SIX SIGMA

How Six Sigma Delivers Value to its Customers

It was in the mid-80s that Six Sigma emerged as an innovative approach towards improving processes and
reduce wastage in manufacturing sector. Today, with widespread adoption of Six Sigma across industry
verticals, there are many professionals who are trained in various Lean and Six Sigma methodologies to
achieve far better results and higher customer satisfaction levels.

HISTORY OF

SIX SIGMA
→ It was in 1985 that Bill Smith an Engineer who noticed a correlation of a product’s market performance
with manufacturing adjustments
→ In 1987, he showcased this to the Motorola CEO Bob Galvin, and both developed a quality program
known as Six Sigma which aimed to reach 3.4 DPMO (Defects per Million Opportunities) standard
→ It was in 1992 that it gained real attention with Motorola’s tangible results, and this led to the creation of
Six Sigma research institute formed by Kodak, Digital, IBM, ABB, and Texas Instruments
→ In 1996, Jack Welch then took upon himself to promote Six Sigma in a big way with General Electric, and
became one of the pioneers in promoting the methodology
→ By 2005, close to 53% of Fortune 500 companies and 82% of Fortune 100 companies have used Six
Sigma to some extent
→ 2010 saw close 53.4% of manufacturing companies using Six Sigma
→ 1n 2011, 75% of quality improvement professionals across sectors started implementing Six Sigma

SIX SIGMA CULTURE

COST QUALITY TIMELINE DELIVERY
The first step here is to ‘understand and agreeing on what is the customer expectation with regards to
cost, quality, and timelines of delivery. Then continuously improve those processes to exceed customer’s
expectations.

The 5S System
As we all know how Lean concepts have seamlessly integrated with Six Sigma, now everybody use these
methodologies together to achieve far better results.

SORT SET IN ORDER SHINE

1 2 3
Arrange all the items that
Remove unnecessary Keep the work area
are easy to use, find, and
items from workspace neat and clean
to put away with

STANDARDIZE SUSTAIN
4 5
Create a consistent Create a habit of
approach for maintaining correct
repeatable processes procedures

Carry out the GEMBA Walks

GEMBA usually refers to a place where value is created in business; in man-
ufacturing the GEMBA is the factory floor, whereas in services GEMBA is
your work stations where business critical processes are carried out.

For any Six Sigma implementation to be a success, first you need to go and
find the problem areas, and this comes to the fore only through your
GEMBA walks. Then embrace scientific problem solving, focus on value
streams, and lead with humility.

Identifying 7 Types
of Wastes
1 Defects

2 Inventory
3 Over Production
4 Processing
5 Waiting
6 Conveyance
7 Motion

Six Sigma Professionals and

their Classifications
They have an understanding of overall application
and the language used in process improvement
White Belt

They are knowledgeable and contribute a lot to Six

Sigma projects and management activities
Yellow Belt
They form an essential part of a Six Sigma project
team in an organization and help implement pro-
cess improvement techniques
Green Belt

They are at an advanced level in terms of knowledge

gained and take up leadership and project manager
role all mixed into one
Black Belt
They form an integral part of the organization who
train, coach, strategize and take up training respon-
Master sibilities
Black Belt

IT

OPERATIONS FINANCE

Implement
Six Sigma to
the Entire
Organization

05
DESIGN SUPPY CHAIN

Benefits of Six Sigma

Methodology
• Process improvement strategies like Lean Six Sigma has saved
Fortune 500 companies more than 500 billion dollars
• Nearly 70% of U.S car manufacturers use Lean Six Sigma practices
• Amazon.com has over 4000 books on Lean manufacturing

DID YOU KNOW

Benefits of Lean Six Sigma
Thinking for Customers

7% 15% 20% 30% 50% 60% 75%

7% Improved accuracy in Freight Management
15% Increased Productivity
20% Saved by procuring Lean Manufacturing Equipment
30% of Shop Floor Savings
50% Reduction in Overhead Costs
60% Reduction in Time-to-Market (Products / Services)
75% Reduction in Inventory

Source: How Six Sigma Delivers Value to its Customers

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