Introduction to Six Sigma
By
Tushar Ghosh
S-6062
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Purpose of Six Sigma
To make customer happy
To increase profits
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Origin of Six Sigma
1987 Motorola develops Six Sigma
Other companies adopts Six Sigma-
• GE
• Whirlpool
• Honeywell
• Johnson & Johnson
• Nissan
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What can it do?
Motorola
5-fold growth in Sales
Profits climbing by 20% pa
Cumulative savings of $14 billion over 11years
General Electric
$2 billion savings in just 3years
The No.1 company in USA
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GE Six Sigma Economies
2000
1800
1600
1400
1200
1000 Series 1
800 Series 2
600
400
200
0
1996 1998 2000 2002
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It’s a philosophy:
• Anything less than ideal is an
opportunity for improvement.
• Defects costs money
• Understanding processes and
improving them is the most efficient
way to achieve lasting results
It’s a process:
Its is statistics
• To achieve this level of • 6 Sigma processes will
performance you need produce less than 3.4
Define, Measure, defects per million
Analyze, Improve and opportunities
Control
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Philosophy
Know what’s important to customer (CTQ)
Reduce defects (DPMO)
Centre around target (Mean)
Reduce variation (Standard Variation)
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COPQ (Cost of Poor Quality)
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COPQ v/s Sigma Level
50%
45%
40%
35%
30%
25% COPQ
20%
15%
10%
5%
0%
2 3 4 5 6
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Defect Opportunity
A unit has 10 parts and in each part there are 4
opportunities of defects
Total defects opportunities are 10 x 4 = 40
DPO= No. of defects/ No. of defect opportunity
In this case, if 10 units have 3 defects then
defects per unit = 3/10 = 0.3
DPO = 3 / (40x10) =0.0075
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DPMO
DPO multiplies by one million
In this case,
DPMO = 0.0075 x 1,000,000 = 7500
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Six Sigma Measurement
Defects per million
600000
500000 500000
400000
300000 308300
Defects per million
200000
158650
100000
67000
0 227006220
1350 233 32 3.4
1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
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DMAIC
Define – What is
important?
Measure – How are we
doing ?
Analyze – What is wrong?
Improve – Fix what’s
wrong
Control – Ensure gains are
maintained to guarantee
performance
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Six Sigma – Shortcomings
Eliminate Defects but falls short on Optimizing
Process Flow
Not so strong on Identification of Waste
Not so Strong on Identification of Value Added /
Non-Value Added Activities in a Process
Reduces Variation but not as effective on increasing
Speed of Process
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Six Sigma Training
Master Black Belt: Mentor, trainer and coach of
Black Belts and others in the organization
Black Belt: Leader of teams implementing the Six
Sigma methodology on projects
Green Belts: Delivers successful focused projects
using the Six Sigma methodology and tools
Team Members/Yellow Belt: Participates on and
supports the project teams, typically in the context
of his or her existing responsibillities
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