Dr.RAMESH LAKHE,SQMS,NAGPUR( Iss/Rev.:01/00 Dt.28.07.16) S I X S I G M A A n A w a r e n e s s P r o g r a m m e Dr.RAMESH LAKHE,SQMS,NAGPUR( Iss/Rev.:01/00 Dt.28.07.16)

Learning Objectives At the end of the training and certification process, the Six Sigma Green Belt’s will be able to: Identify, lead breakthrough projects and achieve significant results which impact the bottom-line. Implement the Six Sigma methodologies. Use basic statistical tools. Facilitate the Teams. Support BB in Six Sigma deployment.

Six Sigma: An Awareness A w a r e n e s s T o u r Six Sigma : Introduction Six Sigma: The History Six Sigma: The Philosophy Six Sigma: The Statistical Representation Six Sigma: The Deployment & Benefits

Six Sigma: The Introduction

Cost of Poor Quality Organisation Ocean Prevention Cost Appraisal Cost Lost Management Cost Organisation Ocean Maintenance Cost Lost Business, Goodwill cost Rerun Cost Project Rework Cost Lost Opportunity, Lost Assets Cost Lost Credibility Cost

Six Sigma A Management driven, scientific methodology for product and process improvement which Reduces Cost of Poor Quality, Process Variation & Defect Rates and creates breakthroughs in Quality, Cost performance and Customer satisfaction Customer Satisfaction + Efficient Systems = Improved Profitability

What is Good Quality ?…… 99% ?? 99% Quality means……… 5000 incorrect surgical operations per week ! 200,000 wrong drg prescriptions each year ! 2 Short or Long landings at Airport each day ! Unsafe Drinking Water for 15 min/day ! 20,000 lost artcles of mail per hour ! No electricity for 7 hrs per month !

WHAT IS SIX SIGMA Classical view on Quality 99% Good (3.8 Sigma) The Six Sigma view of Quality 99.99966% Good (6 Sigma) 20,000 lost articles of mail per hour Seven articles lost per hour Unsafe drinking water for almost 15 minutes each day One unsafe minute every seven months 5,000 incorrect surgical operations per week 1.7 incorrect operation per week Two short or long landings at most major airports each day One short or long landing every five years 600 new policies / month delivered with errors 1 new policy delivered with errors every 5 months 180,000 lost calls each year 61 lost calls each years No electricity for almost seven hours each month One hours without electricity every 34Years

Six Sigma: The History

Six Sigma: History ????!!! Motorola 1/20 th of Defects !! Motorola’s Quassar TV set plant in US sold to Japanese for the reasons of poor Productivity & Yield started doing extremely well under Japanese management !!! TV sets were produced with 1/20th the no. of defects that were produced by Motorola ! They did this using the same workforce, technology & design… making it clear that the problem was Motorola’s management ! Quassar TV Plant

full scale on Six Sigma…!! Six Sigma: History A Paper by Bill Smith…. If a product was found defective & corrected during the production process, other defects were bound to be missed and found later by the customer during early use of the product…. However, when the product was manufactured error free, it rarely failed during early use by the consumer….... In 1985, Bill Smith, an engineer at Motorola presented a paper which concluded that…. In 1986, Motorola went full scale on Six Sigma…!!

BENEFITS AT GENERAL ELECTRIC Ten-fold increase in the life of CT scanner X-ray tubes in their medical devices section Improved yield resulting in increased capacity without additional investments at Superabrasives their industrial diamond business

Sixty-two percent reduction in turnaround time at the repair shops of their railcar leasing business Addition of 300 million pounds worth of new capacity. This was equivalent to adding a new plant. Linked bonuses to six sigma introduction

The Development of Six Sigma Jack Welch launched Six Sigma at GE in Jan,1996 1998/99 - Green Belt exam certification became the criteria for management promotions 2002/03 - Green Belt certification became the criteria for promotion to management roles GE the company that perfected Six Sigma

Companies Adopting six sigma Du Pont, Ford,Hero Motors, HDFC, Infosys,Wall Street,Cummins Mumbai Dubbawalla---better than 6 sigma---2,00,000 tiffin boxes per day by 5000 dabbawalls to different parts of mumbai Picki up-bus-local-bus-destination—change of hands Errors reported 1 in 60,00,000 deliveries 6.6 sigma level Coding system Prince Charles---invited for marriage in 2005

Six Sigma: The Philosophy

Philosophy: make fewer mistakes in all that we do Is about the abatement of risk in everything a business does or delivers. All defects or errors represent risk but not all forms of risk can be characterized in terms of defects. Is a new science of doing business based on data driven factual approach Uses methodology Six Sigma Problem Solving (DMAIC) Design for Six Sigma (DFSS: Design For Six Sigma)/(DMADV:De) Is management based on PDCA principle

Statistical Representation Six Sigma: Statistical Representation

Std. Devn. Variation = (Xi-Xbar) Deviation  Sigma () n-1 Variance What is Sigma ( ) ? A Greek symbol for measuring performance variation Eg. Xi = 10, 12, 14 (Mean)Xbar = 12 n: No. of Readings Here: 3 Std. Devn. 2 Variation = (Xi-Xbar) Deviation  Sigma () n-1 Variance

LSL: Lower Specification Limit, USL: Upper Specification Limit What is 6 Sigma ? A < 3  Situation Cp<1 Parts out of Specs LSL Target (Process Mean) USL LSL: Lower Specification Limit, USL: Upper Specification Limit

What is 6 Sigma ? A 3  Situation Cp=1 All in Specs LSL Target USL

What is 6 Sigma ? A 6  Situation Cp=2 Only 50% of tol. used LSL Target USL

What is 6 Sigma ? Process Shift Without LSL USL -6 -2 -1 +1 +2 +3 +4 +5 +6 -5 -4 -3 Xbar Spec Limit Percent Defective ppm ± 1 68.27 3,17,300 ± 2 95.45 45,500 ± 3 99.73 2,700 ± 4 99.9937 63 ± 5 99.999943 0.57 ± 6 99.9999998 0.002

1.5 Shift: Rational As the process is not perfect, there is consideration of 1.5shift. Now in most cases, the process mean doesn’t stay exactly in the centre of the specification limit. The actual location of the mean is closer to one side than the other. This is called the Shift of the Mean

What is 6 Sigma ? With ± 1.5 Shift LSL USL -1.5 +1.5 LSL USL -6 -2 -1 +1 +2 +3 +4 +5 +6 -5 -4 -3 Xbar Spec Limit Percent Defective ppm ± 1 30.23 6,97,700 ± 2 69.13 3,08,700 ± 3 93.32 66,810 ± 4 99.3790 6,210 ± 5 99.97670 233 ± 6 99.999660 3.4

Process Performance Levels CAPABILITY REJECTIONS NO SHIFT WITH SHIFT OF 1.5 SIGMA SIGMA QAULITY LEVEL Cp = 2.00 0.002 PPM 3.4 PPM 6 12  Cp = 1.66 0.57 PPM 5 233 PPM 10  4 63 PPM 6,210 PPM Cp = 1.33 8  Cp = 1.00 2700 PPM 3 66,807 PPM 6  LSL USL NOTE :  

Sigma Level: Tabular Representation DEFECT RATE (PPM) COST OF POOR QUALITY(% OF SALES) COMPETITIVE LEVEL 6σ 3.4   < 10% WORLD CLASS 5σ 233 10%- 15% 4σ 6210 15%- 2% INDUSTRY AVERAGE 3σ 66807 20%-30% 2σ 308537 30%-40% NON-COMPETITIVE 1σ 690000 > 40%

SIX SIGMA IMPLEMENTATION HELP TO REDUCE VARIATION TO REDUCE DEFECTS/DEVIATIONS TO IMPROVE YIELD/PRODUCTIVITY TO ENHANCE CUSTOMER SATISFACTION TO IMPROVE THE BOTTOMLINE

This is What , is 6 Sigma ? If the Pilot can always land the Aircraft within 50% of Runway area…… He is of Six Sigma Quality ! 50% of Tol Band Target LSL USL

Organization & Benefits Six Sigma: Organization & Benefits

Six Sigma: Organization Champion Master Black Belt Black Belts Green Belts

Six Sigma: Roles & Responsibility  Champions Senior management Promotion and integration of Six Sigma implementation across the organisation. Master Black Belts (Normally Executed/leaded 10+ Projects ) assist champions and mentor Black Belts and Green Belts. May be external or Internal consultants ensuring that Six Sigma techniques are applied consistently and correctly.  

Black Belts (Normally Executed/Leaded 5+ Projects) operate under the guidance of a Master Black Belt, delivering the Six Sigma projects. train and mentor the green belts  Green Belts (Normally Fresher/1-2 Projects) employees who take up Six Sigma implementation along with their other job responsibilities, under the guidance of Black Belts as part of the Six Sigma project. are trained in most of the tools outside of advanced statistical techniques.  Yellow Belts Not always designated, but if so, these are employees within the target areas used to implement, monitor and control the improved processes. Training in basic Six Sigma awareness

APPLICATION BENEFITS OF SIX SIGMA Six sigma can be applied to various sectors like Manufacturing and Service with various specializations like Mechanical, Chemical, Electrical, Engineering Design, Computer Science, IT etc. Benefits- Generates sustained success Sets a performance goal for everyone Maximize Product/Service Quality. (Develop Close to Zero Defect Products/Services) Increase Sales Increase overall Organizational Productivity Reduce Waste Save Costs Make the Organization a Data-driven organization Faster Cycle Time Empower Employees Enhances value to customers Accelerates the rate of improvement Promotes learning and cross-pollination Executes strategic change etc.

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