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Six Sigma A Strategy for Achieving World Class Performance

Purpose of Presentation

Share concepts and application of Six Sigma with a case study

Deployment of Six Sigma as a strategy to achieve World Class Performance

World Class Performance

 

With 99 % Quality

With Six Sigma Quality

Drinking

Almost 15 mins

Only 1 hour each

unsafe water

each day

month

Electricity

No electricity for almost 7 hrs

No electricity for 7 hrs each year

each month

Out of every

4100 crashes

Less than 2

500,000

crashes

computer

restarts



Sigma is a letter in the Greek Alphabet

What Is Six Sigma?

Degree of variation

Level of performance in terms of defects

Statistical measurement of process capability

Process improvement methodology

It is a Goal

Strategy for change

A commitment to customers to achieve an acceptable level of performance

Six Sigma Definitions

Business Definition

A break through strategy to significantly improve customer satisfaction by reducing variability in every aspect of business.

Technical Definition

A statistical term signifying 3.4 defects per million opportunities.

Performance Standards

Sigma Defects Per Million Rate of Level Opportunities Improvement 1  690,000 - 2  308,000
Sigma
Defects Per Million
Rate of
Level
Opportunities
Improvement
1 
690,000
-
2
308,000
2
times
3
66,800
5
times
4
6,210
11 times
5
230
27 times
6
3.4
68 times

Quote Time Defect Rate Waste On Time Delivery Inventory; Machine Utilization

• Quote Time • Defect Rate • Waste • On Time Delivery • Inventory; • Machine

Revenue Capital Utilization Return on Assets Profits

• Quote Time • Defect Rate • Waste • On Time Delivery • Inventory; • Machine

Strategically: Used by Leadership as a vehicle to develop sustainable culture of Customer, Quality, Value and Continuous improvement.

• Quote Time • Defect Rate • Waste • On Time Delivery • Inventory; • Machine

Operationally: By Quality Managers to reduce cycle times, costs, errors, rework, inventory, equipment downtime.

Deployment across all types of processes and industries - worldwide

Who is 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

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 Project Methodology

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

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

Benefits of Six Sigma

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

Thank you No questions please