Six Sigma is a business management strategy, originally developed by

Motorola, that today enjoys widespread application in many sectors of

industry.

Six Sigma seeks to identify and remove the causes of defects and errors in

manufacturing and business processes. It uses a set of quality management

methods, including statistical methods, and creates a special infrastructure of

people within the organization ("Black Belts" etc.) who are experts in these

methods. Each Six Sigma project carried out within an organization follows

a defined sequence of steps and has quantified financial targets (cost

reduction or profit increase).

HISTORICAL OVERVIEW
Six Sigma was originally developed as a set of practices designed to

improve manufacturing processes and eliminate defects, but its application

was subsequently extended to other types of business processes as well. In

Six Sigma, a defect is defined as anything that could lead to customer

dissatisfaction.

The particulars of the methodology were first formulated by Bill Smith at

Motorola in 1986. Six Sigma was heavily inspired by six preceding decades

of quality improvement methodologies such as quality control, TQM, and

Zero Defects, based on the work of pioneers such as Shewhart, Deming,

Juran, Ishikawa, Taguchi and others.

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Like its predecessors, Six Sigma asserts that –

Continuous efforts to achieve stable and predictable process results (i.e.

reduce process variation) are of vital importance to business success.

Manufacturing and business processes have characteristics that can be

measured, analyzed, improved and controlled.

Achieving sustained quality improvement requires commitment from the

entire organization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement

initiatives include –

1.A clear focus on achieving measurable and quantifiable financial returns

from any Six Sigma project.

2.An increased emphasis on strong and passionate management leadership

and support.

3.A special infrastructure of "Champions," "Master Black Belts," "Black

Belts," etc. to lead and implement the Six Sigma approach.

4.A clear commitment to making decisions on the basis of verifiable data,

rather than assumptions and guesswork.

The term "Six Sigma" is derived from a field of statistics known as process

capability studies. Originally, it referred to the ability of manufacturing

processes to produce a very high proportion of output within specification.

Processes that operate with "six sigma quality" over the short term are

assumed to produce long-term defect levels below 3.4 defects per million

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opportunities (DPMO).Six Sigma's implicit goal is to improve all processes

to that level of quality or better.

Six Sigma is a registered service mark and trademark of Motorola, Inc.

Motorola has reported over US$17 billion in savings from Six Sigma as of

2006.

Other early adopters of Six Sigma who achieved well-publicized success

include Honeywell (previously known as AlliedSignal) and General Electric,

where the method was introduced by Jack Welch. By the late 1990s, about

two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives

with the aim of reducing costs and improving quality.

In recent years, Six Sigma has sometimes been combined with lean

manufacturing to yield a methodology named Lean Six Sigma.

Origin and meaning of the term "six sigma process"

Graph of the normal distribution, which underlies the statistical assumptions

of the Six Sigma model. The Greek letter σ marks the distance on the
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horizontal axis between the mean, µ, and the curve's inflection point. The

greater this distance is, the greater is the spread of values encountered. For

the curve shown in red above, µ = 0 and σ = 1. The other curves il

lustrate

different values of µ and σ.

The following outlines the statistical background of the term Six Sigma.

Sigma (the lower-case Greek letter σ) is used to represent the standard

deviation (a measure of variation) of a statistical population. The term "six

sigma process" comes from the notion that if one has six standard deviations

between the process mean and the nearest specification limit, there will be

practically no items that fail to meet specifications. This is based on the

calculation method employed in process capability studies.

In a capability study, the number of standard deviations between the process

mean and the nearest specification limit is given in sigma units. As process

standard deviation goes up, or the mean of the process moves away from the

center of the tolerance, fewer standard deviations will fit between the mean

and the nearest specification limit, decreasing the sigma number and

increasing the likelihood of items outside specification.

Role of the 1.5 sigma shift

Experience has shown that in the long term, processes usually do not

perform as well as they do in the short. As a result, the number of sigmas

that will fit between the process mean and the nearest specification limit is

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likely to drop over time, compared to an initial short-term study. To account

for this real-life increase in process variation over time, an empirically-based

1.5 sigma shift is introduced into the calculation.According to this idea, a

process that fits six sigmas between the process mean and the nearest

specification limit in a short-term study will in the long term only fit 4.5

sigmas – either because the process mean will move over time, or because

the long-term standard deviation of the process will be greater than that

observed in the short term, or both.

Hence the widely accepted definition of a six sigma process is one that

produces 3.4 defective parts per million opportunities (DPMO). This is

based on the fact that a process that is normally distributed will have 3.4

parts per million beyond a point that is 4.5 standard deviations above or

below the mean (one-sided capability study). So the 3.4 DPMO of a "Six

Sigma" process in fact corresponds to 4.5 sigmas, namely 6 sigmas minus

the 1.5 sigma shift introduced to account for long-term variation. This is

designed to prevent underestimation of the defect levels likely to be

encountered in real-life operation.

Sigma levels

Taking the 1.5 sigma shift into account, short-term sigma levels correspond

to the following long-term DPMO values (one-sided):

One Sigma = 690,000 DPMO = 31% efficiency

Two Sigma = 308,000 DPMO = 69.2% efficiency

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Three Sigma = 66,800 DPMO = 93.32% efficiency

Four Sigma = 6,210 DPMO = 99.379% efficiency

Five Sigma = 230 DPMO = 99.977% efficiency

Six Sigma = 3.4 DPMO = 99.9997% efficiency

SIX SIGMA –WHAT IS SIX SIGMA?

Six Sigma at many organizations simply means a measure of quality that

strives for near perfection. Six Sigma is a disciplined, data-driven approach

and methodology for eliminating defects (driving towards six standard

deviations between the mean and the nearest specification limit) in any

process -- from manufacturing to transactional and from product to service.

The statistical representation of Six Sigma describes quantitatively how a

process is performing. To achieve Six Sigma, a process must not produce

more than 3.4 defects per million opportunities. A Six Sigma defect is

defined as anything outside of customer specifications. A Six Sigma

opportunity is then the total quantity of chances for a defect. Process sigma

can easily be calculated using a Six Sigma calculator.

The fundamental objective of the Six Sigma methodology is the

implementation of a measurement-based strategy that focuses on process

improvement and variation reduction through the application of Six Sigma

improvement projects. This is accomplished through the use of two Six

Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC

process (define, measure, analyze, improve, control) is an improvement

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system for existing processes falling below specification and looking for

incremental improvement. The Six Sigma DMADV process (define,

measure, analyze, design, verify) is an improvement system used to develop

new processes or products at Six Sigma quality levels. It can also be

employed if a current process requires more than just incremental

improvement. Both Six Sigma processes are executed by Six Sigma Green

Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master

Black Belts.

According to the Six Sigma Academy, Black Belts save companies

approximately $230,000 per project and can complete four to 6 projects per

year. General Electric, one of the most successful companies implementing

Six Sigma, has estimated benefits on the order of $10 billion during the first

five years of implementation. GE first began Six Sigma in 1995 after

Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands

of companies around the world have discovered the far reaching benefits of

Six Sigma.

Six sigma is a statistical level that represents 3.4 defects per million. Six

Sigma is a process that has been around since the late 1970s and mid-1980s.

It was developed by Mikel Harry at Motorola in an effort to minimize costs

attributed to poor quality for the company. Though Harry is credited with

creating the modern day Six Sigma, its roots can be traced to Philip Crosby’s

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1979 book Quality is Free.

Harry formed a team to investigate the effectiveness of the six sigma

methodology because Motorola was experiencing serious quality issues.

Then, Harry and Richard Schroeder began applying this methodology within

the company and witnessed dramatic results. The results of the six sigma

projects included “a 58 percent reduction in the cost of quality, a 40 percent

reduction in errors, and a 60 percent reduction in the time it took to design a

new product.”

Implementing a six sigma program can dramatically reduce errors and poor

quality for an organization representing impressive savings. Yet, it is

believed that most organizations operate at three sigma, which translates to

66,000 errors per million ! General Electric openly embraced six sigma

with the backing of its former CEO Jack Welch and defines its six sigma

initiative as a “highly disciplined process that helps us focus on developing

and delivering near-perfect products and services .”

With Jack Welch singing the praises of the benefits of six sigma, the interest

was strong initially. After all the fanfare generated by media coverage in the

mid-1990s, interest has seemingly waned. Though the hype behind the six

sigma machine has subsided, many companies are still utilizing six sigma.

Trends in six sigma these days include:

-Organizations sharing their six sigma knowledge with suppliers

-Shift from discrete manufacturing to other businesses

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-New product development

-Knowledge Sharing with Suppliers

Some organizations have run the gamut with six sigma inside their

organization and are now looking outside the organization. Companies are

now teaching their suppliers about the benefits of six sigma. This represents

an untapped opportunity for both organizations to improve their performance

by reducing errors throughout the supply chain.

No organization better utilizes six sigma than General Electric. One of the

first to implement six sigma, General Electric claimed that its six sigma

initiative saved the organization $2 billion in 1999. Having identified the

lion’s share of savings within the organization, General Electric has moved

on to its suppliers to help them implement six sigma programs. In its effort

to reduce its supply base, General Electric favors companies that have

adopted six sigma programs. For example, faced with 30 printed circuit

board producers, GE Medical plans to reduce that number to three and will

favor organizations that have made a commitment to six sigma.

Discrete manufacturing to other businesses

Six sigma was initially seen as benefiting large manufacturing companies

because “factory processes tend to be both repetitive and easy to track as

goods move along the line.” Motorola, General Electric, and Allied

Signal (now Honeywell), all involved in manufacturing, were the first

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organizations to implement six sigma and realize significant savings.

However, the tide has turned and companies in other lines of business have

recognized that implementing six sigma can improve their businesses.

Industries that have recently implemented six sigma include chemical,

financial, healthcare, and retail.

Transaction-based services stand to benefit the most. To put the significance

of six sigma into perspective, the imperative of employing six sigma in

healthcare, financial institutions, and other areas can be illustrated by the

following quote from Thomas Pyzdek’s 1999 book, The Complete Guide to

Six Sigma:

"Virtually no modern computer would function. 10,800,000 healthcare

claims would be mishandled each year. 18,900 U.S. Savings Bonds would

be lost every month lost every month. 54,000 checks would be lost each

night by a single bank. 4,050 invoices would be sent out incorrectly each

month by a modest-sized telecommunications company. 540,000 erroneous

call details would be recorded each day from regional telecommunications

company. 270 million erroneous credit card transactions would be recorded

each year in the United States."

In the chemical industry, Dow Chemical Co. is an organization that has

recently adopted six sigma. Since implementing its six sigma program Dow

has identified major improvements. Dow claims that each six sigma project

has saved approximately $500,000 a year. For example, on one of its

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projects Dow discovered “that an additive was causing imperfections in

packaging materials enabled Dow to reduce defective items on that line by

70 percent.”

New Product Development

One of the latest developments with six sigma is its integration into new

product development. Employing six sigma during new product or service

design has the potential to save an organization a considerable amount of

money. For example, according to Lean Sigma Technologies, LLC, an

international consultancy, “70 to 80 percent of all quality problems are

design related and not manufacturing caused.” If these quality issues are

addressed during design, an organization can eliminate costly quality issues

once the product is released.

The term used when six sigma is utilized in new product development is

Design For Six Sigma. This methodology strives to design processes and

products from inception whereas six sigma tackles problems on existing

processes or products.

RECEPTION
Six Sigma has made a huge impact on industry and is widely employed as a

business strategy for achieving and sustaining operational and service

excellence. However, there have also been various criticisms of Six Sigma.

Lack of originality
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Noted quality expert, Joseph M. Juran, has described Six Sigma as "a basic

version of quality improvement," stating that "[t]here is nothing new there. It

includes what we used to call facilitators. They've adopted more flamboyant

terms, like belts with different colors. I think that concept has merit to set

apart, to create specialists who can be very helpful. Again, that's not a new

idea. The American Society for Quality long ago established certificates,

such as for reliability engineers."

Role of consultants
The use of "Black Belts" as itinerant change agents is controversial as it has

created a cottage industry of training and certification. Critics argue there is

overselling of Six Sigma by too great a number of consulting firms, many of

which claim expertise in Six Sigma when they only have a rudimentary

understanding of the tools and techniques involved.

The expansion of the various "Belts" to include "Green Belts," "Master

Black Belts" and "Gold Belts" is commonly seen as a parallel to the various

"belt factories" that exist in martial arts.

Potential negative effects

A Fortune article stated that "of 58 large companies that have announced Six

Sigma programs, 91 percent have trailed the S&P 500 since." The statement

is attributed to "an analysis by Charles Holland of consulting firm Qualpro

(which espouses a competing quality-improvement process)."The gist of the

article is that Six Sigma is effective at what it is intended to do, but that it is
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"narrowly designed to fix an existing process" and does not help in "coming

up with new products or disruptive technologies." Many of these claims

have been argued as being in error or ill-informed

A Business Week article says that James McNerney's introduction of Six

Sigma at 3M may have had the effect of stifling creativity. It cites two

Wharton School professors who say that Six Sigma leads to incremental

innovation at the expense of blue-sky work.

Based on arbitrary standards

While 3.4 defects per million opportunities might work well for certain

products/processes, it might not be ideal or cost-effective for others. A

pacemaker process might need higher standards, for example, whereas a

direct mail advertising campaign might need lower ones. The basis and

justification for choosing 6 as the number of standard deviations is not

clearly explained. In addition, the Six Sigma model assumes that the process

data always conform to the normal distribution. The calculation of defect

rates for situations where the normal distribution model does not apply is not

properly addressed in the current Six Sigma literature.

Criticism of the 1.5 sigma shift

Because of its arbitrary nature, the 1.5 sigma shift has been dismissed as

"goofy" by the statistician Donald J. Wheeler. Its universal applicability is

seen as doubtful.

The 1.5 sigma shift has also been contentious because it results in stated
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"sigma levels" that reflect short-term rather than long-term performance: a

process that has long-term defect levels corresponding to 4.5 sigma

performance is, by Six Sigma convention, described as a "6 sigma

process.The accepted Six Sigma scoring system thus cannot be equated to

actual normal distribution probabilities for the stated number of standard

deviations, and this has been a key bone of contention about how Six Sigma

measures are defined.The fact that it is rarely explained that a "6 sigma"

process will have long-term defect rates corresponding to 4.5 sigma

performance rather than actual 6 sigma performance has led several

commentators to express the opinion that Six Sigma is a confidence trick.

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Six Sigma has two key methods: DMAIC and DMADV, both inspired by

Deming's Plan-Do-Check-Act Cycle.DMAIC is used to improve an existing

business process; DMADV is used to create new product or process designs.

DMAIC
The basic method consists of the following five steps:

-Define high-level project goals and the current process.

-Measure key aspects of the current process and collect relevant data.

-Analyze the data to verify cause-and-effect relationships. Determine what

the relationships are, and attempt to ensure that all factors have been

considered.

-Improve or optimize the process based upon data analysis using techniques

like Design of experiments.

-Control to ensure that any deviations from target are corrected before they

result in defects. Set up pilot runs to establish process capability, move on to

production, set up control mechanisms and continuously monitor the

process.

DMADV
The basic method consists of the following five steps:

=Define design goals that are consistent with customer demands and the

enterprise strategy.

=Measure and identify CTQs (characteristics that are Critical To Quality),

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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".

Quality management tools and methodologies used in

Six Sigma
Six Sigma makes use of a great number of established quality management

methods that are also used outside of Six Sigma. The following table shows

an overview of the main methods used.

• 5 Whys • Failure mode and effects

• Analysis of variance analysis
• ANOVA Gauge R&R • General linear model
• Axiomatic design • Histograms
• Business Process Mapping • Homoscedasticity
• Catapult exercise on variability • Pareto chart
• Cause & effects diagram (also • Pick chart
known as fishbone or Ishikawa • Process capability
diagram) • Regression analysis
• Chi-square test of • Root cause analysis
independence and fits • Run charts
• Control chart • SIPOC analysis (Suppliers,
• Correlation Inputs, Process, Outputs,
• Cost-benefit analysis Customers)
• CTQ tree • Stratification
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 • Quantitative marketing research • Taguchi methods
through use of Enterprise • Thought process map
Feedback Management (EFM)
systems • TRIZ

• Design of experiments

List of Six Sigma software packages

There are generally two classes of software used to support Six Sigma:

• Analysis tools, which are used to perform statistical or process

analysis

• Program management tools, used to manage and track a corporation's

entire Six Sigma program

Analysis tools

-EngineRoom by MoreSteam

-IBM WebSphere Business Modeler

-iGrafx Process for Six Sigma

-JMP

-Microsoft Visio

-Minitab

-Quality Companion by Minitab

-SigmaXL

-Software AG webMethods BPM Suite

-Statgraphics

-STATISTICA

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-Telelogic System Architect

-Actuate

-The Unscrambler

-Select Architect Business Process Modeling

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SIX SIGMA TOOLBOX
In a capability study ,sigma refers to the number of standard deviation

between the process mean and the nearest specification limit, rather than the

standard deviation of the procee, which is also measured in “sigma”.

Fact Sheet
Six Sigma in a nutshell. This is a simple ,concise overview of Six Sigma.

Key phrases, concepts and basic activities are summarized.

Six Sigma Presentation

An introductory power point presentation on Six Sigma. Use this document

to generate discussions in your own organization or as part of an awareness

building campaign.

Overview document
This document can be used to start discussions about Six Sigma. It explains

key concepts and touches on training elements required. It is more in depth

than the fact sheets, but still easy and quick to take in.

Workshop Presentation
This presentation can be the basis for a half day long workshop with

colleagues involved in in discussing a Six Sigma project. It includes

speaker notes and exercises to help embed the concept of six sigma.

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Building a Six Sigma organization

A document that pulls no punches about the sorts of commitment and skills
needed to ensure a successful initiative.

Six Sigma calculator

This simple to use and basic calculator allows you to enter some values into

cells and see the equivalent Six Sigma results.

Six Sigma Starters Document

Extensive Explanation on Six Sigma, that can be taken as a work through

tutorial on Six Sigma. Covers the history of Six sigma, Six Sigma costs and

saving.

Defining requirements
One of the most important aspects in undertaking any major initiative is to

understand what the requirements for the initiative are.

Maturity Score
A short review of the scoring system used in the assessment.

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IMPLEMENTATION ROLES
One of the key innovations of Six Sigma is the professionalizing of quality

management functions. Prior to Six Sigma, quality management in practice

was largely relegated to the production floor and to statisticians in a separate

quality department. Six Sigma borrows martial arts ranking terminology to

define a hierarchy (and career path) that cuts across all business functions

and a promotion path straight into the executive suite.

Six Sigma identifies several key roles for its successful implementation.

• Executive Leadership includes the CEO and other members of top

management. 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.

• Champions are responsible for Six Sigma implementation across the

organization in an integrated manner. The Executive Leadership draws

them from upper management. Champions also act as mentors to Black

Belts.

• Master Black Belts, identified by champions, act as in-house coaches

on Six Sigma. They devote 100% of their time to Six Sigma. They assist

champions and guide Black Belts and Green Belts. Apart from statistical

tasks, their time is spent on ensuring consistent application of Six Sigma

across various functions and departments.

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 • 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.

THE 6 FUNDAMENTALS OF SIX SIGMA

TRAINING

The need for Six Sigma training has arisen following two reasons. One, the

demands of industry could not be met with the existing limited quality

assurance methods and two, the tremendous financial opportunities for

corporations that the 6 sigma methodology is creating of late. Many well-

known organizations have developed their own Six Sigma training institutes,

for in house training of their employees. Realizing the demand that could not

be met by companies by themselves, many training institutes and

universities have come forward and developed basic Six Sigma training

courses.

Differences In Six Sigma Training Basics

A quick look at the Six Sigma training course contents of various institutes

22
immediately shows that they vary widely in their central focus, while still

keeping the fundamentals of Six Sigma training content intact. However,

this is hardly surprising when one realizes that corporations devise courses

for training their own employees for more flexibility. However, the Six

Sigma training curricula prepared by independent training institutes and

universities closely resemble each other, brining credence and uniformity to

all Six Sigma training.

The Basics Of Six Sigma Training

Differences notwithstanding, the central theme of Six Sigma training

required for certification must remain same. These are the six core basic

elements of Six Sigma training:

1. A thorough and complete training on the DMAIC process and 6 sigma

methodology: This involves familiarizing trainees on statistics and its

applications, the five key elements of the DMAIC process, and the

implementation of this methodology.

2. The roles of each key person: Each person in the organization plays a

critical role in the implementation of 6 sigma. Thus, Six Sigma training

needs to focus on understanding the key elements of every person’s role and

the skill to communicate with key players across the organization.

3. Developing abilities to define and work on projects: In Six Sigma

training, the emphasis is placed on the streamlining of processes, focusing

on the core competencies of each of these. Six Sigma training also focuses

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on identifying and developing breakthrough processes, products and/or

services. As a result, root cause analysis and crisis management abilities

become the key to developing versatile management abilities.

4. Cross training necessity: The deployment of Six Sigma methodologies

puts the emphasis on a team-based approach. Naturally, qualities such as

interpersonal skills, ability to communicate effectively, and ability to

transfer knowledge and clarify issues are also important. Sharing of

knowledge across the organization is crucial for to the success of 6 sigma

implementation.

5. Problem Solving Tools: In Six Sigma methodologies, problem-solving

tools are statistical. Six Sigma training essentially teaches all those involved

in the implementation how to use statistical tools in order to analyze a

problem and solve it. Six Sigma training techniques assume that all

candidates do not necessarily have formal training in statistics.

6. Presentation and closing techniques: In Six Sigma training, everyone is

taught how to make presentations to management and other decision-

makers. Six Sigma training also focuses on how to make the transition to

closing projects after their conclusion or abandonment.

All Six Sigma training objectives are tied to a quality-first policy. In a

nutshell, Six Sigma training instructs students on how to dissect information,

analyze it, validate the results, and implement.

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TRAINING & CERTIFICATION
Six Sigma Champion training, Master Black Belt Certification, Black Belt

Certification and Green Belt Certification, are the four common levels using

which Six Sigma is learnt and deployed

SIX SIGMA GREEN BELT CERTIFICATION

Introduction

Six Sigma methodology has proved its worth for companies of all sizes,

complexities, sectors and categories. For any Organization that wants

Breakthrough Improvements and has the commitment, Six Sigma will

deliver, undoubtedly!
Objective

To provide hands-on practice on Six Sigma tools for implementers, so that

they can initiate and carry through Six Sigma Projects at their workplace.
Who should attend?

Management Professionals (Anyone responsible or keen to bring visible

breakthrough improvements in key processes).

Outline

The four-day Green Belt certification program provides an understanding of

each step in the Define, Measure, Analyze, Improve and Control (DMAIC)

methodology and many of the associated analysis tools. This program

combines lecture, class exercises, case studies, and team exercises.

25
Trainer Profile
1. Six Sigma Master Black Belt who has conducted scores of training

programs and trained more than a thousand professionals in Six Sigma. He

has multi-industry exposure (manufacturing and services sectors) and has

been into Business Improvement roles as a consultant, auditor and trainer.

OR

2. B.Tech, M.B.A, PMP, Six Sigma Master Black Belt, Six Sigma Black

Belt (GE Aircraft Engines). He has been into Business improvement roles as

a MBB, BB, Consultant and Trainer in IT & ITES industry for over 7 years.

He has trained more than 500 professionals on Six Sigma and mentored

more than 100 GB / BB projects.

Certification

All participants who complete the program successfully (clearing the test on

fourth day), shall be certified. An additional project completion certificate

can be achieved by candidates who complete a Green Belt project and

submit a project report

SIX SIGMA BLACK BELT CERTIFICATION

Introduction

Six-day Six Sigma Black Belt certification program to develop competence

on the high rigor tools and techniques of Six Sigma. This program is

exclusively for Six Sigma Green Belts to enable them learn Black Belt Tools
26
and application of Six Sigma Software (Minitab) with case studies and

simulations.
Objective

To provide knowledge and hands-on practice on Six Sigma Black Belt tools

and techniques and verify competence through certification process.

Who should attend?

Six Sigma Trained/ Certified Green Belts.

Course Outline

The program combines lecture, case studies, and team exercises. The

program starts with a pre-course test which serves as a refresher on Six

Sigma Green Belt learning. The Program runs with case studies being solved

using Minitab. Each candidate works on data and exercises on Minitab

during the sessions. By the end of the Six Sigma Black Belt program,

candidates shall have understood concepts and application of advanced Six

Sigma tools; shall have completed two practice projects and would be ready

to initiate Black Belt projects at work place.

Trainer Profile
1. Lean Six Sigma Master Black Belt who has conducted hundreds of

training programs and trained more than four thousand professionals in Six

Sigma. He has multi-industry exposure (manufacturing and services sectors)

and has been into Business Improvement roles as a consultant, auditor and

27
trainer. OR

2. B. Tech, MS Engg, Ph. D. Engg, MBA, PMP, has been into Six Sigma

roles as a Black Belt, Master Black Belt, Deployment Champion for 10

years in leading companies including Caterpillar and Philips Lighting. He

has proven expertise in doing hands-on functional projects in Accounting,

Design, Supply Chain, Manufacturing & IT, in training Belts, and in leading

a Sigma Program savings millions for a large organisation.

Certification

All participants who complete the program successfully (case study and test

on sixth day), shall be awarded a Six Sigma Black Belt Certificate. An

additional Project Completion Certificate can be achieved by candidates who

complete a Black Belt project and submit the project report. A practice

project with complete data and case history shall be provided to candidates.

SIX SIGMA DfSS BLACK BELT CERTIFICATION

Introduction

Five-day Six Sigma DfSS Black Belt certification program to develop

competence on building design competence with Six Sigma. This program is

exclusively for Six Sigma Green Belts and/or Black Belts to enable them

learn DfSS Black Belt Tools and application of Six Sigma Software

(Minitab) with case studies and simulations.

28
Objective

To provide knowledge and hands-on practice on Six Sigma Black Belt tools

and techniques and verify competence through certification process.

Who should attend?

Six Sigma Trained/ Certified Green Belts or Six Sigma Trained/ Certified

Black Belts

Course Outline

The program combines lecture, case studies, and team exercises. The

program starts with a pre-course quiz which serves as a refresher on Six

Sigma Green Belt learing. The Program runs with case studies being solved

using Minitab. Each candidate works on data and exercises on Minitab

during the sessions. By the end of the Six Sigma DfSS Black Belt program,

candidates shall have understood concepts and application of advanced Six

Sigma Design tools; shall have completed one practice project and would be

ready to initiate Black Belt projects at work place.

Trainer Profile

B. Tech, MS Engg, Ph. D. Engg, MBA, PMP, has been into Six Sigma roles

as a Black Belt, Master Black Belt, Deployment Champion for 10 years in

leading companies including Caterpillar and Philips Lighting. He has proven

expertise in doing hands-on functional projects in Accounting, Design,

Supply Chain, Manufacturing & IT, in training Belts, and in leading a Sigma
29
Program savings millions for a large organisation.

Certification

All participants who complete the program successfully (case study and test

on fifth day), shall be awarded a Six Sigma DfSS Black Belt Certificate. An

additional Project Completion Certificate can be achieved by candidates who

complete a DfSS Black Belt project and submit the project report. A practice

project with data and case history shall be provided to candidates.

SIX SIGMA MASTER BLACK BELT

CERTIFICATION

Introduction

The 8-day Six Sigma Master Black Belt program is designed to provide

advanced six sigma tools training & enhance six sigma leadership skills.

This program is exclusively for Six Sigma Black Belts to enable them lead

six sigma initiative and mentor & train six sigma GB's /BB's in their

organizations.

Objective

To provide in-depth understanding of Six Sigma tools & techniques and to

develop leadership skills to apply six sigma methodology in an organization.

The six sigma technical and leadership competencies will be verified

through certification process.

30
Who should attend?

Six Sigma Trained/ Certified Black Belts.

Course Outline

The program combines lecture, simulations, case studies, and team

exercises. By the end of the Six Sigma Black Belt program, candidates shall

have understood concepts and application of advanced Six Sigma tools and

leadership concepts; and would be ready to train/mentor Green Belts and

Black Belts at work place.

Faculty Profile
1. B. Tech, MBA, Lean Six Sigma Master Black Belt who has conducted

hundreds of training programs and trained more than four thousand

professionals on Six Sigma. He has multi industry exposure (manufacturing

& service sectors) and has been into business improvement roles as a

business leader, consultant, auditor and trainer. AND/OR

2. B. Tech, MS Engg, Ph. D. Engg, MBA, PMP, has been into Six Sigma

roles as a Black Belt, Master Black Belt, Deployment Champion for 10

years in leading companies including Caterpillar and Philips Lighting. He

has proven expertise in doing hands-on functional projects in Accounting,

Design, Supply Chain, Manufacturing & IT, in training Belts, and in leading

a Sigma Program savings millions for a large organisation.

Certification

31
All participants who complete the program successfully (achieve a 90% and

above grade in MBB test on last day of program), shall be awarded MBB

trained certificate. Candidates should complete following actions to get BSS

MBB certification.

1. Complete 2 Black Belt level six sigma projects (or) Mentor 5 Green Belt /

Black Belt level six sigma projects.

2. Co-teach for 2 to 4 hrs (based on experience) in any of BSS GB/BB

programs (or) provide evidence of 80 hrs of Six Sigma training.

LEAN MANAGEMENT CERTIFICATION

Introduction

Lean Management is a business system for organizing and managing

development, operations, suppliers, and customer relations. Business and

other organizations use lean principles, practices, and tools to create precise

customer value-goods and services with higher quality and fewer defects-

with less human effort, less space, less capital, and less time than the

traditional approaches.

One of the primary focuses of lean manufacturing is to eliminate waste; that

is, anything that does not add value to the final product gets eliminated. A

second major focus is to empower people at lowest level, and make

operational decisions at the lowest level possible.

Lean Management is about looking at the whole picture of all the processes
32
that are required to deliver a product or service. It is about evaluating each

step and ensuring that the step is Valuable, Capable, Available, Flexible and

Adequate.

Lean applies to non manufacturing settings just as strongly as it applies to

manufacturing. Many of the most exciting breakthroughs are taking place in

services as diverse as software development, banking, health, bpo and

government.

The two-day Lean Management Certification is for people who are hands on

practitioners in processes. Six Sigma Green Belt or Black Belt is not a pre-

requisite.

Objective

To provide knowledge and hands-on practice on basic Lean Management

concepts and tools.

Who should attend?

Anyone keen to bring/ support visible improvements in key processes.

Course Outline

The program combines lectures, class exercises, case studies, and team

exercises.

Faculty Profile

Lean Six Sigma Black Belt who has conducted scores of training programs

and trained large number of professionals in Lean Management. He has

33
multi-industry exposure (manufacturing and services sectors) and has been

into Business Improvement roles as an implementer, auditor and trainer.

Certification

All participants who complete the program successfully and clear the exam

shall get the Lean Management Certification.

SIX SIGMA CHAMPION TRAINING

Introduction

The two-day Champion training is for leaders who wish to identify, monitor

and support Six Sigma improvement projects.

Objective

To provide knowledge and exposure to hands-on practice on Six Sigma

Champion Role.

Who should attend?

Business leaders and decision makers.

Course Outline

The program combines lecture, class exercises, case studies, and team

exercises.

Faculty Profile

Six Sigma Master Black Belt who has conducted scores of training programs

and trained large number of professionals in Six Sigma. He has multi-

industry exposure (manufacturing and services) and has been into Business

34
Improvement roles as a deployment leader and trainer.

Certification

All participants who complete the program successfully shall be certified as

Six Sigma Champions.

MINITAB FOR GREEN BELTS

Introduction

The three day Minitab training is for Green Belts who wish to improve their

command on Six Sigma tools. Although Excel can cover most of the tools,

Minitab adds to the functionality many times over.

Objective

To provide knowledge and skills on Minitab usage for Six Sigma Green Belt

projects.

Who should attend?

Six Sigma Green Belts (Trained or Certified).

Course Outline

The program combines lecture, class exercises, case studies, and team

exercises.

Faculty Profile

B. Tech, MS Engg, Ph. D. Engg, MBA, PMP, has been into Six Sigma roles

as a Black Belt, Master Black Belt, Deployment Champion for 10 years in

leading companies including Caterpillar and Philips Lighting. He has proven

35
expertise in doing hands-on functional projects in Accounting, Design,

Supply Chain, Manufacturing & IT, in training Belts, and in leading a Sigma

Program savings millions for a large organisation.

Certification

All participants who complete the program successfully shall be issued a

certificate.

The following companies claim to have successfully implemented Six

Sigma

36
in some form or another:

The Performance Management Group LLC

3M Mando Corporation

Advanced Micro Devices McKesson Corporation

Agilent Technologies Merrill Lynch

Air Canada Methodia

Amazon.com Microflex Inc.

AXA Motorola

Bank of America Mumbai Dabbawala or NMTBSA

Bechtel Corporation National Australia Group Europe

Boeing Network Rail

CAE Aviation Training Nortel Networks

Canada Post Northrop Grumman

Caterpillar Inc. Organo Corporation

CIGNA Owens-Illinois

Cognizant Technology Solutions Patheon

Computer Sciences Corporation Precision Castparts Corp.

Cummins Inc. Quest Diagnostics, Inc

Deere & Company Raytheon

Dell Samsung Group

Denso SGL Group

DHL Shinhan Bank

37
Dominion Resources Shinhan Card

DSB Bank Siemens AG

DuPont SKF

Eastman Kodak Company Starwood Hotels & Resorts

Worldwide
EMC
Staples Inc.
Flextronics
Sterlite Optical Technologies
Ford Motor Company
Teradyne
General Electric
Trane
General Dynamics
Textron
Genpact
The McGraw-Hill Companies
GlaxoSmithKline
Toshiba Matsushita Display
Honeywell Technology

Hertel TRW

HSBC Group TSYS (Total System Services)

Idearc Media Ueki Corporation

Ingram Micro United States Air Force

Intrawest ULC United States Army

Inventec United States Marine Corps

JEA United States Navy

Korea Telecom UnitedHealth Group

Kraton Polymers Vodafone

38
KTF Volt Information Sciences

LG Group Whirlpool

Littlewoods Shop Direct Group Wipro

Lockheed Martin Xerox

39
SIX SIGMA IN MILITARY
Lean Six Sigma is part of a broader U.S. Marine Corps and Department of

Defense (DoD) continuous process improvement (CPI) effort aimed at

enhancing all aspects of support provided to Marine Corps operating forces

to maximize combat readiness and war fighting capability. The Marine

Corps has emphasized that the CPI program is entirely focused on enhancing

support to the war fighters, not cost reduction. Although many programs do

save money, the Marine Corps stated that while affordability is an issue it is

secondary to supporting the war fighters.

The Marine Corps uses several business processes as part of its CPI

program. These include:

1.Strategic planning

2.Activity-based cost management

3.Theory of constraints

4.Integrated performance management

5.Balanced resource management

6.Extended enterprise management

7.Balanced scorecard

8.Lean Six Sigma (LSS) war fighter

Lean came from Toyota's production system and focuses on increasing

process speed and efficiency by eliminating waste and non-value added

40
process steps – excessive inventory, waiting or transportation. According to

the Marine Corps faster processes cost less, so when process speed and

performance are improved there is an automatic cost benefit. Six Sigma

originated at Motorola in the late 1980s and focuses on improving quality

and effectiveness by limiting process defects, errors and rework, thus

increasing process reliability. Six Sigma defines defects as process outcomes

that fall outside of customer specifications and may be measured in time,

speed, weight, length or any other metric defined as critical. Together, Lean

and Six Sigma (or Lean Six Sigma) is a standardized, systematic approach to

process improvement.

LSS has improved processes and fattened bottom lines for several public and

private companies and it also can work in an organization whose main

mission is national defense.

Lean Six Sigma in the Marine Corps

The deputy secretary of defense memorandum, Establishment of DoD-wide

CPI Programs (May 11, 2006), and the DoD CPI Guidebook provide

guidance on implementing CPI. These documents stress that every

organization providing support to the war fighter has the responsibility to

continuously improve the quality of support. Leaders in all support and

operational forces should become familiar with the concepts, educate

subordinates about the benefits of LSS, and provide constructive feedback to

leaders so it can be improved and better-tailored to suit the Marine Corps.

41
This is critical to the effectiveness of any program in the Corps.

Applying a civilian assembly-line methodology to military operations is not

simple. Although LSS is not complex, the application requires dedicated

training and supervision. LSS implementation involves classroom curricula

that vary in length depending on the level of expertise and certification

required. LSS experts are divided into various categories – executive

Champions, Green Belts, Black Belts and Master Black Belts. All of the
LSS

application involves DMAIC. DMAIC is to CPI what Boyd's OODA-loop

(observe, orient, decide, act) is to aviation, and is the meat-and-bones of

LSS. Where Total Quality Management (TQM) failed a decade ago for lack

of continued higher-level endorsement or operational-level buy-in, and

because it provided in effect only DMA, the LSS improvement and control

aspects ensure that once a problem has been accurately defined, quantified

with measurement data and analyzed for root causes, improvements can be

implemented and sustained with a robust control strategy.

The goal of LSS is simply to encourage continuous process improvement by

using a standardized, documented, and repeatable problem solving

methodology. This common approach, language and structure can improve

the speed and facility with which sailors and marines can attack, and

hopefully solve their units’ challenges.

LSS and CPI Successes in DoD

42
Following are examples of LSS and CPI successes within DoD:

1.Engineers at Cherry Point Naval Aircraft Depot successfully used

technical Six Sigma to diagnose and fix F402 (AV-8B) engine vibration

problems.

2.The commander of the Red River Army Depot in Texas, Col. Douglas J.

Evans, reported to the Army News Service that his organization received

tremendous payback because of Lean Six Sigma, saving $30 million on their

HMMWV line. The benefit was not only in cost savings, but also in the

number of vehicles delivered to the soldiers who needed them.

3.The Corpus Christi Army Depot used LSS to decrease rework time for

the HH-60 Pavehawk helicopters from 240 days to an average of 114,

according to process optimization manager George E. Kunkle III.

4.The chief of staff for the 96th Regional Readiness Command in Utah, Col.

Lori M. Dupuis, used LSS to improve her unit's awards processing. By

reviewing the process and reducing the cycle time, the unit cut the awards

processing time from 90 days to 21 days.

5.The Naval Aviation Enterprise and its CPI tools – including LSS – have

been credited with saving $200 million in fiscal year (FY) 2005, and an

estimated $2.5 billion through FY2011. And, despite what Vice Admiral

Walter Massenburg, commander of Naval Air Systems Command at Naval

Air Station Patuxent River, Md., calls the "culture of consumption" –

pressure to spend any savings for fear of decreased future budget allotment –

43
Naval Aviation officials provided $50 million of its FY 2005 savings back to

the overall Navy's accounts for non-aviation-related costs This savings has

further enhanced LSS as a valid process-improvement tool.

Each of these improved a process resulting in value to war fighters, in terms

of time and materiel. The cost savings were only a collateral benefit of the

original project.

The Army has embraced LSS to facilitate the transformation of its business,

resourcing and acquisition processes. The Army believes this will promote

the long-term health of the organization and free human and financial

resources that can be better applied toward accomplishing war-fighting

requirements and accelerate other aspects of transformation.

Lean Six Sigma for Operating Forces

While it makes sense for installations, logistics and other supporting entities

to learn and implement LSS strategies, those in the operating forces should

also gain a better understanding of the process for several reasons:

1.If operators are unfamiliar with LSS and higher headquarters’ guidance

and tools for continuous improvement, they are more likely to accept

inadequate support efforts. Battalions training for war in Iraq are unlikely to

have the time, necessity or desire to train LSS Green Belts or implement

specific process improvement tools to specified challenges. If leaders

become more aware of LSS methodology, DMAIC, and realize the potential

of their supporting elements, however, tangible improvements for the war

44
fighter are more likely.

2.Certain Marine Aviation Logistics Squadrons have benefited from

voluntary LSS implementation. Also, the new “Naval Operations Concept”

signed in September 2006, which takes the Marine Corps strategy of

distributed operations and applies it to ships by splitting up a Marine

expeditionary unit into smaller entities, could symbolize the application of

LSS to Navy-Marine Corps expeditionary operations on multiple levels –

tactical to operational to strategic.

3.Recognize that LSS cannot fix everything, but it can provide a simple set

of tools and structure to help solve problems. If every challenge is forced

through a formal project review process, LSS will quickly become an

unnecessary layer of bureaucracy that shields a problem from its timely

solution.

4.Those deployed to the Iraqi theater know that certain mega-base operations

could benefit from LSS – reduce unnecessary fat from contractor and

support operations, streamline production and output, and improve the lives,

safety and effectiveness of warriors currently in the fight.

Air Force improving production with Smart Operations

21
The Air Force used the best parts of several civilian efficiency programs to

develop an Air Force-unique process-improvement program called "Smart

45
Operations 21," Secretary of the Air Force Michael W. Wynne said.

The program will take the Air Force forward in a journey of self-
improvement, the secretary said at a conference at Andrews Air Force Base,

Md. The process will help improve the Air Force’s product-development

process.

"The name came from a convocation of the senior operators in the field who

thought we could continue our journey into higher quality and better

performance by using a term that would relate to airfield operations,

intelligence, surveillance and reconnaissance operations, unmanned aerial

vehicle operations or cyberspace operations," he said.

"So Air Force Smart Operations 21 is the ideal project name for this journey

we are embarking on," he said.

The program is based on both Lean and Six Sigma business process

improvement tools. These tools were developed chiefly in the private sector

to focus on increasing value to customers, save time and money, reduce

waste and improve quality.

A process is made lean by re-engineering it to eliminate steps that add no

value to the end product or by combining process steps to save time. For

instance, moving tools and supplies closer to a work area to reduce the

number of footsteps workers must take to complete their jobs.

It is also about minimizing "batch and queue" processes. In manufacturing, a

46
raw material may need to pass through several workstations before it

becomes a final product. The initial workstation may drill a single hole or

make a single cut in a batch of several thousand pieces of raw material.

The semi-finished parts then go into a queue, waiting for the next step in the

process. Once the part is cut or drilled, it loses its value as raw material, but

has gained no value as a final product. So, it becomes a financial liability. A

leaner process would attempt to move each part through the system in one

pass, if possible, to eliminate warehousing of unfinished parts.

Six Sigma deals primarily with quality control and tolerances. If one step in

a manufacturing process requires a board be "cut to eight feet," an employee

might spend too much time lining up raw material at a cutting station to

ensure the goal is met. Six Sigma has manufacturer ask customers to be

clearer about what is truly needed. If a deviation of a half-inch is acceptable

to the customer, then the worker will be able to cut more boards in less time.

That produces less reject boards that end up in a scrap bin. The process saves

money for both the manufacturer and the customer.

Six Sigma has users look at many areas of a process to determine what a

customer truly needs, and to then make determinations about when and

where it is appropriate to spend more money to achieve higher levels of

perfection.

Secretary Wynne said the Air Force will use Smart Operations 21 to increase
47
the efficiency of the processes it uses to develop its own products.

In some places, Air Force people already have that mindset, he said. For

years, air logistics centers have improved their workflow by employing

some of the tools that make up Smart Operations 21, said Maj. Gen. Kevin J.

Sullivan. He is the commander of the Ogden Air Logistics Center at Hill Air

Force Base, Utah.

At the conference, General Sullivan said the Ogden center has processes in

place to save time and money, and to give customers what they really want –

- faster turnaround on their aircraft.

The general said things are moving away from a traditional batch and queue

process for aircraft repair. Optimizing workflow has helped the center

decrease the time it takes to get an airplane back in the air.

By creating work cells -- where aircraft move through at a pace of one every

two days -- the center eliminated having large numbers of aircraft lined up

waiting for somebody to get to them to apply the next step in the process.

"What we really had going on was historic batch processing for these

airplanes," General Sullivan said.

Now aircraft move quickly from cell to cell. Paying attention to individual

processes optimized work within a cell. Tools and parts are made available

48
to workers locally, so they don't have to travel to get them, he said.

"Think of your technician as a surgeon," General Sullivan said. "Give him

all the tools and supplies he needs to work on the airplane so he doesn’t have

to leave the airplane."

One thing the general implemented was rolling supply bins. A later

improvement was the introduction of parts vending machines. They allow

parts to be sold on an as-needed basis. That way, the center does not have to

warehouse parts.

"We don’t pay for those parts until the worker puts in their number to get the

part," he said. "Not only are we getting consumables out to the work site, but

we don’t pay for that inventory."

Col. Samuel Cox, who commands the 436th Airlift Wing at Dover AFB,

Del., applied similar thinking to isochronal inspections for the base’s fleet of

C-5 Galaxy aircraft.

The inspection process had never really been engineered, the colonel said.

Over the years, new requirements were simply tacked on to the end of the

process without regard to the time needed to meet the new requirement.

If repairing one C-5 part takes 10 days, and the repair doesn't begin until the

10th day of the inspection, then the aircraft can't be back on the flightline

until the 20th day, the colonel said. The isochronal inspection process was

49
re-engineered.

"In the end we completely re-flowed the process, with the long lead items at

the front end," Colonel Cox said. "The first thing that happens now is

everybody in the ISO dock tears into the panels -- it’s a collective effort –

and they can identify the long lead time items."

Reducing the time it takes to fix a C-5 means it spends more time doing its

job.

"We need to have those airplanes out there flying missions, not in the ISO

dock," he said.

While developed mostly in the private sector, the two business process

improvement tools serve as the foundation for Smart Operations 21.

Secretary Wynne said the Air Force needs a strategy to understand and

optimize the basic processes around which it organizes. Smart Operations 21

will be the centerpiece of the strategy, he said.

SIX SIGMA IN CONSTRUCTION

Bechtel was the first major engineering and construction company to adopt

Six Sigma, a data-driven approach to improving efficiency and quality.

Although it was originally developed for manufacturing companies, we were

confident Six Sigma would work in professional services organizations such

as ours. Our bet paid off. Six Sigma has improved every aspect of our
50
business, from construction projects to regional offices, saving time and

money for our customers and us.

Six Sigma uses a rigorous set of statistical and analytic tools to produce

dramatic improvements in our work processes. Bechtel launched Six Sigma

in 2000, when the company was experiencing unprecedented growth—and

facing corresponding process challenges. We have now implemented Six

Sigma in our key offices and business units around the world. About half of

our employees have had Six Sigma training, and most of our major projects

employ its methods from start to finish.

Our investment in Six Sigma reached the break-even point in less than three

years, and our overall savings have added substantially to our bottom line,

while also benefiting customers. Some examples:

1.On a big rail modernization project in the UK, a Bechtel team

used Six Sigma to minimize costly train delays caused by project work and

reduced the "break in” period for renovated high-speed tracks.

2.At a U.S. Department of Defense site in Maryland, Six Sigma helped

achieve significant cost savings by streamlining the analysis of neutralized

mustard gas at a project to eliminate chemical weapons.

3.To speed up the location of new cellular sites in big cities, Bechtel

developed a way to let planners use computers to view video surveys of

streets and buildings, making it easier to pick the best spots.

51
4.In a mountainous region of Chile, Six Sigma led to more efficient use of

equipment in a massive mine expansion, with significant cost savings.

Six Sigma is the most important initiative for change we have ever

undertaken. We’re happy to report that it’s becoming “the way we work.”

SIX SIGMA IN CITIBANK

Citibank, a Citigroup company, has set a goal to be the premier international

financial company in the next millennium. To achieve this clearly ambitious

goal, the global giant had to implement quality initiatives that satisfied

customers quickly and flawlessly at every interaction anywhere in the world.

Six Sigma quality was always in the domain of the manufacturing arena—

could it work in the service industry? Could it work worldwide for a

financial organization?

Citibank undertook this challenge to improve total customer satisfaction by

investigating well-known manufacturing management theories and

attempted to apply them to their own nonmanufacturing environment.

Methodologies like cycle time reduction (CTR), coupled with the detection

of defects using Six Sigma methods and implemented globally by using

empowered teams, have resulted in significant improvements in process

timelines, cash management and customer loyalty and satisfaction.

52
Cycle time reduction

In 1997, Citibank hired Motorola University Consulting and Training

Services to teach Six Sigma defect reduction and CTR to its employees.

Most people think reducing cycle time applies only in the manufacturing

sector, but Citibank found CTR to be extremely useful in financial areas,

such as consumer banking and emerging markets.

To achieve CTR, Motorola University (MU) developed the cross-functional

process mapping (CFPM) methodology. CFPM involves developing "maps"

of process flows by describing the functions involved in each step of a

particular process. Maps are developed for both the way things are being

done (called the "as is" map) and the ways things should be handled (the

"should be" map).

In the beginning, Citibank established the Citibank Cross-Functional

Performance Challenge within its banking divisions by using the Six Sigma

methodology to identify defects, CFPM to map the steps for improvement

and empowered teams to correct the defects.

At its core, CFPM involves eliminating wasteful steps, which are defined as

any activities that don't contribute to the goal of meeting customers' needs.

Relocating, retraining and regaining

53
A few years ago, John Podkowsky, managing director and business head for

Citibank's Asset-Based Finance division, faced a serious problem when his

back- office operation relocated from New York to Delaware. "The

department went through a transition period, and when that period was

completed, there were some people who chose not to relocate," he says. "So

it was left in the hands of the new people who were basically inexperienced

in the job they were handling. When problems came up, neither they nor

their supervisors knew how to fix them."

To address the problem, Podkowsky's department implemented the Asset-

Based Finance Cross-Functional Performance Challenge. A crucial part of

the Asset-Based Finance team's progress was vesting the authority to "sign

off" on loan availment to his team. By reducing the number of "hand-offs"

necessary to make funds available, the cycle time for this segment of the

availment process was reduced by an average of 75 percent, from two hours

to 30 minutes.

"We've completed that project, and it's been very successful with reduced

cycle time," notes Podkowsky. "Instead of getting complaints from

customers, we're now getting compliments."

Identifying defects using Six Sigma

54
Customers who do business with Citibank's Private Bank sometimes initiate

manual funds transfers. When they want to send money from their accounts,

they call their banker and then fax, phone or mail in requests to have the

transaction processed. Because the process was so complicated, customers

complained. Most of the complaints lodged with the department dealt with

the time it took to complete the process, from "I can't understand why you

don't have my request," to "When will my transaction be confirmed?"

"If the request wasn't the banker's top priority for the day, it would sit there

for two or three hours before it even went to the back office," explains

Cherylann Munoz, compliance director for Citibank's Private Bank in the

United States and the Western Hemisphere.

Once Citibank employees had identified the primary obstacles preventing

them from achieving total customer satisfaction at Private Bank, they were

able to correct the problems with the Six Sigma program.

A sigma is a statistical term that measures to what extent a process deviates

from perfection. Three sigma equals 66,807 defects per million

opportunities; six sigma equals 3.4 defects per million opportunities--virtual

perfection. Citibank's goal is to reduce in defects and cycle time by 10 times

by December 2000 and reduce defects and cycle time by 10 times every two

years thereafter.

Six Sigma is achieved using simple tools such as the Pareto chart. The data
55
on the chart identifies which problems occur most often or incur the highest

cost. It provides direct evidence of what should be corrected first. Vilfredo

Pareto, the Italian economist for whom the chart is named, theorized that 20

percent of possible causes are responsible for 80 percent of any problem.

A team composed of bankers and operations people identified the entire

funds transfer process, tabulating defects and analyzing them using a Pareto

chart. High on the chart of defects was the internal call-back procedure,

which required staff to call the person requesting the funds transfer to make

sure that the instructions were correct and hadn't been altered.

"We cut monthly call backs from 8,000 to 1,000, and we eliminated call

backs for 73 percent of the transactions coming in," Munoz says.

In another example, Citibank's Global Cash and Trade Organization used

Six Sigma methodology to help track defects and document the results by

teaching team members to identify appropriate metrics, determine a baseline,

establish appropriate standards and monitor execution. These solutions

required employees to form teams to solve the issues discovered.

To reduce the time for opening an account, Citibank formed a cross-

functional global team of 80 people. The team first identified sponsors and

formed a steering committee to champion the effort. Employees were invited

to participate based on their subject matter expertise and ability to assist with

56
the solution. The largest obstacle was enabling them to find time to

participate while juggling daily job responsibilities. MU consultants helped

to define the management system around which the team was organized.

Sue Andros, a global process owner in the Global Cash and Trade

Organization who is responsible for the end-to-end customer experience,

says CFPM "lets people get to know one another."

"Team members worked well together, because achieving the objectives

would make their professional responsibilities easier and would benefit their

customers--a win-win situation for everyone," says Andros.

"The focus on cycle time and defects has made an impact on how we serve

customers," she continues. "It's not just a matter of doing things faster; it's

doing things better. This means no redundancy, minimal hand-offs and

metrics that reflect performance in the eyes of the customer."

Those sentiments are echoed by Dipak Rastogi, executive vice president for

Citibank's Eastern European/Central Asia and Africa region (whose

headquarters are in London).

"Introducing quality as a core strategy was viewed as a unique opportunity

and differentiating feature not only vis-୶is our customers, but also our

staff," com- ments Rastogi. "When implemented correctly, quality increases

customer satisfaction and leads to shorter reaction time and faster

introduction of new products--providing a sustainable com petitive

57
advantage."

Working together
The first step in process mapping is establishing a team, typically of 30 to

50 people, drawn from every unit that contributes to the process. Cross-

functional teams, made up of representatives from each functional

department, develop maps. They include employees deep within the

company--the "doers" of the current process. Because of their close vantage

point, these employees can offer valuable insight into daily business

operations. Management empowers the team to implement any changes they

develop that will reduce the cycle time and improve customer satisfaction.

Citibank's CFPM has five phases. First there's planning, when the critical

business processes to be mapped are identified and a team is selected. Next,

the team meets for four to five days to map all current steps and identify

what is not working now--the "as is" process.

The team then takes the map back to colleagues throughout the organization

to verify its accuracy and to see if there are any more problems or issues

they want to add; this helps secure buy-in for sim- plifying the process.

Ronnie Wackstein, a vice president in the Private Bank observes: "The 'as is'

mapping session is a very critical step in the process. Until you map those

processes out, you don't know where the problems are. This step enables you

58
to design a streamlined 'should be' process map."

After completing the "as is" map, the team meets again to map out the

desired, streamlined process, the "should be," which has removed nonvalue-

added steps. The last phase, which is probably the most difficult and can

take several months, is the implementation of the action items to achieve the

"should be" process. Even after the process has been improved, CFPM

doesn't end.

People helping people

For CFPM to work, there must be a commitment at all levels, with everyone

taking leadership roles. In fact, key team members spend one-fourth of their

time on the project. Team leaders spend at least three-fourths of their time

for up to a year. When these teams are challenged to reduce cycle times

within their departments, they become empowered to make improvements,

which improves the corporate culture.

Citibank's Worldwide Securities Services (WWSS) is primarily in the

business of clearing and settling cross-border securities for major broker

dealers, custodian banks and institutional investors. When the WWSS team

was challenged to reduce the securities fail rate by 60 percent for eight large

customers in six emerging markets, the team not only attained the goal, but

three team members have also gone on to initiate other programs to improve

other processes in their area.

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"These staff members know what is wrong with their piece of the process,"

says Sandy Jaffee, division executive for WWSS. "By bringing them

together, we're able to understand what's wrong with the process end-to-end,

design an improved process and give them time to implement it. The tools

help the team stay focused and understand the root cause of the problem."

The results are amazing

Using process mapping, Motorola has driven down manufacturing time for

pagers from 40 days to less than one hour. This kind of improvement is an

indication of why Citibank chose Motorola's mapping process, and what a

quality culture can accomplish--how cycle times can radically be reduced by

a factor of 10 every two years.

"Motorola has done a particularly good job of assessing its competitive

position, and has become pretty well-known in the industry for reducing

cycle time," asserts Ed Montero, who heads Citibank's Private Bank in the

company's Western Hemisphere region.

CTR has met the challenges of many Citibank groups, including the

following:
Private Bank--Western Hemisphere, which serves wealthy individuals.

This group reduced internal call backs by 80 percent, external call backs by

85 percent and the credit process time by 50 percent.

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 Global Equipment Finance, which provides global financing and leasing

services to Citibank customers. This group improved all steps' cycle times

from when a customer places an order to product delivery. The group also

reduced the credit decision cycle by 67 percent, from three days to one day.

Copeland Companies, subsidiaries of Travelers Life & Annuity, which

are distributors and record keepers of financial service products, primarily

through defined contributions such as 401(k) plans. This division used

CFPM methods to improve the accuracy and timeliness of statements. The

group achieved 100-percent accuracy within a four-month period. It also

reduced the cycle time of processing statements from 28 days to 15 days.

Commitment is needed from the top

Teams involved in the Citibank Quality Challenge needed to have full

autonomy to make decisions about changes to the process. To champion the

work, senior managers sponsored the quality initiatives or served on steering

committees and kept an "open door" policy so that teams could gain access

to them as needed. According to Peter Klimes, quality director for Citibank

in the Czech Republic, the involvement of senior sponsors is a continuous

process all the way from setting critical business issues and objectives to

making the final presentation.

"We have had a well-balanced split between projects initiated by senior

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management and those initiated by staff," Klimes says. "Our senior country

operations officer and our corporate bank head were our most active

supporters of our CFPM projects. Their commitment helps balance back-

and front-office aspects of the projects."

The big picture

Citibank began its quality training initiative in 1997. From May 1997 to

October 1997, more than 650 senior managers were trained. Between

November 1997 and the end of 1998, another 7,500 employees attended

sessions as part of senior-manager-led teams. By early 1999, 92,000

employees worldwide had been trained.

Citibank's goal of becoming the premier international financial company in

the next millennium will require a devotion to excellence on the part of

every em- ployee. The goal is ambitious, but Citibank has implemented

quality initiatives to make certain that it satisfies customers flawlessly and

quickly at the point of every interaction anywhere around the world. By

making innovative use of information technology and operations

management through Six Sigma and CFPM, employees are working faster

and creating high levels of customer satisfaction.

SIX SIGMA WITH DABBAWALAS

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A dabbawala (literally, box person, see Etymology), also spelled as

dabbawalla or dabbawallah is a person in the Indian city of Mumbai who is

employed in a unique service industry whose primary business is collecting

the freshly cooked food in lunch boxes from the residences and returning

back the empty boxes by using various modes of transport. "Tiffin" is an

old-fashioned English word for a light lunch, and sometimes for the box it is

carried in. For this reason, the dabbawalas are sometimes called Tiffin

Wallahs.

Etymology and historical roots

The word "Dabbawala" in Marathi when literally translated, means "one

who carries a box". "Dabba" means a box (usually a cylindrical tin or

aluminium container), while "wala" is a suffix, denoting a doer of the

preceding word. The closest meaning of the Dabbawala in English would be

the "lunch box delivery man". Though this profession seems to be simple, it

is actually a highly specialized service in Mumbai which is over a century

old and has become integral to the cultural life of this city.

The concept of the dabbawala originated when India was under British rule.

Many British people who came to the colony did not like the local food, so a

service was set up to bring lunch to these people in their workplace straight

from their home. Nowadays, although Indian business men are the main

customers for the dabbawalas, increasingly affluent families employ them

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instead for lunch delivery to their school-aged children. Even though the

services provided might include cooking, it primarily consists of only

delivery either home-made or in that latter case, food ordered from a

restaurant.

Background and the delivery chain

At 19,373 persons per km², Mumbai is India's most densely populated city

with a huge flow of traffic. Because of this, lengthy commutes to workplaces

are common, with many workers traveling by train.

Instead of going home for lunch or paying for a meal in a café, many office

workers have a cooked meal sent either from their home, or sometimes from

a caterer who delivers it to them as well, essentially cooking and delivering

the meal in lunch boxes and then having the lunch boxes collected and re-

sent the next day. This is usually done for a monthly fee. The meal is cooked

in the morning and sent in lunch boxes carried by dabbawalas, who have a

complex association and hierarchy across the city.

A collecting dabbawala, usually on bicycle, collects dabbas from homes or

from the dabba makers. The dabbas have some sort of distinguishing mark

on them, such as a color or symbol. The dabbawala then takes them to a

designated sorting place, where he and other collecting dabbawalas sort (and

sometimes bundle) the lunch boxes into groups. The grouped boxes are put

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in the coaches of trains, with markings to identify the destination of the box

(usually there is a designated car for the boxes). The markings include the

rail station to unload the boxes and the building address where the box has to

be delivered.

At each station, boxes are handed over to a local dabbawala, who delivers

them. The empty boxes, after lunch, are again collected and sent back to the

respective houses.

The Nutan Mumbai Tiffin Box Suppliers Trust

This service was originated in 1880. Later, Mahadeo Havaji Bachche, started

a lunch delivery service with about 100 men. In 1930, he informally

attempted to unionize the dabbawallas. Later a charitable trust was registered

in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers Trust. The

commercial arm of this trust was registered in 1968 as Mumbai Tiffin Box

Carriers Association. The present President of the association is Raghunath

Medge. Nowadays, the service often includes cooking of foods in addition to

the delivery.

Economic analysis
It is estimated that the dabbawala industry grows by 5-10% each year.

Each dabbawala, regardless of role, gets paid about two to four thousand

rupees per month (around 25–50 British pounds or 40–80 US dollars).

More than 175,000 or 200,000 lunch boxes get moved every day by an

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estimated 4,500 to 5,000 dabbawalas, all with an extremely small nominal

fee and with utmost punctuality. According to a recent survey, there is only

one mistake in every 6,000,000 deliveries, statistically equivalent to a

(99.9999) rating

The BBC has produced a documentary on dabbawalas, and Prince Charles,

during his visit to India, visited them (he had to fit in with their schedule,

since their timing was too precise to permit any flexibility). Owing to the

tremendous publicity, some of the dabbawalas were invited to give guest

lectures in top business schools of India, which is very unusual. Most

remarkably in the eyes of many Westerners, the success of the dabbawala

trade has involved no advanced technology.

The New York Times reported in 2007 that the 125-year-old dabbawala

industry continues to grow at a rate of 5–10% per year.

Low-tech and lean

Although the service remains essentially low-tech, with the barefoot delivery

men as the prime movers, the dabbawalas have started to embrace modern

information technology, and now allow booking for delivery through SMS.

A web site, mydabbawala.com, has also been added to allow for on-line

booking, in order to keep up with the times. An on-line poll on the web

site ensures that customer feedback is given pride of place. The success of

the system depends on teamwork and time management that would be the

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envy of a modern manager. Such is the dedication and commitment of the

barely literate and barefoot delivery men (there are only a few delivery

women) who form links in the extensive delivery chain, that there is no

system of documentation at all. A simple colour coding system doubles as

an

ID system for the destination and recipient. There are no multiple elaborate

layers of management either — just three layers. Each dabbawala is also

required to contribute a minimum capital in kind, in the form of two

bicycles, a wooden crate for the tiffins, white cotton kurta-pyjamas, and the

white trademark Gandhi topi (cap). The return on capital is ensured by

monthly division of the earnings of each unit.

Uninterrupted services
The service is uninterrupted even on the days of severe weather such as

Mumbai's characteristic monsoons. The local dabbawalas at the receiving

and the sending ends are known to the customers personally, so that there is

no question of lack of trust. Also, they are well accustomed to the local areas

they cater to, which allows them to access any destination with ease.

Occasionally, people communicate between home and work by putting

messages inside the boxes. However, this was more common before the

accessibility of instant telecommunications

There are 1,75,000+ lunch boxes served everyday by approximately 5,000

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dabbawalas within 3 hours using a 25 KM public transportation system

of Mumbai. These lunch boxes are picked up from home and then delivered

to office workers by lunch time. Dabbawalas carry these lunch boxes for

delivery using local trains, buses etc.. and deliver the lunch boxes on time.

This service has been in existence for over 115 years and has been given

award by Forbes magazine. There is no six sigma training conducted for

them to deliver these lunch boxes without errors and yet they manage to

keep their defects at just 1 defect every 6,000,000 deliveries. That’s one

defect per 6 million opportunities! Can you believe that?

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