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Six Sigma-
Six Sigma is a business management strategy originally developed by Motorola, USA
in 1986. Six Sigma originated as a set of practices designed to improve manufacturing
processes and eliminate defects, but its application was subsequently extended to
other types of business processes as well.[

Six Sigma stands for Six Standard Deviations (Sigma is the Greek
letter used to represent standard deviation in statistics) from mean.
Six Sigma methodology provides the techniques and tools to
improve the capability and reduce the defects in any process.

[Standard deviation- It shows how much variation or "dispersion" there is from

the "average" (mean, or expected/budgeted value). Square root of variance-
*variance is of the squared deviation of that variable from its expected value or
mean]

Six Sigma seeks to improve the quality of process outputs by identifying and
removing the causes of defects (errors) and minimizing variability in
manufacturing and business processes.It uses a set of quality management
methods, including statistical methods, and creates a special infrastructure of
people within the organization. six sigma process is one in which 99.99966% of
the products manufactured are statistically expected to be free of defects (3.4
defects per million).

Six Sigma was heavily inspired by six preceding decades of quality improvement
methodologies such as quality control*, TQM*, and Zero Defects*

Earliest adopters Motorola(17$ villion savings), Honeywell, GE(general electric)-

jack welch

Six Sigma projects follow two project methodologies:

1. DMAIC is used for projects aimed at improving an existing business process.
D-efine the problem & opportunities
M-easure key aspects of the current process
A-nalyze the data to investigate
I-mprove or Optimise performance
C-ontrol performance
2. DMADV is used for projects aimed at creating new product or process designs.
aka DFSS(design for six sigma)
D- Define design goals
M- Measure & Identify CTQs(Characteristics Critical to quality)
A- Analyse to develop & design
D- esign details, optimize the design, plan to verify
V- Verify the design, set up pilot runs, implement the process

• Quality control is a process by which entities review the quality of all factors
involved in production. This approach places an emphasis on three aspects:
 1.Elements such as controls, job management, defined and well managed
processes, performance and integrity criteria, and identification of records
2.Competence, such as knowledge, skills, experience, and qualifications
3.Soft elements, such as personnel integrity, confidence, organizational culture,
motivation, team spirit, and quality relationships.

• TQM TQM is an integrative philosophy of management for

continuously improving the quality of products and processes.

TQM functions on the premise that the quality of the products and
processes is the responsibility of everyone who is involved with the
creation or consumption of the products or services offered by the
organization. In other words, TQM capitalizes on the involvement of
management, workforce, suppliers, and even customers, in order to
meet or exceed customer expectations

The main difference between TQM and Six Sigma (a newer concept) is the approach.
TQM tries to improve quality by ensuring conformance to internal requirements,
while Six Sigma focuses on improving quality by reducing the number of defects and
impurities

• Zero defects

Defect prevention is preferable to quality inspection and correction.

Criticism of "Zero Defects" frequently centers around allegations of extreme cost
in meeting the standard

1.5 sigma shift - Experience has shown that processes usually do not perform as
well in the long term as they do in the short term, after a period of time it becomes
4.5 sigma

2. Silver economy(Golden boomers)- Population aging is a challenge, and will

bring sweeping changes. Workforces, economies, and government-
supplied services around the world will change, and so will the needs of
the people they represent. The status quo is changing..

Summit discussion topics will include:

• Marketing and product development for an aging population;

• Working with aging workers to utilize the skills of retired people in
community economic development;
• Adapting and creating services to accommodate a different kind of
public;
• The changing role of seniors in the workforce and volunteer
organizations;
 • A global view of the trends and early indications that business and
community leaders can use to prepare for success in a Silver
Economy, and;
• Current academic research into topics that are emerging as vital to
success in a silver economy.
3. baby boomer effect- A baby boomer is a person who was born during the
demographic Post-World War II baby boom.(1946-1964). Returning G.I.’s
were getting married, starting families, pursuing higher education and buying
their first homes. With veteran’s benefits, the twenty-somethings found new
homes in planned communities on the outskirts of American cities. This
group, whose formative years covered the Great Depression, were a generation
hardened by poverty and deprived of the security of a home or job. Now
thriving on the American Dream, life was simple, jobs were plentiful and
babies were booming. The baby boom triggered a housing boom, consumption
boom and a boom in the labor force. Between 1940 and 1960, the nation’s
GDP jumped more than $300,000 million.
4. GI Bill of rights- that provided college or vocational education for returning
World War II veterans (commonly referred to as G.I.s)(Govt. Issue) as well as
one year of unemployment compensation. It also provided many different
types of loans for returning veterans to buy homes and start businesses.
5. Generation X, commonly abbreviated to Gen X, is the generation born after
the Western post–World War II baby boom ended. [1] While there is no
universally agreed upon time frame, [2] the term generally includes people born
in the 1960s and 70s, ending in the late 1970s to early 80s, usually not later
than 1982

6. Fortune 500- The Fortune Global 500 is a ranking of the top 500 corporations
worldwide as measured by revenue. The list is compiled and published
annually by Fortune magazine.
This is the top 10 as published in July 2010. It is based on the companies' fiscal year
ended on or before 31 March 2010.[2]

Rank Company Country Field

1 Wal-Mart Stores United States Retail
2 Royal Dutch Shell Netherlands† Petroleum
3 Exxon Mobil United States Petroleum
4 BP United Kingdom Petroleum
5 Toyota Motor Japan Automobiles
6 Japan Post Holdings Japan Diversified
7 Sinopec China Petroleum
8 State Grid China Power
9 AXA France Insurance
10 China National Petroleum China Petroleum

US List
1.Wal-Mart Stores(Michael duke)
2.Exxon Mobil
3.Chevron
4.General Electric jeff immelt (ex ceo -jack welch)
5.Bank of America
6.ConocoPhillips
7.AT&T
8.Ford Motor
9.J.P. Morgan Chase
10.Hewlett-Packard

* bofa, jp morgan, citigroup in commercial bank industry.

7. Other implementers of six sigma – vodafone, Amazon, cognizant, dell,

vodafone, ford, general electric, HCL, whirlpool, wipro, DHL, siemens,
staples, Xerox, Samsung, pepsico, LG, Bofa, merryl lynch

8. Information technology consulting (also called IT consulting, Computer

consultancy, Computing consultancy, technology consulting or business and
technology services) is a field that focuses on advising businesses on how best
to use information technology to meet their business objectives. In addition to
providing advice, IT consultancies often implement, deploy, and administer IT
systems on businesses' behalf, known as Outsourcing.

Once a business owner defined the needs to take a business to the next level, a
decision maker will define a scope, cost and a time-frame of the project [1]. The
role of the IT Consultancy company to support and nurture the company from the
very beginning of the project till the end, and deliver the project not only in the
scope, time and cost but also with a complete customer satisfaction[2].

Prereqs & planning-

* Project Scoping and Planning
The usual problem is that a business owner doesn't know the detail of what the
project is going to deliver until it is started the process. In many cases, the
incremental effort in some projects can lead to significant financial loss.
* Business Process & System Design
Regardless of whether the project is to launch a new product range or discontinue
unprofitable parts of the business, the change will have some impact on business
processes and systems. The documentation of your business processes and system
requirements are as fundamental
* Project Management Support
The most successful business projects are always those that are driven by an
employee who has the authority, vision and influence to drive the required
changes in a business. It is highly unlikely that a business owner (decision maker
or similar) will realize the changes unless one has one of these people in the
employment.eg contractors, solutions.

fixed fee IT consulting is for a specific amount of work, within a defined

timeframe.

Many companies are now moving towards a fixed priced IT consulting model.

This trend is expected to continue as more companies now require delivery of IT

Consulting services within a defined time and price structure.
 Open ended consultancy models generally favour the consulting firm, as the
consultancy firm is rewarded on a per day basis, there is no incentive to complete
assignments within a fixed time. The result often being project overruns and
significant cost overrun.

There are few IT companies providing fixed fee IT consulting services. Those
who do provide a fixed alternative are increasing revenues year on year. This has
resulted in a revenue increase of some 600% over the previous year.

Asian- HCL, Genpact, Patni, Infosys, L&T, mphasis, Oracle, patni, tech
mahindra, TCS, Wipro, mahindra satyam

European- Accenture, Capgemini(paris), siemens(germany)

American- accenture, cognizant, deloitte, Ernst& young, HP, IBM

9. Outsourcing is often viewed as involving the contracting out of a business

function - commonly one previously performed in-house - to an external
provider. In this sense, two organizations may enter into a contractual
agreement involving an exchange of services and payments.

Reasons
1. Cost savings- labor arbitrage" generated by the wage gap between industrialized
and developing nations
2. Focus on Core Business -often organizations outsource their IT support to
specialised IT services companies.
3. Contract — Services will be provided to a legally binding contract with financial
penalties and legal redress. This is not the case with internal services
4. Tax Benefit — Countries offer tax incentives to move manufacturing operations to
counter high corporate taxes within another country.
5. Access to talent — Access to a larger talent pool and a sustainable source of skills,
in particular in science and engineering

Types
1. BPO
2. KPO
3. RPO(recruitment)
4. EPO(engineering)- architecture, engg & construction
5. LPO(legal)

Problems
1. Management process
2. security
3. language skills
4. Quality of service
5. Public opinion/labor standpoint

10. Management Consulting:- Management consulting indicates both the

industry and practice of helping organizations improve their performance
primarily through the analysis of existing business problems and development
 of plans for improvement. Consultancies may also provide organizational
change management assistance, development of coaching skills, technology
implementation, strategy development, or operational improvement services

1. Large, diversified organizations that offer a range of services, including

information technology consulting, in addition to a strategy consulting practice
(e.g. Accenture, Deloitte, Ernst & Young). Some very large IT service
providers have moved into consultancy as well and are also developing
strategy practices (e.g. IBM, Tata Consultancy Services, Infosys).

Management and strategic consulting specialists that offer primarily Strategy

Consulting and Business Intelligence Models to any industries (e.g. McKinsey &
Company, The Boston Consulting Group, Bain & Company). Top management
consulting groups in US

Dividends are payments made by a corporation to its shareholder

members. It is the portion of corporate profits paid out to
stockholders.[1] When a corporation earns a profit or surplus, that
money can be put to two uses: it can either be re-invested in the
business (called retained earnings), or it can be paid to the
shareholders as a dividend. Many corporations retain a portion of
their earnings and pay the remainder as a dividend.

11. assets are economic resources. Anything tangible or intangible that is capable
of being owned or controlled to produce value and that is held to have positive
economic value is considered an asset. Simply stated, assets represent
ownership of value that can be converted into cash (although cash itself is also
considered an asset).

The balance sheet of a firm records the monetary value of the assets owned by the
firm. It is money and other valuables belonging to an individual or business.Two
major asset classes are tangible assets and intangible assets. Tangible assets
contain various subclasses, including current assets and fixed assets.Current assets
include inventory, while fixed assets include such items as buildings and
equipment.

Intangible assets are nonphysical resources and rights that have a value to the firm
because they give the firm some kind of advantage in the market place. Examples
of intangible assets are goodwill, copyrights, trademarks, patents and computer
programs,and financial assets, including such items as accounts receivable, bonds
and stocks.
12.

A request for proposal (RFP) is a document that an organization

posts to elicit bids from potential vendors for a product or service.
For example, a new business or a business moving from a paper-
based system to a computer-based system might request proposals
for all the hardware, software, and user training required to
establish and integrate the new system into the organization.
Another business might draft an RFP for a custom-written computer
application they wanted to outsource.

13. CMM- Capability Maturity Model started by Carnegie mellon university a

general and powerful tool for understanding and then improving general
business process performance.
CMMI- cmm integration – to sort out the problems of multiple cmms. Used
across software development

Level 1 - Initial (Chaotic)

It is characteristic of processes at this level that they are (typically)
undocumented and in a state of dynamic change, tending to be driven in an ad
hoc, uncontrolled and reactive manner by users or events. This provides a
chaotic or unstable environment for the processes.
Level 2 - Repeatable
It is characteristic of processes at this level that some processes are repeatable,
possibly with consistent results. Process discipline is unlikely to be rigorous,
but where it exists it may help to ensure that existing processes are maintained
during times of stress.
Level 3 - Defined
It is characteristic of processes at this level that there are sets of defined and
documented standard processes established and subject to some degree of
improvement over time. These standard processes are in place (i.e., they are
the AS-IS processes) and used to establish consistency of process performance
across the organization.
Level 4 - Managed
It is characteristic of processes at this level that, using process metrics,
management can effectively control the AS-IS process (e.g., for software
development ). In particular, management can identify ways to adjust and
adapt the process to particular projects without measurable losses of quality or
deviations from specifications. Process Capability is established from this
level.
Level 5 - Optimizing
It is a characteristic of processes at this level that the focus is on continually
improving process performance through both incremental and innovative
technological changes/improvements.

14. The fiscal policy of a country is chiefly related to the economic state of
affairs of that very nation. It refers to the strategy that the government of a
country incorporates to tax its citizens and to make optimum use of that
money.
As for monetary policy, it differs from the fiscal policy in the way that monetary
policy clearly and exclusively focuses on the strategy of the bank to regulate
money and circulate it in an effective manner
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