WELCOME

Friends,
Lets start the
session with an
interesting
question

I am your constant companion

I am your greatest helper or heaviest burden
I will push you onward or drag you down to failure
I am completely at your command
Half of the things you do you might just as well turn
over to me and I will be able to do them quickly
and correctly
I am easily managed-you must merely be firm with
me
Show me exactly how you want something done and
after a few lessons I will do it automatically
Contd

I am servant of all great men: and alas, of all failures

as well.
Those who are great, I have made great.
Those who are failures, I have made failures
I am not a machine, though I work with all the
precision of a machine plus intelligence of a man
You may run me for profit or run me for ruin-it makes
no difference to me
Take me, train me, and I will place the world at your
feet. Be easy with me and I will destroy you.

Who
am
I
??????????

QUALITY

HABITS

Six Sigma
for
Global
Competitiveness

Background
The Six Sigma story began in the 1980s at
Motorola, where it was first developed and
proven. In 1983, reliability engineer Bill Smith
concluded that if a product was defective and
corrected during production, then other defects
were probably being missed and later found by
the customer. His point? If products were
assembled completely free of defects, they
probably wouldnt fail customers later
This is where Six Sigma took off.

Six Sigma is a problem solving

technology that uses the
human assets, data,
measurements and statistics
to identify the vital few factors
to decrease waste & defects
while increasing customer
satisfaction, profit &
shareholders value

Six Sigma is a statistical concept that

measures a process in terms of defects.
Achieving six sigma means your processes
are delivering only 3.4 defects per million
opportunities (DPMO) in other words they
are working nearly perfectly.
Six Sigma Quality is a think big strategy & is
a philosophy of management that focuses on
eliminating defects through practices that
emphasize understanding, measuring &
improving processes.

 It

is a statistical basis of
measurement ( 3.4 DPMO i.e.
defects per million opportunity)
A philosophy & a goal: as perfect as
practically possible.
A methodology
A symbol of quality.
It is not just statistical measurement,
it reflects organization culture

No confusion with TQM (Total

Quality Management). TQM is a
management approach that focuses
on the organization as a system with
an emphasis on teams, processes,
statistics, continuous improvement
and delivering product and services
that meet & exceed customers
expectation. Six sigma is a disciplined
extension of TQM..

Sigma level
(Process
capability)

Defects per
million
Opportunity
For centered
process

DPMO for
shifted (+/- 1.5
Sigma) process

308537

2700

66807

63

6210

0.57

233

0.002

3.4

It is interesting to note that most of the International Air Lines

luggage handling systems is operating at Three sigma level,
which indicates 94 % probability that you will get your luggage.
There are three important components that characterize a Sixsigma projects:
1. Critical to- Quality metric (CTQ): Elements of a process
that significantly affect the out put of that process.
Identifying these elements is vital to figuring out how to
make the improvements that can dramatically reduce costs
and enhance quality.
2. An actual cost associated with a defect affecting the CTQ
metric.
3. A specific time frame for eliminating the defect to attain CTQ
metric.

The six sigma five phase sequences: DMAIC.

Define: Determine the project goals & derivable to the
customer. (Internal & External).
Measure: Identify one or more product or service
characteristics, maps the processes, evaluate
measurement system and estimates baseline capability.
Analyze: Evaluate & reduce the variables with graphical
analysis & hypothesis testing & identify the vital few
factors for process improvement.
Improve: Discover variable relationship among the vital
few, establish operating tolerances & validates
measurements.
Control: Determine the ability to control the vital few
factors and implements process control systems.

Little Statistics.
Mean (arithmetic mean): the sum of a series of values
divided by number of values.
Median: Mid point in a series of Values.
Mode: Value that occurs most often in a series of values.
Range: Difference between the highest value and the
lowest value in a series of values,
Standard deviation: it measures variation of values from
the mean using the formula,
=

Lower specification Limit & upper specification limit ( LSL

& USL): First determine how much variation is acceptable
to customer.

The Statistics of Six Sigma

LSL

Three-sigma process

USL & LSL of the variable are +-3 sigma of the

mean

99.73% of all measurements will be within

specifications.
Conversely, 0.2% (or 2700 ppm will be outside LSL
specifications
Six-sigma process

USL & LSL are at +-6 sigma from target

and the process mean is centered at
target

0.0000002% (0.002 ppm) of the

measurements will be outside
specifications
LSL

PPM-parts per million

Six-sigma process with 1.5 sigma shift
Research indicates that the process mean
could drift by as much as 1.5 sigma
due to bad set-up, tool wear etc.

Specification Range

USL

Target =
3

Specification Range

USL

Target =
3
6
Specification Range

Target =
1.5

USL

Basic tools for six sigma

project
Checksheet : This is a list of check-off items
that permits quick and easy collection of data
in a simple, standardized format. Its a basic,
vital tool.
Histogram : This is a bar chart displaying the
frequency of data in subgroups or categories.
Brainstorming : This is a method of getting
people together to openly exchange ideas
and solutions for specific problems or
opportunities. All suggestions are recorded in
the meetings minutes, for possible use
immediately or later.

Contd

.Contd

Process mapping : This is a graphical view of your

process steps for a given situation. You map the steps
with boxes that show the work process in its entirety,
with inputs and outputs for each aspect documented. It
gives you an exact insight into a process flow.
Pareto chart: This is a bar graph breading down a
problem into the relative contributions if its components
named for Vilfredo Pareto, the Italian economist who
originated the 80/20 principle It identifies the vital few
elements that form 80% of the problem, so you can
focus on them and ignore the remaining 20%.
Run chart: This chart displays any given measurement
over a specified time sequence.
Cause-and-effect (fishbone) diagram: This diagram
is used to identify and classify caused of a given effect.

Working philosophy of six

sigma.
Proper definition and scope of
engineering or management
problems.
Conversion of an engineering or
management problems into a
statistical problem.
Seeking statistical solution of this
problem.
Conversion of statistical solution into
business or engineering solutions

The widely accepted quality improvement takeing

which offer drastic reduction in variability of
performance characteristics with respect to their
target values is known as:
Taguchi methods or taguchi techniques.
It uses statistically planned experiments to determine
settings for processes and parameters that reduce
performance variation and active use of
instrumentation to measure quality characteristics
(responses) based on signals.

The three key concepts of

Taguchi methods are :

Quality robustness
Target specification
Quality loss function and
signal-to-noise ratio studies.
Orthogonal array

The Six Sigma Team

The champion
Master Black Belt
Black Belt
Green Belt
White belt

Well-known
Global
Management &
Quality Tools

Benchmarking
Process of learning and improving by
adopting and adapting another
companys best practices/ global best
practices. A logical extension of
strategic planning.

Enterprise Resource
Planning
An effective client-server technologybased integrated resource planning of
the 5Ms of business namely, Men,
Money, Material , Method and
Machines according to the Market.

Five S
A systematic approach to a better and
cleaner workplace, The starting point of
any other continuous improvement
movement, viz. JIT,TPM,TQM, Kaizen.
Proper organization which eliminates
time spent on searching

Japanese
Version

English
Approximation

Description

Seiri

To sort out

Get rid of
untidiness

Seiton

To set in order

Seson

To shine/to
sweep

Organize the
workplace
Clean the
workplaces

Seiketsu

To standardize
and systematize

Apply standard
methods

Shitsuke

To sustain order

Maintain
discipline

Hoshin Kanri
A detailed planning mechanism to translate
corporate strategy i.e top-level long-term
measurable and operational objectives. A
system to bridge the gap between corporate
strategy, expressed as money and future
trends of market and operational strategy
expressed in what to make/do today. Active
use of SWOT (Strength, Weakness,
Opportunity,
Threat)
analysis
by
organization.

Hoshin Kanri
Active use of STEEP (Social,
Technological, Economical,
Environmental, Political) analysis to
asses business conditions. Planning
calendars for scheduling of activities.
Employee and customer feedback,
suggestions and criticism

Just in Time(JIT)
A production philosophy whose
objective is to produce quality goods, as
needed by customers, economically,
quickly and safely. An intelligent and
simplified way to address inventory in
purchasing production and distribution
pipelines. A system of achieving Zero
deviation from schedule.

Kaizen
Aligning company for continuous
improvement. A people based approach
which centers around process oriented
thinking. Bottom-up learning process, which
eventually permeates through the whole
organization. Kaizen is built on the premise
that the knowledge of how to improve the
workplace should come from the workplace
itself and not be imposed from outside.
Contd.

Kaizen is basically, small improvements

carried out by an employee in the course of
daily work. Checklists, active use of seven
quality tools, Pareto chart, cause and effect
diagram, histograms, control charts, scatter
diagram, check sheets, graphs, 5W1H(What,
When, Where, Whom, Why and How),
concept of Deming Wheel (PDCA) and Poka
Yoke methods

Kanban
1 A simplified and visible production
information
system,
which
controls
production, assembly, movement of
materials and inventory and each stage of
the
process,through
use
of
cards.tickets/tokens(called Kanban). A
simplified scheduling mechanism for
reducing inventories at all levels.

Knowledge Management
An IT enabled managerial approach to
understand, analyse, measure and
manage
intellectual
assets
of
companies and converting these into
market value.

Poka Yoke
A technique for avoiding human errors
at work and possible losses resulting
from them . A formidable tool for
achieving zero defect and eventually
eliminating quality control inspections.
Use 100% source inspection, Minimize
the time to carry out corrective actions,
set up mistake proofing devices(called
Poka Yokes)
Contd.

.viz, sensors, transducers limit

switches, metal detectors according to
products and process requirement.
Respect worker and operator. Cause
and effect diagrams. Root cause
analysis. Instrumentation calibration
techniques.

Project management
Application of knowledge,skills , tools
and techniques to all the activities of the
project in order to meet or exceed the
expectations of the project sponsor and
other stakeholders.

Quality circle
A small informal and homogeneous
group of 7-9 employees belonging to
the same work area, or doing similar
type of work, meting voluntarily and
regularly to identify, analyse and resolve
work related problems.

Quality function deployment

(QFD)
A five step, four phased mechanism to
translate loose customer requirements
into actual actionable technical
requirements of the company. An
approach which helps to produce better
and cheaper products in approximately
half the time.

Single Minute Exchange of

Die
A better approach then conventional
Economic Ordering Quantity (EOQ),
since EOQ does not consider cost of
quality, delivery time, material handling
and other wastes.

Supply chain management

Ability of the firm to work with its supplies
and supporting firms, like transportation to
the right price in the right quantity.

Theory of constraints
An approach which believes that
constraints/bottlenecks determine system
performance and hence should be handled most
carefully. A unique methodology for the analysis
of flow of materials from input to output stage
using VAT analysis, bills of material and part
routings, focusing on the bottlenecks. Scheduling
of bottlenecks to maximize throughput.

Total productivity
Maintenance
TPM is an approach with the core objective of
organising a workplace to prevent all losses and
achieve zero defects, zero breakdowns, zero
accident and zero pollution in the entire
production system life cycle. This is done by
involving all the employees covering the entire
organization in the form of small competing
teams, to establish corporate-wide culture
production efficiency.

Total Quality Management.

(TQM)
An integrated organizational approach, with the
core objective of customer delight, by meeting
their expectations on a continuous basis, through
total employees involvement working on a
continuous improvement basis in all products,
processes and services affecting customer
satisfaction along with proper problem solving
methodology in the most economic way.

Total Waste Reduction

( Muda Management)
It is a structured approach which focuses on
improving quality, productivity, timeliness,
flexibility, safety and even morale of
employees by utilizing the various methods
of work simplification, redesign of products
& processes & waste reduction/
eliminationcontd

.
Seven Wastes ( Toyota View)

Waste from producing defects

Waste in transportation
Waste owing to inventory
Waste from over production
Waste in waiting
Waste in processing
Waste in motions & efforts.

Value Engineering
An approach to serve customer needs by
redefining the problem & the solution,
retaining essential functional requirements
without compromising on performance and
quality while excluding non essential
features leading to cost reduction

Operation Management system

ISO 9001

OHSAS 18001

ISO14001

Production Quality
Customer Satisfaction
Continuous
Improvement

Hazard Identification

Environmental &
Pollution Control

And Risk Control