Introduction to Six Sigma

By
Tushar Ghosh
S-6062

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 Purpose of Six Sigma

To make customer happy

To increase profits

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 Origin of Six Sigma

1987 Motorola develops Six Sigma

Other companies adopts Six Sigma-
• GE
• Whirlpool
• Honeywell
• Johnson & Johnson
• Nissan

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 What can it do?

 Motorola
 5-fold growth in Sales
 Profits climbing by 20% pa
 Cumulative savings of $14 billion over 11years

 General Electric
 $2 billion savings in just 3years
 The No.1 company in USA

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 GE Six Sigma Economies

2000
1800
1600
1400
1200
1000 Series 1
800 Series 2
600
400
200
0
1996 1998 2000 2002

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 It’s 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’s a process:
Its is statistics
• To achieve this level of • 6 Sigma processes will
performance you need produce less than 3.4
Define, Measure, defects per million
Analyze, Improve and opportunities
Control

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 Philosophy

 Know what’s important to customer (CTQ)

 Reduce defects (DPMO)
 Centre around target (Mean)
 Reduce variation (Standard Variation)

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 COPQ (Cost of Poor Quality)

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 COPQ v/s Sigma Level

50%
45%
40%
35%
30%
25% COPQ
20%
15%
10%
5%
0%
2 3 4 5 6

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 Defect Opportunity

 A unit has 10 parts and in each part there are 4

opportunities of defects
Total defects opportunities are 10 x 4 = 40
 DPO= No. of defects/ No. of defect opportunity
 In this case, if 10 units have 3 defects then
defects per unit = 3/10 = 0.3
DPO = 3 / (40x10) =0.0075

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 DPMO

 DPO multiplies by one million

 In this case,
DPMO = 0.0075 x 1,000,000 = 7500

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 Six Sigma Measurement

Defects per million

600000

500000 500000

400000

300000 308300
Defects per million
200000
158650
100000
67000
0 227006220
1350 233 32 3.4
1.5 2 2.5 3 3.5 4 4.5 5 5.5 6

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 DMAIC

 Define – What is
important?
 Measure – How are we
doing ?
 Analyze – What is wrong?
 Improve – Fix what’s
wrong
 Control – Ensure gains are
maintained to guarantee
performance

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 Six Sigma – Shortcomings

 Eliminate Defects but falls short on Optimizing

Process Flow
 Not so strong on Identification of Waste
 Not so Strong on Identification of Value Added /
Non-Value Added Activities in a Process
 Reduces Variation but not as effective on increasing
Speed of Process

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 Six Sigma Training

 Master Black Belt: Mentor, trainer and coach of

Black Belts and others in the organization
 Black Belt: Leader of teams implementing the Six
Sigma methodology on projects
 Green Belts: Delivers successful focused projects
using the Six Sigma methodology and tools
 Team Members/Yellow Belt: Participates on and
supports the project teams, typically in the context
of his or her existing responsibillities

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 Prepared by Tushar Ghosh

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