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6 Case study (Source: http://www.mydabbawala.com accessed on 20/Feb/2007)
A dabbawala is a person in theIndian city ofMumbai whose job is to carry and deliverfreshly made food from home inlunch boxes to office workers. Dabbawalas picks up
175,000 lunches from homes and delivers them to harried students, managers and workerson every working day, at their desk, 12.30 pm on the dot. Customers can even order
through the Internet. After the customer leaves for work, his/her lunch is packed into alunchbox by his family members. A color-coded notation on the handle of the lunchbox
identifies its owner and destination. The dabbawala picks up the lunchbox and he moves
fast using a combination of bicycles, trains and his two feet. In a 3 hour period, through a25-Km of public transportation involving multiple transfer points he delivers to his
customers.
In 1998, Forbes Global magazine conducted a quality assurance study on the Dabbawalas'
operations and gave it an accuracy rating of 99.999999, more than Six Sigma. The
Dabbawalas made one error in six million transactions. That put them on the list of SixSigma rated companies, along with multinationals like Motorola and GE. There was only
one mistake in every 6,000,000 deliveries. TheBBC has produced adocumentary ondabbawalas, and Prince Charles, during his visit to India, visited them (he had to fit in with
their schedule, since their timing was too precise to permit any flexibility).
Although the service remains essentially low-tech, with the barefoot delivery boys as the
prime movers, the dabbawalas have started to embrace modern information technology,and now allow booking for delivery throughSMS. A web site, mydabbawala.com, has also
been added to allow for online booking, in order to keep up with the times. An online poll
on the website ensures that customer feedback is given pride of place. The success of the
system depends on teamwork and time management. Such is the dedication andcommitment of the barely literate and barefoot delivery boys who form links in the
extensive delivery chain, that there is no system of documentation at all. A simple colourcoding system doubles as an ID system for the destination and recipient. There are no
multiple elaborate layers of management either just three layers. The local dabbawalas
at the receiving and the sending ends are known to the customers personally, so that there
is no question of lack of trust. Also, they are well accustomed to the local areas they caterto, which allows them to access any destination with ease.
http://www.mydabbawala.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Lunch_boxhttp://en.wikipedia.org/wiki/Lunch_boxhttp://en.wikipedia.org/wiki/Office_workerhttp://en.wikipedia.org/wiki/Office_workerhttp://en.wikipedia.org/wiki/BBChttp://en.wikipedia.org/wiki/BBChttp://en.wikipedia.org/wiki/Television_documentaryhttp://en.wikipedia.org/wiki/Television_documentaryhttp://en.wikipedia.org/wiki/Charles%2C_Prince_of_Waleshttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Short_message_servicehttp://en.wikipedia.org/wiki/Short_message_servicehttp://www.mydabbawala.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Lunch_boxhttp://en.wikipedia.org/wiki/Office_workerhttp://en.wikipedia.org/wiki/BBChttp://en.wikipedia.org/wiki/Television_documentaryhttp://en.wikipedia.org/wiki/Charles%2C_Prince_of_Waleshttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Short_message_service -
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effectively. The training necessary to do anything meaningful was extensive. Improvement
efforts typically were conceived and executed by high-level managers and could consume a
lot of company resources. Consequently, only large firms tackled Six Sigma endeavorsthough the benefits could be substantial for firms of any size. Gen III changes this scenario
drastically.
Six Sigma is a continuous improvement methodology developed at Motorola
that is designed to systematically reduce defects recognizing two important
relationships.1
1. The overall yield of a group of related processes is much lower than the
yields of the individual processes. For example, if the individual yields at each
of a set of dependent processes is .99, the overall yield for 100 processes or
operations would be .99100 = .366.
2. The total cost of a product or service is directly related to the defect rate,
i.e.,
Total cost = (Unit cost)(1+ defect rate).
The six sigma level is where the performance at each function, process, or
operation is nearly perfect, generating a defect rate of .000034% or only 3.4
defects per million. For comparison, a three sigma level of performance
generates 66,807 defects per million as indicated in the table below.
Sigma* Defects per million Long term yield %
3 66,807 93.32
4 6,21 99.379
5 233 99.9767
6 3.4 99.999966
*A sigma is a statistical unit of measure referred to as the standard deviation.
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Steps in the Six Sigma Methodology
The six sigma methodology includes the following five steps.
1. Define the business. This step includes defining customer requirements,
business goals and objectives, team roles and responsibilities, scope and
resources, processes, and performance baselines. For example, Noritaki Kano's
quality analysis is useful in defining the customer's requirements. Kano's
approach separates customer requirements into three categories:Assumed requirements - a given feature or function such as wheels on a
automobile.
Specified requirements - the customer's explicitly stated requirements.
Expected requirements - the customer's unstated, but real expectations.
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These requirements establish how good work and defective work are defined.
Other techniques used in this step include: project charter, stakeholder
commitment analysis, affinity diagrams, voice of the customer, force field
analysis, Pareto analysis, process mapping, and SIPOC (suppliers, inputs,
process, outputs, customers). Some of these techniques are defined in the Six
Sigma site's Quality Glossary.
2. Measure the processes. Measure defects per unit, defects per million
opportunities and the yield percentage. For example,
Defects per unit = Total number of defects Total number of units
inspected
A unit is the output of a process, e.g., an invoice in accounts payable, a
subassembly in an assembly area, a package in a packing department. All
defects are counted, not just the number of defective units since a unit mayinclude several defects.
3. Analyze the process to determine the root cause. Pareto charts or diagrams
are used in this step to identify critical factors that have the greatest influence
on performance, recognizing that most problems are created by a few causes
(Referred to as the 80/20 rule). The analyze step continues with cause and
effect, or fishbone diagrams to identify potential causes of problems. Other
techniques used in this step include multivary analysis and failure mode and
effects analysis. The illustrations below are from MAAW's Chapter 8.
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4. Improve the process. This step includes use of two techniques, Design ofExperiments and change management. Design of experiments involves
statistically designed experiments where multiple measurements are made of
two or more variables are that vary simultaneously. This allows the interactions
between many variables to be included in the experiment. After the experiment
is designed, data are collected and analyzed with statistical software.
5. Control. Control tools include control charts, precontrol charts, and run
charts. The charts below are from MAAW's Chapter 3. This step includes
transforming and maintaining an organizational culture that embraces change
and improvement.
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Six Sigma DMAIC Roadmap
A somewhat different and more detailed list of steps and tools is provided in
the tables below. These tables were adapted from the article "Six Sigma
DMAIC Roadmap" found on theSix Sigma web site. Most of the tools are
defined in the Six Sigma site's Quality Glossary.
Define
Steps Tools
Define customers and requirements. Project charter
Develop problem statement, goals and
benefits.Process flowchart
Identify champion, process owner and
team.SIPOC diagram
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Define resources. Stakeholder analysis
Evaluate key organizational support. DMAIC work breakdown ...
Develop project plan and milestones. CTQ definitions
Develop high level process map. Voice of the customer ...
Measure
Steps Tools
Define defect, opportunity, unit and
metrics.Process flowchart
Detailed process map of appropriate
areas.Data collection plan/example
Develop data collection plan. Benchmarking
Validate the measurement system. Measurement system analysis
Collect the data. Voice of the customer ...
Begin developing Y=f(x) relationship. Process sigma calculation
Determine process capability & sigma
baseline.
Analyze
Steps Tools
Define performance objectives. Histogram
Identify value/non-value added process
steps.Pareto chart
Identify sources of variation. Time series/run chart
Determine root cause or causes. Scatter plot
Determine vital few x's, Y=f(x)relationship.
Regression analysisCause and effect/fishbone diagram
5 whys
Process map review and ...
Statistical analysis
Hypothesis testing
Non-normal data analysis
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Improve
Steps Tools
Perform design of experiments. BrainstormingDevelop potential solutions. Mistake proofing
Define operating tolerances of potential
system.Design of experiments
Assess failure modes of potential
solutions.Pugh matrix
Validate potential improvement by pilot
studies.House of quality
Correct/re-evaluate potential solution. Failure modes and effects ...
Simulation software
Control
Steps Tools
Define and validate monitoring and
control
system.
Process sigma calculation
Develop standards and procedures. Control charts
Implement statistical process control. Cost savings calculations
Determine process capability. Control plan
Develop transfer plan, handoff to process
owner.
Verify benefits, cost savings/avoidance,
profit
growth.
Close project, finalize documentation. Communicate to business, celebrate.
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For one thing, the training and infrastructure needed to get useful results from a Gen III
project are much less than previously has been the case. Gen III introduces the concept of
the White Belt Six Sigma practitioner. This is an individual who facilitates use of SixSigma in work cells or similar settings. Higher-level White Belts typically ferret out small
benefits from applying Six Sigma to problems that would not justify the time and attention
of a Six Sigma Black Belt.