This session is about six sigma application. When you research the topics of quality in six sigma, you will often come across the concept of continuous improvement. What is continuous improvement? And how is it different from six sigma continuous improvement is a method for driving small incremental changes that cumulatively add up to achieve quality improvement. We also call this Kaizen. This is originally a Japanese term and concept.

Six Sigma on the other hand is a method for faster breakthrough improvement, improvements that focus on the process that we want to improve but also may cause radical changes to the entire system. Have related processes and it moves really fast. It is an accelerated model for achieving quality improvement. If you look at the timeline on the screen and compare these two roadmaps moving from point 02 point six, we can clearly see it takes 12 months for continuous improvement efforts to make a certain change and achieve level six. For six sigma, however, and its accelerated roadmap, it takes seven periods in this example, to get to this level. So some of the obvious benefits of Six Sigma, we noticed is the speed of improvement.

If we follow the Six Sigma they make roadmap. It is also about treating issues in depth and considering the impact that process changes have on the overall system of related processes. That said we need to dedicate resources and we need solid management commitment to drive six sigma project. This aspect will cover during the six sigma project session. There are many areas of an organization that may benefit from a six sigma implementation, such as customer satisfaction, strategic planning, organizational culture, profitability, and market share. Let's talk about each of these.

Let's start with customer satisfaction. It is important that you focus on the voice of the customer to drive change and improvement in the organization. To do this, you can use Six Sigma tools to analyze the data and get an understanding of what customers want. A fantastic toolkit in the Six Sigma back is called the Kano model. This is a way of gathering data from customers. beginning to understand what is important for them.

You can ask questions such as what differentiates your organization from others? What are the things that you do more of and that add more satisfaction and what things are they neutral about, or could be the satisfiers in the product or service that you provide. When it comes to strategic planning, there are many Six Sigma elements that you can use, including analytics based on the customer satisfaction factors, which can be used as key inputs to the strategic planning process. You can use Six Sigma to understand key financial drivers within your operations, or where you need to focus your improvement. Six Sigma development tools can be used to bring a product or service to market faster than normal. Additional tools can be used for determining the quality of a product, and for planning future product developments that customers might like to have.

From an organizational culture perspective, inputs from the Six Sigma process are used for chartering, developing metrics and controls and engaging quality circle teams in order to drive the organization forward. profitability is a key area to focus on, as the need to reduce costs is a continuous process. One way of reducing costs is by reducing the cost of quality. Your organization could possibly be spending as much as 20 to 75% of the cost of sales of a product simply on assuring quality of products or services. And this can certainly be decreased. High quality products and services should be Resulting in greater market share.

To maintain market share, you need to implement shorter product development cycles that are tightly aligned to customer needs, and doing that better and faster than your competitors. Engaging employees is another key benefit of using Six Sigma and improvement projects involving employees in sharing ideas about possible improvement in their work environment make their voice heard. Moreover, employees take more responsibility and ownership of raising issues and proactively solving issues to make processes run smoothly and for them to spend less time on non value adding activities. Here are the results you get from implementing six sigma. improved quality, efficiency and Cost of Goods relate to eliminating waste and defect and variation. This is a consequence that leads to financial saving.

Improve customer satisfaction is about ensuring that the products and services meet customer requirements. customer is at the heart of quality. That is why we need to make sure we consider customer feedback and work with customer requirements and needs to be able to improve the process. self sustaining infrastructure means having a well defined roles and responsibilities framework and also empowering champions, black belts and all employees to make improvement. We need to clear purpose and good communication as well as solid governance to support delivery of the improvement actions. commonality relates to using a common methodology.

In this case, this is six sigma also giving training And tools to employees, we need to have clear expectations and plans and have a culture that encourages creative solutions. Establishing and tracking metrics is very important for tracking progress, and understanding whether the changes we have made actually lead to improvement. Six Sigma initiatives lead to a number of improvements, the most common initiatives related to cost saving. by optimizing our processes, we reduce time and waste and therefore do things faster and cheaper. With revenue generating projects, we say that we grow the business, we focus on the same principles of waste reduction and speed. But such projects also lead more explicitly to increase market share and revenue.

In financial terms, we decrease the cost of goods sold. It is difficult to differentiate between these two types of initiatives as very often, a six sigma project does both cost saving, and as a result, revenue increases. Having improved operational performance, we are in a better position to offer customers a better product or a better service. And with that, customer experience improves and satisfaction increases. One difficulty with customer satisfaction is that customer satisfaction is a reactive metric, and is dependent on everything else being operationally good or not so good. We also need to define the drivers for customer satisfaction.

What do customers tell us that is important for them, not what we think is important for the customer. If we're measuring the right metrics, we can then forecast customer satisfaction. In conclusion, we can say that customer satisfaction and efficient systems equal improved profitability. Design for six sigma relates to new product development, the focus is on the design of the product or service. Aiming at design excellence, and design phase the requirements of the customer and cost aspect are considered as key component. Excellence a design phase decreases the risk of design issues surfacing later.

60 Million manufacturing relates to 60 more principles used in manufacturing environment. The focus is on ensuring production excellence and decreasing variation defects and waste in line with Lean principles. While production happens. The aim is to ensure customer satisfaction and cost reduction all through the production and delivery processes. Six Sigma in services relates to implementation of Six Sigma principles to transactional processes. The focus is on ensuring operational excellence increased customer satisfaction and cost reduction throughout the operation of the organization.

Six Sigma can be applied equally well in health, government, HR, finance, sales call centers, and many other industries. Six Sigma applies where there is process variation and waste, and every employee can and should be involved. There are some prerequisites to using six sigma. Use of teams that are assigned to project has a direct impact on the organization's bottom line. Then, at least a basic training a statistical thinking is needed and providing key people with extensive training institute stakes and project management emphasis on the make roadmap and approach to problem solving. And also there must be a management environment that supports these initiatives as a business strategy.

16 Methods were initially applied in production environments in manufacturing supply chain maintenance repair activities. Six Sigma rapidly grew into transactional applications in financial institutions, and insurance companies expanded to services such as hospitals and healthcare. The power of six sigma and its successful implementation is widely recognized. Six Sigma is a scientific and structured method for driving improvement. It does take discipline and efforts to implement but the benefits are enormous, as evidenced by some of these Very few companies. Thank you for viewing this session of introduction to six sigma.

Hope has been useful for you. We're looking forward to welcoming you to some of our next sessions. Thank you