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Six Sigma is. . .

A rigorous, focused, fact based, disciplined, highly

effective implementation of process principles and
techniques.
It aims at performance goal, representing 3.4
defects for every million opportunities.
This is achieved by using DMAIC
A series of tools and methods used to improve or
design products, processes, and/or services.

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 Customers want their pizza delivered fast!

Guarantee of delivery time=

30 mins or less

What if measured performance and found

an average delivery time of 23.5min?
-On time performance is great, right?
-Our customers must be happy with us, right?
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Where can Six Sigma be applied?

Service
Design
Management

Purchase

Administration Six Sigma

Methods Production

IT
Quality
Depart.
HRM Finance
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 Statistical background

Tolerance
LSL USL
+/ - 3s

Target = m

+/ - 6s
Six-Sigma
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Performance Standards

s PPM Yield
2 308537 69.1%
3 66807 93.3% Current standard
4 6210 99.38%
5 233 99.977%
6 3.4 99.9997% World Class

Process Defects per Long term

performance million yield

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Financial Aspects

Benefits of 6s approach w.r.t. financials

s-level Defect rate Costs of poor quality Status of the

(ppm) company
6 3.4 < 10% of turnover World class
5 233 10-15% of turnover
4 6210 15-20% of turnover Current standard
3 66807 20-30% of turnover
2 308537 30-40% of turnover Bankruptcy

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In a world at 3 Sigma In a world at 6 Sigma

There are 964 flights going to U.S.

1 U.S. Flight is cancelled every 3 weeks
cancelled per day

The Police makes 7 false arrests There are fewer than 4 false arrests per
every 4 minutes month

Each year, 5390 surgeries are not

1 surgery not successful in 4 years
successful

In an hour, 47,283 calls are

In two year, single call got disconnected
accidentally disconnected

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 Companies who have successfully adopted
Six Sigma strategies include:

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 An iterative process
(continuous improvement)

A qualitytool which focus on

change management style. It
goes Upside Down

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Phases of Six Sigma are:
Define specific goals/Problems to achieve
outcomes, consistent with
customers demand and business strategy
Measure data must be gathered to measure responsible
variable
Analyze Identify the root cause of defects, identify
defectives or significant measurement deviation,
whether in or out of specification
Improve process, reduce variability or eliminate the
cause of defects
Control With the desired improvements in place,
monitor the process to sustain the improvements 12
 Reduce spend of consumables
Annual Spend $20,00,000
Target to reduce $2,50,000 in 6 months

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 7QC tools
Check Sheets (collect data to make improvements)
Pareto Charts( define problem and frequency)
Cause and effect diagram (Identify possible causes
to solve problem)
Histogram (Bar charts of accumulated data to
evaluate distribution of data)
Scatter diagram (plots many data points and pattern
between two variables)
Flow Chart (Identify unwanted steps)
Control charts (Control limits around mean value)

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 Improving performance through a precise quantitative
understanding of the customers requirements thereby
bringing in customer focus
Improving the effectiveness in upstream process of the
software development
life cycle by defect reduction (software defects reduced by
50%) and cycle time
reduction (rework in software down from 12% to 5%).
Waste elimination and increased productivity upto 35%.
Cost of failure avoidance (installation failures down from
4.5% to 1% in hardware business).
Tangible cost savings due to lower application development
cost for customer

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 Six Sigma is methodology used for:
Aligning key business processes to achieve those
requirements & to increase profitability
Utilizing rigorous data analysis to minimize data
variation in those processes.
Driving rapid and sustainable improvement to
product or business processes.

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THANKS

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