AN ASSIGNMENT

ON

SIX SIGMA
IN

International Institute For Special Education

OFF RING ROAD VIA KALYANPUR, LUCKNOW

UNDER SUPERVISION OF: SUBMITED BY:

Mr. SATYENDRA SINGH DEEPIKA SINGH
PGDM-2nd Year Enroll
PGDM Faculty No-1101
IISE, Lucknow

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 PREFACE

To get success in today’s scenario, there are number of things,

which should be properly analyzed, and then one should produce
such an object, which carries a unique meaning with itself. In such
a case we have to follow proper steps so that we can understand the
gap and try to fill the gap.
Theoretical knowledge is one thing, and the practical application of
the knowledge is another thing. Theories and ideas are successful
only when they are practically implemented. Owing to this
importance vested to practicality, I have undertaken this project.
Through this I will try to reveal and analyze the importance of Six
Sigma and its implementation at the corporate level. I will try to
show how Six Sigma approaches are used successfully by an
Insurance giant which has faced various competitions, named
‘Bajaj Capital’.

In the execution of this project various problems that

were encountered includes finding out the right prospects and
surfing the internet more and more for knowledge of its
competitor.

DEEPIKA SINGH

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 ACKNOWLEDGEMENT

An endeavor over a long period can be successful only with the

advice and guidance of our well-wishers. I take this opportunity to
express my deep gratitude and appreciation to God and all those
who encouraged me to successfully complete the project work.

I take this opportunity to sincerely thank Mr. Satyendra Singh

(Faculty), IISE Lucknow who introduced me to the fascinating
subject of impact of Six Sigma and sharing his encyclopedic
knowledge on the subject, which is going to be instrumental in
shaping my career in the area of Six Sigma.
I would like to express my heart-felt gratitude to Mr. Arvind
Kumar, Regional Manager (Eastern UP) who guided me and told
me the whole process of the company. He briefed me about every
relevant and important detail. He patiently answered my queries
and helped me in getting my required information.

I would like to thank all my friends for their help and affectionate
encouragement. I want to thank my Parents for their support during
this study; it would have been impossible to pursue this study
without their care and support.

DEEPIKA SINGH

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 CONTENT SHEET

Chapter No Topics

1 Preface

2 Acknowledgement

3 Executive Summary

4 Company Overview

6 Objective of the Project

7 Introduction to six sigma

8 PROCESS FLOW CHART (Before

Six Sigma Implementation)

9 Six Sigma in Bajaj capital

10 PROCESS FLOW CHART (After

Six Sigma Implementation)
11
SWOT Analysis

12
Conclusion
13 Bibliography

EXECUTIVE SUMMARY

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BACKGROUND:

In a growing economy like ours, the need to

introduce productivity techniques, measures and methods requires
barely any emphasis. The finite nature of material and other
resources requires a reappraisal of contemporary methods of
management and manufacture with stress laid on revising and
implementing optimal systems. There are many management
sciences which steer to productivity improvement programmes in
different spheres of economic activities. In India and all over the
world, Business process reengineering, perhaps, is pioneering
management science which found its application in industry for
resources utilization. Winning in today’s business climate
requires more than just providing high-quality, low-
cost products to customers, when and how the
customers want them.
Today the economy is changing its pace shifting
economic needs. Every organization tries to maintain their
position with changing their business process or introduced a new
process or developing the existing process that they provide more
satisfaction to the customers for that Six Sigma is required. Here in
this project researcher tried to find out the processes of chosen any
product of Bajaj Capital.
Objectives
• To identify the current process.
• To identify the root cause(s) in the existing process.
• To use six sigma steps in the process(es)

Research methodology:

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 The proposed research is exploratory & research based. The
researcher try to achieve the objectives through self study,
interviews of concern people, internet etc. all the aspect of the
research is thoroughly covered with appropriate technical support.

Major Findings:
If the organization goes through Six Sigma in
their service provide pattern and documentation of their product
(mainly in insurance), it helps both consumer as well as the
organization.

COMPANY OVERVIEW

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The Bajaj Capital Group is one of India’s premier Investment
Advisory and Financial Planning companies. We are also SEBI-
approved Category I Merchant Bankers.

We offer personalized Investment Advisory and Financial Planning

services to individual investors, corporate houses, institutional
investors, Non-Resident Indians (NRIs) and High Net worth
Clients, among others.

As one of India’s largest distributors of financial products, we offer

a wide range of investment products such as mutual funds, life and
general insurance, bonds, post office schemes, etc. offered by
reputed public and private and government organizations.

Bajaj Capital is one of India’s leading Financial Services

companies offering Free Advice on Investments, Insurance, Tax
Saving, Retirement Planning, Financial Planning, Children’s
Future Planning and other services. We also have a wide range of
products and services for Corporates, High Networth Individuals,
and NRIs… all under one roof.

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 THE HISTORY OF BAJAJ CAPITAL

Bajaj Capital has contributed to the growth of the

Indian Capital Market at every step.

In 1965, we were the first to innovate the

Companies Fixed Deposit. Today, we are playing an active role in
the growth of the Indian Mutual Fund industry.

We are also working closely with private insurance companies to

deepen India's insurance market.

Here is a brief gist of our journey throug the years.

1964
Bajaj Capital sets up its first Investment Centre™ in New Delhi to
guide individual investors on where, when and how to invest.

India's first Mutual Fund, Unit Trust of India (UTI) is incorporated

in the same year.

1965
Bajaj Capital is incorporated as a Company. In the same year, the
company introduces an innovative financial instrument – the
Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as
Associated Hotels of India Ltd.) becomes the first company to raise
resources through Company Fixed Deposits.

1966
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Bajaj Capital expands its product range to include all UTI schemes
and Government saving schemes in addition to Company Fixed
Deposits.

1969
Bajaj Capital manages its first Equity issue (through an associate
company) of Grauer & Wells India Ltd.; right from drafting the
prospectus to marketing the issue.

1975
Bajaj Capital starts offering 'need-based' investment advice to
investors, which would later be known as 'Financial Planning' in
the investment world.

1981
SAIL becomes the first government company to accept deposits,
followed by IOC, BHEL, BPCL, HPCL and others; thus opening
the floodgates for growth of retail investment market in India.

Bajaj Capital plays an active role in all the schemes as 'Principal

Brokers'

1986
Public Sector Undertakings (PSUs) begin making public issues of
bonds MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj
Capital is among the top ranks of resource mobilisers.

1987
SBI leads the launch of Public Sector Mutual Funds in India. Bajaj
Capital plays a significant role in fund mobilisation for all these

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players.

1991
SBI issues India Development Bonds for NRIs. Bajaj Capital
becomes the top mobiliser with collections of over US $20 million.

1993
The first private sector Mutual Fund – Kothari Pioneer – is
launched, followed by Birla and Alliance in the following years.
Bajaj Capital plays an active role and is ranked among the top
mobilisers for all these schemes.

1995
IDBI and ICICI begin issuing their series of Bonds for retail
investors. Bajaj Capital is the co-manager in all these offerings and
consistently ranks among the top five mobilisers on an all-India
basis.

1997
Private sector players lead the revival of Mutual Funds in India
through Open-ended Debt schemes. Bajaj Capital consolidates its
position as India's largest retail distributor of Mutual Funds.

1999
Bajaj Capital begins marketing Life and General Insurance
products of LIC and GIC (through associate firms) in anticipation
of opening up of the Insurance Sector. Bajaj Capital achieves the
milestone of becoming the top 'Pension Scheme' seller in India and
launches marketing of GIC's Health Insurance schemes.

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2000
Bajaj Capital implements its vision of being a 'One-stop Financial
Supermarket.' The Company offers all kinds of financial products,
including the entire range of investment and insurance products
through its Investment Centres. Bajaj Capital offers 'full-service
merchant banking' including structuring, management and
marketing of Capital issues. Bajaj Capital reinvents 'Financial
Planning' in its international sense and upgrades its entire team of
Investment Experts into Financial Planners.

2002
The company focuses on creating investor awareness for Financial
Planning and need-based investing. To achieve this goal, the
company introduced the International College of Financial
Planning. The graduates of this institute become Certified
Financial Planners (CFPs), a coveted professional qualification.

2004
Bajaj Capital obtains the All India Insurance Broking Licence.
Simultaneously, a series of wealth creation seminars are launched
all over the country, making Bajaj Capital a household name.

2005
Bajaj Capital launches 360° Financial Planning, a software-based
programme aimed at encouraging scientific and holistic investing.

2007
Bajaj Capital launches Stock Broking and Depository(Demat)
Services.

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2008
Bajaj Capital launches Just Trade, an online Platform for investing
in Equities, Mutual Funds, IPO's

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 Company Profile
Bajaj Capital is one of India’s leading Financial Services
companies offering Free Advice on Investments, Insurance, Tax
Saving, Retirement Planning, Financial Planning, Children’s
Future Planning and other services. We also have a wide range of
products and services for Corporates, High Networth Individuals,
and NRIs… all under one roof.

At Bajaj Capital, we believe in dreaming big. Dreams inspire us to

excel. They ignite hope and kindle in us the passion to stretch our
limits. We also believe that nothing can or should stop us from
realising our dreams… and financial constraints should be the last
thing to stop anyone.

Four decades of excellence For over four decades, we have been

helping people realise their aspirations by helping them make their
wealth grow, and plan their financial lives. Today, we are a one of
the largest financial planning and investment advisory
companies in India, with a strong presence all over the country.
We take pride in serving our customers – both individual and
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institutional – and are known for our strong professionalismand
work ethics. Wide range of services
We offer a comprehensive range of services including financial
planning and investment advice, and the entire gamut of financial
instruments and investment products of almost all major
companies, both public and private. In addition, we also
provide investment assistance by helping you complete all the
formalities, and help you keep regular track of your investments.

These services and products are delivered through our network of

134 Bajaj Capital Investment Centres located all over the country.

We are also aSEBI-approved Category I Merchant Banker. We

raise resources for over 1,000 top institutions and corporate houses
every year, and offer specialised services to Non-Resident Indian
(NRIs) and High Networth Clients.

What you can expect from us

 Sound, research-based advice

 Unbiased, independent and need-based advice
 Prompt, courteous service
 Honest, ethical dealings
 Accessibility

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 Objective of the Project

The objective of the project is to understand the Six

Sigma technique and how it is used in the process of organization.
The main objective is to understand the current business process
and then use Six Sigma tools to improve the existing process,
which add value to the customer and increase the profit of an
organization and reduce the time of the whole process.

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 INTRODUCTION TO SIX SIGMA

Six Sigma is a business management strategy, originally developed

by Motorola that today enjoys wide-spread 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).

What is "Six Sigma"?

Six Sigma is a well-structured, data-driven methodology for

eliminating defects, waste, or quality control problems of all kinds
in manufacturing, service delivery, management, and other
business activities. Six Sigma methodologies is based on the
combination of well-established statistical quality control
techniques, simple and advanced data analysis methods, and the
systematic training of all personnel at every level in the
organization involved in the activity or process targeted by Six
Sigma.

Why is it important?

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World-class companies typically operate at about four sigma or
99% perfection. To get to the six-sigma level means cutting down
on huge costs and thereby the wasted dollars. For example, if you
are four sigma - you would be producing products at the rate of
6200 defectives for every million you produce vs. 3.4 defectives if
you are at the six sigma level. Moreover, six sigma improvement
projects typically return in excess of $150k to $250k per project
with a Black Belt returning as much as $1 million to the bottom
line each year.

The popularity of Six Sigma is growing. Companies such as

Motorola (1987), Texas Instruments (1988), IBM (1990), Asea
Brown Boveri (1993), Allied Signal/Kodak (1994), GE (1995),
Whirlpool, PACCAR, Invensys, & Polaroid (1996/98), and many
other companies worldwide have successfully implemented Six
Sigma. Recently Ford, DuPont, Dow Chemical, Microsoft and
American Express have started working on instituting Six Sigma
processes.

How does it work?

The power of Six Sigma lies in its "empirical," data-driven

approach (and its focus on using quantitative measures of how the
system is performing) to achieve the goal of the process
improvement and variation reduction. That is done through the
application of so-called "Six Sigma improvement projects" which,
in turn, follow the "Six Sigma DMAIC" sequence of steps (Define,
Measure, Analyze, Improve, and Control). Specifically:

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 • Define. The Define phase is concerned with the definition of
project goals and boundaries, and the identification of issues
that need to be addressed to achieve the higher (better) sigma
level.

• Measure. The goal of the Measure phase of the Six Sigma

strategy is to gather information about the current situation,
to obtain baseline data on current process performance, and
to identify problem areas.

• Analyze. The goal of the Analyze phase of the Six Sigma

quality effort is to identify the root cause(s) of quality
problems, and to confirm those causes using the appropriate
data analysis tools.

• Improve. The goal of the Improve phase is to implement

solutions that address the problems (root causes) identified
during the previous (Analyze) phase.

• Control. The goal of the Control phase is to evaluate and

monitor the results of the previous phase (Improve).

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 Six Sigma aims at reducing variations in a business
and manufacturing process via dedicated improvements in the
various processes. This requires a sustained commitment from all
members of the organization.

This principle has been perfectly brought about by the DMAIC

methodology, which aims at bringing about process improvement
by eliminating defects. It is generally defined as a set of practices
which are aimed at bringing about improvement in efficiency and
eliminating defects.

Among the many methodologies and strategies that Six Sigma

allows is the DMAIC Model. It stands for Define-Measure-
Analyze-Improve and Control. This model plays an important role
in making the Six Sigma initiative a success for businesses. Black
Belts follow this model to base their process improvement projects.

The model was developed by Edwards Deming, aimed at reducing

defects through improvement in processes.

The Six Sigma Methodology:

The projects having large impact of customer satisfaction and

significant impact on bottom-line are selected. Top management of
the organization has very important role during selection of
projects and leaders. The projects are clearly defined in terms of
expected key deliverables. These are typically in terms of DPMO
levels or sigma quality levels, RTY, Quality Cost etc. In the overall

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approach, the actual problem is converted in to a statistical
problem. This is done by mapping the process, defining key
process input variables (KPIVs or ‘x’s) and key process output
variables (KPOVs or ‘y ’s). The power of statistical tools is used to
determine a statistical solution.
This is then converted in to a practical solution.

PROCESS FLOW CHART (Before Six Sigma

Implementation)

Company, as a financial
planner offer a host of
products from auto
insurance to retirement
solutions of different
companies

CUSTOMER
APPROACH

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 There is no separate
advisor for different
company’s product

Customer may
get confused

No
If customer is
satisfied

Yes Go for other

company

Take the
policy

DOCUMENTATION

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 Six Sigma in Bajaj Capital

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The process of six sigma in BAJAJ CAPITAL can be applied
through DMAIC methodology. The various steps involved in the
process of implementation are:

Define:

In the define stage, the company should make efforts to identify

the problem. The problem is the time take by the administration
department for completing the work. Due to this problem the
customers have lost their faith in the company. For the
implementation, a special team should be made.

This is the first step that refers to defining the goals

of the project. Process improvement goals may be aimed at
increasing market share, the output of a particular department,
bringing about improved employee satisfaction as well as customer
satisfaction and so on. The goal has to align the customer demands
and the strategic goals of the organization. Data mining methods
can be used to find prospective ideas for project implementation. In
other words, businesses are designing a road map for achieving the
targets and goals of the organization.

PROBLEM STATEMENT

 Confuse about the chosen of product and problem in

documentation.

PROJECT OBJECTIVE

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  Use separate advisor for different companies product
according to need of customer.

 Use online enroll.

Measure:

This phase refers to the analysis of the existing system with

various measurement techniques for the defects and levels of
perfection that exist. In this step, accurate metrics have to be used
to define a baseline for further improvements.
This helps Six Sigma team leaders understand if progress has
been achieved when process improvements are implemented.

Analyze:-

This phase is extremely important in order to determine

any disparity that may exist in the goals set and the current
performance levels achieved. Various statistical tools are available
to undertake such an analysis.

The understanding of the relationship between cause and

effect is necessary to bring about any improvements, if needed.

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Improve:

The next step is to study the impact of the critical input variables in
the existing process. As we all know that after implementing six
sigma exercises, all the process will go smooth and the better result
come in our hand. Through the software and some of the
technology, we are trying to implement six sigma in the Bajaj
Capital.

Improvements in existing systems are necessary to bring the

organization towards achievement of the organization goals.
Creative development of processes and tools brings about a new
lease on life for the organization's processes and takes them nearer
to organizational objectives.

Various project management and planning tools can be used to

implement these new techniques and processes. Appropriate usage
of statistical tools is important to measure the data, which is
necessary to understand improvements done and any shortcomings
that may exist.

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SOME OF THE TECHNOLOGY:

File Management System

The entire Documentation process is done by online Enroll.

Control:

The last phase of DMAIC is the Control phase. It helps ensure that
variations in the processes are rectified before they have a negative
effect. Controls can be used to ensure sustained improvements in
new processes and operating procedures.

The new project components should become a part and parcel of

existing processes. Once all the factors are performing to
satisfaction, transfer of ownership should be done to process
owners and process teams.

The DMAIC model is extremely beneficial in bringing about the

change which the Six Sigma project aims at and has the ability to
show good business results.
In order to control the process of implementation in the company,
proper systems should be set up to measure the performance of the
organization. It may be a team or a software to monitor all these
performances.

Six Sigma Provides Results Increasingly, financial services

businesses are seeing the power of Six Sigma as a performance
improvement methodology that leads to:
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• Improved service to top priority customers
• Realization of customer initiatives
• Improved employee satisfaction
• Reduced complaints and associated costs

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PROCESS FLOW CHART (After Six Sigma Implementation)

Company, as a financial
planner offer a host of
products from auto
insurance to retirement
solutions of different
companies

CUSTOMER
APPROACH

There are separate

advisor for different
company’s product

Customer mayn’t
get confused

Customer may not

Go for other
option

No
Take the policy

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 Yes
Go for other
company
DOCUMENTATION

Online Enroll, less

time taking

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 BENEFITS

The process of six sigma implementation will help the

organization to reap some benefits like:

• Identifies Key Business Processes

Unlike other quality management practices such as Total Quality

Management (TQM) whose effectiveness is difficult to measure,
Six Sigma based improvement programs make use of statistical
tools, which can measure the effect of changes being made in a
very short time. 6 Sigma focuses on process orientation, enabling
organizations to identify key business processes that are necessary
for improving customer satisfaction. This helps managers in
understanding the exact requirements of their customers and in
altering business processes to suit customer needs and expectation.

• Follows A Disciplined Approach

Six Sigma has helped insurance companies in improving quality as

well as reducing costs of services offered. It has enabled insurance
companies to follow a disciplined approach, which has helped in
preventing errors, minimizing hand-offs, and eliminating rework
and workarounds. It has also helped in increasing the speed of
business processes used in the insurance industry.

• Helps In Making Informed Decisions

6 Sigma has enabled managers in taking informed decisions based

on statistical data. With the use of Six Sigma tools and techniques,
managers no longer have to rely on their perceptions or gut

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feelings for rendering the level of services promised to
policyholders, clients, and prospects.

• Helps In Building Customer Loyalty

• This is especially true for the insurance industry where the
relationship between the insurer and the insured is still
largely governed by sustained personal contact. By
implementing 6 Sigma programs, insurance companies have
been able to offer quality services at affordable rates to their
customers.

Internal Factors - Strengths & Weaknesses

SWOT Analysis

Let's analyze the position of Bajaj capital in the current market set-
up, evaluating its strengths, weaknesses, threats and opportunities
available:

SWOT ANALYSIS OF BAJAJ CAPITAL

Strengths:

1. Highly experienced management.

2. Product design and development capabilities.
3. Extensive R & D focus.
4. Widespread distribution network.
5. High performance products across all categories.
6. Great financial support network
7. High economies of scale.
8. High economies of scope.

Weaknesses:

1. Hasn't employed the excess cash for long.

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 2. Not a global player in spite of huge volumes.
3. Not a globally recognizable brand

Threats:

1. The competition catches-up any new innovation in no time.

2. Margins getting squeezed from both the directions (Price as
well as Cost)

Opportunities:

1. Every team member is given a chance to excel, and the

efforts of every performer is recognised.
2. There is a supportive, healthy work culture where everyone is
treated equally. Bajaj Capital has also made a successful
effort to cut down stress levels.
3. Qualities like leadership, communication skills, negotiating
skills and an impressive personality should bedeveloped.

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 CONCLUSION

The organization is very successful in the rightful

implementation of the Six Sigma approach. The usability of Six
Sigma in the services sector is easily evident from the increasing
number of finance and insurance companies that are opting for 6
Sigma. Consumers are increasingly becoming aware of the quality
of services being offered to them, making it essential for the
services industry to implement quality improvement techniques
like Six Sigma for conforming to customer expectations.

Through 6 Sigma emphasizes on understanding the needs of the

customers before making any changes to business processes. This
helps insurance companies in building customer loyalty among
their policyholders, which is necessary for the long-term success of
any business organization. Insurance companies can also hope to
increase their market share, as satisfied customers are most likely
to recommend a company that offers quality services while
advising a friend, relative or business associate .Bajaj Capital has
been successful in providing immediate support and service to its
customers through properly understanding their need and fulfilling
those needs though customized products.

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.

Select Bibliography
Books:

• Marketing Management by Philip H Kotler

• Six Sigma by Thomas Kangon
• Six Sigma Primer (IISE)

Magazines:

• K. L. K. Rao and Ramesh Tagat: Six Sigma- a

developmental approach

Website:

• www.marketingterms.com
• www.google.com
• www.ask.com
• www.bajajcapital.com

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