Sigma

PRESENTED
BY

SUDHAKARA REDDY
SONIKA MISHRA
JYOTI RANI
PRIYANKO CHAKRABORTY

08/08/10 1
 What is the Six Sigma Philosophy?
☛ We don’t know what

Science we don’t know.

☛ If we can’t measure
it, we really don’t
know much about it.
Six Sigma

Art ☛ If we don’t know

much about it, we
can’t control it.

☛ If we can’t control it,

we are at the mercy
Magic of chance.

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Focus
Focus on
on the
the Customer!
Customer! 2
 What Is Six Sigma? Process Philosophy

?
Sigma is a measure of
“goodness”
Know What’s Important
to the Customer (CTQ)
Reduce Defects (DPMO)
Center Around Target (Mean)
Reduce Variation (Standard
Deviation)

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GE Company Proprietary
3
November 1998
‘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 and
shareholder 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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The six sigma
organization.
The six sigma team has five levels
of hierarchy

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 General Electric
• In 1995 GE mandated each employee to
work towards achieving 6 sigma
• The average process at GE was 3 sigma in
1995
• In 1997 the average reached 3.5 sigma
• GE’s goal was to reach 6 sigma by 2001
• Investments in 6 sigma training and
projects reached 45MUS$ in 1998, profits
“the most
increased by important
1.2BUS$ initiative
GE has ever undertaken”.
Jack Welch
Chief Executive Officer
General Electric
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Example : Dabbawalas

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 Sigma Defects Per Million Rate of
Level Opportunities Improvement
1σ 690,000
2σ 308,000 2 times
3σ 66,800 5 times
4σ 6,210 11 times
5σ 230 27 times
6σ 3.4 68 times

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 Possible applications
•Human Resources: reduce the number of requisitions
unfilled after 30 days.

•Customer Service: measure the number of calls answered

on the first ring.

•Order Fulfillment: eliminate Customer returns because of

incorrect parts or product being shipped.

•Finance: reduce the instances of accounts being paid

after 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 what

the relationships are, and attempt to ensure that all factors have been
considered.

4.Improve the process based upon data analysis using various tools

5.Control to ensure that any deviations from target are corrected before
they result in defects.

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 THANK YOU

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