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    INTRODUCTION TO

    SIX SIGMA

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    What is Six Sigma?

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    Six Sigma is a philosophy;

    one of making fewer and fewer mistakes in

    everything we do - from the way we

    manufacture products to the way we fill out apurchase order.

    As we discover and eliminate harmful sources

    of variation, our process capability improvesand the defects (mistakes) go away.

    WHAT IS SIX SIGMA?

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    WHAT IS DEFECT?

    1 2 3 4

    CUSTOMERSProcess Steps

    INPUTS

    Business Organization

    Products& Services

    Payment5

    Business Results:

    Revenue, Profit, Cash Flow,

    Shareholders

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    WHAT IS DEFECT?

    Failure to meet the

    Standard of Performance.

    Output of process in Time Sequence Output of processes in Time sequence

    Failure to challenge the

    Standard of Performance.

    Y Y

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    WHAT IS DEFECT?

    Big Ys:Revenue (Y1)

    Profit (Y2)

    Cash Flow (Y3)

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    WHAT IS DEFECT?

    Big Y vs Small Ys:

    Profit (Y 2)

    Cost per Unit

    (Y 2.1)Realisation per

    Unit (Y 2.2)

    Fixed

    Costs

    (Y 2.1.1)

    Variable

    Costs

    (Y 2.1.2)

    Existing

    Customers

    (Y 2.2.1)

    New

    Customers

    (Y 2.2.2)

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    WHAT IS DEFECT?

    Big Yvs Small Ys:

    Cash Flow (Y 3)

    Inventory

    (Y 3.1)

    Payables

    (Y 3.3)

    Stores

    (Y 3.1.1)

    FGI

    (Y 3.1.3)

    Receivable

    (Y 3.2)

    WIP

    (Y 3.1.2)

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    5004003002001000

    400

    350

    300

    Observation Number

    Individu

    alValue

    Chart for OUTPUT/Hr.

    1 1 1

    1

    1

    1111111

    1

    1111

    11

    111

    11

    1

    1

    11111111

    1

    1

    11111

    11111

    1

    1

    1

    1

    111111

    11

    11111

    111

    1111111 11111

    11111111

    1111

    1

    11111111

    1

    1

    111

    1

    111111111

    1

    111

    1

    11111

    11111

    1

    111111

    1

    111111 1

    1

    1 1 11

    11

    1111111

    Mean=340.4

    UCL=357.7

    LCL=323.2

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    Six Sigma is a Statistical Measurement

    Sigma Rating of a Process is measure of

    Goodness of a process w.r.t. its ability to meet

    the Standard of Performance.

    Higher is the Sigma Level of a process, better

    is its ability to meet the Standard of

    Performance and hence fewer and fewer

    defects .

    WHAT IS SIX SIGMA?

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    SIGMA RATING AND LEVEL OF DEFECT

    Sigma Rating Defect(ppm) Yield(%)1 690,000 30.92 308,537 69.2

    3 66,807 93.2

    4 6,210 99.4

    5 233 99.98

    6 3.4 99.9997

    ppm: Parts per million

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    Six Sigma is a statistical measurement

    The Sigma Rating allows us: To draw comparisons between similar or

    dissimilar products, services and processes.

    To see how far ahead or behind we are.

    To set the target for Process improvement

    To gauge our pace in the race for total customer

    satisfaction.

    WHAT IS SIX SIGMA?

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    Three Sigma would be equivalent to one misspelled

    word per 15 pages of text.

    Six Sigma would be equivalent to one misspelled

    over 300,000 pages, quite a difference indeed.

    Three Sigma versus Six Sigma

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    SHOULD ALL PROCESSES BE

    AT SIX SIGMA?

    The airline fatality rate is about 6.5

    sigma, but airline baggage handling isabout 4 sigma

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    Six Sigma as a Business Strategy

    WHAT IS SIX SIGMA?

    Sigma Rating

    Customer

    Satisfaction

    Costs

    Customer Value

    Shareholder Value

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    Basic Tenets of Six Sigma

    Customer Orientation

    Process OrientationSpeak with facts

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    NO COMPANY MAKES MONEY INSIDE

    THE ORGANISATION

    EVERYTHING DONE INSIDE THE COMPANY IS

    COST

    ONLY WHEN THE COMPANY GOES OUTSIDE ITHAS AN OPPOURTUNITY TO MAKE MONEY

    SO, WHAT IS THEREAL PURPOSEOF BUSINESS ?

    Customer Orientation

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    THE REAL PURPOSE OF BUSINESS IS:

    TO FIND CUSTOMERS

    SUCCESS IN FINDING THEM

    AND SATISFYING THEM

    IS MEASURED BY THE

    PROFITS

    WE MAKE

    Customer Orientation

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    The best six sigma project begin not inside thebusiness but outside it, focused on answeringthe question - how can we make the customer

    more competitive? What is critical to thecustomers success?..

    One thing we have discovered with certainty isthat anything we do that makes the customermore successful inevitably results in a financialreturn to us.

    Jack Welch

    Customer Orientation

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    C

    U

    ST

    O

    M

    ER

    MARKETING ENGINEERING

    PROCUREMENT

    MANUFACTURINGDESPATCH

    Every Organization is like a Relay Race

    Customer Orientation

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    Focusing on the Inside will hurt ...

    Customer Orientation

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    COMPETITIORS

    Capital

    Market

    LaborMarket

    Suppliers

    ENVIRONMENTAL INFLUENCES (Government, Economy, Culture)

    Process orientation

    C

    U

    ST

    O

    M

    E

    R

    S

    Business OrganizationAcquire

    Order

    Execute

    Order

    Deliver

    Order

    Support Processes:

    Leadership

    HR

    Finance, etc.

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    Enabler

    WorldClass

    Contenders

    Wont go the

    Distance

    Punch Bag Promising

    60%

    0%60% 100%

    80%

    80% 100%

    Process orientation

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    Functional Silos

    QCD QCD QCD QCD

    Marketing Engineering Production Dispatch

    Process orientation

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    Functional Silos

    QCD QCD QCD QCD

    Marketing Engineering Production Dispatch

    Customer

    Process orientation

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    INDENTOR

    /US

    ER

    PURC

    HASE

    STO

    RES

    PROCUREMENT PROCESS

    RightQuality

    Quantity

    Price

    Time

    FUNCTIONAL vs PROCESSTARGET

    Process orientation

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    Process Measures

    Marketing Engineering Procurement Manufacturing Sales

    Customer

    CustomerM1-E= EXT/CR MEASURESM1-I = INT/BUSINESS MEASURESM2 = SUB-PROCESS MEASURESM3 = KEY PROCESS STEP MEASURES

    M1-I

    M1-E

    M2

    M2

    M3 M3M2

    Process orientation

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    S k ith F t

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    IN GOD WE BELIEVE,

    FOR EVERYTHING ELSE

    BRING DATA

    Speak with Facts

    S k ith F t

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    DATA COLLECTION:

    What?

    How?

    How much?

    Depends on OBJECTIVE of Data?

    Speak with Facts

    S k ith F t

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    DATA COLLECTION: OBJECTIVE?

    Know current Status

    Investigate / Experiment

    Control for future

    Speak with Facts

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    What is Six Sigma?Proven benefits of Six Sigma system are diverse,

    Including:

    Cost reduction

    Productivity improvement

    Market share growth

    Customer retention

    Cycle -time reduction

    Defect reduction

    Culture change, etc.

    Genius of the And

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    YearRevenue

    ($B)

    Invested

    ($B)

    %RevenueInvested

    Savings

    ($B)

    %RevenueSavings

    1996 79.2 0.2 0.3 0.2 0.2

    1997 90.8 0.4 0.4 1 1.1

    1998 100.5 0.5 0.4 1.3 1.2

    1999 111.6 0.6 0.5 2 1.8

    Six SigmaCosts and Savings at GE

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    Allied Signal

    Allied Signal, which was on the verge of bankruptcy was made

    profitable by CEO Larry Bossidy through Six Sigma.The company implemented Six Sigma program in 1994. The

    cumulative impact on the savings in the direct costs during this

    period (till 1999) was more than US$ 2 billion

    Asea Brown Boveri

    ABB, after application of Six Sigma has reduced

    equipment error by 83%. The company also made drasticimprovements in material handling resulting in an annual

    estimated cost savings of US $775000.

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    Johnson & Johnson

    Reported in its respective annual reports that Six Sigmasaved $200 million in 1999, $350 million in 2000, and $500

    million in 2002.

    Ford Motor Company

    On its website reported that its customer driven 6-sigma

    initiative contributed more than $52 million to the bottom

    line in 2000, its inaugural year , with the expectation of

    delivering another $200 million by the time the 2002annual report was published.

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    Honeywell

    Honeywell states on its website thatSix Sigma projects have saved $500Million in 1998, $500 Million in 1999

    and $700 Million in 2000.

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    PROJECT BY PROJECT APPROACH

    A PROJECT IS A PROBLEM CHOSEN FOR

    SOLUTION.

    ALL IMPROVEMENT IS MADE PROJECT BY

    PROJECT AND IN NO OTHER WAY.

    WHATEVER IS NOT A PROJECT WILL NOT

    GET IMPROVED.

    JM JURAN

    METHODOLOGY

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    METHODOLOGY

    Identify Six Sigma

    Projects

    Carryout Six SigmaProjects

    Integration with Business

    Planning Process

    Institutionalization

    Management Team Buy-in

    Creating Organization

    for Six Sigma

    Training People on SixSigma

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    ORGANIZATION

    FOR SIX SIGMA

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    Management Team

    The CEO should be the main driver of the Six Sigma program.

    Under him departmental / functional heads have to take

    charge in implementing the program. They are called Six

    Sigma Champions

    The Champions must have knowledge on applications and

    interpretation of statistical tools.

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    Six Sigma Black Beltworks with:

    The resolve toattain

    greater heights

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    Six Sigma Black belts believe that

    Standardsexist to be

    superseded

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    SIX SIGMA ORGANIZATION

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    SIX SIGMA ORGANIZATION

    Six Sigma project Teams Owned byChampions and led by Black Belts

    Responsibilities of CHAMPION as Sponsor

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    of Six Sigma project:

    Ensuring that resources are available for training and projects

    Participating in project reviewParticipating in Project selection and scoping

    Providing Strategic direction to the project team

    Staying informed about the teams progress

    Helping the Black Belt overcome road-blocks

    Keeping the team focused on the desired result

    Redirecting the teams activities, if unanticipated events occur

    Keeping the Management Team informed

    Being accountable for the results.

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    Understandsthe BigPicture of the business.

    Understands clearly where Cost is incurred and where

    Value is added.

    An expert in application ofprocess improvement tools.

    Capable ofconsulting, mentoring and coaching.

    Drives change by challenging conventional wisdom.

    CHARACTERISTICS OF SIX SIGMABLACK BELT

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    ROLES OF A SIX SIGMA BLACK BELTMentoring:Cultivate a network of local Six Sigma individuals

    at the local organization or site.

    Teaching: Provide formal training of local personnel in newstrategies and tools

    Coaching:Provide a one-on-one support to local personnel

    Transferring:Pass on new strategies and tools in the form of

    training, workshops, case studies, local symposia, etc. Discovering:Finding application opportunities for Six Sigma

    strategies and tools, both internal and external (e.g., suppliersand customers)

    Identifying: Surfacing business opportunities throughpartnerships with other organizations

    Influencing:Selling the organization on the use of Six Sigmastrategies and tools

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    Master Black Belts - Responsibilities

    The Master Black Belts should take the mainresponsibility of implementing Six Sigmaprogram.

    They must assist the organization in identifyingSix Sigma projects and also develop and trainBlack Belts under them.

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    TRAINING PEOPLE

    FOR SIX SIGMA

    WHAT MADE SIX SIGMA

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    WHAT MADE SIX SIGMA

    SUCCESSFUL AT GE

    Quotes from GE Annual Report 1997

    GE had a huge advantage that accelerated our quality

    efforts: we had a Company that was open to change,

    hungry to learn and anxious to move quickly on a good

    idea.

    Six Sigma is quickly becoming part of the genetic code of

    our future leadership

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    CHAMPION CERTIFICATION

    Successful completion of Class-room training

    +

    Successful completion of at least One High

    impact Six Sigma Project in his work-area.

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    BLACK BELT CERTIFICATION

    Class Room Training ( Phase 1)6days

    Carry out Six Sigma Project12 weeks (app.)

    Class Room Training ( Phase 2)6daysContinue Six Sigma Project12 weeks (app)

    Evaluation and Certification

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    Attendance during Class room training Phase 1 and 2

    Faculty assessment during the training

    Obtaining Qualifying Marks in the Tests during training

    Successful completion of the Project

    Evaluation of learning from project by expert

    -

    EVALUATION CRITERIA

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    How to identify Six

    Sigma Projects?

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    IDENTIFY SIX SIGMA

    PROJECTS

    Six Sigma Project Identification Process depends

    on the Objective of implementing Six Sigma:

    Strategic Improvement

    Problem Solving.

    IDENTIFY SIX SIGMA PROJECTS

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    IDENTIFY SIX SIGMA PROJECTS

    Problem Solving:

    Fixes specific areas of high cost, rework,delays, Customer Complaints.

    With an urgency of results driving nearly everysix sigma start-up, most organizations choose

    to jump on this objective.

    Only problem solving can not bring highimpact on Business as there is always a dearthof problem after some time.

    IDENTIFY SIX SIGMA PROJECTS

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    IDENTIFY SIX SIGMA PROJECTS

    Strategic ImprovementTargets key strategic or operational

    weaknesses or opportunities.Strategic improvement effort lead to fewer key

    improvement projects with each project

    creating high business impact.

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    Existing New

    Customers

    Product

    Existing

    New

    Problem

    Solving

    VOC

    Product

    modifications

    Marketing

    New applications

    R&D

    Time to

    market

    Strategic Projects

    QFD FOR PROJECT IDENTIFICATION

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    WHAT

    (Voice ofCustomer)

    HOW(Product/ Service

    Specification)

    RELATIONSHIPMATRIX

    Ranked Hows

    WHAT

    (Ranked Product/

    service Specification)

    HOW(Process Stages)

    RELATIONSHIP

    MATRIX

    Ranked Hows

    (Voice of Customers)

    QFD FOR PROJECT IDENTIFICATION

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    WHAT

    (Voice of

    Shareholders)

    HOW

    (Process Stages)

    RELATIONSHIP

    MATRIX

    Ranked Hows

    (Voice of Shareholders)

    SELECTING HIGH IMPACT

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    SELECTING HIGH IMPACT

    PROJECT

    LOW HIGH

    CUSTOMER IMPACT

    Priority-1

    Priority-2

    Priority-3

    Priority-4

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    CATEGORIES OF CUSTOMERS

    1 WEAVING USE 40%

    2 KNITTING USE 30%

    3 INDUSTRIAL END USE 30%

    RELATING CUSTOMER REQUIREMENTS TO

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    RELATING CUSTOMER REQUIREMENTS TO

    INTERNAL MEASURES

    Sr.no Customer

    Requirements

    Quality parameters / Measures

    Count

    Variation

    Uster (%) Yarn

    Strength

    Elongation IPI Yarn

    Hairiness

    Length in

    Cone

    Whitenes Knot/Splic T.P.I.

    1 Uniform Fabric 8 9 3 3 3 3 3 3

    2 Fabric Strength 6 3 9 3 1 3

    3 Productivity 5 9 3 3 3 3

    4 Less Wastage 5 3 9

    WEIGHTED RATING 90 24 114 15 24 57 60 24 45 42

    Degree of

    importance

    (Scale 1 to 9)

    Very important: 9

    Somewhat important: 3

    Low effect: 1

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    PROCESSES & THEIR EFFECTSr.no. Quality Measures Rating Sub processes & their effect on quality measures

    Fibre BlowRoom

    Carding Drawing Simples RingSpinning

    Winding ParallelWinding

    Doubling&

    Twisting

    FinalInspectio

    n &

    Packing

    1 Count Variation 90 1 3 9 3 9

    2 Uster 24 1 3 3 9

    3 Yarn Strength 114 9 3

    4 Elongation 15 9 3 3

    5 IPI 24 9 3 3

    6 Hairiness 57 9 3 3

    7 Length in cones 60 3 3 9 9

    8 Whiteness 24 9 3

    9 Knot /Splice 45 9 3 9

    10 T.P.I. 42 3 9

    PROCESS RATING 1,377 162 1,062 1,062 342 2,178 1,188 675 999

    PRESENT SIGMA LEVELStage Sub process Checks Specification Limits Observed Performance for Oct'01 Cp Cpk Sigma

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    g

    no.

    p p p p g

    Level

    USL LSL Avg. S.D. Max Min

    1 Fibre Moisture (%)

    2 Blow Room Blend Variation 67.00 66.00 66.40 0.067 66.68 66.24 2.64 2.14 6.42

    3 Carding Wrapping Cv

    Uster (%)

    4 Drawing Wrapping Cv 0.18 0.12 0.15 0.014 0.18 0.12 0.73 0.71 2.13Uster (%) 2.30 1.90 2.13 0.043 2.27 2.06 1.62 1.40 4.20

    5 Simplex Wrapping Cv

    Uster (%) 3.50 2.90 3.22 0.091 3.44 3.04 1.03 0.96 2.88

    6 Ring Spinning Count Cv 1.60 1.00 1.35 0.092 1.56 1.26 1.02 0.98 2.94

    Uster (%) 9.70 8.50 9.13 0.174 9.74 8.65 1.15 1.10 3.30

    I.P.I.

    Hairiness 4.50 3.50 3.97 0.216 4.50 3.53 0.77 0.73 2.19

    Strength 19.00 17.00 18.15 0.601 19.31 17.11 0.83 0.75 2.25

    Elongation 14.00 11.00 11.93 0.677 13.67 11.04 0.74 0.46 1.38

    7 Winding I.P.I.

    Uster (%) 10.50 9.00 9.64 0.205 10.05 9.20 1.22 1.04 3.12

    Hairiness 6.00 4.40 5.26 0.302 5.80 4.74 0.88 0.82 2.46

    Yarn Strength 18.50 15.50 17.70 0.613 18.30 16.31 0.82 0.67 2.01

    Length in cone

    Elongation 12.50 10.50 11.68 0.590 12.64 10.40 0.56 0.46 1.38

    8 Parallel winding Knot/Splice Str.

    Length

    9 Doubling &

    Twisting Knot StrengthHairiness 8.50 7.10 7.76 0.280 8.35 7.13 0.83 0.79 2.37

    TPI

    Strength 19.50 16.50 18.17 0.560 19.10 17.14 0.89 0.79 2.37

    Elongation 15.00 12.50 13.77 0.484 14.82 12.90 0.86 0.85 2.55

    Uster (%) 8.30 7.30 7.82 0.176 8.18 7.53 0.98 0.94 2.82

    10 Final Inspection Visual

    11 Packing Wt. Of carton

    Average: 2.75

    Project selectionHi h i t d L Si L l h t i ti

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    Stage no. Importance Sub process Checks Sigma

    Level

    1 1377 Fibre Moisture (%)

    2 162 Blow Room Blend Variation 6.423 1062 Carding Wrapping Cv

    Uster (%)

    4 1062 Drawing Wrapping Cv 2.13

    Uster (%) 4.20

    5 342 Simplex Wrapping Cv

    Uster (%) 2.88

    6 2178 Ring Spinning Count Cv 2.94

    Uster (%) 3.30

    I.P.I.

    Hairiness 2.19Strength 2.25

    Elongation 1.38

    7 1188 Winding I.P.I.

    Uster (%) 3.12

    Hairiness 2.46

    Yarn Strength 2.01

    Length in cone

    Elongation 1.38

    8 675 Parallel winding Knot/Splice Str.

    Length9 999 Doubling & Twisting Knot Strength

    Hairiness 2.37

    TPI

    Strength 2.37

    Elongation 2.55

    Uster (%) 2.82

    High importance and Low Sigma Level characteristics are

    selected as Improvement projects

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    Customer Voice

    Priority

    BundleTenacity

    Condition

    Tenacity

    Condition

    Elongation

    LongFibre'S'

    LongFibre(M+P)

    Spg.Faults-Free

    Bales(G+R)

    Denier

    Whiteness

    Brightness

    OPU

    Nepspergram

    ShortFibre

    .

    Moist.Range(11-

    13OTIF

    Timetakento

    resolvecomplaint

    O O O

    CSP 10 9 9 3 1 1 1 3 1 1 3 3 1 3 - -

    Shade Variation 9 1 1 1 1 1 1 1 9 9 1 1 1 3 3 3

    Imperfection 8 3 3 3 3 3 3 3 1 1 3 9 3 3 - -

    Yield 7 3 3 3 3 3 3 1 1 1 3 3 3 9 - -

    Delivery 8 - - - - - - - - - - - - - 9 3

    After Sales service 9 - - - - - - - - - - - - - 3 9

    Total - 144 144 84 64 64 64 70 106 106 84 132 64 144 126 132

    PROJECT IDENTIFICATION FROM VOICE OF CUSTOMER

    Product

    Specification

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    PROCESSES /

    PRODUCT

    SPECIFICATIONPRIORITY

    Order

    Processing

    RM

    procurement

    Viscose

    Preparation

    CS2/Acid

    Preparation

    Spinning

    After

    Treatment

    Drying

    Baling&

    packing

    Recovery

    Steam&

    power

    Storage&

    Despatch

    ETP&WTP

    Invoice&

    Accounting

    Maintenance

    Storage&

    issue

    Skill

    1 Bundle Tenacity 1449 9 9

    2 Condition tenacity 144

    9 9 93 % Prodn. In Moist.

    Range (11-13)

    144

    9 3

    4 Time taken to

    resolve complaint

    132

    3 3

    5 NEPS per gram 1323 3

    2592 2592 396 1692 2592 432 396 396

    PRIORITISATION INDEX FOR SIX SIGMA PROJECT

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    MAPING THE

    VOICE OFSHAREHOLDER

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    VOICE OF SHAREHOLDER Priority

    Raw

    Materials

    Stores

    Items

    Raw

    Materials

    Stores

    ItemsMachine

    Man

    Power

    1 Raw material Consumptio 10 9 9 9 1 1 1 1 1

    2 Steam Consumption 10 9 3 3 1 1 1 1 1

    3 Power Consumption 10 9 3 3 1 1 1 1 1

    4 Stores Consumption 8 1 1 1 9 1 3 3 1

    5 Repairs to Machinery 6 1 3 1 3 1 3 3 1

    6 Over Time 3 1 1 1 1 1 1 1 1

    7 Employee Cost 3 1 1 1 1 1 1 1 9

    8 Admn. Expenses 1 1 1 1 1 1 1 1 1

    9 Selling Expenses 1 1 1 1 1 1 1 1 110 Interest 3 1 1 1 1 3 1 1 1

    11 Depriciation 1 1 1 1 1 1 1 1 1

    RELATIVE IMPORTANCE 296 188 176 132 62 84 84 80

    Improvement in

    Consumption

    Ratios

    Reduction in

    Purchase Cost

    Increase in

    Productivity

    PRIORITISATION INDEX FOR SIX SIGMA PROJECT

    Reduction

    in

    Equipment

    Down time

    Reductio

    n in

    Working

    Capital

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    PROCESSES /

    PRODUCT

    SPECIFICATIONPRIORITY

    Order

    Processing&

    Prodn.planning

    RM

    procurement

    Viscose

    Preparation

    CS2/Acid

    Preparation

    Spinning

    AfterTreatment

    Drying

    Baling&

    packing

    Recovery

    Steam

    &power

    Generation

    Storage&

    Despatch

    ETP&WTP

    Invoice&

    Accounting

    Maintenance

    Storage&issue

    Skill

    Information

    System

    1 Reduction in RM consumption Ratios

    CS Lye 10 9 1 3

    Steam 10 3 1 9 1 9 9Power 10 9 9 9 9 9 1 9

    Coal 10 92 Reduction in Purchase cost of RM

    CS Lye 5 9

    Sulphur 5 3

    Charcoal 5 33 Reduction in Working Capital

    Steam Coal 3 9

    Stores SparesInventory (FM)

    3 9

    RM Inventory 3 3

    75 210 100 190 100 180 10 210 90 63

    G R A S I M

    GRASILENE DIVISION : HARIHAR

    PRIORITISATION INDEX FOR SIX SIGMA PROJECT

    SIX SIGMA PROJECT - STEPS

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    SIX SIGMA PROJECT - STEPS

    There are 5 fundamental steps involved inapplying the breakthrough strategy for achieving

    Six Sigma.

    Define

    Measure

    Analyze

    ImproveControl

    DMAIC

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    Develop Business case and Team charter

    Map the Current Process

    Listen to the Voice of Customer

    Define the Scope and Purpose

    Define the boundaries

    Expected resource needs

    Project Timeline

    DEFINE

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    Collect baseline data that pinpoints problem location and

    occurrence

    Develop a sampling strategy

    Validate your measurement system

    Determine Process Capability and Sigma Level

    Learn concepts and tools needed to collect reliable and

    accurate data A focused problem statement

    MEASURE

    ANALYZE

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    Process door Vs Data door

    Identify potential causes ( Y= f (X1, X2, X3, Xn))

    Create detailed process map and do value-added flow

    analysis

    Find, change in which Xs affect Y and in what manner,

    using Statistical Techniques.

    Ultimately find which Xs are critical to move the Y in the

    desired direction and at what level those Xs are to be

    maintained

    ANALYZE

    IMPROVE

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    Evolve an effective solution that addresses the root cause ofthe problem.

    Evolve Should Process and its potential impact ( cost-

    benefit analysis)

    Assess risks and conduct Pilot Implementation

    Routine implementation plan including budget, time line

    and responsibilities.

    IMPROVE

    CONTROL

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    Develop Control plans and Control Charts to ensure thatgains are maintained.

    Routine Implementation of Control Plan.

    Standardize and Document effective methods

    Evaluating Results, Summarize key learning's

    Conduct revalidation when changes occurs in the Process /Product.

    CONTROL

    Integration with Business planning

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    Perspective Financials :

    What do share holders expect and what objectives on thefinancial perspective does this imply?

    Objectives

    Perspective Customer / Markets: Which objectives have to be set in order to satisfy our

    customers and to achieve the financial targets?

    Objectives

    Perspecitve Internal Processes: Which objectives have to be set regarding our processes

    in order to fulfill the customer expectations in light of the

    market conditions?

    Objectives

    Perspective Learning and Growth: Which objectives have to be set in order to develop crucialknowledge base, employees skills and future technologies?

    Objectives

    Integration with Business planning

    Identify Six Sigma Project during Business Planning

    Ca se and Effect Relationships

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    Financial

    Market

    share

    On-timeDelivery

    Customer

    Loyalty

    ProcessCycle Time

    ProcessQuality

    EmployeeSkills

    Process

    Customer

    Learning &Growth

    Cause-and-Effect Relationships

    From: R.S. Kaplan and D. Norton

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    For the successful implementation of a strategy

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    12/20/2012 89

    source: Motorola University (adapted by Horvth)

    goals

    abilities action plan resources incentives

    goals

    goals

    goals

    goals

    abilities

    abilities

    abilities

    abilities

    action plan

    action plan

    action plan

    action plan

    resources

    resources

    resources

    resources

    incentives

    incentives

    incentives

    incentives

    +

    +

    +

    +

    +

    + + +

    +

    +

    +

    +

    + + +

    +

    +

    +

    +

    =

    =

    =

    =

    =

    =

    confusion

    fear

    failing launch

    frustration

    little change

    chaos

    goals abilities action plan resources incentives+ + + + = intendedchange

    information+

    +

    +

    +

    +

    information

    information

    information

    information

    + information

    p gy

    PEOPLE CAN BE DIVIDEDINTO THREE CATEGORIES

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    INTO THREE CATEGORIES

    THOSE WHO WONDER

    WHAT HAPPENED

    THOSE WHO MAKE

    THINGS HAPPEN

    THOSE WHO WATCH

    THINGS HAPPEN

    J

    K

    L