INTRODUCTION Six Sigma is a business management strategy, originally developed by Motorola 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 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. ix Sigma originated as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was subsequently extended to other types of business processes as well. In Six Sigma, a defect is defined as any process output that does not meet customer specifications, or that could lead to creating an output that does not meet customer specifications. HISTORICAL OVERVIEW The core of Six Sigma was born at Motorola in the 1970s out of senior executive Art Sundry's criticism of Motorolas bad quality. As a result of this criticism, the company discovered a connection between increases in quality and decreases in costs of production. At that time, the prevailing view was that quality costs extra money. In fact, it reduced total costs by driving down the costs for repair or control. Bill Smith subsequently formulated the particulars of the methodology at Motorola in 1986. Six Sigma was heavily inspired by the quality improvement methodologies of the six preceding decades, such as quality control, Total Quality Management (TQM), and Zero Defects, based on the work of pioneers such as Shewhart, Deming, Juran, Crosby, Ishikawa, Taguchi, and others. Like its predecessors, Six Sigma doctrine asserts that:

Continuous efforts to achieve stable and predictable process results (i.e., reduce process variation) are of vital importance to business success.

Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled. Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement initiatives include:

A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project. An increased emphasis on strong and passionate management leadership and support.[4] A special infrastructure of "Champions", "Master Black Belts", "Black Belts", "Green Belts", etc. to lead and implement the Six Sigma approach A clear commitment to making decisions on the basis of verifiable data and statistical methods, rather than assumptions and guesswork.

The term "Six Sigma" comes from a field of statistics known as process capability studies. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification. Processes that operate with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of quality or better.[1] SIX SIGMA METHODOLOGY: DMAIC Roadmap The Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) methodology can be thought of as a roadmap for problem solving and product/process improvement. Most companies begin implementing Six Sigma using the DMAIC methodology, and later add the DFSS (Design for Six Sigma, also known as DMADV or IDDOV) methodologies when the organizational culture and experience level permits. While the DMAIC methodology presented below may appear linear and explicitly defined, it should be noted that an iterative approach may be necessary especially for Black Belts and Green Belts that are new to the tools and techniques that make up DMAIC. For instance, you may find that upon analyzing your data (Analyze phase) you did not gather enough data to isolate the root cause of the problem. At this point, you may iterate back to the Measure phase. In addition, prior knowledge of the tools and techniques is necessary in determining which tools are useful in each phase. Remember, the appropriate application of tools becomes more critical for effectiveness than correctness, and you dont need to use all the tools all the time. D Define Phase: Define the project goals and customer (internal and external) deliverables.

Define Customers and Requirements (CTQs) Develop Problem Statement, Goals and Benefits Identify Champion, Process Owner and Team

Define Resources Evaluate Key Organizational Support Develop Project Plan and Milestones Develop High Level Process Map

M Measure Phase: Measure the process to determine current performance; quantify the problem.

Define Defect, Opportunity, Unit and Metrics Detailed Process Map of Appropriate Areas Develop Data Collection Plan Validate the Measurement System Collect the Data Begin Developing Y=f(x) Relationship Determine Process Capability and Sigma Baseline

A Analyze Phase: Analyze and determine the root cause(s) of the defects.

Define Performance Objectives Identify Value/Non-Value Added Process Steps Identify Sources of Variation Determine Root Cause(s) Determine Vital Few xs, Y=f(x) Relationship

I Improve Phase: Improve the process by eliminating defects.

Perform Design of Experiments Develop Potential Solutions Define Operating Tolerances of Potential System Assess Failure Modes of Potential Solutions Validate Potential Improvement by Pilot Studies Correct/Re-Evaluate Potential Solution

C Control Phase: Control future process performance.

Define and Validate Monitoring and Control System Develop Standards and Procedures Implement Statistical Process Control Determine Process Capability Develop Transfer Plan, Handoff to Process Owner Verify Benefits, Cost Savings/Avoidance, Profit Growth Close Project, Finalize Documentation Communicate to Business, Celebrate[2]

DMADV Methodology: The focus of DMADV is on quantifying the customer needs in terms of specifications before trying to improve them. This reduces the ambiguity as well as provides a measurable basis for measurement of the improvements. Purpose: The purpose of DMADV exercise is to build a new process or to re-engineer a process completely. It required a constant eye on the needs of the customer and finding the best solution to fulfill them. The steps involved in the DMADV methodology have been outlined below: Define Customer Needs: The DMADV begins by helping define the customer needs better. The difference is not trivial. While methodologies like DMAIC begin by defining the process requirements, DMADV is customer focused. The orientation is towards studying the implicit and explicit needs of a customer. Customer need not be a person or even an organization. The process that uses your output as its input can also be your customer. Hence the emphasis is on backward induction. One starts be thinking how they want things to be and work backwards. Measure Specifications: At this stage, consumer needs are translated into metrics that can be measured. This is because unless something is measurable, it is difficult to objectively state whether any improvement has taken place. Specifications of the way needs are being met and they way they ought to be met give the BPM analysts an objective measure. Analyze the Problem: At this stage the problem is analyzed on a deeper level. The behavior of each activity in the process as well as the value it adds is observed. Finally the problem point is found out and/or better ways of organizing the process are looked at. Design to Meet Customer Needs Better: At this stage, many alternative processes are designed. These processes are then looked upon as alternative solutions and the one that meets the customer requirements best are chosen. Simulate to Verify: The DMADV methodology uses objective statements to verify whether consumer needs are being met better. Simulations are run after the new process is deployed. The measurements are then compared with the previous measurements to ensure that improvement has taken place and in the right direction.[3] DFSS Methodology Design for Six Sigma (DFSS) can be accomplished using any one of many methodologies. IDOV is one popular methodology for designing products and services to meet six sigma standards. IDOV is a four-phase process that consists of Identify, Design, Optimize and Verify. These four phases parallel the four phases of the traditional Six Sigma improvement methodology, MAIC Measure, Analyze, Improve and Control. The similarities can be seen below.

Identifyphase The Identify phase begins the process with a formal tie of design to Voice of the Customer. This phase involves developing a team and team charter, gathering VOC, performing competitive analysis, and developing CTQs. Crucial Steps:

Identify customer and product requirements Establish the business case Identify technical requirements (CTQ variables and specification limits) Roles and responsibilities Milestone

Design Phase The Design phase emphasizes CTQs and consists of identifying functional requirements, developing alternative concepts, evaluating alternatives and selecting a best-fit concept, deploying CTQs and predicting sigma capability. Crucial Steps:

Formulate concept design Identify potential risks using FMEA For each technical requirement, identify design parameters (CTQs) using engineering analysis such as simulation Raw materials and procurement plan Manufacturing plan Use DOE (design of experiments) and other analysis tools to determine CTQs and their influence on the technical requirements (transfer functions)

Optimize Phase: The Optimize phase requires use of process capability information and a statistical approach to tolerance. Developing detailed design elements, predicting performance, and optimizing design, take place within this phase. Crucial Steps:

Assess process capabilities to achieve critical design parameters and meet CTQ limits Optimize design to minimize sensitivity of CTQs to process parameters Design for robust performance and reliability Error proofing Establish statistical tolerance Optimize sigma and cost Commission and startup

Validate Phase: The Validate phase consists of testing and validating the design. As increased testing using formal tools occurs, feedback of requirements should be shared with manufacturing and sourcing, and future manufacturing and design improvements should be noted. Crucial Steps:

Prototype test and validation Assess performance, failure modes, reliability, and risks Design iteration Final phase review[4]

TOOLS USED IN SIX SIGMA Descriptive Statistics It is one of the simplest techniques used in quality management to obtain a meaningful insight into the data being analyzed. Let us take a few examples. It makes sense to build a frequency table of complaints by categories from the raw data on complaints from different customers. It clearly tells us the top few complaints that need immediate attention. On the other hand, it would be preferable to compute the average or mean from loan processing time data of thousands of applications from a bank to find out the average turnaround time required to process any application. This can subsequently be compared with industry average to benchmark bank's performance. Data types tell us how we can gain meaningful insight in the data this could be achieved by computing mean or by building frequency table or by using other summary measures such as mode or median. Therefore, it is important to understand the type of data being analyzed to determine what summary measures are applicable to obtain a meaningful insight. Recall that there are two types of data - quantitative or numeric or scale, and qualitative or categorical or attribute. The categorical data can be in form of either ordered or unordered categories. Examples of unordered category data is marital status (e.g. single, married, widowed, or separated) or customer complaints data collected in our pizza shop example. Such data is also referred to as nominal data. Ordered categorical data or ordinal data defines the values representing rank or order. For example, customer satisfaction in terms of unsatisfied, expectations met, exceeded expectations, and significantly exceeded expectations. With this background of data it should be very easy to imagine that not all measures may be computed for a given data (type). For example, it does not make sense to compute mean of nominal data; imagine computing mean of marital status! In this case, mode is what will give us meaningful insight into the data. Following table summarizes the applicable characteristics and representations for each data type.

EXPLORE: More on Central Tendency and Meausre of Dispersion Note that outliers are extreme data values in a dataset that have significant numeric distance from the rest of the data. The presence of an outlier is usually an indication of an error in measurement or recording. Such data values impact mean and standard deviation directly. Statistical instruments help in planning ahead for Six Sigma projects and they may include techniques like Critical Path Management (CPM) and Failure Mode Effects and Analysis (FMEA). The CPM helps in coming up with timetables that can guide Six Sigma Professionals in forming dates and a schedule for implementation of various critical events and activities. This technique also helps the implementers to come up with reasonable deadlines and focus on meeting them within their tight schedules.

Box Plot: Box Plot provides an intuitive graphical representation of the five number summary of a dataset. The five number summary consists of Minimum, Q1, Q2 or Median, Q3, and Maximum of a dataset. Let us understand the power of box plot through a series of examples; the following example shows the box plot along with the sample data.

The box represents the inter quartile range (IQR = Q3-Q1) where its left border (also called hinge) corresponds to the first quartile (Q1) and the right border corresponds to the third quartile (Q3). Therefore, the middle 50% of data values fall within the box. The line in the middle represents the median of the data. The left whisker represents the smallest 25% of data values with its left most end corresponding to the minimum value of the data. Similarly, the right whisker represents the largest 25% of data values with its right most end corresponding to the maximum value of the data. Let us look at the second data set and the corresponding box plot. The data has been superimposed on the histogram with box plot aligned perfectly on the top to give you a crisp and easy to understand picture.

The histogram in the figure clearly suggests that, 1. It has no skew implying that it has symmetrical distribution. 2. It has long tails i.e. it possibly has outliers. Now, it is time to look at the box plot. Notice that both the whiskers are much longer than the length of the box (IQR) - an indication of the possible presence of outliers[6]

SIPOC SIPOC is a high-level picture of the process that depicts how the given process is servicing the customer. It is an acronym for Suppliers - Inputs - Process - Outputs - Customers. The definition of each of these SIPOC entities is given below. Suppliers provide inputs to the process.

Inputs define the material, service and/or information that are used by the process to produce the outputs. Process is a defined sequence of activities, usually adds value to inputs to produce outputs for the customers. Outputs are the products, services, and/or information that are valuable to the customers. Customers are the users of the outputs produced by the process. In more formal terms, SIPOC can be seen as a high-level process map. It is typically used during the define phase of a process improvement project, as it helps us clearly understand the purpose and the scope of a process. It is a starting point in identifying the voice of the customer (VOC). It gives us initial insight in to the vital inputs (or X variables) of a process [Y = f(X)] that have significant impact on critical outputs (or Y variables). It also becomes a primary input to detailed process map construction. SIPOC is usually contracted in a 5-column tabular format as illustrated below.

SCAN: Processes are everywhere Creation of SIPOC is a team activity that requires brainstorming to discover (hidden) details. The team consists of all the stakeholders of the process under consideration. Brainstorming is carried out iteratively for each element (i.e. suppliers, inputs, process steps, outputs and customers) of SIPOC. While creating SIPOC for a new process under design, it is a good idea to start from customer and move backwards to supplier. On the other hand, during discovery or documentation of an existing process, SIPOC is usually created starting from process definition followed by identification of outputs, customers, inputs and suppliers.[7] 6Ishikawa diagram Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams, or Fishikawa) are causal diagrams created by Kaoru Ishikawa (1968) that show the causes of a specific event.[1][2] Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped into major categories to identify these sources of variation. The categories typically include:

People: Anyone involved with the process Methods: How the process is performed and the specific requirements for doing it, such as policies, procedures, rules, regulations and laws Machines: Any equipment, computers, tools etc. required to accomplish the job Materials: Raw materials, parts, pens, paper, etc. used to produce the final product Measurements: Data generated from the process that are used to evaluate its quality Environment: The conditions, such as location, time, temperature, and culture in which the process operates

Ishikawa diagrams were proposed by Kaoru Ishikawa[3] in the 1960s, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management.

It was first used in the 1940s, and is considered one of the seven basic tools of quality control.[4] It is known as a fishbone diagram because of its shape, similar to the side view of a fish skeleton. Causes Causes in the diagram are often categorized, such as to the 6 M's, described below. Cause-andeffect diagrams can reveal key relationships among various variables, and the possible causes provide additional insight into process behavior. Causes can be derived from brainstorming sessions. These groups can then be labeled as categories of the fishbone. They will typically be one of the traditional categories mentioned above but may be something unique to the application in a specific case. Causes can be traced back to root causes with the 5 Whys technique.

The 6 Ms (used in manufacturing industry)

Machine (technology) Method (process) Material (Includes Raw Material, Consumables and Information.) Man Power (physical work)/Mind Power (brain work): Kaizens, Suggestions Measurement (Inspection) Milieu/Mother Nature[8]

TQM THROUGH SIX SIGMA Some argue that many of the tools Six Sigma uses are not new. However, while Six Sigma uses conventional methods, its application is anything but conventional. Instead it stresses the importance of searching for a new way of thinking and doing. In fact, Six Sigma defines a clear road map to achieve Total Quality: Leadership Commitment: Top management not only initiates Six Sigma deployment, it also plays an active role in the whole deployment cycle. Six Sigma starts by providing senior leadership with training in the principles and tools it needs to direct the development of a management infrastructure to support Six Sigma. This involves reducing the levels of organizational hierarchy and removing procedural barriers to experimentation and change. Customer Focus: Systems are developed for establishing close communications with external customers (direct customers, end-users, suppliers, regulatory bodies, etc), and with internal customers (employees). From upstream suppliers to ultimate end-users, Six Sigma eliminates the opportunities for defects.

Strategic Deployment: Six Sigma targets a small number of high-financial leveraged items. It focuses the companys resources: right support, right people, right project, and right tools, on identifying and improving performance metrics that relate to bottom-line success. Integrated Infrastructure: The Leadership Team defines and reviews project progress. The Champion acts as a political leader and removes the barriers for the project team. The Master Black Belt acts as a technical coach and provides in-depth knowledge of quality tools. The Black Belt controls the project while the Green Belt supports the Black Belt - together they form the Six Sigma Project Teams. In addition, the incentive and recognition systems motivate the project teams to achieve the business goals. Disciplined Framework: Six Sigma projects are Implemented using the Measure, Analyze, Improve and Control disciplined road map. This MAIC discipline sets up a clear protocol to facilitate internal communication. In addition, from a business perspective, Six Sigma is also a framework for continuous business improvement. Education and Training:Six Sigma believes that true commitment is driven by true understanding. As a fact-based methodology, it intensively utilizes quality and statistical tools to transform a practical problem to a practical solution. Thus, a top-to-bottom training is conducted in Six Sigma philosophy and system improvement techniques for all levels.[9] The difference between six sigma & TQM:

TQM
A functional organization. specialty within

Six Sigma
the An infrastructure of dedicated change agents. Focuses on cross-functional value delivery streams rather than functional division of labour.

Focuses on quality. Motivated by quality idealism.

Focuses on strategic goals and applies them to cost, schedule and other key business metrics. Driven by tangible benefit far a major stockholder group (customers, shareholders, and employees). Ensures that the investment produces the expected return.

Loosely monitors progress toward goals.

People are engaged in routine duties Slack resources are created to change key (Planning, improvement, and control). business processes and the organization itself. Emphasizes problem solving. Emphasizes improvement. breakthrough rates of

Focuses on standard performance, e.g. ISO Focuses on world class performance, e.g., 3.4 PPM 9000. error rate. Quality is a permanent, full-time job. Six Sigma job is temporary. Six Sigma is a Career path is in the quality profession. stepping-stone; career path leads elsewhere.

Provides a vast set of tools and techniques Provides a selected subset of tools and techniques with no clear framework for using them and a clearly defined framework for using them to effectively. achieve results (DMAIC). Goals are developed by quality department based on quality criteria and the assumption that what is good for quality is good for the organization. Goals flow down from customers and senior leadership's strategic objectives. Goals and metrics are reviewed at the enterprise level to assure that local sub-optimization does not occur.

Developed by technical personnel.

Developed by CEOs.

Focuses on long-term results. Expected Six Sigma looks for a mix of short-term and longpayoff is not well-defined. term results, as dictated by business demands.[10]

REFERENCES
[1 ]http://en.wikipedia.org/wiki/Six_Sigma [2]http://www.isixsigma.com/new-to-six-sigma/dmaic/six-sigma-dmaic-roadmap/ [3]http://www.tutorialspoint.com/six_sigma/six_sigma_methodology.htm [4]http://www.isixsigma.com/new-to-six-sigma/design-for-six-sigma-dfss/design-six-sigma-idovmethodology/ [5]http://www.discover6sigma.org/post/2011/06/desc-stats/ [6]http://www.discover6sigma.org/post/2011/06/boxplot/ [7]http://www.discover6sigma.org/post/2007/06/sipoc/ [8]http://en.wikipedia.org/wiki/Ishikawa_diagram [9]http://www.pqa.net/ProdServices/sixsigma/W06002011.html [10]http://www.isixsigma.com/new-to-six-sigma/how-is-six-sigma-different/six-sigma-versus-tqm/