SIX SIGMA

Presented By :SUSHANT AHIRE

QAT (101)
 Introduction to six sigma:

Sigma represents the population standard deviation, which is

a measure of the variation in a data set collected about the
process. If a defect is defined by specification limits
separating good from bad outcomes of a process, then a six
sigma process has a process mean (average) that is six
standard deviations from the nearest specification limit. This
provides enough buffer between the process natural variation
 and the specification limits.
 History of six sigma
The roots of Six Sigma as a measurement standard can be
traced back to Carl Friedrich Gauss (1777-1855) who
introduced the concept of the normal curve. Six Sigma as a
measurement standard in product variation can be traced back
to the 1920’s when Walter Shewhart showed that three sigma
from the mean is the point where a process requires
correction.
Six Sigma (6σ) is a set of techniques and tools for process
improvement. It was introduced by engineer Bill Smith while
working at Motorola in 1986. Jack Welch made it central to
his business strategy at General Electric in 1995
 Definition of six sigma
•It is a set of management techniques intended to improve
business processes by greatly reducing the probability that an
error or defect will occur.

•Six Sigma is a method that provides organizations tools to

improve the capability of their business processes. This
increase in performance and decrease in process variation lead
to defect reduction and improvement in profits, employee
morale, and quality of products or services. Six Sigma quality
is a term generally used to indicate a process is well controlled
 Goals of six sigma
•The goal of Six Sigma is to increase profits by eliminating
variability, defects and waste that undermine customer loyalty

•The main goal of any Six Sigma implementation is quality

improvement.

•At its core, the purpose of Six Sigma is to measure and

eliminate defects in manufacturing and development. While
some managers use Six Sigma to increase efficiency, the most
successful companies rely on the system to reduce customer
complaints and product malfunctions.
 Methodology
Six Sigma projects follow two project
methodologies inspired by Deming's 
Plan-Do-Study-Act Cycle. These
methodologies, composed of five phases
each, bear the acronyms DMAIC and
DMADV.
 The DMAIC project methodology has five phases:
•Define the system, the voice of the customer and their requirements,
and the project goals, specifically.
•Measure key aspects of the current process and collect relevant data;
calculate the 'as-is' Process Capability.
•Analyze the data to investigate and verify cause-and-effect
relationships. Determine what the relationships are, and attempt to
ensure that all factors have been considered. Seek out root cause of the
defect under investigation.
•Improve or optimize the current process based upon data analysis using
techniques such as design of experiments, poka yoke or mistake
proofing, and standard work to create a new, future state process. Set up
pilot runs to establish process capability.
•Control the future state process to ensure that any deviations from the
target are corrected before they result in defects. Implement 
control systems such as statistical process control, production boards,
visual workplaces, and continuously monitor the process. This process is
repeated until the desired quality level is obtained.
 The DMADV project methodology, known as DFSS
("Design For Six Sigma"), features five phases:

•Define design goals that are consistent with customer demands

and the enterprise strategy.

•Measure and identify CTQs (characteristics that

are Critical To Quality), measure product capabilities, production
process capability, and measure risks.

•Analyze to develop and design alternatives

•Design an improved alternative, best suited per analysis in the

previous step

•Verify the design, set up pilot runs, implement the production

process and hand it over to the process owner(s).
 Six Sigma identifies several key roles for its successful
implementation.

•Executive Leadership includes the CEO and other members

of top management. They are responsible for setting up a
vision for Six Sigma implementation. They also empower the
other role holders with the freedom and resources to explore
new ideas for breakthrough improvements by transcending
departmental barriers and overcoming inherent resistance to
change.

•Champions take responsibility for Six Sigma implementation

across the organization in an integrated manner. The
Executive Leadership draws them from upper management.
Champions also act as mentors to Black Belts.
•Master Black Belts, identified by Champions, act as in-house
coaches on Six Sigma. They devote 100% of their time to Six
Sigma. They assist Champions and guide Black Belts and Green
Belts. Apart from statistical tasks, they spend their time on
ensuring consistent application of Six Sigma across various
functions and departments.

•Black Belts operate under Master Black Belts to apply Six

Sigma methodology to specific projects. They devote 100% of
their valued time to Six Sigma. They primarily focus on Six
Sigma project execution and special leadership with special
tasks, whereas Champions and Master Black Belts focus on
identifying projects/functions for Six Sigma.

•Green Belts are the employees who take up Six Sigma

implementation along with their other job responsibilities,
operating under the guidance of Black Belts.
Project Management Applications

Scope: Applying Six Sigma in scope management would enforce clear

definition of requirements and rigorous change management. The risk
may be that this application could inhibit innovation.

Time: Applying Six Sigma in time management would require better

scheduling, immovable deadlines, careful progress monitoring, risk
management, and enforces better resource management. The risk may be
that this application could encourage additional schedule padding and
increase buffers.

Cost: Applying Six Sigma in cost management would imply absolute

budgets, enforce careful cost controls, and effective forecasting. The risk
may be that this application could encourage additional budget padding
and increase reserves.

Quality: Applying Six Sigma in scope management would enforce

unyielding quality targets, careful selection of standards, and realistic
assessment of capabilities. The risk may be that this application could
result in hiding problems and assigning blame for defects to others.
Case study:

For Starbucks, management wanted to join the speed and

efficiency of common fast-food restaurants with the human
element customers expect. However, when attempting to do
this, it’s easy for one to override the other. Knowing this, the
coffee giant created two helpful changes; how customers order
their coffees and their in-store experiences. First, Starbucks
provides new training techniques for employees, specifically
the baristas. While it’s common for the cash register to ring up
orders, baristas proactively take customers’ orders before they
pay. This decrease the wait time for receiving the coffee and
paying for it.
Another way Starbucks speeds up the ordering process is via
their mobile app. On their app, you can preorder and pay for
your drink to its specifications and pick it up when you arrive at
the store. Ready to pick up drinks are available at the bar and
organized by name. Starbucks’ management is keen to keep the
human interactions well present at each store. When ordering
your drink in store, management encourages baristas to talk
with customers. Asking how your day is going, if your order is
your usual coffee, and other ways to make each transaction
personal. Through the app, Starbucks has rolled out its own
version of a loyalty program. Unlike traditional stamp cards, the
mobile app allows you to collect “stars” which you can
accumulate for free coffees. Additionally, meeting a certain
number of transactions will get you different levels of loyalty
status. This is just another way Starbucks both recognizes and
rewards customers for shopping at their locations.
THANK YOU….