TOPIC:- SIX SIGMA

SUBJECT:- OPERATION MANAGEMENT

SUB. TO. SUB. BY. (GROUP)

Mr. P.C.Jain Gajendra Singh ...........
Manish Tiwari ..............
Monendra Yadav ..........
Ranveer Singh .........
 SIX SIGMA
Six Sigma seeks to improve the quality of process outputs by
identifying and removing the causes of defects (errors) and
variability in manufacturing a Six Sigma seeks to improve the
quality of process.

Six Sigma is a rigorous and a systematic methodology that utilizes

information (management by facts) and statistical analysis to
measure and improve a company's operational performance,
practices and systems by identifying and preventing 'defects' in
manufacturing and service-related processes in order to anticipate
and exceed expectations of all stakeholders to accomplish
effectiveness.
Graph of the normal distribution, which underlies the statistical
assumptions of the Six Sigma model. The Greek letter σ (sigma)
marks the distance on the 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 above, µ = 0 and σ = 1. The upper and lower specification
limits (USL, LSL) are at a distance of 6σ from the mean. Due to
the properties of the normal distribution, values lying that far
away from the mean are extremely unlikely.
 FEATURES OF SIX SIGMA

 A clear focus on achieving measurable and

quantifiable financial returns from any Six Sigma
project.
 An increased emphasis on strong and passionate
management leadership and support.
 A clear commitment to making decisions on the
basis of verifiable data, rather than assumptions
and guesswork.
 GOAL OF SIX SIGMA
The goal of Six Sigma is to increase he profits
by eliminating variability, defects and waste
that undermine customer loyalty.”Bottom line
financial improvement
 BENEFITS OF SIX SIGMA

It introduces rapid and almost radical

improvement- six sigma is such an
instrument of change which can bring about
radical changes in the way an organization
functions.
Provides a consistent metric- six sigma
provides measures and targets that are
quantifiable .specific defects –deviations from
the customer requirements identified and
measured.
The customer is always in focus- the benefit of constant
measurements is that the customer is always in focus with
her requirements being the standard against which
measurements are done

Continuous improvement process – a six sigma initiative

never stop. It forever it is true that six sigma signifies radical
improvement .

Transforms the entire organization- six sigma is

implemented, the entire organization in all its constituent
part is geared for absorbing rapid and radical change. Six
sigma initiative makes management to take a closer look at
the various functions and departments and the inter
relationships between them.
 METHODOLOGY OF SIX SIGMA

As Six Sigma has evolved, there has been less emphasis on

the literal definition of counting defects in products and
processes. Six Sigma is a business improvement
methodology that focuses an organization on:
Understanding and managing customer requirements.
Aligning key business processes to achieve those
requirements.
Utilizing rigorous data analysis to minimize variation in
those processes.
Driving rapid and sustainable improvement to business
processes
At the heart of the methodology is the DMAIC model for
process improvement. DMAIC is commonly used by Six
Sigma project teams and is an acronym for:

 Define opportunity,
Measure performance,
Analyze opportunity,
Improve performance,
Control performance,
 SIX SIGMA AS A METRIC

 The term "Sigma" is often used as a scale for

levels of "goodness" or quality. Using this scale,
"Six Sigma" equates to 3.4 defects per one million
opportunities (DPMO).
 Six Sigma started as a defect reduction effort in
manufacturing and was then applied to other
business processes for the same purpose.
 CUSTOMERS

Total customer satisfaction is the goal of six

sigma ,therefore customer is the focus of six
sigma action in any of processes.
The customer’s needs are to be thoroughly
understood all its various dimensions and
assessment needs to be made about the present
status of satisfaction.
 PROCESSES

The processes leading to customer satisfaction

have to be improved many of them radically .

A study of the process a series of interlinked

activities that lead to the organization goal is
required to be made.
 USES OF SIX SIGMA

It is increases productivity .

It is reduce defects.
It is improve high-level of outgoing qualities.
Sigma improved the standardized methodology across
the organization.
A set of techniques and tools and simplify improvement
efforts.
It’s gives the greater customer satisfaction and
improvement in the “bottom line”.
 DISCRIPTION OF SIX SIGMA

Six sigma will drive of a firm toward achieving

higher levels of customer satisfaction and reducing
operational costs.

Six sigma is robust continuous improvement

strategy and process that include cultural
mythologies such as total quality management
(TQM) process control strategies such as statistical
process control (SPC) and other important
statistical tools.
 COMPANIES NEEDS OF SIX SIGMA

Technological complexities-
The technology of products like computers is such that it
has to be totally defect free .the needs for ”zero defect “ is
acutely felt in this technology advanced times.
Rapid growth of the service industry-
The service industry is much more quality sensitive than
manufacturing .
The reason is the proximity of the customer in service
operations.
It is within the operation itself and is a part of the
process.
 EXAMPLE

Jindal Steel ensures that process metrics and structured

methodology are applied to improvement opportunities that
are directly linked to the organizational strategy.
When practiced as a management system, Six Sigma is a
high performance system for executing business strategy.
Six Sigma is a top-down solution to help organizations:
Align their business strategy to critical
improvement efforts
Mobilize teams to attack high impact projects
Accelerate improved business results
 CONCLUSION

The Six Sigma provides the framework to prioritize resources for

projects that will improve the metrics.
These are three principle of Six Sigma use in business.
1)Six Sigma improves the process performance,
2)decreases variation and maintains
3)consistent quality of the process output.
This leads to defect reduction and improvement in profits, product
quality and customer satisfaction.
Six Sigma methodology is also used in many Business Process
Management initiatives these days.
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