introduction of sixsigma

8/2/2019 introduction of sixsigma

1/15

Introduction ofSix sigma

For International Domain ofIT and BPOCompanies

- Vision Ravalwww

.visio

nha

nc

er

.com


2/15

Index

What is Six sigma

Why you need Six sigma

Where you can improve by using Six sigma.

Which results you can expect by implementing six sigma

How to impliment Six sigma

Process Flow of Implimentation

www.visionhanc


3/15

What is Six sigma

Six Sigma is a process based methodology for pursuing continuous improvement.Companies use this methodology to reduce defects in their processes.

Six Sigma today is used across a wide range of industries like banking, businessprocess outsourcing, telecommunications, insurance, construction, healthcare,and software. Many global companies like General Electric, Motorola, AlliedSignal, Honeywell, Honda, Sony, Cannon, Polaroid, Texas Instruments andWhirlpool are using the Six Sigma methodology.

Companies measure their performance by the sigma level of their businessprocesses. Initially, companies accepted three or four performance levels as thestandard. These processes created 6210 to 66,800 defects /per millionopportunities. The sigma level of 3.4 defects per million opportunities is areaction to increasing customer expectation and the fact that business processesand products are becoming increasingly complex and competitive.

The primary aim of Six Sigma is to focus on the customer first and then use factsand data based on customer requirements to get better results or improve theprocess. Thorough understanding of the process and the product drives thebusiness and fulfils customers expectations.

www.visionhanc


4/15

What is Six sigma

For example, a pizza home delivery company goes with a thumb

rule of delivering a pizza within 30 minutes. In case the pizzadelivery boy fails to deliver it within 30 minutes, the customer willget a 50% discount on his next purchase. (And it is considered asa defect on the part of the company.) If only 65% of the pizzas aredelivered on time, the process will be at level 2 sigma. If 92%

pizzas are delivered on time, the companys performance is atlevel 3 sigma. If the company delivers 99.4% of the pizzas ontime, the companys performance is at level 4 sigma.

If the pizza company wants to be at level 6 sigma, it has to

deliver pizzas within a level of 99.9997% accuracy.

Sigma, , is the Greek letter used to measure the variability in theprocess. Six Sigma stands for Six Standard Deviations from mean.Standard Deviation is a statistical method to define how muchvariation exists in a set of data or a process.

That means a process efficiency of 99.9997%.

www.visionhanc


5/15

Why you need Six sigma?

Define right strategy which suits to your companyskill set.

Analyze Manpower psychology to judge right

method of Implementation.

Measure your strength and capability to minimizeerrors and maximize quality productivity

Improve and Enhance work flow, and process

matrix to ensure highest sigma controls.Control entire management flow by departmentspecific reporting system.

www.visionhanc


6/15


In an organization seeking consistency in their processes; Six Sigma

plays a very important role in the promotion and establishment of suchprocesses. Six Sigma works towards improvement of existing processes.

It is difficult to briefly describe the ways in which Six Sigma may beinterconnected with other initiatives (or vice versa). But someunderstanding can be gained from the following:

The Six Sigma toolkit comprises of many techniques that are alreadyapplicable to some software and are directly being used by the softwareindustry. For instance, "Voice of the Client" and "Quality FunctionDeployment" is useful for developing customer requirements. There arenumerous charting/calculation techniques that can be used to scrutinize

cost, schedule, and quality data as a project proceeds. As far as thetechnical development is concerned, quantitative methods are used forrisk analysis and concept/design selection. The efficacy of "Six Sigmatherefore comes from deliberately and consciously deploying the tools insuch a way that the customer is fully satisfied.

www.visionhanc


7/15


www.visionhanc

CMM CMMISM, PSPSM/TSPSM are some of the improvementapproaches that either complement Six Sigma or mutuallysupport it. Technologies like the Goal-Question-Metric (GQM),Initiating-Diagnosing-Establishing-Acting-Leveraging (IDEALSM),and Practical Software Measurement (PSM) shows some

adaptability and coherence with Six-Sigma.

The GQ(I)M technology merges well with the Define-Measuresteps of Six Sigma. Many common features are shared by IDEALand Six Sigma. IDEALSM mainly focuses on changemanagement and organizational issues whereas Six Sigma dealswith more of tactical, data-driven analysis and decision making.

PSM provides a software-tailored approach to measurement thatmay well serve the Six-Sigma improvement framework.


8/15

Where you can improve by using

Six sigma.Productivity

Efficiency

Quality

Accuracy

Execution

Branding

Client base

www.visionhanc


9/15

Which results you can expect byimplementing six sigma

More focused and target oriented manpowerinvestment

Improved capability and skill matrix accordingto market trend

Create accurate reporting cycle for end to endprocess control

Create value for clients in terms of reportingand quality execution

Manage right resources at right placesaccording to their skill set

Organize team with proper supervisory andfocused operation

www.visionhanc


10/15

How to Impliment Six sigmaIn todays modern day scenario, it is very important to track down the simple metrics, manipulate and improve numbers. Theconcept of Six Sigma and other methodologies not only measures site activity but also strive to understand the factors affecting themetrics. Six Sigma is referred as a business-driven, multi-faceted approach, which focuses primarily on process improvement,reduced costs, and increased profits.

Common Six Sigma metrics include defect rate (parts per million or ppm), sigma level, processcapability indices, defects perunit, and yield. Many Six Sigma metrics can be mathematically related to the others.

Defect Rate

The complimentary measurement of yields is defects. If the yield is 90 percent, naturally there must be 10 percent defects.

Sigma Level

From a quality perspective, Six Sigma is defined as 3.4 defects per million opportunities. This is called a sigma level of quality.

Process Capability Indices

Another set of measures exist to quantify the capability of a process or characteristics to meet its specifications. These indicesdirectly compare the voice of the process to the voice of the customer.

Defects Per Unit

DPU provides a measurement of the average number of defects on a single unit.

Yield

Traditionally, yield is the proportion of correct items you get out of a process compared to the number of raw items you put into it.

With the fundamental conviction and drive to improve customer satisfaction by reducing defects, the foremost aim of Six Sigma is toresult in defect-free processes and products (3.4 or fewer defective parts per million (ppm). The process to achieve this goalconsists of various steps in the Six Sigma methodology, including "Define - Measure - Analyze - Improve - Control".

ww

w.v

isio

nh

an

c

er.com


11/15

Top management plays a very important role in the entire Six Sigma deploymentprocesses. Therefore it is very important that in the initial phase of implementation ofthe Six-Sigma program, it should be fully accepted by the employees and they should

show full commitment towards the steps of improvement. In the initial phase,development of a thorough infrastructure would help the functioning of the deploymentprocess, and manage the implementation process. This phase should be developed asfollows:

Establish Leadership Commitment and Involvement

The Six Sigma implementation processes must involve the top-level management.Total commitment and involvement must be there throughout the implementationprocess.

Senior management must assign a Management Champion to lead the Six Sigmaimplementation and make him the authoritative head for the entire Six Sigma project inthe organization.

Form a Core Team

The Top management is responsible for forming a Six Sigma Core Team. TheManagement Champion heads the Core Team.

The main role of the Core Team is to develop and manage the Six Sigmaimplementation and to assure the readiness of the organization for the implementation.

Process Flow of Six SigmaImplimentation

www.visionhanc


12/15

Team up with outside Quality Facilitators

Assistance can be taken from experienced quality facilitators for theimplementation process, especially for SMEs (small and medium enterprises)

The facilitators coaches the Core team in deploying Six Sigma implementationand in providing necessary training for all Six Sigma project participants.

Provide Six Sigma Deployment Training

To understand the benefits and general approach of the Six Sigmaimplementation, the top management and the core team should attend anoverview on Six Sigma.

The Core Team should attend the training on Six Sigma development,

deployment, and management.

Schedule Periodic Top Management Reviews

Reviews must be scheduled periodically in the initial stages of the Six Sigmaprogram including the defining, developing, and implementing.

The top management must be informed about the activities involved in the SixSigma implementation.


www.visionhanc


13/15


In this phase, the gaps are identified between current process performance andthe business goals. The gaps are further transformed into improvement projects,

and an integrated system is established to support the implementation.

Define Business Goals based on Organizations Strategic Plan

The organization's purpose, structure, and flow, including interfaces with otherorganizations and primary customers must be fully known by the Core team.

It is very important to understand the corporate policies and procedures thataffect the Six Sigma Quality Management System (QMS).

The short-term and long-term business goals must be defined by the Core team.These goals must be based upon the organization's strategic plan.

Identify the Existing Processes Performance

It is important to identify the overall process of the organization, showing howproducts or services are created and supplied to the customers.

The Core Team must perform a high-level gap analysis.

After the performance, the gap analysis results have to be further reviewed bytop management. www.visionhanc


14/15

Define Six Sigma Improvement Projects

The scope and the goals of Six Sigma improvement projects are defined based on thegap analysis, which should include: process management, human resourcedevelopment, training system, quality tools, supplier management, and customermanagement.

Create Performance Measures for all Six Sigma Projects

The detailed performance measures for all Six Sigma projects are defined based uponthe gap analysis.

These performance measures should be consolidated into an organizational informationystem.

The organizational information system is enhanced in order to provide the informationabout individual project progress and the overall Six Sigma implementationperformances.

Establish an Incentive/Recognition System

An incentive/recognition system is essential to Six Sigma implementation.

Top management is responsible for designing a system to motivate employees in the SixSigma implementation.


www.visionhanc


15/15

Thank You

Vision RavalSix sigma Black Belt,MBA

M919898330717www.visionhancer.

introduction of sixsigma

Documents