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Six Sigma - Past, Present and Future

Six Sigma is a data-driven methodology for process improvement that aims for near perfection. It was developed by Motorola in 1986 and focuses on reducing defects. Early adopters like Motorola, GE, and Honeywell saved hundreds of millions through Six Sigma by reducing costs and improving quality. The DMAIC methodology is used, involving define, measure, analyze, improve, and control steps. Six Sigma has evolved through generations from a quality focus to incorporating business goals and lean manufacturing. It provides a statistical framework for measuring and eliminating defects in processes to better meet customer needs.

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42 views

Six Sigma - Past, Present and Future

Six Sigma is a data-driven methodology for process improvement that aims for near perfection. It was developed by Motorola in 1986 and focuses on reducing defects. Early adopters like Motorola, GE, and Honeywell saved hundreds of millions through Six Sigma by reducing costs and improving quality. The DMAIC methodology is used, involving define, measure, analyze, improve, and control steps. Six Sigma has evolved through generations from a quality focus to incorporating business goals and lean manufacturing. It provides a statistical framework for measuring and eliminating defects in processes to better meet customer needs.

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saketsanyal
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© Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online on Scribd
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SIX SIGMA PAST, PRESENT AND FUTURE

What is Six Sigma


Six Sigma is the measure of quality that strives for near perfection. It is a disciplined, data-driven methodology focused on removing defects. A Six Sigma defect is defined as anything that falls outside of a customer's specifications. Six Sigma is a reference to a statistical measuring system, equivalent to just 3.4 defects per every million opportunities

WHY SIX SIGMA


More and more competitive pressures especially from rapid globalization. Greater consumer demand for high quality products and services, little tolerance for failures of any type. Top management (and stockholder) recognition of the high costs of poor quality

Sigma and % accuracy


Defects per Million% Accuracy Opportunities (DPMO) One Sigma 691,500 30.75% Two Sigma 308,500 69.15% Three Sigma 66,810 93.32% Four Sigma 6,210 99.38% Five Sigma 233 99.977% Six Sigma 3.4 99.9997% Seven Sigma 0.020 99.999998%

CAPABILITY ANALYSIS

Cost of poor quality


Fig. 1 Cost of poor quality versus Sigma level

Cost of poor quality as % of earnings

30% 20% 10% 0% 3 4 5 6 7

Sigma Level

The Inventor of Six Sigma


Motorola is known for its cool cell phones, but the company's more lasting contribution to the world is the quality-improvement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of Six Sigma.

Six Sigma at Motorola


Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including:
Sales and Marketing Product design Manufacturing Customer service Transactional processes Supply chain management

General Electric: What Is Six Sigma?

Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services
Saved $750 million by the end of 1998 Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity Streamlined contract review process, leading to faster completion of deals and annual savings of $1 million

Honeywell: Six Sigma Plus

Six Sigma is one of the most potent strategies ever developed to accelerate improvements in processes, products, and services, and to radically reduce manufacturing and/or administrative costs and improve quality. It achieves this by relentlessly focusing on reducing waste and defects and variations.
They Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999. Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months. This Increased market value by a compounded 27% per year through fiscal year 1998.

Selecting the right projects for SIX SIGMA Make sure that the importance of the projects is noticeable or can be readily demonstrated. Make sure the projects are viable and doable in a short time. Make sure that the success of the projects can be readily quantified.

Six Sigma Methodology (DMAIC)


Define

Measure

Control

Improve

Analyse

DMAIC Steps 1. Define


1. Define
2. Measure 3. Analyze 4. Improve 5. Control

Recognize projects that are measurable Define projects including the demands of the customer and the content of the internal process. Develop team charter Define process map

DMAIC Steps 2. Measure


1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Define performance standards Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. Find out all potential causes for such problems.

DMAIC Steps 3. Analyse


1. Define 2. Measure

3. Analyse

4. Improve

5. Control

We should establish process capability Define performance objectives Find out variation sources
Tools for analysis Process Mapping Failure Mode & Effect Analysis Statistical Tests Design of Experiments Control charts Quality Function Deployment (QFD)

DMAIC Steps 4. Improve


1. Define 2. Measure 3. Analyse

4. Improve

5. Control

Screen potential causes Discover variable relationships among causes and effects Pursue a method to resolve and ultimately eliminate problems. It is also a phase to explore the solution how to change, fix and modify the process. Carry out a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in getting the targeted values.

DMAIC Steps 5. Control


1. Define 2. Measure 3. Analyse 4. Improve

5. Control

Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.

DFSS
Design For Six Sigma (DFSS) A rigorous approach to the design of a new product or service The goals:
Reduce delivery time and development cost and Increase the effectiveness of the product or service and hence customer satisfaction.

key elements:
A customer focus and the ability to measure quality using the six sigma metric and philosophy A suitable design that delivers excitement without failure, and does so to budget and expectation An dominating business strategy and management that brings out the very best for organic growth, through the repeated and regular launch and successful development of new products and services

DFSS

Six Sigma Case study


A dabbawala is a person in the Indian city of Mumbai whose job is to carry and deliver freshly made food from home in lunch boxes to office workers. Dabbawalas pick up 175,000 lunches from homes and deliver to their customers everyday. Only one mistake is made in every 6 million deliveries. Their accuracy rating is 99.999999. More than Six Sigma.

Six Sigma - First Generation (SSG 1)


The era 1986 to 1990 is referred to as the first generation of Six Sigma, or SSG 1 for short. Pioneered at Motorola Measured Defects Per Million Opportunities (DPMO) Focused on:
Removing of defects Improving product and service quality Reducing cost Continuous process improvement

Six Sigma - Second Generation (SSG 2)

In the 1990s, the focus of Six Sigma shifted from product quality to business quality. General Electric Corp. ushered in the second generation of Six Sigma, or SSG 2 as it is known. Six Sigma became a business-centric system of management. Strong measurement on bringing dollars to the bottom line. High potential candidates were selected as Black Belts.

Six Sigma - Third Generation (Gen III)

Developed after the year 2000. Gen III can show companies how to deliver products or services that, in the eyes of customers, have real value. Combines Lean Manufacturing Techniques and Six Sigma. Termed as Lean Six Sigma. Korean steel maker Posco and electronics maker Samsung has begun a Gen III programme.

Conclusion
A gauge of quality and efficiency, Six Sigma is also a measure of excellence. Embarking on a Six Sigma program means delivering top-quality service and products while virtually eliminating all internal inefficiencies A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the company's other service processes The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management.

Thank You!

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