Six Sigma Presentation Dec 28th

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Six Sigma

Overview
Ramesh Subramanian ; PMP ; SSGB
Agenda
-Business Perspective

-What is Six Sigma

-Six Sigma Concept

-History

-Interrelation of Six Sigma infrastructure

-Six Sigma’s role in IT world

-Lean Six Sigma

-Example Scenarios
Purpose of Business
•Satisfy a Human (customer) need
• Improve quality of life and society
• Create value, Develop intellect and opportunities
• Preserve and improve environment
How do you do this on a sustainable basis in…
Business Challenges – Balanced Scorecard
Customer Perspective

Internal
Financial Business
Perspective Process
Perspective

Innovation & Learning Perspective


Get ready for touch down !!
Get ready for touch down !!
What is Six Sigma?
• Management mandated and directed improvement program
focused on breakthroughs in financial performance and
customer satisfaction

• Focus on core business and Customer needs

• A systematic method for process and product improvement

• A Greek symbol for measuring performance variation

• A metric for evaluating performance quality

• A standard of excellence (3.4 defects per million opportunities)


Six Sigma Concept
Car Parking Analogy
Reduce Process Variation & Defect Rates

The objective is to understand customer requirements


and reduce process variation and defects
Sigma as a Measure

Using Six Sigma conventions


Six Sigma means…..

99% Good Isn’t Always Good Enough


History

In 1981 Motorola launched an initiative calling for a 5-year, 10X


improvement in quality

In 1987 Motorola initiated its “Six Sigma Quality” initiative, the goal was no more
than 3.4 defective parts per million (ppm) across the company

• A 4-year 100X quality improvement goal was set

In 1988, Motorola won the Malcolm Baldrige National Quality Award

• Motorola then shared its “Six Sigma” approach with other companies

In 1989, Motorola Chairman, Bob Galvin asked Mikel Harry to head the Six
Sigma Research Institute, an organization that received funding from a
number of Fortune 500 companies
Overview of Six Sigma

It is a Philosophy It is a Process
• Anything less than ideal is an • To achieve this level of
opportunity for improvement performance you need to:
• Defects cost money Define, Measure, Analyze,
• Understanding processes and Improve and Control
improving them is the most efficient
way to achieve lasting results

It is Statistics
6 Sigma processes will produce
less than 3.4 defects per million
opportunities
Customer Satisfaction + Efficient Systems =
Improved Profitability
Interrelationship Diagram of Six Sigma
Infrastructure
Site Champion and Executive Staff
Hands-On Champion
Master Black Belt
Black Belts and Green Belts
All Employees
Three Emphasis Areas for Six Sigma
Six Sigma 3 Critical Elements
Defining and using business objectives and metrics that
focus our attention on performance and defects that are most
important to the customer and have the greatest potential
for impacting the bottom line

Systematic
Dedicated Approach to
resources and improving
focused performance
infrastructure, and reducing
trained in the defects which
use of the 6 are important
Sigma problem to the customer
solving and (qualitative &
process statistical)
improvement
methodology
How does Six Sigma fit into the IT World?

– Integrate with the SDLC and PM Methodology

– SDLC (Business Proposal, Requirements, Design,


Development, Testing, Implementation)

– PM (Initiation, Planning, Implementation, Control, Closure)

– Integrate and rollout into the PMO Corporate wide


strategy, methodologies, processes, and tools
Process Improvement
DMAIC Process Improvement Methodology
DMAIC - simplified
Six Sigma Approach
DMAIC approach

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


Cause and Effect Diagram
Cause and Effect Diagram
Cause and Effect Diagram
Cause and Effect Diagram
Step 5 - Add Detailed Levels
Step 6 - Analyze the Diagram
Cause and Effect Diagram
Multiple Causes
Root Cause
Root Cause Analogy
What is Lean Six Sigma ?
Definition – Value Adding
Definition – Non Value Adding
Process Flow - Order to Delivery
Terminology - CTQ
Complaint
Define Customer Requirements
Six Sigma – Companies in India
Thank You !

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