WHAT IS SIX SIGMA

WHAT’S IN A NAME?
• Six sigma represents a statistical
measure and a management
philosophy

• The Greek letter Sigma, used

mathematically to designate standard
deviation is the measure used to
determine how good or bad the
performance of a process is

• Means how many mistake company

commits while accomplishing task
SIX SIGMA = PERFECTION
• It is a highly disciplined approach used
to reduce the process variation to a
great extent

• Defect level is measured in terms of

parts per million (PPM)M or defects
per million opportunities (DPMO)

• Defect is drastically reduced to less

than 3.4 defects per million
opportunities
 Simply Six Sigma means…

Fewer than 3.4 Defects per Million Opportunities…

 Opportunities means…
1.Products

2.Services

3.Process
Million means…
 Defects means…

Non-conformance of a product with the specified

requirements, or non-fulfillment of user
expectations .
 Some Examples..

DVD drive is not working in a new laptop

 1 or 2 bad apples in a pack of 20 apples

 A passenger name is missing in a list of passengers

Delay in delivery
 So Six Sigma means…

Fewer than
3.4 Defects
per Million
Opportunities…
WHAT SO GREAT ABOUT SIX SIGMA?
 History
 Since the 1920's the word “sigma” has been used by mathematicians
and engineers as a symbol for a unit of Measurement in product
quality variation.

 In the mid-1980's engineers in Motorola in the USA used

• “Six Sigma”(S) an informal name for an in-house initiative for reducing
defects in production processes, because it represented a suitably high
level of quality.
History…
 In the late-1980's Motorola extended the Six Sigma methods to its critical
business processes, and significantly Six Sigma became a formalized in-house
'branded' name for a performance improvement methodology, i.e, beyond
purely 'defect reduction.‘

 In 1991 Motorola certified its first 'Black Belt' Six Sigma experts, which

indicates the beginnings of the formalization of the accredited training of Six
Sigma methods.

 Later, in the mid 1990’s, six sigma was adapted by Allied Signal and General
Electric (GE)

 Some reputed Indian companies such as Wipro, Infosys, Hero Motors have
also adapted.One of the most cited example is Mumbai’s Dabbawalas
Father of Six Sigma

Sir Bill Smith

“ the Father of six sigma”
Why Six and Why Sigma….?

The sigma scale is a universal measure of how

well a critical characteristic performs compared t
its requirements.

The higher the sigma score , the more capable

the characteristic

Even if the milestone of six sigma is

never reached, the act of working
toward that goal drives breakthrough
changes.
DPMO and Sigma Levels
 Practical Examples…
1. Six sigma standard defines finding 3.4 bad apples in 1
Million of them.

 If you buy 20 apples in a week that would mean you may get
1 bad apple every 320 years; looks like you probably won’t
get any bad apple in your life time

 10,00,000/20 apples=50,000 weeks/52*=960 yrs

 960 yrs/ 3 Apples= 320/1 apple

 Practical Examples…
2. In India, 14,444 trains run everyday. Passengers expect these trains to reach on
time
Let us consider each train as an opportunity for arriving late everyday
at the final destination. Thus 365*14,444=52,72,060 opportunities in
a year

At six sigma quality level, there can be a maximum of 3.4 defects per
million opportunities

Hence for 52,72,060 opportunities, the number of

late trains will be 5272060/1000000*3.4=18

Thus Indian Railway reaches the sigma quality

level for timeliness, they will have, at the most 18
trains arriving late in the whole year!!!
 The Reality of Variation

In the world of making

products, delivering services and
conducting transactions, there is
always a distribution of
performance around a target.

Target

Normally that
distribution takes the
shape of a bell

Performance variation
Learning Curve
Six Sigma Objectives…
1. Overall Business Improvement

2. Remedy Defects/ variability

3. Reduce costs

4. Improve cycle time

5. Increase customer satisfaction

 Key concepts of Six Sigma
1. Critical to Quality

2. Defects

3. Process capability

4. Variation

5. Stable operations

6. Design for six sigma

 Key Elements
1. The Customer

2. The Process

3. The Employees
Six Sigma Themes/ Principles
 Six Sigma Methodologies

DMAIC METODOLOGY DFSS

DFSS METHODOLOGY
METHODOLOGY

An improvement system for

existing process falling An
An improvement
improvement system
system
below specification and used
used to
to develop
develop new
new
looking for incremental processes
processes or
or products
products at
at six
six
improvement sigma
sigma quality
quality level
level
The DMAIC Model
The DMAIC Model
DFSS Methodologies
Benefits of Six Sigma
 Focus on customers
 Improved customer loyalty
 Reduced Cycle time
 Less waste
 Data based decisions
 Time management
 Systematic problem solving
 Employee motivation
 Team building
MUMBAI DABBAWALAS REDEFINE SIX SIGMA
THEORY
 WHAT IS NMTBSA?

(Nutan Mumbai Tiffin Box Suppliers

Association)

 History : Started in 1890

 Charitable trust : Registered in 1956
 Avg. Literacy Rate : 8th Grade
 Total area coverage : 60 Kms
 Employee Strength : 5000
 Number of Tiffin's : 2,00,000 Tiffin Boxes
 Time taken : 3 hrs
 WORKING OF NMTBSA

• Every day, for a very modest fee, the dabbawalas collect freshly
cooked meals from their customers’ homes all over Mumbai.
• Travelling by train, bus and bicycle, they then sort and deliver each
of them to offices and workplaces throughout the city by
lunchtime – and even return the used tiffins back to the
customer’s home for reuse.
• The dabbawala deliver an astonishing 200,000 meals across the
city, every day…with incredible efficiency, and almost perfect
accuracy in order fulfilment.
• The only modern technology involved in the process are a website,
and an ordering system enabling people to text in their last-
minute orders.
 WORKING OF NMTBSA

• To satisfy their customers, they use a complex system of

collection teams, sorting points and delivery zones, and a
completely manual system for routing the right meal to the
right destination.
• This labelling system must rely purely on numbers and colors,
painted on the tiffin – because most of the dabbawalas are
illiterate and cannot read.
• Despite challenges like this, the organization has been
recognized and celebrated for their amazing order accuracy…
estimated at roughly 1 error in every 16 million transactions.
• Zero % fuel Zero % investment
• Zero % modern technology Zero % Disputes
• 99.9999% performance100 % Customer Satisfaction
CODING SYSTEM
 JOURNEY OF DABBAWALA
9:30 A.M- 10:30 A.M 10:34- 11:20 A.M 11:20- 12:30 P:M

Pick up Dabba from

Residence/Caterer and *Journey in
bring it to Andheri
Station.
Local Train*

2:48- 3:30P:M Delivery to

1:15- 2:30 P.M 12:30 - 1:00 P.M and
Unloading
respective Sorting at
customers. Destination Station.

Sorting at
Collection of
Destinations
Empty Dabba. station.

Returning Dabba to
Residence/Caterer.

3:30- 4:40 P.M

 SIX SIGMA CERTIFICATION
 In 1998, Forbes Global magazine conducted
a quality assurance study on the Dabbawalas'
operations

 Gave Rating of 99.999999

 Dabbawalas made one error in six million

transactions.

 Stood High along with MNC’s like

Motorola, GE etc…

 Dabbawalas got ISO 9001- 2000 for

Excellence in service
 ACHIEVEMENTS
 Documentaries made by :
• BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY,
SAHARA SAMAY, STAR TV, CNBC TV 18, CNN,
SONY TV, TV TOKYO, NDTV.

 CASE STUDY made by :

• ICFAI Press Hyderabad & Bangalore
• Richard Ivey School of Business – Canada
• Also, Included in a subject in Graduate School of
Journalism University of California, Berkeley

 Invitations from :
• CII for conference held in Bangalore, IIML, IIMA, CII
Cochin, CII Delhi, Dr. Reddy’s Lab Foundation
Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana
– Pune, Rotary Club – Bangalore, NIQR at Chennai
 ACHIEVEMENTS
• World record in Best Time management.

• Name in “GUINESS BOOK of World

Records”.

• Registered with Ripley's “ believe it or not”.

• Invited for marriage of Hon. Prince Charles

of England on 9th April, 2005

• Documentary called “Dabbawalas,

Mumbai's unique lunch service” by two
Dutch filmmakers in 1998.
 LETTER FROM
PRINCE CHARLES