SIX SIGMA"Delivering Tomorrow's Performance Today"

Sir Bill Smith“ the Father of six sigma”

MBA PM07The IIHMR University, Jaipur.

WHAT’S IN A NAME?

• Business Definition

A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.

• Technical Definition

A statistical term signifying 3.4 defects per million opportunities.

SIX SIGMA = PERFECTION

CENSO

RED

1)( 2

n

xxi

Sigma = = Deviation ( Square root of variance )

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7

Axis graduated in Sigma

68.27 %

95.45 %

99.73 %

99.9937 %

99.999943 %

99.9999998 %

result: 317300 ppm outside (deviation)

45500 ppm

2700 ppm

63 ppm

0.57 ppm

0.002 ppm

between + / - 1between + / - 2between + / - 3between + / - 4between + / - 5

between + / - 6

=

Six Sigma as a Metric

Overall Business Improvement.Remedy Defects/Variability.Reduce Costs.Improve Cycle Time. Increase Customer Satisfaction

BENEFITS OF SIX SIGMA

Generates sustained success. Sets performance goal foe everyone. Enhances value for customers. Accelerates rate of improvement. Promotes learning across boundaries. Executes strategic change.

Six Sigma Objectives

Belt refers to the level or the position, of a person in an organization at the time of performing a work or at the time of implementation of a project.

What is a BELT?

• Six sigma gives employees well defined roles & clear structures to their task

• Six sigma project are usually run by guys in the middle of the organization .

• Lay down policies and guidelines regarding functioning of six sigma teams.

Champion

Master black belts

• The highest level of Six Sigma expertise;

• All duties involve implementation of Six Sigma, including statistical analysis, strategic and

policy planning and implementation, and training and mentoring of Black Belts.

Black belts• all job duties include implementation of Six Sigma methodology throughout all levels of the

business, • leading teams and projects, and providing Six Sigma training and mentoring to Green and

Yellow Belts.

Green belt• In many organizations, Six Sigma's "entry level";

• duties include leading projects and teams and implementing Six Sigma methodology at the

project level

Yellow belt• The lowest level of Six Sigma expertise;

• applies to a professional who has a basic working knowledge and who may manage smaller

process improvement projects,

• but who does not function as a project or team leader.

The DMAIC Methodology

Improve

You have a problem definition and a thorough

execution plan

Ensure you have output measures for process and

reliable ways of measuring it

You ensure reliable analyses and decisions

Identify Project, People and Process

Find the gaps between current and final states

Find root causes and develop solution

You have the solution to the problem

You understand the problem now

Communicate, standardize and document the improvement

You have ensured sustained improvement

Analyze

Control

Measure

Define

STEP OUTPUTINPUT

METHODOLOGY

Zero Defect ?