Welcome To All For a Training & Development Session On
Six Sigma 29th Of July, 2012
1
What is Six Sigma ?
2
Why Six Sigma ?
Cost Quality
Customer Satisfaction
Competitive Advantage Bottom Line
3
Contd…
Intense competitive pressures Greater consumer demand for high quality products and services. Costs of poor quality.
4
Sigma and % accuracy
Defects per Million Opportunities 691,500 308,500 66,810 6,210 233 3.4 0.020 % Accuracy
One Sigma Two Sigma Three Sigma Four Sigma Five Sigma Six Sigma Seven Sigma
30.85% 69.15% 93.32% 99.38% 99.977% 99.9997% 99.999998%
5
Why not Four Sigma or 99.379% ?
Every hour the postal service would lose 20,000 pieces of mail Every day our drinking water would be unsafe for almost 15 minutes Every week there would be 5,000 surgical operations that go wrong in some way Every month we would be without electricity for almost seven hours
6
Inventor of Six Sigma
Motorola is known for its cool cell phones, but the company's more lasting contribution to the world is the quality-improvement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of „Six Sigma‟.
7
Six Sigma at Motorola
Motorola has reported over US$17 billion in savings from Six Sigma as of 2006, reflecting hundreds of individual successes in all Motorola business areas including: Sales and Marketing Product design Manufacturing Customer service Transactional processes Supply chain management
8
General Electric: What Is Six Sigma?
“Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services”. It was introduced by Jack Welch by the late 1990s. Saved $750 million by the end of 1998 and $2 billion to the bottom line in 1999 alone. Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity
9
Honeywell International (F-Allied Signal): Six Sigma Plus
“Six Sigma is one of the most potent strategies ever developed to accelerate improvements in processes, products, and services, and to radically reduce manufacturing and/or administrative costs and improve quality. It achieves this by relentlessly focusing on eliminating waste and reducing defects and variations. Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999. Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months. 10
Six Sigma Team
Executive Leadership
• Project owner • Implement solutions • Black Belt managers
• Own vision, direction, integration, results • Lead change
• Part-time • Help Black Belts
Project Champions Green Belts
• Full time • Train and coach Black and Green Belts • Statistical problem solving experts
Master Black Belts
Black Belts
• Devote 50% - 100% of time to Black Belt activities • Facilitate and practice problem solving • Train and coach Green Belts and project teams
11
Six Sigma Methodology (DMAIC)
Define
Measure Control
Analyse Improve
12
DMAIC Steps 1. Define
1. Define
2. Measure 3. Analyze 4. Improve 5. Control
Define process improvements goals. Goals should be consistent with the Customer demands and Enterprise strategy.
13
DMAIC Steps 2. Measure
1. Define
5.0 Control
2. Measure
3. Analyze
4. Improve
5. Control
Measure key aspects of the current process. Measure current level of quality into Sigma. Collect relevant data.
14
DMAIC Steps 3. Analyse
1. Define 2. Measure
3. Analyse
4. Improve
5. Control
Analyze the data to verify cause-and-effect relationship. Give attempt to ensure that all the factors have been covered.
3.0 Analyze
15
DMAIC Steps 4. Improve
1. Define 2. Measure 3. Analyse
4. Improve
5. Control
Pursue a method to resolve and ultimately eliminate problems. Carryout a trial run for a planned period of time.
16
DMAIC Steps 5. Control
1. Define 2. Measure 3. Analyse 4. Improve
5. Control
Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.
17
Some Example’s
A Dabbawala is a person in the Indian city of Mumbai whose job is to carry and deliver freshly made food from home in lunch boxes to office workers. Dabbawalas pick up 175,000 lunches from homes and deliver to their customers everyday. Only one mistake is made in every 6 million deliveries. Accuracy rating is 99.999999. More than Six Sigma.
18
Contd….
Airtel‟s Pareto Study – 20% & 80% relationship. Data mining on the usage patterns, it created innovative promotions for specific users Problems faced were: No response to complain made Wrongly charged in the bill Network problem, unnecessary Sms‟s
19
Contd….
Improved customer care at vodafone
20
Lets Conclude
21
CASE STUDY
22
Improvements…
Complaint Resolution Order Implementation Invoice submission
NOC complaint resolution
23
ROLE PLAY
24
GAME
25
Thank you
Have A Nice Day
26