SEMINAR

SIX SIGMA METHODOLOGY

Presented By:
ON

PRADIPTA ROUT
M.TECH.(I.E.)

REGD.NO.C.E.T.,BHUBANESWAR

INTRODUCTION
Todays competitive environment leaves no room for errors. Companies must delight their customers. Companies must look for new ways to exceed customers satisfaction.

HOW GOOD IS GOOD ENOUGH?

With 99.9 % With Six Sigma Quality quality
No. of wrong medical prescriptions per year No. of lost mails per hour Out of every 500000 computer restarts

4000

13

400 4100 crashes

One lost article of mail per hour Less than 2 crashes

ORIGIN OF SIX SIGMA

Three sigma(95%) was introduced by Walter Shewhart in 1920.

Credit of coining term Six Sigma goes to Motorola Engineer named Bill Smith in 1986.
Six Sigma was introduced by Motorola to reduce defect rate of manufactured electronic boards.

WHAT IS SIX SIGMA?

Business Definition
Data-driven approach and methodology to significantly improve customer satisfaction and quality of process outputs by identifying and reducing variability as well as defects in every aspect of business.

Technical Definition
A statistical term signifying 3.4 defects per million opportunities where a defect is defined as anything that could lead to customers dissatisfaction. An opportunity is the total quantity of chances for a defect.

PROCESS CAPABILITY
Process capability is also defined as the capability of a process to meet its purpose as managed by an organization's management and process definition structures Two parts of process capability are: 1) Measure the variability of the output of a process. 2) Compare that variability with a proposed specification or product tolerance. Standard Deviation , Where

SIX SIGMA CONCEPT OF PROCESS CAPABILITY

Capability studies measure the number of standard deviations between the process mean and the nearest specification limit in sigma units. As process standard deviation goes up, or the mean of the process moves away from the center of the tolerance, fewer standard deviations will fit between the mean and the nearest specification limit, decreasing the sigma number and increasing the likelihood of items outside specification.

SIX SIGMA CAPABILITY IMPROVEMENT

Sigma Performance Levels -- One To Six Sigma
Sigma Level Defects Per Million Opportunities (DPMO)

1 2 3

690,000 308,537 66,807

4
5 6

6,210
233 3.4

CHIEF CHARACTERISTICS
SMART (Specific Measurable Attainable Relevant TimeBound) Distinguish vital few from trivial many. Six Sigma is a customer focussed programme. Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled. Making decisions with verifiable data rather than guesswork. Timely Execution of processes. Training and cultural change to build a special infrastructure in the organisation.

THE ROAD MAP

SUB METHODOLOGIES
DMAIC process(define, measure , analyze , improve , control ) It is an improvement system for existing processes falling below specification and looking for incremental improvement DMADV process (define, measure, analyze, design, verify) It is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.

DMAIC
DEFINE Define who customers are, what their requirements are for products and services, and what their expectations are Define project boundaries the stop and start of the process Define the process to be improved by mapping the process flow MEASURE Develop a data collection plan for the process Collect data from many sources to determine types of defects and metrics Compare to customer survey results to determine shortfall

DMAIC
ANALYZE Identify gaps between current performance and goal performance Prioritize opportunities to improve Identify sources of variation IMPROVE Create potential solutions using technology and discipline Develop and deploy implementation plan CONTROL Prevent reverting back to the "old way" Require the development, documentation and implementation of an ongoing monitoring plan Institutionalize the improvements through the modification of systems and structures (staffing, training, incentives)

WORKING OF SIX SIGMA DMAIC

Define - high level goals and current process Measure - key aspects of current process and collect relevant data. Analyze - the data to verify cause-and-effect relationships.

Improve - the process based upon data analysis.

Control - the improvements to keep the process on the new course.

DFSS(Design For Six Sigma)

More of an approach than a defined methodology as there are no universally recognized phases or steps. Is used to design or re-design a product or service from the ground up. Expected process Sigma level for a DFSS product or service is at least 4.5 (no more than approximately 1 defect per thousand opportunities), but can be 6 Sigma or higher depending the product. One popular design is DMADV.

WORKING OF SIX SIGMA DMADV

Define - design goals that are consistent with customer demands and the enterprise strategy. Measure - and identify CTQs (characteristics that are Critical To Quality), process capabilities and risks.

Analyze - to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
Design - details ,optimize the design, and plan for design verification. Verify - the design, set up pilot runs, implement the production process and hand it over to the process owners.

SIX SIGMA DEPLOYMENT

SIX SIGMA DEPLOYMENT

1. Champions take responsibility for Six Sigma implementation across the organization in an integrated manner. Champions also act as mentors to Black Belts. 2. Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, they spend their time on ensuring consistent application of Six Sigma across various functions and departments. 3. Black Belts apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma

SIX SIGMA DEPLOYMENT

4. Green Belts, the employees who take up Six Sigma implementation along with their other job responsibilities, operate under the guidance of Black Belts. 5. Yellow Belts, trained in the basic application of Six Sigma management tools, work with the Black Belt throughout the project stages and are often the closest to the work.

BENEFITS OF SIX SIGMA

Increased revenue from removing process variability.
Increased revenue from excellent new products or greatly improved existing products Dramatic reduction in defects, cycle time and cost Reduced reliance on inspection for quality Greatly improved customer satisfaction

Reduced costs value-adding work

from rework

and elimination of non

SIX SIGMA DRIVES MEASURABLE RESULTS

The pioneer company, Motorola has reported savings upto $21 billion. General Electric reported $750 million savings in cost in 1998.

A Rubber Manufacturer was unable to perform fast mold changes, impacting delivery schedules and customer satisfaction. Six Sigma was applied, reducing mold change time 53% and creating $525,000 in sales capacity.

SUCCESS STORY OF SIX SIGMA IN INDIA

In 1998-99, its first year of implementing six sigma, Wipro recorded savings of Rs. 4.40 crore and it is growing year by year. Godrej-GEs assembly-lines at Mohali, Pune has brought down the defects to 1000 per million parts, between four and five sigma, with a saving of Rs. 10 crore. Maruti Udyog, despite its faith in Japanese Quality Practice, has started a six sigma pilot project in its spares deptt. Hero Motors is using six sigma to bring down warrantycosts. Modi Xerox has blended six sigma with their on-going quality programmes, says D.P. Roy, Executive director, Modi Xerox.

CONCLUSION

Generates sustained success

Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement;