1. Six Sigma
A
Strateg
y for
Achievin
g World
Class
Perform
ance

2. MEANING
A term used in statistics to represent standard deviation, an
indicator of the degree of variation in a set of a process

3. 3
DEFINITION
Business Definition
A break through strategy to significantly improve customer
satisfaction and shareholder value by reducing variability in
every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per million
opportunities.

4. What is Six Sigma?
• A goal of near perfection in meeting customer requirements
• A sweeping culture change effort to position a company for
greater customer satisfaction, profitability and competitiveness
• A comprehensive and flexible system for achieving,
sustaining and maximizing business success; uniquely driven by
close understanding of customer needs, disciplined use of
facts, data, and statistical analysis, and diligent attention to
managing, improving and reinventing business processes
(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)

5. Why Six Sigma ?
Mail Delivery
99 % defect free (3.8 ) means 20,000 lost articles per hour
While delivery at 6 (99.99966 % defect free) means 7 articles lost per
hour
Electricity
99 % defect free (3.8 ) means no electricity for 7
hours per month
While at 6 (99.99966 % defect free) it means 1
hour no electricity every 34 years
Surgeries
99 % defect free (3.8 ) means 5000 errors
per week
While at 6 (99.99966 % defect free) means
1.7 errors per week

7. ORIGIN OF SIX SIGMA
 Motorola company that invented Six Sigma.
The term “Six Sigma” was coined by Bill Smith, an engineer
with Motorola
Late 1970s - Motorola started experimenting with problem
solving through statistical analysis
1987 - Motorola officially launched it’s Six Sigma program
Motorola saved more than $ 15 billion in the first 10 years of
its Six Sigma effort

8. 8
Six Sigma methodology
DMAICDMADV

9. Six Sigma Improvement Methods
DMAIC vs. DMADV
Define
Measure
Analyze
Design
Validate
Improve
Control
Continuous Improvement Reengineering

10. Lean Six Sigma Methodology

11. Six Sigma Project Methodology
ControlDefine Measure Analyze Improve
Establish
standards to
maintain
process;
Design the
controls,
implement
and monitor.
Evaluate
financial
impact of the
project
Identify,
evaluate and
select
projects for
improveme
nt
Set goals
Form
teams.
Collect data
on size of the
selected
problem,
identify key
customer
requirements,
Determine
key product
and process
characteristic.
Analyze data,
establish and
confirm the “
vital few “
determinants
of the
performance.
Validate
hypothesis
Improveme
nt strategy
Develop
ideas to
remove root
causes
Design and
carry out
experiments
,
Optimize
the process

12. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Define: Define who your customers
are, and what their requirements are
for your products and services – Their
expectations. Define your team goals,
project boundaries, what you will focus
on and what you won’t. Define the
process you are striving to improve by
mapping the process.

13. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Measure: Eliminate guesswork and
assumptions about what customers need
and expect and how well processes are
working. Collect data from many sources
to determine speed in responding to
customer requests, defect types and how
frequently they occur, client feedback on
how processes fit their needs, how clients
rate us over time, etc. The data collection
may suggest Charter revision.

14. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Analyze: Grounded in the context of the
customer and competitive environment,
analyze is used to organize data and look
for process problems and opportunities.
This step helps to identify gaps between
current and goal performance, prioritize
opportunities to improve, identify sources
of variation and root causes of problems
in the process.

15. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Improve: Generate both obvious and
creative solutions to fix and prevent
problems. Finding creative solutions by
correcting root causes requires
innovation, technology and discipline.

16. Six Sigma DMAIC Process
Measure
Control
Define
Analyze
Improve
Control: Insure that the process
improvements, once implemented, will
“hold the gains” rather than revert to
the same problems again. Various
control tools such as statistical process
control can be used. Other tools such
as procedure documentation helps
institutionalize the improvement.

17. Six Sigma DMADV Process
Measure
Validate
Define
Analyze
Design
Design: Develop detailed design
for new process. Determine and
evaluate enabling elements.
Create control and testing plan for
new design. Use tools such as
simulation, benchmarking, DOE,
Quality Function Deployment
(QFD), FMECA analysis, and
cost/benefit analysis.

18. Six Sigma DMADV Process
Measure
Validate
Define
Analyze
Design
Validate: Test detailed design
with a pilot implementation. If
successful, develop and execute a
full-scale implementation. Tools
in this step include: planning
tools, flowcharts/other process
management techniques, and
work documentation.

19. The Growth Of Six SIGMA
The company that perfected Six Sigma
Jack Welch launched Six Sigma at GE in Jan,1996
 At GE, Six Sigma added more than $ 2 billion to the bottom
line in 1999 alone.

21. 21
Who are Implementing Six Sigma
At least 25% of the fortune 200 claim to have a serious six
sigma program
Financial - Bank of America, GE Capital,
 Electronics - Allied Signal, Samsung, Sony
Chemicals - DuPont, Dow Chemicals
Manufacturing - GE Plastics, Johnson and Johnson,
Motorola, Nokia, Microsoft, Ford.
Airline - Singapore, Lufthansa, Bombardier
And hundreds of others in Americas, Europee, Sub
Continent

22. Company Annual Savings
General Electric $2.0+ billion
JP Morgan Chase *$1.5 billion (*since
inception in 1998)
Motorola $ 16 billion (*since
inception in 1980s)
Johnson & Johnson $500 million
Honeywell $600 million
22
Six Sigma Results

23. 23
THANK
YOU