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Six Sigma is a highly disciplined approach used to reduce the process variation to such a great extent that the level of defects reduced to less than 3.4ppm. Sigma (), a Greek letter used to describe variability. Defect level is measured in terms of PPM or DPMO.
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Business Model & Stake Holders: While the objective of Business is to make profit, its existence depends primarily on customers. What is a process? Converts an input into a form, that is of value to customers. The company need people and systems.
Sales and Distribution: To ensure that customers get what they have ordered. Servicing: To repair any product that fails during warranty, wear & tear or customer misuse. Finance & Accounting: Financial transactions are accurately maintained and to ensure that capital is available.
Stakeholders
Lean aims at increasing speed by eliminating waste in the system. Six Sigma aims at reducing variations to improve process quality. Six Sigma to make processes predictable, processes require high process capability. Poor quality levels increase inventory. 10% scrap can slow down the process by 40%. Only Six Sigma approach may not be able to reduce cycle times or inventories. Defect reduction reduces cycle time but other non value adding activities like set up times, machine breakdowns, transportations etc; must be minimised. To increase process speed. Dramatic improvements are possible with Lean six Sigma implemented together.
Typical Tools used in Lean Six Sigma Projects Six Sigma Roadmap Lean Tools Value stream mapping Tact Time Process Flow Charts Kan Ban Pull System Set up time reduction Define Measure Analyze Improve Control