lean six sigma in various industries

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Presentation by Benchmark Six Sigma

Six Sigma in Various Industries


To show applications of Six Sigma in various Industries.

To highlight the linkage of Engineering and Management Studies to Six Sigma application

OBJECTIVES OF THIS PRESENTATION


• Helps organizations produce products and services better, faster and cheaper.

• Remove Wastage • Maximize Customer Satisfaction• Maximize Product/Service Quality. (Develop Close to Zero Defect

Products/Services)• Increase Sales• Increase overall Organizational Productivity• Save Costs• Make the Organization a Data-driven organization• Faster Cycle Time• Empower Employees

Six Sigma Benefits to Organizations


Organizations have successfully benefitted from tools and conceptsthat are covered extensively in Six Sigma for decades. Some examplesare :• Statistical Process Control which uses Control Charts• Total Quality Management• Process Management through Measurements of outputs• Project Management• Application of Statistical concepts like Hypothesis testing, Regression Analysis

and Design of Experiments

However, Benchmark Six Sigma has packaged these tools (through Green Belt, Black Belt and MBB programs) in a manner that makes it many times more powerful

Six Sigma is Not NEW for Leading Organizations


Six Sigma is a “Industry Independent” methodology and has beensuccessfully applied across:

• Manufacturing Industry including Automotives, Aerospace, Health Equipment, FMCG, Electronic Goods, Continuous Process Industries, Textiles, etc.

• Service Industry including Telecom, Banking and Financial Services, Health Care, Hotels, IT, ITES, KPOs, Airlines, Cargo movement, Support Services, HR services, Marketing Services, etc.

• R&D organizations or in R&D functions of various organizations

Six Sigma Applicability


Six Sigma Results

Company Annual Savings

General Electric $2.0+ billion

JP Morgan Chase *$1.5 billion (*since inception in 1998)

Texas Instruments $600 million

Johnson & Johnson $500 million

Honeywell $600 million


Examples of Industrial Application

• Six Sigma Methodology has been successfully applied in all Industries

• Benchmark has had the opportunity to train close to 6000 persons from all Industries

• Based on the combined experience of Benchmark Consultants, next few slides show the areas in which Six Sigma has been successfully applied in some of the Industries we have worked with (a sample).

• We shall also look at select companies in each Industry that have successfully applied Six Sigma

• We would also see which Engineering specializations have contributed to success in the highlighted areas


Six Sigma :Industry Wide Application

Industry Examples of Six Sigma ApplicabilityAutomotives i. Enhancing Supplier Quality

ii. Improving Safety & Reliability of Finished Vehiclesii. Reducing Manufacturing defects at each stageiv. Using Design FMEA to understand and prevent any possible design failuresv. Reducing variation in all the critical parameters that impact the finished productvi. Improving the overall Incoming Material Quality or parts Qualityvii. Optimizing Inventory levels for all major partsviii. Reducing time to manufactureix. Reducing Design defectsx. Reducing Supplier Lead time i.e the time take by each supplier to deliver goodsxi. Improving First time yield and efficiency of each step in the Manufacturing

assembly line.

Few Examples of Companies: Tata Motors, Ford, GM, Maruti, Telco.

Engineering Specializations who contribute : Mechanical, Electrical, Engineering Design, Computer Science, IT



Industry Examples of Six Sigma Applicability

Continuous Process Plants

i. Improving overall Yield of each shiftii. Reduce scrap or spilled materialsiii. Reduce the Process failures or breakdownsiv. Increase Plant capacity utilizationv. Improve Operator Productivityvi. Reduce time to restart the process after failurevii. Create mechanisms to prevent failures at each stageviii. Improve overall process stability & control

Few Examples of Companies: Reliance Industries Ltd, Asian Paints, GE plastics, Wipro consumer goods

Engineering Specializations who contribute : Chemical, Mechanical, Electrical, IT, Product Design and Engineering Design



Industry Examples of Six Sigma Applicability

Engineering Parts Manufacturing

i. Reduce Manufacturing cycle time (time of order to delivery)ii. Improve Customer Service performance scoresiii. Reduce or optimize inventory levelsiv. Reduce scrap or cost of poor qualityv. Reduce warranty costsvi. Reduce rejections due to design errorsvii. Improve parts design process to meet specifications 100% of timesviii. Improve parts reliability by identifying & optimizing critical factors

that ensure reliability

Few Examples of Companies: Gates India Ltd., Medium to small scale suppliers of parts

Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science


Six Sigma :Industry Wide ApplicationIndustry Examples of Six Sigma Applicability

Textiles/ Fashion houses/ Garments

i. Eliminating manufacturing errors/defectsii. Improving first sample approval percentages while working with

buyersiii. Improving buyer satisfaction levels iv. Increasing repeat businessv. Improving supplier evaluation processesvi. Improving processes at the source (including fabric purchase and

inspection, stitching, embroidery, packing and shipping) to reduce rejections at later stages.

vii. Reducing costs viii. Reducing delays

Few Examples of Companies: Reliance Industries, Raymonds, Grasim

Engineering Specializations who contribute : Mechanical, Electrical, IT, Product Design Engineering Design, Electronics and Communication, Computer science



Information Technology :Software development

i. Reducing the overall Software development timesii. Reducing the number of errors found during product usageiii. Improving the estimation process to reduce time and cost overrunsiv. Improving the requirements gathering process to reduce reworkv. Reducing complaints resolution timevi. Creating systems to detect defects early in the process (to reduce high costs

associated with defects identified later)vii. Reducing appraisal cost per defect by phase and appraisal type (by project and in

total) viii. Reducing rework (All work done to fix an application after it has been delivered to

a customer is rework. This includes corrections to features or functions that are incorrect, and also may include "missed requirements" - things the customer expected but did not receive.

Few Examples of Companies: TCS, Infosys, IBM, HP, Patni, Birlasoft

Engineering Specializations who contribute : Computer Science, IT, Electronics and Communications mainly. All other branches of engineering for specific domain application.



Telecom i. Improving ARPU (Average revenue per unit)ii. Reducing Billing errorsiii. Reducing timeliness of billingiv. Improving the Call Completion rate (i.e Network Quality)v. Reducing network congestionvi. Development of new features, processes for new servicesvii. Improving accuracy, timeliness and completeness of new connectionsviii. Improving accuracy, timeliness and completeness of customer communication. ix. Reducing Customer churnx. Reducing network congestionxi. Improving call routing proceduresxii. Improving sales productivity

Few Examples of Companies: Bharti Airtel, France Telecom, Reliance Infocomm, Siemens

Engineering Specializations who contribute : Telecom , Electronics and Communication, Product Design , Computer Science, IT



Industry Examples of Six Sigma ApplicabilityR&D/ Product Design i. Reducing the time to market

ii. Reducing rework through synergy between R&D and the customer facing staff.

iii. Improving the overall performance & quality of product from startiv. Minimizing product failures by ensuring robust designsv. Improving quality of research process & experiments by providing

mass education in Experimental design and Multivariate studiesvi. Improving quality of design reviews (data driven reviews)vii. Reducing defects in final product thereby saving on warranty costs.

Few Examples of Companies: GE Labs, Boeing, Agilent Laboratories, Motorola, Microsoft, Semiconductor Industry

Engineering Specializations who contribute : Product Design, Electronics & Communication, Computer Science, IT and others depending on type of application designed


Gains knowledge about the Engineering/ Management Disciplines and applications from the text booksEngineering - Learning about Engineering

concepts, applications, working in laboratories, running experiments & drawing inferences, understanding kety elements for technical success.

Management – Learning about Management concepts, applications, business organization, strategies, functional areas, understanding key elements for business success.

Getting exposed to number of mathematical and statistical models as part of course

Six Sigma Trained Student’s Advantage


After undergoing Six Sigma training:Understands how engineering and/or

management knowledge can be applied to make an effective contribution in an actual organizational environment.

Supplements technical skills learned during Engineering with practical knowledge

Can take up Summer Internship Project as a small Six Sigma Project

Utilizes Six Sigma knowledge as a competitive advantage in the job search and career progress.

Six Sigma Trained Student’s Advantage


Look out for other Benchmark Six Sigma presentations on the following topics

1. Message for Students pursuing full time professional courses. Is Six Sigma a suitable additional learning for students? Why?

How does it help?

2. What is Six Sigma?What are the key ideas in this methodology? Why is it so

successful?

3. Function specific applications of Six Sigma Which functional areas have Six Sigma applicability?

4. Six Sigma personal success stories How people have succeeded with Six Sigma? What are their

success stories?

5. Six Sigma corporate success stories Which companies have benefited? Sample benefits?

6. About Benchmark Six Sigma Who is Benchmark Six Sigma? What are the Services? Who are their

clients?

lean six sigma in various industries

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