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TQM Six Sigma
TQM Six Sigma
S IG
SIX
1
Six Sigma Means 3.4
Defects in 1,000,000 -
MOTOROLA
Six Sigma is a business concept that
answers customer’s demand for high
quality and Defect-free Business process.
Six Sigma was born in Motorola and
developed by Mikel J. Harry.
Motorola won Malcolm Baldridge Quality
Award.
Six Sigma is carried out as projects and
mostly uses DMAIC method
2
Eg: Godrej -G E Assembly
Plant
Defective Components were coming at the
rate of 3,00,000 for one Million Parts.
3
PROCESS CAPABILITY
Process capability is simply a measure of how good a
metric is performing against established standard(s).
Upper
UpperandandLower
LowerStandards
Standards Single
SingleStandard
Standard
(Specifications)
(Specifications) (Specification)
(Specification)
Spec
Spec Spec
Spec Spe
Spe
(Low
(Low (Upp
(Upp cc
er)
er) er)
er)
Out of
Spec In Spec Out of In Out of
Spec Spec Spec
Probability
Probab Probabi
4 ility lity
CONCEPT OF SIX SIGMA
Process Total Amount Typical
Variability Cp Outside Limits Action to be
taken
2σ 0.67 4.56 % Heavy Process
(45,500 ppm) Control, Sorting
rework, Etc.
3σ 1.0 2700 ppm Heavy process
Control,
Inspection
4σ 1.33 64 ppm Reduced
Inspection,
Selected use of
5
USL LSL Control Charts
CONCEPT OF SIX SIGMA
5.Business
4.Developing Process to 6.Conducting
Monitoring Be improved Six Sigma
Systems
are chosen Projects
8 Continuous Improvement
Six Sigma - Three Dimensions
Driven by
customer
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt
••••••••••
Upper/Lower
specification
• •
••• •
•
•••••••
••••••
limits
Organization Tools
•
Regression
35 100%
30
80%
25
20 60%
15 40%
10
20%
5
Process variation 0 0%
Enabled by quality
L K A F B C G R D
team.
Frequency Cumulative Frequency
Pareto Chart
9
DMAIC PROCESS
Define Measure
DMAIC Analyze
Control
Improve
10
DEFINE
Set Baseline
Collect Data
Create Forms
Test Conclusions
13
IMPROVE
Create Improvement Ideas
Create Models
Experiment
Set Goals
Assess Effectiveness
15
ENIGMA OF SIX SIGMA
+3 +2 +1 Six Sigma -1 -2 -3
6σ
16
SIX SIGMA BENCHMARKS
Restaurant Bills
Prescription writing
100K Payroll processing
Order write-up
1K Material lot
Rejected
10 Air flight
Fatality Rate
Best in class
(0.25ppm)
1 17 2 3 4 5 6 7
Table 1: Companies And The Year They Implemented Six Sigma
GE (NYSE:GE) 1995
18
Table 2: Six Sigma Cost And Savings By Company
% Revenue % Revenue
Year Revenue ($B) Invested ($B) Savings ($B)
Invested Savings
Motorola
1986-
356.9(e) ND - 16 1 4.5
2001
Allied Signal
1998 15.1 ND - 0.5 2 3.3
GE
1996 79.2 0.2 0.3 0.2 0.2
1997 90.8 0.4 0.4 1 1.1
1998 100.5 0.5 0.4 1.3 1.2
1999 111.6 0.6 0.5 2 1.8
1996-
382.1 1.6 0.4 4.4 3 1.2
1999
Honeywell
1998 23.6 ND - 0.5 2.2
1999 23.7 ND - 0.6 2.5
Key:
$B = $ Billions, United States
(e) = Estimated, Yearly Revenue 1986-1992 Could Not Be Found
ND = Not Disclosed 19
Note: Numbers Are Rounded To The Nearest Ten
The Quality Team
Master Black Belt --Thought
ThoughtLeadership
Leadership
--Expert
Experton
onSix
SixSigma
Sigma
--Mentor
MentorGreen
Greenand
andBlack
BlackBelts
Belts
--Backbone
Backboneof ofSix
SixSigma
SigmaOrg
Org
Black Belt Black Belt --Mentor
MentorGreen
GreenBelts
Belts
--Full
Fulltime
timeresource
resource
--Deployed
Deployedto tocomplex
complexor
or“high
“high
risk”
risk”projects
projects
Green Belt
Green Belt
--Part
Parttime
timeor
orfull
fulltime
timeresource
resource
Green Belt
--Deployed
Deployedtotoless
lesscomplex
complex
projects
projectsin
inareas
areasof
offunctional
functional
expertise
expertise
20
Scope of Six Sigma
Manufacturing
Service Industries
Hospitals
Insurance
Call Centre
21
22