Six-Sigma: The Quality -

Improvement Program
Introduction:

• Six-Sigma quality program provides an overall

framework for continuous improvement in the
process of an organization.
• Objectives of Six-Sigma:
1. Reduce defects.
2. Reduce Cycle Time.
3. Enhance Customer Satisfaction
Introduction:

• Developed by Motorola in 1980s as part of TQM

• Significant results reported by GE, Johnson &
Johnson, American Express etc.
• Six-Sigma = 3.4 defects per million (DPMO)
• It is a ‘customer oriented, systematic, structured,
proactive, and, quantitative companywide approach
for continuous improvement of manufacturing,
services, engineering, suppliers, and other business
process.’
Basics:
An illustration:
DPMO Analysis Procedure:

Following steps need to be undertaken:

1. Declare the area of work and register customer
complaint/ suggestion/ expectation.
2. Identify the CTQs and translate in terms of name,
measure, and, specification.
3. Define the defect.
4. Define the unit.
5. Define the opportunity.
DPMO Analysis Procedure…contd.:

Following steps need to be undertaken:

6. Compute the number of defects per opportunity.
7. Compute the DPMO based on the total number of
units considered.
8. Convert the DPMO into appropriate sigma level
using the sigma conversion chart.
9. Find the corresponding yield (Y).
DPMO Analysis Proc…example:
At a customer care centre of a service provider, one
single line is operated by an executive. When the
executive is talking to a customer the other customer has
to wait on line. On average, the executive attends about
12,000 calls. The customers often complain that it is
taking too long time waiting to speak to an executive.
The service provider has decided that waiting time of 3
minutes is ‘too long’. A study revealed that on an average
360 calls are waiting too long. Determine the DPMO and
the yield of this service and find the sigma level.
Table:
Six-Sigma Methodology:
• Define the problem and the scope of Six-Sigma project in
detail.
• Measure and collect data needed for the problem and its
potential root causes.
• Analyze the data selected and determine the real root
causes.
• Innovate to identify the ‘best’ solutions to the problem.
• Improve the process, and then pilot the proposed solution.
• Control the new process to ensure that the improvements
are sustained.
 Six-Sigma
Participants
and
Hierarchy
Six-Sigma vs. TQM:
Aspect Six-Sigma TQM
Ownership & Executive Ownership Self-directed work
Driving Forces teams
Focus Business strategy Quality initiative
execution system
Function area Truly cross functional Largely within a
single function
Training Focused training with No mass training in
verifiable return on statistics and quality
investment with RoI
Orientation Business results Quality oriented
oriented
Comments/ Issues: