World Class Performance

With 99 % With Six Sigma

Quality Quality
For every 300000 3,000 misdeliveries 1 misdelivery
letters delivered
For every week of TV 1.68 hours of dead air 1.8 seconds of dead air
broadcasting per
channel
Out of every 500,000 4100 crashes Less than 2 crashes
computer restarts

Source: The Six Sigma Way by Peter Pande and Others

1
 What Is Six Sigma?


Sigma is a letter
in the Greek
• Process Control;
• Plan, Do, Check, Act;
Alphabet • Common and Special Causes;
• Improvement can be done project
by project
• Statistical tools
• Hawthorne Plant Experiences
• Degree of variation;
• Level of performance in terms of
defects;
• Statistical measurement of process
capability;
• Benchmark for comparison; 2
 Six Sigma Definitions

• Business Definition
ü A break through strategy to significantly improve
customer satisfaction and shareholder value by
reducing variability in every aspect of business.
• Technical Definition
ü A statistical term signifying 3.4 defects per million
opportunities.


3
Sigma Defects Per Million Rate of
Level Opportunities Improvement
1 690,000
2 308,000 2 times
3 66,800 5 times
4 6,210 11 times
5 230 27 times
6 3.4 68 times

4
 Bank of America – SS
Experience
 Goals
 # 1 in Customer Satisfaction
 Worlds’ most admired company
 Worlds’ largest bank
 Strategy - “ Develop business process
excellence by applying voice of the
customer to identify and engineer
critical few business processes using
Six Sigma
 Created Quality & Productivity Division

5
 Bank of America – SS Experience

Results of first 2 years:



 Reduced ATM withdrawal losses by

29.7 %
 Reduced counterfeit losses in
nationwide cash vaults by 54%
 Customer delight up 20%;
 Added 2.3 million customer households
 1.3 million fewer customer households
experienced problems
 Stock value up 52%
 Y 2002 – BOA named Best Bank in US &
Euro money's Worlds Most Improved
Bank
6
 High Level Business Metrics
•Revenue
•Quote Time •Capital Utilization
•Defect Rate •Return on Assets
•Waste Operating Level
•Profits
•On Time Delivery Metrics
•Inventory;
•Machine Utilization

Strategically: Used by Leadershipas a vehicle to develop

sustainable culture of Customer, Quality, Value and Continuous
improvement.

Operationally: By Quality Managers to reduce cycle times, costs,

errors, rework, inventory, equipment downtime.

Deployment across all types of processes and industries -

worldwide

7
 Six Sigma Framework
Enablers Results

Establi Com
shing pete
Recog
People People ncy Key Perf
Personally nizing Proces Prod
actively Peopl s Results uctiv Results
Involved in e
Aligni
improvement
manage ity
ng Satis Gross
Devel Indivi
ment facti
System Rec margins
oping dual & on Net
Team Organ to be Invol ogni
skills izatio tion profit
used veme
Sales
n nt
Goals Market
Encourag Identifyin Implem Res Share
enting Customer
Deli Results Process
ing g& very pon
& designin Proces , se cycle
enabling s Tim time
g Valu
people e to Process
To processe Measur e,
cust costs
es relia
participat s to Rep ome Defect
bilit Tim
e in urc rs rates
deliver y
has e to Productiv
Improve Cash
ment strategy e Mar ity
flow
Policy & Strategy Improvin sati ket Mainte
g sfac nance
processe tion cost
Recogniz s Return
ing to satisfy on
Individual and assets
& Generate Utility
Team value consum
effort Partnerships For Society ption
Resources
customer
s
Results Timelin
ess
Leadership Processes Inventor
y

Innovation and Learning

8
 Who is 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.

9
 Six Sigma Results
Company Annual Savings
General Electric $2.0+ billion
JP 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 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.

10
 Six Sigma Project
Methodology
Project Phases

Define
Define Measure
Measure Analyze
Analyze Improve
Improve Control
Control


ØIdentify, ØCollect data ØAnalyze data, ØImprovement ØEstablish
evaluate and on size of the establish and strategy standards to
select selected confirm the “ ØDevelop maintain
projects for problem, vital few “ ideas to process;
improvement Øidentify key determinants remove root ØDesign the
ØSet goals customer of the causes controls,
ØForm teams. requirements performance. ØDesign and implement
, ØValidate carry out and monitor.
ØDetermine hypothesis experiments, ØEvaluate
key product Ø ØOptimize the financial
and process process. impact of the
characteristic ØFinal project
. solutions

11
 What Makes Six Sigma
Different?
 Versatile
 Breakthrough improvements
 Financial results focus
 Process focus
 Structured & disciplined problem solving
methodology using scientific tools and
techniques
 Customer centered
 Involvement of leadership is mandatory.
 Training is mandatory;
 Creating a dedicated organisation for problem
solving (85/50 Rule).

12
 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


13
 Total Productive
Maintenance


INTRODUCTION
In the highly competitive world the difference

between the winner and the looser is often one

hundredth of percentage.
This requires perfection and zero tolerance for

failure leading to Overall Performance

Effectiveness better than the competition.



TOTAL PRODUCTIVE MAINTENANCE
AIMS AT:-
 TO MEET

MARKET DEMANDS OPERATIONAL DEMANDS

Increase in production and reduction in quality problems.
Timely and effective start-up of new products. Equipment deterioration due to overload operation.
TPM BASIC POLICY AND EXAMPLE OF TARGET

Flexible response to the demand trend.
Reduction in prices.
High-level quality assurance.
Conservation of resources and energy.
Elimination of equipment which has design weak points.
Upgradation of knowledge of equipment control for the
operators.
Improve morale of associates.

BASIC POLICY
Aiming at “Zero accidents”, ”Zero failures”, and “Zero defects” through introduction of TPM with all workers
participating, which in turn contributes to the improvement of Overall equipment efficiency and reduction in costs.
SETTING

OBJECTIVES
1.Reduction in equipment failure. 4. Accurate Management of equipment, tools and
jigs.
2.Reduction in waiting and setup time. 5. Promotion of resource conversation and energy saving.
3.Effective use of existing equipment. 6. Education and training, cultivation of manpower.

Benefits of TPM
(As seen in various TPM implementation in companies)
Tangibles Intangibles
P - Increase in value added productivity - JISHU-HOZEN leads to operators
by 1.5 - 2.0 times. maintaining own equipment leading to
- Improvement in Overall equipment efficiency ownership.
by 150% to 200%.
Q - Reduction in defect ratio by 25%. - Pleasant work environment.
- Reduction in customer complaints by 25%.
C - Reduction in manufacturing cost by 30%.
- Happy visitors to plant leads to business
D - Reduction in product and work-in-process inventors growth.
by half.
S - Reduction in accidents to zero.
- Reduction in Pollution cases to zero.
M - Improvement proposal increased from 5 to 10.
 STEPS FOR TPM IMPLEMENTATION
1 Top Management declaration
of TPM initiative.

2 TPM education and awareness

3 Formation of TPM
organisation and structure

4 Setting of basic company TPM

principles and targets

5 Master plan for TPM

implementation

6 Kick-off of TPM company wide

7 Establishing system for

improving plant efficiency

8 Establishing upstream control

management for new products and
equipments

9 Building quality maintenance

system

10 Improvement of administration
and commercial function

11 Improvement of safety,
health, environment system

12 Complete implementation of
TPM
 TPM – PROCESS MAP
Process Focusing Point Responsibility
Organisation Gulf
Software
Declaration by Top Management about ✔
TPM Declaration adopting TPM as major initiative for
change
TPM Awareness Top Management: ½ Day ✔ ✔

Senior Management : 1 Day

Formation of TPM Managers/ Executives

Control steering : 3 Days
for coordinating ✔
company wide activity
 Organisation Committee Departmental committee for coordinating
 Departmental Committee with Control committee and department
activity
Selection of Manager Model Machine (MMM) For department heads and managers to ✔ ✔
understand & work on a machine for
Jishu
Start of Jishu Hozen activity in MMM
Hozen, OEE and Kobetsu Kaizen
activities
Target setting Benchmarks and targets for ✔ ✔
effectiveness of TPM

Making Master plan

Formal Kick off Informing the commitment of Top ✔ ✔
Management to all, including Partners
and Customers to TPM
Implementation & Deployment of TPM Implement by horizontal deployment ✔ ✔
activities all over the organisation: Company wide of various TPM
­ Jishu Hozen activities
­ OEE / Kobetsu Kaizen Regular and continuous training of all
­ Planned Maintenance people on activity plan. Review and
­ Training & Skill development monitoring of the activities
­ Office TPM
Corrective action wherever necessary
­
Complete
Initial Project
implementation
Managementof TPM Accessing for results ✔ ✔
­ Safety and Environmental
Management