7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 1/15

To study the importance

of six-sigma in the

business world

Presented by 

 Akshay D. Manjarekar 16 - A 

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 2/15

To know about the Six Sigma Methodology in detail

To understand the benefits of Six Sigma in reducing the non-value

adding costs

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 3/15

Secondary Data from

• Internet

• Trade Magazines

• Books

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 4/15

A statistical basis of measurement: 3.4 defects per millionopportunities

A philosophy and a goal: as perfect as practically possible

A methodology

A symbol of quality

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 5/15

Since 1920's word 'sigma' was been used for measurement of variationin product quality

In 1980's engineers in Motorola Inc. used 'Six Sigma' for reducingdefects in production processes

In 1991 Motorola certified its first 'Black Belt' Six Sigma - Training of Six Sigma methods

In 1995 General Electric's implemented ‘Six Sigma’ – cost saving of ¾of billion dollars

In mid-1990's Six Sigma developed into transferable 'branded'corporate management initiative and methodology

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 6/15

Cost reduction

Productivity Improvement

Market share growth

Customer retention

Cycle-time reduction

Defect reduction

Culture change

Product/service development

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 7/15

For existing products or processes:-

DMAIC

Define - Define the project goals and the requirements of externaland internal customers.

Measure - Measure the process and assess current performance levels.

Analyse - Analyse and understand the root causes of the defects.

Improve - Improve the process by eradicating the defects.

Control - Control future process performance.

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 8/15

For new products or processes:-

IDOV

Identify - Involves understanding customer needs and convertingthem into new product requirements.

Design - Converts customer requirements into product specifications.

Optimise - Optimises the design using various statistical and simulationtools.

Validate - Involves testing to check if the product meets its purposewhile maintaining quality costs and ease of manufacturing.

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 9/15

Metrics - the groundwork of Six-Sigma

Management support

Problem solvers and team leaders

Intensive training Utilisation of team strengths

Healthy competition

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 10/15

Company Name  Year Revenue ($B) Invested ($B) Savings ($B)

Motorola 1986-2001 356.9 ND 16

Allied Signal 1998 15.1 ND 0.5

GE 1996-1999 382.1 1.6 4.4

Honeywell 1998-2000 72.3 ND 1.8

Ford 2000-2002 43.9 ND 1

Figures as per the annual reports of the respected companies

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 11/15

Most MNCs in India like have Six Sigma built into their systems

The most significant program undertaken by an Indian companyis by Wipro

Few other Indian Companies following Six Sigma:-• Asian paints• Pidilite• Whirlpool• L&T switchgear• Reliance Patalganga• TVS Suzuki

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 12/15

Six Sigma is a critical business tool for the 21st century.

Six Sigma initiatives aim at reduction of process variations and defects usingthe DMAIC & IDOV methodology.

It inculcates the approach of economic and innovative solutions by involvingall the concerned people, with appropriate training and teamwork.

Six Sigma gives an opportunity for all to contribute at a higher, morestrategic level in the corporation.

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 13/15

Implementation of Six Sigma should be applied to entire organization notin silos

Use Six Sigma to improve existing process

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 14/15

en.wikipedia.org/wiki/List_of_Six_Sigma_companies

www.isixsigma.com › Forums › Old Forums › General

http://www.sixsigmatraining.org/introduction-to-six-sigma/what-is-six-sigma.html

Six Sigma Forum Magazine

The Six SIGMA Way: How GE, Motorola, and Other Top Companies AreHoning Their Performance

7/29/2019 To study Importance of SIX SIGMA in business world

http://slidepdf.com/reader/full/to-study-importance-of-six-sigma-in-business-world 15/15