6 SIGMA & KAIZENGROUP NO. 5

GROUP MEMBERS CONTENTS

1.Ramesh (22) : Six sigma and definition & Levels

2. T.L. Smriti (18) :Tools of six sigma

3. Rupak ( ) : Implementation &Benefits

4.Aditi ( ) : Kaizen concept.

5.Shital (15) : Kaizen practice.

6.Zalak ( ) : approach & working together

7.Smriti & Shital : Difference of Six Sigma & Kaizen

ABOUT SIX SIGMA

Six Sigma Was Developed at Motorola in the 1980’s As a Method to Improve Process Quality.

It Was First Used to Improve Manufacturing Process Capability and Then Migrated to Business Processes Capability.

Companies That Have Deployed Six Sigma: Bank of America, Motorola, GE, IBM, Kodak and Many More.

The Basic Premise Is, All Processes Have Variation. Variation Is the Enemy.

DEFINITION

• 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.

THREE LEVELS OF SIX SIGMA 1. As a Metric

The term “ Sigma ” is often used as scale for levels of

“ Goodness ” or quality.

– Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose.

– Equates to 3.4 defects per one million opportunities (DPMO).

2. As a methodology

A business improvement methodology that focuses an organization on :

– Understanding and managing customer requirements.

– Aligning key business processes to achieve those requirements.

– Driving rapid and sustainable improvement to business processes.

At the heart of the methodology is the DMAIC model for process improvement :

D

Define

M

Measure

A

Analyze

I

Improve

C

Control

Define the problem and the

objectives

What do we need to improve?

Can we measure this?

Analyze the process define factors of influence.

Assure that improvement will sustain.

Identify and implement improvements.

3. As a management system

A top– down solution to help organizations:

Align their business strategy to critical improvement efforts

Mobilize teams to attack high impact projects

Accelerate improved business results

Govern efforts to ensure improvements are sustained

Framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.

LEVELS OF SIX SIGMA IMPLEMANTATION

• Six sigma champion

• Green belts

• Black belts

• Master Black belts

TOOLS OF SIX SIGMA

QUALITY FUNCTION DEPLOYMENT

CAUSE AND EFFECT METRIX

FAILURE MODES EFFECTS ANALYSIS

CONTROL CHARTS

DESIGN OF EXPERIMENTS

BENEFITS OF SIX SIGMA

Generates sustained success.

Sets performance goal foe everyone.

Enhances value for customers.

Accelerates rate of improvement.

Promotes learning across boundaries.

Executes strategic change.

WHAT MAKES SIX SIGMA DIFFERENT?

Breakthrough improvement

Versatile

Financial result focus

Process focus

Structured & disciplined problem solving methodology using scientific tools and techniques.

Customer centered

Involvement of leadership is mandatory

Training is mandatory

Action learning ( 25% class room, 75% application )

Creating a dedicated organization for problem solving (85/50 Rule)

KAIZEN-THE CONCEPT

Kaizen …. means improvement

Ongoing improvement

Involves everyone

Both Manager & workers

Kaizen Philosophy

Our way of life need to be constantly improved

Working life, social life, home life

KAIZEN - THE PRACTICE

MANAGEMENT GROUP INDIVIDUAL

TOOLS Seven QC Tools

New Seven Tools

Professional Skills

Seven QC Tools

New Seven Tools

Common Sense

Seven QC Tools

INVOLVES Managers and

Professionals

QC Circles Everyone

TARGET Systems and

Process

Group Work area Individual work area

IMPLEMENTATIONCOST

Small investment Mostly inexpensive Inexpensive

RESULTS New System and

Facility improvement

Improved work

procedures

On the spot

improvement

KAIZEN & INNOVATION

KAIZEN INNOVATION

1. Effect Long-term and business as usual Short term and dramtic

2. Pace Small Steps Big Steps

3. Time frame Continuous and Incremental Intermittent and non-incremental

4. Change Gradual and constant Abrupt and volatile

5. Involvement Every-one Selected champions

6. Approach Collective group efforts, systems

approach

Individual ideas and efforts

7. Mode Maintenance and Improvement Scrap and Rebuild

8. Effort Orientation People Technology

9. Practical Requirements Little investment but great efforts to

maintain

Large investment but little effort to

maintain

10. Advantage Works well in slow growth economy Better suited in fast growth

economy

Another comparison of

Innovation and Kaizen

INNOVATION KAIZEN

Creativity

Individualism

Specialist-oriented

Attention to great leaps

Technology-oriented

Information: closed, proprietary

Functional (specialist) orientation

Seek new technology

Line + staff

Limited feedback

Adaptability

Teamwork (systems approach)

Generalist-oriented

Attention to details

people-oriented

Information: open, shared

Cross-functional orientation

Build on existing technology

Cross-functional organization

Comprehensive feedback

KAIZEN APPROACHProcess Oriented Approach

Leads to Improved ResultsFocus on the process improvement without loosing sight of the expected results.

People Oriented ApproachFocus on ….DisciplineTime ManagementSkill DevelopmentParticipation and InvolvementMoraleCommunication

BENEFITS OF KAIZEN

1. Kaizen reduces waste-like inventory waste, time waste & workers motion.

2. Kaizen improves space utilization & product quality.3. Results in higher employee moral and job satisfaction.4. Teaches workers how to solve everyone problems.

PIT FALLS IN KAIZEN

• Resistance to change.

• Lack of proper procedure to implement.

• Too much suggtion may lead to confusion and time

wastage.

SIX SIGMA AND KAIZEN WORKING TOGETHER CATEGORIED IN :“SIX SIGMA”

1. Improvement tools.2. How 6 sigma and kaizen improve organization.3. Overall effects on 6 sigma.

DIFFERENCE BETWEEN “KAIZEN – 6 SIGMA”

KAIZEN 6 - SIGMA

1) Improve existing system Human

based

2) Simpler

3) Low cost

4) Relies upon group dynamics

5) Japanese origin

6) Long term results

7) Providing quality

8) Participation of every single

employee

1) Improve existing system statistics

method improvement framework -

DMAIC

2) Difficult

3) High cost

4) Fixed plan of implementation

5) Western origin

6) Short term result.

7) Ensuring profitability.

8) Creation of project teams.