Project Report Six Sigma

8/13/2019 Project Report Six Sigma

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PROJECT TITLE JARO EDUCATION

PROJECT REPORT ON

Six Sigma in Indian industries

SUBMITTED IN FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

THE INTERNATIONAL MBA INPRO E!T MANA"EMENT

B#

Dr$ Sreeni%as "unda&a

ULSU'MBA'IE' AN()*

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DE!LARATION

I Mr. Sreenivas hereby declare that the project report titled sixsigma in Indian industries+ su,mitted in -artia&

.u&.i&&ment /. t0e re1uirement ./r t0e 2internati/na&MBA in -r/3e4t management+ is m5 /rigina& 6/r7 andit 0as n/t ./rmed t0e ,asis ./r t0e a6ard /. an5 /t0erdegree$

Name of student:Dr. Sreenivas Gundala

Place: yderabad

Date: !"#$#!%



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A!8NOWLED"EMENT

I FEEL FORTUNATE TO GET SUPPORT OF NUMEROUS SOURCES AND PEOPLEIN MAKING THIS PROJECT.

I TAKE THIS GOLDEN OPPURTINITY TO EXPRESS MY PROFOUND GRATITUDE TOTHANK MR. A.S. BANSAL OF HINDUSTAN UNILEVERLIMITED FOR HIS VALUABLE GUIDANCE BY GIVING ME THEKNOWLEDGE FOR TRANSFORMING MY IDEAS INTO REALITY.

I WOULD LIKE TO THANK ALL COLLEGUES OF MANY COMPANIES FOR THEIRCOOPERATION. I GREATLY ACKNOWLEDGE THE HELP PROVIDEDBYMY FRIENDS AND THOSE WHO GAVE ME THEIR MORAL SUPPORTWHILE MAKING THE PROJECT.

NAME ANDSIGNATURE:

Dr. SreenivasGundala



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TABLE OF !ONTENT

........................................................................................................................................................................................1

PROJECT REPORT ON.................................................................................................................................................1HISTORY OF SIX SIGMA.............................................................................................................................................6

WHAT IS SIX SIGMA....................................................................................................................................................8

WHY SIX SIGMA DEVELOPMENT ?.......................................................................................................................10

BENEFITS AND ADVANTAGES OF SIX SIGMA ..................................................................................................10

1. Improved Cus omer !o"#$ ".....................................................................................................112. Cus omer %# &s'#( &o)...............................................................................................................11*. Bus&)ess Resu$ s.......................................................................................................................13+. D# # A)#$"s&s Be'ore De(&s&o) M#,&)-...................................................................................1*

. Te#m Bu&$d&)-.........................................................................................................................1//. Me#sure 0#$ue A((ord&)- o e Cus omer..............................................................................1

. E''e( &ve %upp$" C #&) M#)#-eme) ......................................................................................24. Des&-) #)d Redes&-) Produ( s5%erv&(es...................................................................................231 . Deve$op !e#ders &p %,&$$s.....................................................................................................2/11. I) e-r# &o) o' Produ( s6 %erv&(es #)d D&s r&7u &o).................................................................2412. A$&-)me) 8& % r# e-" 0&s&o)6 #)d 0#$ues.........................................................................331*. %uperv&sor Tr#&)&)-................................................................................................................3+1+. 9e)er# es %us #&)ed %u((ess..................................................................................................3+1 . %e # Per'orm#)(e 9o#$ 'or Ever"o)e...................................................................................3/1/. E) #)(e 0#$ue o Cus omers.................................................................................................3/1 . A((e$er# es e R# e O' Improveme) ..................................................................................3414. Promo es !e#r)&)- A)d :Cross;Po$$&)# &o):.........................................................................342 . E


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SIX SIGMA AND "#ALITY MANAGEMENT GLOSSARY.................................................................................6(

CASE ST#DY ) SIX SIGMA IMPLEMENTATION IN BHARTI BROADBAND................................................6!

Introduction to Si& Si'ma

Si& Si'ma is a statistical concept that measures a process in terms ofdefects. (chievin' )Si& Si'ma) means your processes are deliverin' only%.* defects per million opportunities +DPM,- in other /ords0 they are/or1in' nearly perfectly. Si'ma +the Gree1 letter 2- is a term instatistics that measures standard deviation . In its business use0 itindicates defects in the outputs of a process0 and helps us to understandho/ far the process deviates from perfection.

( si'ma represents 3$!*34.5 defects per million opportunities0 /hichtranslates to only %".65*7 of non defective outputs. 8hat is obviously apoor performin' process. If you have a process functionin' at a threesi'ma level that means you9re allo/in' 336" .4 errors per millionopportunities0 or deliverin' $%.%!$7 non defective outputs. 8hat9s muchbetter0 but /e are still /astin' money and disappointin' our customers.

8he central idea of Si& Si'ma mana'ement is that if you can measurethe defects in a process0 you can systematically fi'ure out /ays toeliminate them to approach a ;uality level of


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Hist/r5 /. Six Sigma

Since the !$4"9s the /ord 9si'ma9 has been used by mathematiciansand en'ineers as a symbol for a unit of measurement in product ;ualityvariation. +Note it9s si'ma /ith a small 9s9 because in this conte&t si'mais a 'eneric unit of measurement.-

In the mid !$6"9s en'ineers in Motorola Inc in the =S( used 9Si& Si'ma9an informal name for an in house initiative for reducin' defects inproduction processes0 because it represented a suitably hi'h level of;uality. +Note here it9s Si'ma /ith a bi' 9S9 because in this conte&t Si&Si'ma is a 9branded9 name for Motorola9s initiative.-

+>ertain en'ineers there are varyin' opinions as to /hether the veryfirst /as ?ill Smith or Mi1al arry felt that measurin' defects in termsof thousands /as an insufficiently ri'orous standard. ence theyincreased the measurement scale to parts per million0 described as9defects per million90 /hich prompted the use the 9si& si'ma9 terminolo'yand adoption of the capitali@, Aa/rence ?ossidy learned of Motorola9s/or1 /ith Si& Si'ma and so approached Motorola9s >@, ?ob Galvin tolearn ho/ it could be used in (llied Si'nal.

In !$$50 General @lectric9s >@, Bac1 Celch +Celch 1ne/ ?ossidy since?ossidy once /or1ed for Celch at G@0 and Celch /as impressed by

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?ossidy9s achievements usin' Si& Si'ma- decided to implement Si&Si'ma in G@0 and by !$$6 G@ claimed that Si& Si'ma had 'eneratedover three ;uarters of a billion dollars of cost savin's. +Source: Geor'e@c1es9 boo10 8he Si& Si'ma evolution.-

?y the mid !$$"9s Si& Si'ma had developed into a transferable9branded9 corporate mana'ement initiative and methodolo'y0 notably inGeneral @lectric and other lar'e manufacturin' corporations0 but also inor'ani


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W0at is Six Sigma

Eirst0 /hat it is not. It is not a secret society0 a slo'an or a clichF. Si&Si'ma is a hi'hly disciplined process that helps us focus on developin'and deliverin' near perfect products and services. Chy )Si'ma) 8he/ord is a statistical term that measures ho/ far a 'iven processdeviates from perfection. 8he central idea behind Si& Si'ma is that ifyou can measure ho/ many )defects) you have in a process0 you cansystematically fi'ure out ho/ to eliminate them and 'et as close to)


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commitment to Si& Si'ma at place li1e General @lectric or Motorola0culture chan'eH is certainly a valid /ay to describe Si& Si'ma. ?ut it salso possible to DoH Si& Si'ma /ithout ma1in' a frontal assault on yourcompany culture.

If all these definition measure0 'oal or culture chan'e at least partly butnot totally accurate0 /hat s the best /ay to define Si& Si'ma ?ased onour e&perience or e&amples set by the 'ro/in' number of companiessee1in' Si& Si'ma improvement /e have developed a definition thatcaptures the breadth and fle&ibility of Si& Si'ma as a /ay to boostperformance.



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W05 Six Sigma De%e&/-ment 9

8he 'oal of the Si& Si'ma is to enable you to understand /hat Si& Si'ma is+ both a simple and a comple& ;uestion -0 /hy it s probably the best ans/er toimprove business performance in years0 and ho/ to put it to /or1 in theuni;ue environment of or'aniustomer retention>ycle time reductionDefect reduction>ulture chan'eProduct#service development

and many more.

Bene.its and Ad%antages /. Six Sigma



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8here are numerous benefits of Si& Si'ma as a /ay to address issues andproblems. (mon' the benefits of Si& Si'ma is the decrease in defects that areallo/ed to reach the customer. Kou can 'et some sense of the benefits of Si&Si'ma by revie/in' some si& si'ma projects . ,ther benefits of Si& Si'mainclude:

)$ Im-r/%ed !ust/mer L/5a&t5

(ccordin' to Geor'e ?o& )(ll models are /ron'0 ho/ever some models areuseful). Ce believe you /ill find this model +'raphic- /hich starts /ithcustomer satisfaction0 customer loyalty and customer retention useful.

( lar'e factor in determinin' the li1elihood of success and profits in anor'ani


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upon the business0 ne/ customer sales may cost * to !"" times that ofa sale to an e&istin' customer.

8here has been less research on satisfied customers to determine /hatit ta1es for a satisfied customer to chan'e. Chy ta1e a chance on meresatisfaction Aoyal customers don9t leave even for an attractive offerelse/here. (t the very minimum they /ill 'ive you the opportunity tomeet or beat the other offer. Maintainin' loyal customers is an inte'ralpart of any business.

,ne of the /ays to help obtain loyal customers is by havin' productsandservices that are so 'ood that there is very little chance that thecustomer re;uirements /ill not be met

,f course one of the difficulties is understandin' the true customerre;uirements. @ven /hen you have the re;uirements in advance thecustomer can and /ill chan'e them /ithout notice or e&cuse. avin' a'ood recovery process for a dissatisfied customer is a necessity.

Chen I found this it /as attributed to Sam Calton founder of Cal Mart.

A !ust/mer

o ( customer is the most important person in any business.o ( customer is not dependent upon us. Ce are dependent upon

him.o ( customer is not an interruption of our /or1. e is the sole

purpose of it.o ( customer does us a favor /hen he comes in. Ce aren9t doin'

him a favor by /aitin' on him.o ( customer is an essential part of our business not an outsider.o ( customer is not just money in the cash re'ister. e is a human

bein' /ithfeelin's and deserves to be treated /ith respect.

o ( customer is a person /ho comes to us /ith his needs and his/ants. Itis our job to fill them.

( customer deserves the most courteous attention /e can 'ive him. e is thelifeblood of this and every business. e pays your salary. Cithout him /e/ould have to close our doors. Don9t ever for'et it.



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Several surveys have been done on /hy customers do not 'ive a businessrepeat business. easons 'iven by customers for not returnin' for repeatbusiness:

Moved %7,ther Eriendships 57>ompetition $7Dissatisfaction !*7@mployee (ttitude 367

8hese surveys /ould indicate that in addition to the technical trainin' and jobs1ill trainin' provided to employees0 some effort aimed at customersatisfaction and employee attitude is appropriate. emember these may notbe the people normally thou'ht as )Sales People). Eor e&ample Mana'ers0Supervisors0 Secretaries0 (ccounts Payable0 @n'ineers0 (ccountants0Desi'ners0 Machine ,perators0 Security0 8ruc1 Drivers0 Aoadin' Doc10 etc. ifnot helpin' to cultivate Aoyal >ustomers are hurtin' your customerretention. 367 of lost customers are due to one cause0 employee attitudeL

In order to 1no/ ho/ you are doin' in this area there must be somemeasurement. Data indicate that less than *7 of dissatisfied customers everbother to lod'e a complaint. Most just ta1e their business else/here. 8est thison yourself. 8he ne&t time you 'et less than /hat you consider ideal at astore0 business supplier0 restaurant0 movie theatre0 hotel0 or any otherbusiness /hat do you do

>ultivatin' the customer relationship is 1ey in achievin' the desired businessresults. ( passive system that depends upon your customers to inform you/ithout effort on your part is not li1ely to yield the information necessary toimprove customer retention.

;$ Business Resu&ts

@very or'ani


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@arnin's per shareepeat business 7

Ne/ customers 7>ash Elo/C"($e T&mePatents issued

Safety performanceeturns

Carranty claims@nvironmental performanceDefect levelScrapEirst pass prime>ost per unit producedDebt to e;uityMany others

('ree on ho/ to measure the result area. Is the measurement system capableof producin' numbers that are useful for the intended result area Do all ofthe affected people have confidence in the measurement system >annumbers be 'enerated ;uic1ly enou'h to be useful Does the measurementdepend upon the level of the resultGenerally measurements over a continuum +e.'. 7 completion- are moreuseful than yes#no +e.'. done#not done- type measurement.


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levels in the or'ani


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avera'e as the entire time period at moderate performance levels0 yetthe information from the 'ap analysis is much different. Some?enchmar1in' has very structure statistical 'ap analysis and other use amore ;ualitative 'ap analysis of the data collected. In mostor'ani


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Si& Si'ma projects can ma1e major improvements in service and stafffunctions0 just be sure that the measurements to do the 'ap analysiscapture /hat is really happenin'. It is easy to transfer costs from onefunction or location to another. Ma1e sure your projects return thebenefit to the or'ani


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(ssessments aimed at understandin' yourself and others can speed teambuildin'. =nderstandin' is the first step in developin' employee motivation.Cith an understandin' of other employees9 motivation every individual hasthe opportunity to add to the syner'y of the team.

>$ Measure ?a&ue A44/rding t/ t0e !ust/mer

Ce are continuin' to build the model and consider measurin' value asdetermined by the customer as evidence of customer satisfaction.

8he 'raphic measurin' value is strictly a customer satisfaction issue. Nomatter /hat the product or service the customer determines /ith their dollarsthe value proposition. It is possible to chan'e that understandin' throu'ha variety of efforts on your part but ma1e no mista1e the customer9ssatisfaction is the ultimate value measure of /hat is offered. Si& si'masee1s to understand that value from the vie/ of the customer andenhance the value in a /ay that is advanta'eous to both the customer andto the or'aniompany. 8he chan'es in customer tastes can besurprisin'ly fast0 if your processes do not have the cycle time capability torespond others are li1ely to meet the chan'in' customer desires.

http://www.adamssixsigma.com/Newsletters/measure_value.htmhttp://www.adamssixsigma.com/six_sigma_training/cycle_time.htmhttp://www.adamssixsigma.com/Newsletters/measure_value.htmhttp://www.adamssixsigma.com/six_sigma_training/cycle_time.htm


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Ee/ or'aniompanybarely survived a miss readin'. Ket in many cases if too much time is spenton study and evaluation the profitable opportunity may have passed. Smallor'ani


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Doin' some simple math 3%.%7 of the customer interfaces /ill have a defect. 8here are multiple surveys that indicate that less than *7 of customers /illever complain. *7 times 3%.%Q 4.5%4 or appro&imately %7.

Chich means that if %7 of your customers +each transaction bein' counted asa unit- complain then you have a defect rate avera'in' ! per unit.

In the December 4""" issue of uality Pro'ress Gre'ory . Catson su''eststhat there are three lo'ical cate'ories for failures or defects. Eirst the productor service does not meet customer e&pectations0 second the price is notappropriate for the customer to see sufficient value and third the delivery innot /ith in the re;uired time frame for the customer. 8he assumption here isthat all defects are the same in the eyes of the customer.

8his vie/ of measurin' defects from the perspective of the customer isessential if you are 'oin' to move the improvements throu'h si& si'mafrom incremental internal improvements to the dramatic customer focusedchan'es that are found /ith Corld >lass Performance. (ll of the nonproduct related defects are no/ considered in the yield. ere our yield iscustomer satisfaction.

8he implications of a %7 complaint rate by customers are terrible. ,nlyby chance are you able to produce defect free product or service %3. 7 ofthe time and all of the remainin' products or services have at least onedefect and some multiple defects. Ee/ businesses can survive /ith that levelof poor performance.

Measurin' value is more than just considerin' the value of a product bein'delivered to the customer as intended. 8he value has to consider the totalcustomer e&perience0 includin' all of the support services such as lo'istics0accounts receivable0 etc.

@$ E..e4ti%e Su--&5 !0ain Management

Ce add supply chain mana'ement and the impact of suppliers is included inour 'raphic model. Ee/ products or services e&ist that so not re;uire somesupply chain mana'ement. 8he more suppliers that are involved the morecomple& the supply chain mana'ement becomes. @ven if the entire supplychain from basic ra/ materials that come from the earth or out of the mindsand actions of people0 is not considered there is still a supply chain that mustbe attended. >ycle time of each step and process in the supply chain sets thelimit on ho/ fast the entire supply chain can function.

8here have been a number or philosophies about ho/ to deal /ith the supplychain mana'ement. ?ac1/ard inte'ration0 develop as many suppliers aspossible to ma1e the supply item a commodity0 competitive biddin'0 sin'le

http://www.adamssixsigma.com/Newsletters/supply_chain_management.htmhttp://www.adamssixsigma.com/chart3.htmhttp://www.adamssixsigma.com/six_sigma_training/cycle_time.htmhttp://www.adamssixsigma.com/Newsletters/supply_chain_management.htmhttp://www.adamssixsigma.com/chart3.htmhttp://www.adamssixsigma.com/six_sigma_training/cycle_time.htm


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source0 supplier partnerships to name a fe/.

In 'eneral the closer a product or service is to a commodity item by definitionthe more potential suppliers are available. 8his can ma1e the supply chainmana'ement e&tremely comple&. Maintainin' traceability becomes muchmore burdensome. Eor e&ample in the =S purchasin' /heat is 'enerallyconsidered a commodity and there are thousands of /heat farmers see1in' tofill the need. ,n the other hand ashmir /ool is not ;uite as readily availablein the =S and there are fe/er providers. +Maybe in India it /ould be acommodity item.- 8racin' a specific load of /heat to a particular field orfarmers can be an almost impossible tas1.

8a1e a relatively ne/ field that has ;uic1ly become a commodity service.../ebsite development. 8he number of people doin' that 1ind of /or1 has 'ro/ne&tremely fast. Ket I am told that search en'ines inde& less than !%7 of all/eb sites. ( less commodity service in this area are those /ho not only can'et your /eb site inde&ed by search en'ines but /ho can do so /ith phrasesthat people actually enter and actually drive le'itimate traffic to a /eb site. +Ifyou are interested in this area /e have a stron' recommendation based onperformance and affiliation.-

>ommodity suppliers are al/ays at the bottom of the economic food chain. 8he price they 'et for their 'oods or services is 'enerally out of their controland they are forced to ta1e /hat a fairly price elastic economy offers. 8his isnot to say that there are not commodity suppliers /ho have very successfuland profitable businesses. 8hey are al/ays see1in' to be the lo/est costproducer and have little if any price influence. 8hey have to be e&tremely costsensitive to all of the factors involved in their system. =sually you /ill find thesuccessful commodity suppliers see1in' to differentiate themselves fromeveryone else in some fashion. Easter delivery0 friendlier people0 easier creditterms0 better service0 consistency +lac1 of variation- of product0 location0brandin' and brand alle'iance0 customi


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any one else and at a minimum be able to deliver at a defect rate of less than%.* PPM there are t/o basic approaches to do that.

,ne is to have you process centered as /ell as possible at the tar'et value. 8his is the on tar'et component. >lassic Si& Si'ma allo/s for a !.5 standarddeviation shift to compensate for the fact that fe/ if any processes remainstable centered e&actly on the tar'et value. 8he second /ay to approach Si&Si'ma is to reduce the variation in the process to the level that even /ith a!.5 standard deviation shift the chances of a defect are less than %.** ppm.

8he objective is really ),n tar'et /ith minimum variation.)

Suppliers have the opportunity to 'reatly influence both of the objectives. 8hey are at the be'innin' of the chain of process steps for your product orservice.

(ssume that you have five process steps in your or'ani


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effort.

8hose of you /ith some math inclination /ill ;uic1ly reali


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Plus the redesi'n of Products and Services should be based on the Measuredalue from the >ustomers and Supplier capabilities. If done correctly theedesi'ned Product and Service should do a better job of meetin' and

e&ceedin' >ustomer e&pectations than did the ori'inal product or service.

Chen Si& Si'ma Plus is applied the economic return on investment shouldimprove for the ?usiness =nit involved. ?etter products /ith fe/er defects0cost reduction projects0 better understandin' of the >ustomer0 improved /or1flo/0 employee commitment0 supplier involvement and reduced cycle timesare but a fe/ of the consideration in product revie/s. >han'es in productdesi'n should reduce comple&ity0 have fe/er defects0 improve reliability0 andoffer the >ustomer functionality not in the ori'inal product desi'n or service.Chen these objectives are met there is a direct cause and effect relationshipto improved mar'ins and lar'er mar1et share.

,nce your customers have developed a lo/ tolerance for defects0 you have auni;ue mar1etin' advanta'e over your competitors. 8his is true provided youcontinue to focus on the >ustomer >ritical >riteria and improvementprocesses. In these areas mentioned0 it is 'oin' to be very difficult for acompetitor to match the level of performance your customers have learned toe&pect from your business or'ani


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many cases is yes. (s en Miller /rites0 )8he popularity of customer surveys ison the rise. Kou can9t 'o any/here /ithout bein' as1ed to complete one. 8heyare in most every hotel room and restaurant and on every airplane.)

Miller identifies the follo/in' common problems /ith customer surveys:

8he /ron' people are surveyed 8he /ron' ;uestions are as1ed

8he ;uestions are as1ed the /ron' /ay

8he ;uestions are as1ed at the /ron' time

Satisfaction and dissatisfaction are assumed to be e;ually important

8hose /ho did not buy or use the product#service are not surveyed

Surveys are conducted for the /ron' reasons

8he results are 'eneraliustomer >ritical >riteria +the importantvariables- that drive a successful product desi'n or service. =nderstandin'/hat the voice of the customer is really sayin' is of vital importance.

8he product revie/s or service revie/s usin' customer surveys should do abetter job of meetin' the identified >ustomer >ritical >riteria or addresscustomer concerns and issues not met /ith the ori'inal product desi'n or

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service. (mon' those to be considered are e&panded functionality0 reducedcost0 improved reliability0 more attractive desi'n0 etc.

uality Eunction Deployment + ED- and the resultin' ) ouse of uality) chartis a tool that is can be used to balance the often conflictin' re;uirements.Multifunctional teams are used in the development0 and the resultin' matri&can serve as an important communication tool. 8he >ustomer >ritical >riteriaare listed and ran1ed. =sually a comparison bet/een the e&istin' desi'n andcompetitors desi'ns is included in the evaluation. @n'ineerin' re;uirementsneeded to meet the voice of the customer are compiled. 8he relationshipsbet/een the customer re;uirements and the )en'ineerin' ho/) are sho/n inthe relationship matri&. ,bjective measurements for each re;uirement areidentified and technical difficulty assi'ned. Positive and ne'ative relationshipsbet/een desi'n re;uirements are determined alon' /ith relative importanceratin's. Ce should utili


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) $ De%e&/- Leaders0i- S7i&&s

Ce are continuin' to build the model and consider the impact of leadership;ualities and leadership s1ills. See the 'raphic leadership ;ualities .

Aeadership s1ills are needed at every level in the or'anionsistenttrainin' and approach from the e&ecutive level throu'h mana'ers andsupervisors /ill help all in the or'aniivil @n'ineerin' to desi'n and build a major hi'h/ay.Neither /ould many of us /illin'ly 'o into sur'ery /ith the person performin'the operation havin' no trainin' in medicine. Ket many of our mana'ementand supervisory positions are filled /ith very competent technical people /ithlittle preparation for mana'ement or supervisor duties. In those cases thereare basically t/o options. ,ne is to move alon' and hope that instinct and a

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'ood support structure /ill be ade;uate. 8he second option is be'inaccelerated leadership trainin' aimed at developin' the leadership s1ills and1no/led'e base re;uired for a leadership position.

Si& Si'ma Plus implementation offers an alternative /hile providin' majorimprovements at the same time. Aeadership s1ills are honed and majorimprovements are made in the or'anihampions are char'ed /ith interfacin' /ith Senior Mana'ement and the?lac1 ?elt or'ani


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tools. 8hey are instead people /ho have been 'iven an opportunity to add totheir technical s1ill level /ith some very specific trainin' and an opportunity toapply those s1ills on projects in a very rapid fashion. Chile applyin' those ne/s1ills there is also the opportunity to enhance the leadership s1ills. (ny ?lac1?elt or or'ani


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8hese hurt customer loyalty0 even if the customer never sees them becausethey /ere cau'ht0 corrected0 off 'raded0 recycled0 scrapped0 re/or1ed etc.

>han'es the concept and early desi'n phases are much less costly than atany other time. >ost 'o up e&ponentially as a product is moved from conceptto desi'n to prototype to field trial to full production and finally to the hands ofthe customer. 8his is not to say that mista1es /henever detected should notbe corrected0 but rather that effort in eliminatin' the mista1es or problems atthe front end of the process is much more efficient.

Mista1e proofin' and Po1e Ko1e concepts applied to the en'ineerin' anddesi'n of a product pay unima'ined dividends later in the process. @arlyconsideration on /ays to ma1e a product fail can result in more robustdesi'ns and better performance in the hands of the consumer as these failuremodes are addressed. It is not unusual for a solution to e&ist that hasessentially no additional cost or comple&ity. In fact reduction of comple&ity/ill 'enerally be an advanta'e. Eunction (nalysis can help discover paths tosome of these solutions.

Eeed bac1 of eliability @n'ineerin' data from similar components or productsin a valuable resource. >losin' the loop from desi'n to field reliability shouldbe part of every desi'n process.

It is obvious that there can be an impact on the customer if the customer isforced to suffer /ith less than the performance e&pected. ery manyoccurrences and there is an @U customer.

@ven /hen the defect does not 'et to the customer it hurts customer loyalty.@very defect costs more than the 'ood product or service at the same point inthe process. 8he same /or10 effort0 ra/ materials and other resources areconsumed yet because of the defect it has less end value. 8his means the'ood product or service must carry the burden of the bad product or service.(t the very minimum the customer is payin' more for the product or servicethat is 'ood or the mar'in of profit is less than it could be. 8he impact ofdefects is much deeper than this simple e&planation. 8hrou'h put0 inventory0ra/ material0 disposal0 inspection0 ener'y are all impacted by defects. CithSi& Si'ma Plus a 1ey activity is to 1no/ /hat the defect rate is and /hat it iscostin'. 8his seemin'ly simple measurement can often be enli'htenin'.

@fficient and effective /or1 processes do not place unreasonable demandsupon the people that have to use them. 8he steps are natural and there islittle /asted motion effort or comple&ity. Chat is needed is done0re;uirements are met /ith confidence0 and it just ma1es sense. 8oo often therestrictive /or1 practices are the result of a problem /ith a very small numberof people and to cover up rather than address and correct that issue everyoneis made to suffer. It seems the lar'er the or'ani


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restrictions are in place to cover the possibility that ! or 47 of the employeesmi'ht abuse an opportunity and all employees are forced to suffer /ith the)solution). >ycle 8ime (nalysis /ill usually sho/ /here the unnecessary rulesand restrictions are 'ettin' in the /ay of meetin' customer e&pectations. ey/or1 processes fre;uently can be performed in 4"7 5"7 of the ori'inal time/ith no addition of resources and fe/er defects by applyin' the results of this1ind of analysis.

( simple e&ample: (t a relatively remote location the most convenient placeto have lunch is the company cafeteria. In order to ma1e it easy /henmeetin' /ith customers on location0 le'itimate business lunches could besi'ned off at the chec1out re'ister. ?ecause of abuse by a very fe/ this /aseliminated and no/ e&pense accounts must be filed for all business e&pensesat the cafeteria. Not only /ere the innocent punished0 the 'uilty /ere neverchallen'ed and additional comple&ity /as added to a simple process addin'time and cost to all /ho use the cafeteria for business. Cith this 1ind ofthin1in' the comple&ity that is added to the )serious) /or1 processes must behu'e.

8he best analo'y I 1no/ for an effective and efficient /or1 process is a lar'eball at the top of an incline. It ta1es /or1 to 'et it started but then 'ravityta1es over and it is easy to move the ball to the bottom of the incline.>ontrast this /ith the /or1 process that starts /ith the ball at the bottom ofthe incline and it must be moved up. Gravity /or1s a'ainst completin' theprocess. (ny distraction0 inattention0 competin' priority or just a bad momentand it is /orse than startin' at the be'innin'. Kou have to 'o retrieve the ballfrom /here ever it stoppin' rollin' and 'et it bac1 to the startin' point. (reyour and those in your or'anilass Performance. Mostpeople attempt to do ?enchmar1in' /ithin their o/n industry. 8he commonrefrain is: )Cho has done this in the injection moldin' business ) utilitybusiness insurance ) health care People seem to e&pect they can al/aysfind /hat they /ant in their o/n industry. 8hat just 1eeps you in the herd.>ompetitors may be /illin' to share some information but are not li1ely to

share the thin's that /ould brin' your process up to their level.

Major benefits come from loo1in' outside your industry to find /ho is Corld>lass at the process or function you are see1in' to improve. Mostor'ani


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(t a minimum be prepared to ans/er about your o/n or'ani


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):$ A&ignment 6it0 Strateg5 ?isi/nC and ?a&ues

,ur 'raphic model adds SC,8 analysis0 strate'ic plannin' 0 vision statement0mission statements and business plans.

In developin' business plans and doin' strate'ic plannin' 'oal settin' somevery basic ;uestions are addressed:

Chy do /e e&ist as an or'ani


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more. ,ne of the bi''est hurdles to overcome is the reali


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SM( 8 criteria. +Specific0 Measurable0 (ction ,riented0 ealistic0 8ime bound-.@ach 'oal should have action plan+s- to assure they are achieved. Ere;uentlysome of the 'oals from one level become objectives for the ne&t level do/n inthe or'ani


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Bohn >hambers0 >@, of >isco System0 the net/or1in' e;uipment po/erhousethat s been one of the fastest 'ro/in' companies of the past decade0 recentlycommented on the tenuous hold many companies have on their success.8here is the reali


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)=$ Set a Per./rman4e "/a& ./r E%er5/ne

In a company of any si


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our ;uality so special0 so valuable to our customers0 so important to theirsuccess that our products become their only real value choice.H Cith ti'htercompetition in every industry0 deliverin' just 'oodH or defect freeH productsand service /on t 'uarantee success. 8he focus on customers at the heart ofSi& Si'ma means learnin' /hat value means to customers +and prospectivecustomers- and plannin' ho/ to deliver it to them profitably.



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)@$ A44e&erates t0e Rate O. Im-r/%ement

Motorola s 'oal of !""U improvement in * yearsH set an e&ample forimbibitions0 driven or'ani


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D/(s and D/n(ts /. Six Sigma

Do ?ase your improvement project selection on solid criteria.

?alance result0 feasibility0 and or'anihoose too many project.Improvement ta1es care and feelin' on the part of leaders and e&pertHespecially at the be'innin'. It s temptin' to overe&tend your resourcesand capabilities.

Don t >reate /orld hun'erH projects.@ven more common than too manyH is too bi'H better to 'et a toosmall project done more ;uic1ly as lon' as the result are meanin'fulthan to have a too bi' project dra' on for months.

Don t fail to e&plain the reasonin' for the projects chosen.@veryone has problems they thin1 should be top priority. @nsurin'support for the one you choose means providin' a 'ood rationale foryour priorities.

JARO EDUCATION MUMBAI BATCH JAN13 | PROJECT REPORT ON *


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8e5 !/n4e-ts /. Six Sigma

(t its core0 Si& Si'ma revolves around a fe/ 1ey concepts.

!riti4a& t/ Qua&it5 (ttributes most important to the customerDe.e4t Eailin' to deliver /hat the customer /antsPr/4ess !a-a,i&it5 Chat your process can deliver?ariati/n Chat the customer sees and feelsSta,&e O-erati/ns @nsurin' consistent0 predictable processes to improve/hat the customer sees and feelsDesign ./r Six Sigma Desi'nin' to meet customer needs and processcapability Si& Si'ma focuses first on reducin' process variation and then onimprovin' the process capability. >ustomers value consistent0 predictablebusiness processes that deliver /orld class levels of ;uality. 8his is /hat Si&Si'ma strives to produce.

DFSS +Desi'n for Si& Si'mais a systematic methodolo'y utili


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and#or si


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Master B&a47 Be&t Eirst and foremost teachers. 8hey also revie/ andmentor ?lac1 ?elts. Selection criteria for Master ?lac1 ?elts are;uantitative s1ills and the ability to teach and mentor. Master ?lac1?elts are full time positions.

?arian4e ( chan'e in a process or business practice that may alter itse&pected outcome.

JARO EDUCATION MUMBAI BATCH JAN13 | PROJECT REPORT ON *3


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T0emes /. Six Sigma

Kou are the >hief Aearnin' ,fficer at UKW >ompany. Kou are implementin' Si&Si'ma and you re ready. Kou ve 'one to the e&perts0 tal1ed to vendors0 and

put to'ether a trainin' strate'y that should have your ne/ ?lac1 ?elts0 Green?elts0 Master ?lac1 ?elts0 >hampions0 and mana'ers up and runnin' in notime.

Not only /ill the teams be trained in Si& Si'ma methods and statisticaltechni;ues0 but they /ill also 'et trainin' in project mana'ement0 businessanalysis0 and team buildin'. Kou ve loo1ed at mentorin'0 staff development0and chan'e mana'ement0 and have built these elements into your trainin'pro'rams as /ell.

Months 'o by. 8he P of Manufacturin' for (sia e'ion receives a % inch

binder /ith the title Si& Si'ma ecommendations.H e scans the report0 can tfind anythin' interestin' and 'ets interrupted by his Director of uality /hosays that Aine ( is do/n. 8he report sits on the P s des1 for a /ee1 and then'ets moved to a boo1shelf. 8/o months later the >,, calls him0 I just 'ot areport from the >E, that says that your plants have i'nored one of the criticalSi& Si'ma recommendations outlined in the report that you 'ot a lon' timea'o. 8he >@, is furious0 because it loo1s li1e /e aren t serious about chan'e.H

e /ants to 1no/ /hy the P of Manufacturin' i'nored the report.

In reality0 the recommendation /as hidden /ithin the binder. It /as presentedin a /ay that /ould have ta1en him days to fi'ure out and lon'er to

implement. (nd to understand it0 he /ould have had to also understandHdo


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or'aniustomerH demandsmore than business as usualH communication effectiveness.

T0eme T6/ Data and Fa4t Dri%en Management

,ne of the primary differences bet/een Si& Si'ma and other ;uality initiativesis the relentless focus on data. Much of the po/er of the Si& Si'ma processcomes from its avoidance of speculation and conversation in favor of tests andmeasurements. Graphs and charts are often touted as the lan'ua'e of Si&

JARO EDUCATION MUMBAI BATCH JAN13 | PROJECT REPORT ON *+


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Si'ma and they are important but it is e;ually important that Si& Si'mateams /rap their charts and 'raphs in clear0 effective communications thatma1e sense of the data and their interpretations and solutions. 8his result canonly be accomplished if the people preparin' the statistics and theirmana'ers can communicate effectively.

T0eme T0ree Pr/4esses are W0ere t0e A4ti/n Is

Si& Si'ma projects usually focus on 1ey processes and ho/ to improve them.In most companies0 process0 procedure and 'uideline information is poorly/ritten. Since processes typically involve many departments and manypeople0 even a small chan'e can have a hu'e impact on an or'anihan'einvolves various levels of an or'ani


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It may sound easy to drive for perfection0 but tolerate failure0H but it is not.Eailure is tou'h. It is often complicated and difficult to e&plain in a nonthreatenin' /ay. Poor communication around failures lessens the opportunityto prevent the failure from happenin' a'ain. 8eams must be able to clearlycommunicate /hat happened0 /hy it happened0 and /hat they can learn fromthe e&perience to help ensure that the ne&t project is a success. ,nce a'ain0/ithout effective communication s1ills0 it can be difficult to survive and thrivein a perfection driven environment.

ServiceMaster >ase Study: Improved >ommunication Euels Si& Si'maesults8he ServiceMaster >ompany provides various services to residential

and commercial customers in the =nited States /here it serves !".5 millionhomes and businesses each year. >ore service capabilities include la/n careand landscape maintenance0 termite and pest control0 plumbin'0 heatin' andair conditionin' maintenance and repair0 appliance maintenance and repair0cleanin' and furniture maintenance and home /arranties. 8hese services areprovided throu'h a net/or1 of over 50*"" company o/ned and franchisedservice centers and business units. In 4""!0 ServiceMaster committed tobrin'in' its ;uality and customer service to a hi'her level throu'h Si& Si'ma.Ce /ere service leaders and /anted to continue to lead in our chosenmar1etsH e&plains Bohn ?iedry0 Sr. P of >ontinuous Improvement and Si&Si'ma. Ce sa/ the opportunity to differentiate our services by improvin' theprocesses that touch our customers every day. ServiceMaster s Si& Si'mapro'ram is driven by 55 blac1 belts and 3 deployment champions. 8heir job isto drive each Si& Si'ma solution across hundreds of locations. Multiplesolutions add up to thousands of replications in ServiceMaster and ma1es for aformidable communications challen'e. ServiceMaster /as havin' difficultyactually implementin' recommended process chan'es0 becausedocumentation re'ardin' ne/ processes /as hard to understand and difficultto use. Staff /as frustrated and it /as ta1in' too lon' to reali@, support and commitment forthe entire effort0 ServiceMaster reco'ni


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8he result has been ;uic1er implementation and a better return on Investmentfrom our Si& Si'ma pro'ram. Information Mappin' is no/ a core element ofthe blac1 belt trainin' curriculum and has become the standard for (AA Si&Si'ma solutions that /ill be communicated to the field.



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T0e Six Sigma R/adma-

8he ideal oadmap for establishin' the Si& Si'ma system is as follo/s.

Identify core processes and 1ey customer

Define customer re;uirements

Measure current performance

Prioriti


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Six Sigma Qua&it5 T//&s and Tem-&ates

(ffinity Dia'ram

?rainstormin'>alculators>ause X @ffect # Ishi1a/a # Eishbone>harters>ontrol >harts>ontract Mana'ement Soft/are>reativity # ,ut of the ?o& 8hin1in'Desi'n ,f @&perimentDocument >ontrolElo/ >hart # Elo/ >hartin'EM@( # is1 (ssessmentGlossaries

isto'ramano (nalysis

,r'ani Dia'ramSoft/areSupport and estraintSurveys +Y-

8hin1in' ,ut ,f 8he ?o&Ee/ of the above is as follo/s

JARO EDUCATION MUMBAI BATCH JAN13 | PROJECT REPORT ON +
http://www.isixsigma.com/tt/affinity_diagram/http://www.isixsigma.com/tt/brainstorming/http://www.isixsigma.com/tt/calculators/http://www.isixsigma.com/tt/cause_and_effect/http://www.isixsigma.com/tt/charter/http://www.isixsigma.com/st/control_charts/http://www.isixsigma.com/tt/contract_management_software/http://www.isixsigma.com/tt/out_of_the_box/http://www.isixsigma.com/tt/doe/http://www.isixsigma.com/me/document_control/http://www.isixsigma.com/tt/process_mapping/http://www.isixsigma.com/tt/fmea/http://www.isixsigma.com/tt/glossary/http://www.isixsigma.com/tt/histogram/http://www.isixsigma.com/tt/kano/http://www.isixsigma.com/tt/organizing_data/http://www.isixsigma.com/st/online_textbooks/http://www.isixsigma.com/tt/pareto/http://www.isixsigma.com/tt/poka_yoke/http://www.isixsigma.com/tt/process_mapping/http://www.isixsigma.com/tt/charter/http://www.isixsigma.com/tt/qfd/http://www.isixsigma.com/tt/scatter_diagram/http://www.isixsigma.com/tt/sipoc/http://www.isixsigma.com/tt/software/http://www.isixsigma.com/tt/support_and_restraint/http://www.isixsigma.com/vc/http://www.isixsigma.com/tt/out_of_the_box/http://www.isixsigma.com/tt/affinity_diagram/http://www.isixsigma.com/tt/brainstorming/http://www.isixsigma.com/tt/calculators/http://www.isixsigma.com/tt/cause_and_effect/http://www.isixsigma.com/tt/charter/http://www.isixsigma.com/st/control_charts/http://www.isixsigma.com/tt/contract_management_software/http://www.isixsigma.com/tt/out_of_the_box/http://www.isixsigma.com/tt/doe/http://www.isixsigma.com/me/document_control/http://www.isixsigma.com/tt/process_mapping/http://www.isixsigma.com/tt/fmea/http://www.isixsigma.com/tt/glossary/http://www.isixsigma.com/tt/histogram/http://www.isixsigma.com/tt/kano/http://www.isixsigma.com/tt/organizing_data/http://www.isixsigma.com/st/online_textbooks/http://www.isixsigma.com/tt/pareto/http://www.isixsigma.com/tt/poka_yoke/http://www.isixsigma.com/tt/process_mapping/http://www.isixsigma.com/tt/charter/http://www.isixsigma.com/tt/qfd/http://www.isixsigma.com/tt/scatter_diagram/http://www.isixsigma.com/tt/sipoc/http://www.isixsigma.com/tt/software/http://www.isixsigma.com/tt/support_and_restraint/http://www.isixsigma.com/vc/http://www.isixsigma.com/tt/out_of_the_box/


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Is Six Sigma Rig0t ./r Us N/6 9

Assessing #/ur Six Sigma Readiness

In its most ambitious application0 Si& Si'ma can be a more fundamentalchan'e than0 say0 a major ac;uisition or a ne/ system implementations0because Si& Si'ma affects ho/ you run the business. 8he depth of impact onyour mana'ement processes and s1ills /ill vary0 of course0 /ith ho/e&tensively you /ant to apply Si& Si'ma tools and the results you are see1in'.

8he startin' point in 'earin' up for Si& Si'ma is to verify that you are ready toor need to embrace a chan'e that says 8here is a better /ay to run ouror'ani


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Chere are the best opportunities for improvemento/ effective are our customer 1no/led'e and measurement systems

Re%ie6ing S5stems and !a-a4it5 ./r !0ange and Im-r/%ement

( third major factor in decidin' /hether to launch Si& Si'ma is theor'ani


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W0en Six Sigma is N/t Rig0t ./r an OrganiKati/n

Si& Si'ma can be applied as a tar'eted approach0 so a limited implementation

may al/ays be feasible. Nevertheless0 /e can loo1 at the flipside of the

precedin' assessment to identify conditions in /hich it probably /ould be best

to say No than1sH for Si& Si'ma efforts. >onditions that mi'ht indicate a no

'oH decision on Si& Si'ma include the follo/in':

Kou already have in place a stron'0 effective performance and process

improvement effort. If there are systems and tools in place to support

on'oin' problem solvin' and process desi'n#redesi'n0 Si& Si'ma may not

add much value and mi'ht even confuse people.

>urrent chan'es already are over/helmin' your people and#or resources.

(n or'anian /e come up /ith a stron' strate'ic rationale for applyin' Si& Si'mato our business

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Cill our e&istin' improvement systems and methods be capable ofachievin' the de'ree of chan'e needed to 1eep us a successfulcompetitive or'ani


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Six Sigma Training

Si& Si'ma 8rainin' is one of the most important factors that contributes to andhelps modify and shape an or'ani@,0 >I,0 >E, andpeers-0 are the individuals that set0 communicate and drive the overallbusiness objectives. 8hey are also the individuals that are re;uired toincorporate Si& Si'ma objectives into their operational plans. @&amples of

objectives mi'ht include:

U7 of employees throu'h Si& Si'ma trainin' by a certain date K7 reduction in defects for all customer visible processes by ;uarter end ZW in bac1 office projects savin's by year end

Si& Si'ma trainin' for Senior Mana'ement should include a pro'ram overvie/0business and financial benefits of implementation0 real /orld e&amples ofsuccessful deployments0 specific application to business#industry0 and there;uired Si& Si'ma trainin' and tools to ensure successful implementation.Dependin' on Senior Mana'ement time availability and their desire to learnthe details0 ?lac1 ?elt trainin' is also recommended.

:$ Fun4ti/na& ' Pr/4ess Managers

Eunctional and Process Mana'ers are the level of mana'ement directlyreportin' to the Senior Mana'ement. Dependin' on the si


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concept0 methodolo'y0 tools and re;uirements to ensure successfulimplementation /ithin their or'ani


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Training t0e OrganiKati/n ./r Six Sigma

Si& Si'ma is essentially a comprehensive yet fle&ible system for achievin'0supportin'0 and ma&imi


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8his is a most concise summary of the Si& Si'ma method and process and is ahandy reference 'uide for everyday use. It includes e&planations of: /hy ite&ists0 the si'ma objectives0 the statistical basis +in easy to understandlan'ua'e-0 the certifications0 and ho/ to use it to improve.

=$ T0e Six Sigma Training Tut/ria&

8his e&tensive document is nothin' short of a full tutorial on the topic.Sections include: 8he istory of Si& Si'maJ Si& Si'ma >osts and Savin'sJ Chatis Si& Si'ma J >ritical to ualityO>8 J Chy is DM(I> Si'nificant in Si& Si'ma J?enefits of Implementin' Si& Si'maJ Cho (re the Si& Si'ma Practitioners JDesi'n for a Si& Si'ma oadmap.

>$ A Re1uirements Tem-&ate

,ne of the most important aspects in underta1in' any major initiative is tounderstand /hat the re;uirements for the initiative are. 8his e&cellenttemplate document is desi'ned specifically to assist /ith this tas1.

@$ T0e Six Sigma T/- D/6n N/te,//7

8his document is desi'ned to e&plain ho/ to approach Si& Si'ma /ithin anor'ani


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Large /rganiKati/ns t0at 0a%e ad/-ted six sigma

8hese are some the lar'e Indian and International or'ani


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Use Six Sigma T//&s t/ Meet ISO Re1uirements

,ne of the major differences bet/een both systems is that IS, $""" is a shellof re;uirements /ithout any tools0 /hereas Si& Si'ma is a methodolo'yconnectin' tools and procedures for applyin' these tools throu'h a )redthread.) e;uirements of IS, $""":4""" are0 for e&ample:

Define ;uality mana'ement information needs

>ollect ;uality mana'ement system data

Provide ;uality mana'ement information

Improve ;uality mana'ement system

8ools provided by Si& Si'ma to meet these re;uirements are0 for e&ample:

Dashboards as a set of 1ey performance indicators to monitor all processes ata reasonable de'ree for all relevant mana'erial levels.

,perational definitions to describe e&actly ho/0 /hen0 /here0 /ith /hichtools0 by /hom0 ho/ often and ho/ much data should be collected.(dditionally0 Si& Si'ma provides tools to address such ;uestions as samplesi


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Use t0e ISO Frame6/r7 t/ Assess a Six SigmaS5stem

Aoo1in' at the ne/ IS, $""":4""" re;uirements and comparin' thesere;uirements /ith the self developed Si& Si'ma 'ap analysis sho/s thepossibility of connectin' both approaches and systems /ith each other. Si&Si'ma does not come /ith the assessment tool per se. 8his tool needs to beadded after a certain time frame in order to 1eep the ball rollin' and in orderto help Si& Si'ma 'et into the company9s bloodstream. IS, $""" is desi'nedto assess companies based on both e&ternal and internal re;uirements and tohelp close the 'aps on a mid term and lon' term basis. ?y addin' typical Si&Si'ma re;uirements to the IS, $""":4""" internal audit ;uestionnaires0 acompany can ma1e Si& Si'ma part of its ;uality mana'ement system andimprove the effectiveness and efficiency of the Si& Si'ma initiativesi'nificantly. ( side effect is that both approaches 'et ali'ned and do not

compete for resources any lon'er. Since the 'oals of the t/o approaches arethe same0 there is a 'reater li1elihood of an increase in bottom line and topline results on a lon' term basis to increase customer satisfaction andemployee commitment.

!/n4&usi/n Im-r/%e !redi,i&it5 and Sustaina,i&it5

It is a /aste to have a ;uality mana'ement system and process improvementapproach e&istin' side by side /ithout any inte'ration. (li'nin' IS, $""" andSi& Si'ma can help improve the credibility of the IS, $""" ;ualitymana'ement system and the sustainability of the Si& Si'ma initiative at the

same time. It can save resources and investmentsJ and it enriches the /ay tomana'e the business.



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Six Sigma and Qua&it5 Management "&/ssar5

Many of these terms are very specifically related to Si& Si'ma. ,thers areused in a 'eneral 9;uality mana'ement9 conte&t and also in Si& Si'ma. (salready e&plained0 Si& Si'ma tends to embrace many other methodolo'ies. (fe/ of these terms are ;uite technical since they occur in the statistical0en'ineerin' and mathematical aspects of Si& Si'ma. 8he more comple&mathematical terms and acronyms are included in this 'lossary not to providedetailed e&planations0 but instead to enable initial reco'nition and a basis forfurther investi'ation0 if you are so inclined. 8his small 'lossary is note&haustive because it /ould ta1e about ten years to compile an e&haustiveSi& Si'ma and uality Mana'ement 'lossary. 8his is just a fe/ hi'hli'hts0some points of clarification0 /ords of /arnin'0 items of mild amusement0 andterms of special note. 8he really obvious S8?, terms have not been included.If you need a more detailed listin' try the one on the Si& Si'ma /ebsite /hichcould 1eep you occupied for days. If you /ish to nominate an item of Si&Si'ma or uality Mana'ement terminolo'y for inclusion here especially anamusin' or intri'uin' e&ample please send to me . Despite bein' completelyfascinatin' of course0 Si& Si'ma is possibly is one of the driest subjects I9veever encountered and so /ill benefit from as much li'ht relief as you cansu''est.

A44e-tan4eC and a44e-ta,&e 1ua&it5 &e%e& A!LG (cceptance has at leastt/o different meanin's in Si& Si'ma terminolo'y0 so be careful to understand/hich one is bein' referred to. Eirstly0 acceptance relatin' to ;uality is the;uality e&pectation of the customer0 internal or e&ternal. (cceptable ualityAevel +(>A- means the same basically0 in more formal Si& Si'ma spea10 and/hich /ill fre;uently be e&pressed in terms of percenta'e defects. Secondlyacceptance refers to the buy in or a'reement of people affected by proposedactions and chan'es0 notably sta1eholders . Chile not strictly part of the Si&Si'ma battery of supportin' tools0 I can stron'ly recommend Sharon Dre/Mor'an s facilitative communications concepts for anyone stru''lin' /ithsta1eholder acceptance +and /holesale or'ani.

http://www.businessballs.com/acronyms.htm#stbo%20acronymshttp://www.businessballs.com/sixsigma.htm#six%20sigma%20free%20website%20resources%23six%20sigma%20free%20website%20resourceshttp://www.businessballs.com/contactus.htmhttp://www.businessballs.com/sixsigma.htm#six%20sigma%20stakeholders%20definitions%23six%20sigma%20stakeholders%20definitionshttp://www.businessballs.com/innovationdecisionmakingfacilitation.htmhttp://www.businessballs.com/innovationdecisionmakingfacilitation.htmhttp://www.businessballs.com/brainstorming.htmhttp://www.businessballs.com/brainstorming.htmhttp://www.businessballs.com/acronyms.htm#stbo%20acronymshttp://www.businessballs.com/sixsigma.htm#six%20sigma%20free%20website%20resources%23six%20sigma%20free%20website%20resourceshttp://www.businessballs.com/contactus.htmhttp://www.businessballs.com/sixsigma.htm#six%20sigma%20stakeholders%20definitions%23six%20sigma%20stakeholders%20definitionshttp://www.businessballs.com/innovationdecisionmakingfacilitation.htmhttp://www.businessballs.com/innovationdecisionmakingfacilitation.htmhttp://www.businessballs.com/brainstorming.htmhttp://www.businessballs.com/brainstorming.htm


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Ana&5sis (nalysis of all sorts of data is a critical component /ithin the Si&Si'ma model0 /hich involves usin' various analytical methods to identify and;uantify the causes of ;uality variation and failure in specific processes.

arious analysis perspectives are adopted0 for e&ample:

Dis4rete loo1in' at a particular failure or problem e'.0 usin' Pareto+96":4"9- or pie charts to sho/ causes by percenta'e

continuous mappin' performance variation and types0 etc.0 over time0 usin'distribution 'raphs

Pr/4ess creatin' detailed flo/ dia'rams to understand /hat9s really 'oin'on in the process or sub process

(N, (0 (N>, (0 M(N, (0 M(N>, ( Despite first impressions these arenothin' to do /ith ussian 'ymnastics or ice s1atin' moves. (N, ( is anacronym for analysis of variance0 a speciali


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Business im-r/%ement 4am-aign ( Motorola Si& Si'ma buommonly used abbreviation in Si& Si'ma activities andcommunications0 it means Desi'n Eor Si& Si'ma0 and describes the method ofusin' tools0 trainin'0 measurements0 and verification so that products andprocesses are desi'ned at the outset to meet Si& Si'ma re;uirements. ( morespecific version is DM(D : Define0 Measure0 (nalyentral Si& Si'ma process and acronym to ensure youremember it: Define0 Measure0 (nalyse Improve0 >ontrol0 more recently

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e&tended to DM(I>8 by others in the Si& Si'ma consultin' and trainin'communities0 to 8ransfer +transfer best practice and thereby share learnin'-.

DM(D (n alternative#substitute abbreviation to DESS +Desi'n Eor Si&Si'ma-0 and li1e DESS DM(D is central to Si& Si'ma initiatives. DM(D morespecifically describes a method comprisin' lin1ed stepsJ Define0 Measure0(naly


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computeri


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Pr/du4ti/n P&anning 'eneric term describin' the over archin'methodolo'y used in mana'in' the supply process from receipt +or forecast-of customer re;uirements throu'h to delivery notes and invoicin'. Productionplannin' therefore includes:

interpretation of customer orders#re;uirements/or1s ordersschedules and computer pro'rams# implicationsparts0 stoc1s and materialsmachinery0 plant0 e;uipment availability and allocationpeople and teams;uality and other tar'ets settin' and monitorin'stoc1 and purchasin' monitorin' and recordsorder processin'0 administration and accountin'necessary inter departmental liaison +e.'.0 sales0 e&port0 etc-

Production plannin' is typically hi'hly modulari


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Si'ma implementations0 because of the predominance of Si& Si'ma teamleaders /ith stron' process s1ills and attention to detail0 /hich can sometimesbe at odds /ith the abilities of intuition0 empathy0 rapport buildin'0relationship buildin'0 and other 9soft9 people s1ills.

Sta7e0/&der vitally important aspect0 this one: sta1eholders are not justcustomers0 sta1eholders are all the people /ho are affected by the solutionsidentified /ithin a Si& Si'ma project0 and all the people /ith someinvolvement in implementin' the solutions.

T/&&gates brea1s for revie/ bet/een Si& Si'ma processes /ithin any of theDM(I> sta'es.

Tree Diagram pictorial representation of ho/ a broad aim is bro1en do/ninto detailed actions0 and /hich belon' to named individuals or departments.( mappin' techni;ue that promotes creative thin1in' to/ards detailed causesand effects and accountabilities. elps to avoid tendencies for activities andaccountabilities to be left too va'ue.

U9s#bi' U9s Motorola Si& Si'ma spea1 for factors or variables that have the'reatest impact on the 9bi' K9s9.

K9s#bi' K9s Motorola Si& Si'ma spea1 for the most important business resultsand measures that are lin1ed to critical customer re;uirements ande&pectations.

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!ase Stud5 Six Sigma Im-&ementati/n in B0artiBr/ad,and

?harti ?roadband Net/or1s +??NA- is a leadin' inte'rated broadband service

provider operatin' in the broadband0 Internet and S(8 mar1ets. It providescustomised and inte'rated solutions to corporate customers. 8he companyhad a 'oal of deliverin' error free services to customers by doin' the job ri'htthe first time0 every time.

Cith the ;uality objective havin' been decided0 an e&ecutive committee +@>-comprisin' nine officials0 includin' the >@,0 /as formed. 8he committeestudied various other ;uality tools and processes li1e IS, and 8 M in additionto Si& Si'ma. 8he choice for Si& Si'ma /as made as it /as closely ali'ned /iththe outlined ;uality objective. (ccordin' to (sho1 Buneja0 >@,0 ??NA0 )Cerealised that the telecom industry is under'oin' rapid chan'e and so arecustomer re;uirements. Si& Si'ma met the re;uirements of this chan'in'environment.) 8here /ere already several case studies of successful Si&Si'ma implementations in lar'e companies li1e G@0 Motorola0 Cipro0 8>S andSatyam.

Ma7ing t0e 4ust/mer a -ri/rit5

avin' decided upon IG@ as the consultant0 the Si& Si'ma initiative /asformally launched in Bune 4""% /ith the ta'line: 9Si& Si'ma my customer0 mypriority9. 8he company has outlined that improvin' customer satisfaction is the

business objective for first year of the initiative. 8he e&ecutive committeeidentified the processes that /ere in conjunction /ith this focus area.

In the first phase0 critical business processes /ere ali'ned /ith businessobjectives. 8he critical objectives identified are customer satisfaction0employee satisfaction0 improvin' revenue and free cash. Eirst0 the projects/ith processes mapped a'ainst these objectives /ere to be underta1en. (ndthen the ;uality improvement projects for e&istin' and ne/ products /ere tobe underta1en. (lmost 65 percent of Si& Si'ma projects at ??NA are based oncustomer satisfaction.

( cross functional team /as formed to tac1le each project. 8he teamcomprises a sponsor0 a leader and four to five team members. 8he leader0 alsocalled the 9>hampion9 can be either a Green ?elt or ?lac1 ?elt. 8he durationfor each project can ran'e bet/een three to four months. Eor the first phasethe team chose !5 critical projects that offered substantial 'ains. ?lac1 ?eltsare involved full time in the ;uality improvement process /hile Green ?eltsspend around 6 !" percent of time on ;uality improvement. ( ?lac1 ?elt canbe en'a'ed in t/o to three different projects simultaneously.



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@ach project follo/s a five phase methodolo'y. 8hese include definin' and;uantifyin' the problem0 measurin' the defect rate0 i.e. the baseline. 8his isfollo/ed by the analysis phase /here analysis is done on /hen0 /here andho/ the defects occur. 8he fourth step is improvement0 findin' probablesolutions and applyin' them. 8he final step is control in terms of sustainin'the improvements. ??NA is applyin' Si& Si'ma to processes for timelycomplaint resolution0 timely order implementation0 timely invoice submissionand N,> complaint resolution.Chen the teams started measurin' critical business processes they found thatthe baseline /as not as per customer e&pectations. 8here /ere 'aps ofaround %" *" percent in some processes. 8he baseline havin' been measured0tar'ets /ere set for improvin' the processes. (fter analysin' defects0 processimprovement 1ic1s in. Simplifyin' the process instead of chan'in' the entireprocess brin's in the improvement. 8he tool essentially re;uires fine tunin'the process and eliminatin' those that do not add value. )Chen you aresimplifyin' the projects productivity 'oes up /ithin the same resources0thereby leadin' to optimum utilisation of the resources0) says Buneja. ,ne ofthe /ays of simplifyin' processes is to use I8 for automatin' processes.

8he e&ecutive committee continuously monitors the projects. 8here aremonthly revie/s carried out by the >hampion0 Sponsor and IG@. ( ;ualitydashboard has also been created0 /herein every month performance isreported. 8he >@, and the >,, monitor /hether the objectives are bein'met.

Bene.its

In si& months ??NA had achieved timely complaint resolution 33 percent fromthe baseline0 timely order implementation up " percent from baseline0 timelyinvoice submission up 5! percent from baseline and N,> complaint resolutionthat /as *$ percent from baseline. 8he Si& Si'ma process improvements havetranslated into productivity enhancements0 improved customer satisfactionand process effectiveness. ??NA is tar'etin' an estimated savin' of around s!" crore in the first year of operation.

8he tar'et /as to achieve $$ percent +i.e. appro&imately four Si'ma level-+9Eirst 8ime i'ht9- /ith respect to respective set norms by March 4""* on all1ey critical processes. Since Si& Si'ma is a continuous improvement initiative0

the company /ill be underta1in' another business objective for the ne&tfinancial year. ,n the future roadmap are Si& Si'ma for all processes andhi'her @ S(8 +employee satisfaction- and > S(8 +customer satisfaction- inde&.??NA plans to 'et almost $" percent of the employees to be Green ?elts by4""50 /ith almost !"" percent of the employees to be involved in the Si&Si'ma journey by the same time.

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Project Report Six Sigma

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