1919--0707--0808 Six SigmaSix Sigma ١١

Six Sigma

The Secret of Success behindFortune-500 Companies

Welcome to the program

1919--0707--0808 Six SigmaSix Sigma ٢٢

About MEQMPAbout MEQMP(Share, Exchange & Learn)(Share, Exchange & Learn)

Formed in April 2005Formed in April 2005

To gather Quality Management Professionals To gather Quality Management Professionals

More than 1150 members from Middle East including More than 1150 members from Middle East including UAE, Kuwait, Qatar, Saudi Arabia, Bahrain, Oman, Iran, UAE, Kuwait, Qatar, Saudi Arabia, Bahrain, Oman, Iran, Iraq, Jordan, Pakistan and IndiaIraq, Jordan, Pakistan and India

Consultants, Trainers, Auditors, Managers or Consultants, Trainers, Auditors, Managers or CoordinatorsCoordinators

Programs for different management issues like Quality, Programs for different management issues like Quality, Environment, H & S and Knowledge managementEnvironment, H & S and Knowledge management

1919--0707--0808 Six SigmaSix Sigma ٣٣

MissionMissionTo develop a forum of Quality Management Professionals from To develop a forum of Quality Management Professionals from different business sectors where:different business sectors where:

1.1. Share their knowledge and experience of Quality Management Share their knowledge and experience of Quality Management

2.2. Latest information about concepts, theories, trainings and Latest information about concepts, theories, trainings and certifications certifications

3.3. New comers in the field of quality can be benefited through theNew comers in the field of quality can be benefited through theleadership of senior professionals and gurus.leadership of senior professionals and gurus.

4.4. Quality Management Professionals can be assisted through Quality Management Professionals can be assisted through necessary guidance provided by senior members for their better necessary guidance provided by senior members for their better future.future.

5.5. Selected professionals work to expand the scope for further Selected professionals work to expand the scope for further improvements.improvements.

1919--0707--0808 Six SigmaSix Sigma ٤٤

VisionVision

Fostering learning, information awareness Fostering learning, information awareness and knowledge management in the area of and knowledge management in the area of Quality focusing collaboration, persists in Quality focusing collaboration, persists in continual improvement and development continual improvement and development by utilizing current research and by utilizing current research and standards.standards.

1919--0707--0808 Six SigmaSix Sigma ٥٥

Membership BenefitsMembership BenefitsMonthly technical meetings on QHSE issuesMonthly technical meetings on QHSE issuesInformation about latest quality issues Information about latest quality issues Discount on books and Annual Meeting Discount on books and Annual Meeting registrationregistrationEligible to present papers at the Annual MeetingEligible to present papers at the Annual MeetingEligible to vote as member of MEQMP for Eligible to vote as member of MEQMP for Executive Board and Technical CommitteesExecutive Board and Technical CommitteesNetworking with more than 1200 members Networking with more than 1200 members Receive e magazine and informed about job Receive e magazine and informed about job opportunities in QHSE fieldopportunities in QHSE field

1919--0707--0808 Six SigmaSix Sigma ٦٦

About the PresenterAbout the Presenter

Mr. G.K.K. Singh Mr. G.K.K. Singh 28 years of Quality Management experience in 28 years of Quality Management experience in the industrythe industryDirector of the Asian Institute of Quality Director of the Asian Institute of Quality ManagementManagementHas trained more than 25000 persons till dateHas trained more than 25000 persons till dateHe has mentored over 160 successful Six Sigma He has mentored over 160 successful Six Sigma projects till date.projects till date.

1919--0707--0808 Six SigmaSix Sigma ٧٧

ABOUT ASIAN INSTITUTEABOUT ASIAN INSTITUTE

Established 1999Established 1999

Part of The Part of The Galaxy GroupGalaxy Group of Companiesof Companies-- A Group into Manufacturing, Exports,A Group into Manufacturing, Exports,Training and Consultancy ActivitiesTraining and Consultancy Activities

OnlyOnly Institute in Asia Accredited by Institute in Asia Accredited by ASCB (Europe) Ltd., UKASCB (Europe) Ltd., UK -- a leading a leading Accreditation BodyAccreditation Body

1919--0707--0808 Six SigmaSix Sigma ٨٨

OUR VISIONOUR VISION

Asian Institute of Quality Management Asian Institute of Quality Management (AIQM), a leading institute in Asia , is (AIQM), a leading institute in Asia , is

dedicated to empowering management dedicated to empowering management professionals & students to achieve professionals & students to achieve excellence in business performance excellence in business performance

through application of quality through application of quality ––management practices, in the core management practices, in the core processes of their organizations.processes of their organizations.

1919--0707--0808 Six SigmaSix Sigma ٩٩

No. of No. of ““Contact ClassContact Class”” Courses Courses Conducted by AIQM in Conducted by AIQM in

India & AbroadIndia & Abroad

Six Sigma White Belt Six Sigma White Belt –– 7551 7551 NosNosSix Sigma Yellow Belt Six Sigma Yellow Belt –– 683 683 NosNosSix Sigma Green Belt Six Sigma Green Belt –– 492 Nos. 492 Nos. Six Sigma Black Belt Six Sigma Black Belt –– 307 Nos.307 Nos.

1919--0707--0808 Six SigmaSix Sigma ١٠١٠

Some Organizations who have sponsored participants for our Six Sigma Courses

I.T.I.T. BPOBPO Mfg.Mfg. OthersOthers

ICICI ICICI InfotechInfotech

Wipro Wipro BPOBPO

Tata MotorsTata Motors

Nilkamal Nilkamal PlasticsPlastics

SKFSKFBearingsBearings

Skoda AutoSkoda Auto

Mahindra & Mahindra & MahindraMahindra

Wipro Wipro InfotechInfotech

PerotPerotSystemsSystems

I B M I B M DakshDaksh

IBM IBM GlobalGlobal

Tata Share Tata Share RegistryRegistry

ICICI BankICICI Bank

IDBI BankIDBI Bank

Lehman Bros.Lehman Bros.

DeutscheDeutscheBankBank

Tata Tata InfotechInfotech

W N SW N S

DatamaticsDatamatics P & O P & O NedlloydNedlloyd

Indian ArmyIndian ArmyIndian NavyIndian Navy

1919--0707--0808 Six SigmaSix Sigma ١١١١

I.T.I.T. BPOsBPOs Mfg.Mfg. OthersOthersRolta IndiaRolta India TracmailTracmail

(Canada)(Canada)CromptonCromptonGreavesGreaves

Cap GeminiCap Gemini(USA)(USA)Golden Golden SourceSource(Austria)(Austria)

ICICI One ICICI One SourceSource

Principal Principal Global (USA)Global (USA)

Johnson & Johnson & JohnsonJohnson

RelianceRelianceIndustriesIndustries

KNPC KNPC ––(Kuwait)(Kuwait)Kuwait Oil Kuwait Oil Co.Co.(Kuwait)(Kuwait)

Otis SoftOtis Soft--ware Divn.ware Divn.

Global Global TelesystemsTelesystems

Otis Otis ElevatorsElevators

Indian Indian RailwaysRailways

CMCCMC MphasisMphasis MazgaonMazgaonDocksDocks

ISO 9K NSGISO 9K NSG(Malaysia)(Malaysia)

Kaizen Kaizen InstituteInstitute(Uganda)(Uganda)

1919--0707--0808 Six SigmaSix Sigma ١٢١٢

SIX SIX –– SIGMA SIGMA OVERVIEWOVERVIEW

1919--0707--0808 Six SigmaSix Sigma ١٣١٣

Some Myths About six SigmaSome Myths About six Sigma

Myth Myth ––1: It is for only people in the role 1: It is for only people in the role of Quality and Operations / Productionof Quality and Operations / Production

The fact is that everyone in the The fact is that everyone in the organization has a role to play by reducing organization has a role to play by reducing the defects in their activities and the defects in their activities and eliminating the waste in their departments, eliminating the waste in their departments, thereby contributing towards increase in thereby contributing towards increase in profits.profits.

1919--0707--0808 Six SigmaSix Sigma ١٤١٤

Some Myths About six SigmaSome Myths About six Sigma

Myth Myth ––2: It is another technique for 2: It is another technique for improving qualityimproving quality

Six Sigma is a new way of managing theSix Sigma is a new way of managing theOrganization and an excellent route toOrganization and an excellent route toImproving profits in the current scenarioImproving profits in the current scenarioof global competition.of global competition.

1919--0707--0808 Six SigmaSix Sigma ١٥١٥

Some Myths About six SigmaSome Myths About six Sigma

Myth Myth ––3: You have to be an expert in Statistics to 3: You have to be an expert in Statistics to understand and implement Six Sigmaunderstand and implement Six Sigma

Statistical techniques are a set of tools available in six Statistical techniques are a set of tools available in six sigma management methodology.sigma management methodology.

But a lot of activity in six sigma is nonBut a lot of activity in six sigma is non--statistical, usingstatistical, usingelements like Crosselements like Cross--functional teams, Involvement offunctional teams, Involvement ofpeople, Standardization, Innovative thinking,people, Standardization, Innovative thinking,Documentation and SelfDocumentation and Self--discipline.discipline.

1919--0707--0808 Six SigmaSix Sigma ١٦١٦

Some Myths About six SigmaSome Myths About six SigmaMyth Myth ––4: Six Sigma is only for very large organizations4: Six Sigma is only for very large organizations

Six Sigma uses the Six Sigma uses the ““peoplepeople--powerpower”” in an organization.in an organization.Therefore, even a small organization can benefit greatlyTherefore, even a small organization can benefit greatlyby using the tools and techniques of six sigma.by using the tools and techniques of six sigma.

Myth Myth ––5: Six Sigma is very costly for implementation5: Six Sigma is very costly for implementation

The costs incurred on six sigma implementation are moreThe costs incurred on six sigma implementation are morein the nature of an investment. For example, anin the nature of an investment. For example, aninvestment of $ X in investment of $ X in ““preventionprevention”” will normally result in awill normally result in asavings of at least $ 5X.savings of at least $ 5X.

1919--0707--0808 Six SigmaSix Sigma ١٧١٧

SIX SIGMA HISTORY

Motorola – 1987: First in the world to use Six Sigma approach

Established a methodology to quantifyQuality

Achieved the Inaugural Malcolm Balridge National Quality Award – 1988

Their President Robert Galvin shared thesecrets of Six Sigma success with others.

1919--0707--0808 Six SigmaSix Sigma ١٨١٨

WORLDWIDE USE OF SIX SIGMA:WORLDWIDE USE OF SIX SIGMA:

1987 1987 -- MotorolaMotorola1989 1989 -- IBMIBM1991 1991 -- Kodak, DECKodak, DEC1993 1993 -- ABBABB1995 1995 -- GE, Allied SignalGE, Allied Signal1997 1997 -- Dow Chemical, Dupont, NEC, Samsung, Dow Chemical, Dupont, NEC, Samsung,

LG Electronics, Sony, Toshiba, WhirlpoolLG Electronics, Sony, Toshiba, Whirlpool1999 1999 -- American Express, J&J, Ericsson, NCR,American Express, J&J, Ericsson, NCR,

Nokia, Philips, US Postal ServiceNokia, Philips, US Postal Service

MORE THAN 53% MORE THAN 53% FORTUNEFORTUNE--500500 COMPANIES AND ABOVE 82% COMPANIES AND ABOVE 82% FORTUNEFORTUNE--100 100 COMPANIES ARE THERE TODAY BECAUSE THEY COMPANIES ARE THERE TODAY BECAUSE THEY RELY ON SIX SIGMARELY ON SIX SIGMA

1919--0707--0808 Six SigmaSix Sigma ١٩١٩

GAINS MADE BY SOME OF THESE ORGANIZATIONS:

Motorola – Saved US $ 2.2 billion in a Four year time frame

General Electric – Increased profits by US $ 9.0billion in Five years

Dupont – Increased profits by US $ 1.0 billion in Two years and further US $ 2.4 billion in nextTwo years

Bank of America – Cut Cycle times by half saved US $ 0.8 billion in first Three years

1919--0707--0808 Six SigmaSix Sigma ٢٠٢٠

TRADITIONAL VIEW OF TRADITIONAL VIEW OF ““QUALITYQUALITY”” VsVs““SIX SIGMASIX SIGMA”” VIEWVIEW

TRADITIONAL VIEWTRADITIONAL VIEW SIX SIGMA VIEWSIX SIGMA VIEW

•• QUALITY MEANS QUALITY MEANS ““GOODNESSGOODNESS”” IN IN PRODUCT / SERVICEPRODUCT / SERVICE

•• QUALITY IS QUALITY IS ““CONFORMANCECONFORMANCETO CUSTOMER TO CUSTOMER REQUIREMENTSREQUIREMENTS

•• QUALITY CANNOT BE QUALITY CANNOT BE MEASURED MEASURED

•• QUALITY IS PRECISELY QUALITY IS PRECISELY MEASURABLEMEASURABLE

•• ERROR IN WORK IS ERROR IN WORK IS INEVITABLEINEVITABLE

•• ERROR IN WORK CAN BE ERROR IN WORK CAN BE PREVENTED, IF PLANNEDPREVENTED, IF PLANNED

•• QUALITY REQUIRES TOP QUALITY REQUIRES TOP MANAGEMENT MANAGEMENT SUPPORTSUPPORT

•• QUALITY REQUIRES TOP QUALITY REQUIRES TOP MANAGEMENT MANAGEMENT PARTICIPATIONPARTICIPATION

1919--0707--0808 Six SigmaSix Sigma ٢١٢١

Six Sigma involves disciplined data collection & analysis to achieve one

of the following THREE Goals:

Reduce defects in any process to less than 3.4 per million operations

Eliminate Wasteful Practices

Delight internal and external customersby fulfilling their present & future needs.The Ultimate Goal in all efforts: To Increase R.O.I for the organization

1919--0707--0808 Six SigmaSix Sigma ٢٢٢٢

KEY THEMES IN SIX SIGMAKEY THEMES IN SIX SIGMA

1919--0707--0808 Six SigmaSix Sigma ٢٣٢٣

1. START WITH THE CUSTOMER

FIND HIS CTQ(CRITICAL TO QUALITY) REQUIREMENTS

ON AN ON – GOING BASIS

FOR BOTH INTERNAL & EXTERNAL CUSTOMER

1919--0707--0808 Six SigmaSix Sigma ٢٤٢٤

2. VIEW EVERY ACTIVITY AS A PROCESS

Y = f(X1, X2, ----------------------- Xn)

START WITH THE GOAL. WHAT IS THE “Y” WE WANT TO ACHIEVE ONE OF THE PROCESS?

IDENTIFY THE CTPs.

WHICH OF THE “Xs” ARE CRITICAL TO PROCESS?

PLAN TO ENSURE THAT THE “RIGHT” Xs ARE MANAGED SO AS TO ACHIEVE THE DESIRED “Y”

1919--0707--0808 Six SigmaSix Sigma ٢٥٢٥

3. WHAT LEADS AN ORGANIZATION3. WHAT LEADS AN ORGANIZATIONTO EXCEL IN PROVIDING TO EXCEL IN PROVIDING SATISFACTION TO CUSTOMER?SATISFACTION TO CUSTOMER?

EXCELLENT PRODUCT QUALITYEXCELLENT PRODUCT QUALITYEXCELLENT SERVICE QUALITYEXCELLENT SERVICE QUALITYOPTIMUM COSTOPTIMUM COSTTIMELY DELIVERYTIMELY DELIVERY

SIX SIGMA VIEWS THESE SIX SIGMA VIEWS THESE 4 CROSS4 CROSS--FUNCTIONAL GOALSFUNCTIONAL GOALS AS AS

SUPERORDINATE SUPERORDINATE (ABOVE ALL FUNCTIONAL GOALS)(ABOVE ALL FUNCTIONAL GOALS)

1919--0707--0808 Six SigmaSix Sigma ٢٦٢٦

4. HOW MUCH DOES IT COST TO IMPROVEQUALITY?

THE ANSWER: NOTHING

RATHER IF WE INVEST RS. X ONINCREASING COST OF CONFORMANCE (INSPECTION + PREVENTION)

WE WILL SAVE RS. 5X ON THE COST OFNON-CONFORMANCE (INTERNAL FAILURE + EXTERNAL FAILURE + HIDDEN COST)

1919--0707--0808 Six SigmaSix Sigma ٢٧٢٧

5. IMPORTANT PRINCIPLES OF SIX SIGMA

GENUINE FOCUS ON CUSTOMER – ON ONGOING BASIS

USE ANALYSIS OF DATA ALONGWITHCRITICAL THINKING

FOCUS ON IMPROVING THE PROCESSES,NOT THE PRODUCT

1919--0707--0808 Six SigmaSix Sigma ٢٨٢٨

CREATE A CULTURE OF CREATE A CULTURE OF PROPRO--ACTIVEACTIVEMANAGEMENT MANAGEMENT

(BUILD (BUILD PREVENTIONPREVENTION INTO THE PROCESSES, INTO THE PROCESSES, NOT CORRECTION)NOT CORRECTION)

BOUNDARYLESS COLLABORATION AND BOUNDARYLESS COLLABORATION AND TEAMWORKTEAMWORK BETWEEN CUSTOMER, BETWEEN CUSTOMER, EMPLOYEES AND SUPPLIERS.EMPLOYEES AND SUPPLIERS.

(TREAT YOUR SUPPLIERS AS (TREAT YOUR SUPPLIERS AS PARTNERSPARTNERS IN IN THE BUSINESS).THE BUSINESS).

1919--0707--0808 Six SigmaSix Sigma ٢٩٢٩

ADOPT INNOVATION AS A ROUTE TO ADOPT INNOVATION AS A ROUTE TO ACHIEVE ACHIEVE BREAKTHROUGH GOALSBREAKTHROUGH GOALS IN IN ADDITION TO THE CONTINUAL IMPROVEMENT ADDITION TO THE CONTINUAL IMPROVEMENT GOALSGOALS

BUT MANAGE THE RISKS TO MINIMISE BUT MANAGE THE RISKS TO MINIMISE CHANCES OF FAILURE (USING FMEA)CHANCES OF FAILURE (USING FMEA)

1919--0707--0808 Six SigmaSix Sigma ٣٠٣٠

SIX SIGMA IMPLEMENTATION STEPS

STEP – 1: FOUNDATION LEVEL COURSE FOR TOPMANAGEMENT

STEP – 2: TRAINING OF GREEN BELTS IN GROUPS OF 20 PERSONS EACH

STEP – 3: TRAINING OF BLACK BELTS AS PER REQUIREMENT

STEP – 4: IDENTIFY PROJECTS FOR SIX SIGMA WITH HELP OF CONSULTANT

1919--0707--0808 Six SigmaSix Sigma ٣١٣١

STEP – 5: FORM SIX SIGMA TEAMS CONSISTING OF

– CHAMPION (PROCESS OWNER)– BLACK BELT– GREEN BELT

STEP – 6: START WORK SIMULTANEOUSLY ON (SAY) TEN PROJECTS WITHGUIDANCE OF CONSULTANT

STEP – 7: CHOOSE METHODOLOGY FOR THE PROJECTS WITH HELP OFCONSULTANT

1919--0707--0808 Six SigmaSix Sigma ٣٢٣٢

STEP – 8: COMPLETE PROJECTS AS PER THESTRUCTURED METHODOLOGY OFDMAIC OR 8 – D USING TOOLS LIKE C & E DIAGRAM, PARETO, CORRELATION ANALYSIS, SPC, FMEA, DESIGN OF EXPERIMENTS, ETC.

STEP – 9: CELEBRATE THE SUCCESS ON COMPLETION OF EACH PROJECT.

EVERY BB PROJECT MUST END IN PROFITS / COST SAVINGS OF ABOUT I.0 M SAR FOR THE ORGANIZATION.

1919--0707--0808 Six SigmaSix Sigma ٣٣٣٣

REASONS WHY SIX SIGMAREASONS WHY SIX SIGMAPROJECTS CAN FAILPROJECTS CAN FAIL

TOP MGT PARTICIPATION ABSENTTOP MGT PARTICIPATION ABSENT

SELECTION OF (WRONG) BLACK BELTSELECTION OF (WRONG) BLACK BELT* CREATIVITY* CREATIVITY* TEAM LEADERSHIP* TEAM LEADERSHIP* ENTHUSIASM* ENTHUSIASM

RESISTANCE TO CHANGE RESISTANCE TO CHANGE –– NOT HANDLED NOT HANDLED ADEQUATELYADEQUATELY…….TYPICAL CHANGES NEEDED:.TYPICAL CHANGES NEEDED:

* WILLINGNESS TO COLLECT & ANALYSE DATA* WILLINGNESS TO COLLECT & ANALYSE DATA* EMPLOYEES SHOULD QUESTION EXISTING PRACTICES* EMPLOYEES SHOULD QUESTION EXISTING PRACTICES* COMMUNICATE OPENLY ABOUT FAILURES* COMMUNICATE OPENLY ABOUT FAILURES* THINKING IN A PROACTIVE MANNER* THINKING IN A PROACTIVE MANNER* POSITIVE ATTITUDE TO INT. & EXT. CUSTOMERS* POSITIVE ATTITUDE TO INT. & EXT. CUSTOMERS* CROSS* CROSS--FUNCTIONAL COOPERATIONFUNCTIONAL COOPERATION

1919--0707--0808 Six SigmaSix Sigma ٣٤٣٤

Major Results of Six Sigma Implementation EXAMPLE– L. G. Electronics, Korea

Year 1998 1999 2000 2001

Sigma level of major

CTQs

3.5 4.5 5.2 5.4

Completed Projects

109 682 1,124 1,312

Profit gains by projects (million $)

- 19.9 53.9 66.4

Cost of Non-Conformnce

To Sales Turnover

5.4% 3.6%1.9%

0.8%

1919--0707--0808 Six SigmaSix Sigma ٣٥٣٥

EXAMPLES OF TOP MANAGEMENT EXAMPLES OF TOP MANAGEMENT PARTICIPATION (FROM GE):PARTICIPATION (FROM GE):

Jack Welch Announced: Six Sigma will be Top Jack Welch Announced: Six Sigma will be Top priority for the company for next 5 yearspriority for the company for next 5 years

If Executives cannot support Six Sigma 100%, If Executives cannot support Six Sigma 100%, then GE is not the right company for themthen GE is not the right company for them

Objective for all Management level persons to Objective for all Management level persons to be at least a Six Sigma Green Beltbe at least a Six Sigma Green Belt

40% of Managers40% of Managers’’ incentives tied to Six Sigma incentives tied to Six Sigma resultsresults

1919--0707--0808 Six SigmaSix Sigma ٣٦٣٦

SIX SIGMASIX SIGMA –– DIFFERENCE FROM APPROACHES DIFFERENCE FROM APPROACHES LIKE TQM, SPC, ISO 9001LIKE TQM, SPC, ISO 9001

IMPROVEMENT OF MANAGEMENT PROCESSES IN ADDITION TO IMPROVEMENT OF MANAGEMENT PROCESSES IN ADDITION TO TECHNICAL PROCESSESTECHNICAL PROCESSES

IDENTIFY CTQs & CTPsIDENTIFY CTQs & CTPs

FOCUS ON MANAGING & MONITORING CTPsFOCUS ON MANAGING & MONITORING CTPs

LINKAGE WITH BOTTOMLINE GOALS LINKAGE WITH BOTTOMLINE GOALS –– TYPICAL SAVINGS FROM EACH TYPICAL SAVINGS FROM EACH PROJECT ARE DEFINEDPROJECT ARE DEFINED

ENCOURAGE PROENCOURAGE PRO--ACTIVE THINKINGACTIVE THINKING

BREAKTHROUGH IMPROVEMENT ALONG WITH RISK MANAGEMENTBREAKTHROUGH IMPROVEMENT ALONG WITH RISK MANAGEMENT

ACTIVE PARTICIPATION OF PEOPLE INCLUDING TOP MANAGEMENTACTIVE PARTICIPATION OF PEOPLE INCLUDING TOP MANAGEMENT