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SigmaPRESENTED
BY
SUDHAKARA REDDY
SONIKA MISHRA
JYOTI RANI
PRIYANKO CHAKRABORTY
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SSciencecience
AArtrt
MMagicagic
SixSigma
We dont know what
we dont know.
If we cant measure
it, we really dont
know much about it.
If we dont know
much about it, we
cant control it.
If we cant control it,
we are at the mercy
of chance.
What is the Six Sigma Philosophy?
Focus on the Customer!
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Process Philosophy
Sigma is a measure ofgoodness
Know Whats Important
to the Customer (CTQ)Reduce Defects (DPMO)
Center Around Target (Mean)
Reduce Variation (StandardDeviation)
?
GE Company Proprietary
November 1998
What Is Six Sigma?
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Six Sigma companies Companies who have successfully adopted
Six Sigma strategies include:
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Six Sigma Definitions Business Definition
A break through strategy to significantly
improve customer satisfaction andshareholder value by reducing variability in
every aspect of business.
Technical Definition
A statistical term signifying 3.4 defects per
million opportunities.
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Big Question???Is it a Goal, a Measure, a Process, or a Tool?
Yes
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e s x s gmaorganization.The six sigma team has five levelsof hierarchy
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the most important initiativeGE has ever undertaken.
Jack Welch
Chief Executive Officer
General Electric
In 1995 GE mandated each employee towork towards achieving 6 sigma The average process at GE was 3 sigma in1995 In 1997 the average reached 3.5 sigma GEs goal was to reach 6 sigma by 2001 Investments in 6 sigma training and
projects reached 45MUS$ in 1998, profitsincreased by 1.2BUS$
In 1995 GE mandated each employee towork towards achieving 6 sigma The average process at GE was 3 sigma in1995 In 1997 the average reached 3.5 sigma GEs goal was to reach 6 sigma by 2001 Investments in 6 sigma training and
projects reached 45MUS$ in 1998, profitsincreased by 1.2BUS$
General ElectricGeneral Electric
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Example : Dabbawalas
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Sigma
Level
Defects Per Million
Opportunities
Rate of
Improvement1 690,0002 308,000 2 times
3 66,800 5 times
4 6,210 11 times
5 230 27 times6 3.4 68 times
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Possible applications
Human Resources: reduce the number of requisitionsunfilled after 30 days.
Customer Service: measure the number of calls answered
on the first ring.
Order Fulfillment: eliminate Customer returns because ofincorrect parts or product being shipped.
Finance: reduce the instances of accounts being paidafter a specified time limit has elapsed.
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DMAIC
It is an approach undertaken to improve existing business process
The phases of Six sigma are :
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Process
1.Define high-level project goals and the current process.
2.Measure key aspects of the current process and collect relevant data.
3.Analyze the data to verify cause-and-effect relationships. Determine whatthe relationships are, and attempt to ensure that all factors have beenconsidered.
4.Improve the process based upon data analysis using various tools
5.Controlto ensure that any deviations from target are corrected before
they result in defects.
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THANK YOU
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