SIX SIGMA

S.D.M. COLLEGE OF ENGINEERING & TECHNOLOGY

Dept. of Mechanical Engineering

A TECHNICAL PAPER ON

SIX SIGMA
SUBMITTED BY Mr. AVINASH HACHOLLI
VIth Sem; Mechanical Engg. S.D.M.C.E.T ,Dharwad.

MISS. HEMALATA DESAI

VIth Sem; Mechanical Engg. S.D.M.C.E.T, Dharwad.

CONTENTS
Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Abstract Introduction Definition, History Why, How The Difference Road map & Organizing 6 sigma Case study Pros & Cons Conclusion . 07 08 09 10 ... Page 02 03 04 05 06

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

ABSTRACT
Never in the history of modern world listening to the voice of the customer was more important than today. Old business models now no longer work. Todays competitive environment leaves no room for error. The companies must delight their customers and relentlessly look for new ways to exceed customers expectations. This is where Six Sigma counts. Six sigma is a powerful business strategy that employs a disciplined approach to tackle process variability using the application of statistical and non-statistical tools and techniques in a rigorous manner. This paper examines the pros and cons of six sigma in a detailed manner. This paper examines the pros and cons of six sigma in a detailed manner. The main purpose of Six Sigma is to make the manufacturing processes BETTER IN ACCURACY, FASTER IN SERVICE, and LOWER AT COST IN PRODUCTION. It can also be used to improve every field of business, from production, to human resources, to order entry, to technical support. Six Sigma can be used for any activity that is concerned with cost, timeliness, and quality of results.

Keywords: Six sigma ,Variation, Standard Deviation, Black belts

INTRODUCTION
Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad. 2

SIX SIGMA

Six Sigma (6
The Greek symbol

(sigma) refers to the amount of deviation in a process around the

mean value for that process Processes have acceptable upper and lower limits Six Sigma is concerned with reducing the variations to get more output within those limits The basic assumption in six sigma is that variation is the enemy of quality. The more Variation in a product, the fewer the number of items which will work as designed. To reduce variation, one must be able to measure it. There are various ways to measure it, but the usual measure is the standard deviation. The standard deviation is a measure of variability that is more convenient than percentile differences for further investigation and analysis of statistical data. The Standard Deviation of a set of measurements x1, x2 xn with the mean, is defined as the square root of the mean of the squares of the deviations; it is usually designated by the Greek letter sigma. In symbols

The square of the standard deviation is the variance. If the standard deviation is small, the measurements are tightly clustered around the mean; if it is large, they are widely scattered.

Definition

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA Six Sigma: A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six sigma is uniquely driven by a close understanding of customer needs, disciplined use of facts, data, and statistical analysis and diligent attention to managing, improving, and reinventing business processes. 2

The History of Six Sigma

Six Sigma originated at Motorola in 1982 Early adopters Allied Signal (Honeywell) General Electric(1996)

Six Sigma management philosophy today

A well-developed, thorough approach to quality improvement. Uses statistics and management by fact. Is effective in manufacturing and services firms.

What is Six Sigma?

Six Sigma is a data-driven, disciplined approach to minimizing defects in any type of process. Popularized in the mid-90 Six Sigma has grown greatly in acceptance among thousands of companies, and has proven to be both a time and money saver when implemented properly. The goal of Six Sigma is to statistically represent how a process is performed, and determine where defects can be eliminated. Six Sigma strives for just 3.4 defects per million - near perfection.

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

Why 6 ?
Simply because Six Sigma Delivers business excellence; Improves profits; Delights customers; Increases entry barrier for competition.

6 SIGMA - HOW IT REALLY WORKS AND HOW IT'S EVOLVING

Six Sigma is a collection of over 100 concepts, techniques and sophisticated statistical tools that are woven together to create a unique problem solving methodology. 6 Sigma uses facts, data and root cause analysis to solve problems. This methodology is used to resolve process issues in manufacturing operations and business transactions. Typical problems that can be solved include quality, warranty, downtime, scrap and rework issues in manufacturing operations and flaws in business processes or customer services. Ultimate objectives of the methodology are to solve problems to improve quality, profitability and customer satisfaction. 6 Sigma is often referred to as "TQM on steroids".

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

The 6
What is the Six Sigma difference? one typo per page (4 sigma) vs. one typo per library (6 sigma)

Difference

playing golf at a 6 sigma level means missing one putt every 163 years

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

The Six Sigma Roadmap

Five steps to implementing Six Sigma Identify core processes and key customers Define customer requirements Measure current performance Prioritize, analyze, implement improvements Expand and integrate the Six Sigma system

Organizing Six Sigma

Key Roles
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Leadership Team Champions Mentors (master black belts) Experts (black belts) Participants (green belts)

Key Six Sigma Roles

Master Black Belts Coach and support project leads Work as a change agent Train others in the use of six sigma tools Black Belts4 Highly trained experts Manage project leaders Lead project teams Green Belts Trained in the use of statistical tools Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad. 7

SIX SIGMA Lead project teams & Participate on project teams

A Real-World Example
General Electrics 6 results:

- reduced invoice defects and disputes with a key customer by 98%. - saved $1 million annually in contract review process (GE Capital). -Developed breakthrough technology that reduced medical scan times to 30 Seconds from 3 minutes. - improved a key call center performance measure from 76% to 99%. - reduced vibrations in Power System rotors by 300% Saved $320 million in less than two years, $750 million in three years.

Walter Industries a case study

Walter Industries, headquartered in Tampa, Florida, is a diversified company with 1.2 billion dollars of annual revenues who has implemented this next generation of 6 Sigma almost a year ago. Don DeFosset, President and CEO of Walter Industries, says: "Dave Patrishkoff and his SIX Sigma Innovation group have performed flawlessly for us in implementing a large scale 6 Sigma program from scratch in record time in a company that serves many diverse industries". Don continues by adding: "I have installed 6 Sigma at four major corporations and this has been the most successful due largely to the creative approach and outstanding mentoring skills of the SIX Sigma Innovation group". Walter Industries' businesses include the casting and machining of medium and large iron castings, aluminum coil manufacturing, production of slag wool, shipping and handling of petroleum coke, industrial materials, coal mining, gas wells and the production and financing of pre-fabricated and custom built homes. The 6 Sigma projects at Walter Industries, Inc. were highly diverse and addressed multiple problems and issues in their business processes and manufacturing / operational facilities that have remained unsolved for years.

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

Pros and Cons of Six Sigma

PROS Six Sigma is a business strategy that seeks to identify and eliminate causes of errors or defects or failures in business processes by focusing on outputs that are critical to Customers. It is a measure of quality that strives for near elimination of defects using the application of statistical methods. A defect is defined as anything which could lead to customer dissatisfaction. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on Process improvement and variation reduction. Six Sigma creates an infrastructure of Champions, Master Black Belts (MBBs), Black Belts (BBs) and Green Belts (GBs) that lead, deploy and implement the approach. Six Sigma emphasizes the importance of data and decision making based on facts and data rather than assumptions and hunches! Six Sigma forces people to put measurements in place. Measurement must be considered as a part of the culture change. CONS Just like any other quality improvement initiatives we have seen in the past, Six Sigma has its own limitations. The following are some of the limitations of Six Sigma which creates opportunities for future research. The challenge of having quality data available, especially in processes where no data is available to begin with (sometimes this task could take the largest proportion of the project time) The right selection and prioritization of projects is one of the Critical success factors of a Six Sigma program. The prioritization of projects in many organizations is still based on pure subjective Judgment. Very few powerful tools are available for prioritizing projects and this should be the major thrust for research in the Future.

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

SIX SIGMA

Conclusion
While Six Sigma will enhance the vulnerability assessment to provide a state of the art business continuity plan, one must always realize that the plan cannot be a fixed document. It must not be allowed to become obsolete and any emergency response must be practiced. How often it must change is hard to say, but, if you continuously bring in new information, continuously analyse how your plan is performing, and update it, you will be improving the security and business continuity of your organization. While most Six Sigma work has been towards physical security, the process is easily applied to the world of business continuity. In fact, a smart company would see the advantages of creating one system; one plan to handle both physical and IT security and contingency planning. Project-driven management philosophy. Relies on fact-based decision making (statistical tools). Requires top-down support. Requires an infrastructure that can support quality project management. Has been shown to have markedly positive impacts on business performance.

REFERENCES
1. 2. 3. www.sixsigmapc.com www.altavista.com Pande, P.S., Neuman, R.P., & Cavanagh, R.R. (2000). The Six Sigma Way How GE, Motorola and other Top Companies are Honing Their Performance. New York, New York: McGraw Hill. 4. Eckes, George. (2001) The Six Sigma Revolution: How General Electric and Others Turned Process into Profits. P.5. New York, New York: John Wiley & Sons.

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

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SIX SIGMA

Department of Mechanical Engineering, S.D.M.C.E.T, Dharwad.

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