six sigma

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Six Sigma Jayesh Bendale - 64 Prerna Kadam -75 Keval Mhatre -86 Mangesh Pandure - 89 Kiran Phapale - 92 Ketan Rane -96 Amol Shitole -112 Preeti Singh -113 Meera Upadhyay - 120

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Page 1: Six Sigma

Six SigmaJayesh Bendale -64Prerna Kadam -75Keval Mhatre -86Mangesh Pandure -

89Kiran Phapale -92Ketan Rane -96Amol Shitole -112Preeti Singh -113Meera Upadhyay -

120

Page 2: Six Sigma

ContentsIntroductionConcept of Six SigmaDMAICPDCASIPOCFour Levels in Six SigmaAdvantages

Page 3: Six Sigma

Origin of six sigmaOrigin of six sigma

Page 4: Six Sigma

Six Sigma

It is a Philosophy– Anything less than ideal

is an opportunity for improvement

– Defects costs money– Understanding processes

and improving them is the most efficient way to achieve lasting results

It is a Process– To achieve this level of

performance you need to: Define, Measure, Analyse,

Improve and Control

It is Statistics– 6 Sigma processes will

produce less than 3.4 defects per million opportunities

Page 5: Six Sigma

Six Sigma Measurement

0

100,000

200,000

300,000

400,000

500,000

600,000

1.5 2.5 3.5 4.5 5.5

# of Sigmas

# of

Def

ect p

er M

illio

n

Sigma Defects numbers per million

1.5s 500,000 2.0s 308,300 2.5s 158,650 3.0s 67,000 3.5s 22,700 4.0s 6,220 4.5s 1,350 5.0s 233 5.5s 32 6.0s 3.4

Page 6: Six Sigma

PAIN, URGENCY, SURVIVAL

COSTS OUT

GROWTH

TRANSFORM THE ORGANIZATION

CHANGE THE

WORLD

6 SIGMA AS ASTATISTICAL TOOL

6 SIGMA AS APHILOSOPHY

6 SIGMA ASA PROCESS

Overview of Six Sigma

Page 7: Six Sigma

FMEA…..

Page 8: Six Sigma

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Functional Deployment ChartStep

Function/ResponsibilityHeat

TreatmentPlanning Methods Tool Store Mfg. Quality Assembly

Start

KANBAN Card

Shop Order

Heat TreatmentHardness Testing

Operation Layout

Tooling and Gauges

Grinding / HoningFitting /

PolishingInspection

End

Start

KANBAN card to shop

Shop order

Heat Treatment

Hardness OK?

Provide Op. Layout

Provide tooling and

gauges Grinding and honing

op.Remove all sharp edges

Quality

OK?

To KANBAN

End End

No

Yes

Yes

No

Rework

Page 9: Six Sigma
Page 10: Six Sigma

Sigma Curve

Page 11: Six Sigma
Page 12: Six Sigma

DMAIC - simplified

• Define– What is important?

• Measure– How are we doing?

• Analyze– What is wrong?

• Improve– Fix what’s wrong

• Control– Ensure gains are

maintained to guarantee performance

Page 13: Six Sigma

DMAIC approach

DDefine

MMeasure

AAnalyze

IImprove

CControl

Identify and state the practical problem

Validate the practical problem by collecting data

Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution

Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Page 14: Six Sigma

PDCA was created by W Edwards Deming in the 1950’s as an easy to follow Problem Solving Cycle.

Deming was tasked with helping Japan rebuild its economy in the 1950’s.

His purpose was to use PDCA with a Continuous Improvement process to help rebuild Japanese industries so that they could compete in the world market in the future.

INVEST IGAT E

CLARI FY O BJECT I VES

I DEN T I FY PO SSI BL E CAUSES

BEN CHM ARK BEST PRACT I CE

I DEN T I FY T EAM RO L ES

I M PLEM EN T Q UI CK FI X

EVALUAT E & VALIDAT E

P ILOT S TU DY S OLUTIONTO V E R IFY DATA

C OUN TE R M E AS U RE

TR AIN IN G

C OM M UN IC ATION

CO RRECT &ST ANDARDISE

REVI EW FEEDBACK &M AK E CO RRECT I O NS

ST AN DARDI SE DO ,CHECK , ACT

ENLIGHT EN &IM PLEM ENT

CARRY OUT T RIALS T OPROVE CAUSES

ANALYSE DAT A T OUNDERST AND HOWPROBLEM OCCURS

IDENT IFY POSSIBLESOLUT IONS

Page 15: Six Sigma

PDCA Cycle

Page 16: Six Sigma

SIPOC

Page 17: Six Sigma
Page 18: Six Sigma

Master Black Belt

Black Belts

Green Belts

Team Members / Yellow Belts

Cha

mpi

ons

Mentor, trainer, and coach of Black Belts and others in the organization.

Leader of teams implementing the six sigma methodology on projects.

Delivers successful focused projects using the six sigma methodology and tools.

Participates on and supports the project teams, typically in the context of his or her existing responsibilities.

6 Training

Page 19: Six Sigma

The Quality TeamMaster Black BeltMaster Black Belt

Black BeltBlack Belt Black BeltBlack Belt

Green BeltGreen Belt

Green BeltGreen Belt

Green BeltGreen Belt

- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Thought Leadership- Expert on Six Sigma- Mentor Green and Black Belts

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or “high

risk” projects

- Backbone of Six Sigma Org- Mentor Green Belts- Full time resource- Deployed to complex or “high

risk” projects

- Part time or full time resource- Deployed to less complex projects in areas of functional expertise

- Part time or full time resource- Deployed to less complex projects in areas of functional expertise

Page 20: Six Sigma

Six Sigma:AIRTEL Success Story

In 2002 Bharti group (Airtel) launched Six Sigma It has since than successfully applied Six Sigma in

all its businesses and has realized savings worth billions of rupees.

Six Sigma is an Integral part of its DNA with a dedicated team at each of its Circles.

Airtel’s basic services businesses yielded 250% return on Investment in the first year of implementation itself.

There are more than 150 Black Belts working in the entire group

Page 21: Six Sigma

Industry Wise Success Stories

Banking: Bank of America, American Express, HDFC, HSBC Hospitality: ITC Hotels, GRT Hotels, Apollo Hospitals Manufacturing: Wipro, Nestle, Samtel, Samsung Retail: Reliance Retail Telecom: Bharti Cellular, Vodafone, Siemens, Tata IT: Wipro, Satyam, Acenture, Infosys, TCS, Birlasoft Out sourcing: ICICI OneSource, Accenture, Satyam BPO,

IBM Daksh Companies in almost all sectors have a Six Sigma success

story

Page 22: Six Sigma

© TreMyn 2004

The Growth of Six Sigma

Page 23: Six Sigma

Benefits of six sigma Benefits of six sigma

Generates sustained success

Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement

Promotes learning across boundaries

Executes strategic change

Page 24: Six Sigma

Company Annual Savings

General Electric $2.0+ billion

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

Motorola $ 16 billion (*since inception in 1980s)

Johnson & Johnson

$500 million

Honeywell $600 million

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Six Sigma Results

•Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %

•For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million.

•Investment: salary of in house experts, training, process redesign.

•Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %

•For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million.

•Investment: salary of in house experts, training, process redesign.

Page 25: Six Sigma

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