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99.74 (3 Sigma)% is not good enoughSpecially for products/services which are criticalSuch as life saving medical instruments, plane, rails, banking transactionsCan we afford to take a chance for even 0.00001 mistake? A mistake does not mean product failure, but we cant take a chance.

Six SigmaThe term Six Sigma was coined by Bill Smith, an engineer with MotorolaLate 1970s - Motorola started experimenting with problem solving through statistical analysis1987 - Motorola officially launched its Six Sigma programSix SigmaLargely responsible for success of GE under CEO Jack Welsh.Jack Welsh talk at MIT:"If you run a company like GE, you don't know much in the way of details about the businesses .... In the CEO's world," he told them, "it's the people you need to focus on. The CEO of GE puts the right people in the right jobs, gives them the resources they make a case for, and gets out of their way."

4What is sigma ?A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performanceSigma is a Greek symbol represented by "".The term sigma is used to designate the distribution or spread about the mean (average) of any process or procedure.For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigmacapability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything thatresults in customer dissatisfaction.

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What is Six Sigma?

Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services.Why do we call Six Sigma as Six Sigma and not Four or Five Sigma or Eight Alpha (another Greek symbol)? Sigma is a statistical term that measures process deviation from process mean or target. Mean is also referred as average in common language. The figure of six was arrived statistically by looking at the current average maturity of most business enterprises. What is Six Sigma?

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. To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities. What does this mean in terms of LSL and USL?+- 6 sigma where 99.9999998% conformance, and non conformance is 0.002 per million or 2 per billion in terms of Z %. Cp index will be 2.

6-Sigma Performance

Difference between Non Conformance (Defects) and defects per million opportunitiesDefects equal failure

Defects per unit

Defects per million opportunities In process improvement efforts, defect per million opportunities or DPMO (or NPMO) is a measure of process performance. It is defined as

Defects per million opportunities

10Six Sigma is not:A standardA certificationAnother metric like percentageRather!It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.Methodology to measure and improve companys performance, practices and systems

What is six sigma1011Six Sigma is a rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance, practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness.

What is six sigma11

Key Concepts of Six Sigma

Critical to Quality: Attributes most important to the customerDefect: Failing to deliver what the customer wantsProcess Capability: What your process can deliverKey Concepts of Six SigmaVariation: What the customer sees and feelsStable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feelsDesign for Six Sigma: Designing to meet customer needs and process capability

14Companies using Six Sigma is in use in virtually all industries around the world. Some of companies can be listed as:MotorolaEricssonGeneral ElectricSonyFord Motor Co.CITI bank

1415Six sigma methodology(it takes money to save money)BPMSBusiness Process Management System

DMAICSix Sigma Improvement Methodology

DMADVCreating new process which will perform at Six Sigma

15Six sigma methodology(it takes money to save money)In the world of Six Sigma quality, the saying holds true: it takes money to save money using the Six Sigma quality methodology. You can't expect to significantly reduce costs and increase sales using Six Sigma without investing in training, organizational infrastructure and culture evolution.

Business process management systemOne of the most powerful ways to improve business performance is combining business process management (BPM) strategies with Six Sigma strategies. BPM strategies emphasize process improvements and automation to drive performance, while Six Sigma uses statistical analysis to drive quality improvements. The two strategies are not mutually exclusive, however, and some savvy companies have discovered that combining BPM and Six Sigma can create dramatic results.

18What is DMAIC?(Define, Measure, Analyze, Improve and Control)A logical and structured approach to problem solving and process improvement.

An iterative process (continuous improvement)

A quality tool which focus on change management style.

18What is DMAIC?DMAIC is a basic component of theSix Sigma methodology- a way to improve work processes by eliminating defects. The Six Sigma methodology is widely used in many top corporations in the United States and around the world. It is normally defined as a set of practices that improve efficiency and eliminate defects.Six Sigma has been around for more than 20 years and heavily influenced by TQM (total quality management) and Zero Defect principles. In its methodology, it asserts that in order to achieve high quality manufacturing and business processes, continued efforts must be made to reduce variations.

What is DMAIC?Define:Define is the first step in the process. In this step, it is important to define specific goals in achieving outcomes that are consistent with both your customers demands and your own businesss strategy. In essence, you are laying down a road map for accomplishment.Measure:In order to determine whether or not defects have been reduced, you need a base measurement. In this step, accurate measurements must be made and relevant data must be collected so that future comparisons can be measured to determine whether or not defects have been reduced.Analyze:Analysis is extremely important to determine relationships and the factors of causality. If you are trying to understand how to fix a problem, cause and effect is extremely necessary and must be considered.Improve:Making improvements or optimizing your processes based on measurements and analysis can ensure that defects are lowered and processes are streamlined.Control:This is the last step in the DMAIC methodology. Control ensures that any variances stand out and are corrected before they can influence a process negatively causing defects. Controls can be in the form of pilot runs to determine if the processes are capable and then once data is collected, a process can transition into standard production. However, continued measurement and analysis must ensue to keep processes on track and free of defects below the Six Sigma limit.

21PhasesPhases of Six Sigma are:Define specific goals to achieve outcomes, consistent with customers demand and business strategy Measure reduction of defectsAnalyze problems ,cause and effects must be consideredImprove process on bases of measurements and analysisControl process to minimize defects

2122What is DMADV? Also Known as DESIGN FOR SIX SIGMA (DFSS) Acronym for:Define the projectMeasure the opportunityAnalyze the process optionsDesign the processVerify the performance

DMADV is a process defined by Motorola as part of their Six Sigma management philosophy. DMADV is applied to new processes to make sure that they achieve Six Sigma quality. Six Sigma sets extremely ambitious goals to minimize the occurrence of flaws in products and services.The letters in the abbreviation DMADV stand for "define, measure, analyze, design, verify," the steps in the ordered process. Those steps can be summarized as follows.Define: State the problem, specify the customer set, identify the goals, and outline the target process.Measure: Decide what parameters need to be quantified, work out the best way to measure them, collect the necessary data, and carry out the measurements by experiment.Analyze: Identify performance goals and determine how process inputs are likely to affect process outputs.Design: Work out details, optimize the methods, run simulations if necessary, and plan for design verification.Verify: Check the design to be sure it was set up according to plan, conduct trials of the processes to make sure that they work, and begin production or sales.The other Six Sigma process called Sigma DMAIC, (Already Discussed) which stands for "define, measure, analyze, improve, control." This set of steps scrutinizes existing processes that are known to fall short of Six Sigma requirements. All Six Sigma processes are executed by Six Sigma experts designated according to "belt color,.

27When should six sigma be used?Its usage depends on the type of business. In general,

If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.28Benefits of six sigmaGenerates sustained successSets performance goal for everyoneEnhances value for customersAccelerates rate of improvementPromotes learning across boundariesExecutes strategic change

29Six sigma managementWhen practiced as a management system, Six Sigma is a high performance system for executing business strategy. Six Sigma is a top down solution to help organizations:Align their business strategy to critical improvement efforts Mobilize teams to attack high impact projects Accelerate improved business results Govern efforts to ensure improvements are sustainedThe Six Sigma Infrastructure i.e. beltsThe Six Sigma Belts (Green, Black, and Master Black) denote the different levels an individual can achieve in Six Sigma, a business management approach that was at the onset advanced by Motorola's manufacturing division in the USA in 1986. It has its basis on attentive and meticulous planning and constant determined application that can be made exclusive in dealing with issues that concern a business so as to improve on the marketability of their products and services.

1.Yellow BeltA Six SigmaYellow Beltis an individual who has passed the Green Belt certification examination but has not yet completed a Six Sigma project.

2.Green BeltA Six SigmaGreen Beltis an individual who works on projects part-time (25%), either as a team member for complex projects, or as a project leader for simpler projects. Refine a project charter.Select the team members for the project.Communicates with the champion, master black belt, black belt and process owner throughout all stages of the project.Facilitate the team through all phases of the project.Schedule meetings and coordinate logistics.Analyze data through all phases of the ProjectTrain team members in the basic tools and methods of Six SigmaIn complicated Six Sigma projects, green belts work closely with the team leader (black belt) to keep the team functioning and progressing through the various stages of the Six Sigma project.

3.Brown BeltABrown Belt is a Six Sigma Green Belt who has passed the Black Belt certification examination but has not yet completed their second Six Sigma project.4.Black BeltBlack Beltis a full-time change agent and improvement leader.Has technical and managerial process improvement / innovation skills.Has a passion for Statistics and Systems Theory.Understands the psychology of individuals and teams also process improvement tools and methods.Works well in a team format and can manage meetings.Help to prepare a project charter.Communicate with the champion and process owner about progress of the project.Lead the project team and schedule meetings and coordinate logistics.Help team members design experiments and analyze the data required for the project.Provide training in tools and team functions to project team members.Help team members prepare for reviews by the champion and executive committee.Lead and coach Green Belts leading projects limited in scope.

5.Master Black BeltAMaster Black Belt takes on a leadership roles as keeper of the Six Sigma process, advisor to executives or business unit managers, and leverages, his/her skills with projects that are led by black belts and green belts. Master black belts report directly to senior executives or business unit managers.He or she is a proven change agent, leader, facilitator, and technical expert in Six Sigma management.Help identify and prioritize key project areas in keeping with strategic initiativesApply Six Sigma across both operations and transactions-based processes such as Sales, HR, IT, Facility Management, Call Centers, Finance, etc.Coordinate Six Sigma projects from the dashboard.Teach black belts and green belts Six Sigma theory, tools, and methods.Mentor black belts and green belts.6.ChampionA Champion should be a member of the Executive Committee, or at least a trusted direct report of a member of the Executive Committee Identify their project on the organizational dashboard.Develop and negotiate project objectives with top management.Select a black belt (or a green belt for a simple project) to lead the project team.Remove any political barriers or resource constraints to their Six Sigma project.Provide a communication link between project team(s) and top management.Help team members manage their resources and stay within the budget.Keep the team focused on the project by providing direction and guidance.Assure that Six Sigma methods and tools are being used in the project.