I NTRODUCTION TO S IX S IGMA Business Process Improvement through Six Sigma One can not manage tomorrow's business with yesterday’s methods

Slide 2 T HE NORMAL DISTRIBUTION CURVE

Slide 3 Six-Sigma Quality

Slide 5 9 R ELATING S IGMA TO D EFECT L EVELS SIGMADPMOERROR FREE RATECOMPARATIVE POSITION % WORLD LEADER % BEST IN INDUSTRY 46, % INDUSTRY AVERAGE 366,80793 % UNDER INDUSTRY AVERAGE 23,08,53769 % NON- COMPETITIVE 16,90,00031 % OUT OF BUSINESS

Slide 6 E VOLUTION OF S IX SIGMA Motorola pioneered concept of six sigma Bill Smith, a reliability engineer is the originator of concept and CEO of Motorola Robert Galvin was impressed by it and introduced it

Slide 7 E VOLUTION OF S IX SIGMA The recognized benchmark for Six sigma implementation is General Electric. GE under leadership of Jack Welch has achieved tremendous success. It has resulted in 10 fold increase in the life of CT scanner X-ray tubes, a 400 percent improvement in return on investment in its industrial diamond business, a 62 percent reduction in turnaround time at railcar repair shops, and $400 million in savings in its plastic business.

E VOLUTION OF S IX S IGMA AT W IPRO Wipro is the first Indian company to adopt Six Sigma. As the pioneers of Six Sigma in India, Wipro has already put around ten years into process improvement through Six Sigma. Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects.

Six sigma is an umbrella initiative covering all business units and divisions so that it could transform itself in a world class organization. At Wipro, it means Have products and services meet global benchmarks Ensure robust processes within the organization Consistently meet and exceed customer expectations Make Quality a culture within.

Slide 10 W HAT IS S IX S IGMA ? Six Sigma is a statistical measure of quality: A Process for Continuous Improvement:. An Enabler of Cultural Change: A disciplined process focused on delivering near perfect products and services.

The central idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible. Six Sigma is the business strategy and a philosophy of one working smarter not harder.

S IX S IGMA : A D EFINITION “A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and reinventing business processes.” The Six Sigma Way, by Pande, Newman and Cavanaugh

Slide 13 S IX S IGMA IS A MEASURE OF EXCELLENCE Six Sigma is a statistical measure of quality, which reflects process capability; It sets the goal of achieving capability levels of 3.4 defects per million opportunities. Focuses on driving out variation in business processes - this is what the customer feels! Sigma is the Greek symbol used for Standard Deviation of a population. 

Slide 14 O BJECTIVES OF S IX S IGMA Y = f (X) Y refers to Strategic goals, Customer requirements, Profits, Customer satisfaction, Overall business efficiency etc. X refers to Essential actions refers to achieve strategic goals, Process variables, other inputs To figure out which of the Xs or variables in the business process and inputs have the biggest influence on the Ys or results. To use the changes in the overall performance of the process (The Ys as well as other factors) to adjust the business and keep it moving on a profitable path.

S OME OF THE KEY CHALLENGES OR OBJECTIVES INVOLVED IN WIPRO WERE : · Reduce the data transfer time · Reduce the risk · Avoid interruption due to LAN/WAN downtime. · Parallel availability of the switch for the other administrative tasks during the same period

Slide 16 T HE STATISTICAL BASIS FOR S IX S IGMA Sigma means standard deviation which indicates dispersion. It is the best measurement of process capability. Smaller the deviation value, the less variability in the process. According to Six-sigma philosophy processes rarely stay centered and tend to shift above or below the target.

Slide 17 T HE STATISTICAL BASIS FOR S IX S IGMA Defect: Any mistake or error that is passed on to the customer is called defect or non-conformance. DPU: It is the ratio of number of defects discovered to number of units produced. DPMO: Six sigma concepts redefines quality performance as defects per million opportunities.

Slide 18 T HE STATISTICAL BASIS FOR S IX S IGMA The statistical aspect of Six-sigma says that the process variability must be reduced and process must be kept centered on target. If the process mean can be can be controlled to within 1.5 standard deviations of target, a maximum of 3.4 defects per million can be expected.

Slide 19 S IX S IGMA S UPPORT S TRUCTURE Champions: Sponsors/Process Owners: Master Black Belts: Black Belts: Green Belts: Steering committee:

S IX S IGMA C ONSULTANCY AT W IPRO :

Slide 22 DMAIC M ETHODOLOGY 1. Define 2. Measure 3. Analyze 4. Improve 5. Control

I MPLEMENTATION OF S IX S IGMA AT W IPRO. Wipro has adopted the project approach for Six Sigma, where projects are identified on the basis of the problem areas under each of the critical Business Processes that adversely impacts the business significantly.

Wipro has evolved following Six Sigma methodologies For developing new processes DSSS+ Methodology DSSP Methodology DCAM Methodology For Improving Existing Processes TQSS Methodology DMAIC Methodology For Reengineering CFPM Methodology

R EAPING THE B ENEFITS IN WIPRO : The financial gain that Wipro has achieved by using Six Sigma has been one of the high points. The Six Sigma process resulted in an achievement of close to 250%, 6 minutes for 1 MB transfer and 18 minutes for average data transfer.

T OWARDS THIS, S IX S IGMA CONCEPTS HAVE PLAYED AN IMPORTANT ROLE IN : Improving performance through a precise quantitative understanding of the customer’s requirements thereby bringing in customer focus Improving the effectiveness in upstream processes of the software development life cycle by defect reduction (software defects reduced by 50%) and cycle time reduction (rework in software down from 12% to 5%). Waste elimination and increased productivity up to 35% Cost of failure avoidance (installation failures down from 4.5% to 1% in hardware business). Tangible cost savings due to lower application development cost for customer.

F UTURE F OCUS AND C HALLENGES :

CONCLUSION: Introduction and evolution What is six sigma? Statistical basis & objectives Support system DMAIC

C APABILITY M ATURITY M ODEL The Capability Maturity Model (CMM) in software engineering is a model of the maturity of the capability of certain business processes. software engineeringbusiness processes A maturity model can be described as a structured collection of elements that describe certain aspects of maturity in an organization, and aids in the definition and understanding of an organization's processes.

M ATURITY MODEL A maturity model can be described as a structured collection of elements that describe certain aspects of maturity in an organization. A maturity model may provide, for example :structured a place to start the benefit of a community’s prior experiences a common language and a shared vision a framework for prioritizing actions a way to define what improvement means for your organization.

L EVELS OF THE C APABILITY M ATURITY M ODEL Level 1 - Ad hoc (Chaotic) Level 2 - Repeatable Level 3 - Defined Level 4 - Managed Level 5 - Optimizing