Six Sigma in Indian Industry

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Six Sigma in Indian industries

Case Study

|Author |Atanu Maity | |Author Position |Program Manager | |Date |August 05, 2009 |

Version: 1.0

TABLE OF CONTENTS

Introduction to Six Sigma5

History of Six Sigma6

What is Six Sigma8

Why Six Sigma Development ?10

Benefits and Advantages of Six Sigma11

1. Improved Customer Loyalty11
2. Customer Satisfaction11
4. Business Results13
5. Data Analysis Before Decision Making14
6.  Team Building17
7. Measure Value According to the Customer17
8. Effective Supply Chain Management20
9. Design and Redesign Products/Services23
10. Develop Leadership Skills26
11. Integration of Products, Services and Distribution28
12. Alignment with Strategy Vision, and Values32
14. Supervisor Training34
15. Generates Sustained Success34
16. Set a Performance Goal for Everyone35
17. Enhance Value to Customers35
18. Accelerates the Rate Of Improvement37
19. Promotes Learning And "Cross-Pollination"37
20. Executes Strategic Changes37

Do’s and Don’ts of Six Sigma38

Key Concepts of Six Sigma39

Themes of Six Sigma42

The Six Sigma Roadmap46

Six Sigma Quality Tools and Templates47

Is Six Sigma Right for Us Now ?48

When Six Sigma is Not Right for an Organization50

Six Sigma Training52

Training the Organization for Six Sigma54

Large organizations that have adopted six sigma56

Use Six Sigma Tools to Meet ISO 9000 Requirements57

Use the ISO 9000 Framework to Assess a Six Sigma System58

Six Sigma and Quality Management Glossary59

Case Study : Six Sigma Implementation in Bharti Broadband66

Introduction to Six Sigma

Six Sigma is a statistical concept that measures a process in terms of defects. Achieving "Six Sigma" means your processes are delivering only 3.4 defects per million opportunities (DPMO) - in other words, they are working nearly perfectly. Sigma (the Greek letter σ) is a term in statistics that measures standard deviation. In its business use, it indicates defects in the outputs of a process, and helps us to understand how far the process deviates from perfection. A sigma represents 691462.5 defects per million opportunities, which translates to only 30.854% of non-defective outputs. That is obviously a poor performing process. If you have a process functioning at a three sigma level that means you're allowing 66807.2 errors per million opportunities, or delivering 93.319% non-defective outputs. That's much better, but we are still wasting money and disappointing our customers. The central idea of Six Sigma management is that if you can measure the defects in a process, you can systematically figure out ways to eliminate them to approach a quality level of zero defects. In short, Six Sigma is several things:

❖ A statistical basis of measurement: 3.4 defects per million opportunities ❖ A philosophy and a goal: as perfect as practically possible ❖ A methodology
❖ A symbol of quality

History of Six Sigma

Since the 1920's the word 'sigma' has been used by mathematicians and engineers as a symbol for a unit of measurement in product quality variation. (Note it's sigma with a small 's' because in this context sigma is a generic unit of measurement.) In the mid-1980's engineers in Motorola Inc in the USA used 'Six Sigma' an informal name for an in-house initiative for reducing defects in production processes, because it represented a suitably high level of quality. (Note here it's Sigma with a big 'S' because in this context Six Sigma is a 'branded' name for Motorola's initiative.) (Certain engineers - there are varying opinions as to...
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