Six Sigma :Benefits to Organizations

Presentation by

Benchmark Six Sigma

Six Sigma Implementation

Six Sigma has:

• Given organizations a new way of doing business• Enabled them to have a wise application of statistical tools within a

structured methodology• Enabled repeated application of strategy to individual projects• Complete projects that have had a substantial impact on the ‘bottom

line’(profit) as well as the ‘top line’(revenue)

Organizations use Six Sigma as a scientific and practical method to achieve improvements in a company

Scientific:• Structured approach.• Assuming quantitative data.

Practical:• Emphasis on financial result.• Start with the voice of the customer.

“Show me the data”

”Show me the money”

Six Sigma Implementation

Six Sigma Methods Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

M & S

IT

Where has Six Sigma been applied?

Examples of ‘Six Sigma’ companies

Six Sigma:GE Success Story

“the most important initiative GE has ever undertaken”.Jack Welch

Chief Executive OfficerGeneral 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 2001in critical processes• From 1998 onwards GE realized benefits worth 2billion USD.• GE was the first company to Implement Six Sigma in services and also in offshoring.

• 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 2001in critical processes• From 1998 onwards GE realized benefits worth 2billion USD.• GE was the first company to Implement Six Sigma in services and also in offshoring.

GE “Service company” - examples

• Approving a credit card application

• Installing a turbine

• Lending money

• Servicing an aircraft engine

• Answering a service call for an appliance

• Underwriting an insurance policy

• Developing software for a new CAT product

• Overhauling a locomotive

Six Sigma:Motorola Success Story

Following was the statement made by Robert W Galvin, Chairman of the Executive Committee, Motorola. This statement was made after first decade of Six Sigma Experience.

Following was the statement made by Robert W Galvin, Chairman of the Executive Committee, Motorola. This statement was made after first decade of Six Sigma Experience.

“At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions….How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in cumulative manufacturing cost savings of over 11 billion dollars”*.

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

• 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

Six Sixma: Success Stories from diverse Industries

10

Qualtec’s ServicesSix Sigma deployment created • Breakthrough Performance, • Captured Cost Savings• Customer Delight

Projects –•Insurance•Lending•Securities        

Fortune 50 Global Co.

Power Steering

CIO recognized the

need to get real-time

information from his

global team

on the rationale and

status for all his

significant projects and

over 500 projects

in 27 countries.

Benefits -CIO - We have saved over $500 million dollars from 500 Six Sigma Projects

LG Electronics -England

• Order Lead Time Reduction From 55 to 41 days• Improving Forecast accuracy• Inbound lead time reduction from 8 days to 6days

Savings from Interest ChargesStock amountFreight Charges

Benefits -

Increased Brand

Image

Enhanced Customer

Satisfaction

Savings USD 850K

Benefits -We have saved over $20 million dollars in savings in two years of using Six Sigma Qualtec's services!"- Max Gordon, Navistar

Savings

Some other companies that have achieved success

Industry Wise Success Stories

Companies in almost all sectors have a Six Sigma success story