Six Sigma, process of gaining efficiency at work and increasing productivity at the work place.

2. 1. Introduction to Six Sigma
2. Characteristics of Six Sigma
3. Levels of Six Sigma Implementation
4. Approaches to Six Sigma
5. Similarities and differences between TQM’s and
Six Sigma
6. Pros and Cons of implementing Six Sigma in organizations
7. Case Study

3. Companies who have successfully adopted ‘Six Sigma’
strategies include:
Financial : bank of America, GE capital, HDFC, HSBC, American
express
Hospitality : ITC hotels, GRT hotels, Apollo hospitals
Manufacturing : Motorola, GE plastic, Johnson and Johnson,
Nokia, Microsoft, Ford, Wipro , Nestle, Samsung
Telecom : Bharti Cellular, Vodafone, Tata
IT : Wipro, Satyam, Accenture, Infosys, TCS, Birla

4. Six Sigma is a smarter way to manage a business or a department.
Six Sigma puts the customer first and uses facts and data to drive
better solution.
Six sigma efforts target three main areas :
Improving customer satisfaction
Reducing cycle time
Reducing defects
Six sigma is about making every area of the organization better
able to meet the changing needs customers, markets, and
technologies- with benefits for employees, customers, and
shareholders.
However Six Sigma originated from terminology associated
with manufacturing, where six sigma process is one in which
99.99966% of the products manufactured are statistically
expected to be free of defects (3.4 defects per million).

5. Areas
of
application
Service
Purchase
IT
Administration
Production
Design
Quality
HRM

6. Six Sigma has evolved over time. It’s more than just a quality
system like TQM or ISO.
The term “Six Sigma ” was coined by Bill Smith,
an engineer with Motorola
Late 1970’s Motorola started experimenting with
problem solving through statistical analysis
1987 – Motorola officially launched its
Six Sigma program.
Motorola saved more than $15 billion in the
first 10 years of its six sigma effort. Bill Smith of Motorola

7. Six Sigma is Customer focused : Its almost an obsession to keep
the external customer needs in plain sight, driving the
improvement effort.
Six Sigma projects produce major returns on investment : For
example in General Electricals, the Six sigma program resulted in
the following cost versus returns :
In 1996, cost of $200 million and returns of $150million.
In 1998, costs of $400 million returns of more than $1 billion.
Six Sigma changes how management operates : new approaches
to thinking, planning and executing to achieve results. In a lot of
ways, Six Sigma is about putting into practice the notions of
working smarter, not harder.

9. 1. Six Sigma Champion/Yellow Belt: Champions undergo five days
of training and are taught how to manage projects and act as
advisors to various project teams.
2. Green Belts: They undergo two weeks of training that includes
project-oriented tasks. They act as team members to the Six
Sigma project team. Their cooperation and involvement is
necessary for projects success.
3. Black belts: They receive four weeks of trainings and are
directly involved in the implementation of Six Sigma Projects.
They are the project leaders and go through in-depth training
on Six Sigma approach and tools and work full time on the
project.
4. Master Black Belts: These are the people who conduct Six
Sigma Training and also have on the job training and
experience

10.  DMAIC APPROACH
THIS IS ORGANIZATIONAL BASED
 DMADV APPROACH
THIS IS BASED ON CUSTOMER NEEDS AND
SATIFACTIONS

11. DMAIC APPROACH
This approach is undertaken to improve existing business process
CONTROL
DEFINE
MEASURE
ANALYSE
IMPROVE

12. 1.Define high-level project goals and the current process.
2.Measure key aspects of the current process and collect
relevant data.
3.Analyze the data to verify cause-and-effect relationships.
Determine what the relationships are, and attempt to ensure that
all factors have been considered.
4.Improve or optimize the process based upon data analysis using
various tools
5.Control to ensure that any deviations from target are corrected
before they result in defects.

13. DEFINE
MEASURE
ANALYZE
DESIGN
VERIFY
This approach is undertaken when there is a need to create new
design for product

14.  Define design goals that are consistent with customer demands and the
enterprise strategy.
 Measure and identify CTQs (characteristics that are Critical To Quality),
product capabilities, production process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and
evaluate design capability to select the best design.
 Design details, optimize the design, and plan for design verification. This
phase may require simulations.
 Verify the design, set up pilot runs, implement the production process and
hand it over to the process owners.
DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma

15.  Defines a business process.
 Measuring current process
 Identify root cause of the
recurring PROBLEMS
 Improvements made to
reduce defects
 Keep check on future
performance
 Define customer needs
 Measure customer needs &
specification
 Analyze options to meet
customer satisfaction.
 Model is deigned to meet
customer needs
 Model put through simulation
tests for verification
 DMAIC  DMADV

16. SIGMA LEVEL DEFECT RATE YIELD
1 691,500 dpmo 30.85%
2 308,770 dpmo 69.10000%
3 66,811 dpmo 99.33000%
4 6,210 dpmo 99.38000%
5 233 dpmo 99.97700%
6 3.44 dpmo 99.99966%

17. Six Sigma and TQM are both quality-improvement systems
and attempt to reduce defective products or poor service in an
organization, while improving customer satisfaction
Both approaches first and foremost attempt to identify the
fundamental sources of defects and provide lasting cures that
will permanently enhance quality.

18. TQM SIX SIGMA
TQM’s focus is general
improvement by approaching
the problem collaboratively and
culturally.
While TQM strives for
increased levels of performance
In TQM, the definition of
quality is the level at which a
product/process meets the set
company standards.
While TQM doesn’t require full-
time dedication in supporting the
quality management process
Six Sigma utilizes the efforts of
many departments, it is more of a
statistical approach, and is
very much data driven.
Six Sigma focuses on setting
minimum standards and acceptance
requirements.
In Six Sigma, the definition is a
relational one, stressing that quality
is reflected in the least number of
defects, which must, as much as
possible, be eliminated.
Six Sigma approach requires
certified professionals in Six Sigma
techniques.
Differences between TQM and Six Sigma

19. Pros
Increase in customer loyalty
Increased bottom line
Shareholder Value
Customer Satisfaction
Increased employee satisfaction
Benefits to the supply chain

20. Cons
Applicability of Six Sigma is being argued among the 6 Sigma
critics.
Six Sigma gives emphasis on the rigidity of the process which
basically contradicts the innovation and kills the creativity.
People argue that Six Sigma is a bit gimmickly and simply a
rebranding of the continuous improvement technique and toll.
Six Sigma implementation constantly requires skilled man
force.

21. Case Study
MUMBAI DABBAWALA

22. NMTBSA
(Nutan Mumbai Tiffin Box Suppliers Association)
 History : Started in 1890
 Charitable trust : Registered in 1956
 Avg. Literacy Rate : 8th Grade Schooling
 Total area coverage : 60 kms
 Employee Strength : 5000
 Number of Tiffin’s : 2,00,000 Tiffin Boxes
i.e., 4,00,000 transactions every day
 Error rate : 1 in 16 million transactions
 Earnings : 8000 – 9000/month

23. ORGANIZATIONAL STRUCTURE
PRESIDENT
VICE PRESIDENT
GENERAL
SECRETARY
TREASURER
DIRECTORS
MUKADAM
MEMBERS(5000)
13 MEMBERS

24. How Do They Do It?
Executive committee
(5 members)
Teams of 20-25 headed
by a Group Leader
Individual Dabbawala
Workload = 30 tiffin’s

25. Operations
10:30 – 11:20 am
 This time period is actually the journey time. The dabbawalas
load the wooden crates filled with tiffin’s onto the luggage or
goods compartment in the train. Generally they choose to
occupy the last compartment of the train.

26. 11:20 am – 12:30 pm
 At this stage, the unloading takes place at the
destination station.
 Re-arrangement of tiffins takes place as per the
destination area and destination building.

27. 1:15 – 2:00 pm
 Here on begins the collection process where the
dabbawalas have to pick up the tiffin boxes from the
offices where they had delivered almost an hour back.

28. RETURN JOURNEY :
2:OO – 2:30 pm
 The group members meet for the segregation as per the
destination suburb.

29. 2:45 – 3:30 pm
 The return journey by train where the group finally
meets up after the day’s routine of dispatching and
collecting from various destination offices.
 Usually, since it is more of a pleasant journey compared
to the earlier part of the day, the dabbawalas lighten up
the moment with merry making, joking around and
singing.

30. 3:30 – 4:00 pm
 This is the stage where the final sorting and dispatch
takes place. The group meets up at the origin station
and they finally sort out the tiffins as per the origin
area.

31. CODING
 VLP :Vile Parle
(suburb in Mumbai)
 9E12 :Code for
Dabbawalas at destination
 E : Express Towers
(Bldg. Name)
 12 :Floor No.
 E :Code for Dabbawalas
at Residential station.
 3 :Code for Destination
station(Eg : Nariman point)

32. Some Achievements
 Six Sigma Performance (99.999999)
 World Record in “Best TIME Management”
 Name in “GUINESS BOOK Of World Records”

33. The ROYAL Visit :
 Recently, the dabbawalas had royal company at Church
gate station, Mumbai. The Prince of Wales (Prince
Charles) himself had visited them when he came down to
Mumbai.

34.  Sir Richard Branson, Chairman, Virgin Atlantic
Airways, meeting the Mumbai’s famed ‘Dabbawalas’ at
their nodal point, the Churchgate Railway Station in
South Mumbai, on April 1st, 2005.

35. Any
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