Six Sigma

Jayesh Bendale -64 Prerna Kadam -75 Keval Mhatre -86 Mangesh Pandure -89 Kiran Phapale -92 Ketan Rane -96 Amol Shitole -112 Preeti Singh -113 Meera Upadhyay -120

Contents
Introduction Concept of Six Sigma DMAIC PDCA SIPOC Four Levels in Six Sigma Advantages

Origin of six sigma

Motorola company that invented Six Sigma.

The term Six Sigma was coined by Bill Smith, an engineer with Motorola
Late 1970s - Motorola started experimenting with problem solving through statistical analysis 1987 - Motorola officially launched its Six Sigma program Motorola saved more than $ 15 billion in the first 10 years of its Six Sigma effort

Six Sigma
It is a Process To achieve this level of performance you need to: Define, Measure, Analyse, Improve and Control

It is a Philosophy Anything less than ideal is an opportunity for improvement Defects costs money Understanding processes and improving them is the most efficient way to achieve lasting results

It is Statistics 6 Sigma processes will produce less than 3.4 defects per million opportunities

Six Sigma Measurement

Sigma numbers
1.5s 2.0s 2.5s 3.0s 3.5s 4.0s 4.5s 5.0s 5.5s 6.0s

Defects per million

600,000

500,000 308,300 158,650 67,000 22,700 6,220 1,350 233 32 3.4

# of Defect per Million

500,000 400,000 300,000 200,000 100,000 0 1.5 2.5 3.5 # of Sigmas 4.5 5.5

Overview of Six Sigma

6 SIGMA AS A PHILOSOPHY CHANGE THE WORLD TRANSFORM THE ORGANIZATION 6 SIGMA AS A PROCESS GROWTH

COSTS OUT
6 SIGMA AS A STATISTICAL TOOL PAIN, URGENCY, SURVIVAL

FMEA..

Functional Deployment Chart

Step Start KANBAN Card Shop Order Heat Treatment Hardness Testing Operation Layout Tooling and Gauges Grinding / Honing Fitting / Polishing Inspection Heat Treatment
Hardness

Heat Treatment Start

Planning

Function/Responsibility Methods Tool Store Mfg.

Quality

Assembly

KANBAN card to shop Shop order

OK?
Yes

No Provide Op. Layout Provide tooling and gauges

Grinding and honing op. Remove all sharp edges

End

Rewor Qualitk To Yes y KANBAN OK? No End End

Sigma Curve

DMAIC - simplified
Define What is important? Measure How are we doing? Analyze What is wrong? Improve Fix whats wrong Control Ensure gains are maintained to guarantee performance

DMAIC approach
D Define

Identify and state the practical problem

M Measure A Analyze I Improve C Control

Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution

Convert the statistical solution to a practical solution

N A L P

A C T

I NVE TI G TE S A C ORRE T & C S TA NDA RDI S E

R V E E I WF E E DB C A K & MA KE C R E TI O O R C NS S TA NDA DI S DO R E , C HE K, A T C C

C LA I F R Y O J C B E TI V S E

I DE NTI F Y P S IB O S LE C U E A S S B NC E HMA K B S R E T P A TI C R C E I DE NTI F Y TE M R LE A O S I MP LE ME NT Q I C U K F X I

E VA LUA TE & VA LI DA TE
PILOT STUDY SOLUTION TO VERIFY DATA COUNTERMEASURE TRAINING

E NLI G HTE N & I MP LE ME NT

C R Y OUT TR A S TO A R I L P OVE C US S R A E A NA YS L E DA TA TO UNDE S R TA ND HOW P OB E R L M OC UR C S I DE NTI F Y P OS I B E S L S OL UTI ONS

PDCA was created by W Edwards Deming in the 1950s as an easy to follow Problem Solving Cycle.
Deming was tasked with helping Japan rebuild its economy in the 1950s.

His purpose was to use PDCA with a Continuous Improvement process to help rebuild Japanese industries so that they could compete in the world market in the future.

H C

COMMUNICATION

K C E

PDCA Cycle

SIPOC

6 s Training
Master Black Belt
Mentor, trainer, and coach of Black Belts and others in the organization.

Black Belts
Champions

Leader of teams implementing the six sigma methodology on projects.

Delivers successful focused projects using the six sigma methodology and tools.

Green Belts

Team Members / Yellow Belts

Participates on and supports the project teams, typically in the context of his or her existing responsibilities.

The Quality Team

Master Black Belt - Thought Leadership - Expert on Six Sigma - Mentor Green and Black Belts

Black Belt

Black Belt

Backbone of Six Sigma Org Mentor Green Belts Full time resource Deployed to complex or high risk projects

Green Belt

Green Belt Green Belt

- Part time or full time resource - Deployed to less complex projects in areas of functional expertise

Six Sigma:AIRTEL Success Story

In 2002 Bharti group (Airtel) launched Six Sigma It has since than successfully applied Six Sigma in all its businesses and has realized savings worth billions of rupees. Six Sigma is an Integral part of its DNA with a dedicated team at each of its Circles. Airtels basic services businesses yielded 250% return on Investment in the first year of implementation itself. There are more than 150 Black Belts working in the entire group

Industry Wise Success Stories

Banking: Bank of America, American Express, HDFC, HSBC Hospitality: ITC Hotels, GRT Hotels, Apollo Hospitals Manufacturing: Wipro, Nestle, Samtel, Samsung Retail: Reliance Retail Telecom: Bharti Cellular, Vodafone, Siemens, Tata IT: Wipro, Satyam, Acenture, Infosys, TCS, Birlasoft Out sourcing: ICICI OneSource, Accenture, Satyam BPO, IBM Daksh Companies in almost all sectors have a Six Sigma success story

The Growth of Six Sigma

TreMyn 2004

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

Six Sigma Results

Company General Electric JP Morgan Chase Motorola Johnson & Johnson Honeywell Annual Savings $2.0+ billion *$1.5 billion (*since inception in 1998) $ 16 billion (*since inception in 1980s) $500 million $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.
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THANK YOU Queries...??

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