example for six sigma( indian example)

7/29/2019 Example for Six Sigma( Indian Example)

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Process Quality

Group 3:-Hitesh Gupta

Kunal Kataria

Neha ThakurNishtha Vohra

Nitu Bijarnia


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IntroductionA set of methods for aligning all the components of

a business to the quality requirements of the client or

customer, in order to maximize quality and reduce

waste.

Process improvement methodologies such as sixsigma are used to re-engineer business processes and

business communication


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Measurements

Talk to customers:

Conduct formal or informal surveys of your

customers to find out their key complaints.

Understand internal barriers:

Some companies are culturally resistant to change

and resistant to measurement.It is necessary to dig

into the cause of any resistance before you get too far

down the road.


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Use standard tools:

Activity based costing, total quality management, sixsigma and ITIL (information technology infrastructure

library) are few established methods that large

companies used to tack and improve processes.

Hire a consultant with specific expertise :

It is recommended to start with a consultant or an

analytics expert.


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.Definition. DPMO

. DMAIC

. Variations in processes

SIX SIGMA

TECHNOLIGY


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DEFINITION

Six sigma is a new approach to process controlbased on a set of principles that enables

organizations to improve their quality to zero

defect levels.

Multinational firms such as Motorola and GE

pioneered the use of the six sigma approach to

quality.

Six sigma is applicable to both manufacturingand service organizations.


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DEFECTS PER MILLION

OPPORTUNITIES (DPMO)

A defect is an unacceptable state of productand services for a consumer, arising out of abusiness process that produced it.

The basic metric of interest in six sigmaquality control is the DPMO. This measureindicates how many defects a processgenerates in a million opportunities.

While service industries find it convenientto use DPMO, manufacturing organizationsuse the term parts per million (PPM).


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If in a process,

k= number of opportunities for making a

defect per unit of execution of that processn= number of units of observation of theprocess

d = number of defects that occurred in thatprocess during the observation

The defects per opportunity=d /(k * n )

Defects per million opportunities

( DPMO) = d/ (k * n) * 1000000


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DMAIC


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DMAIC (define- measure-

analyse- improve-control) DEFINE- In this the problem and the context for

improvement is defined.

MEASURE- In this step the data is obtained.

ANALYSE- In this the data collected is analysedto find possible causes for bad quality and identifyareas that need improvement in order to reducedefects.

IMPROVE Here the improvement phase ideasfor eliminating the root causes is developed.

CONTROL Steps are taken that process does notdrift away from new improved standards.


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VARIATIONS IN PROCESSES

The collective set of tools and techniques usedto develop a quality assurance system when

business processes exhibit variations is known

as statistical process control (SPC).

There are basically two causes for variations:

1. Common causes

2. Assignable causes


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COMMON CAUSES

Chance variations arise on account of purelyrandom events that are not in the control of the

system designer or the operating personnel.

The causes of these variations are known as

common causes of variations.

ASSIGNABLE CAUSES

When the observed variations are notstatistically found to be due to random effects, it

clearly points to the existence of some

assignable causes.


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INDIAN Example for Six SigmaMumbais Dabbawalas

&

Wipro


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Introduction

A dabbawala is the one who carries the box inthe Indian city of Mumbai whose job is to carryand deliver freshly made food from home in

lunch boxes to office workers

Tiffin is box in which lunch is carried. For theefficiency of their supply chain it has beenclaimed that this virtually achieves a Six Sigmaperformance rating, (i.e. 99.9999% of deliveriesare made without error, he is at CMMI level 6)


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What is NMTBSA

(Nutan Mumbai Tiffin Box SuppliersAssociation)

History : Started in 1880

Charitable trust : Registered in 1956 Avg. Literacy Rate : 8 th Grade Schooling

Total area coverage : 60 Kms

Employee Strength : 5000 Number of Tiffin's : 2,00,000 Tiffin Boxes

i.e 4,00,000 transactions every day

Time taken : 3 hrs


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Beyond six sigma Error Rate: 1 in 16 million transactions

Six Sigma performance (99.999999) Technological Backup: Nil.

Cost of service Approx. Rs. 300 to 500 /month

About $6 - $7 / month only

Standard price for all (Weight, Distance, Space) Rs. 36 Cr. Turnover approx.

[6000*12*5000=360000000 i.e. Rs. 36 crore p.a.]Earnings -5000 to 6000 p.m.

Zero % fuel Zero % investment

Zero % modern technology

Zero % Disputes

100 % Customer Satisfaction


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Awards and Felicitation

Shri.Varkari Prabhodhan MahasmatiDindi (palkhi) sohala 4 th march 2001.

Invitation from CII for conference held in

Bangalore. Documentaries made by BBC ,UTV,

MTV, and ZEE TV

Dabbawalla services are popular with theIndian IT developer community in Silicon

Valley , California , USA


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HISTORY OF WIPRO

Wipro started as a vegetable oil company in

1947 from an old mill founded by Azim Premji's

father. At that time, it was valued at $2 million.

In 1977, when IBM was asked to leave India,

Wipro entered the information technology

sector. In 1979, Wipro began developing its owncomputers and in 1981, started selling the

finished product.


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Awards

Wipro become the first Indian it service provider

to be awarded gold level status in Microsofts

windows embedded partner program

Worlds first IT service company to use six

sigma.

Wipro technologies winner of Indian MAKE

(Most Admired Knowledge Enterprise)Awards2008

Wipro wins international institute for software

testings software testing best practice award.

06/08/09 WIPRO


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Six Sigma

It is the first company in India to adopt the SixSigma TQM methodology for continuousimprovement and eliminate defect and cycletime reduction.

Six Sigma program spreads right across verticalsand impacts multiple areas such as projectmanagement, market development and resourceutilization.

Its has over 3350 employees trained in Six

Sigma with 120 certified black belts . It has 500 ongoing Six Sigma projects and the

expected financial return is 10% of PBT06/08/09 WIPRO.


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Process Control


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PROCESS CONTROL

FUNDAMENTALS NOMINAL VALUE : Desired average

SECIFICATION LIMITS :Tolerances allowed

ULS and LSL

PROCESS AVERAGE :Central line

CONTROL LIMITS : ULC and LCL

UCL= Process Average + 3LCL = Process Average - 3


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CHOOSE THECHARACTERISTIC FORPROCESS CONTROL

CHOOSE THEMEAUREMENT METHOD

CHOOSE ANAPPROPRIATE

SAMPLING PROCEDURE

CHOOSE THE TYPE OFCONTROL CHART

CALCULATE THECONTROL LIMITS

PLOT THE DATA ANDANALYSIS


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SETTING UP A PROCESS

CONTROL SYSTEM

Choose the characteristic for Process Control

Know the aspect of the process that needs to be

monitored and controlled.

Ease of measurement and measurementcharacteristics need to be considered.

Choose the Measurement MethodAttribute based measurement

Variable based mesurement


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Choose an Appropriate Sampling Procedure

It involves deciding on

Size of each sample or sub group (n)

The number of such samples to be taken (m)

Choose the Type of Control Chart

It is available for both attributes measures andvariable measures.


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Compute the Controls Limit

Compute relevant parameters for the control

charts.

X chartR chart

C chart


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X chart

Process average or central line,


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C Chart

Process average or central line ,c =cm


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Plot the data and analyse it


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Process Improvements in LongRun Process Capability Potential Capability

Actual Capability


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example for six sigma( indian example)

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