Six sigma Introduction Prepared & Presented By:-Six Sigma Team

expectations Awareness with respect to origin and history of Six Sigma Including understanding of variations The utility and benefits Introduction to Six Sigma as methodology The Six Sigma organization

What is Sigma (  )? Sigma is a letter in the Greek Alphabet Sigma is a symbol which shows the degree of variation in a process (standard deviation) How close are you to meeting your target?

Six Sigma Six sigma is about reducing variations in a process Customer Happy

Understanding Variation Higher σ = less variation = fewer defects = better performance Lower Specification Limit (LSL) Upper Specification Limit (USL) 6 σ process

Sweet Fruit – 6  Design for Six Sigma (DFSS) Bulk of Fruit – 4 to 5  Process Improvement Six Sigma Tools Low Hanging Fruit – 3 to 4  Ground Fruit – Up to 2  Logic and Intuition + Basic Quality Tools Process Entitlement DMAIC What is Six Sigma ?

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The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola Late 1970s - Motorola started experimenting with problem solving through statistical analysis Motorola officially launched it’s Six Sigma program Origin of Six Sigma Motorola the company that invented Six Sigma Motorola

Jack Welch launched Six Sigma at GE in Jan, /99 - Green Belt exam certification became the criteria for management promotions 2002/03 - Green Belt certification became the criteria for promotion to management roles The Growth of Six Sigma GE the company that perfected Six Sigma GE

The Growth of Six Sigma

Traditional Six Sigma Quality programme Business strategy Mainly involve quality department Involves everyone, including management Focuses on processes which create or eliminate defects Focus on defects Focus on training Focus on application & ROI project oriented Driven by Voice of Customer Driven by Cost of Quality Six Sigma vs. Traditional Quality…

SIX SIGMA COMPARISON Six Sigma Traditional “SIX SIGMA TAKES US FROM FIXING PRODUCTS SO THEY ARE EXCELLENT, TO FIXING PROCESSES SO THEY PRODUCE EXCELLENT PRODUCTS”

Postal System 20,000 lost articles of mail/hour 7 lost articles/hour Airline & Railway Systems 2 short/long landings/day 1 short/long landing/5 years 16 Railway accidents per day 2 Railway accidents per year Medical Profession 200,000 wrong drug prescriptions/yr68 wrong drug prescriptions/yr IT System Out of every 500,000 4,100 crashes <2 crashes computer restarts: 4,100 crashes <2 crashes 99% Good (4S) % Good (6S) Practical Meaning of Six Sigma Performance

The Six Sigma Vision… …Engage COPQ Company wins – costs down, profits up Employee wins – trained, valued, engaged Customer wins – excellent quality

What is a six sigma Philosophy? Introducing change means to challenge the “old guard” personal and organizational paradigms Philosophy: Reduce non-added value activities / variation in your business and take customer-focused, data driven decisions: “Positive thinking” + “Thinking out of the box”

Philosophy of Six Sigma… Develop products and services: BETTER FASTER LOWER COST Aggressively attack cost of poor quality (COPQ) Apply to All business processes!!! Focus on Quality with Hard Savings ($$$) and Soft Savings (Time) Focus on Quality with Hard Savings ($$$) and Soft Savings (Time)

Why Six Sigma at BB?... Market Price for Product or Services Produced COPQ = Cost of Poor Quality Reducing waste (COPQ) will increase profits…you can lower the cost of a product to the customer, thus giving you competitive advantage. Using Six Sigma tools can allow us to reduce our price to gain more market share. Results from Deploying Six Sigma World Class Process Capability Now Driving World Class Quality Theore tical Costs: Cost of doing things correct Waste (COPQ) Profit Theoretical Costs: Cost of doing things correctly the first time …we have a comfortable Profit Total Price Charged to the Customer for Products & Services Total Cost to Produce or Provide Services Profit Actual Profit & Cost Breakdown Waste (COPQ) Profit Theoretical Costs: Cost of doing things correctly the first time

A Target To Achieve Zero Defects A Problem SolvingApproach Data Driven Decisions InvolvesEveryone Tools and Methods A Business Strategy A Culture All functions, not just Ops Voice of Customer Six Sigma in simple words… … BETTER & FASTER at LOWER COST

Six Sigma Methods Six Sigma Everywhere MFG. DESIGN SALES / MKTING PURCH. MAINT. ADMIN. QA

Common Six Sigma Project Areas [Big Ys] Manufacturing Defect Reduction / Manufacturing efficiency Cycle Time Reduction Cost Reduction Inventory Reduction Product Development and Introduction Increased Utilization of Resources Product Sales Improvement Capacity Improvements Delivery Improvements

DMAIC Six Sigma Improvement Methodology DMAIC

The Approach Practical Problem Statistical Problem Statistical Solution Practical Solution

D Define M Measure A Analyze I Improve C Control Identify and state the practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution Methodology

Project Strategy… …your road map DEFINE MEASUREANALYZE IMPROVECONTROL Team readiness Customers and CTQs Team Charter Business process map Key measures identified Data collection completed Variation displayed Performance baseline Sigma level calculated Data & process analysis Root cause analysis Quantify Gap/ Opportunity Test possible solutions Select best solution Implementation plan Monitoring plan Process standardised Documented procedures Response plan Transfer ownership Phase Deliverables DMAIC – Provides structure with established checkpoints

Six Sigma Organization

Six Sigma - Three Dimensions Tools Organization Methodology Process variation LSLUSL Upper/Lower specification limits Regression Driven by customer needs Enabled by quality team. Led by Senior Mgmt Define Measure AnalyzeImproveControl Process Map Analysis Pareto Chart

Six Sigma Organization Site Leader Champion/Sponsor Master Black Belt Black Belt Team Members Yellow Belt Team Members Yellow Belt Green Belt Quality Leader/Six Sigma Coordinator Black Belt Green Belt Team Members Yellow Belt Team Members Yellow Belt Team Members Yellow Belt Team Members Yellow Belt Team Members Yellow Belt Team Members Yellow Belt External Consultant

It’s just the beginning! Thank U Good Luck Statistical Analysis through Minitab / SPC-XL / Sigma XL