Professional Documents
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SIX SIGMA
World Class Performance
With 99 % Quality
3,000 misdeliveries
1 misdelivery
4100 crashes
SIX SIGMA
Business Definition
A break through strategy to significantly improve customer
satisfaction and shareholder value by reducing variability
in every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per million
opportunities.
became well known after Jack Welch made it a central focus of his
business strategy at General Electrics in 1995, and today it is used
in different sectors of industry.
It uses a set of quality management methods, including statistical
methods, and creates a special infrastructure of people within the
organization who are experts in these very complex methods. Each
Six Sigma project carried out within an organization follows a
defined sequence of steps and has quantified financial targets (cost
reduction and/or profit increase)
Six sigma accuracy means that the process is 99.999998% accurate.
in quality practice six sigma means 3.4 defects per million
Rate of
Improvemen
t
690,000
308,000
2 times
66,800
5 times
6,210
11 times
230
27 times
3.4
68 times
To reduce variations
To reduce defects
To improve productivity
external) deliverables
Measure the process to determine current performance
Analyze and determine the root cause(s) of the defects
Improve the process by eliminating defects
Control future process performance
formed
400,000/-.
Current process sigma level - 2.43 or 175889 DPMO
10
Customer
needs
Improved delivery
performance
Level 1
CTQ
Timely delivery
Level 2
CTQ
On time delivery to
schedule
Level 3
CTQ
11
12
DEFINE PERFORMANCE
STANDARDS
Output unit
Output
characteristic
Timely delivery
Project Y measure
Specification limits
Target
Defect
No. of defect
opportunities per
13
Stores Manager
Input
Stores Order
Process Steps
(high level)
Receive order
Plan delivery
Dispatch Driver with goods
Deliver goods to stores
Receive delivery
Output
Customer
Store Manager
14
Type of engine
Type of tyres
Fuel capacity
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IMPROVE
Experiments designed and conducted
Findings:
Larger tyres took longer time at certain routes
CONTROL
Test implementation.
Process sigma level up from 2.43 or 175889 DPMO to
DPMO.
Improvement led to significant customer satisfaction.
Process continually monitored and data on new cycle
LIMITATIONS
Define
Difficulty in identifying the right project and
defining the scope;
Difficulty in applying statistical parameters
to Voice of the Customers;
Trouble with setting the right goals;
Measure
Inefficient data gathering;
Lack of measures;
Lack of speed in execution;
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LIMITATIONS
Analyze
Challenge of identifying best practices
Overuse of statistical tools/ under use of practical
knowledge
Challenge of developing hypotheses
Improve
causes
Difficulty of implementing solutions
Control
Lack of follow up by Managers/ Process Owners
Lack of continuous Voice of the Customer feedback
Failure to institutionalize continuous improvement.
19
IMPORTANT POINTS
Define ranked most important step but gets the
20
Cp =
3
1. 3
=
Cpk
3
1. 3