SixSigma Presentation
SixSigma Presentation
SixSigma Presentation
PRESENTED
BY
SUDHAKARA REDDY
SONIKA MISHRA
JYOTI RANI
PRIYANKO CHAKRABORTY
08/08/10 1
What is the Six Sigma Philosophy?
☛ We don’t know what
☛ If we can’t measure
it, we really don’t
know much about it.
Six Sigma
08/08/10
Focus
Focus on
on the
the Customer!
Customer! 2
What Is Six Sigma? Process Philosophy
?
Sigma is a measure of
“goodness”
Know What’s Important
to the Customer (CTQ)
Reduce Defects (DPMO)
Center Around Target (Mean)
Reduce Variation (Standard
Deviation)
08/08/10
GE Company Proprietary
3
November 1998
‘Six Sigma’ companies
Companies who have successfully adopted
‘Six Sigma’ strategies include:
08/08/10 4
Six Sigma Definitions
• Business Definition
A break through strategy to significantly
improve customer satisfaction and
shareholder value by reducing variability in
every aspect of business.
• Technical Definition
A statistical term signifying 3.4 defects per
million opportunities.
08/08/10 5
Big Question???
Is it a Goal, a Measure, a Process, or a Tool?
Yes
08/08/10 6
The six sigma
organization.
The six sigma team has five levels
of hierarchy
08/08/10 7
General Electric
• In 1995 GE mandated each employee to
work towards achieving 6 sigma
• The average process at GE was 3 sigma in
1995
• In 1997 the average reached 3.5 sigma
• GE’s goal was to reach 6 sigma by 2001
• Investments in 6 sigma training and
projects reached 45MUS$ in 1998, profits
“the most
increased by important
1.2BUS$ initiative
GE has ever undertaken”.
Jack Welch
Chief Executive Officer
General Electric
08/08/10 8
Example : Dabbawalas
08/08/10 9
Sigma Defects Per Million Rate of
Level Opportunities Improvement
1σ 690,000
2σ 308,000 2 times
3σ 66,800 5 times
4σ 6,210 11 times
5σ 230 27 times
6σ 3.4 68 times
08/08/10 10
Possible applications
•Human Resources: reduce the number of requisitions
unfilled after 30 days.
08/08/10 11
DMAIC
It is an approach undertaken to improve existing business process
08/08/10 12
Process
1.Define high-level project goals and the current process.
2.Measure key aspects of the current process and collect relevant data.
4.Improve the process based upon data analysis using various tools
5.Control to ensure that any deviations from target are corrected before
they result in defects.
08/08/10 13
THANK YOU
08/08/10 14