Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY...
Transcript of Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY...
Six Sigma
RAMESH SARDAR U.D.M.S,AURANGABAD
FLOW OF PRESENTATION• INTRODUCTION• METHODOLOGY• STATISTICAL CONCEPT• LEAN SIX SIGMA• ROLES• CASE STUDY I• HUMAN SIGMA• CASE STUDY II• CONCLUSION
What is Sigma?
• Greek letter used to represent Standard Deviation (σ)
• Used in statistics to measure variance
• Sigma is a measure of perfection.
Origin
• Failure of Total Quality Management
• Introduced by Bill Smith in 1980’s in Motorola
• It was later introduced in many sectors such as service sector.
What exactly is Six Sigma?
• Six sigma is a smarter way to manage a business or department. It puts the customer first and uses facts and data to drive better solutions.
• It targets 3 main areas
1. Improving Customer Satisfaction
2. Reducing cycle time
3. Reducing defects
Six Sigma, But why Six?
Levels of sigma performanceSigma level
Defects/10 lakh
opportunity
% of sales defects
Accuracy
1 6,90,000 69% 31%2 3,08537 31%(appx) 69%3 66807 6.68% 93.32%4 6210 0.62% 99.38%5 233 0.023% 99.977%6 3.4 Practically
perfect, no defect
99.9997%
Themes of Six Sigma1. Main Focus on Customer
2. Data and Fact Drive
3. Processes are where the Action is
4. Proactive Management
5. Boundary less collaboration
6. Drive for perfection
Methodology Six Sigma has mainly 2 key Six Sigma has mainly 2 key
methodologies:-methodologies:-
DMAICDMAIC
DMADVDMADV Both were inspired by W. Edwards Both were inspired by W. Edwards
Deming’s Plan–Do-Check-Act cycle.Deming’s Plan–Do-Check-Act cycle.
• Define the processDefine the process
• Measure the Measure the performanceperformance
• Analyze the causes Analyze the causes of problemof problem
• Improve the processImprove the process
• Control the processControl the process
DMAIC
MeasureMeasure
Verify Verify
DefineDefine
AnalyzeAnalyze
DesignDesign
DMADV Methodology
DMADV• Define goalsDefine goals
• Measure and Identify product qualitiesMeasure and Identify product qualities
• Analyze to develop and design Analyze to develop and design alternativesalternatives
• Design detailsDesign details
• Verify the designVerify the design
Some Examples MethodologyMethodology ProponentProponent
DCCDI (Define, Customer Concept, DCCDI (Define, Customer Concept, Design and Implement)Design and Implement)
Geoff TennantGeoff Tennant
CDOC (Conceptualize, Design, CDOC (Conceptualize, Design, Optimize, Control)Optimize, Control)
SBTISBTI
DCDOV (Define, Concept, Design, DCDOV (Define, Concept, Design, Optimize, Verify)Optimize, Verify) UniworldUniworld
DMADOV (Define, Measure, Analyze, DMADOV (Define, Measure, Analyze, Design, Optimize and Verify) General Design, Optimize and Verify) General
ElectricElectric
General General ElectricElectric
Y = f(X)Outputs are a function of inputs … The key is unlocking which inputs are the critical
few among the trivial many
- Know and Control the X’s
- Reduce the Variability in Y
- Decrease the number of defects
- Improves Cycle Time and Capacity
- Eliminate or reduce inspection, test and rework
Y = f (X1, X2, X3, …, Xk)
NORMAL DISTRIBUTION CURVE
Defects Defects
LSL USL
0.625
0.621 0.629
0.620 0.630
Tolerance =+/- 0.004
Each sigma shift - 10% net income improvement.
Cost of Poorly Performing Processes (CP3)
SigmaCapabilit
y
Defect free per
million
Defects per million
CP3 :Cost of poorly performing processes
2.0 691700 308300 Not applicable
3.0 933193 66807 25%-40% of sales
4.0 993780 6220 15%-25% of sales
5.0 999767 233 5%-15% of sales
6.0 999996.60 3.4 < 1% of sales
Converting Defect Levels to... Sigma!
175 defects are identified whileproducing 5000 controllers
The manufacture of one controllerallows for 1367 defect opportunities.
D.P.Op = 0.035 / 1367 = 0.0000256
An Example :
D.P.U = 175 / 5000 = 0.035
D.P.M.Op = 25.6
"Sigma" level : 5.50
SIX SIGMA BREAKTHROUGH PERFORMANCE MODEL
SIX SIGMA PERFORMANCES
SIX SIGMA PERFORMANCES
Customer DrivenCustomer Driven
Process MgtProcess Mgt
Statistical AnalysisStatistical Analysis
Higher profits
Higher profits
Increased Value
Increased Value
Reduced Variation
Reduced Variation
Mission: Quality, Wipro Ltd
Saved Cost 110 Cr approx
Hardware : Installation failures : 4.5% to 1%
Software : Reducing Reworking : 12% to 5%
Productivity Printer : by 50% and Toilet Soap : by 100%
What is lean Six Sigma?
• It’s a data driven approach & methodology
• It improves employee’s knowledge
• It is a management strategy
• It’s a combination of engineering & techniques with low risk
Lean Techniques and Principles
5S’s• Sort• Shine• Straighten• Standardize• Sustain
Value-stream mapping
Continuous improvement
Mistake-proofingCycle time
reduction Inventory reductionSetup time
reductionWaste
identification & elimination
Lean Technique and Principles
1. Eliminates all the waste time
2. Maintains customers satisfaction
3. Project gets completed on time and in budget
4. Continuously improves the profitability
Lean Contribution to Six Sigma
• What is Kaizen?
• Kaizen is the Japanese word which means ‘Continuous Improvement’.
• Any action towards the process of improvement is called Kaizen.
Kaizen
1. Keep a Positive attitude
2. Be open minded
3. Get involved in team work & challenges
4. Look for solutions always
5. Ask the 5 Why rules
6. Apply ideas immediately with available resources
7. Treat all team members equally
8. Apply just in time concept
Kaizen Strategies
Implementation Roles
• LeadershipLeadership
• ChampionsChampions
• Master Black BeltMaster Black Belt
• Black BeltBlack Belt
• Green BeltGreen Belt
1)LEADERSHIP-CEO & Other key top
management team members.-Sets a vision 2)CHAMPIONS & SPONSORS-Responsible for 6 sigma
implementation-Mentors-High-level individuals.-Informal leaders.
3)MASTER BLACK BELTS-Highest level of technical proficiency.-Everything what black belt knows.-Assist champions.-100% time.
4)BLACK BELTS-Involve in organisation change &
development.-Master technical tools.-Training.-100% time.
5)GREEN BELTS-Project leaders.-Form six sigma teams &
manage six sigma projects.-Training.-Black belts help Green belts.
Staffing Levels & Expected Returns
• One Master Black Belts for every ten One Master Black Belts for every ten Black Belts, or about 1 Master Black Black Belts, or about 1 Master Black Belt per 1,000 employeesBelt per 1,000 employees..
• A Black Belt complete 5 to 7 projects A Black Belt complete 5 to 7 projects per yearper year..
• Project teams are led by Green BeltsProject teams are led by Green Belts..
• Expected Expected US$1 million per year US$1 million per year
ExampleA company with 1000 Employees will haveA company with 1000 Employees will have
• Master Black Belts: 1Master Black Belts: 1
• Black Belts: 10Black Belts: 10
• Projects: = 50 to 70 (5 to 7 per Black Belt)Projects: = 50 to 70 (5 to 7 per Black Belt)
• Estimated saving: US$9 million to US$14.6 Estimated saving: US$9 million to US$14.6 million (US$14,580 per employee)million (US$14,580 per employee)
Tata Steel's First Certified Six Sigma
Black Belt• Niloy Mitter Niloy Mitter
• Focus on the bottom line.Focus on the bottom line.
• Reduce mistakes in every Reduce mistakes in every aspectsaspects
Boeing And Six Sigma
• Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined.
• Headquartered in Chicago, Boeing employs more than 150,000 people across the United States and in 70 countries.
Evolution Of Six Sigma At Boeing
• 1999 – decision to implement six sigma
• 1999 – To better deploy six sigma, Boeing established a working relationship with GE.
• 2000 – To learn from a recent acquisition, Boeing established Boeing Satellite Systems
• 2000 – To cultivate soft skills for successful six sigma deployment, Boeing established linkage with Aircraft and Missiles Navigator.
• 2001 – At this time Boeing merged six sigma and Navigator
• 2003 – Boeing shifted responsibility for six sigma deployment to individual organizations with Lean Enterprise offices help.
Why Boeing Decided To Deploy Six Sigma
• Six Sigma is a complete system• Six Sigma focused improvement methodology. • Six Sigma provides hands-on training. • Six Sigma incorporates a mentoring of less-
experienced experts (black belts assisting green belts).
• Two six sigma projects at Boeing – The delivery of 777 aircraft sections was
reduced from 12 to 10 days, with the standard deviation being cut from 3.0 to 1.7.
– IT process improvement
General Electric• Saved $750 million by the end of 1998
• Cut invoice defects and disputes by 98 percent
• speeding payment
• Created better productivity
• faster completion of deals and annual savings of $1 million.
DabbawalasTotal area coverage
60 km
Number of Tiffin's 2,00,000Time taken 3 hrsError Rate 1 in 16 millionSix Sigma
performance99.9999%
TechnologicalBackup
Nil
Operations Supply chain management
HUMAN SIGMA• Origin of the Model
• Purpose :- Looks at the Quality of the Employee –
Customer encounter, weaving together a consistent method for assessing it & a disciplined process for Managing & Improving it.
• Focus – Reducing Variability & Improving Performance
• Principles for Measuring & Managing Interactions
Emotions Frame The Encounter
• Customer Engagement - Confidence - Integrity - Pride - Passion
• Employee Engagement
• Encounter Must be Measured Locally
Ways To Achieve
• Responsibility for Human Sigma must be Centralized
• Local Manager is nonetheless the Single Most Important Factor in Local Group Performance
• Companies need to Overhaul their HR practises
Firstsource Solutions
• January 2007: Received Six Sigma IQ award under “Best Six Sigma Project in Healthcare”.
• April 2007 : Won the Award for “Best Defect elimination in Service & Transaction” category in the IQ Six Sigma excellence Awards at London.
• June 2007 : Firstsource Solutions Limited won “Best Design for Six Sigma” in the IQ Six Sigma Excellence Awards in Singapore.
Name of company:Firstsource
Listed on: NSE: FSL.NS, BSE: FSL.BO
Revenues: INR 8,399 million,
Services: providing business transformation services, headquartered :India.
It is among India’s top 3 pure-play BPO service providers. Its clients include six “Fortune Global 500” banks, two “Fortune Global 500” telecommunications companies and three “Fortune 100” healthcare companies.
Application and benefits in BPO industry
Application and benefits
Application: AHT
Benefit: hard benefit
Application: Call quality
Benefit: soft benefit
Advantages of Six Sigma
• Clear focus on the target.
• Six Sigma includes both human & process elements.
• Disciplined use of Tools & techniques.
• Emphasis on facts.
• Use of statistical methods.
Limitations of Six Sigma
• Challenges of having quality data available.
• Right selection and prioritisation of projects.
• Assumption of 1.5 Sigma Shift.
• Non-Standardised process in certification of Black Belt.
• Over selling of Six Sigma.
THANK-THANK-YOUYOU