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Six Sigma :Benefits to Organizations

Presentation by

Benchmark Six Sigma



Six Sigma Implementation

Six Sigma has:

Given organizations a new way of doing business

Enabled them to have a wise application of statistical tools within a

structured methodology Enabled repeated application of strategy to individual projects

Complete projects that have had a substantial impact on the µbottom

line¶(profit) as well as the µtop line¶(revenue)



Six SigmaMethods Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

M & S

IT

Where has Six Sigma been applied?



Examples of µSix Sigma¶ companies



Six Sigma:GE Success Story

³the most important initiative GE hasever undertaken´. Jack Welch

Chief Executive Officer General Electric

In 1995 GE mandated each employee to work towards achieving 6

sigma

The average process at GE was 3 sigma in 1995

In 1997 the average reached 3.5 sigma

GE¶s goal was to reach 6 sigma by 2001in critical processes

From 1998 onwards GE realized benefits worth 2billion USD. GE was the first company to Implement Six Sigma in services and

also in offshoring.



GE Service company - examples

Approving a credit card application

Installing a turbine

Lending money

Servicing an aircraft engine

Answering a service call for an appliance

Underwriting an insurance policy

Developing software for a new CAT product

Overhauling a locomotive



Six Sigma:Motorola Success Story

Following was the statement made by Robert W Galvin, Chairman of

the Executive Committee, Motorola. This statement was made after

first decade of Six Sigma Experience.

³ At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete

actions«.

How has the use of statistical methods within Motorola Six Sigma

initiative, across disciplines, contributed to our growth? Over the

past decade we have reduced in-process defects by over 300

fold , which has resulted in cumulative manufacturing cost

savings of over 11 billion dollars´*.



Six Sigma:AIRTEL Success Story

In 2002 Bharti group ( Airtel) launched Six Sigma

It has since than successfully applied Six Sigma in all its businesses

and has realized savings worth billions of rupees.

Six Sigma is an Integral part of its DN A with a dedicated team at

each of itsC

ircles. Airtel¶s basic services businesses yielded 250% return on Investment

in the first year of implementation itself.

There are more than 150 Black Belts working in the entire group



Six Sixma: Success Stories from diverseIndustries

10

Qualtec¶s Services

Six Sigma deploymentcreated

Breakthrough

Performance,

Captured Cost Savings

Customer Delight

Projects ±Insurance

Lending

Securities

Fortune 50 Global Co.

Power Steering

CIO recognized the

need to get real-time

information from his

global team

on the rationale and

status for all his

significant projects and

over 500 projects

in 27 countries.

Benefits -CIO - We have savedover $500 million dollarsfrom 500 Six Sigma

Projects

LG Electronics -England

Order Lead Time Reduction

From 55 to 41 days

Improving Forecast accuracy

Inbound lead time reduction

from 8 days to 6days

Savings fromInterest Charges

Stock amount

Freight Charges

Benefits -

Increased Brand

Image

Enhanced Customer

Satisfaction

Savings USD 850K

Benefits -We have saved over

$20 million dollars insavings in two yearsof using Six SigmaQualtec's services!"- Max Gordon,

Navistar

Savings



Some other companies that have achieved success



Industry Wise Success Stories

Banking: Bank of America, American Express, HDFC, HSBC

ITES: ICICI OneSource, Accenture, Satyam BPO, IBM Daksh

Hospitality: ITC Hotels, GRT Hotels, Apollo Hospitals

Manufacturing: Wipro, Nestle, Samtel, Samsung

Retail: Reliance Retail

Telecom: Bharti Cellular, Vodafone, Siemens, Tata

IT: Wipro, Satyam, Acenture, Infosys, TCS, Birlasoft

C ompanies in almost all sectors have a Six Sigma success story

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