TOTAL QUALITY MANAGEMENT AND

SIX SIGMA.
HOW GE, MOTOROLA AND OTHER TOP COMPANIES ARE HONING THEIR
PERFORMANCE?
ADVANCE
MANAGEMENT
CONCEPTS

ISHAN INSTITUTE OF MANAGEMENT AND

TECHNOLOGY. GREATER NOIDA.

BUSINESS IS ALL ABOUT

QUALITY.

DID ANCESTORS APPLIED SIX SIGMA IN

THEIR LIFE TOO?
3

What is Quality?
4

An essential and distinguishing attribute

of something or someone.
A degree or grade of excellence or
worth.
A characteristic property that defines the
apparent individual nature of something
Adjective of quality
high socialstatus and Of superior grade.

SIX SIGMA AND COMPANIES.

5

Six Sigma initiatives have tallied billions of dollars in savings, dramatic

increases in speed, strong new customer relationshipsin short,
remarkable results and rave reviews.

In 1991 also, Allied Signal, (a large avionics company which merged with
Honeywell in 1999), adopted the Six Sigma methods, and claimed
significant improvements and cost savings within six months

In 1995, General Electric's CEO Jack Welch decided to implement Six

Sigma in GE, and by 1998 GE claimed that Six Sigma had generated over
three-quarters of a billion dollars of cost savings.

By the year 2000, Six Sigma was effectively established as an industry in

its own right, involving the training, consultancy and implementation of
Six Sigma methodology in all sorts of organizations around the world.

TILL 2010, There are more than 60 companies, who adopted the Six
Sigma.

SIX SIGMA AND 60

COMPANIES

GE ELECTRIC
MOTOROLA
MUMBAI DABBAWALAS
3M
AIR CANADA
ALCAN
SAMSUNG
DHL
US NAVY, ARMY AND AIR CORPS.
XEROX
HSBC

What is six sigma?

7

SIX SIGMA
8

Sigma is a letter in the Greek alphabet used to

denote the standard deviation of a process (standard
deviation measures the variation or amount of spread
about the process mean).
A process with "Six Sigma" capability means having
12 standard deviations of process output between the
upper & lower specification limits. Essentially, process
variation is reduced so that no more than 3.4 parts per
million fall outside of the specifications limits. The
higher the sigma number, the better.
Bill Smith first formulated the particulars of the
methodology at Motorola in 1986. Six Sigma was
heavily inspired by six preceding decades of quality

SIX SIGMA
9

Six Sigma is a business management strategy originally

developed by Motorola, USA in 1981.
"...Six Sigma as a Metric: The term "Sigma" is often used as
a scale for levels of 'goodness' or quality. Using this scale,
'Six Sigma' equates to 3.4 defects per one million
opportunities (DPMO). Therefore, Six Sigma started as a
defect reduction effort in manufacturing and was then
applied to other business processes for the same purpose.."
"...Six Sigma as a Methodology: As Six Sigma has evolved,
there has been less emphasis on the literal definition of 3.4
DPMO, or counting defects in products and processes. Six
Sigma is a business improvement methodology that focuses
an organization on:

Simple six sigma (SSS)

10

Lets get real here. Is it truly necessary to go for

zero defects? Why isnt 99.9% defect-free good
enough? Here are some examples of what life
would be like if 99.9% were "good enough
4,000 INCORRECT DRUG PRESCRIPTIONS PER YEAR
3,000 NEWBORNS ACCIDENTALLY FALLING FROM
THE HANDS OF NURSES OR DOCTORS EACH YEAR
400 LETTERS PER HOUR WHICH NEVER ARRIVE AT
THEIR DESTINATION
13 WRONG DRUG PRESCRIPTIONS PER YEAR
10 NEWBORNS ACCIDENTALLY FALLING FROM THE
HANDS OF NURSES OR DOCTORS EACH YEAR
1 LOST ARTICLE OF MAIL PER HOUR

SIX SIGMA LEVELS

11

SIGMA
LEVEL

DPMO:DEFECTS
PER MILLION
OPERATIONS

Percent
defective

Percenta
ge yield

1
2
3
4
5
6
7

691462

69%

31%

308538

31%

69%

66807

6.7%

93.3%

6210

0.62%

99.38%

233

0.023%

99.977%

3.4

0.00034%

99.99966%

0.019

0.0000019%

99.999998
1%

12

IMPLEMENTATION OF SIX
SIGMA

DMAIC: APPROACH 1 IN SIX SIGMA

13

DMAIC: APPROACH 1 IN SIX SIGMA

14

D - Define opportunity
M - Measure performance
A - Analyze opportunity
I - Improve performance
C - Control performance, and optionally:
T - Transfer best practice (to spread the
learning to other areas of the
organization)

DEFINE+MEASURE+ANALYZE+IMPROVE+
CONTROL
15

Six sigma and 6 steps

16

Step #1 - Identify the product you create or the

service you provide
In other words ... WHAT DO YOU DO?
Step #2 - Identify the Customer(s) for your
product or service, and determine what they
consider important i.e. Customer Requirements
In other words ... WHO USES YOUR PRODUCT AND
SERVICES?
Step #3 - Identify your needs (to provide
product/service so that it satisfies the Customer)
In other words ... WHAT DO YOU NEED TO DO YOUR
WORK?

Six sigma and 6 steps

17

Step #4 - Define the process for doing your work

In other words ... HOW DO YOU DO YOUR WORK?

Step #5 - Mistake-proof the process and eliminate

wasted efforts using...
In other words ... HOW CAN YOU DO YOUR WORK
BETTER?

Step #6 - Ensure continuous improvement by

measuring, analyzing and controlling the improved
process using
DMAIC - (Define, Measure, Analyze, Improve, Control)
In other words ... HOW PERFECTLY ARE YOU DOING YOUR
CUSTOMER-FOCUSED WORK?

18

SIX SIGMA APROACH 2:

DMADV

SIX SIGMA APROACH 2:

DMADV

19

DMADV - An alternative/substitute abbreviation to DFSS (Design

For Six Sigma), and like DFSS DMADV is central to Six Sigma
initiatives. DMADV more specifically describes a method
comprising linked steps:

Define
Measure
Analyze
Design
Verify
for ensuring that products and processes are
designed at the outset to meet Six Sigma
requirements.

Quality management tools and

methods used in Six Sigma
20

5 WHY?
HISTOGRAMS
ANALYSIS OF VARIANCES
SIPOC analysis (Suppliers, Inputs, Process,
Outputs, Customers)
Failure mode and effects analysis (FMEA).
CTQ tree
COST BENEFIT ANALYSIS
Business Process Mapping
and 45 other tools too.

SIX SIGMA-BUSINESS
HABITS

21

THE MAJOR CHANGES AFTER APPLYING SIX SIGMA IN

YOUR BUSINESS ARE FOLLOWINGS:

Cost reduction
Productivity improvement
Market-share growth
Customer retention
Cycle-time reduction
Defect reduction
Culture change
Product/service development
And many more.

WHY SIX SIGMA?

22

Six Sigma impacts BOTTOM LINE (Profits)

.
Six Sigma drives STRATEGY execution.
Six Sigma generates robust, FLEXIBLE
business process.
Six Sigma Improves HUMAN
PERFORMANCE across entire
organization.
Six Sigma is highly SCALABLE.
Six Sigma is a low risk INVESTMENT.

23

Six sigma and its

benchmarks

Black Belts operate under Master Black Belts

to 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.

Green Belts, the employees who take up Six

Sigma implementation along with their other
job responsibilities, operate under the
guidance of Black Belts.

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.

BIBLIOGRAPHY AND CONTRIBUTORS

24

WIKIPEDIA
GOOGLE
PERRY HALL- A SIX SIGMA PLANNER.
ACER LAPTOP 4736Z
DELL LAPTOP INSPIRON.
HP 4GB PEN DRIVE BY ABHINEET PANJWANI.
DELL PROJECTOR
AND ALL THOSE WHO HELPED TO MAKE IT
POSSIBLE.

25

Run more faster than aero plane because genius

like us invented aero plane, not aero plane
invented us.
presented by:
15089,15120, 15062
and 15116