MA
S
1
I G
Six Sigma Means 3.4
Defects in 1,000,000 -
MOTOROLA
Six Sigma is a business concept that
answers customer’s demand for high
quality and Defect-free Business process.
Six Sigma was born in Motorola and
developed by Mikel J. Harry.
Motorola won Malcolm Baldridge Quality
Award.
Six Sigma is carried out as projects and
mostly uses DMAIC method
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Eg: Godrej -G E Assembly
Plant
Defective Components were coming at the
rate of 3,00,000 for one Million Parts.
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PROCESS CAPABILITY
Process capability is simply a measure of how
good a metric is performing against
established standard(s).
Upper
UpperandandLower
LowerStandards
Standards Single
Single Standard
Standard
(Specifications)
(Specifications) (Specification)
(Specification)
Spec
Spec Spec
Spec Spe
Spe
(Low
(Low (Upp
(Upp cc
er)
er) er)
er)
Out of In Spec Out of In Out of
Spec Spec Spec Spec
5.Business
4.Developing Process to 6.Conducting
Monitoring Be improved Six Sigma
Systems
are chosen Projects
8 Continuous Improvement
Six Sigma - Three Dimensions
Driven Customer
by
custom
er
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt
••••••••••
Upper/Lower
specification
• •
••• •
•
•••••••
••••••
limits
Organization Tools
•
Regression
35 100%
30
80%
25
20 60%
15 40%
10
20%
5
Process variation 0 0%
Enabled by quality
L K A F B C G R D
team.
Pareto Chart
9
DMAIC PROCESS
Measure
Define
DMAIC Analyze
Control
Improve
10
DEFINE
Set Baseline
Collect Data
Create Forms
Test Conclusions
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IMPROVE
Create Improvement Ideas
Create Models
Experiment
Set Goals
Assess Effectiveness
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ENIGMA OF SIX SIGMA
+3 +2 +1 Six Sigma -1 -2 -3
6σ
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SIX SIGMA BENCHMARKS
Restaurant Bills
Prescription writing
100K Payroll processing
Order write-up
1K Material lot
Rejected
10 Air flight
Fatality Rate
Best in class
(0.25ppm)
117 2 3 4 5 6 7
Table 1: Companies And The Year They Implemented Six Sigma
GE (NYSE:GE) 1995
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Table 2: Six Sigma Cost And Savings By Company
Year Revenue ($B) Invested ($B) % Revenue Invested Savings ($B) % Revenue Savings
Motorola
1986-2001 356.9(e) ND - 16 1 4.5
Allied Signal
1998 15.1 ND - 0.5 2 3.3
GE
1996 79.2 0.2 0.3 0.2 0.2
1997 90.8 0.4 0.4 1 1.1
1998 100.5 0.5 0.4 1.3 1.2
1999 111.6 0.6 0.5 2 1.8
1996-1999 382.1 1.6 0.4 4.4 3 1.2
Honeywell
1998 23.6 ND - 0.5 2.2
1999 23.7 ND - 0.6 2.5
Key:
$B = $ Billions, United States
(e) = Estimated, Yearly Revenue 1986-1992 Could Not Be Found
ND = Not Disclosed19
Note: Numbers Are Rounded To The Nearest Ten
The Quality Team
Master Black Belt - Thought Leadership
- Expert on Six Sigma
- Mentor Green and Black
Belts
Manufacturing
Service Industries
Hospitals
Insurance
Call Centre
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