The document discusses Six Sigma, which is a business strategy and methodology for improving quality, reliability, and responsiveness. It aims to make products and services faster, better, and cheaper. Six Sigma seeks to systematically eliminate defects and variation from processes by lowering the defect rate to 3.4 defects per million opportunities. It uses a set of tools and problem-solving techniques like DMAIC (Define, Measure, Analyze, Improve, Control) to statistically analyze processes and identify and address root causes of defects. Six Sigma has been successfully applied across various industries to drive process improvement and customer satisfaction.

1. Six Sigma – a business strategy
for improving
“Capability, Reliability & Responsiveness”
Six Sigma – a business strategy
for improving
“Capability, Reliability & Responsiveness”
Naresh Chawla
GM- Consultancy & Training
PTU Nalanda School of TQM & Entrepreneurship, Mohali

2. The Evolution
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3. How is the business run
traditionally?
Good (Q) Cheap (C) Fast (D)
  
    
  
Is it possible in today’s scenario?
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4. Six Sigma is one strategic
initiative which helps you in
making your products or services
Faster, Better & Cheaper
Six Sigma is one strategic
initiative which helps you in
making your products or services
Faster, Better & Cheaper
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5. InputsInputs
Six Sigma Basic Premise
Outputs
(CTQ)
Outputs
(CTQ)
Do you know what is important to customers?
Do you know what “Xs” are important to
meet customer needs?
How do the “Xs” drive outcomes,
revenue, and cost?
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6. Y = ƒ(X1, X2, X3 … Xn) +
Six Sigma Basic Premise
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This is the
variation.
Lesser the
variation more is
predictability

7. Business Strategy & Six Sigma
Superior
Reliability
High Quality
Customer
Requirements
7
…Customer Satisfaction is a Business Issue
Business
Results
Customer
Satisfaction
Consistent
Performance
On-Time
Delivery
Lower Costs
Predictable
Factory
Robust
Designs
Process
Capabilities
Material
Capabilities
nareshchawla@tqmbizschool.org

8. It is a war
against
variation
Six Sigma is a
“data driven”
problem solving
methodology.
… how you utilize
and implement that
methodology
depends on you.
What is Six Sigma?
… how you utilize
and implement that
methodology
depends on you.
The International Organization for Standardisation (ISO) define Six
Sigma as a "statistical business-improvement approach that
seeks to find and eliminate defects and their causes from an
organization's processes, focusing on outputs of critical
importance to customers."
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9. What is Six Sigma?  Is a Methodology for
Systematic Elimination
of variation
Object
of 6 is
Shift to
Target
&
Reduce
variation
Object
of 6 is
Shift to
Target
&
Reduce
variation
Reduce Variation & Center Process. Customers feel
the variation more than the mean
Object
of 6 is
Shift to
Target
&
Reduce
variation
Object
of 6 is
Shift to
Target
&
Reduce
variation
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10.  Six Sigma is a “Industry Independent”
methodology and has been successfully
applied across the various organization
 Manufacturing: Automotives, Aerospace,
Health Equipment, FMCG, Electronic Goods,
Continuous Process Industries, Textiles, etc.
 Service: Telecom, Banking and Financial
Services, Health Care, Hotels, IT, ITES, KPOs,
Airlines, Cargo movement, Support Services,
HR services, Marketing Services, etc.
Six Sigma Applicability
 Six Sigma is a “Industry Independent”
methodology and has been successfully
applied across the various organization
 Manufacturing: Automotives, Aerospace,
Health Equipment, FMCG, Electronic Goods,
Continuous Process Industries, Textiles, etc.
 Service: Telecom, Banking and Financial
Services, Health Care, Hotels, IT, ITES, KPOs,
Airlines, Cargo movement, Support Services,
HR services, Marketing Services, etc.
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11. Customer
Specification
X
X
Every Process Has Variability...
Variation & Defects are the Enemy
Target
X XXX X XX XX
XX
X
X
X
XX
X
X
X
X
X
X
X
X
X
XX
X
X
X
XX X
XX
XXX
X X
X
X
X
1
defects
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12. y
Poor Design
Changing Needs
Sources of Variation
x
Changing Needs
Measurement System
Insufficient Process
Capability
Skills & Behaviors
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13. Target Customer
Specification
1
2
3
A 3 process because 3 standard deviations
fit between target and spec
Reliability thru Variance Reduction
Target
Customer
Specification
1
2
3
4
5
6
6
“No Defects”
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14. Six Sigma – a metric
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15.  Sigma is a statistical unit of measure that reflects
process capability
 DPMODPMO
6 3.4 99.9997%
5 233 99.98%
4 6,210 99%
3 66,807 93%
2 308,537 69%
%%
Six Sigma – a metric
6 3.4 99.9997%
5 233 99.98%
4 6,210 99%
3 66,807 93%
2 308,537 69%
Process
Capability
Defects Per Million
Opportunities
Percentage
Good
Increase Requires Exponential DPMO Reduction
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16. ● Methodology
Structured problem solving methodology.
Two primary sub-methodologies in Six
Sigma
DMAIC
DMADV
● Set of tools
Six Sigma as a set of tools includes all
quantitative techniques used by the six
sigma expert to drive process improvement.
Six Sigma – a methodology
● Methodology
Structured problem solving methodology.
Two primary sub-methodologies in Six
Sigma
DMAIC
DMADV
● Set of tools
Six Sigma as a set of tools includes all
quantitative techniques used by the six
sigma expert to drive process improvement.
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17. When to use Six Sigma?
3.4
DPMO
233 DPMO
6210 DPMO
Sweetest
Fruit
Average
Processes
Low
Hanging
Six Sigma
Five Sigma
Four
Sigma
World Class
Bulk fruit
Process Characterization &
Optimization (DMAIC)
Design for Six Sigma (DFSS)
There is exponential decrease in Defects
with increase in Sigma
6210 DPMO
66807 DPMO
308537 DPMO
697672 DPMO
Average
Processes
Low
HangingThree Sigma
Two Sigma
One
Sigma
Ground
Fruit
Logic & Intuition
Seven Basic tools
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18. Ask an Expert Six SigmaUNKNOWN
When to use Six Sigma?
Just do it Lean!!!!!!!!!!
Simple Complex
KNOWN
Solutions
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19. Statistical
Problem
Traditional
Approach
Practical
Problem
How Six Sigma is different?
Statistical
Problem
Statistical
Solution
Practical
Solution
Six Sigma
Approach
Customer Focused . . .Bottom Line “cost” Driven
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20. Beyond seven QC tools
Sr.
No.
Tools Stage Nature of tool
1 Affinity Diagram D Non-Statistical
2 Quality Function Deployment D Non-Statistical
3 Kano Model D Non-Statistical
How Six Sigma is different?
3 Kano Model D Non-Statistical
4 SIPOC D Non-Statistical
5 Estimating sigma level M Statistical
6 Rolled through put yield M Statistical
7 Process capability/SPC studies M Statistical
8 Gauge R & R, AAA studies M Statistical
9 Relation Diagram A Non-Statistical
10 Control/Impact Diagram A Non-Statistical
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21. Sr.
No.
Tools Stage Nature of
tool
11 Cause & Effect Matrix A Non-Statistical
12 FMEA A Non-Statistical
13 Hypothesis Testing (Z-test, t-test,
2t-test, 2p-test, chi-sq test,
ANOVA)
A Statistical
How Six Sigma is different?
Hypothesis Testing (Z-test, t-test,
2t-test, 2p-test, chi-sq test,
ANOVA)
14 Correlation & Regression A Statistical
15 Confidence Interval A Statistical
16 Multi-vari Analysis A Statistical
17 DoE/Taguchi Methods I Statistical
18 Response Surface Methodology I Statistical
19 Control Plans C Non-Statistical
20 Control Charts C Statistical
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22.  A genuine focus on the customer
 Data and fact driven Management
 Removes defects from products & services
 Team based problem solving projects with
milestones
 Process focus, management & improvement
 Proactive management
 Drive for perfection, no tolerance for failure
Encompasses manufacturing, software and
transactional processes
Six Sigma – Fundamental Themes
 A genuine focus on the customer
 Data and fact driven Management
 Removes defects from products & services
 Team based problem solving projects with
milestones
 Process focus, management & improvement
 Proactive management
 Drive for perfection, no tolerance for failure
Encompasses manufacturing, software and
transactional processes
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23. ● Identify &
Define
improvement
opportunity
● Determine
Customer
Requirement
(VoC)
● Develop
Project
Charter
● Map High
Level
Processes
(SIPOC)
● Define ‘As is’
Situation
(Detailed
Process Map)
● Plan for Data
collection
● Validate
Measurement
Systems
● Quantify
Current
Process
Performance
● Identify
patterns
through data
anlysis
● Identify
Potential
Causes (x’s)
● Prioritize
possible
root causes
● Validate
possible root
causes
● Generate
Potential
solutions
● Select Best
Solution
● Test Solution
(Piloting)
● Statistical
Evidence of
improvements
● Prepare
and
Implement
Control
Plan
● Implement
Full Scale
Solution
● Statistical
Evidence
that
improveme
nts are
sustainable
● Validate
Financial
Gains
DMAIC Methodology
DefineDefineDefineDefine MeasureMeasureMeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControl
● Identify &
Define
improvement
opportunity
● Determine
Customer
Requirement
(VoC)
● Develop
Project
Charter
● Map High
Level
Processes
(SIPOC)
● Define ‘As is’
Situation
(Detailed
Process Map)
● Plan for Data
collection
● Validate
Measurement
Systems
● Quantify
Current
Process
Performance
● Identify
patterns
through data
anlysis
● Identify
Potential
Causes (x’s)
● Prioritize
possible
root causes
● Validate
possible root
causes
● Generate
Potential
solutions
● Select Best
Solution
● Test Solution
(Piloting)
● Statistical
Evidence of
improvements
● Prepare
and
Implement
Control
Plan
● Implement
Full Scale
Solution
● Statistical
Evidence
that
improveme
nts are
sustainable
● Validate
Financial
Gains
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24. Thank YouThank You
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Naresh Chawla
Master Black Belt