2. Six Sigma
Six Sigma is a methodology based on data to improve performance by reducing variability.
It requires thorough understanding of product and process knowledge and is completely driven by
In other words, it is a methodology to achieve 3.4 defects per million opportunities. It can also be
used to bring breakthrough improvements in the process. It focuses on the bottom-line and is a proven
methodology for problem solving.
3. Evolution of Six Sigma
The need for process improvements and a continuous improvement methodology like Six Sigma
came into existence only due to
● rising customer expectations in terms of quality, delivery and cost,
● global competition - Japanese and Chinese threats,
● proven technique for quantum jumps in business results.
4. Goals of Six Sigma
● To reduce variation
● To reduce defects /rework
● To improve yield /productivity
● To enhance customer satisfaction
● To improve the bottom-line
● To improve top-line
● Shortening cycle-time
5. Six Sigma can be understood/perceived at three levels:
Metric: 3.4 Defects Per Million Opportunities.
Methodology: DMAIC(Define, Measure, Analyze, Improve, and Control) structured problem solving
roadmap and tools.
Philosophy: Reduce variation in your business and take customer-focused, data driven decisions.
6. Sigma Level Vs Number of Defects
Sigma Level No. of defects per million
2 Sigma 308537
3 Sigma 66807
4 Sigma 6210
5 Sigma 233
6 Sigma 3.4
7. Six Sigma in Motorola
In 1986, Motorola invented the Six Sigma quality improvement process. Six Sigma is, basically, a process
quality goal. As such, it falls into the category of a process capability (Cp) technique.
The traditional quality paradigm defined a process as capable if the process's natural spread, plus and minus
three sigma, was less than the engineering tolerance. Under the assumption of normality, this translates to a
process yield of 99.73 percent.
Motorola's Six Sigma asks that processes operate such that the nearest engineering requirement is at least
plus or minus six sigma from the process mean. Motorola's Six Sigma program also applies to attribute data.
This is accomplished by converting the Six Sigma requirement to equivalent conformance levels .
8. Software Total Quality Management:
Total Quality Management (TQM) is a term that proposes that the entire organization should be focused
on a culture of Quality, from all areas of the business.
Analyzing the three words, we have
Total – Made up of the whole.
Quality – Degree of excellence a product or service provides.
Management – Act, or manner of handling, controlling, directing, etc.
9. While standards like ISO 9001 have superseded the TQM systems approach, the following concepts still remain
● a company-wide commitment to quality and a quality culture
● quality as a component of customer success
● Plan-do-check-act (PDCA) process cycles
● quality management systems that incorporate concepts around process control, zero-defect
mentality, and streamlining operations with quality in mind
Quality can quantify by the equation:
Q = P / E
Where Q = Quality of a Product
P = Performance of the Organization E = Expectation of the Customer
10. Principles of total quality management
The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—
training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring
tools—the customer determines whether the efforts were worthwhile.
2. Total employee involvement
All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been
driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-
performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams
are one form of empowerment.
A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or
external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to
carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variation.
11. 4. Integrated system
Although an organization may consist of many different functional specialties often organized into vertically structured departments,
it is the horizontal processes interconnecting these functions that are the focus of TQM.
5. Strategic and systematic approach
A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission,
and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that
integrates quality as a core component.
6. Continual improvement
A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and
creative in finding ways to become more competitive and more effective at meeting stakeholder expectations.
7. Fact-based decision making
In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow
prediction based on past history.
12. 8. Communications
During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in
maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness.
13. Case Study : Toyota
Based on the corporate philosophy of 'customer first' and 'quality first' since its founding, Toyota Motor Co., Ltd. won the
Deming Application Prize in 1965 and the Japan Quality Control Award in 1970, following the introduction of statistical
quality control (SQC) in 1949, and has conducted Total Quality Management (TQM) based on the unchanging principles of
'customer first', kaizen (continuous improvement), and 'total participation'.
In addition, since the launch of the Creative Idea Suggestion System in 1951, the number of suggestions made has steadily
increased, and the system has supported flexible responses to changes that involve monozukuri (conscientious
manufacturing), making substantial contributions to the company's development.
As a result, the basic concepts of TQM and problem solving as well as kaizen (continuous improvement) through creative
innovation spread throughout the company and took root, contributing to higher product quality and work quality at all levels
and ranks and improving the vitality of individuals and organizations.
14. ISO 9001:2015
The intention of ISO 9001:2015 is to help organizations consistently meet customer requirements, enhance customer
satisfaction, address risks and opportunities and meet business objectives. If done right, implementing an ISO 9001 QMS
(Quality Management System) will result in many other benefits for your organization.
The ISO 9001 standard is based on the following quality management principles:
1. Customer focus
3. Engagement of people
4. Process approach
6. Evidence-based decision making
7. Relationship management
15. ISO 9001:2015 Structure
ISO 9001:2015 is the latest revision of the ISO 9001 international standard that specifics requirements for a quality
management system (QMS). The requirements are contained within seven clauses:
● Context of the organization
● Performance evaluation
16. Context of the Organization
● Determine, monitor and review external and internal issues
● Determine, monitor and review relevant interested parties
● Establish the quality management system scope
● Determine processes needed for the QMS as well as their required inputs, expected
outputs, sequence and interaction, resource needs, responsibilities, risks, and
● Top management must manage, not delegate, quality
● Leadership has defined responsibilities for ensuring quality execution
● Emphasis on customer focus with specific applications ranging from support for customer
regulatory requirements, risks, and enhancing customer satisfaction
● Management’s responsibilities include quality policy establishment, communication and
organization-wide responsibility and authority
● Adding risk-based thinking and management to planning
● establishing quality objectives and how they will be achieved
● Planning actions when changes to the QMS are made
● Updating the QMS based on measuring ongoing effectiveness and any newly discovered
risks or opportunities
● Providing necessary monetary and physical assets, resources and systems (such as personnel,
plant/office, logistics, working conditions, etc.)
● Providing and maintaining monitoring and measuring resources (i.e. calibrated equipment)
● Determining and maintaining organizational knowledge
● Ensuring personnel competency and providing additional training to achieve competency
● Communicating the quality policy, relevant quality objectives, and each employees contribution
to the QMS
● Documenting information necessary for the operation of QMS processes and conformance to
● Plan, implement and control processes need to meet requirements for products and services
● Ensure requirements for products and services are defined and claims for products and services
offered are met
● Establish, implement and maintain an appropriate design and development process
● Ensure externally provided processes, products and services conform to requirements
● Production and service provision must be under controlled conditions (identification, verification
● Products and services are not to be released until planned arrangements are completed
● Nonconforming outputs are to be identified and controlled
● Determine what, how, when and by whom results will be measured and evaluated
● Determine the methods for obtaining, monitoring and reviewing customer
● Have an objective, planned and effectively implemented internal audit program
● Top management is to review the QMS at planned intervals
● Determine and select opportunities for improvement
● React to nonconformities and take action to eliminate the cause
● Implement corrective actions as appropriate and review their effectiveness
● Keep records of nonconformities and corrective actions
● Continually improve your QMS
23. Case Study: Ribose-cloud collaboration platforms
When Ribose learnt that ISO 9001 was due to be updated in 2015 they were excited to find out what opportunities
the new version would bring. With several management systems already in place they wanted to see if the new
version could be aligned with these to deliver efficiencies and streamline business operations. They were also
interested to see if the new standard would reflect the needs of a service company more than previous versions
The transition to the new version of ISO 9001 was well planned by Ribose. Their approach was to keep a close
eye on the standards development process through BSI from the moment the Draft International Standard (DIS)
was published in May 2014. As soon as the DIS was available they bought a copy which they reviewed and
compared to the 2008 version of ISO 9001. This gave them an early indication of what the changes and the new
requirements might be.
24. How Ribose benefitted:
How Ribose benefitted:
● A more flexible quality management system suited to a service business
● Fewer documentation requirements meant reduced overheads
● Alignment of operational and leadership functions
● An unexpected benefit was the increased flexibility of documentation requirements. This meant
Ribose could better tailor their documentation to their business, something that could be beneficial to
other service organizations.
● Also, as ISO 9001 was written in the new High Level Structure (Annex SL) it has helped Ribose to
integrate it with other management systems, make efficiencies, and streamline their processes
25. Capability Maturity Model (CMM):-
Maturity Level 1 - Initial
Maturity level 1 organizations often produce products and services that work; however, they frequently exceed the budget and
schedule of their projects.
Maturity Level 2 – Managed
At maturity level 2, requirements, processes, work products, and services are managed. The status of the work products and the
delivery of services are visible to management at defined points.
Maturity Level 3 - Defined
At maturity level 3, processes are well characterized and understood, and are described in standards, procedures, tools, and methods.
Maturity Level 4 - Quantitatively Managed
At maturity level 4, an organization has achieved all the specific goals of the process areas assigned to maturity levels 2, 3, and 4 and
the generic goals assigned to maturity levels 2 and 3.
Maturity Level 5 - Optimizing
At maturity level 5, an organization has achieved all the specific goals of the process areas assigned to maturity levels 2, 3, 4, and 5
and the generic goals assigned to maturity levels 2 and 3.
Maturity level 5 focuses on continually improving process performance through both incremental and innovative technological
27. Case Study:- HP (Hewlett-Packard)
HP U.S. Public Sector Earns Highest CMMI Rating of Level 5 for Fourth Time
CMMI is a process improvement approach that provides organizations with the essential elements of effective processes that ultimately
improve their performance. The CMMI standard was developed by a coalition of industry, government agencies and the Software
Engineering Institute to objectively assess the full range of an organization’s software and systems engineering, program management
as well as organizational management capabilities.
An appraisal at the highest maturity level of 5 indicates that the CECE High Maturity organization within HPES/USPS is performing at
an “optimizing level”. At this level, CECE has validated its ability to continuously improve its processes and implement high-maturity
practices across all delivery organizations that make up CECE, significantly lowering risks to successful program execution.
United States Postal Service’s (USPS) HP Enterprise Cloud
Center for Enabling Client Excellence (CECE)