SIX SIGMA IMPLEMENTATION

Roadmap for Six Sigma Implementation Define customer expectations Define the project goal Measure the current process and collect data Analysis of the movement of the resources Analyse the data Optimise the current process Control the future Celebrate

KEY PRINCIPLES TO SIX SIGMA PROJECT SUCCESS Principle No 1: committed leaders with edge Principle No 2: sigma efforts must be integrated with existing initiatives, business strategy, and key performance measures. Principle no.3: Successful six sigma efforts are supported with a framework of process thinking. Because it's such a robust approach to quality improvement

Principle No.4: Six sigma requires disciplined customer and market intelligence gathering. To make a company's six sigma efforts work, it must have a disciplined process for keeping in touch with existing levels of customer satisfaction and loyalty Principle no.5: Six sigma projects must produce real savings or revenues. Principle no.6: Six sigma efforts are led in the trenches by thorough trained core of full time team leaders Principle No 7: Six sigma is sustained reinforcement and reward of leaders who support initiatives and improvement teams that carry them out.

Project Identification A project may be seen as an investment activity where financial resources are expended to create capital assets that produce benefits over extended period of time. Project identification is the initial phase of the project development cycle. It begins with the conceiving of ideas or intentions to set up a project. These ideas are then transformed into a project.

Essential characteristics of projects 23/04/2018 Essential characteristics of projects For projects to be properly conceived, the characteristics below must be clearly defined: Objectives Expected outputs Intended beneficiaries Planned lifespan Extended outcome of the project Principle stakeholders Financial plan and source of financing

Project ideas conceived by: 23/04/2018 Project ideas conceived by: Individuals Groups of individuals (community) Local leaders NGOs Policy makers Planners International development agencies Government pronouncements Project ideas may be due to: prevailing problems in a given area. availability of resources in a given location.

Project identification 23/04/2018 Project identification Clear project identification allows you to answers questions like: How do the projects come about? Where do projects come from? Why are projects where they are?

Six Sigma Project Selection This is a very important task that needs to be manage. To ensure that objectives of Six Sigma are met, projects must be strongly linked to the strategic goals of the companied by the senior management.

Detailed Project Selection Criteria Achieving breakthroughs requires prioritization of opportunities. There are many more opportunities than there is time and resources to work on them. When selecting a process, we are trying to prioritize exactly which problem to solve. If the problem is clear we move on to define the problem. In selecting a project, consider these issues: Financial and strategic benefits Improved customer satisfaction, CSI Compatible with current goals and objectives Translatable to other areas of the business Probability of success Level of effort, amount of resources needed to complete project

Flow of project Selection

Six Sigma projects can be selected carefully considering: 1. Areas of Customer dissatisfaction Review input data for customer satisfaction surveys, informal inputs, complaints data, market share trends, lost customers, warranty data , service levels.

2.Strategic Goals of the company Top management needs to decide priorities for improvement based on customer inputs, business objectives, competition, benchmarking , technology etc.. Such as : Reduction of cycle time to deliver, Improving reliability, Reducing inventory Improving yield Reduce cost of poor quality Reduction in development cycle time Improve equipment utilization Supply chain performance

3. Areas of inefficiency and waste: Rework data, number of inspectors doing “sorting”, 100% inspection points, process capability data, handling, long lead times, large work in process, long transaction cycle times Inaccurate databases such as inaccurate stock levels, incorrect bill of material, incorrect process cycle time data, Incorrect customer data base

4.Financial Benefits Green Belt projects should have savings of the order of US$ 45- 100,000 (approximately Rs. 20 to 50 lacs) and Black Belt projects should generate savings of US$ 100,000 (approximately Rs.1,00,000,00).

5.Formulating Six Sigma Strategies: Key points from customer inputs are: • Reliability of the products needs to be improved to the extent that customer is willing to little extra for lower failure rates. This is due to the fact that downtime of the equipment is expensive as cost of total equipment is much higher than the cost of our machine. • New products need to be introduced quickly before competitors

Some useful questions for project selection and scope ? Does the project strongly relate to business goals? Does it have significant impact on customer satisfaction? Is the project clearly defined? Can we expect good savings and benefits? Can the project be completed in 3 to 6 months Is it too large? (Boiling the ocean!) Is it too small? Is it too difficult or too easy?

Some examples of Six Sigma Projects: Reduce Scrap % of expensive parts from 4% to 1% Reduce transaction Cycle time from 9 days to 4 days Improve accuracy of bill of material from 94% to 99% Improve accuracy of stores from 96% to 99% Improve Right First Time of assembly from 66% to 85% Reduce Customer defects from 30,000 PPM to 5,000 PPM Improve process yield from 75% to 90% Improve utilization of lab equipment from 35% to 70%