Six Sigma in 10 Minutes - YouTube

Welcome to this course on introduction to Six Sigma this course will provide

you with an overview of Six Sigma approach before we go any further let us

understand that the purpose of Six Sigma is to increase profits how do we

increase profits we do that by making customer happy how do we make customer

happy that is done by reducing variation and providing consistently good product

or service and by reducing defects and reworks

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Six Sigma approach was first proposed and developed by Bill Smith of Motorola

in 1986 it is based on the works of others such as you heard Iran Taguchi

Deming and Ishikawa and their contributions to Quality Control TQM and

zero defects On January 15 1987 Motorola launched a long-term quality program

called the Six Sigma quality program after implementing Six Sigma in 1988

Motorola was among the first recipients of the Malcolm Baldrige National Quality

Award since then Six Sigma has constantly caught the

attention of industry as you would see in the next slide allied signal adopted

Six Sigma methodology in 1992 and General Electric in 1995

even though Motorola is the founder of Six Sigma General Electric is the

company which has proven that Six Sigma is an exciting management strategy

General Electric is indeed the missionary of Six Sigma

General Electric began at Six Sigma program in 1995 and has achieved

remarkable results since then originally Six Sigma was designed to be a practice

to improve the manufacturing processes by eliminating defects it quickly became

adopted in other parts of the business too as X Sigma showed great success

before we go any further into this course let us understand what is Six

Sigma to explain Six Sigma in very general terms let us take an example of

a pilot landing on a landing strip if the pilot is able to land on half of the

landing with most of the times then we can say that the pilot has Six Sigma

landing capability the key thing to understand here is that the pilot is

operating in half of the allowable margin on the other hand if we talk

technically Sigma is a letter in the Greek alphabet that in terms of

statistics means standard deviation we will explore this statistical aspect

later in this course and we'll learn that a Six Sigma process allows only

three point four defects per million opportunities so it is a program aimed

at than your elimination of defects from every product process and transaction

in today's highly competitive business environment the company leadership faces

a number of challenges this slide touches upon some of these challenges

the first and foremost challenge is to satisfy customers that is the main

reason for the company to be in the business actually many of the points

listed here are related to the main issue of satisfying customer as the

expectations of customers increase the companies have to use the latest

available technology to meet the demands quicker a lesser price and meeting the

specific needs of individual customers to meet these challenges companies need

dedicated employees retaining the best employees is a challenge for the

companies

Six Sigma is based on project by project improvement approach improvement

projects are selected based on organizational strategy these projects

are customer and profit focused a team works on the selected project and

resolves the issue the financial benefits from the project are calculated

there is a reward and recognition system to motivate

these are some of the gains achieved from implementing Six Sigma

this slide is from the annual report of General Electric the main thing to note

on this slide is that you will have to invest initially before you start

reaping the gains if you look at the 1996 portion of the graph the cost then

was more than the benefits the big part of this cost is company's investment in

training people

Six Sigma has three different meanings as a statistical tool it focuses on

maintaining three point four defects per million opportunities as a process it

focuses on D Mac approach of process improvement DMACC or DMAIC means define

measure analyze improve and control we will learn d-mac approach later in this

course as a philosophy Six Sigma means that defects are costly and can be

eliminated it aims to deliver the product or the service in most efficient

and effective way

we have already talked about this subject in the previous slide this is

another way of presenting the fact that Six Sigma has three different meanings a

philosophy a process or statistics

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for any program to be successful the role of top management is undeniably

important having said that the question arises what should management do to

drive Six Sigma in the organization first and foremost the management should

understand the concept of Six Sigma commits itself to its implementation and

should actively participate in the process

once the management has decided to implement Six Sigma in the organization

these are the key issues they need to consider what should be the rate of

implementation how will it fit into their existing program

how will it be controlled and monitored

Six Sigma approach can be summarized into these four points before you

improve know what is important to the customer so that you work on parameters

that enhance customer satisfaction reduce defects and meet customer

specifications DPM o stands for defects per million opportunities attempt should

be to target at the center of the specification rather than be within the

target range variation is the biggest enemy of quality so attempt to reduce

the variation

in Six Sigma customer focus is the key priority any improvement is measured by

its impact on customer satisfaction Six Sigma improvements are based on facts

and data the focus is on the process improvement tools in Six Sigma support

proactive management as against reactive management Six Sigma supports

optimization of the organization as a whole instead of optimization of

departments or functions this is achieved through multi discipline teams

when you attempt to achieve perfection there is a chance that you would risk

failure Six Sigma methodology has a system of periodic reviews and accepting

failures

in the equation y equals FX y is the output and X are inputs in data driven

approach you observe the effect of process inputs on the process outputs in

actual case y or the output may be profit customer satisfaction or the

yield this output depends on number of inputs or X to learn here is to solve a

problem you work on the root causes and not on the symptoms

there are two improvement processes in Six Sigma D Mac and D matvey if you are

looking for improving an existing process go for D Mac however if you want

to create a new process go for D FSS or design for Six Sigma and it uses D

matvey approach we will focus on D Mac approach in this course

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