Premium Essay

Importance of Six Sigma in Process Improvement

In:

Submitted By lilnic
Words 3755
Pages 16
Importance of Six Sigma as Process and Sustainability Improvement in United Parcel Services

Martin Tunggadjaja

March 2013

ABSTRACT

Six Sigma is a process improvement developed by Motorola in 1985 that encompasses a set of strategies and tools acquired in order to improve the current business practice and systematic processes to fulfill the objectives. It is initially designed to measure how many faults or defects are in the process so that they can be eliminated systematically as part of improvement to reduce weaknesses and reinforce quality. One of popular process improvement methodology that is part of Six Sigma is DMAIC, which consists of: Define, Measure, Analysis, Improve and Control. Originally Six Sigma was first incorporated into manufacturing industries; this methodology also applies well to logistics companies since the focus is customer-oriented. Supply chain management is a key strategic factor for increasing organizational effectiveness and for better realization of goals such as enhanced competitiveness, better customer care and increased profitability (Gunasekaran, Patel, Tirtiroglu, 2001, p71). Therefore, Six Sigma as shown to be successful in delivering business benefits through variation reduction (Knowles, Whicker, Femat, 2005, p51). This paper discusses how Six Sigma apply to the logistics processes and an example case study of United Parcel Service (UPS) incorporating this technique to reposition itself in the world’s most improved logistics and supply chain provider.

Page 1 of 15

1. Introduction
Six Sigma is a comprehensive system to achieve, sustain and maximize business success of companies (Ranawat et al, 2007, p1). With this system, it is possible to understand customer needs, to use facts, data and statistical analysis more disciplined, and to manage, improve and reinvent business processes (Pande, Neuman, Cavanagh,

Similar Documents

Premium Essay

Six Sigma

...TABLE OF CONTENTS History of Six Sigma………….……………………………….…………...3 What is Six Sigma………..……..………………………………………….4 DMAIC……………………..……………………………………………...4 Importance of Six Sigma..…..……………………………………………...6 Roles and Responsibilities of Six Sigma.…………………………………..6 Six Sigma Structure……..………………………………………………….8 Conclusion……………………………………………………………….…9 References…………………………………………………………………10 History of Six Sigma The roots of Six Sigma can be traced back to the early industrial era, during the eighteenth century in Europe. Carl Frederick Gauss introduced it as a conceptual normal curve metric. The evolution of Six Sigma took one step ahead with Walter Shewhart showing how three sigma deviations from the mean required a process correction. Later in 1980, it got a definitive form when a Motorola engineer coined the term Six Sigma for this quality management process. Motorola not only implemented this system in their organization, but they copyrighted it as well (Jocowski, 2009). This powerful process improvement technique has changed the way companies all over the world set objectives, and prepare for long term growth and stability. Motorola realized that they were losing a large portion of their business and productivity through the cost of non-quality. Motorola was having 2,600 parts per million losses in manufacturing and also were losing business due to defective parts and support of systems in the field that were not reliable. Motorola,...

Words: 1633 - Pages: 7

Premium Essay

Case Study on Six Sigma at Wipro Technologies: Thrust on Quality

...Case study On Six Sigma at Wipro Technologies: Thrust on Quality Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of clients. Wipro has 40+ ‘Centers of Excellence’ that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, much above the industry average of 55%. Six Sigma provides the tools for continuous improvement on existing processes thereby helping sustain the SEI-CMM Level 5 and CMMi certifications. This case focuses on the initiatives taken by Wipro Technologies to implement the Six Sigma Quality tool to achieve sustained strategic business results. It explores the implementation procedure at Wipro Technologies and the benefits reaped by the company on account of adopting Six Sigma. The case also throws light on the recent developments in the Six Sigma concept including Wipro’s Six Sigma Skill base and consulting experience and explains how the company intends to build its expertise and experience '' to bring continuous process improvement to the organization. ...

Words: 2613 - Pages: 11

Premium Essay

Six Sigma at Wipro

...1 Case study On Six Sigma at Wipro Technologies: Thrust on Quality Abstract: Six Sigma at Wipro Technologies: Thrust on Quality Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of clients. Wipro has 40+ ‘Centers of Excellence’ that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, much above the industry average of 55%. Six Sigma provides the tools for continuous improvement on existing processes thereby helping sustain the SEI-CMM Level 5 and CMMi certifications. This case focuses on the initiatives taken by Wipro Technologies to implement the Six Sigma Quality tool to achieve sustained strategic business results. It explores the implementation procedure at Wipro Technologies and the benefits reaped by the company on account of adopting Six Sigma. The case also throws light on the recent developments in the Six Sigma concept including Wipro’s Six Sigma Skill base and consulting experience and explains how the company intends to build its expertise and...

Words: 3598 - Pages: 15

Premium Essay

Six Sigma in Human Resource Management

...Title: Importance of Six Sigma in Human Resource Management ABSTRACT Implementing six sigma methodology in HR functions raises the questions like how can HR be measured?’, ‘How can you apply 3.4 defects per million opportunity rule to HR when no organization would have a million employees?’ There is a high expectation from customers for every organization. To meet this expectation it has become imperative on the part of every department to perform to the best of its potential. The HR cannot afford to be an exception. Hence HR cannot afford to keep off from using Six Sigma tools and techniques to improve the processes of its own department. Why should the HR professional care what Six Sigma is or how it can be applied in the HR function? This paper illustrates the importance of six sigma methodology in Human Resource management. Interacting with few Black Belt experts who are working on six sigma projects in various companies, this paper also illustrate on 5 C’s factors such as change, communication, captain, consideration and choosing project which plays a vital role in successful implementation of six sigma methodologies in HR functions. Key words: Six Sigma, Human Resource Management, 5 C’s. INTRODUCTION Perfection is an endless dream. Man’s quest for flawless performance in all his work is taking him to the pursuit of constant improvement. Defects are dangerous, they have consequences much worse than earlier they use to. So, modern times have compelled the...

Words: 4897 - Pages: 20

Premium Essay

Lss Lean

...LSS lean Six Sigma Abstract Purpose – Although research has been undertaken on the implementation of lean within various industries, the many tools and techniques that form the “tool box”, and its integration with Six Sigma (mainly through case studies and action research), there has been little written on the journey towards the integration of the two approaches. This paper aims to examine the integration of lean principles with Six Sigma methodology as a coherent approach to continuous improvement, and provides a conceptual model for their successful integration. Design/methodology/approach – Desk research and a literature review of each separate approach is provided, followed by a view of the literature of the integrated approach. Findings – No standard framework for lean Six Sigma or its implementation exists. A systematic approach needs to be adopted, which optimises systems as a whole, focusing the right strategies in the correct places. Originality/value – This paper contributes to knowledge by providing an insight into the evolution of the lean Six Sigma paradigm. It is suggested that a clear integration of the two approaches must be achieved, with sufficient scientific underpinning. Keywords Lean production, Six sigma Paper type Literature review 1. Introduction The Toyota Production System (TPS) provided the basis for what is now known as lean thinking, as popularised by Womack and Jones (1996). The development of this approach to manufacturing began shortly after...

Words: 6543 - Pages: 27

Premium Essay

Lss for Mba

...BA8039 | LEAN SIX SIGMA | L T P C | | COURSE OBJECTIVE: | | 3 0 0 3 | | | | | | To gain insights about the importance of lean manufacturing and six sigma practices. COURSE OUTCOME: The student would be able to relate the tools and techniques of lean sigma to increase productivity UNIT I LEAN & SIX SIGMA BACKGROUND AND FUNDAMENTALS | 9 | Historical Overview – Definition of quality – What is six sigma -TQM and Six sigma - lean manufacturing and six sigma- six sigma and process tolerance – Six sigma and cultural changes – six sigma capability – six sigma need assessments - implications of quality levels, Cost of Poor Quality (COPQ), Cost of Doing Nothing – assessment questions UNIT II THE SCOPE OF TOOLS AND TECHNIQUES | 9 | Tools for definition – IPO diagram, SIPOC diagram, Flow diagram, CTQ Tree, Project Charter – Tools for measurement – Check sheets, Histograms, Run Charts, Scatter Diagrams, Cause and effect diagram, Pareto charts, Control charts, Flow process charts, Process Capability Measurement, Tools for analysis – Process Mapping, Regression analysis, RU/CS analysis, SWOT, PESTLE, Five Whys, interrelationship diagram, overall equipment effectiveness, TRIZ innovative problem solving – Tools for improvement – Affinity diagram, Normal group technique, SMED, 5S, mistake proofing, Value stream Mapping, forced field analysis – Tools for control – Gantt chart, Activity network diagram, Radar chart, PDCA cycle, Milestone tracker diagram, Earned...

Words: 449 - Pages: 2

Premium Essay

Quaternary Concrete

...CHAPTER 1 INTRODUCTION 1.1 GENERAL OVERVIEW The Greek alphabet Sigma (σ) has become the statistical symbol and metric of process variation. The sigma scale of measurement is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defectives, and the probability of a failure. A company’s performance is measured by the sigma level of their business processes. Traditionally companies accepted three or four sigma performance levels as the norm, despite the fact that these processes created between 6,200 and 67,000 defects per million opportunities The Six Sigma standard of 3.4 defects per million opportunities is a response to the increasing expectations of customers and the increased complexity of modern products and processes (Thomas Pyzdek) Six sigma is reportedly easier to apply than many other quality management programs because it provides information about the change needed and the programs to execute the change. The strategy it uses is a five-step improvement process: define, measure, analyse, improve and control (DMAIC). This process is deeply integrated with the overall goals of the organization and, as such, requires top down implementation. Six sigma is more intense, focused and detailed than any other quality improvement techniques (Sawant and Patasker 2014). DMAIC framework is a Integration of several techniques such as CTQ (Critical to quality), Process Mapping (SIPOC), DPMO (defects per million), and FMEA (failure mode and effects analysis)...

Words: 610 - Pages: 3

Premium Essay

Toyota Quality Issues

...Quality Issues with Toyota Motor Vehicles Randy Kenepp 821 Vickie Drive Del City, OK 73115 Phone: 405-473-7998 Email: rkenepp@gmail.com Managing Quality - BSOP 588 Professor: Richard Sheng October 19, 2014 I. Introduction: Toyota Motor Corporation (TMC) is a motor vehicle and production business. TMC is headquartered in Aichi Prefecture, Japan. TMC was founded August 28, 1937 by Kiichira Toyoda. Kiichira Toyoda’s son Akio Toyoda is the current President of the company. The company was originally a division of the Toyoda Automatic Loom Works Company founded by Kiichira’s father, Sakichi Toyoda. World War II halted many of the company’s initial manufacturing, but by 1950, Toyota reopened production facilities. In the 1960s and 1970s, TMC began rapidly exporting automobiles to foreign markets (The Editors of Encyclopædia Britannica, paragraph 4). TMC has continued to grow and has manufacturing plants and distribution channels setup in many countries. As of May 2014, TMC has a 397.05 billion yen, or 3.69 billion dollars, of capital. As of March 31, 2014, TMC has 338,875 employees. TMC has had a long standing reputation for quality. TMC’s quality philosophy is stated on their website, Toyota-Global.com (2005), “In June 1961, TMC decided to adopt the system of Total Quality Control (TQC) to modernize management operations. To realize TQC, all employees in Toyota were required to ‘regard the next processes (on the production line) as their customers and provide them...

Words: 3561 - Pages: 15

Premium Essay

Case3

...Kim, Kumar, and Kumar (2012) set out to discover whether or not a link exists between innovation and quality management practices. They stress the importance of innovation in business as necessary to standing out among competitors and remaining fresh within the business’s respective market. For this reason, innovation has remained a hot topic among researchers for quite some time (Kim et al., 2012). The real question at hand is whether or not quality management has anything to do with innovation, as past research has suggested quality management as a precursor to innovation. Moreover, quality management is being embraced more and more by leading companies (Kim et al., 2012). The trouble is that Kim et al. (2012) believe that past studies have been flawed, as they did not distinguish between the types of quality management in associating it with innovation. By the same token, the view of innovation by past researchers was rather simplified as well, disregarding various types. The former two flaws may be why past research results have produced such varying results (Kim et al., 2012). Consequently, Kim et al. (2012) set out to fill in the gaps by determining the connections between various quality management processes, as well as how each may or may not relate to innovation. Kim et al. (2012) begin by defining quality management as a company’s on-going effort to improve and change. As such, the practices entailed in quality management are aimed at giving the company...

Words: 2808 - Pages: 12

Premium Essay

Inventory Management

...leader in silicon innovation, developing technologies, products, and initiatives to continually advance how people work and live. Intel designs, manufactures and sells computing and communication components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products. The company was founded in 1968 by two scientists, Robert Noyce and Gordon Moore (Intel Corp, 2013). The company went on to develop the world’s first microprocessor in 1971 (Intel Corp, 2013). Deming’s approach to quality is the foundation for today’s quality management systems (Russel, 2011). Deming’s philosophy for achieving quality improvements is found in his 14 points plan (Russel, 2011). Intel’s philosophy of quality mirrors Deming’s 14 points plan. The first point of Deming’s plan is to create a constancy of purpose towards product improvement to achieve long term organizational goals (Russel, 2011). The 14th point of Deming’s plan is to develop a commitment from top management to implement the previous 13 points. (Russel, 2011). Intel’s management demonstrates their permanent commitment to quality, core values, and long term strategic course in their quality policy. Intel Quality Policy The Intel quality policy states (Intel 2013):...

Words: 2615 - Pages: 11

Premium Essay

Comparing the Quality Management Practices in Uk Smes

...Centre for Research in Six Sigma and Process Excellence (CRISSPE), Strathclyde Institute for Operations Management, University of Strathclyde, Glasgow, UK Abstract Purpose – The last two decades have witnessed an explosion of research into the area of quality initiatives (QI) such as ISO, total quality management, lean, Kaizen and its application within small and medium-sized enterprises (SMEs). However, very few empirical studies have reported the application of Six Sigma in SMEs; the reasons may be attributed to several myths associated with Six Sigma. The purpose of this paper is to assess the current status of QI in the UK manufacturing SMEs and report the differences in the quality management practices of Six Sigma SMEs against the ISO certified firms. Design/methodology/approach – A survey-based approach was adopted to understand the established quality management practices in the UK SMEs. A short survey instrument was designed by reviewing the literature on quality improvement initiatives in SMEs. A sample of 500 manufacturing SMEs across UK was selected through stratified random sampling technique. Findings – A response rate of 12.7 per cent was achieved and included respondents at senior management and middle management level across the manufacturing industry in the UK. Data analysis on the history of quality initiatives (QI) in SMEs indicated towards the trend that ISO may be the foundation or building block before embarking on lean or Six Sigma. Differences in quality...

Words: 6237 - Pages: 25

Premium Essay

Tqm in a Organization

...14 Principles of TQM 3 Total Quality and Six Sigma 5 Six sigma DMAIC process elements 6 Application where Six sigma is better 6 Difference between Six Sigma & Total Quality Management 6 Reasons for adopting Total quality Management 7 Accurate time to adopt Total Quality Management (TQM) 8 Total Quality Management Tools 9 Principles of Total Quality Management 11 1. Customer centric approach 12 2. Employee involvement 12 3. Process approach 13 4. Integrated system 13 5. Strategic & systematic approach 13 6. Fact-based decision making 14 7. Continual improvement 14 8. Communication 14 The Concept of Continuous Improvement by Total Quality Management 14 Benefits of Total Quality Management in an Organization 16 Conclusion 17 References: 18 Introduction Total Quality Management (TQM) is a philosophy with the enthusiasm of accomplishing the overall performance of the organization. This globally recognized strategic technique has several benefits that make TQM trustworthy and applicable toward the business people. These benefits may include improving consumer satisfaction, focusing on employee motivation, reducing waste and improving overall performance of the organization. TQM is a problem solving technique that particularly focuses on continuous improvement of the quality of product, process and service. In this approach the management and employee can work together for the overall improvement by using quality and management tool aimed...

Words: 4289 - Pages: 18

Premium Essay

Management

...com/1598-2688.htm AJQ 13,3 An analysis of critical success factors for Six Sigma implementation Sunil Sharma Faculty of Management Studies, University of Delhi, Delhi, India, and 294 Anuradha R. Chetiya Department of Mathematics and Statistics, Ramjas College, University of Delhi, Delhi, India Abstract Purpose – The success of Six Sigma implementation is known to depend on a number of critical factors. The purpose of this paper is to explore and analyse Six Sigma critical success factors (CSFs) in the context of Indian manufacturing organizations. Design/methodology/approach – Although Six Sigma success factors have been amply researched in the global context, in this paper, a maiden attempt is made to identify, through an extensive literature review, the CSFs for Six Sigma implementation followed by their validation and prioritization using primary data collection from Indian companies. A total of 22 CSFs have thus been compiled through an extensive literature review. These CSFs are then validated through an empirical research of select Indian manufacturing companies at various stages of implementation of the Six Sigma process improvement methodology. Findings – A factor analysis was used to finally reduce the 22 factors to seven groups of underlying CSFs, the top factors being use of right tools, measurement assurance, innovation and supplier collaboration. Based on the factors extracted, a Six Sigma adoption model has been proposed in the Asian context. Research limitations/implications...

Words: 6737 - Pages: 27

Premium Essay

Towards a Better Understanding of Supply Chain Quality Management Practices

...tools and methods adaptation by operations and supply chain managers. • SCQM is defined as a system based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers. • Operation management is traditional been explained by some version of an ‘inputs-transformation process- outputs’ view of the productive capability of the firms. From Quality perspective, operation managers have focused on internal activities such as process control process improvement, product design improvement and design of experiment. As a result, more and more six-sigma improvement project evolved. • In addition experts like Deming have long emphasized importance of customers and supplier. • In this paper, it explored the difference between quality management practice of operation managers and each type of managers emphasizes supply chain managers, including what quality tools. Tool can here mean the method such as benchmarking, an approach to improving quality such as process improvement team (PIT) and leadership. Literature review and hypothesis development • Supply chain management has developed as a field from the integration of operations and marketing management. As a result, a linkage with upstream firms – which was once the domain of purchasing – has been elevated in importance. • The quality management precedence for this is found in Deming’s fourth point, ‘End the practice of awarding business on the basis...

Words: 962 - Pages: 4

Premium Essay

The Work of Starwood's Six Sigma Black Belts

...The work of Starwood's Six Sigma Black Belts centers on the creation of the Sheraton Service Promise program. This program was developed in response to low guest satisfaction scores dealing with problem resolution during a guest's stay. Black Belts applied the Six Sigma DMAIC model (Define, Measure, Analyze, Improve, and Control) to devise the best solution (Krajewski, Ritzman & Malhotra, 2011, pp.215): ♣ Define - three key factors are needed in problem resolution: speed, empathy, and efficiency ♣ Measure - call logs were established to track speed, empathy of associate handling the call, and efficiency of the staff charged with fixing the problem. ♣ Analyze - Pareto charts and other techniques were used for the analysis of 15-minute resolution standard. ♣ Improve - specific processes that affected performance: telephone operators' handling of requests, procedures for determining who to call, engineering workloads, and so on. ♣ Control and monitoring - 12 to 18 months tracking, with monthly feedback to the manager or department head responsible for the improvement of the Sheraton Service Promise program. Top-Down Commitment: The Six Sigma initiative is supported from the top of the organization down. At Starwood, processes and programs are driven by the work of its team of Six Sigma experts, called Black Belts. Implementation of such a program is expensive, with well-paid managers deployed throughout United States and Canada, and internal training programs for Black Belts...

Words: 1152 - Pages: 5