6

6
How to create a culture that thinks and
operates in terms of complete customer
satisfaction? How to build a workforce that is
engaged and committed to the success of the
company?
Definition.
Six sigma can be best described as a business process improvement
approach that seeks to find and eliminate causes of defects and errors,
reduce cycle times and cost of operations, improve productivity, better
meet customer expectations, and achieve higher asset utilization and
returns on investment in manufacturing and service processes.
What is 6?
It is the measure of
Quality: the capability of
a process to produce
perfect work.
indicates how often
defects are likely to
occur.
High leads to low
defects leads to high
quality.
A disciplined, data-driven,
deliberate, diligent
practice.
T he Sigma and % accuracy
Defects per Million
Opportunities (DPMO)
% Accuracy
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%
99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour
Unsafe drinking water for almost
15 minutes each day
5,000 incorrect surgical operations
per week
Two short or long landings at most
major airports each day
200,000 wrong drug prescriptions
each year
No electricity for almost seven
hours each month
Seven articles lost per hour

One unsafe minute every seven
months
1.7 incorrect operations per week
One short or long landing every five
years
68 wrong prescriptions per year
One hour without electricity
every 34 years
99% Good (3.8 Sigma)
6 :
Best or Better than the Best?
Why would a company adopt Six
Sigma?
Around for 16 years;
isnt just a fad.


Around for 16 years;
isnt just a fad.

Continues to evolve



Most endurance and
return on
investment
ROLES AND RESPONSIBILITIES
IN SIX SIGMA MANAGEMENT
6
Senior Executive
Green Belts
Black Belts
Master Black Belts
Champion
Executive Committee Member
ROLES AND RESPONSIBILITIES
IN SIX SIGMA MANAGEMENT
Senior Executive:
1. Lead the Executive in linking objectives to six sigma projects.
2. Maintain a long term view.
3. Constantly and consistently, publicly and privately champion Six Sigma management.

Executive Committee Member:
1. Deploy Six Sigma throughout the organization.
2. Assign Champions, Black Belts , and Green Belts to Six Sigma Projects.
3. Conduct reviews of Six Sigma projects.
4. Improve Six Sigma process.

ROLES AND
RESPONSIBILITIES IN SIX
SIGMA MANAGEMENT
Champion:
1. Develop and negotiate the project objective with the executive committee.
2. Select a Black Belt to lead the project team.
3. Assure that Six Sigma methods and tools are being used in the project.
4. Keep the team focused on the project by providing direction and guidance.
Master Black Belt:
1. Teach Black Belts and Green Belts Six Sigma theory, tools, and methods.
2. Continually improve and innovate the organizations Six Sigma process.
3. Apply Six Sigma Across both operations and transactions-based processes.
ROLES AND
RESPONSIBILITIES IN SIX
SIGMA MANAGEMENT
Black Belt:
1. Help to prepare a project objective.
2. Lead Six Sigma Project Team.
3. Coach Green Belts leading projects limited in scope.
4. Communicate with the champion and process owner about progress of
the project.
5. Provide training in tools and team functions to prepare team members.
Green Belt:
1. Define the project objective.
2. Select the team members for the project.
3. Analyze data through all the phases of the project.
4. Train team members in the use of Six Sigma tools.
THE DMAIC SIX SIGMA
IMPROVEMENT MODEL
Define

Identify Project that is measurable
Develop team charter
Define process map

Measure

Define performance standards
Measure current level of quality
into Sigma level
Analyze

Establish process capability
Define performance objectives
Identify variation sources
Improve

Screen potential causes
Discover variable relationships
Establish operating tolerances
Control

Ensure that the result is sustained
Share the lessons learnt
CASE STUDY : MAIL ORDER
FULFILLMENT
Define And Measure
Currently about 10 errors per month
Approximately 3% error rate
Target : To reduce error rate by 50%
What to Target
Analyze
Part of the problem due to retyping of orders resulting
into address and order errors.
Also another was tracking of shipped products.

Improve and Prevent
Capture all orders electronically and divert them to a
billing software.
Also divert all phone customers to internet
Import all orders on the phone through the internet
Use Stamps.com to create shipping labels, which in
turn will save delivery confirmation (.45$/order)
Results
2 months to implement
Reduction in errors by approximately 75%
DMADV
Define
Measure
Analyze
Design
Verify
Before Six Sigma
GE operations carried out at 3-4 sigma

35000 defects per million opportunities

Avoidable expenditure of $7-$10 billion
Key Elements of Quality for GE
1)the Customer
Delighting Customers

2)the Process
Outside-In Thinking

3)the Employee
Leadership commitment

After implementation of Six
Sigma


Reaping the Benefits of Six
Sigma
Old economy Industrial giant>>>Competitive &
growing
5 yrs implementation- annual benefits of $2.5 billion
worldwide
Indisputable Success
a) Customer Satisfaction
b) Internal Performance
c) Improvement of Shareholders value
Why Six Sigma for GE?
Why Six Sigma and not ISO-9000?

ISO-9000 requires to record your processes

It does not help you become a better business

Mumbai Dabbawallahs
Profile of Dabbawallahs
Originated in the 19
th
century

Apprx 5000 dabbawallahs deliver 200000 lunches daily

The Nutan Mumbai Tiffin Box Supplier Association (NMTBSA)
Apex Body

Dabbawallahs and Six sigma affiliation

Organizational Structure
Executive Committee Mukadam Dabbawallah

- It is rated SIX SIGMA by the Forbes Magazine (1998)
The Entire Process
Working Day of a Dabbawallah

Onward Journey - 8:30 -10:30-35 a.m.
Journey Time - 10:35 - 11:20 a.m.
Sorting at Destination Station and delivery
- 11:20 a.m. to 12:30 p.m
The Final Journey of the Day 3:00 - 4:00p.m.

VIDEO
The System - How they do
it?

Collection Sorting Delivery Zero Documentation
- Sorting Process makes the entire system error free

Combination of Baton Relay system and Hub and spokes
system

Indigenously developed delivery process

Only change and fine tuning in 1996


Medge: If we were to use computers, we would be out of
business
Coding System
BO- Code for the residential location (e.g.
Borivali)
9 AI 12- Code for Dabbawallah to use at the
destination location
9- Code for the Dabbawallahs at the destination
station.
AI- Code for the building name (e.g. Air India
Building)
12- Code for the floor number.
E- Code for Dabbawallah at the Residential
Railway Station.
3- Code for the destination (e.g. Nariman Point)
Codes are painted on the top of each dabba in
distinct group colours. Apart from
alphanumeric codes Dabbawallah also uses
certain symbols
How is it able to achieve a Six Sigma
notation ?
Major reasons:

Simplified coding system.
High conformity to the system.
Buffer in lead-time.
Stress on Discipline
Confined by limits of human capabilities.
Efficient Railway system

"Error is horror" says Talekar Executive Chairman, NMTBSA
What do we learn?
The belief that technology is indispensable to solve complex
problems was shattered. FMCGs and other industries can learn a lot
from the simple supply chain logistics and efficient reverse logistics

The concept of multi-level coding and reverse logistics can be
implemented in industries as diverse as soft drinks, pharmaceuticals
and other FMCG areas.

Customer should be given the highest preference

A Model Of Managerial and Organizational Simplicity - C. K.
Prahalad, Professor
What are the Challenges of Six
Sigma?...
Sick Sigma

It is not a quick fix nor a recipe.

Consultants cant make it happen.

Training

Implementation tends to be uneven

Not everything has to be Six Sigma



Rewards of Six Sigma!
Reliability and predictability of software

Customers and shareholders

Organizational morale

Reduction in defects

Process mindset
SIX SIGMA V/S KAIZEN
Six Sigma Kaizen
Most robust Easiest method


Thank You!!
By
- Dhaval Doshi, 102
- Jainee Parekh, 130
-Rinkesh Shah, 146
- Niral Shanghvi, 152
- Pankeel Solanki, 155
- Mihir Vora, 161