Chapter 1 :* Introduction *

Pressures continue to increase on boards of directors and CEOs to maintain a competitive edge in everything their companies do to achieve complete customer and shareholder satisfaction. Many organizations think they are as good as they can be, or if they acknowledge that there is room for improvement, do not realize there is a solution. Evidence related to an advanced concept called Six Sigma is proving that major progress can be made toward reducing defects, raising the quality of products and services to unheard of levels and improving customer satisfaction. Six Sigma is a statistical term that refers to 3.4 defects only per million processes undertaken by, or products made by, a company. Sigma, from the Greek alphabet, denotes standard deviation or the measure of variation in a process. Most organizations design or produce parts or products, or provide customer services, at the Three Sigma levelor 66,000 defects or mistakes per million units or service operations. Resting on reputation or frustrated with failed attempts at a variety of quality efforts, many boards and managers have wasted massive resources in people and funds trying without success to reduce rejects and improve quality to acceptable levels. The name Six Sigma, coined by Motorola in the 1980s,represents what is now the most advanced quality initiative available. Faced with aggressive Japanese competition, Motorola began a formal effort to reduce defects in its products. Company management set its target on the Six Sigma level of quality needed to achieve competitive advantage. Once implemented, it became a continuous program for improving quality in virtually everything Motorola does .Six Sigma has become the world standard for improving all kinds of product and service operations. Dr. A. Blanton Godfrey, chairman and CEO of Juran Institute, has said, We are entering another and an entirely new world of quality management with Internet-focused businesses. In a world where customers

can compare prices, quality and service offerings from several competitors in a matter of minutes, companies are rethinking their entire quality strategy and systems. If there is any doubt about the urgency to begin the development of a sustained process like Six Sigma, one must remember the realities underlying strategic planning for most organizations. Powerful forces are propelling inevitable changes in all levels of the work force, with customers, suppliers, governments, shareholders and other groups with vested interests, as well as with competitors.

Chapter 2 * What is Six Sigma ?*

Six Sigma is a financially - driven and data-driven set of methodologies for achieving near-perfect performance to meet or exceed customer expectations. The standard that it aims for is no more than 3.4 defects per million opportunities. Performance measures in cost, quality and/or time dimensions are improved via projects through the disciplined application of quality engineering, process management and statistical tools, armed with the power of todays computing capabilities. In his now classic book, Managerial Breakthrough, first published in 1964 (a 30th Anniversary edition was published by McGraw-Hill in 1994), Dr. Juran called such improvement breakthrough improvement to contrast it with incremental improvement in the 5 to 10 percent range. And referring to breakthrough improvement, he noted All improvement takes place project by project... and in no other way. This project approach to improvement has proven itself over the past 30 years to be the most effective way. Why? Because projects are organized efforts focused on achieving specific, measurable objectives. Assigned by management, project resources people, time, materials, budgets, training, and re-assignment of existing duties to free up key resources become legitimate and accountable. It is this legitimacy and accountability by all parties concerned which makes improvement happen effectively and efficiently. Six Sigma is an information-driven methodology for reducing waste increasing customer satisfaction and improving processes, with a focus on financially measurable results." This definition of Six Sigma is taken from a sales brochure published by Minitab Inc, who produces and distributes the well known statistical analysis software that is used by many of the companies listed above. An alternative definition, which was used in Motorola, offers a rather different perspective: " Six Sigma is a business philosophy of driving behavior by making an organizations values explicit in its compensation s5ystem

and a business strategy of cutting costs and boosting customer satisfaction." One of the founders of Six Sigma, within Motorola, was Mikel Harry. His opinions are widely sought. Also, the Six Sigma Breakthrough Strategy is defined as: "...A disciplined method of using extremely rigorous data gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them." Each of the three definitions focuses on important aspects of Six Sigma, but none of them is complete. Perhaps it is not possible to define Six Sigma in one simple sentence and it would be easier to define Six Sigma by describing the characteristics that are shared by the companies in which it has succeeded. One of these common characteristics is a widespread focus on processes and the existence of a company-wide language for describing the capability of processes. Six Sigma is an important structured program for improving business Processes and, as many voices pretend, it represents the latest incarnation of the quality movement. The program, grounded in efforts to improve manufacturing quality during the 1980s, brings the methods and analytic tools of engineers to bear on the questions, what is really important for customers? And where will changes to work processes must improve these points? The basic idea behind the Six Sigma philosophy is to continuously reduce product and process variation. Therefore an important part of Six Sigma work is to define and measure variation with the intent of discovering its causes and to develop efficient operational means to control and reduce the variation. The expected outcomes of Six Sigma efforts are: 1) Faster and more robust product development, 2) Imore efficient and capable manufacturing processes, 3) More confident overall business performance. In order to reduce the variation to a very low level, the first step is to "design for productivity". This means that designers configure a product in such a manner that its performance is "shielded" against

variation. By doing this, the organization can be sure that its products will consistently perform to the specified levels as so all of the product will be on target with minimum differences between units of product. The next step is to find out, control and eventually eliminate all main causes of variation in the manufacturing processes involved in both the supplied parts and the final assembly. This is done using statistical process control and other tools including 1) Computer simulation, 2) Short cycle manufacturing, 3) Part standardization and supplier qualification, 4) Supplier statistical process control, 5) Participative management practices, 6) Design of experiments, measurement system analysis, 7) Failure mode and effect analysis. With this basement already built, it can be considered that The Six Sigma companies are concerned with the reduction of variation and with the reduction of defective products and services. However, they often focus on defects per million opportunities or DPMO as metric, and their performance standards are: 1. A 3 Sigma process produces less than 66 810 DPMO. 2. A 4 Sigma process produces less than 6 210 DPMO. 3. A 5 Sigma process produces less than 233 DPMO. 4. A 6 Sigma process produces less than 3.4 DPMO. But, as a Polaroid executive pointed out, Six Sigma practitioners do not simply focus on defects, they concentrate on improvement of the processes that produce the defects. This focus demonstrates the amount of change required and the kind of improvement in quality that has to be achieved by firms.

Chapter 3: * Why Sigma ? *

Sigma, (...,is a letter in the Greek alphabet. It is used as a symbol to denote the standard deviation of a process (standard deviation is a measure of variation). A process with six sigma capability means having six standard deviations between the process mean and either specification limit. Essentially, process variation is reduced so that no more than 3.4 parts per million fall outside the specification limits. Hence, as a metric, the higher the number of sigmas, the better. In most companies, processes operate between Three and Four Sigmas. At the Three Sigma level, there are about 66,800 dpmo or defects per million opportunities (as in opportunities for error). At Four Sigma, it is 6,210 dpmo. And at Six Sigma, it is 3.4 dpmo. The table above compares the Sigma level with yield and dpmo from One Sigma to Six Sigma. (Table1)

Chapter 4: * THEORY: *
Six Sigma relies on the normal distribution theory to predict defect rates. As we all know, variation is inevitable in any process. The variation can be due to chance causes that are inherent in the process [chance variation] or due to assignable causes that are external to the process [Assignable variation]. If we detect and remove all the assignable causes and bring the process under the influence of chance causes, then the process is said to be under statistical control. The process capability (PC) is defined as six times the standard deviation ( ). PC represents the measured inherent reproducibility of the product turned out by the process.

The upper specification limit (USL) and lower specification limit (LSL) of +/- 6 of the mean with a defect rate of 0.001 ppm . The process capability index Cp. is defined as ratio of specification width to PC. Cp= (USL-LSL)/(6 ) Cp. is 2 for a six sigma process, which means that the inherent process variation is half of the specification width.

Chapter 5: * The Methodologies *

Six Sigma methodology breaks down into 12 steps: a) MEASURE 1. Select the characteristic critical-to-quality (CTQ) 2. Define performance standards 3. Validate measurement system b) ANALYZE 4. Establish product capability 5. Define performance objectives 6. Identify variation sources c) IMPROVE 7. Screen potential causes 8. Discover variable relationship 9. Establish operating tolerances d) CONTROL 10. Validate measurement system 11. Determine process capability 12. Implement process controls

There are basically two Six Sigma methodologies. One for improvement, and one for the design of a product, service or process. Six Sigma Improvement follows The D-M-A-I-C cycle, as follows: 1:- Define identifying, prioritizing, and selecting the right project(s) 2:- Measure key product, service or process characteristics, parameters and performance 3:- Analyze by identifying key causes and process determinants, 4:- Improve by changing the process and optimizing performance 5:- Control by holding the gains.

Six Sigma Design of a new product, service or process follows the D-M-A-D-V cycle. DMADV is different from DMAIC in many ways. 1:- Define Provides direction, with the development of the Team Charter. 2:- Measure Translates several customer needs into several CTQs. (Critical-To- Quality i.e. Whats critical to quality in the eyes of the customer). DMAIC typically focuses on one CTQ. 3:- Analyze Identifies alternative design concepts and then develops one or more into a high level design. 4:- Design DMAIC focuses on identifying root causes of a problem Develops a retained Design with associated design elements and critical to process variables identified. 5: - Verify: - implement the pilot and prepare for full-scale rollout and put control mechanisms in place. There is a third methodology, called Six Sigma for Transactional Processes which is an adaptation of DMAIC and DMADV to processes which do not have a manufactured product. Examples include the billing process at an American Express, or the logistics and maintenance processes for airlines. Six Sigma starts at the top It is essential that commitment to Six Sigma starts and remains with direct and well-publicized involvement of the CEO. Experience has proven that it is a waste of valuable resources if the CEO does not express his or her personal vision, provide steady and enthusiastic encouragement, and assess results and reward participants. He or she must articulate what it means to the companys bottom line and make clear that full participation is the only choice. Experience shows that, once involved, employees become its biggest boosters. Six Sigma begins with an executive briefing to help executives gain a common understanding of Six Sigma. Following this is a two-day Champion workshop that generates excitement among the management ranks.

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Next comes the selection of a small number of employees whom outside specialists will train as Black Belts. Many of them will devote full time in carrying out each project. Four interactive sessions off our days each over a period of about 16 weeks are conducted for these employees who will be certified as Black Belts. During the intervening weeks, these participants apply what they learn to their respective selected projects. In order to be certified Black Belts, the candidates must show cost savings of at least US$100,000 from their first project. Black Belts become on-site Six Sigma implementation experts who develop, coach and lead cross-functional teams, mentor and advise management on prioritizing, planning and launching Six Sigma projects and share their knowledge with Green Belts and team members. Green Belts are employees who are usually members of a project team. The Black Belt candidates are already professionals in the fields of design, engineering, manufacturing, supply chain management, finance, marketing and information technology. During their two to three year stint as full-time Black Belts, they report to Master Black Belts, and there are Green Belts to support them in their project work. Literally everything a company does is a candidate for Six Sigma. Whether it is design, yield, productivity, communication, paperwork, training, response time, attitude or organizational structure it is all of those and more. Six Sigma is already making a strong impact in a wide range of functions and processes, including design and manufacturing processes, supply chain and e-business processes, and transactional processes such as procurement, writing an insurance policy or training new workers. At Honeywell, its Six Sigma implementation is called Six Sigma Plus. It is positioned as the companys principal engine for driving growth and productivity across all its businesses, as well as administrative functions. Honeywell has realized $2.2 billion in cumulative savings from Six Sigma-related activities. It saved more than $600 million in 2000 and this year it expects Six Sigma Plus cost savings to total at least as much. At its corporate website, Honey-well states, Through Six Sigma Plus,

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Honeywell empowers its employees with the skills and tools necessary to create more value for its customers; improve its processes, products, and services, and grow the company by capitalizing on the power of the Internet through e-Business. For instance, a Six Sigma Plus team met a critical customer need by creating the first and largest Internet auction site for used truck and automotive parts. The site could generate more than $100 million in additional high margin revenue for Honeywell within five years. Another Six Sigma Plus team uses the Internet to accelerate the retrieval of customer payments. By using Six Sigma Plus methodologies, it has seen an improvement in cash flow worth $6 million over 14 months. The possibilities for improvement and cost savings are significant, but Six Sigma requires a commitment of time, talent, dedication, disciplined persistence and of course, financial investment. It is a pervasive effort that creates unprecedented focus and teamwork at all levels throughout a company.

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Master Black Belts and Green Belts :Perhaps the most striking feature of the Six Sigma companies is that they have among their employees a high profile group known as Black Belts. (Most of the companies also have Master Black Belts and Green Belts). The term Six Sigma Black Belt was first introduced by the Motorola Corporation to describe employees who are trained and experienced in applying statistical techniques to business processes and procedures so that they can make major positive contributions to the bottom line . A Black Belt devotes much, if not all, of his/her time to the important task of leading process improvement projects. Black Belts are high potential employees who have received extensive training in statistics, interpersonal skills, problem solving, project management, etc. Black Belt trained employees are used to assist in measuring how well their present business strategies are meeting company objectives, as well as developing strategies to reduce costs, cycle times and defects while increasing profitability and competitive advantage . Typically, the Black Belt training has duration of four weeks: it may consist of 2 two-week courses, or 4 oneweek courses, or a succession of shorter courses. In many cases, the Black Belt does not become qualified until he/she has completed the training and also led one or two projects to a successful conclusion. Training to become a Black Belt includes a rigorous learning schedule of different statistical techniques, as well as the practice of applying these tools in real-life business situations . Allied to these criteria, before being awarded Black Belt status, the person must demonstrate problem-solving, project management and team leadership skills. The systematic training approach followed typically involves the five (sometimes only the last four are mentioned) problem solving-steps of: define, measure, analyze, improve and control . Black Belts use the five-step approach to instigate cost-saving projects as follows : 1. definition of problem, 2. measurement of characteristics that are critical-to-quality (CTQ),

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3. analysis using benchmarking and gap studies, 4. improvement 5. control. As with the introduction of TQM and other projects involving major change, the way in which Six Sigma Black Belts are trained and utilized has important repercussions for the success or otherwise of the initiative. Black Belt projects often last for four to eight months, with each Black Belt having two or more projects running in parallel. Many Black Belts appear to enjoy high job satisfaction and high status within their company. But it does not last forever. It may well be company policy that a certified Black Belt should move on after two years. A small number would become Master Black Belts, but many would return to line management with enhanced prospects of promotion. Consequently, the most noticeable features of the Six Sigma companies are the companywide discussion of process capability and the existence of Black Belts who are charged with the responsibility for improving the processes. If these were the only characteristics shared by these successful companies, anybody would wonder if Six Sigma was the root cause of this success. However, a closer examination of the less visible features reveals, in every case, a company culture that strongly supports the work of the Black Belts and their project team members.

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Chapter 6: *ASSUMPTIONS: *
1. The most significant assumption is that each process parameter is characterised by a normal distribution, but in real world, there can be many situations where non-normal distributions are present. In such cases, the actual defect rates might be significantly higher than the predicted defect rates. Therefore, non-normal distribution is likely to lead to unexpected erroneous results. The defects are randomly distributed through out the units. Parts and process steps are independent of each other. This may not always be true; in which case the use of Poisson distribution for computing the defect rates and process yields might become invalid.

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Chapter 7: *APPLICATIONS*
A process that operates at 4.6 Sigma is operating at 99.9% quality level. That means: 4000 wrong medical prescriptions each year More than 3000 newborns being dropped by doctors/nurses each year 2 long or short landings at American airports each day 400 lost letters per hour A process that operates at the 6 Sigma level is operating at 99.9997% quality level. At 6 Sigma, these same processes would produce: 13 wrong drug prescriptions per year 10 newborns dropped by doctors/nurses each year 2 long or short landings at U.S. airports each year 1 lost letter per hour

Mikel J. Harry, one of the developers of Six Sigma at Motorola, has estimated that the average company in the Western world is at a 4 Sigma level, while 6 Sigma is not uncommon in Japan.1 Dave Harrold, in Control Engineering 2 cites benchmark sigma levels broken down by industry and type of process: IRS phone-in tax advise - 2.2 Restaurant bills, doctors prescription writing, and payroll processing - 2.9

Average company - 3.0 Airline baggage handling - 3.2 Best in class companies - 5.7 U.S. Navy aircraft accidents - 5.7 Watch off by 2 seconds in 31 years - 6 Airline industry fatality rate - 6.2 Clearly, the value of sigma is its universal application

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Chapter 8: * Conclusion *
Six sigma is a long term commitment treating deployment as a process allows objective analysis of all the aspects of the process including project selection and scooping projects should be selected that meet the goals of an organizations business strategy six sigma can then be utilized as a roadmap to effectively meet those goals. Utilizing lessons learned and incorporating them into subsequent waves of an implementation plan creates a closed feedback loop and real opportunities for improvement. Deploying six sigma through projects, can lead to

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dramatic bottom line benefits. If organization inverts the time and executive energy necessary to implement a process to create a successful six sigma infrastructure. Through wise implementation of six sigma, the success of individual projects can build upon each other gaining the sustained attention of executive management and resulting in a corporate culture change from a reactive or fire fighting environment to a learning organization. Understanding threats and recognizing new opportunities for growth, not only to survive but to actually thrive within competitive environments.

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* References
Sr No Paper Name Author

*
Publication Paper

Six Sigma Quality PDCA Methodology

G.Michael Smith

SAE

2001-011117

Six Sigma Implementation Process

Forrest W.Breyfogle Becki Meadows

SAE

2001-011109

Six Sigma Quality Points & Counterpoints

Hans J. Bajaria

SAE

2001-011116

Six Sigma Certification Hoax Or Benefits

D.H.Stamatis R.A.Munro.

SAE

2002-010895

Six Sigma A New approach To Quality Management

Joseph A DeFeo

Juran Institute

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* Websites:www.juran.com www.isixsigma.com

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www.qualityamerica.com www.smartersolutions.com

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