate job

performance

Long Term: Developmental need which need to be fulfilled for future job

performance, in next two years or so

SIX SIGMA PROGRAMME FEEDBACK FORM

PERFORMANCE OF FACULTY(Please circle your choice on the scale)

67

S.NO NAME OF THE

FACULTY

TOPIC OF THE

SESSIONUNSATISFACTORY EXCELLENT

1 1 2 3 4 5

2 1 2 3 4 5

3 1 2 3 4 5

4 1 2 3 4 5

RELEVANCE OF INPUTS(Please circle your choice on the scale)

S.NO NAME OF THE TOPIC NOT RELEVANTMOST

RELEVANT

1 1 2 3 4 5

2 1 2 3 4 5

3 1 2 3 4 5

4 1 2 3 4 5

LEVEL OF INPUTS(Please circle your on the scale)

68

S. NO

NAME OF THE TOPIC ELEMENTARY ADVANCED

1 1 2 3 4 5

2 1 2 3 4 5

3 1 2 3 4 5

4 1 2 3 4 5

DURATION OF THE TRAINING

PROGRAMME

Adequate/inadequate

COURSE MATERIAL Adequate/inadequate

TRAINING METHODOLOGY Satisfactory/not

Satisfactory

ADMINISTRATIVE SERVICES

Signature of the participant

BIBLIOGRAPHY

69

1. Ron Radice, Radhika Sokhi, P.Suresh, " Journey to Level 4: TCS

SEEPZ Software Process Improvement", SEPG India 1999

Conference

2. Six Sigma Training by GE India

3. www.tutorialpoint.com/six_sigma

4. Six Sigma by Daniel L. Quinn

70