PROJECT

ON

SIX SIGMA (What, Where, Why, How & Who)

Page | 1
 PREFACE

We are required to make a project report on SIX SIGMA (What, Where, Why, How &
Who). The basic objective behind doing this project report is to get knowledge tools of
minimizing variability in manufacturing & business processes.

In this project report we have included various concepts, effects & implication regarding Six
Sigma projects.

Doing this project report helped us to enhance our knowledge the work of Six Sigma project
carried out within the organization. Through this report we come to know about importance
of team work & role of devotion towards the work.

Page | 2
CONTENTS:
Introduction: 4-7
What is Six Sigma? 4,5
Features of Six sigma . 6
Key Concepts of Six sigma 6
Benefits of Six Sigma . 7
Myths of Six Sigma 7

Need & Importance of Six Sigma 9

Objectives .. 9

Methodology of the study: . 10-17

Data Collection Plan & Data Collection 10
Source Analysis .. 10-11
Six Sigma Process .. 11-14
Six Sigma Tools .. 15-16
Data Analysis .. 17
Other Statistical Tools Used .. 17

Where : . 18-19
Evolution of Six Sigma . 18
Historical Overview .. 18-19
Six Sigma at Motorola .. 19
Who are implementing Six Sigma ... 19

Why Six Sigma . 20

How Six Sigma is Used: 21-24

Six Sigma Start-Up 21
The cost of Six Sigma Implementation . 21-22
Project selection for Six Sigma .. 22
Methodology of Six Sigma: 22-24
(A) DMAIC
(B) DMADV
Who should use Six sigma?: . 25-26
Key elements .. 25
Implementation Roles 25-26

Analysis & Interpretation .. 27-28

Findings & Conclusion .. 29

Bibliography 30

Page | 3
INTRODUCTION

Six Sigma is usually related to the magic number of 3.4 defects per million opportunities.
People often view Six Sigma as yet another rigorous statistical quality control mechanism.

Pioneered at Motorola in the mid-1980s, Six Sigma was initially targeted to quantify the
defects occurred during manufacturing processes, and to reduce those defects to a very small
level. Motorola claimed to have saved several million dollars. Another very popular success
was at GE. Six Sigma contributed over US $ 300 million to GE's 1997 operating income.

Today Six Sigma is delivering business excellence, higher customer satisfaction, and superior
profits by dramatically improving every process in an enterprise, whether financial,
operational or production. Six Sigma has become a darling of a wide spectrum of industries,
from health care to insurance to telecommunications to software.

WHAT IS SIX SIGMA?

The term Six Sigma originated from terminology associated with manufacturing, especially
terms associated with statistical modelling of manufacturing processes. The maturity of a
manufacturing process can be defined by a sigma rating indicating its yield, or the percentage
of defect-free products it creates. A six sigma process is one in which 99.99966% of the
product manufactured are statistically expected to be free from defect (3.4 defects per
million). Motorola set the goal of six sigma for all of its manufacturing operations & this
goal become a byword for the management & the engineering practices used to achieve it.

It is important to recall that every customer always values consistent and predicable services
and/or products with near zero defects. Therefore they experience the variation and not the
mean. Mean is their expectation, and our target.

If we can measure process variations that cause defects i.e. unacceptable deviation from the
mean or target, we can work towards systematically managing the variation to eliminate
defects.

Six Sigma is a methodology focused on creating breakthrough improvements by managing

variation and reducing defects in processes across the enterprise.

Sigma is a Greek symbol represented by "".

Page | 4
The Six Sigma Equation

Y=f(x)

The simple looking equation mentioned above can be described as the crux of the Six sigma
philosophy. The component parts of the equation are as follows:

Y = Outputs also known as Dependant Variables

X = Inputs also known as independent Variables

F = Function of

What the equation is actually saying is that the outputs we receive are the function of the
inputs that we give to our process. Hence if we were able to control the inputs with precision,
the outputs would also be controlled in a precise manner.

So, why Six Sigma is called Six Sigma, and not four or five Sigma or Eight Alpha
(another Greek symbol)?

The complex products for which this method originated had enough characteristics rolled

together and enough long-term degradation that only six would do. Four or five sigma just

didnt provide enough relief from these two constraints.

The systems and environments of transactional and service companies now adopting Six

Sigma are often less complex; they dont have as many critical characteristics coming

together, so they dont necessarily need to have each critical characteristic operating at Six

Sigma. In these cases, four or five may actually do.

But the magnitude of the earlier success of Six Sigma has made the name stick. And almost

all companies, regardless of their size or complexity, recognize the benefits of aiming for a

Six Sigma goal. Even if the milestone of Six Sigma is never reached, the act of working

toward that goal drives breakthrough changes.

In some instances, great companies are able to produce Six Sigma quality in their final

products, services, and transactions especially when safety or human life is involved.

Page | 5
Features of Six Sigma:

Six Sigma's aim is to eliminate waste and inefficiency, thereby increasing customer
satisfaction by delivering what the customer is expecting.

Six Sigma follows a structured methodology, and has defined roles for the
participants.

Six Sigma is a data driven methodology, and requires accurate data collection for the
processes being analyzed.

Six Sigma is about putting results on Financial Statements.

Six Sigma is a business-driven, multi-dimensional structured approach for:

o Improving Processes

o Lowering Defects

o Reducing process variability

o Reducing costs

o Increasing customer satisfaction

o Increased profits

Key Concepts of Six Sigma:

At its core, Six Sigma revolves around a few key concepts.

Critical to Quality: Attributes most important to the customer.

Defect: Failing to deliver what the customer wants.

Process Capability: What your process can deliver.

Variation: What the customer sees and feels.

Page | 6
 Stable Operations: Ensuring consistent, predictable processes to improve what the
customer sees and feels.

Design for Six Sigma: Designing to meet customer needs and process capability.

Benefits of Six Sigma:

Six Sigma offers six major benefits that attract companies:

Generates sustained success

Sets a performance goal for everyone

Enhances value to customers

Accelerates the rate of improvement

Promotes learning and cross-pollination

Executes strategic change

Myths about Six Sigma:

There are several myths and misunderstandings surrounding Six Sigma. Some of them few
are given below:

Six Sigma is only concerned with reducing defects.

Six Sigma is a process for production or engineering.

Six Sigma cannot be applied to engineering activities.

Six Sigma uses difficult-to-understand statistics.

Six Sigma is just training.

Page | 7
 NEED & IMPORTANCE OF SIX SIGMA

Six Sigma aims to identify and correct errors in design and reduce the amount of
variability in business processes. Six Sigma projects follow a predetermined series of
steps that have a measurable financial goal, such as an increase in revenue or decrease in
costs. Six Sigma quality standards and scenarios can help a small business correct and
anticipate quality issues in its processes and products/services.

1. Definition of Quality:
The central concept of Six Sigma is to measure the number of defects in a process or product
and determine how to eliminate nearly all of them. It strives to create a business environment
with nearly zero defects. The methodology relies heavily on data and statistics to evaluate
how a process is performing. By Six Sigma standards, a process must not produce more than
3.4 defects per million opportunities. One of the key concepts in the Six Sigma methodology
is its requirement that a business focus on critical-to-quality attributes -- which consist of the
most important customer specifications -- and how the process delivers them.

2. Quality Implementation:
One of the defining elements of Six Sigma is the support it receives from top management.
The methodology is put into practice through a specially trained team of experts who provide
training and locate and make process improvements. These experts are given specific titles,
such as Champions, Black Belts and Green Belts. Decisions made by experts are guided by
verifiable data that specifically identify where improvements are needed. By utilizing a team
approach to implement Six Sigma standards, your business can ensure that the project
progresses toward a desired state of business processes that meet customer expectations.

3. Continuous Improvement:

Page | 8
One of the main benefits your business derives from a Six Sigma implementation is the
creation of a Six Sigma culture. In this new culture, business process knowledge and process
improvements are commonplace throughout the company. The methodology creates
dashboards of valuations that measure processes from day-to-day, determine which ones need
improvement and a reduction in variation. Business leaders well versed in Six Sigma are also
able to apply the concepts to the companys strategic goals. The new culture created by Six
Sigmas focus on process performance instils in the business the importance of quality and
continuous process improvement.

4. Purpose of Scenarios:
Scenarios in Six Sigma implementation are important because they serve as a useful planning
tool and help businesses visualize what quality and process events will occur given various
situations. By using scenarios, Six Sigma experts maintain a long-term focus. Scenarios are
critical during design stages and help to identify what the customers needs and wants are.
They help in determining if the process can achieve predictable and consistent outcomes, or if
it needs to be changed to meet customer expectations.

OBJECTIVES OF SIX SIGMA:

1. Overall Business Improvement- Six Sigma methodology focuses on business

improvement. Beyond reducing the number of defects present in any given number of
products.

2. Remedy Defect/Variability- Any business seeking improved numbers must reduce

the number of defective products or services it produces. Defective products can harm
customer satisfaction levels.

3. Reduce Costs- Reduced cost equal increased profits. A company implementing Six
Sigma principles has to look to reduce costs wherever it possibly can- without
reducing quality.

4. Improve Cycle Time- Any reduction in the amount of time it takes to produce a
product or perform service means money saved, both in maintenance costs &
personnel wages. Additionally, customer satisfaction improves when both retailers &
end-users receive product sooner than expected. The company that can get a product
to its customer faster may win the business.

Page | 9
5. Increased Customer Satisfaction- Customer satisfaction depends upon successful
resolution of all Six Sigmas other objectives. But customer satisfaction is an
objective all its own.

Page | 10
 METHODOLOGY OF THE STUDY

Methodology is the systematic theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. It explains the starting point of the research, the directions of the
research and the possible implications of the research when it is completed. Methodology
explains the literature the researcher is using, the language and terminology, the other
theories and explanations being used, the methods and the type of analysis that will be used
to interpret the data and information collected.

DATA COLLETION PLAN & DATA COLLECTION:

A data collection plan is prepared to collect the required data. This plan includes what type
of data needs to be collected, what are the sources of data, etc. The reason to collect data is
to identify areas where current processes need to be improved.

You collect data from three primary sources: input, process, and output.

The input source is where the process is generated.

Process data refers to tests of efficiency: the time requirements, cost, value, defects or
errors, and labour spent on the process.

Output is a measurement of efficiency.

SOURCE ANALYSIS:

This is also called root cause analysis. It attempts to find defects that are derived from the
sources of information or work generation. After finding the root cause of the problem,
attempts are made to resolve the problem before we expect to eliminate defects from the
product.

Page | 11
Three Steps to Root Cause Analysis
The open step: During this phase, the project team brainstorms all the possible
explanations for current sigma performance.

The narrow step: During this phase, the project team narrows the list of possible
explanations for current sigma performance.

The close step: During this phase, the project team validates the narrowed list of
explanations that explain sigma performance.

SIX SIGMA PROCESS:

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, as shown in the
graph, practically no items will fail to meet specifications. This is based on the calculation
method employed in process capability studies.
Capability studies measure the number of standard deviations between the process mean and
the nearest specification limit in sigma units, represented by the Greek letter (sigma). 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. One should also note that calculation of Sigma levels for a process data
is independent of the data being normally distributed. In one of the criticisms to Six Sigma,
practitioners using this approach spend a lot of time transforming data from non-normal to
normal using transformation techniques. It must be said that Sigma levels can be determined
for process data that has evidence of non-normality.

Graph of
the normal
distribution,
which
underlies the
statistical
assumptions of the Six Sigma model. In the centre at 0, the Greek letter (mu) marks
the mean, with the horizontal axis showing distance from the mean, marked in standard
deviations and given the letter (sigma). The greater the standard deviation, the greater is the
spread of values encountered. For the green curve shown above, = 0 and = 1. The upper
and lower specification limits (marked USL and LSL) are at a distance of 6 from the mean.
Because of the properties of the normal distribution, values lying that far away from the mean
are extremely unlikely: approximately 1 in a billion too low, and the same too high. Even if

Page | 12
the mean were to move right or left by 1.5 at some point in the future (1.5 sigma shift,
coloured red and blue), there is still a good safety cushion. This is why Six Sigma aims to
have processes where the mean is at least 6 away from the nearest specification limit.

Role of the 1.5 sigma shift:

Experience has shown that processes usually do not perform as well in the long term as they
do in the short term. As a result, the number of sigmas that will fit between the process mean
and the nearest specification limit may well 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 6 sigma between the process mean and the nearest specification limit in a short-term
study will in the long term fit only 4.5 sigma 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 a process 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 outside the limits, when the limits
are six sigma from the "original" mean of zero and the process mean is then shifted by 1.5
sigma (and therefore, the six sigma limits are no longer symmetrical about the mean).The
former six sigma distribution, when under the effect of the 1.5 sigma shift, is commonly
referred to as a 4.5 sigma process. However, it should be noted that the failure rate of a six
sigma distribution with the mean shifted 1.5 sigma is not equivalent to the failure rate of a 4.5
sigma process with the mean centered on zero. This allows for the fact that special causes
may result in a deterioration in process performance over time and is designed to prevent
underestimation of the defect levels likely to be encountered in real-life operation.
The role of the sigma shift is mainly academic. The purpose of six sigma is to generate
organizational performance improvement. It is up to the organization to determine, based on
customer expectations, what the appropriate sigma level of a process is. The purpose of the
sigma value is as a comparative figure to determine whether a process is improving,
deteriorating, stagnant or non-competitive with others in the same business. Six sigma (3.4
DPMO) is not the goal of all processes.

Sigma levels:

Page | 13
A control chart depicting a process that experienced a 1.5 sigma drift in the process mean
toward the upper specification limit starting at midnight. Control charts are used to maintain
6 sigma quality by signaling when quality professionals should investigate a process to find
and eliminate special-cause variation.

The table below gives long-term DPMO values corresponding to various short-term sigma
levels.
These figures assume that the process mean will shift by 1.5 sigma toward the side with the
critical specification limit. In other words, they assume that after the initial study determining
the short-term sigma level, the long-term Cpk value will turn out to be 0.5 less than the short-
term Cpk value. So, for example, the DPMO figure given for 1 sigma assumes that the long-
term process mean will be 0.5 sigma beyond the specification limit (C pk = 0.17), rather than
1 sigma within it, as it was in the short-term study (C pk = 0.33). Note that the defect
percentages indicate only defects exceeding the specification limit to which the process mean
is nearest. Defects beyond the far specification limit are not included in the percentages.
The formula used here to calculate the DPMO is thus

Sigma
Sigma Percent Percentage Short- Long-
(with 1.5 DPMO
level defective yield term Cpk term Cpk
shift)

1 0.5 691,462 69% 31% 0.33 0.17

Page | 14
2 0.5 308,538 31% 69% 0.67 0.17

3 1.5 66,807 6.7% 93.3% 1.00 0.5

4 2.5 6,210 0.62% 99.38% 1.33 0.83

5 3.5 233 0.023% 99.977% 1.67 1.17

6 4.5 3.4 0.00034% 99.99966% 2.00 1.5

7 5.5 0.019 0.0000019% 99.9999981% 2.33 1.83

Page | 15
SIX SIGMA TOOLS:

The tools used in Six Sigma are:

1. The Critical to Quality (CTQ) Tree:

The critical-to-quality tree is used during the design phase of DMAIC. It is used to
brainstorm and validate the needs and requirements of the customer of the process, targeted
for improvement.

The steps in creating a CTQ tree are as follows:

Identify the customer of the process targeted for improvement.

Identify the need of the customer.

Identify the first level of requirements of the need, that is, some characteristic of the
need that determines whether the customer is happy with the need.

Drill down to more detailed level(s) of the requirement if necessary.

2. The Process Map:

During the Define phase, the project team creates the first of several process maps. A
process map is a picture of the current steps in the process targeted for improvement.

A process map has five major categories of work from the identification of the suppliers of
the process, the inputs the suppliers provide, the name of the process, the output of the
process, and the customers of the process. Each of these steps is summarized as SIPOC to
indicate the steps to the team that must be conducted to complete a process map.

3. The Histogram:
This tool is used during the Analysis stage of DMAIC. The project team reviews data
collected during the Measure stage of DMAIC.

It is often suggested that the data be organized into graphs or charts, which makes it easier to
understand, what the data is saying about the process.

Data is of two types - Discrete data (go/no go, fail or pass) and Continuous data (time,
height etc).

Page | 16
 4. The Pareto Chart:
Histogram is useful for continuous data, same way when the data is discrete; most teams
create a Pareto chart. Discrete data is counted data - go/no-go, off/on, yes/no, and defect/no
defect type data.

An Italian economist Vilfredo Pareto, in the sixteenth century proved mathematically that 80
percent of the world's wealth was controlled by 20 percent of the population. This 80-20 rule
eventually proved applicable in arenas other than economics.

When dealing with discrete data, the project team should create reason codes for why a
defect occurs, and count and categorize the data into these reason codes and a pareto chart
should be prepared.

5. The Cause-Effect Diagram:

The most important tool to assist the project team in determining root causation is the cause-
effect diagram. This tool captures all the ideas of the project team relative to what they feel
are the root causes behind the current sigma performance and finally help in finding a root
cause of the problem.

6. The Scatter Diagram:

Once ideas have been prioritized after use of the cause-effect diagram, the most important
thing the project team does is to validate the remaining ideas with fact and data.

The scatter diagram takes an idea about root causation and tracks corresponding data, in the
response the team is trying to improve. The team can validate an idea about root causation
through one of the three methods. Using basic data collection, a designed experiment, or
through the scatter diagram.

Page | 17
DATAANALYSIS:

Use of measures and data (those already collected or new data gathered in the analyze
phase) to discern patterns, tendencies or other factors about the problem that either suggest
or prove/disprove possible cause of the problem.

The data itself may have defect. There may be a case when products or deliverables do not
provide all the needed information. Hence data is analyzed to find out defects and attempts
are made to resolve the problem before we expect to eliminate defects from the product.

Other Statistical Tools Used:

There are many other tools that can be used to perform analysis like:

Box Plot.
The Affinity Diagram
Progressive Analysis.
Ranking.
The Process Summary Worksheet.
The Run Chart.
The Control Chart.
Prioritization Matrix.
Value Analysis, etc.

The proper procedure is the one that works best for the team, provided that the end result is
successful.

Page | 18
 WHERE

Evolution of Six-Sigma:
The need for process improvements and a continuous improvement methodology like Six
Sigma came into existence only due to:

Rising customer expectations in terms of quality, delivery and cost,

Global competition - Japanese and Chinese threats,

Proven technique for quantum jumps in business results.

Historical Overview:

Since the 1920s the word sigma has been used by mathematicians & engineers
as a symbol for a unit of Measurement in Product Quality variation.

The term Six Sigma was coined by Bill Smith, an engineer with Motorola.

In the mid-1980s engineers in Motorola in the USA used Six Sigma an informal
name for an in-house initiative for reducing defects in production processes,
because it represented a suitably high level of quality.

In the late-1980s Motorola extended the Six Sigma methods to its critical
business processes, & significantly Six Sigma become a formalized in-house
branded name for a Performance Improvement Methodology i.e., beyond purely
defect reduction.

In 1991, Motorola certified its first Black Belt Six Sigma experts, which
indicates the beginnings of the formalization of the accredited training of six
sigma methods.

Page | 19
 In 1995, Six Sigma became well known after Mr. Jack Welch made it a central
focus of his business strategy at General Electric, & today it is used in different
sectors of industry.
By the year 2000, Six Sigma was effectively established as an industry in its own
right, involving the training, consultancy & implementation of Six Sigma
methodology.

SIX SIGMA AT MOTOROLA:

Motorola saved $17 billion from 1986 to 2004, reflecting hundreds of individual successes in
Motorola business areas including:

Sales & Marketing.

Product Design.
Manufacturing.
Customer service.
Transactional processes.
Supply chain management.

Who Are Implementing Six sigma:

Financial- Bank of America, GE Capital, HDFC,HSBC, American Express.

ITES- ICICI One Source, Accenture, Satyam PO, IBM Daksh.

Hospitality- ITC Hotels, GRT Hotels, Apollo Hospitals.

Manufacturing- GE Plastic, Johnson & Johnson, Motorola, Nokia, Microsoft, Fords,

Samsung, Wipro, Nestle.

Telecom- Bharti cellular, Vodafone, Tata.

IT- Wipro, Satyam, Infosys, TCS, Birla Soft.

Page | 20
 WHY SIX SIGMA?

It defines a concrete process for a certain problem.

Six sigma is usually adopted since it is a proven tool to solve problems or issues.

Six sigma is proven to be consistent with its results.

It focuses on the bottom line that entails credibility from the top of the organization.

The principle of Six Sigma is to provide reliable, consistent, dependable products to

its customers.

The process of Six sigma focuses on: Defects, Variability & the Customers.

Six Sigma is based on the belief if variation can be reduced then there is less chance
for defects to occur.

Six sigma projects have very strong focus on results. They also provide structure for
management through their formal training & certifications of Green Belt, Black Belt
& Master Belt experts. Each one has a higher level of knowledge & skills.

Sharing six sigma problem solving tools & techniques will allow employee
development & help create a climate & system for employee motivation.

Six sigma can play an integral part in any strategic vision. Once your business has
used a created mission statement & carried out SWOT analysis, then Six Sigma can
help you focus on areas for improvement.

It is a statistical process control. The acceptable tolerance within each specification

that allows the process to be in control & produce quality output.

Six sigma in laymans term is a scientific approach to problem solving as it uses data in
detailing with all sort of problem. It is quantifiable approach in addressing problem.

Page | 21
 HOW SIX SIGMA IS USED

Six Sigma Start-up:

Deploying Six Sigma within an organization is a big step and involves many activities
including define, measure, analyze, improve, and control phases. Here are some steps, which
are required for an organization at the time of starting Six Sigma implementation.

Plan your own route: There may be many paths to Six Sigma but the best is the one
that works for your organization.

Define your objective: It is important to decide what you want to achieve, and
priorities are important.

Stick to what is feasible: Set up your plans so that they can match your influences,
resources and scope.

Preparing Leaders: They are required to launch and guide the Six Sigma Effort.

Creating Six Sigma organizations: This includes preparing Black Belts and other
roles and assigning them their responsibilities.

Training the organization: Apart from having black belts, it is required to impart
training of Six Sigma to all the employees in the organization.

Piloting Six Sigma efforts: Piloting can be applied to any aspect of Six Sigma
including solutions derived from process improvement or design redesign projects.

The Cost of Six Sigma Implementation:

Some of the most important Six Sigma budget items can include the following:

Direct Payroll for the individuals dedicated to the effort full time.

Indirect Payroll for the time devoted by executives, team members, process owners
and others, involved in activities like data gathering and measurement.

Training and Consultation fee to teach Six Sigma Skills and getting advice on how to
make efforts successful.

Page | 22
 Improvement Implementation Cost.

Project Selection for Six Sigma:

One of the most difficult challenges in Six Sigma is the selection of the most appropriate
problem to attack. There are generally two ways to generate projects:

Top-down: This approach is generally tied to business strategy and is aligned with
customer needs. The major weakness is they are too broad in scope to be completed
in a timely manner (most six sigma projects are expected to be completed in 3-6
months).

Bottom-up: In this approach, Black Belts choose the projects that are well-suited for
the capabilities of teams. A major drawback of this approach is that, projects may not
be tied directly to strategic concerns of the management thereby, receiving little
support and low recognition from the top.

Methodology of Six Sigma:

Six sigma projects follow two project methodologies:

1. DMAIC
2. DMADV.

These methodologies composed of five phases.

1. DMAIC:

DMAIC is used for projects aimed at improving an existing business process.

The DMAIC project methodology has 5 phases:

i. Define: Define the system, the voice of the customer & their requirements, & the
project goals, specifically.

ii. Measure: Measure key aspects of the current process collect relevant data.

iii. Analyze: Analyze the data to investigate & verify cause-and- effect relationships.
Determine what the relationships are, & attempt to ensure that all factors have
been considered. Seek out root cause of the defect under investigation.

Page | 23
 iv. Improve: Improve or optimize the current process based upon data analysis using
techniques such as design of experiments, mistake proofing & standard work to
create new, future state process capabilities.

v. Control: Control the future state process to ensure that any deviations from target
are corrected before they result in defects. Implement control systems such as
statistical process control, production boards, visual workplaces, & continuously
monitor the process.

Fig. DMAIC

2. DMADV:

DMADV project methodology has 5 phases:

i. Define: define design goals that are consistent with customer demands & the
enterprise strategy.

ii. Measure: Measure & identify CTQs (characteristics that are Critical to Quality),
product capabilities, production process capability, & risks.

Page | 24
iii. Analyze: Analyze to develop & design alternatives.

iv. Design: Design an improved alternative, best suited per analysis in the previous step.

v. Verify: Verify the design, set up pilot runs, implement the production process & hand
it over to the process owners.

Fig. DMADV

Page | 25
 WHO SHOULD USE SIX SIGMA?

There are three key elements of Six Sigma Process Improvement:

Customers

Processes

Employees.

1. The Customers: Customers define quality. They expect performance, reliability,

competitive prices, on-time delivery, service, clear & correct transaction processing & more.
This means it is important to provide what the customers need to gain customer delight.
2. The Processes: Defining processes as well as defining their metrics & measures is the
central aspect of Six Sigma.
In a business, the quality should be looked from the customer's perspective
and so we must look at a defined process from the outside-in.
By understanding the transaction lifecycle from the customer's needs and
processes, we can discover what they are seeing and feeling. This gives a
chance to identify weak areas within a process and then we can improve them.
3. The Employees: A company must involve all its employees in the Six Sigma program.
Company must provide opportunities & incentives for employees to focus their talents &
ability to satisfy customers.
It is important to Six Sigma that all the team members should have a well-defined role with
measurable objectives.

Implementation Role:

Six sigma identifies several key roles for its successful implementation:

a) Sponsor: Senior executive who sponsors the overall Six Sigma initiative.

b) Leader: Senior-level executive who is responsible for implementing Six Sigma

within the business.

c) Champion: Middle- or senior-level executive who sponsors a specific Six Sigma

project, ensuring that resources are available & cross-functional issues are resolved.

Page | 26
d) Black Belt: Full-time professional who acts as a team leader on Six Sigma projects.
Typically has four to five weeks of classroom training in methods, statistical tools and
sometimes team skills.

e) Master Black Belt: Highly experienced & successful Black Belt who has managed
several projects & is an expert in Six Sigma methods/tools. Responsible for
coaching/mentoring/training Black Belts & for helping Six Sigma leader &
Champions keep the initiative on track.

f) Green Belt: Part-time professional who participates on a Black Belt project team or
leads smaller projects. Typically has two weeks of classroom training in methods &
basic statistical tools.

g) Team Member: Professional who has general awareness of Six Sigma (through no
formal training) and who brings relevant experience or expertise to a particular
project.

h) Process Owner: Professional responsible for the business process that is the target of
a Six Sigma project.

Page | 27
 ANALYSIS & INTERPRETATION

Consider a pizza delivery shop that guarantees the order delivery within 30 minutes from the
time of accepting an order. In the event of a delivery time miss, the customer is refunded
100% money. How often do we notice timely delivery from a thirty-minute pizza delivery
shop? In contrast, we always take note of delayed deliveries, or that shops variation. This
pizza shop will have to make 99.9997% deliveries within 30 minutes to be called a six sigma
shop.

It is evident that the "delivery time" is a critical-to-quality parameter from the customer
perspective and has a significant impact on profits. In addition, it is an entry barrier for the
competition. Such a parameter is called a CTQ and its definition in context of our pizza shop
is given below:

CTQ Name: Timely Pizza Delivery.

CTQ Measure: Time in Minutes.

CTQ Specification: Delivery within 30 minutes from the order acceptance time.

Now we can easily define a defect:

Defect: Delivery that takes longer than 30 minutes.

Unit: Order.

Opportunity: 1 per order i.e. only 1 defect can occur only in 1 order

Page | 28
The Six Sigma conversion graph illustrating the relationship between sigma values and
defects/million opportunities is given below:

This graph is on a logarithmic scale. Notice the increasing rate of improvement. For example,
1 sigma to 3 sigma is only 10 times improvement; 3 sigma to 4 sigma is a big 10 times
improvement; whereas 5 sigma to 6 sigma is a whooping 1825 times change. That is why it is
essential to achieve breakthrough improvements to reach such a level of maturity. Six Sigma
provides a methodology to achieve this.

Page | 29
 FINDINGS & CONCLUSION

FINDINGS:

Six Sigma is a philosophy of quality improvement.

Six Sigma is 3.4 defects in one million opportunities (DPMO).

Components of Six Sigma are Customer, Process, and Employees.

Six Sigma implementation requires the following roles:

o Sponsor

o Leaders

o Champions

o Black Belt

o Master Black Belt

o Green Belt

o Team members

o Process Owners.
The generic cycle of Six Sigma includes the following phases: Define, Measure,
Analyze, Improve, and Control.

Six Sigma is dedicated to 'Customer focus'.

CONCLUSION:

In conclusion, adoption of the Six Sigma strategy completely revolutionizes a business

organization and culture, allowing the chance for optimal success for the business. It is also a
modern approach to process and product improvement through use of statistical methods with
the aim of delighting the customer. Once properly implemented, its results are tremendous
and documented.

Page | 30
 BIBLOGRAPHY
www.wikipedia.com

https://www.tutorialspoint.com/six_sigma/six_sigma_useful_resources.htm

http://www.sixsigmaonline.org/six-sigma-training-certification-information/the-six-
sigma-strategy-for-businesses/

http://www.dummies.com/careers/project-management/six-sigma/how-to-calculate-
six-sigma-quality/

http://www.managementstudyguide.com/six-sigma-concepts.htm

www.slideshare.net

http://www.ge.com/en/company/companyinfo/quality/whatis.htm

Page | 31