Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY...

49
Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD

Transcript of Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY...

Page 1: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

Six Sigma

RAMESH SARDAR U.D.M.S,AURANGABAD

Page 2: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 3: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

FLOW OF PRESENTATION• INTRODUCTION• METHODOLOGY• STATISTICAL CONCEPT• LEAN SIX SIGMA• ROLES• CASE STUDY I• HUMAN SIGMA• CASE STUDY II• CONCLUSION

Page 4: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

What is Sigma?

• Greek letter used to represent Standard Deviation (σ)

• Used in statistics to measure variance

• Sigma is a measure of perfection.

Page 5: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 6: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 7: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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%

Page 8: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 9: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 10: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

• 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

Page 11: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

MeasureMeasure

Verify Verify

DefineDefine

AnalyzeAnalyze

DesignDesign

DMADV Methodology

Page 12: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 13: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 14: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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)

Page 15: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

NORMAL DISTRIBUTION CURVE

Defects Defects

LSL USL

0.625

0.621 0.629

0.620 0.630

Tolerance =+/- 0.004

Page 16: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 17: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 18: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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%

Page 19: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 20: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 21: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 22: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

• What is Kaizen?

• Kaizen is the Japanese word which means ‘Continuous Improvement’.

• Any action towards the process of improvement is called Kaizen.

Kaizen

Page 23: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 24: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

Implementation Roles

• LeadershipLeadership

• ChampionsChampions

• Master Black BeltMaster Black Belt

• Black BeltBlack Belt

• Green BeltGreen Belt

Page 25: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 26: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 27: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 28: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

5)GREEN BELTS-Project leaders.-Form six sigma teams &

manage six sigma projects.-Training.-Black belts help Green belts.

Page 29: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 30: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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)

Page 31: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 32: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 33: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 34: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 35: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 36: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 37: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 38: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

Emotions Frame The Encounter

• Customer Engagement - Confidence - Integrity - Pride - Passion

• Employee Engagement

• Encounter Must be Measured Locally

Page 39: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 40: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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

Page 41: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 42: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 43: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 44: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

Application and benefits in BPO industry

Application and benefits

Application: AHT

Benefit: hard benefit

Application: Call quality

Benefit: soft benefit

Page 45: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 46: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 47: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

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.

Page 48: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.
Page 49: Six Sigma RAMESH SARDAR U.D.M.S,AURANGABAD. FLOW OF PRESENTATION INTRODUCTION METHODOLOGY STATISTICAL CONCEPT LEAN SIX SIGMA ROLES CASE STUDY I HUMAN.

THANK-THANK-YOUYOU