99.

74 (3 Sigma)% is not good enough

Specially for products/services which are
critical
Such as life saving medical instruments,
plane, rails, banking transactions
Can we afford to take a chance for even
0.00001 mistake?
A mistake does not mean product failure,
but we cant take a chance.

Six Sigma

The term Six Sigma was coined by

Bill Smith, an engineer with Motorola
Late 1970s - Motorola started
experimenting with problem solving
through statistical analysis
1987 - Motorola officially launched
its Six Sigma program

Six Sigma

Largely responsible for success of GE

under CEO Jack Welsh.
Jack Welsh talk at MIT:
"If you run a company like GE, you
don't know much in the way of
details about the businesses .... In
the CEO's world," he told them,
"it's the people you need to focus
on. The CEO of GE puts the right
people in the right jobs, gives
them the resources they make a

What is sigma ?

A
term (Greek)
used
in
statistics
to
represent
standard deviation from mean value, an indicator of the
degree of variation in a set of a process.

Sigma measures how far a given process deviates from

perfection. Higher sigma capability, better performance

Sigma is a Greek symbol represented by "".

The term sigma is used to designate the distribution or

spread about the mean (average) of any process or
procedure.

For a process, the sigma capability (z-value) is a metric that

indicates how well that process is performing. The higher the
sigma
capability, the better. Sigma capability measures the
4
capability of the process to produce defect-free outputs. A

What is Six Sigma?

Six Sigma is a highly disciplined process

that helps us focus on developing and
delivering
near-perfect
products
and
services.
Why do we call Six Sigma as Six Sigma and
not Four or Five Sigma or Eight Alpha
(another Greek symbol)?
Sigma is a statistical term that measures
process deviation from process mean or
target. Mean is also referred as average in
common language. The figure of six was
arrived statistically by looking at the current

What is Six Sigma?

The central idea behind Six Sigma is that if

you can measure how many "defects" you
have in a process, you can systematically
figure out how to eliminate them and get as
close to "zero defects" as possible.
To achieve Six Sigma Quality, a process
must produce no more than 3.4 defects
per million opportunities.
What does this mean in terms of LSL and
USL?
+6
sigma
where
99.9999998%
conformance, and non conformance is 0.002

6-Sigma Performance

Difference between Non Conformance (Defects)

and defects per million opportunities
Defects equal failure
Defects per unit

Defects per million opportunities In process

improvement
efforts, defect
per
million
opportunities or DPMO (or NPMO) is a measure
of process performance. It is defined as

Defects per million

opportunities

What is six sigma

Six Sigma is not:
A standard
A certification
Another metric like percentage
Rather!
It is a Quality Philosophy and the way of
improving performance by knowing where
you are and where you could be.
Methodology to measure and improve
companys performance, practices and
systems
10

What is six sigma

Six Sigma is a rigorous and a systematic
methodology that utilizes information
(management by facts) and statistical
analysis to measure and improve a
company's operational performance,
practices and systems by identifying and
preventing 'defects' in manufacturing and
service-related processes in order to
anticipate and exceed expectations of all
stakeholders to accomplish effectiveness.
11

Key Concepts of Six Sigma

Critical to Quality: Attributes most

important to the customer
Defect:
Failing to deliver what the
customer wants
Process Capability:
What your
process can deliver

Key Concepts of Six Sigma

Variation: What the customer sees

and feels
Stable
Operations:
Ensuring
consistent, predictable processes to
improve what the customer sees and
feels
Design for Six Sigma: Designing to
meet customer needs and process
capability

Companies using
Six Sigma is in use in
virtually all industries
around the world. Some
of companies can be
listed as:
Motorola
Ericsson
General Electric
Sony
Ford Motor Co.
CITI bank

14

Six sigma methodology

(it takes money to save money)
BPMS
Business Process Management System
DMAIC
Six Sigma Improvement Methodology
DMADV
Creating new process which will perform
at Six Sigma
15

Six sigma methodology

(it takes money to save money)
In the world of Six Sigma quality, the
saying holds true: it takes money to
save money using the Six Sigma
quality methodology.
You can't expect to significantly
reduce costs and increase sales
using Six Sigma without investing in
training, organizational infrastructure
and culture evolution.

Business process management

system
One of the most powerful ways to improve
business performance is combining business
process management (BPM) strategies with
Six Sigma strategies.
BPM
strategies
emphasize
process
improvements and automation to drive
performance, while Six Sigma uses statistical
analysis to drive quality improvements.
The two strategies are not mutually exclusive,
however, and some savvy companies have

What is DMAIC?
(Define, Measure, Analyze, Improve and Control)
A logical and structured
approach to problem
solving and process
improvement.
An iterative
(continuous
improvement)

process

A quality tool which

focus
on
change

18

What is DMAIC?
DMAIC is a basic component of theSix Sigma
methodology- a way to improve work processes by
eliminating defects.
The Six Sigma methodology is widely used in many
top corporations in the United States and around
the world.
It is normally defined as a set of practices that
improve efficiency and eliminate defects.
Six Sigma has been around for more than 20 years
and heavily influenced by TQM (total quality
management) and Zero Defect principles.
In its methodology, it asserts that in order to
achieve high quality manufacturing and business
processes, continued efforts must be made to

What is DMAIC?

Define:Define is the first step in the process. In this step, it is

important to define specific goals in achieving outcomes that are
consistent with both your customers demands and your own
businesss strategy. In essence, you are laying down a road map for
accomplishment.

Measure:In order to determine whether or not defects have been

reduced, you need a base measurement. In this step, accurate
measurements must be made and relevant data must be collected so
that future comparisons can be measured to determine whether or
not defects have been reduced.

Analyze:Analysis is extremely important to determine relationships

and the factors of causality. If you are trying to understand how to fix
a problem, cause and effect is extremely necessary and must be
considered.

Improve:Making improvements or optimizing your processes based

on measurements and analysis can ensure that defects are lowered
and processes are streamlined.

Control:This is the last step in the DMAIC methodology. Control

ensures that any variances stand out and are corrected before they
can influence a process negatively causing defects. Controls can be in
the form of pilot runs to determine if the processes are capable and

Phases
Phases of Six Sigma are:
Define
specific
goals
to
achieve
outcomes, consistent with customers
demand and business strategy
Measure reduction of defects
Analyze problems ,cause and effects
must be considered
Improve
process
on
bases
of
measurements and analysis
Control process to minimize defects
21

What is DMADV? Also Known as

DESIGN FOR SIX SIGMA (DFSS)
Acronym for:
Define the project
Measure
the
opportunity
Analyze the process
options
Design the process
Verify
the
performance
22

DMADV is a process defined by Motorola as part of their Six Sigma

management philosophy.
DMADV is applied to new processes to make sure that they
achieve Six Sigma quality. Six Sigma sets extremely
ambitious goals to minimize the occurrence of flaws in
products and services.
The letters in the abbreviation DMADV stand for "define, measure,
analyze, design, verify," the steps in the ordered process. Those
steps can be summarized as follows.
Define: State the problem, specify the customer set, identify the
goals, and outline the target process.
Measure: Decide what parameters need to be quantified, work out
the best way to measure them, collect the necessary data, and
carry out the measurements by experiment.
Analyze: Identify performance goals and determine how process
inputs are likely to affect process outputs.
Design: Work out details, optimize the methods, run simulations if
necessary, and plan for design verification.
Verify: Check the design to be sure it was set up according to plan,
conduct trials of the processes to make sure that they work, and

The other Six Sigma process called Sigma DMAIC,

(Already Discussed) which stands for "define,
measure, analyze, improve, control."
This set of steps scrutinizes existing processes
that are known to fall short of Six Sigma
requirements. All Six Sigma processes are
executed by Six Sigma experts designated
according to "belt color,.

When should six sigma be used?

Its usage depends on the type of business.
In general,
If there are processes that generate a lot
of negative customer feedback, whether
that customer is internal or external, the
components of Six Sigma should be
considered as a means to study and rectify
the problem.
27

Benefits of six sigma

Generates sustained success

Sets performance goal for everyone
Enhances value for customers
Accelerates rate of improvement
Promotes learning across boundaries
Executes strategic change

28

Six sigma management

When practiced as a management system, Six
Sigma is a high performance system for
executing business strategy.
Six Sigma is a top down solution to help
organizations:
Align their
business strategy
to
critical
improvement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
Govern efforts to ensure improvements
sustained
29

are

The Six Sigma Infrastructure i.e.

belts
The Six Sigma Belts (Green, Black, and Master
Black) denote the different levels an
individual can achieve in Six Sigma, a
business management approach that was at
the
onset
advanced
by
Motorola's
manufacturing division in the USA in 1986.
It has its basis on attentive and meticulous
planning and constant determined application
that can be made exclusive in dealing with
issues that concern a business so as to
improve on the marketability of their products
and services.

1.Yellow Belt
A Six SigmaYellow Beltis an individual
who
has
passed
the
Green
Belt
certification examination but has not yet
completed a Six Sigma project.

2.Green Belt
A Six SigmaGreen Beltis an individual who works on projects part-time
(25%), either as a team member for complex projects, or as a project leader
for simpler projects.
Refine a project charter.
Select the team members for the project.
Communicates with the champion, master black belt, black belt and process
owner throughout all stages of the project.
Facilitate the team through all phases of the project.
Schedule meetings and coordinate logistics.
Analyze data through all phases of the Project
Train team members in the basic tools and methods of Six Sigma
In complicated Six Sigma projects, green belts work closely with the team
leader (black belt) to keep the team functioning and progressing through
the various stages of the Six Sigma project.

3.Brown Belt
ABrown Belt is a Six Sigma Green
Belt who has passed the Black Belt
certification examination but has not
yet completed their second Six
Sigma project.

4.Black Belt

Black Beltis a full-time change agent and improvement leader.

Has technical and managerial process improvement / innovation skills.

Has a passion for Statistics and Systems Theory.

Understands the psychology of individuals and teams also process

improvement tools and methods.

Works well in a team format and can manage meetings.

Help to prepare a project charter.

Communicate with the champion and process owner about progress of

the project.

Lead the project team and schedule meetings and coordinate logistics.

Help team members design experiments and analyze the data

required for the project.

Provide training in tools and team functions to project team members.

Help team members prepare for reviews by the champion and

executive committee.

Lead and coach Green Belts leading projects limited in scope.

5.Master Black Belt

AMaster Black Belt takes on a leadership roles as keeper

of the Six Sigma process, advisor to executives or business
unit managers, and leverages, his/her skills with projects
that are led by black belts and green belts.
Master black belts report directly to senior executives or
business unit managers.
He or she is a proven change agent, leader, facilitator, and
technical expert in Six Sigma management.
Help identify and prioritize key project areas in keeping with
strategic initiatives
Apply Six Sigma across both operations and transactionsbased processes such as Sales, HR, IT, Facility
Management, Call Centers, Finance, etc.
Coordinate Six Sigma projects from the dashboard.
Teach black belts and green belts Six Sigma theory, tools,
and methods.

6.Champion

A Champion should be a member of the Executive

Committee, or at least a trusted direct report of a member
of the Executive Committee
Identify their project on the organizational dashboard.
Develop and negotiate project objectives with top
management.
Select a black belt (or a green belt for a simple project) to
lead the project team.
Remove any political barriers or resource constraints to
their Six Sigma project.
Provide a communication link between project team(s) and
top management.
Help team members manage their resources and stay
within the budget.
Keep the team focused on the project by providing direction
and guidance.