Presented By:

SAJJAD ali sahito

128 th JMC

S i x S i g m a D e fi n i t i o n s
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.

Six Sigma

A scientific and practical method to achieve improvements in a

company

Scientific:
Structured approach.
Assuming quantitative data.
Show me
the money

Practical:
Emphasis on financial result.
Start with the voice of the customer.

Show me
the data

World Class
Performance
With 99 %
With Six Sigma
Quality

Quality

For every 300000

letters delivered

3,000 misdeliveries

1 misdelivery

For every week of TV

broadcasting per
channel

1.68 hours of dead air 1.8 seconds of dead

air

Out of every 500,000

computer restarts

4100 crashes

Less than 2 crashes

Who is Implementing Six

Sigma

B e n e fi t s o f S i x S i g m a

Generates sustained success

Sets performance goal for everyone
Enhances value for customers;
Accelerates rate of improvement;
Promotes learning across boundaries;
Executes strategic change

S i x S i g m a Re s u l t s
Company
Annual Savings
General Electric $2.0+ billion
JP Morgan Chase
*$1.5 billion
Motorola
$ 16 billion
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.

Where can Six Sigma be applied?

Service
Management

Design

Purchase

Administration

Six Sigma
Methods

Production

IT

Quality
Depart.
HRM

M&S

What Is Six Sigma?

Sigma is a letter
in the Greek
Alphabet

Degree of variation;
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

Six Sigma Demystified*

Six Sigma is TQM in disguise, but
this time the focus is:
Alignment of customers, strategy,
process and people
Significant measurable business
results
Large scale deployment of advanced
quality and statistical tools
Data based, quantitative
*Adapted from Zinkgraf (1999), Sigma Breakthrough
Technologies Inc., Austin, TX.

Sigma
Level

Defects Per
Million
Opportunities

Rate of
Improvement

690,000

308,000

2 times

66,800

5 times

6,210

11 times

230

27 times

3.4

68 times

Introduction
Six Sigmais a set of techniques, and tools for
process improvement. It was developed byMotorolain
1986.
Sir Bill Smith, the Father of six sigma introduce
this quality
improvement Methodology to Motorola.
Six Sigma is now an enormous 'brand' in the world of
corporate
development.

Histo
ry

Since the1920'sthe word sigma has been used

by
mathematicians and engineers as a symbol for a
unit of
Measurement in product quality variation.
In themid-1980'sengineers in Motorola in the USA
used
Six Sigma(S) aninformal name for an in-house
initiative for reducing defects in production
processes, because it represented a suitably high level
of quality.

Father of Six Sigma

Sir Bill Smith

the Father of six sigma

Six Sigma Objectives

Overall Business
Improvement
Six Sigma methodology focuses on
business improvement. Beyond reducing
the number of defects present in any given
number of products.
Remedy Defects/Variability
Any business seeking improved numbers
must reduce the number of defective
products or services it produces. Defective
products can harm customer satisfaction
levels.

Reduce Costs
Reduced costs equal increased profits. A
company implementing Six Sigma principles
has to look to reduce costs wherever it
possibly can--without reducing quality.

Improve Cycle Time

Any reduction in the amount of time it
takes to produce a product or perform a
service means money saved, both in
maintenance costs and personnel wages.
Additionally, customer satisfaction
improves when both retailers and end
users receive products sooner than
expected. The company that can get a

ncrease Customer Satisfaction

Customer satisfaction depends upon
successful resolution of all Six Sigmas
other objectives. But customer satisfaction
is an objective all its own.

Learning Curve

Methodologies
Six Sigma projects follow two project methodologies:

These methodologies, composed of five

phases.

1. DMAIC
The DMAIC project methodology has
Five
1. phases:
Define
2.
Measur
e
3.
Analyze
4.
Improve
5.
Control

1.Define
Define the system, the voice of the
customer and
their requirements, and the project
goals, specifically.
2.Measure
Measure key aspects of the current
process and
collect relevant data.

3.Analyze

Analyze the data to investigate and

verify cause-and
effect relationships. Determine
what the
relationships are, and attempt to
ensure that all
factors have been considered. Seek
4.Improve
out root cause
of the
under
Improve
ordefect
optimize
the investigation.
current
process based upon
data analysis using techniques
such asdesign of
experiments,poka yokeor
mistake proofing,
and standard work to create a
new, future state

5.Control
Control the future state process
to ensure that any
deviations from target are
corrected before they
result in defects.
Implementcontrol systemssuch
asstatistical process control,
production boards,
visual workplaces, and
continuously monitor the
process.

2.
DMADV
DMADV project methodology has
Five
1.phase:

Define
2.
Measur
e
3.
Analyze
4.
Design

5. Verify

1.Define :
Define design goals that are
consistent with
customer demands and the
enterprise strategy.
2.Measure
Measureand identify CTQs
(characteristics that
areCriticalToQuality), product
capabilities,
production process capability, and
risks.

3.Analyze
Analyzeto develop and design
alternatives.

4. Design
Designan improved alternative,
best suited per
analysis in the previous step

5. Verify
Verifythe design, set up
pilot runs,
implement the production
process and
hand it over to the process
owner(s).

Implementation roles
Six Sigma identifies several key roles for its successful
implementation:-

oExecutive Leadership, includes the CEO and other

members of top management. They are responsible for
setting up a vision for Six Sigma implementation.
oChampions, take responsibility for Six Sigma
implementation across the organization in an
integrated
manner
oMaster Black
Belts, identified by champions, act as
in-house coaches on Six Sigma. They devote 100% of
their time to Six Sigma. They assist champions and
guide
Black
Belts and Green
oBlack
Belts,operate
underBelts.
Master Black Belts to apply
Six Sigma methodology to specific projects.
oGreen Belts,are the employees who take up Six
Sigma implementation along with their other job
responsibilities, operating under the guidance of Black

Conducting projects
Traditional

-Project leader is obliged to

make an effort.
-Set of tools .
-Focus on technical knowledge.
-Project leader is left to his own
devices.
-Results are fuzzy.
-Safe targets.
-Projects conducted on the
side.

Six Sigma

-Black Belt is obliged to

achieve financial results.
-Well-structured method.
-Focus on experimentation.
-Black Belt is coached by
champion.
-Results are quantified.
-Stretched targets.
-Projects are top priority.

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