4. A highly disciplined process that helps us focus on developing
and delivering near-perfect products and services.
The word Six Sigma 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 and get as close
to “zero defects” as possible.
5. MEANING
A term used in statistics to represent standard deviation, an
indicator of the degree of variation in a set of a process
6. DEFINATION
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.
6
7. Understanding Six Sigma
Degree of variation;
Sigma is a letter in the Greek Alphabet
Level of performance in terms of defects
Statistical measurement of process capability
Benchmark for comparison
Process improvement methodology
It is a Goal
Strategy for change;
A commitment to customers to achieve an acceptable
level of performance
7
8. sigma Defect rate Cost of poor quality Competitive level
ppm (%of sales)
six 3.4 > 10% World class
five 233 10-15% World class
four 6210 15-20% Industry average
three 66807 20-30% Industry average
two 308537 30-40% Non - competitive
one 690000 < 40% Non - competitive
9. 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
10. 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.
11.
12. Six Sigma Certified Dabbawalla’s
of Mumbai
• Existing since the 1890s.
• The tiffin box delivery service was started by
Mahadeo Havaji Bacche.
• People recruited from villages who were not
able to earn a good living.
• Engaged in transport of lunch boxes from
home to office.
• Daily 4000-5000 dabbawallas carry 1,75,000 –
2,00,000 tiffin boxes everyday.
13. • Average Literacy- 8th grade schooling
• Means of Transport- Local Railways & bicycles
The silver bicycles of
the Mumbai dabbawalla's
The crate of tiffin boxes
14. INDIAN COMPANIES APPLYING 6 SIGMA
HINDUSTAN TIMES WHIRLPOOL
TATA STEEL LG
TELCO ASIAN PAINTS
TCS VIP INDUSTRIES
RELIANCE MUMBAI DABBAWALA
TVS SUZUKI
PIDILITE INDUSTRIES
ICICI BANK LTD
WIPRO
BHARTI
17. Six Sigma Project Methodology
Define Measure Analyze Improve Control
Identify, Collect data Analyze data, Improveme Establish
evaluate and on size of the establish and nt strategy standards to
selected confirm the “ Develop maintain
select problem, vital few “ ideas to process;
projects for identify key determinants remove root Design the
improveme customer of the causes controls,
nt requirements, performance. Design and implement
Determine carry out and monitor.
key product Validate experiments Evaluate
Set goals and process hypothesis , financial
characteristic. Optimize impact of the
Form the process. project
teams.
19. Define Phase: design goals that are
consistent with customer demands
and the enterprise strategy.
Measure Phase: Identify and
measure CTQs (characteristics that
are critical to quality), product
capabilities, production process
capability, and risks.
20. Analyze Phase: Analyze, develop and
design alternatives, create a high-
level design and evaluate design
capability to select the best design.
Design Phase: Design the details,
optimize the design, and plan for
design verification. This phase may
require simulations
21. Verify Phase: Verify the design, set
up pilot runs, implement the
production process and hand it
over to the process owners.
22. DMAIC V/S DMADV
• DMAIC is used for projects aimed at
improving an existing business process.
• DMADV is used for projects aimed at
creating new product or process designs.
23. Key Roles for Six Sigma
Master black Belt
Black Belts
Green Belts
Yellow belt
White belt
Team members
24. Master Black Belt
Master Black Belts, act as in-house
coaches on Six Sigma. They devote
100% of their time to Six Sigma. They
guide Black Belts and Green Belts.
Apart from statistical tasks, their
time is spent on ensuring consistent
application of Six Sigma across
various functions and departments.
25. Master black belt should have
• Two-plus years of Black Belt experience
• Five-plus years of business experience
• Mastery of the tools of Six Sigma process improvement
(DMAIC),
• Completion of at least five Black Belt projects with significant
business results
• Experience in managing cross-functional projects, strong
ability to lead others without direct authority
• Strong change management skills
• Experience in delivering Black Belt and Green Belt training
• Ten or more Black Belts or Green Belts coached to successful
project completion and certification
• Excellent written and verbal communication and
presentation skills
26. Black Belts
Black Belts operate under Master
Black Belts to apply Six Sigma
methodology to specific projects.
They devote 100% of their time to Six
Sigma. They primarily focus on Six
Sigma project execution, whereas
Champions and Master Black Belts
focus on identifying
projects/functions for Six Sigma
27. Black belt should have
• He should have experience of 1-2 yr and
carried out 4-8 projects
• He must be expert in problem
solving,data collection and analysis.
• He must be organizational savvy.
• He must focus on leadership and
understanding of administrative system
and processes.
28. Green Belts
• Green Belts are the employees who take up
Six Sigma implementation along with their
other job responsibilities, operating under the
guidance of Black Belts.
29. Green belt should have
• Operates in support of or under the supervision of a
Six Sigma of Black Belt.
• Analyses and solves quality problems.
• Involved in quality improvement projects.
• Participated in a project, but has not led a project.
• Has at least three years of work experience.
• Has ability to demonstrate their knowledge of Six
Sigma tools and processes.
30. Who are Implementing Six Sigma
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, Europe, Sub Continent
30
31. Six Sigma Results
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
•Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %
•For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million.
•Investment: salary of in house experts, training, process redesign.
31
32. What Makes Six Sigma Different?
Versatile
Breakthrough improvements
Financial results focus
Process focus
Structured & disciplined problem solving
methodology using scientific tools and
techniques.
Customer centered
Involvement of leadership is mandatory.
Training is mandatory
32
33. Benefits of Six Sigma
Generates sustained success
Sets performance goal for everyone
Enhances value for customers;
Accelerates rate of improvement
Executes strategic change
33
34. Six Sigma Certification
Six Sigma certification given to organistion by:-
1. Institute of Industrial Engineer.
2. American Society for Quality.
Six Sigma certification given to Individual by:-
1. ISO 2000(international standard organisation)
2. COPC (customer operation performance
center)
3. CMMI (capability maturity model integration)
4. ISL( institution of sigma learning)
