Six Sigma (SS)

What is Six- Sigma?

A quality measure and improvement program developed by Motorola that focuses on

the control of a process to the point of ± six sigma (standard deviations) from a
centerline, or 3.4 defects per million items.
It includes identifying factors critical to quality as determined by the customer,
reducing process variation and improving capabilities, increasing stability and
designing systems to support the six sigma goal. This increase in performance and
decrease in process variation lead to defect reduction and improvement in profits
and quality of product.

SS uses a high degree of statistics to address the issue.

SS in business

SS was tradionally associated with manufacturing set up to reduce defects in the

manufactured products. Currently companies like GE have extended the SS
methodology too all the business processes. So any business process which involves
repetitive work, and which is currently having a high degree of errors/defects can be
improved using SS methodology.

SS Org Structure

SS can be made operational in the following ways in a organization:

1. In the first case , a SS service line is setup with in the organization with the
head of the quality function heading the SS initiative. A typical SS driven
quality organization is headed by a VP (Quality ) , who has Master Black
Belts reporting to him, & the MBB`s have Black Belts reporting to them.
VP
(Quality
)

Master Black
Belts

Black Belts
 Black Belts are identified for each function within the organization where six
sigma initiatives are planned to be implemented. The primary function of the
Black Belts is to guide employees in their effort to identify pain areas and help
them solve these problems using six-sigma methology. Also the Black Belts
champion projects which have a very large implication.

2. In the second case a company would not want to set up extensive quality
function with in the organization spanning all the functions of the organization
Here the company could take assistance from consultant firms who will play
the role of Black Belts and guide employees in identifying pain areas and help
them over come these pain areas using six sigma methodology

Scope for E&Y:

In both the above scenarios E&Y could offer its services:

1.In the first case E&Y could help the company set up the internal quality
organization. This would entail
• Defining the quality organization structure
• Identifying & training Master Black Belts & Black Belts
• Guiding & helping employees to do the initial six sigma projects .

2.In the second case E&Y could be involved on a case-to-case basis and work with
the employees to identify the pain areas and use six-sigma methodology to address
these pain areas. The key deliverables would be
• Teaming up with the employees in identifying key pain areas and identifying
projects which would have a material impact , on application of six sigma
methodology to solve the pain area.
• Training the employees in six sigma methodology
• Taking the project to closure