The Six Sigma Way

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A REPORT
ON

THE SIX SIGMA WAY
BY
RITURAJ ROY ADITYA GOYAL FOR PRODUCTION PLANNING AND CONTROL (ME C412) 2009A4PS333P 2009A4PS292P

(BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, PILANI)

ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is no different. I would like to acknowledge each and every one whose efforts were indispensible through this medium. I am grateful to everyone who has taken great pains to make this project report a success. I thank, the Almighty, God for the constant blessings, wisdom and good health. I thank my parents, for being a sincere source of moral support through thick and thin. I would specially like to thank Mr. Kuldeep Singh Sangwan, the instructor of this course for his unending guidance and encouragement and being a constant source of support throughout the stages of this report work. I am indeed grateful to him for being there with words of encouragement whenever we looked up to him for help. I would thank my friends who guided me and helped me, as and when required.

TABLE OF CONTENTS

TOPIC
1. Acknowledgement 2. Table of Contents 3. What is Six Sigma 4. History of Six Sigma 5. Mathematical Meaning of Six Sigma 6. Six Sigma Methodologies 7. Implementation of Six Sigma in industries 8. What makes Sig Sigma Work 9. Lean, Kaizen or Six Sigma

PAGE NO.
(i) (ii) 1 2 3 3 7 18 19 20

10. The Synergy effect between Lean and Six Sigma

WHAT IS SIX SIGMA

Six Sigma is a business management strategy, originally developed by Motorola, USA in 1986.Six Sigma became well known after Jack Welch made it a central focus of his business strategy at General Electric in 1995, and today it is widely used in many sectors of industry. Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction and/or profit increase). The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be...
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