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Six Sigma: Strategy and Benefits

Six Sigma is a statistical methodology for improving business processes through the identification and removal of defects. It was originally developed by Motorola and aims for 99.9997% accuracy. The document discusses the Six Sigma methodology, which includes DMAIC for improving existing processes and DMADV for designing new processes. It also outlines benefits such as reduced waste, data-driven decision making, and improved customer satisfaction. Challenges include perceptions of complexity and the need for extensive training.

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39 views11 pages

Six Sigma: Strategy and Benefits

Six Sigma is a statistical methodology for improving business processes through the identification and removal of defects. It was originally developed by Motorola and aims for 99.9997% accuracy. The document discusses the Six Sigma methodology, which includes DMAIC for improving existing processes and DMADV for designing new processes. It also outlines benefits such as reduced waste, data-driven decision making, and improved customer satisfaction. Challenges include perceptions of complexity and the need for extensive training.

Uploaded by

16211a0470
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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“Six Sigma”: What is it?

 A statistical measure of variation which seeks to identify


and remove the causes of defects and errors in
manufacturing and business process.
 six sigma is a business management strategy originally
developed by Motorola
 Full six sigma equals 99.9997% accuracy.
 Methodology for improving key success.
 A “tool box” of quality and management tools for
problem resolution.
 A business philosophy focus on continuous improvement.
 An organized process for structured analysis of data.
When to use Six Sigma?
 Unknown causes/situations.
 Problem at common place and not well defined.
 When “broad spectrum” approach is inappropriate.
 When problem solving method failed.
 In a complex situation with many variable.
Why to adopt six sigma?
Defined process for problem solving.
Proven methodology to solve problem.
Consistency with result.
Focus on the “bottom line” which encourages
credibility/support from the top of the organization.
Focus around target.
Reduces variations at all point.
What are the Rewards of
Six Sigma?
 Improved reliability and predictability of software
products and services.

 Increased value to the customers and


shareholders.

 Improvements in organizational morale.


METHODOLOGIES……..
Six Sigma has two key methodologies:– DMAIC and DMADV.

 DMAIC is used to
 DMADV is used to
improve an existing
create new product
business process. designs or process
designs in such a way
that it results in a more
predictable, mature
and defect free
performance.
“Methodology”:-
D M A D V D M A I C
Define Define
Measure Measure
Analyze Analyze
Design Improve
Verify Control
What are the Challenges of Six Sigma?
 The perception of  Training – especially
“Sick Sigma”. management level.

 Understanding the  Consultants can’t


DFSS (Design For Six make it happen.
Sigma)

 It is not a quick fix nor


a recipe
Which Business Function Needs It?
Design

SERVICE PURCH
.

6 Sigma
ADMIN. Methods
Marketing

QA MFG.
MAINT.

As long as there is a process that produces an output, whether it is


a manufactured product, data, an invoice, etc…, we can apply the
Six Sigma Breakthrough Strategy. For these processes to perform
to a customer standard they require correct inputs!!!
Benefits of Six Sigma.
 Focus on customers.  Systematic problem solving.
 Improved customer loyalty.  Employee motivation.
 Reduced cycle time.  Data analysis before
 Less waste. decision making.
 Data based decisions.  Faster to market.
 Time management.  Team building.
 Sustained gains and  Improved customer
improvements. relations.
Summary…..
 Customer focused….Driven by the Voice of the Customer.
 Strong top management leadership, commitment, and
involvement.
 Project orientation with measurable financial results.
 Consistent methodology for all work. Time driven.
 Time driven….more accountable.

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