Six Sigma Overview

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 37

We believe that our purpose-led

improvements will lead to greater


business outcomes

Six Sigma Overview

DEG – Transformation Office

12/10/2021

Building on belief
Introduction

TCS Six Sigma Vision

Positively impact customers by improving processes,


products, and services

Completely satisfying customer needs profitably

2 TCS Internal
Introduction

The Benefits

Organization Customer
✓ Process Improvement in every sphere ✓ Improved products and services
✓ Hard data for every business decision ✓ Greater synergy with TCS
✓ Alignment with customer methodology ✓ Cost benefit
✓ Sharper customer focus
6
Employee
✓ A quality driven work environment
✓ The satisfaction of meeting client needs
✓ A structured thought process
✓ Self Improvement in the way of working

3 TCS Internal
Genesis of Six Sigma

Our Forerunners

The roots of Six Sigma as a In 1995, Jack Welch, the CEO of


measurement standard can be General Electric (GE) adopted the
traced back to Carl Frederick Six Sigma approach. He was greatly
Gauss who introduced the concept inspired by the success of Six
of the normal curve in early Sigma at Allied Signal.
nineteenth century.

In 1920s Walter Shewhart showed In 1991, Lawrence Bossidy


that three sigma from the mean is successfully deployed the Six Sigma
the point where a process requires approach in Allied Signal, which
correction. was a troubled conglomerate at that
time.

Edward Deming, the 'Godfather' of In 1987, as the CEO of Motorola,


quality brought about immense Bob Galvin adopted and promoted
change in the approaches and the Six Sigma approach in the
attitude towards quality in the early organization.
1950s.

In the 1980s, Mikel Harry, working


for Motorola, focussed on Deming's
concept of process variation as a
way to improve performance.

4 TCS Internal
Road Map To Customer Impact

The Eye Of The Beholder


A C
Customer’s View Customer’s view of
the organization’s
performance ?

Customer
Process
A B C

Organization’s
Process
A B
Organization’s
traditional view of Organization’s
its contribution View

5 TCS Internal
Road Map To Customer Impact

Bigger Y Voice Of
Customer Voice Of
Voice Of
Employee Shareholders

Key output metrics that are aligned


with the strategic goals/objectives
of the business.
Business Revenue growth
Big Ys provide a direct measure
of business performance Big Ys

Key output metrics that


summarize process/product
Process/ Cost
Quality
performance
Product Ys Delivery

Key project metric defined


from the customer
perspective
Project Y Productivity
Scrap reduction
Inventory cost
On time delivery
Customer complaints
Any parameters that Cycle time
influence the Y Xs

6 TCS Internal
What is Six Sigma

Six Sigma Process Capability

98.930% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour Seven articles lost per hour

Unsafe drinking water for almost 15 minutes each


One unsafe minute every seven months
day

5,000 incorrect surgical operations per week 1.7 incorrect operations per week

Two short or long landings at most major airports


One short or long landing every five years
each day

200,000 wrong drug prescriptions each year 68 wrong prescriptions per year

No electricity for almost seven hours each month One hour without electricity every 34 years

7 TCS Internal
What is Six Sigma

▪ A commitment of working smarter so that we make fewer mistakes and


Commitment eventually no mistakes at all.

▪ A metric that demonstrates quality levels at 99.99967% performance


Metric for products and processes.

▪ A practical application of statistical “tools” to help measure, analyze,


Tool improve, and control processes.

▪ A rigor to define/improve processes that incorporate customer


Rigor feedback and to ensure processes meet customer needs

Optimize Process Performance; Align with customer needs

8 TCS Internal
What is Six Sigma

Six Sigma Is Six Sigma Is Not

✓ An improved WAY of doing our regular A new Quality initiative


work
Going to change WHAT we do
✓ A practice that ensure that our services/
A completely new way of doing things
products meet customer expectations
profitably A departure from existing quality processes

✓ A rigor that views quality from the A practice that generates increased
customer’s perspective, Outside-In paperwork
approach A Quality Control process
✓ Process focused An end in itself
✓ A continuous improvement cycle that is A replacement for engineering, scientific or
systematic, scientific, and fact based process knowledge
✓ A statistical measure of a process’s ability Applicable to every problem in its entirety
to meet customer requirements (CTQs)
A set of tools only
✓ Process Sigma ZST = 6, and equates to 3.4
Defects Per Million Opportunities (DPMO)

✓ A measure of variation. The Greek symbol


“σ” (sigma) gives the standard deviation

9 TCS Internal
What is Six Sigma

Six Sigma jargon


Unit :
The item produced or processed

Any event that does not meet the specification of


Defect :
a CTQ as defined by the customer

Any event which can be measured that provides a


Defect opportunity:
chance of not meeting a customer requirement

Defective: A unit with one or more defects

Lower The lowest acceptable value of the target range as


Specification limit : specified by the customer

Upper Specification The highest acceptable value of the target range as


Limit: specified by the customer

10 TCS Internal
What is Six Sigma

Yield And Defect Count

Defect per Defect


opportunity = No. of units * Opportunities Per unit

Defect per 1,000,000 * Defect


million No. of units * Opportunities Per unit
opportunity =

Yield = 1 – Defect
No. of units * Opportunities Per unit

What is Sigma Level?

Sigma Level is a statistical estimate of the number of defects (D) that any
process will produce, equivalent to the Defects Per Million Opportunities
(DPMO) of that process.

11 TCS Internal
What is Six Sigma

Yield DPMO Sigma Level

69.15% 308500 2

93.32% 66800 3

99.38% 6200 4

99.98% 233 5

99.9997% 3.4 6

12 TCS Internal
Process Capability

What do Capable Process and Stable Process mean?


Lower Upper
Spec Spec
Limit Limit
Capable Process:

A process that produces consistent


results centered on a desired target value,
when measured over time. 

I and MR Chart for Cycle Time

8
7 3.0SL=6.887

Stable Process:

Individual Value
6
5
4
3 X=3.000
2

A process that is under statistical control 1


0
-1 -3.0SL=-0.8871
-2

OR is free of special causes of variation. Subgroup 0 5 10 15

Typically, all data points are within 3 5

4
3.0SL=4.775

Moving Range
standard deviation. 3

2
R=1.462
1
0 -3.0SL=0.00E+00

13 TCS Internal
Process Capability

Why should I know the Capability of my Processes?

To specify
quantitatively, the
quality of the process


To predict the extent to
which the process will To benchmark and
be able to meet choose from competing
customer requirements processes

To eliminate the sources of


variability currently at work.

Process Sigma - measure of capability used to express process


performance with respect to customer's requirements for any process

14 TCS Internal
Six Sigma Goal

Reduce Variation Through Better Control

• Reducing
Reducing • Excessive
Excessive
Variation Variation
variation
variation creates
reduces
reduces creates
defects defects
defects defects
LSL USL

Target
15 TCS Internal
Six Sigma Goal

“Technology” Case

LSL USL

Shifting
Mean > USL
the mean
creates defects
reduces defects

Target
Shift the process mean (technology case)

16 TCS Internal
Six Sigma Goal

Reduce Variation

USL USL

Reduce Mean
Variation Shifts For
“FREE!”

Cycle Time Cycle Time

Reduce process variation and shift the process mean

17 TCS Internal
Six Sigma Focus

Customer…Customer ………..Customer
Customer - Center of attention
How does my
customer view our
process?
What does my
customer need
from our How would my
process? customer like us to
improve our process
performance
How does my
customer measure
our process? How does my
customer
perceive our
What can we process
do better? performance?

Continuous and thorough understanding of our customer

18 TCS Internal
The Six Sigma Edge

Investment in Six Sigma

Typical Pattern

Resource
Investment DMAIC / DMADV

Launch /
Time Implement

DMAIC methodology is used to bring incremental improvements to existing processes to meet CTQs
DMADV methodology is used to Design new processes to run at optimal capacity

Upfront Investment Is Most Effective And Efficient!

19 TCS Internal
Six Sigma Roles

Who are the Key Players in Six Sigma Team?


Sponsor - Organizes and leads the initiation, deployment, and applies Six Sigma across
the organization. Approves project and budget based on the Business Case and Profitability
Master Black Belt (MBB) - Experts for disseminating the Six Sigma Methodology
throughout the organization and facilitating sharing of best practices.
Black Belt (BB) - Applies the Six Sigma methodology, tools, and knowledge to Six Sigma
projects.
Green Belt (GB) - Executes Six Sigma projects besides regular activities.
Team Member - GB Aspirant Six Sigma Aware

20 TCS Internal
Where Do I Fit In ?

Competency Tools
Level Used

Master Black Belt

ImpAct
Assess capability as MBB
Lead / Guide LSS improvement initiatives

E4
Mentor other GB projects

ImpAct
Continue mentoring GBs
Nurture Continuous improvements

Lean Six Sigma Black Belt Certified

ImpAct
E3 Mentor GBs and execute high impact LSS project

CAS
&
Assess capability as Black Belt

Lean Six Sigma Green Belt Certified

ImpAct
E2 Achieve improvement goals

CAS
&
Assess capability as Green Belt

Lean Six Sigma Green Belt Trained


E1 Fully trained in the methodology, tools and techniques
Equipped to lead a Lean Six Sigma(LSS) project

Gurukul

iCLAMS
&
Lean Six Sigma Aware
E0 Get an overview of the methodology

- 21 -
21 TCS Internal
Six Sigma Methodologies

An Introduction

DMAIC DMADV
▪ Define, Measure, Analyze, Improve and Control ▪ Define, Measure, Analyze, Design, Verify
(DMAIC) (DMADV).
▪ Improvements are made to the existing process ▪ Is used to develop new processes/products/
services to meet customer requirements
▪ Involves a paradigm shift

DMAIC and DMADV are elaborated further

22 TCS Internal
What is DMAIC ?

Define Measure Analyse Improve Control

A Five-step approach to process improvement

Can be used for both incremental and exponential


improvement projects

23 TCS Internal
Define

Define Measure Analyse Improve Control

Identify Develop Team Define Process


Project CTQ’s Charter Map
• Translate VOC to • Create Project charter • Develop COPIS
requirements • Establish Project
• Translate scope
Requirements • Decide project
• Establish CTQs Milestones
• Establish Roles

TCS
24 Internal
TCS Internal
Measure

Define Measure Analyse Improve Control

Identify Establish
Collect data
Measures Standards
• Identify the following • Develop the • Establish data
measures operational definitions collection plan
• Finalize the target • Conduct
– Input measures
• Finalize the measurements as per
– Process measures
specification limits plan
– Output measures

25 TCS Internal
TCS Internal
Analyze

Define Measure Analyse Improve Control

Establish Define Identify


Process Capability Performance objectives Variation sources
• Calculate process sigma • Statistically define the • Perform RCA
goal of the project
• Graphically display the • Identify the statistically
data • Do benchmarking significant X’s

26 TCS Internal
TCS Internal
Improve

Define Measure Analyse Improve Control

Screen Determine
Justify solution
Potential causes solution
• Narrow down list of • Identify solutions • Establish tolerance for
causes • Test solutions X’s
• Determine vital few X’s • Refine solutions • Conduct cost benefit
analysis

27 TCS Internal
TCS Internal
Control

Define Measure Analyse Improve Control

Establish Determine new Implement process


Measurement of X’s process capability control
• Confirm operational • Calculate process • Develop control &
definition of X sigma of the project implementation plan
measures • Implement the solution
• Ensure measurement • Close the project
accuracy &
consistency

28 TCS Internal
TCS Internal
What Is DMADV ?

Define Measure Analyse Design Verify

DMADV is the methodology used to implement Design For Six


Sigma (DFSS) process. This is Mapped to the SDLC Phases

29 TCS Internal
TCS Internal
Define

Define Measure Analyse Design Verify

Plan & Manage


Initiate the Project Scope the Project
Project
• Define Needs and • Define the Project • Develop the Project
Goal Statements Scope Plan
• Develop the Business • Develop the Multi- • Plan for Project
Case Generational Product / Management
• Define Project Team & Service Plan (MGP) • Initiate Risk
Leadership Management activities
• Develop the Project
Charter

SDLC - Initial / Feasibility Study

30 TCS Internal
TCS Internal
Measure

Define Measure Analyse Design Verify

Translate Customer
Identify Customer Requirements
Identify Customers
Requirements to Project CTQs
• Identify all internal and • Evaluate the existing • Translate the customer
external customers data for customer requirements to design
• Segment and stratify needs requirements Prioritize
customers • Select appropriate the Project CTQs &
• Prioritize the customer Customer Research define quality levels
segments methods • Set targets &
• Build a Data Collection specifications for the
Plan and gather prioritized CTQs
customer requirements
(VOC)
SDLC – Requirements Gathering & Freezing

31 TCS Internal
TCS Internal
Analyze

Define Measure Analyse Design Verify

Identify Design Design Concepts Design Capability


Options Evaluation & Selection Assessment
• Identify Product / • Evaluate the integrated • Develop transfer
Service Functions and concept designs functions for the CTQs
their inter-relationships • Select the most • Deploy the CTQs &
• Develop alternative promising integrated predict performance
design concepts for concept design for the concept design
the functions • Develop the selected • Perform a risk
• Develop the high-level integrated concept assessment for the
design aspects design concept design

SDLC – High Level Design / Functional Specifications

32 TCS Internal
TCS Internal
Design

Define Measure Analyse Design Verify

Develop detailed Develop verification


Develop control plan
design plan
• Develop detailed design • Determine what to verify • Identify critical Input,
elements • Create test document Process and Output
• Develop transfer • Create pilot plan parameters
function for design • Document procedures to
elements guide ongoing
• Perform design risk operations
assessment

SDLC – Low Level Design / Technical Specifications

33 TCS Internal
TCS Internal
Verify

Define Measure Analyse Design Verify

Pilot test and Production process


implementation Project closure
analysis
• Build pilot • Project Documentation • Components of project
product/process for • Turnover to operations closure
verification and maintenance • Close project
• Execute test document • Transition to customer
• Update design
documents and transfer
function

SDLC – Construction, Testing, Implementation & Maintenance

34 TCS Internal
TCS Internal
Six Sigma Methodologies

DMAIC - DMADV Relationship and transition points

Define Measure Analyze Improve Control

Y Y N

Is the
Is improvement
Does
Incremental a new or
a process
improvement redesigned
exist?
enough? product/
service?

N N Y

Define Measure Analyze Design Verify

35 TCS Internal
Change Acceleration Process – The Need

Q*A=E

Business
Results
CAP Complements Technical Strategy With Cultural Tools To Achieve The Change Initiative

* Quality of Six Sigma solution times its Acceptance = Effectiveness

36 TCS Internal
Building on belief

Thank You

A Delivery Excellence Group (DEG) Presentation


Reach us at delivery.excellence@tcs.com

Copyright © 2021 Tata Consultancy Services Limited

You might also like