Six Sigma - The Initiative

What is Six Sigma?
Six Sigma - The Initiative

Six Sigma - a methodology that provides an insight into
the products/processes and enables to improve or redesign these.
All these Products/Processes are selected based on issues in
relation to increasing market penetration or improving
organizational speed or reducing cost of doing business.
A Language for All
Six Sigma is a culture and globally understood language

Six Sigma applies to all facets of the business and business processes:
SERVICE
DESIGN
ADMIN.
PURCH.
Six Sigma
Methods
QA
MFG.
MAINT.
The Focus of Six Sigma
The focus
Y=
f (X)
To get results, should we focus our behavior on the Y or X ?

Y
X1 . . . XN
Dependent
Independent
Output
Input-Process
Effect
Cause
Symptom
Problem
Monitor
Control
If we are so good at X, why do we constantly test and inspect Y ?
SQC&OR
Unit,Y,
Indian
Focus on X rather
than
asStatistical
done historically
Institute
PROCESS DEFINITION
A set of linked or related activities that take

inputs and transform them into outputs with the
purpose of producing a product, information or
service for external or internal customers.
Transformation
Process Approach
Inputs
Correct
Process/
Activities
Correct
Output
Check &
Compare
Process Definition
Inputs
Flow through the process.
Are Added value to.
Get converted into outputs.
Resources
Are used during processing.
May or may not get
consumed.
Are not processed
themselves.
Process Steps
Sequential steps that
convert inputs into outputs.
Special attention to value
adding steps.
Outputs
Results of the process.
Desired effect.
Measurement & Improvement
Who are the customers of your Process?

(Internal or External)
Are Your Customers Satisfied?
What is the level of quality of your product as it
leaves your area?
How do you Measure?
WHAT YOU CANNOT MEASURE,

YOU CANNOT IMPROVE...
Process Management
WHAT IS PROCESS MANAGEMENT?

It challenges us to:
Do only those things that provide value added: from
the Customers point of view.
Move from managing functions to managing work
processes.
Move from managing results (outcomes) to managing the
processes that produces them.
Move from piece meal problem solving to system-wide
improvement.
Process Management 2
PROCESS MANAGEMENT?
Is a system for:
Identifying the critical business processes of an enterprise.
Focusing on customer requirements to reduce work in
process and decisions in process.
Understanding the inputs and outputs of cross-functional

processes and how they are transformed.
Using process speed and flexibility as a competitive
weapon.
Process Management 3
THE GOAL OF PROCESS MANAGEMENT IS

TO MAKE OUR BUSINESS PROCESSES...
HIGHLY EFFECTIVE = Consistent Customer
Satisfaction
HIGHLY EFFICIENT = Best Speed, Best Cost, No Waste

HIGHLY ADOPTABLE = Responsive To Changing
Environments
Knowledge foundation
Knowledge is the Foundation

When you can measure what you are speaking about, and express
it in numbers, you know something about it; but when you cannot
express it in numbers, your knowledge is of a meager and
unsatisfactory kind. It may be the beginning of knowledge, but you
have scarcely, in your thoughts, advanced to the state of science.
Lord Kelvin
Risk
of
Loss
Extent of Knowledge
(Derived from Observation & Measurement)
Directions of Knowledge
Direction of knowledge
Art
Discipline
Chaos
Science
Knowledge
Fire Fighting
Good Decisions
Waste
Where Are Your Processes Today?
Quality
Responsibilities
QUALITY
RESPONSIBILITIES
As a Customer
As a Processor
Transmit needs to
suppliers
Plan process to meet

customer needs
Provide feedback
to suppliers
Obtain feedback
from suppliers
As a Supplier
Know who are

your customers
Understand needs
Control process to
of customers
meet customer needs Avoid creating
problems for
Improve process
customers
based on customer
Obtain feedback
feedback
from customers
68-95-99.7 RULE
THE 68-95-99.7 RULE OF
NORMAL CURVE
CENTERING OF PROCESS
SPC Ratios Used
Target
LSL
USL
Process Capability
Design Tolerance
Maximum allowable range of characteristic

Normal variation of process
Specificat ion Tolerance
USL - LSL
6
6
Cp
This compares the requirement of the process output vis-a-vis the inherent
variability of the process. Higher value than 1 implies that the process has
got the capability to give the product within the set limits.
Process Capability Index - Cp
Process capability Index
The numerator is
Specification Tolerance
Cp =
Maximum Allowable Range of Characteristic

Normal Variation of Process
The denominator is Natural Process Limit
Process Performance Index - Cpk
Process Capability Index
Cpu
USL - This gives us the positioning of the mean vis-a-vis

3
the USL and the relationship between the two.
Cpl
LSL This gives us the positioning of the mean vis-a-vis

3
the LSL and the relationship between the two.
Cpk -
Process Performance Index. This is important
Cpk
= Minimum of (Cpu and Cpl) ; for bilateral tolerances

= Cpu ;for unilateral tolerance on upper side i.e..
= Cpl ;for unilateral tolerance on lower side i.e..
X
X
+Y
-O
+O
-Y
Process Capability Index
PROCESS CAPABILITY INDICES

USL -
Cpk =
USL - =
0.33 x 3 =
USL - =
1.5 x 3 =4.5
USL - =
0.50 x 3 =1.5
USL - =
1.67 x 3 =5
USL - =
0.67 x 3 =2
USL - =
1.83 x 3 =5.5
USL - =
1.0 x 3 =3
10 USL - =
USL - =
1.17 x 3 =3.5
11
USL - =
2.33 x 3 =7
USL - =
1.33 x 3 =4
12 USL - =
2.67 x 3 =8
2 x 3 =6
What makes six sigma different
What Makes Six Sigma Different?

Infrastructure
Methodology & Tools
Data Driven
Statistically Validated Causes/Family of Causes
Use Of Software tools

Linkage with Business results
Best People Dedicated to Defect Reduction
Project Focused
WHERE IS THE DIFFERENCE ?

Six-Sigma s a methodology
If you dont wish, Dont treat as an Initiative by itself
Some people always couple the word six-sigma with use of
statistical tools or cost reduction drive or only a
measurement gimmick
Thats a mistake.
Six-Sigma is a set of principles that accelerate the speed of
improvement process across the enterprise. It also provides
much needed confidence in the solutions that emerge out of
the project studies.
Six-Sigma maturity grid

High
The degree
to
which
positive
conditions
for 6 Sigma
success
exist in an
organisation
Low
Score 4-5; world-class; 6 Sigma is in the DNA; its

the way we work; order of magnitude payback
4
Score 3-4; cultural transformation beginning but may
take longer; payback significant
3
2
Score 2-3; significant tactical results, but 6 Sigma

remains just a programme but normal payback
Score 1-2; some tactical results ; 6 Sigma

1 will probably die; we only get our costs back.
Score 1 or less; change will fail; costs
of training & consultancy will be lost
0
The likely outcome
Where are You?
Why are Most Companies stay at 3-4 Sigma Level?

Past success has bred arrogance
B
A
R
R
I
Most
E
companies R
3 sigma
Dependence on finding and fixing
Reliance on trial and error

Rewarding fire-fighting behavior
Little focus on measurements
Functional silos inhibit collaboration
Lets see what it can do for us!
4 sigma
5 sigma
SQC&OR Unit, Indian Statistical

Institute
6 sigma
Leap toward Operational Excellence

Whats needed to make the leap?
Conviction in the opportunity
Most
companies
3 sigma
B
A
R
R
I
E
R
Belief in the methodology,

Lets make it a success
Openness to challenge status quo

New skills, tools, and information
New behaviors for management
4 sigma
5 sigma
SQC&OR Unit, Indian Statistical

Institute
6 sigma
Support! different situations by specific tools

tools
There is nothing so useless as doing efficiently

that which should not be done at all.
Peter F. Drucker

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What is Six Sigma?

Six Sigma - The Initiative

A Language for All

Six Sigma is a culture and globally understood language

The Focus of Six Sigma

To get results, should we focus our behavior on the Y or X ?

A set of linked or related activities that take

Measurement & Improvement

Who are the customers of your Process?

WHAT YOU CANNOT MEASURE,

WHAT IS PROCESS MANAGEMENT?

Understanding the inputs and outputs of cross-functional

THE GOAL OF PROCESS MANAGEMENT IS

HIGHLY EFFICIENT = Best Speed, Best Cost, No Waste

Knowledge is the Foundation

Where Are Your Processes Today?

Plan process to meet

Know who are

THE 68-95-99.7 RULE OF

SPC Ratios Used

Maximum allowable range of characteristic

Process Capability Index - Cp

Process capability Index

Maximum Allowable Range of Characteristic

The denominator is Natural Process Limit

Process Performance Index - Cpk

Process Capability Index

USL - This gives us the positioning of the mean vis-a-vis

LSL This gives us the positioning of the mean vis-a-vis

Process Performance Index. This is important

= Minimum of (Cpu and Cpl) ; for bilateral tolerances

Process Capability Index

PROCESS CAPABILITY INDICES

What makes six sigma different

What Makes Six Sigma Different?

Use Of Software tools

WHERE IS THE DIFFERENCE ?

Six-Sigma maturity grid

Score 4-5; world-class; 6 Sigma is in the DNA; its

Score 2-3; significant tactical results, but 6 Sigma

Score 1-2; some tactical results ; 6 Sigma

Why are Most Companies stay at 3-4 Sigma Level?

Dependence on finding and fixing

Reliance on trial and error

SQC&OR Unit, Indian Statistical

Leap toward Operational Excellence

Belief in the methodology,

Openness to challenge status quo

SQC&OR Unit, Indian Statistical

Support! different situations by specific tools

There is nothing so useless as doing efficiently

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