lean six sigma in various industries
DESCRIPTION
Applicability and results of lean six sigma implementation in various industries like automotives, continuous process plants, manufacturing, engineering parts, textiles, Information technology, telecom and R&D to name a few. Also deals with the advantage levered by a six sigma trained student or professional.TRANSCRIPT
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Presentation by Benchmark Six Sigma
Six Sigma in Various Industries
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To show applications of Six Sigma in various Industries.
To highlight the linkage of Engineering and Management Studies to Six Sigma application
OBJECTIVES OF THIS PRESENTATION
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• Helps organizations produce products and services better, faster and cheaper.
• Remove Wastage • Maximize Customer Satisfaction• Maximize Product/Service Quality. (Develop Close to Zero Defect
Products/Services)• Increase Sales• Increase overall Organizational Productivity• Save Costs• Make the Organization a Data-driven organization• Faster Cycle Time• Empower Employees
Six Sigma Benefits to Organizations
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Organizations have successfully benefitted from tools and conceptsthat are covered extensively in Six Sigma for decades. Some examplesare :• Statistical Process Control which uses Control Charts• Total Quality Management• Process Management through Measurements of outputs• Project Management• Application of Statistical concepts like Hypothesis testing, Regression Analysis
and Design of Experiments
However, Benchmark Six Sigma has packaged these tools (through Green Belt, Black Belt and MBB programs) in a manner that makes it many times more powerful
Six Sigma is Not NEW for Leading Organizations
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Six Sigma is a “Industry Independent” methodology and has beensuccessfully applied across:
• Manufacturing Industry including Automotives, Aerospace, Health Equipment, FMCG, Electronic Goods, Continuous Process Industries, Textiles, etc.
• Service Industry including Telecom, Banking and Financial Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo movement, Support Services, HR services, Marketing Services, etc.
• R&D organizations or in R&D functions of various organizations
Six Sigma Applicability
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Six Sigma Results
Company Annual Savings
General Electric $2.0+ billion
JP Morgan Chase *$1.5 billion (*since inception in 1998)
Texas Instruments $600 million
Johnson & Johnson $500 million
Honeywell $600 million
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Examples of Industrial Application
• Six Sigma Methodology has been successfully applied in all Industries
• Benchmark has had the opportunity to train close to 6000 persons from all Industries
• Based on the combined experience of Benchmark Consultants, next few slides show the areas in which Six Sigma has been successfully applied in some of the Industries we have worked with (a sample).
• We shall also look at select companies in each Industry that have successfully applied Six Sigma
• We would also see which Engineering specializations have contributed to success in the highlighted areas
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Six Sigma :Industry Wide Application
Industry Examples of Six Sigma ApplicabilityAutomotives i. Enhancing Supplier Quality
ii. Improving Safety & Reliability of Finished Vehiclesii. Reducing Manufacturing defects at each stageiv. Using Design FMEA to understand and prevent any possible design failuresv. Reducing variation in all the critical parameters that impact the finished productvi. Improving the overall Incoming Material Quality or parts Qualityvii. Optimizing Inventory levels for all major partsviii. Reducing time to manufactureix. Reducing Design defectsx. Reducing Supplier Lead time i.e the time take by each supplier to deliver goodsxi. Improving First time yield and efficiency of each step in the Manufacturing
assembly line.
Few Examples of Companies: Tata Motors, Ford, GM, Maruti, Telco.
Engineering Specializations who contribute : Mechanical, Electrical, Engineering Design, Computer Science, IT
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Six Sigma :Industry Wide Application
Industry Examples of Six Sigma Applicability
Continuous Process Plants
i. Improving overall Yield of each shiftii. Reduce scrap or spilled materialsiii. Reduce the Process failures or breakdownsiv. Increase Plant capacity utilizationv. Improve Operator Productivityvi. Reduce time to restart the process after failurevii. Create mechanisms to prevent failures at each stageviii. Improve overall process stability & control
Few Examples of Companies: Reliance Industries Ltd, Asian Paints, GE plastics, Wipro consumer goods
Engineering Specializations who contribute : Chemical, Mechanical, Electrical, IT, Product Design and Engineering Design
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Six Sigma :Industry Wide Application
Industry Examples of Six Sigma Applicability
Engineering Parts Manufacturing
i. Reduce Manufacturing cycle time (time of order to delivery)ii. Improve Customer Service performance scoresiii. Reduce or optimize inventory levelsiv. Reduce scrap or cost of poor qualityv. Reduce warranty costsvi. Reduce rejections due to design errorsvii. Improve parts design process to meet specifications 100% of timesviii. Improve parts reliability by identifying & optimizing critical factors
that ensure reliability
Few Examples of Companies: Gates India Ltd., Medium to small scale suppliers of parts
Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science
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Six Sigma :Industry Wide ApplicationIndustry Examples of Six Sigma Applicability
Textiles/ Fashion houses/ Garments
i. Eliminating manufacturing errors/defectsii. Improving first sample approval percentages while working with
buyersiii. Improving buyer satisfaction levels iv. Increasing repeat businessv. Improving supplier evaluation processesvi. Improving processes at the source (including fabric purchase and
inspection, stitching, embroidery, packing and shipping) to reduce rejections at later stages.
vii. Reducing costs viii. Reducing delays
Few Examples of Companies: Reliance Industries, Raymonds, Grasim
Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science
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Six Sigma :Industry Wide ApplicationIndustry Examples of Six Sigma Applicability
Information Technology :Software development
i. Reducing the overall Software development timesii. Reducing the number of errors found during product usageiii. Improving the estimation process to reduce time and cost overrunsiv. Improving the requirements gathering process to reduce reworkv. Reducing complaints resolution timevi. Creating systems to detect defects early in the process (to reduce high costs
associated with defects identified later)vii. Reducing appraisal cost per defect by phase and appraisal type (by project and in
total) viii. Reducing rework (All work done to fix an application after it has been delivered to
a customer is rework. This includes corrections to features or functions that are incorrect, and also may include "missed requirements" - things the customer expected but did not receive.
Few Examples of Companies: TCS, Infosys, IBM, HP, Patni, Birlasoft
Engineering Specializations who contribute : Computer Science, IT, Electronics and Communications mainly. All other branches of engineering for specific domain application.
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Six Sigma :Industry Wide ApplicationIndustry Examples of Six Sigma Applicability
Telecom i. Improving ARPU (Average revenue per unit)ii. Reducing Billing errorsiii. Reducing timeliness of billingiv. Improving the Call Completion rate (i.e Network Quality)v. Reducing network congestionvi. Development of new features, processes for new servicesvii. Improving accuracy, timeliness and completeness of new connectionsviii. Improving accuracy, timeliness and completeness of customer communication. ix. Reducing Customer churnx. Reducing network congestionxi. Improving call routing proceduresxii. Improving sales productivity
Few Examples of Companies: Bharti Airtel, France Telecom, Reliance Infocomm, Siemens
Engineering Specializations who contribute : Telecom , Electronics and Communication, Product Design , Computer Science, IT
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Six Sigma :Industry Wide Application
Industry Examples of Six Sigma ApplicabilityR&D/ Product Design i. Reducing the time to market
ii. Reducing rework through synergy between R&D and the customer facing staff.
iii. Improving the overall performance & quality of product from startiv. Minimizing product failures by ensuring robust designsv. Improving quality of research process & experiments by providing
mass education in Experimental design and Multivariate studiesvi. Improving quality of design reviews (data driven reviews)vii. Reducing defects in final product thereby saving on warranty costs.
Few Examples of Companies: GE Labs, Boeing, Agilent Laboratories, Motorola, Microsoft, Semiconductor Industry
Engineering Specializations who contribute : Product Design, Electronics & Communication, Computer Science, IT and others depending on type of application designed
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Gains knowledge about the Engineering/ Management Disciplines and applications from the text booksEngineering - Learning about Engineering
concepts, applications, working in laboratories, running experiments & drawing inferences, understanding kety elements for technical success.
Management – Learning about Management concepts, applications, business organization, strategies, functional areas, understanding key elements for business success.
Getting exposed to number of mathematical and statistical models as part of course
Six Sigma Trained Student’s Advantage
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After undergoing Six Sigma training:Understands how engineering and/or
management knowledge can be applied to make an effective contribution in an actual organizational environment.
Supplements technical skills learned during Engineering with practical knowledge
Can take up Summer Internship Project as a small Six Sigma Project
Utilizes Six Sigma knowledge as a competitive advantage in the job search and career progress.
Six Sigma Trained Student’s Advantage
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Look out for other Benchmark Six Sigma presentations on the following topics
1. Message for Students pursuing full time professional courses. Is Six Sigma a suitable additional learning for students? Why?
How does it help?
2. What is Six Sigma?What are the key ideas in this methodology? Why is it so
successful?
3. Function specific applications of Six Sigma Which functional areas have Six Sigma applicability?
4. Six Sigma personal success stories How people have succeeded with Six Sigma? What are their
success stories?
5. Six Sigma corporate success stories Which companies have benefited? Sample benefits?
6. About Benchmark Six Sigma Who is Benchmark Six Sigma? What are the Services? Who are their
clients?