Six Sigma

A PAPER PRESENATATION ON SIX SIGMA By, 1. Nagaraja.C

emailid:happynaga@gmail.com

2. Sundaram Singh
emailid:yoursundaram@gmail.com

Abstract:

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Six Sigma has been gaining momentum in industry; however, academics have conducted little research on this emerging phenomenon. Understanding Six Sigma first requires providing a conceptual definition and identifying an underlying theory. Our research argues that although the tools and techniques in Six Sigma are strikingly similar to prior approaches to quality management, it provides an organizational structure not previously seen. This emergent structure for quality management helps organizations more rigorously control process improvement activities, while at the same time creating a context that enables problem exploration between disparate organizational members. Although Six Sigma provides benefits over prior approaches to quality management, it also creates new challenges for researchers and practitioners.

Introduction:
Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to its specifications. While the particulars of the methodology were originally formulated by Bill Smith at Motorola in 1987, Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects. Like its predecessors, Six Sigma asserts the following: Continuous efforts to reduce variation in process outputs is key to business success Manufacturing and business processes can be measured, analyzed, improved and controlled Succeeding at achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

Six Sigma terminology:

Sigma () = Standard Deviation
Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Key measure of Variability Emphasizes need to control both the average and variability of a process

Six Sigma Quality:

1. Sigma Quality Level (SQL) measure used to indicate how often defects are likely to occur 2. Realization that 99% Yield is not good enough Unsafe drinking water almost 15 minutes each day 2 short or long landings at most major airports each day No electricity for almost 7 hours per month The term "Six Sigma" refers to the ability of highly capable processes to produce output within specification. In particular, processes that operate with six sigma quality produce at defect levels below 3.4 defects per (one) million opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of quality or better.

Methodology:
Six Sigma has two key methodologies: DMAIC and DMADV both inspired by W. Edwards Deming's Plan-Do-Check-Act Cycle: 1. DMAIC is used to improve an existing business process, and 2. DMADV is used to create new product or process designs for predictable, defect-free performance.

DMAIC Basic methodology consists of the following five steps:

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Define the process improvement goals that are consistent with customer demands and enterprise strategy.

Measure the current process and collect relevant data for future comparison. Analyze to verify relationship and causality of factors. Determine what the relationship is, and attempt to ensure that all factors have been considered.

Improve or optimize the process based upon the analysis using techniques like Design of Experiments.

Control to ensure that any variances are corrected before they result in defects. Set up pilot runs to establish process capability, transition to production and thereafter continuously measure the process and institute control mechanisms.

DMADV Basic methodology consists of the following five steps: Define the goals of the design activity that are consistent with customer demands and enterprise strategy. Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments. Analyze to develop and design alternatives, create 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 production process and handover to process owners. Other Design for Six Sigma methodologies

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Six Sigma as applied to product and process design has spawned an alphabet soup of alternatives to DMADV. Notable examples include: Methodology Proponent

DCCDI (Define, Customer Concept, Design and Geoff Tennant Implement) CDOC (Conceptualize, Design, Optimize, Control) SBTI

DCDOV* (Define, Concept, Design, Optimize, Verify) Uniworld DMADOV (Define, Measure, Analyze, Design, General Electric

Optimize and Verify)

DMEDI (Define, Measure, Explore, Develop and PricewaterhouseCoopers Implement) IDOV (Identify, Design, Optimize and Validate)

I2DOV Validate)

(Invent,

Innovate,

Develop,

Optimize,

Implementation roles:
Six Sigma identifies several key roles for its successful implementation. Executive Leadership includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Champions are responsible for the Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from the upper management. Champions also act as mentors to Black Belts. At GE this level of certification is now called "Quality Leader".

Master Black Belts, identified by champions, act as in-house expert coaches for the organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from the usual rigor of statistics, their time is spent on ensuring integrated deployment of Six Sigma across various functions and departments.

Experts, this level of skill is used primarily within Aerospace and Defense Business Sectors. Experts work across company boundaries, improving services, processes, and products for their suppliers, their entire campuses, and for their customers. Raytheon Incorporated was one of the first companies to introduce Experts to their organizations. At Raytheon, Experts work not only across multiple sites, but across business divisions, incorporating lessons learned throughout the company

Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.

Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.

Yellow Belts are employees who have been trained in Six Sigma techniques as part of a corporate-wide initiative, but have not completed a Six Sigma project and are not expected to actively engage in quality improvement activities.

Who is Implementing Six Sigma:

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Six Sigma

Financial - Bank of America, GE Capital, Electronics - Allied Signal, Samsung, Sony Chemicals - Dupont, Dow Chemicals. Manufacturing - GE Plastics, Johnson and Johnson, Motorola, Nokia, Microsoft, Ford.

Airline - Singapore, Lufthansa, Bombardier. And hundreds of others in Americas, Europe, Sub Continent.

Benefits of Six Sigma:

Generates sustained success. Sets performance goal for everyone. Enhances value for customers. Accelerates rate of improvement. Promotes learning across boundaries. Executes strategic change.

Research directions:
There are several directions that future research can take. One of them is testing the above propositions. Also an important issue is investigating what types of organizations are likely to successfully adopt Six Sigma. It seems that there are at least three contingencies regarding Six Sigma that could be tested via contingency theory.

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

1. Most, but not all, companies track financial results from each project. At SERV, for example, they were tracking improvement in customer satisfaction rather than dollars saved. Perhaps certain industries might not be as interested in tracking financial savings as others. 2. Most, but not all, companies use full-time Black Belts to lead projects. At MFG we found that Black Belts were not used in design for Six Sigma, since engineers were already assigned to projects full-time. 3. Employees involved in the projects we studied varied in their use of statistical tools and in their rigor at following all the steps of DMAIC. This tended to be true when the root cause for improving the process was known in advance or when there was a lack of data. There are no doubt other contingencies that can be specified and tested. This would stand in contrast to those who argue one size fits all. Another interesting research project would be to study the benefits that actually accrue from Six Sigma. While project savings can be totaled, they might not translate into organizational savings or improvements in the bottom line. There is also the question of how to measure savings from design projects when the major benefit is cost avoidance. Also, there is no established methodology for measuring revenue enhancements that occur from improved customer satisfaction or increased market share. Internal fit could be another area of interesting research. The culture of the organization, along with its structure, might be averse to implementation of Six Sigma and thus require changes in the shared values of the employees and in the structure of the company. An aversive culture could inhibit the implementation of Six Sigma and may ultimately defeat it, particularly if there is CEO turnover. The study of Six Sigma sustainability is closely related to the question of internal fit. Six Sigma is an organizational learning process and one that results in greater knowledge. Viewing Six Sigma through the lens of knowledge management and organizational learning can lead to insights about how to create, retain, and diffuse knowledge using a structured approach.

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Finally, we suggest that Six Sigma be viewed as an organization change process. This might provide improved ways for implementation of the Six Sigma process and a more enlightened analysis of what needs to be changed. It might also improve management of the change management process itself. There is certainly ample literature about organizational change that could be used as a starting point (Van de Ven and Poole, 1995).

Conclusions:
We have proposed an emergent base definition of Six Sigma and an initial theory based on a grounded theory approach. Although Six Sigma builds off prior quality management practices and principles, it offers a new structure for improvement. The structural differences simultaneously promote both more control and exploration in improvement efforts. Some organizations may find benefit from the Six Sigma approach because it fits their organizational needs better. Academics need to better understand Six Sigma so that they do not overhype it or too quickly dismiss it as nothing new. By better defining and adequately understanding Six Sigma, scholars can develop a deeper and richer knowledge of this phenomenon. Our research makes four contributions: 1. It proposes a rigorous base definition of Six Sigma from the literature and field study that can be used for further research. A phenomenon cannot be scientifically studied until it is defined; therefore, we provide a starting point for future research on Six Sigma. 2. We provide an underlying theory for Six Sigma research derived from observation and the literature. The theory includes the concepts of ambidextrous organizations, parallel-meso organization, structural control and structural exploration. 3. We suggest well-grounded propositions and a framework for future empirical testing.

References:

Adams, Cary W.; Gupta, Praveen; Wilson, Charles E. (2003). Six Sigma Deployment. Burlington, MA: Butterworth-Heinemann.

Dept. of Mechanical B.I.E.T, Davangere

Six Sigma

Breyfogle, Forrest W. III (1999). Implementing Six Sigma: Smarter Solutions Using Statistical Methods.

Keller, Paul A. (2001). Six Sigma Deployment: A Guide for Implementing Six Sigma in Your Organization.

"Motorola University - What is Six Sigma?". Motorola University Six Sigma Dictionary" . http://www.motorola.com/content/0,,30745804,00.html#ss. Retrieved on January 29, 2006.

Dept. of Mechanical B.I.E.T, Davangere