six sigma

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Presented by Murali.N


Origin Six Sigma originated as a set of practices designed to improve manufacturing process and eliminate defects, but its application was subsequently extended to other types of business processes as well. Six Sigma is a business management strategy originally developed by Motorola in 1986. Six Sigma became well known after Jack Welch made it a central focus of his business strategy at General Electric in 1995, and today it is used in different sectors of industry.

Meaning :

Meaning Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes .


objectives On Project cost savings By focusing on project cost savings, a company can determine the number of projects it needs to complete to save a specific dollar amount Projects are selected for potential reductions in fixed and/or variable costs, and not necessarily for their effect on the root drivers of process capability This is a more limited approach, and will likely do little to spread Six Sigma throughout the organization

Focus 2: On Deliverable:

Focus 2: On Deliverable Identify the product family or system that is the greatest cause of poor customer satisfaction in a product or service that is important to a company's overall strategy High warranty costs, for example, can signal products that might benefit from the Breakthrough Strategy This kind of focus requires that companies examine a number of processes that contribute to the product or service Companies should be wary of selecting projects that focus solely on products. Focusing on problems such as high warranty returns and customer complaints will highlight a product's symptoms but not the processes that create the symptoms A management system that requires regular system audits

Focus 3: Standardize best-in-class management system practices : :

Focus 3: Standardize best-in-class management system practices : Standardization at the operations level is no different from standardization at the business level Once the business has uncovered a best in-class management practice, it should seek to standardize it and transfer the knowledge to all relevant sectors within the business The best-in-class practices of other businesses can be investigated and applied, allowing the company to leapfrog its way to a higher retention rate Once a company has standardized a particular Six Sigma practice, it must integrate the practice into the fabric of its operations, reinforcing it through a reward and recognition systems

4: Integrate standardized six sigma practices into policies and procedures ::

4: Integrate standardized six sigma practices into policies and procedures : Integration at the operations level is no different from what takes place at the business level Once a Six Sigma practice is standardized, it must be integrated into the fabric of the operations Practices become institutionalized when their cross-applicability is interwoven into operating policies and procedures and then reinforced through reward and recognition systems


Methods DMAIC The DMAIC project methodology has five phases: D efine the problem, the voice of the customer, and the project goals, specifically. M easure key aspects of the current process and collect relevant data A nalyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

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I mprove or optimize the current process based upon data analysis using techniques such as design of experiments poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. C ontrol 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, and continuously monitor the process.

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IT M&S Service Purchase Mgmnt Quality Deprt Administration HRM Design Production Six Sigma Methods

Implementation roles :

Implementation roles One key innovation of Six Sigma involves the "professionalizing" of quality management functions. Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a separate quality department. Formal Six Sigma programs adopt a ranking terminology (similar to some martial arts systems) to define a hierarchy (and career path) that cuts across all business functions. Six Sigma identifies several key roles for its successful implementation . Executive Leadership includes the CEO and other members of top management. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.

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Champions take responsibility for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentors to Black Belts. Master Black Belts , identified by champions, act as in-house coaches on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, they spend their time on ensuring consistent application of Six Sigma across various functions and departments. Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities, operating under the guidance of Black Belts.

Advantages : :

Advantages : Six Sigma is driven by the customer and thus aims to achieve maximum customer satisfaction and minimizing the defects. It targets the customer delight and new innovative ways to exceed the customer expectations. Implementation of Six Sigma methodology leads to rise of profitability and reduction in costs. Thus improvements achieved are directly related to financial results. Six Sigma is successfully implemented in virtually every business category including return on sales, return on investment, employment growth and stock value growth. Six Sigma targets Variation in the processes and focuses on the process improvement rather than final outcome. Six Sigma is prospective methodology as compared to other quality programs as it focuses on prevention on defects rather than fixing it.

Disadvantages :

Disadvantages Applicability of Six Sigma is being argued among the Six Sigma critics. They opined that the quality standards should be according to specific task and measuring 3.4 defects per million as standard leads to more time spent in areas which are less profitable. Six Sigma gives emphasis on the rigidity of the process which basically contradicts the innovation and kills the creativity. The innovative approach implies deviations in production, the redundancy, the unusual solutions, insufficient study which are opposite to Six Sigma principles. Six Sigma implementation constantly require skilled man force. Thus control and employee dedication are hard to accomplish if its not implemented regularly. (5)    While converting the theoretical concepts into practical applications there are lot to real time barriers which needs to be resolved.

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