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Six Sigma

Client, Enterprise & Competitive Intelligence for Product, Process & Systems InnovationDr. Rick L. Edgeman, University of Idaho

IX

Presentation on

By Students of Section-A With Odd Roll Nos.

S IGMASAccman Institute of Management

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Six Sigma

ACCMAN INSTITUTE OF MANAGEMENT

OBJECTIVE OFPRESENTATION

Share concepts and application of Six Sigma with a case

study.

Deployment of Six Sigma as a strategy to achieve world

class performance.

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Six Sigma

ACCMAN INSTITUTE OF MANAGEMENT

WHAT IS SIX SIGMA?

Six Sigma is a rigorous and disciplined methodology that uses

data and statistical analysis to measure and improve a

company's operational performance by identifying and

eliminating "defects" in manufacturing and service-related

processes.

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Six Sigma

ACCMAN INSTITUTE OF MANAGEMENT

ORIGIN OF SIX SIGMA

The term "Six Sigma" comes from a field of statistics known as

Process Capability Studies.

Bill Smith first gave the concept of Six Sigma at Motorola, USA

in 1981, as a method to improve process quality.

The basic premise is-

All processes have Variations; Variation is the Enemy.

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Six Sigma

Define

Control

Improve Analyze

Measure

ACCMAN INSTITUTE OF MANAGEMENT

Define the problem andcustomer requirements.

Measure defect rates anddocument the process in

its current incarnation.Analyze process data anddetermine the capability ofthe process.

Improve the process andremove defect causes.

Control processperformance and ensurethat defects do not recur.

THEPROCESS

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Six Sigma

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SIX SIGMA AS A GOAL

W

Defects per

Million

opportunities

23

45

6

308,537

66,807

6,2102333.4

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Six Sigma

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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.

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Six Sigma

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WHAT MAKES SIX SIGMADIFFERENT

Leadership Commitment, Competence, & Involvement.

Methodology & Tools.

Data Driven.

Statistically Validated.

Best People 100% Dedicated to Defect Reduction.

Project Focused. Aligned to Strategic Goals (Hoshin, MBF).

High ROI Expectations.

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Six Sigma

Six Sigma

Methods

Service

HRM

Administration

IT

APPLICATION

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Six Sigma

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SHORTCOMINGS OF SIX SIGMA

Because managers bonuses are tied to Six Sigma savings, it

causes them to fabricate results and savings turn out to bephantom.

Marketing will always use the number that makes the

company look best. Promises are made to potential customers

around capability statistics that are not anchored in reality.

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Six Sigma

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BARRIERS TO IMPLEMENTATION

1:Engineers and managers are not interested in mathematical

statistics.

2: Statisticians have problems communicating with managers

and engineers.

3: Non-statisticians experience statistical anxiety which has

to be minimized before learning can take place.

4: Statistical methods need to be matched to management

style and organizational culture.

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Six Sigma

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120-year old successful business operation.

Now carried out by 5000 semi-literate people.

They skillfully deliver Tiffin boxes through the congested streets

of thickly populated Mumbai in busy hours.

Having an attire of dusty white shirts , pyjamas and Gandhi topis.

Providing customers with real value addition in the unfailing

delivery of home-cooked food every day.

DABBAWALAS:CASE STUDY

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Six Sigma

BUSINESS OPERATION

5000 semi-literate dabbawalas.

Every dabbawala is a shareholder.

Daily delivering homemade food to 2,00,000 people.

Within a radius of 60kms.

In just 3 hours.

4,00,000 transactions every single day.

Error rate is one in 16 million transactions.

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Six Sigma

BUSINESS CONSTRAINTS

Fast food joints and footpath eateries.

Marathon of trains, buses, cars, trucks, three-wheeler autos,

bicycles, cart pullers, pedestrians, bullock carts, etc.

Negligible discipline in lane crossing, overtaking, speed limitand honking remains the order of the day.

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Six Sigma

CODING SYSTEM : Mainreasonoferror-freedelivery

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Six Sigma

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Questions/Queries?Questions/Queries?

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Six Sigma

Client, Enterprise & Competitive Intelligence for Product, Process & Systems InnovationDr. Rick L. Edgeman, University of Idaho

IXEnd Of Session

THANKYOU

S IGMASAccman Institute of Management