Presented by :

MOHD.ARISH

Six Sigma A

Strategy for

Achieving

World Class

Perfor-mance

CONTENTS

IntroductionUnderstanding Six SigmaBackground and growth of Six sigmaMethodology Key role of six sigmaWhat make it differentBenefitsCertificate of Six SigmaConclusion

SIX SIGMA

A highly disciplined process that helps us focus on developing and delivering near-perfect products and services.

The word Six Sigma is a statistical term that measures how far a given process deviates from perfection.

The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible.

MEANING

A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process

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DEFINATION

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.

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Understanding Six Sigma

Process Control

Plan Do Check Act;

Common and Special Causes;

Improvement can be done project by project.

Statistical tools

Hawthorne Plant Experiences

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Understanding Six Sigma

Degree of variation; Sigma is a letter in the Greek Alphabet 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

ORIGIN OF SIX SIGMA

Motorola company that invented Six Sigma.

The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola

Late 1970s - Motorola started experimenting with problem solving through statistical analysis

1987 - Motorola officially launched it’s Six Sigma program

Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort

The Growth Of Six SIGMA

The company that perfected Six Sigma

Jack Welch launched Six Sigma at GE in Jan,1996

At GE, Six Sigma added more than $ 2 billion to the bottom line in 1999 alone.

THE GROWTH OF SIX SIGMA

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Six Sigma methodology

DMAICDMADV

Lean Six Sigma Methodology

Six Sigma Project Methodology

ControlControlDefine MeasureMeasure AnalyzeAnalyze ImproveImprove

Establish standards to maintain process;

Design the controls, implement and monitor.

Evaluate financial impact of the project

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, establish and confirm the “

vital few “ determinants of the performance.

Validate hypothesis

Improvement strategy

Develop ideas to remove root causes

Design and carry out experiments,

Optimize the process.

Key Roles for Six Sigma

Master black BeltBlack BeltsGreen BeltsTeam Members

• Quality Fundamentals/ Kaizen Now

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Who are Implementing Six Sigma

At least 25% of the fortune 200 claim to have a serious six sigma program 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

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Company Annual SavingsGeneral Electric $2.0+ billionJP 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 Results

•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.

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What Makes Six Sigma Different?

VersatileBreakthrough improvementsFinancial results focusProcess focusStructured & disciplined problem solving methodology using scientific tools and techniques.Customer centeredInvolvement of leadership is mandatory.Training is mandatory

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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

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THANK YOU