A

Audit course Report

On

“Six Sigma”

Submitted to
PROF.S.R.KHANDE

Department of Electronics and Telecommunication

Sinhgad Institute of Technology and Science, Narhe, Pune-41

By

Atharva Kolhe

TE

E&TC

Roll no. 3401057

(2023-2024)
 SINHGAD TECHNICAL EDUCATION SOCIETY’S
SINHGAD INSTITUTE OF TECHNOLOGY AND SCIENCE NARHE, Pune
411041

DEPARTMENT OF ELECTRONICS AND

TELECOMMUNICATIONS ENGINEERING

CERTIFICATE

This is to certify that Audit Course V work entitled “Six Sigma”Was successfully carried by
Atharva Kolhe.In the partial fulfilment of the under graduate degree course in Third Year
E&TC Engineering, in the Academic Year 2023-2024 prescribed by the Savitribai Phule Pune
University.

Prof. S.R.Khande Dr. V . M. Rohokale

Coordinator Head,
Department of Electronics and Department of Electronics and
Telecommunications Engineering Telecommunications Engineering

Dr. S. D. Markande
Principal,
SINHGAD INSTITUE OF TECHNOLOGY and SCIENCE, NARHE – 41
Introduction to Six Sigma
An overview of Six Sigma methodology and its impact on efficiency and quality in organizations. This
presentation will cover the key principles and tools used in Six Sigma to drive process improvement and reduce
defects. Six Sigma is a systematic methodology aimed at improving processes and reducing defects or errors to
near-perfect levels. It relies on data-driven approaches and statistical analysis to identify and eliminate variations
in processes, leading to increased efficiency, quality, and customer satisfaction. The term "Six Sigma" refers to a
statistical measure of a process's performance, indicating how many defects occur per million opportunities. The
goal is to achieve a level of Six Sigma, meaning only 3.4 defects per million opportunities. The methodology
involves five phases: Define, Measure, Analyze, Improve, and Control (DMAIC), which guide teams through the
process improvement journey.

Six Sigma is a disciplined and data-driven approach widely used in project management to achieve process
improvement and minimize defects. It provides a systematic framework to identify and eliminate variations that
can impact project performance.The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for
measuring process deviation from the process mean or target. "Six Sigma" comes from the bell curve used in
statistics, where one Sigma symbolizes a single standard deviation from the mean. If the process has six Sigmas,
three above and three below the mean, the defect rate is classified as extremely low.

Key Six Sigma Tools

An overview of essential Six Sigma tools such as SIPOC (Suppliers, Inputs, Process, Outputs, Customers),
Fishbone Diagrams, and Control Charts. Understanding how these tools aid in process optimization and
defect reduction.
DMAIC Methodology

According DMAIC (Define, Measure, Analyze, Improve, Control) is the key methodology used in Six Sigma for
process improvement. Each phase involves specific activities aimed at identifying and eliminating defects.
DMAIC (Define, Measure, Analyze, Improve, Control) is the key methodology used in Six Sigma for process
improvement. Each phase involves specific activities aimed at identifying and eliminating.

DMAIC stands for Define, Measure, Analyze, Improve, and Control. It's a structured, data-driven approach used
in Six Sigma methodology for process improvement.

1. Define:
Problem Definition: Clearly articulate the problem or opportunity for improvement that the project aims to
address. This involves understanding the impact of the problem on stakeholders and the organization.
Project Goals: Define specific, measurable goals that the project aims to achieve. These goals should be aligned
with the organization's strategic objectives.
Scope: Determine the boundaries of the project, including the processes, departments, or areas that will be
included.
Stakeholder Analysis: Identify and engage key stakeholders who will be affected by or can contribute to the
project.

2. Measure:
Process Mapping: Map out the current process to understand how it operates and where potential issues may
arise.
Data Collection: Identify relevant data points and collect data to measure the current performance of the process.
This may involve using tools such as check sheets, data collection plans, or automated data collection systems.
Measurement System Analysis: Assess the reliability and accuracy of the measurement systems used to collect
data. This ensures that the data collected is valid and reliable.
Baseline Performance: Establish baseline performance metrics to quantify the current state of the process and
identify areas for improvement.
 3. Analyze:
Root Cause Analysis: Use data analysis tools and techniques, such as Pareto charts, fishbone diagrams, and
hypothesis testing, to identify the root causes of process variation or defects.
Data Analysis: Analyze the collected data to identify patterns, trends, and correlations that may contribute to the
problem.
Failure Mode and Effects Analysis (FMEA): Assess the potential failure modes within the process and prioritize
them based on their impact and likelihood.
Identify Opportunities for Improvement: Based on the analysis, identify potential solutions or improvements that
can address the root causes identified.

4. Improve:
Solution Development: Develop and evaluate potential solutions to address the root causes identified in the
Analyze phase. This may involve brainstorming, experimentation, and piloting different solutions.
Implementation Planning: Develop a detailed plan for implementing the selected solutions, including timelines,
responsibilities, and resource requirements.
Pilot Testing: Test the selected solutions on a small scale to assess their effectiveness and identify any potential
issues before full implementation.
Implementation: Implement the selected solutions and make any necessary adjustments to ensure successful
deployment

5. Control:
Standardization: Establish standard operating procedures (SOPs) and guidelines to ensure consistency and
reliability in the process.
Monitoring and Measurement: Implement monitoring systems to track key performance indicators (KPIs) and
verify that the improvements made during the Improve phase are sustained.
Control Plans: Develop control plans to outline the actions and measures that will be taken to maintain the gains
achieved through process improvement.
Training and Communication: Provide training to employees and stakeholders on the new processes, procedures,
and controls. Ensure effective communication to maintain awareness and alignment throughout the organization.
Challenges and Considerations

While Six Sigma offers numerous benefits, organizations may face challenges in terms of cultural resistance,
resource allocation, and sustaining improvements. It's important to address these factors for successful the
implementation. While Six Sigma offers numerous benefits, organizations may face challenges in terms of
cultural resistance, resource allocation, and sustaining improvements. It's important to address these factors for
successful implementation

1. Cultural Resistance:
Overcoming resistance to change is crucial. This involves effectively communicating the benefits of Six Sigma,
addressing concerns, and involving employees in the process.Leadership should champion the cultural shift
towards data-driven decision-making and continuous improvement.

2. Resource Allocation:
Organizations need to allocate resources for training employees in Six Sigma methodologies (Green Belt, Black
Belt, etc.), providing necessary tools and software, and supporting improvement projects.Budgetary constraints or
competing priorities may hinder resource allocation.

3. Leadership Commitment:
Leadership must visibly support and actively participate in Six Sigma initiatives to demonstrate its importance to
the organization.Lack of leadership commitment can lead to projects stalling or failing to achieve desired results.
 4. Change Management:
Change management strategies, such as communication plans, stakeholder engagement, and addressing concerns
proactively, are essential.Employees need to understand why changes are necessary and how they will benefit
from them.

5. Data Availability and Quality:

Organizations must ensure that relevant data is collected, accessible, and of sufficient quality for analysis.This
may require improving data collection processes, investing in data management systems, and addressing data
integrity issues.

6. Integration with Existing Initiatives:

Harmonizing Six Sigma with existing improvement initiatives, such as Lean or Total Quality Management
(TQM), requires careful coordination and alignment of goals.Organizations should avoid duplication of efforts
and ensure synergy between initiatives.

7. Training and Skill Development:

Comprehensive training programs are necessary to equip employees with the knowledge and skills required to
participate effectively in Six Sigma projects.Ongoing skill development and support mechanisms, such as
mentoring and coaching, are essential for sustaining momentum.

8. Measurement and Metrics:

Selecting appropriate metrics that align with organizational goals and accurately measure process performance is
critical.Baseline measurements provide a reference point for evaluating improvement efforts and identifying areas
for enhancement.

9. Sustainability:
Establishing a culture of continuous improvement is key to sustaining gains achieved through Six
Sigma.Organizations should institutionalize process improvement methodologies, foster a mindset of innovation,
and regularly review and adapt strategies to evolving circumstances.
Case Studies

1. General Electric (GE):

General Electric (GE) is widely recognized for its successful implementation of Six Sigma across its diverse
business units. Under the leadership of former CEO Jack Welch, GE embraced Six Sigma as a cornerstone of its
business strategy in the 1990s.
One of GE's notable Six Sigma projects focused on improving the manufacturing process for aircraft engines. By
applying Six Sigma methodologies, GE engineers were able to identify and address sources of variation in
engine production, leading to more consistent performance and reduced fuel consumption.
GE's commitment to Six Sigma resulted in significant cost savings, increased customer satisfaction, and
improved operational efficiency across its various divisions.

2. Motorola:
Motorola is credited with pioneering the Six Sigma methodology in the 1980s. The company recognized the
need for a systematic approach to quality management to address defects and variability in its manufacturing
processes.
Motorola's initial goal was to achieve a defect rate of less than 3.4 defects per million opportunities (DPMO),
which became a central tenet of Six Sigma. Through rigorous process improvement efforts and employee
training, Motorola achieved remarkable results, reducing defects and improving product quality.
The success of Motorola's Six Sigma initiative led to widespread adoption of the methodology by other
companies seeking to enhance quality and efficiency in their operations.
3. Toyota:
While Toyota is renowned for its Lean manufacturing principles, the company has also incorporated Six Sigma
methodologies to improve quality and productivity.
Toyota's approach to Six Sigma emphasizes the identification and elimination of waste, variation, and
inefficiency in its production processes. By implementing Six Sigma tools such as DMAIC (Define, Measure,
Analyze, Improve, Control), Toyota has been able to systematically address quality issues and enhance
performance.
One of Toyota's Six Sigma success stories involves the optimization of its vehicle assembly processes. By
applying Six Sigma principles, Toyota has been able to minimize defects, reduce cycle times, and improve
overall manufacturing efficiency.

4. Bank of America:
Bank of America utilized Six Sigma to streamline its mortgage approval process and improve customer
satisfaction. The bank recognized the need to reduce processing times and errors in mortgage applications to
remain competitive in the financial services industry.
By employing Six Sigma methodologies such as process mapping, root cause analysis, and statistical analysis,
Bank of America identified bottlenecks and inefficiencies in its mortgage processing workflow. Through
targeted process improvements and employee training, the bank was able to accelerate the approval process and
minimize errors.
The adoption of Six Sigma resulted in tangible benefits for Bank of America, including increased operational
efficiency, reduced costs, and enhanced customer service.

5. Amazon:
Amazon leveraged Six Sigma to optimize its fulfillment centers and streamline its logistics operations. With a
relentless focus on customer satisfaction and operational excellence, Amazon sought to minimize errors and
delivery times in its order fulfillment process.
By applying Six Sigma principles such as process standardization, error reduction, and continuous improvement,
Amazon was able to enhance the efficiency and accuracy of its fulfillment operations. This included initiatives
to improve picking, packing, and shipping processes.
The implementation of Six Sigma contributed to Amazon's ability to scale its operations rapidly while
maintaining high service levels and meeting customer expectations.
Six Sigma Techniques

The Six Sigma methodology also uses a mix of statistical and data analysis tools such as process mapping and
design and proven qualitative and quantitative techniques, to achieve the desired outcome.

1. Brainstorming
Brainstorming is the key process of any problem-solving method and is often utilized in the "improve" phase of
the DMAIC methodology. It is a necessary process before anyone starts using any tools. Brainstorming involves
bouncing ideas and generating creative ways to approach a problem through intensive freewheeling group
discussions. A facilitator, who is typically the lead Black Belt or Green Belt, moderates the open session among a
group of participants.

2. Root Cause Analysis/The 5 Whys

This technique helps to get to the root cause of the problems under consideration and is used in the "analyze"
phase of the DMAIC cycle.In the 5 Whys technique, the question "why" is asked, again and again, finally leading
up to the core issue. Although "five" is a rule of thumb, the actual number of questions can be greater or fewer,
whatever it takes to gain clarity.
 3. Voice of the Customer

This is the process used to capture the "voice of the customer" or customer feedback by either internal or external
means. The technique is aimed at giving the customer the best products and services. It captures the changing
needs of the customer through direct and indirect methods. The voice of the customer technique is used in the
"define' phase of the DMAIC method, usually to further define the problem to be addressed.

4. The 5S System

This technique has its roots in the Japanese principle of workplace energies. The 5S System is aimed at removing
waste and eliminating bottlenecks from inefficient tools, equipment, or resources in the workplace. The five steps
used are Seiri (Sort), Seiton (Set In Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).

5. Kaizen (Continuous Improvement)

The Kaizen technique is a powerful strategy that powers a continuous engine for business improvement. It is the
practice continuously monitoring, identifying, and executing improvements. This is a particularly useful practice
for the manufacturing sector. Collective and ongoing improvements ensure a reduction in waste, as well as
immediate change whenever the smallest inefficiency is observed.

6. Benchmarking

Benchmarking is the technique that employs a set standard of measurement. It involves making comparisons with
other businesses to gain an independent appraisal of the given situation. Benchmarking may involve comparing
important processes or departments within a business (internal benchmarking), comparing similar work areas or
functions with industry leaders (functional benchmarking), or comparing similar products and services with that
of competitors (competitive benchmarking).

7. Poka-yoke (Mistake Proofing)

This technique's name comes from the Japanese phrase meaning "to avoid errors," and entails preventing the
chance of mistakes from occurring. In the poka-yoke technique, employees spot and remove inefficiencies and
human errors during the manufacturing process.

8. Value Stream Mapping

The value stream mapping technique charts the current flow of materials and information to design a future
project. The objective is to remove waste and inefficiencies in the value stream and create leaner operations. It
identifies seven different types of waste and three types of waste removal operations.
 Conclusion:

In conclusion, Six Sigma offers a powerful framework for organizations to achieve operational excellence
and maximize efficiency. By embracing the principles and methodologies of Six Sigma, businesses can drive
continuous improvement and deliver exceptional value to customers.

References:

1. Lean Six Sigma: Combining Six Sigma with Lean Speed" by Michael L. George

2. Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations" by
Mikel J. Harry and Richard Schroede

3. Six Sigma for Dummies" by Craig Gygi, Bruce Williams, and Neil DeCarlo