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Six Sigma Means 3.4
Defects in 1,000,000 -
MOTOROLA
 Six Sigma is a business concept that
answers customer’s demand for high
quality and Defect-free Business process.
 Six Sigma was born in Motorola and
developed by Mikel J. Harry.
 Motorola won Malcolm Baldridge Quality
Award.
 Six Sigma is carried out as projects and
mostly uses DMAIC method

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Eg: Godrej -G E Assembly
Plant
 Defective Components were coming at the
rate of 3,00,000 for one Million Parts.

 Applying Six Sigma saved Rs 4 Crores

 Mr. Vijay Krishna, C.E.O, Godrej-G E.

“We’re not talking about intangible savings
here. Six Sigma has given us the power to
measure and control costs. And that goes
straight to our bottom line”

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 PROCESS CAPABILITY
Process capability is simply a measure of how good a
metric is performing against established standard(s).

Upper and Lower Standards Single Standard

(Specifications) (Specification)
Spec Spec Spe
(Low (Upp c
er) er)

Out of In Spec Out of In Out of

Spec Spec Spec Spec

Probab Probab Probabil

ility 4 ility ity
SIGMA SCALE OF DEFECTS
SIGMA DEFECT COST OF Competitive
RATE POOR
QUALITY
Level
(PPM)
(% Sales)
6σ 3.4 < 10% World Class
5σ 233 10%-15% World Class
4σ 6,210 15%-20% High Quality
3σ 66,807 20%-30% Industry Average
2σ 3,08,537 30%-40% Industry Average
1σ 6,90,000 > 40% Non-Competitive
5 PPM: Parts Per Million
 Six Sigma
Implementation
 Five-phases
process
1.Establishing
2.Information
Management 3.Training
Gathering
Commitment

5.Business
4.Developing Process to 6.Conducting
Monitoring Be improved Six Sigma
Systems
are chosen Projects
6 Continuous Improvement
 Six Sigma - Three Dimensions

Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven by
customer
needs
Process Map Analysis
LSL US
L
Mgmt Methodology
Senior
Led by
••••••••••
Upper/Lower
specification
• •
••• •
•
•••••••
•••••••
limits
Organization Tools
•
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5

Process variation 0 0%

Enabled by quality
L K A F B C G R D

Frequency Cumulative Frequency

team.
Pareto Chart

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 DMAIC PROCESS

Define Measure

DMAIC Analyze
Control

Improve

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 DEFINE

Determine Bench mark

Set Baseline

Determine Customer requirements

Get Customer Commitment

Map Flow process

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 MEASURE
Develop Defect Measurement

Develop Data Collection process

Collect Data

Create Forms

Compile and Display Data

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 ANALYSE
Verify Data

Draw Conclusions From Data

Test Conclusions

Determine Improvement Opportunities

Determine Root Causes

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 IMPROVE
Create Improvement Ideas

Create Models

Experiment

Set Goals

Create Problem Statement

Create Solution Statement

Implement Improvement Methods
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CONTROL
Monitor Improvement Progress

Measure Improvement Statistically

Assess Effectiveness

Make Needed Adjustments

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 ENIGMA OF SIX SIGMA

+3 +2 +1 Six Sigma -1 -2 -3
6σ

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 SIX SIGMA BENCHMARKS
Restaurant Bills
Prescription writing
100K Payroll processing

Order write-up

10K Journal Vouchers

Wire transfer
Average
company Air baggage handling

1K Material lot
Rejected

10 Air flight
Fatality Rate

Best in class

(0.25ppm)
115 2 3 4 5 6 7
Table 1: Companies And The Year They Implemented Six Sigma

Company Name Year Began Six Sigma

Motorola (NYSE:MOT) 1986

Allied Signal (Merged

With Honeywell in 1994
1999)

GE (NYSE:GE) 1995

Honeywell (NYSE:HON) 1998

Ford (NYSE:F) 2000

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Table 2: Six Sigma Cost And Savings By Company
% Revenue % Revenue
Year Revenue ($B) Invested ($B) Savings ($B)
Invested Savings
Motorola
1986-
356.9(e) ND - 16 1 4.5
2001
Allied Signal
1998 15.1 ND - 0.5 2 3.3
GE
1996 79.2 0.2 0.3 0.2 0.2
1997 90.8 0.4 0.4 1 1.1
1998 100.5 0.5 0.4 1.3 1.2
1999 111.6 0.6 0.5 2 1.8
1996-
382.1 1.6 0.4 4.4 3 1.2
1999
Honeywell
1998 23.6 ND - 0.5 2.2
1999 23.7 ND - 0.6 2.5
Key:
$B = $ Billions, United States
(e) = Estimated, Yearly Revenue 1986-1992 Could Not Be Found
ND = Not Disclosed 17
Note: Numbers Are Rounded To The Nearest Ten
The Quality Team
Master Black Belt - Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black Belts

- Backbone of Six Sigma Org

Black Belt Black Belt - Mentor Green Belts
- Full time resource
- Deployed to complex or “high
risk” projects
Green Belt
Green Belt
- Part time or full time resource
Green Belt
- Deployed to less complex
projects in areas of functional
expertise
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Scope of Six Sigma

Manufacturing
Service Industries
Hospitals
Insurance
Call Centre

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 What is Six Sigma?
Six Sigma at many organizations simply means a measure
of quality that strives for near perfection. Six Sigma is a
disciplined, data-driven approach and methodology for
eliminating defects (driving toward six standard deviations
between the mean and the nearest specification limit) in any
process – from manufacturing to transactional and from
product to service.

Six Sigma is a set of techniques and tools for

process improvement.
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