1. SIX SIGMA IMPLEMENTATION

2. 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

3. 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

4. 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.

5. 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.

6. Essential characteristics of projects
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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

7. Project ideas conceived by:
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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.

8. Project identification
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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?

9. 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.

10. 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

11. Flow of project Selection

12. 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.

13. 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

14. 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

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

16. 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

17. 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?

18. 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%