1. Six Sigma Forum Six Sigma – A Strategy for Achieving World Class Performance

2. What Is Six Sigma? Sigma is a letter in the Greek Alphabet
Degree of variation;
Level of performance in terms of defects;
Statistical measurement of process capability;
Benchmark for comparison;
Process improvement methodology;
It is a Goal;
Strategy for change;
A commitment to customers to achieve an acceptable level of performance

3. Six Sigma Definitions Business Definition Technical Definition
A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per million opportunities.

4. Sigma Level
Defects Per Million Opportunities
Rate of Improvement
1 
690,000
2 
308,000
2 times
3 
66,800
5 times
4 
6,210
11 times
5 
230
27 times
6 
3.4
68 times

5. Who is Implementing Six Sigma
At least 25% of the fortune 200 claim to have a serious six sigma program - Michael Hammer.
Financial - Bank of America, GE Capital, Electronics - Allied Signal, Samsung, Sony
Chemicals - Dupont, Dow Chemicals
Manufacturing - GE Plastics, Johnson and Johnson, Motorola, Nokia, Microsoft, Ford.
Airline - Singapore, Lufthansa, Bombardier
And hundreds of others in Americas, Europe, Sub Continent.

6. Six Sigma Project Methodology
Control
Define
Measure
Analyze
Improve
Establish standards to maintain process;
Design the controls, implement and monitor.
Evaluate financial impact of the project
Identify, evaluate and select projects for improvement
Set goals
Form teams.
Collect data on size of the selected problem,
identify key customer requirements,
Determine key product and process characteristic.
Analyze data, establish and confirm the “ vital few “ determinants of the performance.
Validate hypothesis
Improvement strategy
Develop ideas to remove root causes
Design and carry out experiments,
Optimize the process.
Final solutions
Project Phases

7. Define - Critical to Quality (CTQ)
Focus on customers generating annual revenue of USD 400,000/-.
Customer needs
Improved delivery performance
Level 1 CTQ
Timely delivery
Level 2 CTQ
On time delivery to schedule
Level 3 CTQ
Delivery within +/- 1 hour of scheduled delivery time
Current process sigma level or DPMO

8. Define - Goal Statement
Reduce number of delayed deliveries by 50 % by 31st December Y 2002 to better meet customer requirement of timely delivery defined as within +/- 1 hour of scheduled delivery.

9. Measure and Analyze
Driver and Distance identified as key factors influencing delivery performance.
Driver selected for focus.
Potential root causes as to why Driver influenced the time:
Size of the vehicle
Type of engine
Type of tyres
Fuel capacity

10. Improve
Experiments designed and conducted using truck type and tyre size.
Findings:
Larger tyres took longer time at certain routes where area was cramped and time lost in maneuvering.
High incidence of tyre failures since tight turns led to stress on tyres thus increasing number of flat tyres.
Team modified planning of dispatch process by routing smaller trucks at more restrictive areas.

11. Control Test implementation.
Process sigma level up from 2.43 or DPMO to 3.94 or 7353 DPMO.
Performance still fell short of best in class or 2400 DPMO.
Improvement led to significant customer satisfaction.
Process continually monitored and data on new cycle times, tyre failure collected as per defined methods and frequency, analysed and monitored.
Customer satisfaction measured and monitored.

12. Key Lessons Learnt Define Measure
Difficulty in identifying the right project and defining the scope;
Difficulty in applying statistical parameters to Voice of the Customers;
Trouble with setting the right goals;
Measure
Inefficient data gathering;
Lack of measures;
Lack of speed in execution;

13. Key Lessons Learnt Analyse Improve Control
Challenge of identifying best practices
Overuse of statistical tools/ under use of practical knowledge
Challenge of developing hypotheses
Improve
Challenge of developing ideas to remove root causes
Difficulty of implementing solutions
Control
Lack of follow up by Managers/ Process Owners
Lack of continuous Voice of the Customer feedback
Failure to institutionalize continuous improvement.

14. What Makes Six Sigma Different?
Versatile
Breakthrough improvements
Financial results focus
Process focus
Structured & disciplined problem solving methodology using scientific tools and techniques
Customer centered
Involvement of leadership is mandatory.
Training is mandatory;
Action learning (25% class room, 75 % application)
Creating a dedicated organisation for problem solving (85/50 Rule).

15. Benefits of Six Sigma Generates sustained success
Sets performance goal for everyone
Enhances value for customers;
Accelerates rate of improvement;
Promotes learning across boundaries;
Executes strategic change

16. THANK YOU -PHARMA STREET