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Page 1: 6 Sigma= 3.4 Defects Per Million - Asia Pacific - Indian ...apjor.com/files/1390676851.docx · Web viewThe Six Sigma definition from Motorola University states: “Invented by Motorola,

Title of the Study: Impact of Implementing Six-Sigma on the workplace efficiency in Service Industries in Karnataka.

Abstract: Six-Sigma requires considerable effort and time to achieve. Six-Sigma is not simply a way to do “quality” or “customer service”; it is actually a way to manage the business differently. Six-Sigma is a disciplined approach for dramatically reducing defects and producing measurable financial results.

The focus of Six Sigma is to reduce the variation in quality measures over time. The overall Six Sigma process is used to take the results of measures, interpret their meaning and determine improvements to be made to the product or process based on this feedback. The key principles of Six Sigma of identifying key performance metrics, collecting and analyzing data on an ongoing basis, and the use of those data as a management tool for continuous improvement of work environments, however, remain central to the present approach.

Since the success of the Indian Companies rests on their manufacturing and supplying quality products to their customers, this research has been made to study the impact of implementing Six Sigma on the workplace efficiency in manufacturing and service industry in Karnataka and also the study will be undertaken to reveal the hurdles and challenges faced by the industry in implementing Six Sigma in their respective companies. Key Words: Six-Sigma, DMAIC, TQM, Team work, leadership, employee involvement, Shared Vision, Process Capability, Defect. Black Belt, Green Belt.

Introduction: Six-Sigma Six Sigma is best described as a journey-a journey for business professionals who are truly committed to improve productivity and profitability. Six Sigma is not theoretical; it is an active, hands-on practice that gets results. In short you do not contemplate Six Sigma; you do it. And doing it has proven to be the fast track to vastly improve the bottom line. “Six Sigma is an organized and systematic method for strategic process improvement and new product and service development that relies on statistical methods and the scientific method to make dramatic reductions in customer defined defect rates.” 1

Definition of Six-SigmaThe Six Sigma definition from Motorola University states: “Invented by Motorola, Inc. in 1986 as a metric for measuring defects and improving quality. Since then, it has evolved to a robust business improvement methodology that focuses an organization on customer requirements, process alignment, analytical rigor and timely execution”2. Some scholars and

1 Linderman K. et al. - Six Sigma: A goal-theoretic perspective. Journal of Operations Management, 2003, Vol,21,Pp193-2032 Motorola (2008) Motorola University Six Sigma Dictionary. Available online via http://www.motorola.com/content.jsp?globalObjectId= 3074- 5804. Accessed May 26, 2008

Main Author S. RAJKUMARResearch scholar Department of Commerce Bangalore University [email protected] +91 98448 13126

Co-Author Dr. S. RameshDean, PG Department of Commerce Mount Carmel College Bangalore – 560 052

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practitioners have attempted to describe Six Sigma in one or two definitions.3 However, many have concluded that there are at least three definitions4. Six Sigma can be viewed as a metric, a mindset, and a methodology.The first logical and commonly heard definition for Six Sigma is that it is a statistical expression – a metric.5 The lowercase Greek symbol σ (sigma) is the metric or fundamental statistical concept that denotes a population’s standard deviation and is a measure of variation or dispersion about a mean.As a second definition, Six Sigma is considered an organizational mindset that emphasizes customer focus and creative process improvement.6 “The philosophy of Six Sigma recognizes that there is a direct correlation between the number of product defects, wasted operating costs, and the level of customer satisfaction.”7 With this mindset, individuals are prepared to work in teams in order to achieve Six Sigma and its ultimate goal of reducing process variation to no more than 3.4 defects per million opportunities.8 Six Sigma is a methodology, a statistical analysis tool and a management system designed to streamline business processes by eradicating defects. The implementation of Six Sigma aims to improve and sustain quality, eliminate waste and raise profits. This is achieved by the: Reduction of variations in processes Measuring, analysis, improvement and control of processes Involvement and dedication from the whole organization including top level

management.

Processes are measured and defects recorded, the aim of Six Sigma is to operate processes with less than 3.4 defects per one million opportunities. The implementation of these processes can enable vast savings for the organization.

Six-Sigma is a method for improving organizational processes that goes beyond quality assurance or quality control.9 In fact, Six Sigma is closer to the concept of Total Quality Management (TQM). Six-Sigma implementation includes most of the TQM practices10. Six Sigma is developed over five main TQM components: customer focus, employee involvement, continuous improvement, leadership and fact-based decision making11. The three basic TQM principles; customer focus, continuous improvement and teamwork are included in the principles as the basis of the six sigma philosophy: customer focus, process improvement and/or new product development, and teamwork12. 3 F. W. Breyfogle et al., Implementing Six Sigma: Smarter Solutions Using Statistical Methods, John Wiley & Sons, Inc., New York, 19994 F. W. Breyfogle et al., Implementing Six Sigma: Smarter Solutions Using Statistical Methods, John Wiley & Sons, Inc., New York, 19995 Dambolena, I. & Rao, A.: What is Six Sigma anyway? Quality, 1994, Vol, 33(11), Pp10.6 Hahn, G. J., et al,: The evolution of Six Sigma. Quality Engineering, 2000, Vol,12(3), Pp 317-326.7 Mikel J. Harry - Six Sigma: A breakthrough strategy for profitability. Quality Progress, May, 1998, Vol,31(5), Pp.60-648 Harry, M.J. ‘A new definition aims to connect quality performance with financial performance’, Quality Progress, 2000, Vol. 33, January, Pp.64- 669 Mikel J. Harry - Six Sigma: A breakthrough strategy for profitability, Quality Progress, 1998, Vol,31(5), Pp.60-6410 Lucas, M.L., “The essential six sigma: how successful six sigma implementation can improve the bottom line”, Quality Progress, 2002, Vol. 35 No. 1, Pp. 2-32.11 Green . “Six sigma and the revival of TQM”, Total Quality Management & Business Excellence, 2006, Vol. 17 No. 10,Pp. 1281-612 Dean, J.W. Jr et al, “Management theory and total quality: improving research and practice through theory development”, Academy of Management Review, 1994, Vol. 19 No.

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Six-Sigma ConceptsSix-Sigma ConceptsSix sigma is defined a customer oriented, structured, systematic, proactive and quantitative companywide approach for continuous improvement of manufacturing, services, engineering, suppliers and other business process. It is a statistical measure of the performance of a process or a product. Six Sigma, a statistically-based quality improvement program, helps to improve business processes by reducing the waste and costs related to poor quality, and by improving the efficiency and effectiveness of processes13. Ultimately these measures should lead to improved customer satisfaction and increased profitability14. The company should select and implement specific quality management activities suitable to their situation to increase their production quality15. It measures the degree to which the process deviates from the goals and then takes efforts to improve the process to achieve total customer satisfaction.Six sigma efforts target three main areas:

Improving customer satisfaction Reducing cycle time Reducing defects

Three key characteristics separate six sigma from quality programs of the past: Six Sigma is a customer focused Six Sigma projects produce major returns on investments Six Sigma changes how management operates

6 Sigma= 3.4 Defects Per Million6 Sigma= 3.4 Defects Per MillionSix-Sigma equates 3.4 defects for every million parts made or process transactions carried out. This quality equates to 99.99966% defect free products or transactions. High quality standards do make sense but the cost required to pursue such high standards have to be balanced with benefits gained. The six sigma processes exposes the root causes and then focuses on the improvements to achieve the highest level of quality at acceptable cost. This is essential to achieve and maintain a competitive advantage and high levels of customer satisfaction and loyalty. When we say that a process is at six sigma level, such a process normally yield two instances of non-conformances out of every million opportunities for non-conformances, provided there is no shift in the process average. The same will yield 3.4 instances of non-conformances out of every million opportunities with an expect of 1.5 sigma in the process average. This is considered to be best-in-class quality.

The Way Six Sigma WorksThe driving force behind any Six Sigma project comes from its primary focus-"bringing breakthrough improvements in a systematic manner by managing variation and reducing defects". This requires us to ask tougher questions, raise the bar significantly, and force people to think out of the box and to be innovative. The objective is to stretch and stretch mentally not physically. To make this journey successful there is a methodology(s) to support Six Sigma implementations. The methodology focuses on significant process improvements and requires use of DMAIC. The DMAIC is a process improvement cycle of Six Sigma program as well as an effective problem solving methodology. DMAIC is “the primary framework used to guide Six Sigma

3, Pp. 392-418.13 F. W. Breyfogle et al., Implementing Six Sigma: Smarter Solutions Using Statistical Methods, John Wiley & Sons, Inc., New York, 199914 Antony J, Banuelas R, Six Sigma: A business strategy for manufacturing organizations. Manuf. Eng., 2001, Vol.80 (3), Pp.119- 121

15 Spiegel MVD et al. Measuring Effectiveness of Food Quality Management in the Bakery Sector. Total Qual. Manage., 2006, Vol. 17(6), Pp. 691-708

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projects16”. Six Sigma projects are based on the DMAIC approach and “the role played by DMAIC in gaining the overall success of Six Sigma is equally critical”.17 The representative's meanings of five English letters are as follows:a. Define process goals in terms of key critical parameters (i.e. critical to quality or critical

to production) on the basis of customer requirements or Voice Of Customer (VOC)b. Measure the current process performance in context of goalsc. Analyze the current scenario in terms of causes of variations and defectsd. Improve the process by systematically reducing variation and eliminating defectse. Control future performance of the processa. Identify process goals in terms of critical parameters, industry and competitor

benchmarks, VOC

Objectives of the Research1. To study the extent of six sigma implementation in Karnataka organizations2. To understand the operational dimensions of six sigma implementation3. To understand the hurdles and challenges faced by these companies in six sigma

implementation4. To analyze the benefits reaped by both employees as well as the organization in

implementing Six Sigma5. To study the best practices in Six Sigma implementation6. To recommend strategies for successful implementation of Six Sigma which could

benefit the employees and improve their efficiency

Scope o the StudyThis study is limited to organizations situated in Karnataka only. The present study covers only the samples drawn from the population in Karnataka who are employed in service industries and companies which have adopted and strictly follow the Six Sigma tool for manufacturing and supplying quality products.

Research MethodologyThis section profiles the methodology that has been adopted in the study. It encompasses the type of study adopted, the subjects, instrumentation, data collection procedures and analysis procedures.

Research DesignThe study adopts an exploratory field research approach, using multiple designs (cross section survey and case study design) and multiple data gathering methods (interviews, and questionnaires). Being exploratory in nature the study will be done in two successive phases (cross section survey followed by a case study design). In both the phases’ random sampling method will be used in identifying the prospective subjects.

Data Collection ProcedureThe survey instrument will be administered personally and the respondents will be given sufficient time to complete the questionnaire. Each individual will be informed of the purpose of the questionnaire and will be assured of confidentiality of the responses. Respondents will

16 Brewer PC et al. Using six sigma to improve the finance function: Here are some tips for success. Strat. Finance., 2005, Vol. 85(5), Pp.27-3317 Nilakanta Srinivasan N, and Nair A, DMAIC failure modes, ASQ Six Sigma Forum Mag.,2005, Vol. 4(3), Pp 30-34.

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be encouraged to give constructive suggestions on the last page of the survey instrument if they wished to do so.

Sample FrameManufacturing and services industry is concentrated throughout various parts of Karnataka. First a list of Manufacturing and Service industry will be obtained from Federation of Karnataka Chamber of Commerce and Industry, which will be used to select a few Industries/companies that will be used as a sample frame. Using this list of industries/companies, a group of 20 companies from various sectors will be selected using stratified random sampling. Based on simple random sampling method 20 respondents under different cadres in various industry/company will be chosen and they will form the subjects of the study. The sample size for this study will be 400 consisting of senior Managers, Managers, and executives (Team Leaders) who are working in different departments of the industry/companies in different parts of Karnataka. Care will be taken to ensure adequate representation of various cadres in different industry/company in Karnataka to meet our objectives.

Key Elements for Six Sigma ImplementationThe synthesis of the philosophies, principles, and interventions of the Six Sigma proponents in both software as well as IT industry related studies have yielded six possible variables for the Six Sigma implementation. These variables are:

1. Teamwork2. Shared Vision3. Customer management4. Leadership5. Business operations6. Employee involvement

A structured questionnaire, which exhaustively covered the above variables, was administered to the employees of software companies to elicit first hand information. The data collected were analyzed and necessary inferences were drawn from them.

GRAPH1:SHOWING YEARS OF USE OF SIX-SIGMA IN THEIR ORGANIZATIONS

10%

35%28%

21%

6%01 – 02 YEARS03 – 04 YEARS05 – 06 YEARS07 – 09 YEARSMORE THAN 10 YEARS

INFERENCE: It can be inferred from the above that 35% of the companies in software sector are using Six Sigma in their organization for 03-04 years, 28% use Six Sigma for 05-06 years, 21% use Six Sigma for 07-09 years, 10% of the industry use Six Sigma for 01-02 years and 6% of the industry in software sector use Six Sigma in their organization for more than 10 years.GRAPH-2 : SHOWING WHETHER THEIR ORGANIZATION VIEWS SIX-SIGMA

AS A BUSINESS STRATEGY

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68%

32%

YES

INFERENCE: One can infer from the above that 68% of the software industry where Six Sigma has been implemented views it as a business strategy and 32% of the software industry where Six Sigma has been implemented in their organization do not view it as a business strategy.

TABLE-1: SHOWING THE KMO AND BARTLETT’S TEST RESULTS FOR THE DATA

KMO AND BARTLETT’S TESTKaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.625Bartlett's Test of Sphericity

Approx. Chi-Square211.436

Degree of freedom15

Significant level.0.000

BARTLETT'S TEST OF SPHERICITYBartlett's test of sphericity, developed by Bartlett (1950) is used to test the null hypothesis that the variables in the population correlation matrix are uncorrelated. The observed significance level in Bartlett’s test is 0.000. In this case, it is significant (0.00) and enabled us to reject the null hypothesis. The result explains that the strength of the relationship among variables is strong and is appropriate to reduce the dimensionality of the data. These two tests have given us the confidence to proceed with the analysis.

TABLE No - 2.: SHOWING TEAMWORK IN INDIAN SOFTWARE INDUSTRY IN INDIAN SOFTWARE COMPANIES

SDA D NA A SA Mean S.D

Our Company is organized into permanent production teams

00 27 132 229 92 3.80 0.809

Our Company forms teams to solve problems

00 11 135 222 112 3.91 0.774

In the past three years, many problems have been solved through small group sessions

00 10 161 232 77 3.78 0.73

Supervisors encourage the persons who work for them to exchange opinions and ideas

00 07 125 275 73 3.86 0.673

Supervisors encourage the people who work for them to work as a team

00 03 104 298 75 3.93 0.627

Supervisors frequently hold groups meetings where the people who work for them can really discuss things together

00 02 127 262 89 3.91 0.678

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OVERALL SCORE 3.865 0.715

INFERENCE: It can be inferred from the above that Indian software companies’ supervisors encourage employees who work for them to work as a team, they encourage the employees who work for them to exchange opinions and ideas, and supervisors frequently hold groups meetings where the employees can really discuss things together. These software companies form permanent production teams to solve problems and many problems are solved through small group sessions.

HYPOTHESIS 1: Hypothesis 1HA:Team work in Indian software company improves only when supervisors encourage employees to work as a team.

Null Hypothesis 1H0:Team work in Indian software company does not improve when supervisors encourage employees to work as a team.

Using the following information:X1= 3.865, σ1= 0.715, n1 = 2880X2= 3.93, σ2 = 0.627, n2 = 480

Using Normal Distribution:Standard Error = √σ1

2 + σ22

‘n1 n2

= √(0.715)2 + (0.627)2

2880 480

= 0.0316, (By calculations)Zcal = Difference in mean Standard Error

= 3.93 – 3.865 = 0. 065 0.0316 0. 0316

Z cal = 2.057

Value of Z (from normal distribution table) Ztab = 1.96 at 5% level of significance.Since Zcal > Ztab

Null Hypothesis is rejected and Alternate Hypothesis is acceptedHence, Team work in Indian software company improves only when supervisors encourage employees to work as a team

LEADERSHIPThe success of quality management effort requires strong top management support. What is new in Six Sigma is the systematic mechanism put in place to ensure that leadership team is engaged and Six Sigma stays on the organization’s dashboard. In Six Sigma, senior executives act as champions and they are directly involved in projects. This ensures right projects are selected and receive buy- in from the organization. Black Belts (full-time

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improvement project leaders) are selected not only because of their technical knowledge but also their leadership skills.

TABLE NO.-3: SHOWING LEADERSHIP IN INDIAN SOFTWARE INDUSTRYIN INDIAN IT COMPANIES SDA D NA A SA Mean S.DDefines current business operations 00 00 144 247 89 3.89 0.688Measures current business operations.

00 02 126 238 114 3.97 0.719

Improves current business operations

00 00 38 266 176 4.29 0.603

Controls current business operations

00 03 93 256 128 4.06 0.695

Works with process owners to continuously improve systems and processes

00 02 104 242 132 4.05 0.712

Fosters the development of a common vision, and sets goals and values to achieve the vision

00 00 68 263 149 4.17 0.652

Builds cohesive, results oriented teams committed to the organization

00 00 109 273 98 3.98 0.657

Constantly works to eliminate waste, rework, redundancy or unnecessary

00 00 39 232 209 4.35 0.626

Is proactive in addressing customer concerns, questions and complaints

00 18 151 209 102 3.82 0.804

Customer satisfaction is tracked and reviewed as part of management policies.

00 00 38 252 190 4.32 0.613

OVERALL SCORE 4.09 0.68

INFERENCE: It can be inferred from the above that software companies in India take efforts to improve their current business operations and regularly control their business operations. They constantly work to eliminate waste, rework, redundancy or unnecessary work and are proactive in addressing customer concerns, questions and complaints. These software companies foster the development of a common vision, and set goals and values to achieve that vision and they build cohesive, results oriented teams committed to the organization. They clearly define their current business operations and measure their current business operations regularly. These companies work with their process owners to continuously improve their systems and processes. Software companies in India track and review customer satisfaction as part of their management policies.

HYPOTHESIS TESTING: HYPOTHESIS 2:

Hypothesis 2HA:Leaders in Indian Software Company which clearly define the current business operations of an organization, foster the development of a common vision, and set goals and values to achieve the vision.

Null Hypothesis 4Ho

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Leaders in Indian Software Company which do not clearly define the current business operations of an organization do not foster the development of a common vision, and set goals and values to achieve the vision.

Using the following information:X1= 4.17, σ1= 0.652, n1 = 480X2= 3.89, σ2 = 0.688, n2 = 480

Using Normal Distribution:Standard Error = √σ1

2 + σ22

‘n1 n2

= √(0.652)2 + (0.688)2

480 480

= 0.044, (By calculations)Zcal = Difference in mean Standard Error

= 4.17 – 3.89 = 0. 28 0.044 0. 044

= 6.36Zcal = 6.36 (By calculations)Value of Z (from normal distribution table) Ztab = 1.96 at 5% level of significance.Since Zcal > Ztab

Null Hypothesis is rejected and Alternate Hypothesis is accepted

Hence, Leaders in Software Company which clearly define the current business operations of an organization, foster the development of a common vision, and set goals and values to achieve the vision.

TABLE NO.- 4 : SHOWING FACTORS FOR TEAM WORK

TEAMWORK MEAN FACTORS1 2

Our Company is organized into permanent production teams

3.80 0.552

Our Company forms teams to solve problems 3.91 0.817

In the past three years, many problems have been solved through small group sessions

3.78 0.632

Supervisors encourage the persons who work for them to exchange opinions and ideas

3.86 0.772

Supervisors encourage the people who work for them to work as a team

3.93 0.514

Supervisors frequently hold groups meetings where the people who work for them can really discuss things together

3.91 0.707

%variance 31.158 17.685 Cumulative % variance 31.158 48.843

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SCREE PLOT AND VARIANCES

Scree plot is a graphical approach proposed by Cattell (1966). Scree test shows a relative judgement of the amount of variance accounted for by the retained components. The below figure explains the Scree diagram.

FIGURE: 3: SCREE TEST FOR TEAM WORK

Two factors are clear on the Scree test and the Eigen values for these two factors were found to be 31.158 for production teams, and 17.685 for encouraging employees to work as a team. The results show that all the loadings are above 0.5 which is required for an item to be included on a factor (Kim et. al, 1986). For the final analysis we have selected all the contributing variables (above 0.5) from each factor to get a better representation. The description of different factors is mentioned below:

TABLE – 5: SHOWING FACTORS FOR LEADERSHIP

LEADERSHIP Mean FACTORS1 2 3

Defines current business operations 3.89 0.559

Measures and analyses current business operations. 3.97 0.574Improves current business operations 4.29 0.262

Controls current business operations 4.06 0.471

Works with process owners to continuously improve systems and processes

4.05 0.688

Fosters the development of a common vision, and sets goals and values to achieve the vision

4.17 0.731

Builds cohesive, results oriented teams committed to the organization

3.98 0.740

Constantly works to eliminate waste, rework, redundancy or unnecessary

4.35 0.463

Is proactive in addressing customer concerns, questions and complaints

3.82 0.641

Customer satisfaction is tracked and reviewed as part of management policies.

4.32 0.571

%variance 24.24 12.434 10.271

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Cumulative % variance 24.24 36.675 46.947

Factor 1: Leaders define current business operations, measure, analyze and continuously improve systems.From the above table, the rotated factor matrix table, we notice that the following statements have loadings of 0.559, 0.574, 0.688 and 0.571 respectively. This suggests that factor 1 is a combination of 4 original variables which are:

1. Defines current business operations (Mean 3.89)2. Measures and analyses current business operations (Mean 3.97)3. Works with process owners to continuously improve systems and processes (Mean 4.05)4. Customer satisfaction is tracked and reviewed as part of management policies (Mean

4.32)

Hence software industry in India should define current business operations, measure, analyze and continuously improve systems to satisfy their customer.

TABLE NO - 6: SHOWING FACTORS FOR EMPLOYEES INVOLVEMENT

EMPLOYEES INVOLVEMENT Mean FACTORS1 2 3

All key players well trained in the use of a common methodology for analysis and problem solving

4.18 0.692

All new employees are trained in the analysis, methodology and problem solving tools

4.04 0.556

There is no fear of my manager/supervisor for speaking out about waste or when making suggestions for improvement in my department

3.61 0.752

Currently there is active employee development program at the company

3.88 0.681

Decisions in my department are made with the input from people who will be affected by the decision

3.86 0.464

Use of basic process improvement tools for Quality implementation to improve work processes known to me

3.81 0.571

Management first looks at the way we do work, rather than at who caused the problem, when something goes wrong in my department

3.83 0.666

My manager/supervisor encourages me to pursue continuous work improvements

4.16 0.534

My department works hard towards achieving 'continuous improvement' in our processes

4.13 0.560

My manager/supervisor has high standards, yet still has realistic expectations of employees

3.92 0.514

Senior managers encourage participation in Quality Teams from all levels

3.99 0.651

I am interested in participating in Quality initiatives 4.84 0.114%variance 27.567 11.027 9.256Cumulative variance 27.567 38.594 47.85

SCREE PLOT AND VARIANCES

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Scree plot is a graphical approach proposed by Cattell (1966). Scree test shows a relative judgement of the amount of variance accounted for by the retained components. The below figure explains the Scree diagram.

FIGURE – 4: SCREE TEST FOR EMPLOYEE INVOLVEMENT

Three factors are clear on the Scree test and the Eigen values for these three factors were found to be 27.567 for active development program,11.027 for continuous improvement in work, and 9.256 for training key players. The results show that all the loadings are above 0.4 which is required for an item to be included on a factor (Kim et. al, 1986). But for the final analysis we have selected the best contributing variables (above 0.5) from each factor to get a better representation. The description of different factors is mentioned below:

Findings: The data collected were analyzed and necessary inferences were drawn from them. Following are the findings made from this study:

1. Majority of software companies in India have implemented Six Sigma in their organizations for 3 to 6 years

2. Majority of the software companies in India have implemented Six Sigma in all the departments of their organization,

3. Majority of Six Sigma facilitators in software companies have had training and experience in other industries,

4. Majority of the software companies have a clear vision to guide the company’s strategic goals and missions,

5. Majority of the software companies’ leaders share the common vision of their organizations future,

In many organizations in Indian software companies, implementation levels of Six Sigma in the following areas are on a moderately high level:

1. Customer needs are addressed when designing a product/service, 2. People on units are enthusiastic about pursuing the collective goals and missions of the

whole organization,3. Customers are included in the benchmarking teams, and product design,4. Products / Services are delivered on time/ ahead of schedule,5. The end-user is kept in mind when developing a product,

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6. Software companies ensure that their product/service line represent an excellent value to the customer,

7. Software Companies respond to customer needs in the minimum time possible,8. In software companies in India, business operations are measurable, maximize equipment

uptime and optimize cycle time, and operational goals are clearly defined,9. Employees in software companies are interested in participating in Quality initiatives,10. All key players in software companies are well trained in the use of a common

methodology for analysis and problem solving,11. All new employees in software companies are trained in the analysis, methodology and

problem solving tools.

In many organizations in Indian software industry, implementation levels of Six Sigma in the following areas are moderate:

1. Software companies supervisors encourage the employees to work as a team and form teams to solve problems,

2. The leaders of software companies share a common vision of their organization’s future and one unit shares the same ambitions and vision with other units at work,

3. Software companies in India take responsibility and correct outcomes not achieved by customer standards and allot time to evolve a thorough understanding of each other's business,

Conclusion: Six Sigma at its fundamental level can be viewed as having its own sets of philosophy, principles, and intervention that can be amalgamated into an integrated management system. Six elements had been identified to operationalise the Six Sigma spirit. The research data has shown that the implementation of these elements vacillated around the moderately high level. Close scrutiny of the data had, however, indicates that the elements are somewhat implemented at different levels within the medium to high band; shared vision, leadership, business operations and employee involvement are implemented at a “moderately high” level, while the remaining two elements like customer management and teamwork are implemented at the moderate level.

From the research instrument, while each element is operationalise through a series of practices, the distillation of those practices via data analyzes has enabled the researcher to derive a reduced set of important factors that represent each element. The factors listed represent the main practices associated with each Six Sigma element that practitioners can employ to start off Six Sigma implementation in service industry.

BIBLIOGRAPHY: 1. Antony, J. 2004, “Six Sigma in the UK service organisations: Results from a pilot survey”, Managerial Auditing Journal, vol. 19, no. 8, pp. 1006-1013.

2. Antony, J.,Antony, F.J.,Kumar, M. and Cho, B.R. 2007, “Six sigma in service organisations”, International Journal of Quality amd Reliability Management, vol. 24, no. 3, pp. 294-311.

3. Antony, J. and Desai, D.A. 2009, “Assessing the status of six sigma implementation in the Indian industry. Results from an exploratory empirical study”, Management Research News, vol. 32, no. 5, p. 413.

Page 14: 6 Sigma= 3.4 Defects Per Million - Asia Pacific - Indian ...apjor.com/files/1390676851.docx · Web viewThe Six Sigma definition from Motorola University states: “Invented by Motorola,

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