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PLENARY SESSION-I SIX SIGMA IN SERVICE SECTOR delivered by Dr. P. Balasubramanian, Ph.D. Founder & CEO, Theme Work Analytics, Bangalore.

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Presentation on theme: "PLENARY SESSION-I SIX SIGMA IN SERVICE SECTOR delivered by Dr. P. Balasubramanian, Ph.D. Founder & CEO, Theme Work Analytics, Bangalore."— Presentation transcript:

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2 PLENARY SESSION-I SIX SIGMA IN SERVICE SECTOR delivered by Dr. P. Balasubramanian, Ph.D. Founder & CEO, Theme Work Analytics, Bangalore & Entrepreneur in Residence at Purdue University, USA at M.S.Ramaiah Institute of Technology, Bangalore on March 10, 2008 NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES

3 SIX SIGMA IN SERVICE SECTOR Services Sector consists of Transportation, logistics and warehousing Wholesale and Retail Distribution Installation, Implementation and Maintenance Financial Services such as Banking and Insurance Health Care Hospitality and Tourism Travel Consulting Services Information Technology Services Media & Entertainment Education & Training Government Services such as RTO. Registrar of Properties And more….

4 SIX SIGMA IN SERVICE SECTOR Distinguishing characteristics of Service Sector People intensive Process intensive Skill/Knowledge intensive Hence Face the challenge of Motivation and retention of staff Customer focus to maintain Performance and Quality Continuous Learning for Performance Improvement Knowledge sharing and knowledge management

5 Six Sigma is a philosophy that underlies efforts to improve business performance and customer satisfaction –Using facts and data to eliminate waste and variation –Eliminating activities that dont add value SIX SIGMA IN SERVICE SECTOR

6 Six Sigma is … a Statistical measure of performance an aspirational goal for quality an approach and methodology for continuous improvement of quality Performance is also a dimension of quality ! SIX SIGMA IN SERVICE SECTOR

7 6 Sigma = 3.4 defects per million 5 Sigma = 230 defects per million 4 Sigma = 6,210 defects per million 3 Sigma = 66,800 defects per million 2 Sigma = 308,000 defects per million 1 Sigma = 690,000 defects per million SIX SIGMA IN SERVICE SECTOR

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9 There is no known or documented Service Organization that has reached the Six Sigma level of quality ( 3 defects in million deliveries) anywhere in the world except the Mumbai Dabbawallas. However Six Sigma Concepts and Methodology,as a means to improve quality and Performance, are applicable in almost all organizations. SIX SIGMA IN SERVICE SECTOR

10 Align Performance measures to Goals. Let PMs be measurable Set benchmarks Document As is Where is Processes Choose appropriate paths for improvement Implement, Monitor & Control Define the problem Measure current process capability Analyze root causes of variability Improve process capability Control to sustain improvements SIX SIGMA IN SERVICE SECTOR Six Sigma in action

11 WORK IS WORSHIP Tiffin baskets weight: kgs. SIX SIGMA IN SERVICE SECTOR Nutan Mumbai Tiffin Box Suppliers Association

12 Mumbai Dabbawallas (NMTBSA) History : Started in 1890 Charitable trust : Registered in 1956 Avg. Literacy Rate : 8 th Grade Schooling Total area coverage: 60 Kms to 70 Kms Employee Strength : 5000 Number of Tiffin's : 2,00,000 Tiffin Boxes i.e 4,00,000 transactions every day. Time taken : 3 hrs SIX SIGMA IN SERVICE SECTOR

13 The Flow Logic Grant Road (12) Churchgate (1-10) Lower Parel (14) Zones for destination Distribution By Carriers at lunchtime To offices Point of Aggregation And Sorting C DB A E Collection from home 1 SIX SIGMA IN SERVICE SECTOR

14 Coding System VLP : Vile Parle (suburb in Mumbai) 9EX12 : Code for Dabbawalas at Destination EX : Express Towers (building name) 12 : Floor no. E : Code for Dabbawala at residential station 3 : Code for destination Station eg. Churchgate Station (Nariman Point) Dsouza

15 Zero % fuelZero % investment Zero % modern technologyZero % Disputes % performance100 % Customer Satisfaction SIX SIGMA IN SERVICE SECTOR

16 Working of NMTBSA Error Rate : 1 in 16 million transactions Six Sigma performance ( ) Technological Backup : Nil. Cost of service - Rs. 300/month ($ 6.00/month) Standard price for all (Weight, Distance, Space) Rs. 36 Cr. Turnover approx. [6000*12*5000= i.e Rs. 36 crore p.a.] No strike record as each one a share holder Earnings to 6000 p.m. Diwali bonus: one months from customers. SIX SIGMA IN SERVICE SECTOR

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30 Aravind Eye Hospital : Madurai 1.Process Mapping and Reengineering 2.Task specialization 3.Assembly Line set up 4.Young rural women recruited as paramedics 5.Rural Eye Camp is the source (1500) SIX SIGMA IN SERVICE SECTOR : Indian Industries AravindUS/UK Hospitals Cost Per Operation in USD 50 to to 3000 Cost of IOL in USD 5200 No.of operations per day average 800? Capsule rupture & Vitreous loss 2.0 %4.4 % Corneal edema 8.0 %9.0 % Profitability Very good anemic

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32 Embedding Six Sigma Concepts in e Business Dell Direct reach to end customers. Elimination of the Accounts Receivable function. Met specific needs of each customer. Amazon.com First Virtual Store with delivery functions. Inventory Aggregation eBay Most successful market place for buyers and sellers to meet. Fair value determination of used and new goods. Buyer,Seller assurance. Hotmail First major product innovation in internet. Revolution in Marketing. Bhoomi Pioneering use of internet in e Governance. Malpractices killer ICICI Bank Internet as a channel defines the Market Segment & its Marketing Strategy Air Deccan Agent less Sales leading to 20 % reduction in costs. Elimination of paper and paper work e Business innovators

33 Embedding Six Sigma Concepts in e Business Challenges facing the e Business innovators. They need Six Sigma approach … Issue Innovator ProfitabilityQuality of Service Market Growth Service levelDifferent- iation Optimal mix Dell Amazon.com e Bay Hotmail Bhoomi ICICI Bank Air Deccan

34 1.Time taken to book a ticket 2.Timely departure 3.Over booking 4.Revenue realized per seat km 5.Safety Bus, Train or Air travel SIX SIGMA IN SERVICE SECTOR

35 1.Wait time in the system 2.Time taken for a transaction 3.Channel flexibility 4.Timely alerts 5.Statement regularity Banking Services

36 SIX SIGMA IN SERVICE SECTOR 1.Defects per 1000 lines of source code 2.Cost of Quality 3.Developer, Tester Productivity 4.Cost and Time over-run 5.Recruitment Effectiveness Software Services

37 SIX SIGMA IN SERVICE SECTOR 1.Measure of Faculty Performance Subject wise Batch wise (Full time, Part time, Distance Learning) 2. Variance Reduction vs Mean score 3. Attendance impact Education, Training Sector

38 Can lead to rewriting business paradigms Embedding Six Sigma Concepts in e Business Do away with a complete function such as Accounts Receivable & collections Eliminate non value adding intermediaries Reduce finished goods inventory dramatically Meet the expectation of every customer Cross sell effectively Improve operational efficiency and effectiveness by leaps & bounds Reach current information swiftly to stakeholders for their optimal use Be a fair and impartial judge Improve transparency Reduce/ eliminate leakages Study materials on the net, Examination & Assessment, Alumni Relationship Management are some key innovations in the Education Sector widely being adopted around the world.

39 NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES SIX SIGMA IN SERVICE SECTOR Acknowledgement Aravind Eye Hospital Slides and Information from Dr. Aravind Srinivasan, Administrator Dr. Usha Kim, MLOP ( Mid Level Ophthalmic personnel) Mumbai Dabbawalla Slides & information from

40 NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES Thanks and Best Wishes Dr.P.Balasubramanian Founder and C.E.O., Theme Work Analytics, Bangalore, India, Ph : SIX SIGMA IN SERVICE SECTOR


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