six sigma - benefits to organizations
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Six Sigma :Benefits to Organizations
Presentation by
Benchmark Six Sigma
Six Sigma Implementation
Six Sigma has:
• Given organizations a new way of doing business• Enabled them to have a wise application of statistical tools within a
structured methodology• Enabled repeated application of strategy to individual projects• Complete projects that have had a substantial impact on the ‘bottom
line’(profit) as well as the ‘top line’(revenue)
Organizations use Six Sigma as a scientific and practical method to achieve improvements in a company
Scientific:• Structured approach.• Assuming quantitative data.
Practical:• Emphasis on financial result.• Start with the voice of the customer.
“Show me the data”
”Show me the money”
Six Sigma Implementation
Six Sigma Methods Production
DesignService
Purchase
HRM
Administration
QualityDepart.
Management
M & S
IT
Where has Six Sigma been applied?
Examples of ‘Six Sigma’ companies
Six Sigma:GE Success Story
“the most important initiative GE has ever undertaken”.Jack Welch
Chief Executive OfficerGeneral Electric
• In 1995 GE mandated each employee to work towards achieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma • GE’s goal was to reach 6 sigma by 2001in critical processes• From 1998 onwards GE realized benefits worth 2billion USD.• GE was the first company to Implement Six Sigma in services and also in offshoring.
• In 1995 GE mandated each employee to work towards achieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma • GE’s goal was to reach 6 sigma by 2001in critical processes• From 1998 onwards GE realized benefits worth 2billion USD.• GE was the first company to Implement Six Sigma in services and also in offshoring.
GE “Service company” - examples
• Approving a credit card application
• Installing a turbine
• Lending money
• Servicing an aircraft engine
• Answering a service call for an appliance
• Underwriting an insurance policy
• Developing software for a new CAT product
• Overhauling a locomotive
Six Sigma:Motorola Success Story
Following was the statement made by Robert W Galvin, Chairman of the Executive Committee, Motorola. This statement was made after first decade of Six Sigma Experience.
Following was the statement made by Robert W Galvin, Chairman of the Executive Committee, Motorola. This statement was made after first decade of Six Sigma Experience.
“At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions….How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in cumulative manufacturing cost savings of over 11 billion dollars”*.
Six Sigma:AIRTEL Success Story
• In 2002 Bharti group (Airtel) launched Six Sigma• It has since than successfully applied Six Sigma in all its businesses and has realized savings worth billions of rupees.• Six Sigma is an Integral part of its DNA with a dedicated team at each of its Circles.• Airtel’s basic services businesses yielded 250% return on Investment
in the first year of implementation itself.• There are more than 150 Black Belts working in the entire group
• In 2002 Bharti group (Airtel) launched Six Sigma• It has since than successfully applied Six Sigma in all its businesses and has realized savings worth billions of rupees.• Six Sigma is an Integral part of its DNA with a dedicated team at each of its Circles.• Airtel’s basic services businesses yielded 250% return on Investment
in the first year of implementation itself.• There are more than 150 Black Belts working in the entire group
Six Sixma: Success Stories from diverse Industries
10
Qualtec’s ServicesSix Sigma deployment created • Breakthrough Performance, • Captured Cost Savings• Customer Delight
Projects –•Insurance•Lending•Securities
Fortune 50 Global Co.
Power Steering
CIO recognized the
need to get real-time
information from his
global team
on the rationale and
status for all his
significant projects and
over 500 projects
in 27 countries.
Benefits -CIO - We have saved over $500 million dollars from 500 Six Sigma Projects
LG Electronics -England
• Order Lead Time Reduction From 55 to 41 days• Improving Forecast accuracy• Inbound lead time reduction from 8 days to 6days
Savings from Interest ChargesStock amountFreight Charges
Benefits -
Increased Brand
Image
Enhanced Customer
Satisfaction
Savings USD 850K
Benefits -We have saved over $20 million dollars in savings in two years of using Six Sigma Qualtec's services!"- Max Gordon, Navistar
Savings
Some other companies that have achieved success
Industry Wise Success Stories
Companies in almost all sectors have a Six Sigma success story