Six Sigma

Introduction

A Strategy for Achieving World Class Performa nce

to Six Sigma

Group 1 1. Pratik Mehta 2. Gautami Kerkar 3. Prajakta Patil

At the end of this session, you will be able to understand:

What is Six Sigma. Where has Six Sigma been applied? Evolution of Six Sigma Six Sigma - Key Concepts. Six Sigma Methodology. Required Role Six Sigma Advantages & Disadvantages What cam it do? Current Leadership Challenges Conclusion
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What is Six Sigma ?

The Greek letter for Sigma, , which means the higher the sigma level the better the quality level. It is a highly disciplined process. Helps us focus on > Developing; and > Delivering. Near perfect Products & Services. It is a statistical term that measures how far a given process deviates from perfection. A methodology to improve a business process by constantly reviewing, updating & re-tuning the existing process. Central Idea behind Six Sigma is that: - Fewer defects > Lower Cost > leads to >Improved Customer Loyalty.
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Where has Six Sigma been applied?

Service Design Purchase

Management

Six Sigma Methods Administration

Production

IT Quality Depart. HRM

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M&S

Evolution of Six Sigma

Japan has been credited with the evolvement of quality systems like TQM, kanban, kaizen, etc. Pioneered in the U.S. By bill smith at Motorola in 1986; originally used as a metric for measuring defects for improving quality; a methodology to reduce defect levels <3.4 defects per million opportunities (DPMO). Motorola has reported >us$17b savings as of 2006. Six sigma was originally centered around manufacturing improvements. The reason for this was knowledge of the statistical tools in the manufacturing functions and the ease with which we can quantify the benefits.
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Six Sigma - Key Concepts.

At its core, Six Sigma revolves around a few key concepts.
1 Critical To Quality: 2 Defect: 3 Process Capability: 4 Variation: 5 Stable Operations: 6 Design For Six Sigma: Attributes most important to the customer Failing to deliver what the customer wants What your process can deliver

What the customer sees and feels Ensuring consistent, predictable processes to improve what the customer sees and feels Designing to meet customer needs and process capability

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Methodology
Six Sigma has two key methodologies: (DMADV & DMAIC)

DMADV

DMAIC

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Six Sigma (OD- 401)

Required Roles
To implement Six Sigma in an organization, the following roles are instrumental:Master Black Belt

Mentor, trainer, and coach of Black Belts and others in the organization.
Leader of teams implementing the six sigma methodology on projects.

Black Belts Champions Delivers successful focused projects using the six sigma methodology and tools. Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
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Green Belts

Team Members /Yellow Belts

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Six Sigma Advantages & Disadvantages

Advantages: Increase in customer loyalty. Increased bottom line. . Shareholder value. Customer satisfaction. Increased employee satisfaction. Benefits to the supply chain.

Disadvantages: Applicability of Six Sigma is being argued among the Six Sigma critics. Six Sigma gives emphasis on the rigidity of the process which basically contradicts the innovation and kills the creativity. People argue that Six Sigma is a bit gimmicky and simply a rebranding of the continues improvement techniques and tools. Six Sigma implementation constantly require skilled man force.
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What can it do?

Motorola: 5-Fold growth in Sales Profits climbing by 20% pa Cumulative savings of $15 billion over 11 years

General Electric: $2 billion savings in just 3 years The no.1 company in the USA
Bechtel Corporation: $200 million savings with investment of $30 million.
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Current Leadership Challenges

Delighting Customers. Reducing Cycle Times. Keeping up with Technology Advances. Retaining People. Reducing Costs. Responding More Quickly. Structuring for Flexibility. Growing Overseas Markets.

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Conclusion
Six Sigma is diversifying into large service oriented organizations. In the future, it is likely that more changes will emerge, making Six Sigma an even more beneficial application for organizations of all types and size

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Thank You!!!