Six Sigma

Guided by: -Mr. Saurabh Tandel

Prepared by:- Dixit Nehal Subhashbhai(4th Computer, Roll No: 5108)

1.0 Introduction

• “A methodology to manage process variations that cause defects and to systematically work towards managing variation to eliminate those defects.”

• The objective of Six Sigma is to deliver to the end customer:-– High performance– Reliability– Value

1.0 Introduction CTD..1.1 What is Quality?

Internal orientation—company’s perspective. The degree to which a

specific product conforms to a design or specification.

Differences in quality amount to differences in the quantity of some desired ingredient or attribute.

External orientation—customer’s perspective. Fitness for use. Quality consists of the capacity

to satisfy wants.Fig 1.1.1 In the modern era cut throat competition demands Quality

1.0 Introduction 1.1 What is Quality? (CTD..)

Quality Is: Conformance to

Requirements- Meeting standards!

Fitness for use- Meeting & Exceeding

customer’s needs! Quality Dimensions-

Reliability Responsiveness Assurance Empathy

1.0 Introduction 1.1 What is Quality? (CTD..)

Importance of Quality

Quality Control Implement testing procedures against quality definitions.

Quality TestingActivities & processes for specific testing tasks.

2.0 Six Sigma Concept σ : Indicates standard

deviation.

Used to relate the ability of a process to perform defect free work.

The higher the value the better the process is performing and the lower the probability that a defect will occur.

2.0 Six Sigma Concept CTD..2.2 Why Six?

Sigma % Good % Bad DPMO

1 30.9% 69.1% 691,462

2 69.1% 30.9% 308,538

3 93.3% 6.7% 66,807

4 99.38% 0.62% 6,210

5 99.977% 0.023% 233

6 99.9997% 0.00034% 3.4

Sigma Level Defects Per

Million

Opportunities

Cost Of Poor

Quality

2 308,537

(Noncompetitive

companies)

N/A

3 66,807 25-40% of sales

4 6210

(Industry Average)

15-52% of sales

5 233 5-15% of sales

6 3.4

(World Class)

<1% of sales

2.2.1 Table showing variation and striking difference that Six Sigma is having compared to all compatible previously devised Sigma.

2.2.2 Table showing how world Class companies eliminate their defect rate to minima and hence optimize their standards .

History

De Moivre Creates normal Curve17351815 Gauss Uses Normal Curve for error

analysis, probability

1896

Wilfred Pareto introduces 80/20

1924

Walter A. Shewhart - control chart | special vs. common cause variation >> process problems.

1949

US DOD introduces FMEA

1960

IshiKawa Diagram

1970’s

Kano Model 1994

Larry Bossidy Launches 6sigma @ allied Signal

1997

WIPRO - India

1995Jack Welch - GE

1986

Bill Smith – 6Sigma @ Motorola

1941Alex Osborn of BBDO sets “brainstorming” definitions

2.0 Six Sigma Concept2.4 Definitions

• “A term used to describe a measure of quality control that is higher than "normal“.”

• “A measure of quality that strives for near perfection. The Six Sigma process uses data and rigorous statistical analysis to identify "Defects" in a process or product, reduce variability, and achieve as close to zero defects as possible.”

• “A disciplined data driven approach and methodology for eliminating defects in any process from manufacturing to transactional & from product to service. It allows organizations to make customer focused, data driven decisions that ultimately yield a reduction in product defect rate, increase profits and employee morale and high quality products-a accentuating situation for everyone involved.”

Fig 2.4.1 Defining the working model using Six Sigma to have minimum defect i.e. zero defect ideally.

2.0 Six Sigma Concept 2.4 Definitions CTD..

Six Sigma is actually many things:• A Goal• A Vision• A Metric• A Strategy• A Methodology• An Application

3.0 Six Sigma Methodology

3.0 Six Sigma Methodology• the project goals and

customer (internal and external) requirements

Objectives Project’s purpose and

scope defined Outputs

Clear statement of intended improvement, A list of what is important to the customer(s)

3.0 Six Sigma Methodology• The process to determine

current performance

Objectives Focus the improvement

effort by gathering information on the current situation.

OutputsData that pinpoints problem location or occurrence.A more focused problem statement.

3.0 Six Sigma Methodology• Determine the root

cause(s) of the defects.Objectives

Identify root cause(s) and confirm them with data.

OutputsTheory that has been

tested and confirmed

3.0 Six Sigma Methodology• The process by

eliminating defect root causes.

ObjectivesTry out and implement solutions that address root causes

Outputs Planned, tested actions that should eliminate or reduce the impact of the identified root causes.

3.0 Six Sigma MethodologyObjectives

Evaluate the solutions and the plan.

Outline steps for on-going improvements.

Outputs Completed documentation of results, learning, and

recommendations.

3.0 Six Sigma Methodology CTD…

Other Methodologies are :-DFSS -Design For Six SigmaDMADV-Define, Measure, Analyze, Design and

Verify.DMADOV -Define, Measure, Analyze, Design,

Optimize and Verify.IDOV -Identify, Design, Optimize and ValidateDMEDI-Define, Measure, Explore, Develop and

Implement.

4.0 Six Sigma Tools• Brainstorming• Flow charts and process maps• Pareto charts• Control charts• Cause and Effect Diagram (Fishbone Diagram)• XY Matrix• Hypothesis Testing• Failure Mode and Effects Analysis (FMEA)• Design of Experiments (DOE)

5.0 Six Sigma ImplementationSix Sigma Implementation Model

Steps :

Establishing Management Commitment

Information gathering Training – Master Black

Belt,Black Belt,Green Belt,Champion.

Developing Monitoring Systems

Business Processes To Be Improved Are Chosen

Conducting six sigma projects

6.0 Why To Adopt Six Sigma?

Opportunities Traditional(Three Sigma Quality)

Six Sigma Quality

300,000 letters delivered 3,000 miss-deliveries 1 miss-delivery

500,000 computer restarts 4,100 crashes < 2 crashes

500 years of end of month closings

60 months would not balance

.018 months would not balance

For every week of TV broadcasting (per channel)

1.68 hours of dead air 1.8 seconds of dead air

Cleaning 1500 sq ft of carpet

4 sq ft still dirty after cleaning

Dirty carpet smaller than a postage stamp

TQM Vs. Six Sigma

7.0 Six Sigma Applications• Health care• Laboratory• Banking • Insurance• Construction• Education

Yellow belt

Green Belt

Black belt

Master Black belt

Champion

8.0 Six Sigma Success Stories

8.1 Cheapest Six Sigma•Achieved by Dabbawala association running in Mumbai.•Daily 2 lac lunches are moved every day by estimated 5000 dabbawala’s at very moderate rate.•600000:1 defect ratio.•Six Sigma, ISO 2000 certified and this whole system runs by means of illiterate Lecture MBA’s.•No Strike for 116 years.•Acclaimed by Forbes magazine. New York Times based on survey that this industry expand 5 to 10 percent per year.

9.0 Conclusion• Today’s World is too competitive and to survive in this cut-throat

race of success and World leaders one has to adopt the Six Sigma Methodology in any sector with any designations.

• As we have seen from the world class dignified companies like MOTOROLA,SEIMENS,MICROSOFT,GE,GM to Mumbai’s DABBAWALLAS every one can attain this standard if employees and all other adjoining entities unites under the common goal for success of company for betterment of individuals for promoting National Prestige .

• Hence we can draw the conclusion that the equation y = f(x) is the basic equation of life. You can be sure of the output only if you can control the inputs. In other words the output of a process is the function of its inputs.

THANKS!!!