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Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
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SIX SIGMA – PAST, PRESENT
AND FUTURE
Author: Dr. G. Karuppusami
Six Sigma – past, present and future
Standards in Action
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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 eliminating 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 (Snee, 2003).
Six Sigma – past, present and future
Standards in Action
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WHY SIX SIGMA
• Intense 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.
• The availability and accessibility of large data bases and
the increasing ability to explore, understand, and use the
data.
Six Sigma – past, present and future
Standards in Action
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Sigma and % accuracy
Defects per Million % Accuracy
Opportunities (DPMO)
One Sigma 691,500 30.85%
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%
Six Sigma – past, present and future
Standards in Action
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Cost of poor quality
Fig. 1 Cost of poor quality versus Sigma level
0%
10%
20%
30%
3 4 5 6 7
Sigma Level
Costofpoorquality
as%ofearnings
Six Sigma – past, present and future
Standards in Action
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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 – past, present and future
Standards in Action
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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
Six Sigma – past, present and future
Standards in Action
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General Electric: What Is Six Sigma?
“First, what it is not. It is not a secret society, a slogan, or
a cliché. 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
Six Sigma – past, present and future
Standards in Action
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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
eliminating waste and reducing defects and variations.
– 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.
– Increased market value by a compounded 27% per year through
fiscal year 1998.
Six Sigma – past, present and future
Standards in Action
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Selecting the right projects for SIX SIGMA
• Assure that the importance of the projects is
evident or can be readily demonstrated.
• Assure the projects are viable and doable in a
short time.
• Assure that the success of the projects can be
readily quantified.
Six Sigma – past, present and future
Standards in Action
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Six Sigma Team
• Own vision, direction,
integration, results
• Lead change
• Project owner
• Implement solutions
• Black Belt managers
• Full time
• Train and coach
Black and Green Belts
• Statistical problem solving experts
• Devote 50% - 100% of time to Black Belt activities
• Facilitate and practice problem solving
• Train and coach Green Belts and project teams
• Part-time
• Help Black Belts
Master Black
Belts
Black Belts
Green Belts
Project Champions
Executive Leadership
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
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Six Sigma Methodology (DMAIC)
Define
Measure
Analyse
Control
Improve
Six Sigma – past, present and future
Standards in Action
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DMAIC Steps
1. Define
• Identify 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
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
Six Sigma – past, present and future
Standards in Action
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DMAIC Steps
2. Measure
• Define performance standards
• Measure current level of quality into Sigma. It
precisely pinpoints the area causing problems.
• Identify all potential causes for such problems.
5.0
Control
2. Measure1. Define 3. Analyze 4. Improve 5. Control
Six Sigma – past, present and future
Standards in Action
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DMAIC Steps
3. Analyse
• Establish process capability
• Define performance objectives
• Identify variation sources
3.0
Analyze
Tools for analysis
 Process Mapping
 Failure Mode & Effect Analysis
 Statistical Tests
 Design of Experiments
 Control charts
 Quality Function Deployment (QFD)
3. Analyse1. Define 2. Measure 4. Improve 5. Control
Six Sigma – past, present and future
Standards in Action
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DMAIC Steps
4. Improve
• Screen potential causes
• Discover variable relationships among causes and effects
• Establish operating tolerances
• 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.
• Carryout a trial run for a planned period of time to ensure the revisions
and improvements implemented in the process result in achieving the
targeted values.
4. Improve1. Define 2. Measure 3. Analyse 5. Control
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
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DMAIC Steps
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.
5. Control1. Define 2. Measure 3. Analyse 4. Improve
Six Sigma – past, present and future
Standards in Action
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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.
• Accuracy rating is 99.999999. More than Six Sigma.
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
n
19
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
• Statistical approach
• Measured Defects Per Million Opportunities (DPMO)
• Focused on:
– Elimination of defects
– Improving product and service quality
– Reducing cost
– Continuous process improvement
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
n
20
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 – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
n
21
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.
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
n
22
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 (Dedhia, 2005).
• 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 (Lucas, 2002).
• 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.
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
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23
References
1 Dedhia, N.S. (2005), “Six Sigma Basics”, Total Quality Management,
Vol.16, No.5, pp. 567-574
2 GE website http://www.ge.com (accessed on 20/Feb/2007)
3 Harry, M., and Crawford. D. (2005), “Six Sigma – The next generation”,
Machine Design, February Issue, pp. 126-132
4 Lucas, J.M. (2002), “The essential Six-Sigma”, Quality Progress,
January, pp. 27-31
5 Motorola website http://www.motorola.com (accessed on 20/Feb/2007)
6 Snee, R. D. and Hoerl, R.W. (2003), Leading Six Sigma: A Step by
Step Guide Based on Experience at GE and Other Six Sigma
Companies, Prentice-Hall, New Jersey
7 Thawani, S. (2004), “Six Sigma – Strategy for organizational
excellence”, Total Quality Management, Vol.15 No.5-6, pp. 655-664
Six Sigma – past, present and future
Standards in Action
www.bsieducation.org/standardsinactio
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Thank You!

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Six sigma-presentation

  • 1. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 1 SIX SIGMA – PAST, PRESENT AND FUTURE Author: Dr. G. Karuppusami
  • 2. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 2 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 eliminating 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 (Snee, 2003).
  • 3. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 3 WHY SIX SIGMA • Intense 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. • The availability and accessibility of large data bases and the increasing ability to explore, understand, and use the data.
  • 4. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 4 Sigma and % accuracy Defects per Million % Accuracy Opportunities (DPMO) One Sigma 691,500 30.85% 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%
  • 5. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 5 Cost of poor quality Fig. 1 Cost of poor quality versus Sigma level 0% 10% 20% 30% 3 4 5 6 7 Sigma Level Costofpoorquality as%ofearnings
  • 6. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 6 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’.
  • 7. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 7 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
  • 8. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 8 General Electric: What Is Six Sigma? “First, what it is not. It is not a secret society, a slogan, or a cliché. 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
  • 9. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 9 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 eliminating waste and reducing defects and variations. – 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. – Increased market value by a compounded 27% per year through fiscal year 1998.
  • 10. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 10 Selecting the right projects for SIX SIGMA • Assure that the importance of the projects is evident or can be readily demonstrated. • Assure the projects are viable and doable in a short time. • Assure that the success of the projects can be readily quantified.
  • 11. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 11 Six Sigma Team • Own vision, direction, integration, results • Lead change • Project owner • Implement solutions • Black Belt managers • Full time • Train and coach Black and Green Belts • Statistical problem solving experts • Devote 50% - 100% of time to Black Belt activities • Facilitate and practice problem solving • Train and coach Green Belts and project teams • Part-time • Help Black Belts Master Black Belts Black Belts Green Belts Project Champions Executive Leadership
  • 12. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 12 Six Sigma Methodology (DMAIC) Define Measure Analyse Control Improve
  • 13. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 13 DMAIC Steps 1. Define • Identify 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 1. Define 2. Measure 3. Analyze 4. Improve 5. Control
  • 14. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 14 DMAIC Steps 2. Measure • Define performance standards • Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. • Identify all potential causes for such problems. 5.0 Control 2. Measure1. Define 3. Analyze 4. Improve 5. Control
  • 15. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 15 DMAIC Steps 3. Analyse • Establish process capability • Define performance objectives • Identify variation sources 3.0 Analyze Tools for analysis  Process Mapping  Failure Mode & Effect Analysis  Statistical Tests  Design of Experiments  Control charts  Quality Function Deployment (QFD) 3. Analyse1. Define 2. Measure 4. Improve 5. Control
  • 16. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 16 DMAIC Steps 4. Improve • Screen potential causes • Discover variable relationships among causes and effects • Establish operating tolerances • 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. • Carryout a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in achieving the targeted values. 4. Improve1. Define 2. Measure 3. Analyse 5. Control
  • 17. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 17 DMAIC Steps 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. 5. Control1. Define 2. Measure 3. Analyse 4. Improve
  • 18. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 18 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. • Accuracy rating is 99.999999. More than Six Sigma.
  • 19. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 19 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 • Statistical approach • Measured Defects Per Million Opportunities (DPMO) • Focused on: – Elimination of defects – Improving product and service quality – Reducing cost – Continuous process improvement
  • 20. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 20 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.
  • 21. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 21 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.
  • 22. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 22 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 (Dedhia, 2005). • 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 (Lucas, 2002). • 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.
  • 23. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 23 References 1 Dedhia, N.S. (2005), “Six Sigma Basics”, Total Quality Management, Vol.16, No.5, pp. 567-574 2 GE website http://www.ge.com (accessed on 20/Feb/2007) 3 Harry, M., and Crawford. D. (2005), “Six Sigma – The next generation”, Machine Design, February Issue, pp. 126-132 4 Lucas, J.M. (2002), “The essential Six-Sigma”, Quality Progress, January, pp. 27-31 5 Motorola website http://www.motorola.com (accessed on 20/Feb/2007) 6 Snee, R. D. and Hoerl, R.W. (2003), Leading Six Sigma: A Step by Step Guide Based on Experience at GE and Other Six Sigma Companies, Prentice-Hall, New Jersey 7 Thawani, S. (2004), “Six Sigma – Strategy for organizational excellence”, Total Quality Management, Vol.15 No.5-6, pp. 655-664
  • 24. Six Sigma – past, present and future Standards in Action www.bsieducation.org/standardsinactio n 24 Thank You!